Focus on Growth!

A SMALL INDEPENDENT TRAVEL AGENCY had been operating profitably for several years, specialising in business travel and in bespoke holidays for individual clients.  The success of the business in meeting the needs of one particular business client had resulted in that one client growing to provide nearly 70% of sales.  For political reasons within the client organisation, this business was switched to another supplier and the company was left with an
insufficient level of business.

Attempts to buy or merge with a competitor were unsuccessful and it was decided to form an association with another business which would provide a flow of leads.  A commercial arrangement was negotiated with a major independent travel agency which allowed the company to receive a flow of enquiries in return for a monthly fee. 

This enabled the company to retain its experienced staff and the company entered a new phase of growth almost immediately.  After 12 months, the turnover had increased by 80% and the profitability had improved.  In view of the increased flow of business and the rapid rate of increase in the customer base, it was firmly believed that turnover and profitability would both continue to improve in future years.

A CARAVAN PARK located half mile from the sea had 50% of its area allocated to static caravans with the other 50% split between touring caravans and tents. It was originally a farm and still had part of their land used for a small herd of dairy cattle.  The farm was no longer viable and income from the caravan park was slowly declining, which was making the whole venture uneconomic, despite the policy of the local council and Wales Tourist Board of growing visitor numbers in the area.

Analysis revealed that although there was good occupancy for the static caravans, because of their facilities, that of touring caravans and tents was poor due mainly to no modern toilet or shower block being available. There was also no effective marketing strategy in place as they relied on recommendations.

A business plan was developed in order to access funding from a grant or bank loan, planning permission was obtained, funding obtained from a bank and a shower/ toilet block built over the winter period.  A marketing plan was produced and implemented including a web site, flyers to be placed at local tourist offices, increased exposure on touring caravan and camping websites.

The following season income was up 28% with plans in place to cease farming, extend the tourism site and possibly build a small shop.