Professional & B2B Services · Buyer guide
Buying a Travel Agency business
Published · Reviewed by The Diligence Standard Team · Updated
a Travel Agency can look attractive on headline earnings while asset condition, regulation, customer behavior, inventory, people or owner dependence materially change what the buyer actually owns.
How the business works
Repeat clients, commission pipeline, supplier/consortia relationships, advisor productivity, deposits, destination specialization and owner relationships determine value.
Risks to test
- Owner/client relationship dependence
- Supplier/consortia access
- Commission timing/cancellations
- Advisor retention
- Travel-cycle volatility
- Customer deposits/chargebacks
Evidence to request and reconcile
- Booking/commission history
- Client repeat data
- Advisor roster
- Supplier/consortia agreements
- Forward bookings
- Refund/cancellation history
Decision questions
- How much client loyalty follows owner?
- What forward commission is cancellable?
- Which supplier/consortia rights transfer?
- How productive are advisors?
- What deposits/refund exposures exist?