Every year thousands of travel agencies are opened. By the end of the first year, about 70% of them are being closed, in two years only 7-10% of companies continue to work, until three years they survive one. Despite this, the sphere of tourism business continues to expand, remaining one of the most attractive for non-professional investors.
Working travel companies are divided into two categories: operators and agents.
Tour operators produce what is called a tourist product: they buy rooms in hotels, book charter flights, plan tours and sightseeing routes, organize meetings, etc.
Agencies sell products of operators, being, as a matter of fact, retail sellers. And they do not receive profit due to an arbitrarily set retail margin, but at the expense of commissions received from operators, which amount to approximately 10% of the cost of the tour. Recently, many agencies in the struggle for the client reduce the size of their commission, selling tours at lower prices. Relations between travel agencies and operator companies are built on the basis of commission contracts, agency contracts by type of assignment, as well as mixed contracts, which include elements of the contract of commission and the provision of paid services.
The specificity of purchasing current travel agencies is that the bulk of their value is formed at the expense of an intangible asset; lease rights, cost of office equipment, etc. are not more than 20% of the price. But the investor buys a company that has already decided all the organizational issues that determined its market niche, which proved its effectiveness and ability to make a profit. Let's repeat: the last indicator varies depending on a season and makes on the average 5 thousand dollars a month during a season of holidays and 1,5-3 thousand dollars in other months. It should be noted that the newly established agency, as a rule, enters such indicators only in the second year of its existence.Usually the cost of a small travel agency sold on the open market does not exceed 35-40 thousand dollars.
Investments pay off in 6-10 months. A large travel agency, bringing in $ 15-20 thousand a month, will cost 280-300 thousand dollars; the status of a network company can increase the cost of business by 1-2 thousand dollars. The offer in this area is quite large, but despite this, in the last few months the demand for operating travel agencies far exceeds the offer. As a rule, investors are private individuals who consider the purchase of such a firm as a method of profitable investment.