Are you in the Travel Business or the Business of Travel?
I am currently in Orlando at Ensemble’s Annual Conference, and their Exec. VP, Lindsay Pearlman, asked this question of the travel agents in the audience. His point was that too many agents are focused too much on the travel side of the business and not the business side of the business. I personally feel that this is less likely now than in the past. Bad economic times tend to have a greater impact on those that are not in tune with the business side of things, and the past 18 months have seen an unfortunate number of business failures in the travel industry. However, ugg boots classic argyle knit it is always a good idea to review the basics of good business planning.
If you fail to plan, you are planning to fail.
A business plan and a mission statement are the backbone of any business. These are the tools that guide how you run your business. The mission statement should guide the actions of the organization, spell out its overall goal, provide a sense of direction, and guide decision-making. Taking this one step further, your business plan is a formal statement of a set of business goals, the reasons why they are believed attainable, and the plan for reaching those goals. Included in your business plan is a marketing plan. The marketing plan dictates who your intended customers are, and how you will communicate with and sell to them. A travel agent’s marketing plan could also contain details of the types of products you intend to sell.
If you don’t know where you are going, how will you know when you get there?
Setting goals is another important aspect of your business plan. You should set measurable and realistic goals for yourself and your staff. These goals should take into account what your fixed and variable expenses are and what level of sales you need to achieve to, at the very least, meet these expenses.
No one wins a race to the bottom.
Since 9/11 and this past recession, consumers and agents alike have been conditioned to look for the best (i.e. cheapest) deal when planning a vacation. If you fall into this trap, you are doomed to fail because someone will always be willing to sell a product to your client just a little cheaper than you will. It is a race to the bottom, and no one wins that race. Instead, focus on the value that your expertise brings to the ugg boots bailey button table. Not only that, but talk to your clients about the value that they are receiving for their money. Perfect example: I am writing this article from the Regency Club at the Hyatt Regency Grand Cypress in Orlando. Most agents wouldn’t think about offering their budget conscious family customers access to the Regency Club during their vacation. However, for $50 a day, ugg boots baby consider what your client receives: a great buffet breakfast, daylong access to coffee and soft drinks, afternoon snacks, heavy hors d'oeuvres in the evening and cordials and desserts later. Not to mention the private atmosphere and 12th floor outdoor deck with Zen garden and flat screen TV. A family of four would easily get ugg boots and jimmy choo their money’s worth from this “add-on” and you just earned more commission. Win-win.
In the coming year, JAX FAX is going to be providing our readers with more “business of travel” articles to help you hone and fine tune your business to a lean, mean, money making machine.
