Travel agency business plan with calculations 2021

What will happen to travel agencies in 10 years

In the last few years, independent tourism has been gaining popularity. They book through the Internet both package tours and individual services - air tickets, hotels, visas on their own. Many travelers who personally take care of their trip have the feeling that travel agencies will soon disappear from the face of the earth as a rudimentary phenomenon.

Is this true and what will happen to travel agencies in 10 years? The answer to this question lies deeper than it might seem at first glance.

First of all, we must admit that with the advent of new convenient online booking services, the audience of independent travelers will only grow. It happened in the west and starts in Russia. Some of the clients of travel agencies will become independent travelers.

Secondly, you need to decide what kind of business the travel agency has? This business is consulting, i.e. the product, by and large, is the same for all firms; the competence of the manager comes to the fore. It is the manager who takes care of booking a tour, organizing additional services and fulfilling the wishes of the client. Some clients do not want to organize a trip on their own, and here's why.

Thirdly, you need to understand the difference in tourism products. Tours are to mass destinations, such as Egypt, Turkey, Thailand, etc., where travel agencies are able to compete with independent tourism, due to lower prices for tours (because they take wholesale places in airplanes and hotels) and the quality of services provided. There are also individual tours, when a travel agency, at the request of a client, acquires travel services separately, saving him to do it on his own.

Fourthly, clients are different. There are those who need as cheap and cheerful as possible, there are those for whom the price does not matter, as long as everything is done “as it should”.

Based on all these points, which show how heterogeneous market conditions are, several conclusions can be drawn.

I see several ways, adhering to which, travel agencies will be able to survive and, moreover, occupy their market segment.

Mass tourism product

As mentioned above, travel agencies can give the lowest price for a mass tourist product - we all know about last minute tours. Some firms that caught the trend at one time are now doing well. A striking example is the Chip Trip. However, last minute deals must also be bought wisely.

Travel agency provides a wide range of services to the population. This list includes not only making tours, booking hotels, but also purchasing air tickets, working with insurance, obtaining visas, and assistance in preparing documents. The advantage of this line of business is that it requires quite a few investments, and with a competent approach, it will bring high profits. How to open a business according to a travel agency business plan with calculations, read our article.

Market and Competitor Analysis

The segment of the tourist services market in the Russian Federation began to grow and develop since about 2010. All this time, he showed significant growth. It is noteworthy that not only the volume of the market grows annually, but also the revenue of companies operating in it. This suggests that the market is growing not only in terms of quantity, but also the quality of services provided to customers is growing.

The main activity of the tourist services market is to provide assistance to travelers who are going to travel abroad. 90% of these clients go on vacation. Of course, there is a certain percentage of people who are going to immigrate, go to study or do business, but they prefer to use the services of specialized companies, of which there are also quite a few today.

It should be noted right away that the level of competition in the tourist services market is very high. A high level of demand also gives rise to supply. Annually, the volume of the tourist market in Russia increases by more than 100 billion rubles. This is a very impressive figure. Let's see what exactly is the reason for such growth rates.

  • growth in the level of paying capacity of citizens;
  • large-scale development of the infrastructure of this type of business, clients are presented with more opportunities;
  • attractiveness of the market for investors. Funds are invested not in travel agencies, but in those establishments that directly provide services, that is, hotels, airlines, etc.
  • the opportunity to save money when buying a tour, which creates a high level of demand.

The main service offered by travel agencies is the assembly of tours for citizens. The tour price includes hotel accommodation, flight, insurance. For the client of the company, such a purchase will be much more profitable than purchasing these items separately.

The travel business encompasses the Internet. Today more and more people began to use a new service - online booking services. Thanks to the procedure, time is significantly saved for both the consumer and the travel agent. Thanks to the automation of the process, profitability and profitability are significantly increased. This function should be taken into account when opening your own travel agency.

Among the main competitors of your company are:

  • large tour operators who are known not only in your city, but also in the country as a whole. This is the most important competitor, which will be difficult to fight, but you can think about possible cooperation. Today, a large number of different programs are presented, in which a well-known travel agency helps small businesses in this area. As a rule, this assistance is provided for a certain percentage of the profit. In some ways, this is similar to franchising;
  • direct competitors, that is, the networks in your city. You can deal with them quite simply with a competent marketing organization, as well as drawing up profitable offers for customers.

If we talk about the portrait of a potential client, it will be a person between the ages of 20 and 50, with an average income or above average income. It can be both men and women. Such clients prefer to travel abroad.

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