Archive for the ‘travel agency’ Category
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Most people who go on vacation like to book trips through a travel agent in order to take some of the stress out of the planning process. Travel agents can also help you save money on flight, hotel rooms, cruises, and more; but what about online travel agencies? While people worry that Internet travel agencies could scam you or provide low-quality service, there are actually a number of benefits to choosing an online travel agency, providing that you pick the right one.
First and foremost, with an online travel agency, you can work with the place that has the lowest prices without geography limits. In other words, you have more options! When you opt to choose a travel agency in an offline setting, you are limited to the handful of companies that operate in your neighborhood, or at least within a reasonable distance. People who live in major cities might especially be affected by the high prices of brick and mortar travel agencies. Online, there are not proximity limits. The travel agency with which you work might actually have headquarters thousands of miles away, but if they have the lowest prices, you can still work with them over the Internet.
The increased number of choices does not just help you save money. It also means that you have limitless possibilities when it comes to travel. The travel agencies in your areas probably can book dozens or even hundreds of different trips, but there will be limitations. Even if an offline travel agent can plan a vacation to an obscure destination for you, it is not likely that he or she will be an expert in travel to this location. Online, you can find a family or an individual who has been there and will plan an amazing vacation for you. There are few places in the world where you can’t travel if you work with an online travel agency.
Another great aspect of working with an online travel agency is that you can shop for your vacation package any time of the day or night. Brick and mortar business usually close soon after the end of the regular business day, and many are not open for long hours on the weekend. The Internet is open 24 hours a day. While you may not always be able to call a customer service representative, especially if you like to do vacation planning at three in the morning, you can always check out packages offer on travel websites. This is especially handy for parents who need to plan after the kids are in bed, people who work odd hours, and those living in rural locations where the nearest travel agency office is a fairly far drive.
One of the often-overlooked benefits of an online travel agency is the control you have to make your own choices without outside influences or pressure. When you visit an office, many travel agents have the same tone as used car salesmen. You have to remember that these people are often working under some kind of commission program. Instead of making an hourly wage, they earn a percentage of your total vacation price, and even if they do have a salaried job, they may get incentives from travel companies (hotels, cruise lines, etc) for selling amount every month. Many travel agents get to go on free trips for every ten or twenty vacation packages they sell. So, you might feel pressured to book a trip when you are not done exploring your options or upgrade certain aspects, even though you do not have the money. Online travel agencies typically take a more hands-off approach. That does not mean that they won’t help you, of course. Most are more than willing to answer questions via email or over the phone. However, when it comes to working with an online travel agency, you do not have someone looming over your shoulder, trying to make a sale as you check out your vacation options.
Also, when you work with an online travel agency, you usually have more payment choices. Today, some offline travel agencies offer payment plans, credit card payments, and so forth, but this is not always the case. When you work online to plan you vacation, however, you can always find a type payment that will work for you. Some even have payment programs that allow you to earn points for every dollar you spend, which can go towards gift certificates or future trips.
Be aware that there are still scammers posing as online travel agencies and other travel sites, and you always need to read the fine print of any website where you make a purchase. However, online travel agencies are often a less expensive, easier, and more convenient way to book a vacation.
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.