In todays slow economy will a travel agency be profitable?

Discussion in 'Growing and Managing a Business' started by Andreas Vanaerde, Jul 5, 2012.

  1. Andreas Vanaerde

    Andreas Vanaerde
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    I am thinking of becoming a member of a Travel Agency : work from home type sales business,
    however i am wondering with todays slow economy much unemplyment . Are people still
    traveling a lot , or should i maybe focus on the Cruise Ship travel , it seems to me that Cruises Ships are
    pretty busy , since i live close to one of the biggest Ports of the Cruise Ship industry .
     
  2. Fergal

    Fergal
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    First of all Andreas, welcome to Business Advice Forum. People are spending less on travel, but that doesn't mean that there aren't still opportunities in the industry. The fact that people have less money, means that they are looking for ways to reduce the money they do spend on travel and holidays. The fact that you are operating your business from home will help you to reduce costs, which in turn may allow you to offer lower priced services to your clients.

    What country would your business be based in?
     
  3. Andreas Vanaerde

    Andreas Vanaerde
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    travel biz

    usa mainly port of miami , cruise ship industry
     
  4. Business Attorney

    Business Attorney
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    I suggest that you do some research on the industry first. When I was first out of law school, there was no internet and almost everyone used a travel agent. Now, with sites like Orbitz, Expedia, Priceline, Hotels.com and hundreds of others, including many devoted exclusively to the cruise industry, I think it is probably tough to make a living as a travel agent. Perhaps you can do it if you have a very high-end client base, but there is probably a lot of competition for very few prime clients.

    In addition, the airlines started cutting commission over 10 years ago. Some, like Southwest Airlines, don't pay a commission at all. So even when you do get a client to book a vacation through you, it is tough to make much money.

    I generally make several trips a year and I honestly can't remember the last time I used a travel agent. It was probably about 20 years ago.

    I'm sure that there are still niches to be filled, but do your research. If you have to pay to become a member of the travel agency you are joining, I would not pay much attention to their information on the industry since they may make money from you even if you never make a dime. Get objective third party information.
     
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  5. ChrisDouthit

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    I dont think a travel agency will be very profitable, I would not use one. Whenver I travel I just book my own traveling plans on the Internet. Why would I want to let someone else do it for me when I can do it all myself.
     
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  6. tHai9

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    I dont think so, there are so many right now and all are basically the same. The prices and airfares dont differ much. When i find a travel agency i go to the most well known one, not local. You gotta really stand out or offer something others don't
     
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  7. ServerGurus.com

    ServerGurus.com
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    I think any business can be profitable, as long as it offers a unique and attractive service, and is marketed well.
     
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  8. Andreas Vanaerde

    Andreas Vanaerde
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    but there are many people here in the US , especially elderfolks , who prefer booking with an agent
     
  9. daytrader

    daytrader
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    I must agree due to crisis tourist are getting lesser. Traveling is a leisure and for some its a luxury. People will go places not just because of business but wanted to enjoy destinations. For people who are searching for the girl of their dreams, they travel. for people who wants to take good pictures, they travel. For someone like me who have travel blogs, we travel and try new things so there's still an opportunity.
     
  10. sigma

    sigma
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    It really depends on the country, travelling is still good business in some country
     
  11. Mark T

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    And so the best thing you can do is to research. I can say that the niche you are interested into is a good industry to come up with - but that does not mean it's good for you.
    Have you had other options that you can think of other than the travel industry?
     

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