Highly Successfull & Well Known Travel Agency For Sale

Business description

This business is a long standing, well known travel agency has been operating in the same location since 1984. This is a fully accredited, up-market general retail travel agency, dealing with corporate and leisure clients, with a high repeat clientele.

Strategically located on the corner of a major arterial road and a high volume shopping strip, this well-signed travel agency enjoys outstanding exposure to passing traffic. The spacious premises would allow for substantial expansion of the existing business; alternately, margins could be increased further by sub-letting the rear office.

This travel agency has a solid client base established over 20 years. Many clients are now in the mature age bracket with substantial disposable income and the desire to travel. A special range of tours has been developed for this market segment in association with local and overseas-based tour operators.

The Agency is a member of the Australian Travel Agent Co-Operative (not franchised), which is a dedicated buying group. This allows the business to negotiate additional commission from airlines and wholesalers, without losing its identity or independence. The agency is fully accredited with most major airlines.

Included in the sale are:

* All existing Plant & Equipment
* All Fittings & Fixtures
* Well trained, qualified and experienced staff
* An extensive client database of approximately 2,000
* All intellectual property including an operational staff training manual, the Internet domain name and a distinctive logo.
* Any required training
* The goodwill of the business, built up over 25 years

Growth opportunities for this business are excellent as no regular, structured marketing has ever been carried out.

Operations:

Current hours of operation are:

9am – 5:30pm Weekdays
9am – 1pm Saturday

The business is closed on Sundays
The central reservation software used by the agency is Amadeus.

Market / Customer:

Over the last 24 years the business has provided travel services to a vast number of travelers. A large majority of these customers have remained loyal to the business over the years and have now moved into an older age bracket. The business has evolved with its customers, also filling a void in the marketplace to provide specialised tours for the older traveler. The business strives to provide an unparalleled level of service that distinguishes it from other agencies.

The agency has gained recognition by a number of Industry awards over the years from wholesalers and travel industry partners.
An outstanding marketing opportunity exists to exploit the extensive untapped database of existing clients.

Products/Services:

Services offered include:

* Amadeus computerised reservations and booking system
* 24 hour website and on-line bookings
* Experienced senior staff
* Competitive prices
* Online quotes on airlines, hotels, car rentals and travel insurance
* Information on airline frequent flyer schemes
* Corporate incentive programs
* Corporate travel policy planning and implementation
* Corporate staff travel benefits
* Strict client confidentiality policy
* Ticket delivery
* Visa and Passport information
* Acceptance of credit cards

Premises:

Strategically located on the corner of a major arterial road and a high volume shopping strip in an outer Eastern suburb of Melbourne, this well-signed travel agency enjoys outstanding exposure to passing traffic. The spacious premises would allow for substantial expansion of the existing business; alternately, margins could be increased further by sub-letting the rear office.

The premises comprises two offices with a total of approximately 1,160 square feet.

The current monthly rent is $2,830 + GST. Two lease extensions of three years each are available from November 2008.


Plant & Equipment:

The low maintenance fittings and Modern/neutral furnishings include the usual filing cabinets, shelving and kitchen facilities. There is a secured safe in the rear of the premises in line with IATA regulations. (International Air Transportation Association)

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

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

Management / Staff:

The current owners have now decided to sell the business for personal reasons.

In addition to the two FT owners, existing staff include:

* 2 PT Travel Agents

An operational training manual designed for the office is available for new staff members.

The two part-time travel consultants are well trained and it is anticipated that they would choose to retain their relationship with the business following its sale, subject to satisfactory conditions.

The Vendors will provide required training and assistance during a suitable 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.

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To receive additional information on this business, please call Sigi Kotz on 0412 332 300 or email him at Sigi@accordbrokers.com.au

Property information

Lease terms:

2 x 3 years