Business Metrics Set The Stage For Success

by Richard D'Ambrosio
Business Metrics Set The Stage For Success


Sometimes travel agency owners can be so busy managing their business day to day that they miss the opportunity to step back and look at the big picture.

But analyzing key business metrics and benchmarking those financials with a relevant peer group is the way to stay on top of this in this ever-changing industry. ASTA director of research Kevin Wang has been engaged in a multi-year benchmarking program to assist ASTA and NACTA members in running their businesses more strategically, and provided some insights at a session yesterday.

“As agents you are very busy servicing clients and hitting your sales goals. At the end of the day, it may be impossible for you to track critical information, look deeper into your financials, and see how healthy your business is,” Wang said. “We want to remind you how important it is to benchmark and show you how.”

For example, travel professionals may know what their sales and income is, but might not know how healthy their profit margin is, and more importantly, how much better their profits could be. “Even if you know your numbers right now, you don’t always have the time to analyze how they are trending over time and understand what that means,” he said.

Wang’s 90-minute workshop focused on helping attendees understand which financials are the most critical to view regularly, what to look for in the data, and how to compare yourself to peer groups. Agents registered for the session came with their agency’s data after filling out worksheets e-mailed to them prior to the conference.

Some of the key financials reviewed were sales, revenue and expenses. During the session, Wang walked attendees through profit calculations, and helped them visualize and understand trends, and benchmark as a group.

“It’s not sufficient just to compare yourselves to your peers, but also to understand what the top percentile looks like, so you can see a path to improvement if you aren’t in that group,” he said. Wang believes both independent contractors and agency owners should look at their financial and operational data every quarter.

“Most agents look at it twice a year at most, and often only once a year with their accountant when doing their taxes,” he said. If you missed out on the chance to participate in the session, Wang will host a similar workshop at NACTA’s annual conference in Alaska in September.

  0
  0
Tip of the Day
Daily Top List

Most Useful Twitter Accounts for Travel Agents

1. AskTSA

2. FlightRadar24

3. Department of State

4. CLIA Global

5. ASTA

Source: TMR

TMR THIS WEEK
http://services.travelsavers.com/AMGService.svc/REST/GetImage?ImageID=dd7f092d-7dff-e711-80eb-782bcb667b27

What's Their 'Why'? Connect Your Clients to Their Passion for Travel

The unique reasons that inspire people to travel are the foundation of travel fulfillment, and more sales for travel agents.

TMR Recommendations
Top Stories
Small Agent Credit Card Scams Are Still Popular
Small Agent Credit Card Scams Are Still Popular

That email from a potential customer might seem like an enticing sales opportunity, but you could become a fraud target if you engage with them.

Bomb Cyclone Delay Raises Issue of Clients' Rights When Service Goes Awry
Bomb Cyclone Delay Raises Issue of Clients' Rights When Service Goes Awry

An airport incident between passengers and a Canadian airline in Boston during the “bomb cyclone” highlights the tensions that can rise when there are significant delays.

Multi-Trip Travel Insurance Could Cost Less, But Has Low Awareness
Multi-Trip Travel Insurance Could Cost Less, But Has Low Awareness

This lesser known option has yet to catch on because most travelers aren’t aware of it, and agents are more inclined to sell single-trip policies.

What Do the New Facebook Rules Mean for Travel Agents?
What Do the New Facebook Rules Mean for Travel Agents?

Changes announced this week by Facebook’s CEO may lead to less value for businesses trying to reach customers through unpaid content on the social media platform.

Lonely Planet’s Top Places for Solo Travel Includes Adventure and Foodie Destinations
Lonely Planet’s Top Places for Solo Travel Includes Adventure and Foodie Destinations

The travel guide’s list includes 10 cities from around the world that will convince even the most uneasy single traveler that it’s time to start exploring solo.

Headquarters Happenings: After a Successful 2017, Travel Leaders Looks to a Stronger 2018
Headquarters Happenings: After a Successful 2017, Travel Leaders Looks to a Stronger 2018

Synergies from 2017 merger, enhanced travel agent tools, and expanded luxury offerings propel the company into the new year.

News Briefs
Advertiser's Voice
Advertiser's Voice: Scenic Cruises