Travel Agency Worth

I agree with the experts that a shakeout is taking place due to the current economic downturn. If you have not positioned your agency at this time either to be a part of the larger travel organizations or to become a "boutique," then you might want to start thinking about your strategies for the future. Your key starting point is determining your agency's net worth.

There are four critical areas that comprise an adequate and accurate agency valuation plan -

- operations/resource management,
- market position/agency image,
- financial management, and
- business history

Future articles will include financial management, market position/agency image, and business history. Today let's consider -

Operations and Resource Management

Automation - Computers and Telephones

As a general rule, the more automated you are, the higher your productivity per employee and consequently the higher your profitability. Additionally, more time for agents to have face-to-face or voice-to-voice contact with customers means better service. Bear in mind that if you've been computerized for at least three full years, you are over the start up pains and the equipment is part of your routine.

What computerization was to a travel agency five years ago, telephone systems will be for the next five years. Your phone system will make or break you. Chances are if you have an old-fashioned key button system, your productivity is low and your ultimate valuation will reflect that. You should at least have PBX and ACD systems.

Personnel

Regardless of whether a buyer will be managing your business himself or hiring you to stay on as a contract manager, your personnel are the absolute key to success under new ownership. I have seen agencies sold and then watched half the staff leave the next day with their "following" because they were offered a better deal by another agency. The result is usually a bonanza for lawyers and the disintegration of your former business. You can generally avoid such a crisis if your turnover is low, staff experience levels are high, and you have a strong incentive program supplemented by a solid portfolio.

Other Resources

The travel agency business requires an incredible amount of detailed data and consistent, logical operating systems. The question is: Have you been able to maintain an organization that cuts smoothly through all these ancillary materials and procedures? For example:

- the latest work flow changes in your agency;
- staff telephone manners and the way you present your agency to the public;
- your quality control processes before documents go out to the public;
- updating the mailing list; and
- your system to follow up on hotel commissions

And what about your space? Naturally, a buyer will want to see his new business grow. If your space restricts that, or if your lease is about to be renewed at double the cost, any future projections will be impacted and your agency is worth less. Therefore, prior to sale you might want to check with your landlord as to a potential new arrangement with the new owner.

Good management

The common thread in the criteria above is organization. If historically and financially you have done well, but if the key to your success has been your absolute and autocratic management - i.e., all of the company's records are in your head - obviously, a new owner will not succeed. Therefore, good management not only shows in the results but in the ability to turn the reins over to new management.

Obviously a potential buyer is far more impressed by an organized, well-planned operation in which you can show your original business objectives, the current variances or changes in plan and your rationale behind it.
In all of the criteria above let me stress the most important common element - consistency - as crucial.

Do you really present a credible picture to the buyer? Do you have a dashboard that measures your activities and allows you to make mid-course corrections in the event one of your "instruments" indicates a problem?

Your answers to these questions will help determine your agency's net worth - and its value in the marketplace.

Travel business consultants such as Travel Business CPR will review and prepare your operation for sale on your behalf. Tharwat Abouraya, CTIE President Travel Business CPR - Bring Strategy to Life! http://www.travelbusinesscpr.com Article Source: http://EzineArticles.com/?expert=Tharwat_Abouraya

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All About Travel Agencies

Congratulations if you have recently started a travel agency. But wait, your work has just begun. You require unleashing important tactics, to enable sustained and relentless business growth. Following are few easiest, fastest and quickest strategies to increase the sales of your newly started travel agency. Follow every enquiry with five steps of professional communication. One of the biggest mistakes that most of the new travel businesses commit is not constantly following every enquiry. The best way to begin with this is to have a sales team where every consultant without fear professionally communicates with the enquirer. Following are few simple steps of communication:

• A courtesy call to find what the inquirer feels about the information supplied to him
• E-mail extra information or tip rapidly about the prospect's trip.
• Further send them a letter thanking them for enquiring.
• Follow up call to find out their future plans and offer them further assistance. By this time, you successfully establish rapport with them; it is a right time to ask them about the booking details and a final commitment.

All these steps are interchangeable and the key is that they happen over the different mediums like phone calls, direct mail and e-mail.

Types of Travel Agencies

One of the main functions of these agencies is to act as an agent. This includes reservations, selling travel products and tickets and so on, on behalf of one or many suppliers. Usually, travel agents charge a small commission from the overall cost. Check out some different type of agencies:

• Commercial and Business Travel Agencies

Most of these agencies have a department of business and leisure travel. The need and requirements of one traveler and the other tends to vary in few ways, and therefore, dividing the duties in different departments helps either department to specialize, finding deals for the leisure travelers on one hand and better deals for business travelers on the other hand. However, there are few agencies specializing in business and commercial travel only. Incidentally, there are not a lot of agencies restricting themselves exclusively to leisure travel.

• Cargo Travel Agencies

There are few travel agencies specializing in shipping cargo. Certainly, and that is not completely relevant if you are planning to fly for personal or business reasons. Still, this shows in how many different areas an agency can specialize.

• Niche and Multi- Destination Agencies

If you want to divide it in just two types of agencies, you have niche and multi - destination agencies. Multi-Destination are out- bound travel agencies that are large offering flights to any place in the world. Niche agencies are independent focusing on a specific part of the world. Most of the niche agencies cater to the individuals who have families in that country or who go for business regularly. Consider individual preferences, trip objectives and needs while selecting a travel agent. Different types of agencies offer different type and level of services. If you are a regular traveler then you may want to use the services of large corporate travel agency having branches all over the world.

For any help on travel agency, check out the info available online; these will help you learn to find the corporate travel agency!

Article Source: http://EzineArticles.com/?expert=Michel_Disusa

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