Paul Davies Paul Davies

Are we future ready?

By Paul Davies, Partner, OneTeam Chartered Accountants Ltd

Every crisis brings about changes. Hardship separates those who love what they do and are prepared to adapt from those who are locked in old methodologies.

Covid-19 has been the most dramatic catalyst for change that has ever hit the travel industry.

It has forced businesses to adapt to survive and reposition for the future.

Businesses are now having to dig deep to survive.

Right now, our progressive clients are putting in place plans and forecasts to get them through the next six to 18 months.

They are revising their business plans and budgets and cashflows looking out six to 12 months.

The main issues that I recommend you look at right now are:
Value your time and charge accordingly. What do you have to lose now if you charge for refunds, for investigating safe destinations, booking MIQ and guiding your clients through the rigors of travelling in a Covid world?
• Get to know your ‘A’ clients and what their hopes and desires for travel are. Should you invest in a CRM system now to manage client interactions?
• Use technology to streamline processes and improve the efficiency of operations. Tramada and VTO Ultimate are in the cloud and give outbounders maximum flexibility in running their operations.
• Stay flexible and agile, so as things change, you can change with them.

In your new business would you prefer to sell $5 million at 20% or $10 million at 10% or $20 million at 5%?

The overrides and GDS rebates of the future may be less, so you may have to rely upon a smaller, more loyal and rewarding client base.

Your staff will have to be better educated and up to date on health conditions around the world – they will want to be well paid to remain in or come back into the industry.

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