The group agreed on setting a Travel Agency business for the following reasons:
1. It is related to our course BS Tourism
2. We acquired knowledge in Travel Agency Management & Operations in the previous semester.
INTERNAL FACTORS AFFECTING DECISION MAKING
A. THE CURRENT MARKET
Setting up as a travel agent shouldn’t be confused with being a tour operator. The difference is that the former sells the holidays while the latter organizes them. It’s possible to set up as an independent tour operator but there is a lot of competition for big firms that have the buying power to keep prices lower.
This isn’t to say travel agents are any less competitive but most are doing good business at the moment and apparently looking forward to a boom year next year. If this proves to be the case it would appear to be as good a time to start as any.
Business travel is a significant expense for companies of all shapes and sizes. Indeed, business observers cite travel costs as one of the largest expenditure areas for many companies, along with payroll, data processing, and a few others. Given this reality, business surveys often cite cost containment as the single most important element of travel management.
Certainly, several American industries rely on business travelers for their continued existence (business travelers account for more than 50 percent of airline revenues in the U.S., for example). But while business travel is commonly associated with huge corporations, many small businesses rely on the practice as well to make sales, keep in contact with vendors, market their products or services, and keep up with industry trends (via trade shows, conventions, etc.). Indeed, intelligent choices in the realm of business travel can be a major boon to small businesses hoping to curb spending without sacrificing in other business areas.
Don’t look for profit in the first couple of years but go all out to make... [continues]
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