Helping small tour operators and niche agents with travel ecommerce
All about Timing!
Dear all,
This is just a very open discussion about the (dare I say it!) the present economic climate and people's views on starting as a new tour operator this year. I was hoping come Jan 2010 the news would be reporting a lift in the recession, in people's outlook and slowly we'd be moving towards brighter times - however I'm reluctant to say that this doesn't seem to be the case just yet - am I wrong?
Alex - I noticed on a previous link you advised someone relatively new to the industry to hold back for a few months. I've been reserching my business for nearly a year now, undertaken several site inspection trips and all the pieces are slowing coming together but I'm hesitant at the moment to actually launch. I was aiming for April / May, and my product is very much towards the luxury end of the market, but my gut instinct tells me to wait.
Plus weak exchange rates are pushing my packages to higher costs and being a new tour operator with no track record, cost is of course key, even for the luxury market.
I would like to consider myself as an experienced member of the Travel Industry having worked in corporate travel for many years and I have my own international event management business from which to springboard this new venture, but I'm aware that timing is key and holding off for the right moment and mininaliaing your risk is never a bad thing in business.
However I have some people saying 'go for it' and othere tell me to wait. Would just like to know how others feel about their own ventures and how other niche tour operators are finding 'out there'?
Thanks for your advice,
Rachel
This is just a very open discussion about the (dare I say it!) the present economic climate and people's views on starting as a new tour operator this year. I was hoping come Jan 2010 the news would be reporting a lift in the recession, in people's outlook and slowly we'd be moving towards brighter times - however I'm reluctant to say that this doesn't seem to be the case just yet - am I wrong?
Alex - I noticed on a previous link you advised someone relatively new to the industry to hold back for a few months. I've been reserching my business for nearly a year now, undertaken several site inspection trips and all the pieces are slowing coming together but I'm hesitant at the moment to actually launch. I was aiming for April / May, and my product is very much towards the luxury end of the market, but my gut instinct tells me to wait.
Plus weak exchange rates are pushing my packages to higher costs and being a new tour operator with no track record, cost is of course key, even for the luxury market.
I would like to consider myself as an experienced member of the Travel Industry having worked in corporate travel for many years and I have my own international event management business from which to springboard this new venture, but I'm aware that timing is key and holding off for the right moment and mininaliaing your risk is never a bad thing in business.
However I have some people saying 'go for it' and othere tell me to wait. Would just like to know how others feel about their own ventures and how other niche tour operators are finding 'out there'?
Thanks for your advice,
Rachel
Replies to This Discussion
-
Permalink Reply by Dee Edwards on -
Perhaps start as a homeworker first?
Otherwise, perhaps talk to an established operator and ask if you can do some sort of partnership? Someone was telling me how when they first started they did a deal with a tour operator where they basically put packages together and sold them, but used the company's bonding, cc facilities etc and they took a % in return.
-
Permalink Reply by Rachel Harvey on
-
Ah great idea and definitely one for exploring - thank you! It's getting that balance between taking a risk, but minimalising that risk also, especially at the moment!
Thanks Dee,
Rachel
-
Permalink Reply by Neil Lapping on -
It depends on what your level of investment and risk profile is.
If you are planning on spending a fortune on launch/marketing etc it's probably not the best time.
If you are doing a light-startup with relatively small start up costs, well you might as well get going because it will probably take twice as long as you expect to launch.
One are to be very careful of is exchange rate fluctuations. Industry experts predict that 2010 will be volatile. You don't want to be left exposed to currency risk if the pound devalues further (or is just volatile).
Best of luck.
Neil
-
-
Thanks for your advice Neil.
Yes, to be honest, the most costly outlay was my own initial site inspection trips (some brilliant holidays though!!:) and I am going down the social media route, keeping technology simple, and focusing my efforts on current travel trends and the 'in vogue' places to be as well as delivering great programmes. Hopefully if people like what I'm doing then good old fashioned word of mouth will help!
I REALLY hope the pounds doesn't get any weaker! - it has such a massive effect on the overall costs. Are there any predictions of improvements at all in this area?
Thanks again,
Rachel
-
Permalink Reply by Matt Zito on -
Rachel, hi, one of the biggest obstacles for aspiring entrepreneurs is the inability to pull the trigger. There is never a better time or worse time to start a business. I don't believe in this ideology. Being an entrepreneur my entire life and having started four companies I have always based my decision on the product I was selling and whether or not I thought I had a market that wanted to buy it. I am a USA travel entrepreneur so my comments and experience are based on USA travel. I do know from researching the European market and reading about European vacationers that Europeans are much different from USA travelers as the "holiday" or "vacation" is a god given right in Europe. This is not the case in the USA.
Can you start an online travel company that is linked some how to your int'l event management business. This is an asset you have. I would look here first. If there is a way to leverage or build off your current business I would try this. Always build from strength. Strength can be an asset you already have, skill set, knowledge and or experience. Its much easier to build a company and reduce the risk if you build from strength.
Regarding a new business, I suggest the following. Niche out, stay focused on one market to start and launch. Don't sit around procrastinating.
You can leave your email address at http://www.mattzito.com. I have an opt-in form there. I am finishing up the PPD Online Travel Marketing strategy report that I believe you will find valuable to your travel start up. I can also be available for one-on-one coaching to help you "Quick Start" launch your travel business.
I built and sold an online ski travel company in the USA, doing 2,000 ski trips a season, all online from my home-office.
Wishing you success in your new business.
Matt Zito
-
-
Hi Matt,
WOW - your email was JUST what I needed today. I think I'll frame it! :) And I'm completely on your wavelength with 'pulling the trigger', taking risks, learning by making mistakes, and I'm what you might call an 'aspiring entrepreneur'...on the journey but not quite there yet! And I do completely believe in the niche I am targeting (I'm part of that niche actually - can tell you more about that another time!)
And yes, in a sense I am utilising what I have already built in the event management field particularly in terms of travel partners who also work in high end corporate travel and I already have a relationship with, and they have been massively supportive..... so I guess they believe in the idea also?!
I would love to hear more of your views and about some of your previous projects also.
Thanks again Matt and you've inspired me to keep cracking on! :)
Rachel
-
Permalink Reply by Peter Syme on -
Never a right time or a wrong time you just have to get out their and get to work. As far as the economy goes I suspect 2010 will be a bit worse than 2009 as things filter through but so what, Niche focused travel businesses can still thrive and grow because we are niche and the market is huge. I started a new business in Morocco last years as well as purchasing another, the general view was I had lost my head. Same as it was when I started my core business.
I am not saying do not listen to advice, take as much as you can but the reason most people only dream about running businesses is because they never take the first step.
One word of warning, the luxury end as you know is taking a fair pounding and I suspect will continue to do so. Therefore have a niche within the niche and exploit it to the full.
Good luck
-
-
Thanks Peter - really appreciate your comments. And yeah, I agree...gotta give a full go or die wondering!
Cheers again,
Rachel
© 2010 Created by Small Fish Big Ocean.
