THE FUNDAMENTALS OF OWNING A TRAVEL AGENCY
The growing complexity of the travel industry has changed many of the business requirements and commercial skills necessary for a travel and tourism business to operate efficiently. Today, there is a greater need for a wide cross-section of management, marketing, financial and technological skills that were perhaps less important ten or fifteen ago.

In running a travel and tourism business as to any other business, other new requirements have emerged. It is critical to have a good mix and balance of the skills and requirements of the past and the future, as follows:

1. A Vision: Do you want to build a really good travel consultancy? Or an ordinary one? Assuming that you want to build a really good travel consultancy, you will need to be perfectly clear about where you are today and where you want to be in ten years. This is where you will have to decide how best to develop and use your skills, background and experience into creating an outstanding company.

2. Enough Money: Having a vision is a good start, but suppliers will still ask you to “show me the money”. Hence, perhaps the most important business requirement is to have sufficient cash to support the volume of turnover. For example, in many countries, airlines have to be paid fortnightly or even weekly, under the Billing Settlement Plan (BSP).

3. Financial Management: In addition to having enough money, it is important to know how to manage it. Currencies are fluctuating globally-the travel industry is one of the first to feel the results of global financial instability. Income has to be monitored. Of course, the need to keep costs down and know the basic principles of accounting is very important.

4. Well-Trained Staff: The second most important business requirement is to have well-trained staff. Staff needs to be well trained in all elements of the travel process, from product knowledge to legal obligations. They should be able to sell travel products in a fun way, but with full awareness of the business side.

5. Staff Compensation: If you are a travel business owner, you don’t want your trained staff to leave and join the competition.

6. A good understanding of information Technology Trends and Issues: The travel and tourism industry would cease to exist without the technology that drives it. The market place is flooded with various offer by vendors and suppliers of hardware and software, all claiming to provide solutions for everyone.

7. A smooth Internal Organization: Disorganized administrative structures, reporting systems and chains of command can distrupt the functioning of even a small agency. Everyone must know what who is doing what. Good teamwork minimizes internal politics and maximizes morale.

8. Good Negotiating Skills: Another critical requirement is to enhance the Unique Selling Proposition of your travel business. You have to be able to secure the best products at the best prices.

9. Market Information and Intelligence: Although this is not strictly a business requirement, you must keep-up-to-date on products, sales channels, pricing, company ownership, senior management position and many other issues affecting your business environment, investors and suppliers.

10. A balanced Product Mix: Again, not technically a “business requirement” but good advice to keep in mind: Never put all your eggs in one basket. Even if you specialize, make sure that your product range is diversified enough to support your business in case anything happens to affect anyone sector of your markets.

11. Creativity: Last but not the least, creativity is fundamental to keeping you ahead of the game. This ranges from creativity in coming up with business solutions to knowing when to apply that little extra touch that wins you a new account. It involves being creative in the packaging of your products as well as creative in the way you design and decorate your travel office or website. This is your edge, and yours only.

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Nice thread...