sweeney | Search Results | Travel Research Online

OK folks, time for some real talk here. We’re friends, right? So if I can take a few minutes and be brutally honest for a few hundred words, I hope to give you something to seriously think about. Read the rest of this entry »

OK, I am not sure of the origin of the axiom “penny wise and pound-foolish” but lets suffice to say it is British and I am too lazy to head to Wikipedia and look it up. But, the phrase is an important one that is all too apropos in the travel industry. Read the rest of this entry »

In my last column, I discussed six ways to kill a deal if you were selling your agency. But what happens when the shoe is on the other foot? What if you are the buyer? As the industry changes, we are seeing more and more acquisitions and mergers that create a larger agency with more buying power and influence in the industry. You may be very content with your single location agency right now, but there may be some very compelling reasons to consider expanding. Read the rest of this entry »

As baby boomers are hitting their mid-sixties, the rate of travel agency acquisitions is accelerating. Innovative Travel Acquisitions, Inc. has its finger on the pulse of the market and have now completed 602 successful closing transactions since our inception in 1991.

The market changes from year to year. Sometimes it is a buyer’s market, sometimes it is a seller’s market. Sometimes it is pretty neutral. Right now, we are in a strong seller’s market and for those considering a sale, it is all about the last 24 months of sales! Anything beyond that is inconsequential. Read the rest of this entry »

So, you think you might want to sell your agency. Easy, right? Call up the local newspaper and take out a classified, or maybe post on Craigslist, right? If it were only that easy. With thousands of sales and mergers under my belt, I can tell you that there is a solid market for all types of agencies with all ranges of sales. But, there are three key points you need to consider before you sell your agency. If you are looking to get the best deal possible, make sure you are ready for the process—and it is a process. Read the rest of this entry »

As I mentioned before, agencies are changing hands in 2015. It may be just the time to get out of, or into the travel industry. There is a huge potential in the industry for successful agencies.

What are the most important things you should know about when planning to sell your agency or planning to buy one?

Based on 24 years of experience in putting buyers and sellers together, I would say that the top most important things to know are… Read the rest of this entry »

It is a very busy time for agency owners seeking to retire.  The first baby boomers are turning 68 years old this year and this dovetails into increased activity between buyers and sellers.

The goal of an agency sale is to maximize the highest after tax returns for the seller.  The market has firmed up recently as the stock market continues to grow in a low interest rate environment.   If you are considering selling, the key tips for sellers are Read the rest of this entry »

The cream always rises to the top.

When I was younger, I had no idea what that phrase meant. As a young adult, I kind of understood. As a parent, I am sure I used it once or twice. And just this past week, as a business owner I saw it in action and it really drove home how important it is for me (and everyone) to make sure we are the cream and touching base with our clients on a regular basis. Read the rest of this entry »

Without a doubt, the most read, shares, and commented columns that I have written center on the down and dirty advice. You know the type–what to do when this happens. I have written for consumers and trade alike and they always draw the most attention.  To be honest, they are some of the easiest to write. After all we all work in an industry that has no shortage of tales, snafus and screw-ups.  I can usually draw on a past experience to create the topic; but then I thought–what if I drop dead? Read the rest of this entry »

With the changes we have seen in the travel industry, many may be thinking about getting out. Maybe it is time to sell? Maybe it is time to buy? As with life itself, timing is the key to acquisitions. Despite the recent economic hell, we are a very resilient industry having recovered from 9/11, SARS, Desert Storm, recessions etc…

While some of this information may seem a bit negative, there is still a very strong market for acquisitions and mergers. The overall trend for what buyers are willing to pay for break even, small, retail agencies has plummeted from 100% of gross profit in 1990 to 33% of gross profit currently. Read the rest of this entry »

Life goes on. At some point a business will change hands. It may be to a member of the family or a complete stranger. People sell when they get old. They sell when they get tired. They sell when there is an opportunity. With the changes we have seen in the travel industry, many may be thinking about getting out. Maybe it is time to sell? Maybe it is time to buy? As with life itself, timing is the key to acquisitions. As we slowly crawl out of the economic havoc, unemployment, and a recent election, the travel industry may suffer in the short term;but will survive and bounce back in the mid and long term.We are a very resilient industry having recovered from wars, 911, SARS, ship fires, and much more. A little bad economy is nothing! Read the rest of this entry »

So, just how much is my travel agency worth? This is a question our staff hears all the time. The answer is: “Your travel business is worth whatever the most motivated buyer is willing to pay at the time you wish to sell.” Granted, there are certainly some benchmark rules of thumb. Sellers must keep in mind that buyers are looking at the acquisition opportunity with eyes towards paying off the investment as quickly as possible. So, in general terms, here is how we value an agency in today’s market. Keep in mind, tomorrow’s market might be vastly different. Read the rest of this entry »

At some point, there will come an opportunity to either sell your existing agency or to buy one to grow your business. It may never come to fruition, but if you are serious, there is no reason to not have a successful transaction.There is a market out there and unfortunately, we have seen more deals fall apart simply due to sellers and buyers not keeping their heads in the transaction.  With that said, I offer ten “Dos” and ten “Don’ts” for selling your agency. Read the rest of this entry »

I have heard more complaining from retailers about the grind of having to compete with their suppliers. Some cruise lines have been poaching clients online, onboard and offline in any way possible. Nice “partners in travel”. Direct bookings to all suppliers’ websites are growing. The 9 largest airlines all made money last quarter while managing to irritate travelers more & more with all of their $50 and $75 fees at every step. It is almost enough to get you to throw in the towel Well, maybe not yet! Read the rest of this entry »

Over the past few months, there have been articles on TRO suggesting perhaps that the travel industry might not be for you. TRO’s Editor, John Frenaye mentioned it and columnist Larry Norman did as well. We broker travel businesses and one of the most common fears I hear is that no one is buying travel agencies anymore. This can’t be further from the truth. There is a different buyer out there in the market, but despite the recession, the market for acquisitions is very robust.

Gone are the days of the spouse’s of doctors, CPA’s and lawyers being the buyers of retail travel shops. Back in the 70’s and 80’s airlines were paying 10% on all tickets and there was 30,000 locations across the U.S. Today there are approximately 10,000 full service headquarters locations. Over the past few months we have received serious purchase inquiries from two Read the rest of this entry »

Over the years, I have written hundreds (maybe thousands) of articles both for consumers and the trade alike. Some of my most popular consumer articles were the down and dirty advice stories. You know, the ones that tell you what to do on the off chance (wink wink) that something might go wrong when you are traveling. I have even penned several columns for the trade with my suggestions and recommendations for handling issues that arise in the day to day existence of a travel professional.  But there was one that I missed. Read the rest of this entry »

Well, it is that time of year. The geese fly south and the bears go into hibernation. And believe it or not, so does TRO—but just for a little bit. As the year winds down, we ease up on our daily publishing, spend some time with our families, and focus on the loose ends that invariably exist in our own travel businesses.  About a month ago, we all celebrated Thanksgiving. Now we are in the midst of the December Holidays—Christmas, Hanukkah, Kwanzaa, and a few others I probably left off; but I want to take this time to offer my personal thanks to some individuals who have made working on TRO a true pleasure. Besides, my thanks can stay up for two weeks! Read the rest of this entry »

It does not matter if you have been in the business for twenty years or twenty minutes. At some point in time, changes need to be made and merging or selling might be the solution. It may not be the ideal time to sell your agency, but certainly there is still value in the business you have built.

Our firm estimates that up to 20% of travel and tour related business owners should be selling their business in the upcoming months. Just look at the statistics.  Most industry companies are reporting that their gross profit is off approximately Read the rest of this entry »

With the changes we have seen in the travel industry, many may be thinking about getting out. Maybe it is time to sell? Maybe it is time to buy? As with life itself, timing is the key to acquisitions. As we crawl out of the economic havoc from October in the stock market, growing unemployment lines and the election uncertainty, the travel distribution industry will suffer short term but survive and bounce back in the mid and long term.We are a very resilient industry having recovered Read the rest of this entry »