Mauritius Villas and Bungalows: Business Plan

Introduction

Mauritius Villas and Bungalows Rental is a turnkey company that caters to travelers needing home-like accommodations while on vacation in Mauritius. The rentals will provide its services to all prospective customers, particularly those who reside in the Mauritius Island region. The problem or gap is a considerable demand to offer top-notch rentals with an emphasis on individualized service and a hassle-free rental experience due to the increase in visitors visiting the city.

The rental of villas and bungalows around the island of Mauritius through Mauritius Villas and Bungalows is a solution to the demand. The target market is comprised of middle-class and upper-class tourists and travelers in need of home-like accommodations. The primary competitors are local hotels, motels, and landlords renting their properties. Management expertise is vitally needed with respect to external management concerns, especially legal aspects of operations and human resource management. The sales forecasts indicate growth due to the revitalization of tourism after the lockdowns. For the financial highlights and finance needed, $5 million will be needed, sources being private investors and banks.

Business Model

The rental service seeks to provide access to the villas and bungalows around the island of Mauritius (S), with the minimum length of stay being two nights (M) and deposit (A) for medium-income tourists (R) all year round (T). The best way to appreciate Mauritius’ beauty, activities, and cultures are by renting a villa or bungalow and immersing oneself in the island. Transport and lodging are both offered by Mauritius Villas & Bungalows Rental. Customers may live, cook, and sleep in villas and homes since they are furnished with beds and kitchen appliances (Henriques, Matos, and Jerónimo, 2022). Our company offers holiday rentals for villas and bungalows that may also be used as homes and mobile offices. Local artisans have painted and created the interiors of the Mauritius Villas and Bungalows Rentals.

The company’s mission is to promote tourism in Mauritius by relying on the beauty of local culture, landscape, and people. Unlike hotels mostly occupied by foreigners in densely populated tourist destinations, the rental of villas and bungalows provides a richer and more immersive traveling experience (Martin, Heiska, and Björklund, 2021). The rise in tourism, upfront and deposit-based payment, engagement of local businesses and communities, and enhancement of the local real estate market growth constitutes the creation of mutual interest with many parties enabling a sustainable business model.

Vision

Our goal is to establish the largest network of branches in Mauritius and to be recognized as the industry leader in the rental of all types of villas and bungalows. The future that Mauritius Villas and Bungalows envisions is one that is positive for everyone. We believe in building our communities and recognizing hard work with opportunity, whether it is going above and beyond for our customers or looking out for our staff.

Mission

Mauritius Villa and Bungalows Rentals aims mission is to provide top-notch rental services at reasonable prices. We are committed to building long-term connections and providing enduring solutions via our platforms for finding tenants and managing properties by providing exceptional customer service, improving lives and environments, adding value, and changing the world.

Management Team’s Entrepreneurial Experience

There is a number of important requirements for each top management team member. He or she must have an MBA degree and seven years of experience in a managerial position in the real estate, tourism, or hospitality sector. In addition, he or she must demonstrate achievements with respect to successfully closed deals, sales growth, or efficiency improvements. They are responsible for producing and delivering the agreed-upon marketing materials on schedule. Sales and marketing will be required to provide quarterly reports on the state of the company’s finances. The responsibility for gathering, creating, and assessing reports, budgets, accounts, comments, and financial statements will fall to the accounting team (Chen et al., 2019). Customers will engage with customer service to provide and process information in response to questions, complaints, and requests about products and services.

As an entrepreneur, I will have to demonstrate skillfulness and competency in communication, mediation, leadership, and strategic business partnership building. Legally, I will be the sole owner of The Mauritius Villas and Bungalows Rentals LLC. It means I will own the mobile application and website, as well as any purchased real estate under the company’s management, but the vast majority of them will be rather rented.

A legal expert on staff is essential since they address the organization’s legal concerns. He will help our firm with problems connected to compliance with tax laws, labor laws, and other regulations affecting business operations. Marketing consultants will collaborate with our business to our target market to effectively promote our services to our target market (Bellini et al., 2020). They would be of great assistance in keeping our company abreast of the most recent developments. A knowledgeable third party in logistics will handle warehouse management, packaging, and delivery. The human resources department oversees payroll, new hires, onboarding, and employee training for the staff. The task of cleaning the company’s workstations, windows, ceilings, floors, restrooms, and other places will fall to Professional Cleaning Services.

Market and Competitive Industry Analysis and PESTLE

The highlighted target markets are medium-income tourists and foreigners planning to stay in Mauritius for the short term or long term. There are four segments to whom the Mauritius Villas and Bungalows Rental can appeal. The first segment includes millennials who are curious about trying new or unusual activities, including traveling. The second group is comprised of event hosts and guests who wish to book hassle-free lodging. The third segment is travelers seeking unique camping or travel experience. The last group is families looking for a distinctive outdoor vacation. The target segment involves medium-income families and travelers in search of special travel experiences.

The positioning is done through medium-range properties, such as villas and bungalows, to satisfy the needs of medium-income customers. The competitors are medium- and high-end hotels, such as Hilton, Rixos, and Ritz-Carlton. All of them provide a luxurious experience, but they tend to create separate ecosystems depraved of local culture’s richness and immersion. In addition, there are rental service providers, such as Airbnb, but it is poorly established in the island. This is the point where the Mauritius Villas and Bungalows Rental will outcompete them since the company’s properties are more isolated and dispersed across the island.

Political

One of the safest nations with a steady economy is Mauritius. Since tourism is Mauritius’ main business, the government constantly takes care to promote its growth. Safety, security, and lawfulness are guaranteed. This benefit encourages the growth and extension of rental services by considerably assisting the tourist sector.

Environment

Mauritius is a tropical area subject to the four distinct seasons characteristic of the tropics. In addition to its stunning beaches and coastline, Mauritius boasts mountains, caverns, rivers, and woods (Khalilzadeh and Wang, 2018). Due to its natural resource wealth, Mauritius has recently seen a rise in both domestic and international tourism, particularly in the hotel industry.

Social

With its long history and several notable victories, Mauritius has a lot of promise as a tourist destination and encourages visitors to learn more about its past. The country of Mauritius is renowned for its cultural richness and for hosting several festivals (Baek and Oh, 2021). This is a benefit that Mauritius Villas and Bungalows have over other hotel chains since it distinguishes Mauritius Villas and Bungalows from them and gives them a place in the market.

Technology

Technology has advanced rapidly, and the Internet, in particular, has made it easier and faster for the hotel industry to market and approach its brands. Particularly, Mauritius is regarded as one of the nations with the world’s quickest rates of Internet development. The hotel industry, in general, and Mauritius Villas and Bungalows, in particular, have a lot of opportunities thanks to technology.

Legal

The Mauritius government enacted tourism legislation to control enterprise tourism industry operations and provide certain regulations that benefit visitors. The perfect setting for a rental company.

Economics

The economy of Mauritius has been steadily growing and has consistently been predicted to expand at a healthy pace (Bassano et al., 2019). The Mauritius inflation rate tends to decrease and maintain a steady level.

Marketing Strategy

The overall marketing plan is focused on conducting a large-scale online marketing campaign through social media, specifically utilizing travel influencers and travel-related communities. The positioning will be done through medium-range properties, such as villas and bungalows, to satisfy the needs of medium-income customers (Clube and Tennant, 2020). The emphasis on local culture’s richness and immersion will be the key factor for differentiation, while the luxuriousness and relative affordability will continue to be on par with medium-range hotels (Antoniadis, Spinthiropoulos, and Kontsas, 2020). The sales entry will be based on the capacity to keep up with changing tourist patterns, and marketers must be able to cope with these trends.

Product

The sales strategy and the role of the product within it were created after an in-depth company analysis since they are tightly interconnected. This covers pricing and the services to provide. The company’s target market will be millennials, event hosts and attendees, people, travelers, and families that like camping and other outdoor activities but prefer a home away from home over a tent. For the sales entry, the Mauritius Villas and Bungalows Rentals organization falls into the medium level in terms of service and cost. The population that can afford the company’s services is middle class—particularly those who maintain a stable career and a good standard of life. The business’s endeavors are high-quality, original, new, and unique (Rosário and Raimundo, 2021). The firm intends to spend on marketing and advertising choices, business and personal liability insurance, a website for the company, and other initiatives to promote the brand.

Price

Customers’ rental fees are how a rental company will generate revenue. The costs will change based on how long the bungalows are leased. Propane, sanitation, or cleaning costs are not included in the rental. All costs are included except the damage deposit, which is fully refundable. All costs are included in the rental charge to keep the procedure simple. Customers will contact or go online when they need service. All clients will get assistance from customer service with bookings and choosing the cottage that best meets their requirements.

Promotion

Social Media

In order to accomplish marketing communication and branding objectives, the organization will create a presence on social media sites like Facebook, Twitter, and Instagram. The firm would utilize social media to further its marketing objectives. It mainly comprises media related to the company and its customers, including videos, clips, pictures, and content.

Company Website

The firm’s website will be the most comprehensive promotional tactic. All the properties offered for rent, along with their prices, will be visible to customers. The most acceptable choice for each customer is available for selection. Customers may see the dates that are open for reservations. They may then give a call or book online.

Advertising

Mauritius Villas and Bungalows will use online marketing to promote their brand. Due to the cheap cost of reaching an audience, having a website may be a cost-effective strategy to draw in new clients (Zheng et al., 2018). The firm believes internet advertising would greatly benefit since many buyers investigate companies online before picking whom to purchase from.

Place

The placement of service is rather simple due to the nature of the business model, which relies on contracts and agreements based on renting local bungalows and villas. Mauritius is a primary location of interest, and any medium-range real estate property and its owner is a potential partner. The team of cleaners and homemakers, as well as company inspectors, will be handling the houses as per agreement.

Business Sales and Operations Strategy

General Approach, Sales Plan, and Location

Mauritius Villas and Bungalows Rentals’ main office will be situated at the heart of the Island of Mauritius. The Island of Mauritius has a high population which has the target population of the rental business. There will be two offices in the city to serve the large population. The company will later open branches all over the country and later internationally as the company grows. The general approach will be based on a customer-driven strategy, where the needs of the renters will supersede other concerns. This will be reflected in the sales plan as well, where the price, affordability, expectations, and demands of the customers will dictate the property provided.

Facilities and Equipment

There would be one manager-only room in our workplace. The personnel is then working with their tables outside of it. The whole workplace will have air conditioning, making it comfortable for clients and staff. Additionally, we will have surveillance cameras that can be controlled from the owners’ cell phones. Additionally, we will have technicians who will maintain the rentals. We also provide wi-fi so that consumers can quickly get in touch with us if they have questions (Sobba et al., 2022). In addition, a water tank, a shower, space heating, and air conditioning are included.

Employees Required

The key milestone for the company is to have a permanent staff of full-year service workers, such as cleaners, homemakers, inspectors, and lawyers. The workforce will consist of owners and seasonal workers (Eichenwald et al., 2021). In order to optimize earnings, the staff will be maintained to a minimum for the first three years; as a result, part-time workers will be employed at the busiest times of the year or whenever the other employees need a break.

Business Financial Strategy and Risks

Financial Strategy

The projected income statement, balance sheet, and cash flow based on sales forecasts for the first year of the Mauritius Villas and Bungalows are shown in Tables 1, 2, and 3 of the Appendix below. The monthly income statement for year one and the income statements for years one, three, and five may be found on the following pages. The Owners want to apply for a $3,000,000 loan to launch their company. The bank will also establish a $2,000,000 line of credit to cover immediate financial demands. Beginning in January and ending in April, Mauritius Villas and Bungalows will be available for rent. All expenditures will be paid for throughout the first year of business with a starting cash balance of $700,000 after startup charges and a $2,000,000 line of credit, as stated below. The sources of funds are private investors and business loans from banks, and a more detailed overview of projected estimates can be accessed in Table 4 of the Appendix below.

Business Risks

Constantly Changing Consumer Demands

Customer expectations have changed significantly as a result of technology, and the threshold for the kind of interaction and engagement that consumers now consider standard has been lifted (Ayouba et al., 2019). This presents a unique problem for the rental industry, where goodwill and client happiness are crucial.

Real Estate Risk

Fire loss is the most obvious and frequent danger in the rental sector. A rental location is full of property issues, from grease accumulation in the kitchen to electrical hazards throughout the company (Feng et al., 2020). Numerous rental properties adhere strictly to all construction and health code requirements.

Conclusion

This business plan forecasts that Mauritius Villas and Bungalows will generate a profit for us. Since our business is still in its early stages and marketing and promotion are still in their early stages, the projections made for the next three months are modest. To achieve the goal, the organization uses rigorous planning. Because of this, Mauritius Villas and Bungalows has every reason to be optimistic about its ability to expand going forward and establish itself as the most recognizable brand on the planet. The images used in the presentation can be accessed in Table 5 with their links.

Reference List

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Appendix

Table 1. Pro Forma Income Statement (Created by the author).

Table 2. Pro Forma Balance Sheet (Created by the author).

Table 3. Cash Flow (Created by the author).

Table 5. Presentation Images (Created by the author).