Established Travel Agency Under Offer For Sale

Business description

This Travel Agency has been very successfully operated by its original owner for 10 years, and because it targets a niche market, sales are holding up very well in the current “recession”. It is strategically located in a busy shopping centre in a western suburb within one of Melbourne’s fastest growing corridors. Sited next to Australia Post and K-Mart, it enjoys a high volume of passing traffic. The business is uncomplicated, providing general travel services to leisure clients. Repeat business accounts for approximately 55% of turnover. The business covers all aspects of travel for Domestic and International destinations and targets a niche market of travellers to Malta and The Philippines. It also actively sells cruise packages.

This is a fully managed travel agency and all systems are in place. While a prior knowledge of the industry would be helpful, it is not required as the operations are straightforward and the staff are highly experienced. The owner is prepared to fully train the new owner during a transition period up to 2 months.

The business is a member of Travellers Choice, with over 180 members nationwide. It thus has access to the same travel offerings available to the other major travel groups. Services are sold both on-line and in person.

This is a sophisticated travel agency, with a broad clientele who expect a certain level of service. To be a part of this business you will need to have a passion for travel, a flair for customer service and an eye for detail. Since day one, the business has enjoyed steady growth. The doorway is now open for a new owner to take over this successful agency and take it to the next level.

Much remains to be done to improve the turnover and profitability of this business, thus there is great upside potential for capital growth. Although the business has some corporate clients, this market segment has not been actively pursued. Over the years, a large database has been built up; however, this has not been utilized for marketing purposes. The website has an airfare search engine and weekly newsletters are sent to clients.

The Vendor would now like to sell the business for personal reasons, and in order to affect a quick sale, a very realistic asking price has been set.

Included in the sale of this remarkable business are:

? All existing Plant & Equipment
? An updated computer system
? All stock
? All Fittings & Fixtures
? The goodwill of the business, built up over 10 years
? An extensive client database
? A fantastic location
? Well trained, qualified and experienced staff
? Any required training

Operations

Current hours of operation are:

9am – 5:30pm Monday – Wednesday
9am – 6pm Thursday - Friday
9am – 2pm Saturday

The business is closed on Sundays and Public Holidays
The central reservation software used by the agency is Sabre.

Market / Customer
Over the last 10 years the business has built a solid base of repeat customers. The business provides specialized services to its customers who come from varied cultural backgrounds. The business strives to provide a high level of personalised service.
Being located in one of Melbourne’s fastest growing corridors, further organic growth opportunity exists to exploit the extensive untapped database of existing clients.

Products/Services

Services offered include:

? All standard general Travel Agency services
? Sabre computerised reservations and booking system
? AXION software support system
? 24 hour website and on-line bookings
? Competitive prices
? Online quotes on airlines, hotels, car rentals and travel insurance
? Ticket delivery
? Visa and Passport information
? Acceptance of credit cards

Premises:

This Travel Agency is strategically located in a busy shopping centre in a western suburb within one of Melbourne’s fastest growing corridors. Sited next to Australia Post and K-Mart, it enjoys a high volume of passing traffic.

The premises comprises two offices with a total floor area of approximately 46 square metres.

The current annual rent is approximately $36,000 including all outgoings and GST. One lease extension of three years is available from October 2008.

Plant & Equipment:

Existing Plant & Equipment, include four networked computers in the front office plus another computer in the back office.

A comprehensive Plant & Equipment list will be provided during due diligence.

Management / Staff:

This is a fully managed travel agency. The owner is involved with other business ventures and his principal involvement is to make certain critical decisions and solve problems.

There is an office system in place and all consultants know their job description, purpose and sales targets. Profits are accurately calculated and reported electronically by AXIOM. Back office system is MYOB. An annual audit is conducted according to TCF (Travel Compensation Fund) requirements.

In addition to the owner, existing highly qualified staff include:

? 4 x Full-time Travel Agents
? 1 x Part-time Travel Agent
? 1 x Part-time Bookkeeper

It is anticipated that the all well-trained travel consultants would choose to remain with the business following its sale, subject to satisfactory conditions.

While a prior knowledge of the industry would be helpful, it is not required, as the operations are straightforward. The owner is prepared to fully train the new owner during a transition period

Agency Owner Travel Advantages

There are numerous travel and other advantages offered to travel agency owners and staff such as:

? As an IATA (International Air Transport Association) accredited travel agent, this agency and its staff enjoy considerable discounts on international and domestic airlines. The discount is normally AD75 for travel agents and AD50 for spouses. The cost therefore is only 25% or 50% of the applicable airfare.

? The cruise companies offer similar discounts or even greater on a whole range of ships, worldwide.

? This agency and its staff are able to access the travel industry travel agent who offers vastly discounted travel products – world-wide.

? Travel “educationals” offered from travel wholesalers, cruise companies etc are frequently undertaken. These trips are to educate travel agents and staff, but are generally viewed as travel bonuses.

? Industry training is also provided mostly on a no-cost basis.

? Brochures are provided by the various operators free of charge.

? Industry “education or brochure launch” nights are held frequently enabling management and staff the opportunity to receive the most up to date information from travel operators – followed by some appreciated hospitality.

Other information

Trading hours:

9am – 5:30pm Monday – Wednesday
9am – 6pm Thursday - Friday
9am – 2pm Saturday

The business is closed on Sundays and Public Holidays