Nearly 70 travel agencies are 'ripe for the picking'. But who'll pick them?
March 30, 2009
A new report from industry analyst Plimsoll says that 69 travel agency companies are perfect targets for acquisition.
We don't have much more than that on it, but that's enough to prompt a couple of interesting questions:
Update: Travolution has a bit more - Plimsoll also found 10% of leading operators (93 companies) are equally 'ripe'.
Who's buying?
So there are some tempting prospects out there. But in Plimsoll's own words, they are "businesses that are currently undervalued yet, with help, can be turned around."
With help?
Most big players are tightening their belts, and - as per Ian Taylor's recent interview with Thomas Cook boss Manny Fontenla-Novoa - 'preparing for a tough year'.
Surely nabbing a small company with an upward trajectory (as TUI recently did with Adventure Tours Australia) is preferable to retooling one on the way down?
Which leads you to...
What kind of businesses are they?
All kinds of things to think about here.
What's the location? What other businesses are competing for local custom? If shop traffic is weak, is there an online side to the business?
Who are the customers? Is there a core of repeat clients to build on? Based on the average age, income and family status, are these people who are likely to cut travel spend during the recession?
Got niche? Is there expertise in the business that a little marketing muscle could turn into an attractive USP?
Job implications?
It comes down to those those two words again: 'with help'.
Turning a struggling business around means cutting costs and/or increasing performance, and we don't need to be explicit about what that can mean for staff.
And finally: if you were to buy a travel business in 2009, would it be an agency?
Nathan Midgley
Comments (3)
As the businesses are desrcribed as "showing a serious deterioration in financial performance", maybe it will be more a case of
"if you were to buy a travel business in 2009 would you pick up some assets from a failed agency ?"
Posted by Malta Bargains | March 30, 2009 6:58 PM
Posted on March 30, 2009 18:58
That's a distinct possibility, Malta Bargains*. And it leads us back to the jobs question...
* All comments appreciated, but real names preferred. Just blogging etiquette.
Posted by Nathan Midgley
|
March 30, 2009 7:14 PM
Posted on March 30, 2009 19:14
Yes it might be possible to pick the client list and the online part of the brand, these would be the most attractive assets.
Posted by FH4U | March 31, 2009 10:17 AM
Posted on March 31, 2009 10:17