Travel Agency Worth
Written on October 30, 2009 – 9:37 am | by prempcc
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 a part of the larger operators or to a "boutique", then you might want to think about your strategies for the future. My central point is to determine your agency 'net value.
There are four critical areas that include an adequate and appropriate evaluation plan Agency —
– Measures / toolsManagement,
– Market position / agency image
– Financial management,
– Company History
Future articles will include financial management, market position / agency image and company history. Today's look Let'em —
Operations and Resource Management
Automation – computers and telephones
As a general rule, the more automated you are, the higher productivity per employee, thus the higher your return. In addition, more time for agentsto face-to-face or voice to voice contact with customers means a better service. Note that if you''ve been computerized for at least three full years, you are on the launch of pain and the equipment is part of your routine.
As computerization has been a travel agent five years ago, the PBX for the next five years will be. Your phone system or make you break. Chances are, if you have an old-fashioned key-key system, your productivity is too low and your lastFeedback will reflect, you know that should have at least PBX and ACD systems.
Staff
Regardless of whether a buyer is the management of your business yourself or hire a contract to stay as manager, your staff are the absolute key to success under new ownership. I've seen, agencies and then sold half of the staff looked to follow the next day with her "because they were offered a better deal by another agency. The result is usually a bonanza for lawyers and theDisintegration of the former your business. You can usually avoid such a crisis, if your turnover is low, human experience is high, and you have added a strong incentive program with a solid portfolio.
Other Resources
The travel agency business requires a tremendous amount of detailed data and consistent, logical operating systems. The question is: Did you say in the situation, an organization that cuts smoothly through all these extra materials and procedures? ForExample:
– Most recent work are changes in your agency;
– Public Service Telephone manners and the way to present your agency to the public;
– The processes for quality control before the documents go to the public;
– Update the mailing list and
– Your system to follow up on hotel commissions
And what about your place? Of course, a buyer will want to see grow his new business venture. If your space is limited, that, or if your lease will soon double the amount of costs that are renewed everyFuture projections are based in and your agency is worth less. Therefore, prior to sale with your landlord, you may want to check a possible new agreement with the new owner.
Good Management
The common thread in the above-mentioned criteria is the organization. If you have done well historically and financially, but if the key to your success is your absolute and autocratic leadership – that is, all the records of the company are 'in the head – apparently a new owner does notbe successful. Therefore, good management is not only reflected in the results, but in the ability to turn the reins over to new management structures.
Obviously, one potential buyer is far more impressed by an organized, well-planned operation in which your original business objectives, the current differences or changes in the plan and your motivation can not be proved.
In all the above criteria, I would like to emphasize the most important common element – consistency – as crucial.
Have they really present a credibleImage to the buyer? Do you have a dashboard that measures their activities and allows you to mid-course corrections in case of your "tools has" a problem?
Your answers to these questions will help determine your agency 'net worth – and its value on the market.