OUR SERVICES ➧ OFFER INDEPENDENT EXPERT TRAVEL ACCOUNTING SYSTEMS ASSISTANCE
We understand, Serko, Travelog, Crosscheck, Tramada and SAM Travel systems
➧ UNDERSTAND YOUR TRAVEL BUSINESS ACCOUNTS
Attend our Travel Industry Accounting Training Courses
➧ ASSISTANCE TO IMPROVE YOUR PROFITABILITY
We produce Monthly Reviews of your Travel Accounting results to guide you
➧ HELP TO ACHIEVE YOUR GOALS
Use our Travel Industry designed Business Plans, Budgets and Reviews
➧ MINIMISE YOUR RISK
TAANZ Bonding advice and assistance by the experts
➧ BENCHMARK YOUR AGENCY WITH THE BEST Comparisons with our 100 Travel Business clients
References from Keith Summer - Managing Director - Gilpin Travel and from Trish Ryder MD, Manly United “If you’re looking for a qualified accountant that provides expert advice to travel agents at affordable rates you can’t go past Travel Accounting. We’ve worked with Paul and his team for more than 11 years and highly commend them.”
Keith Summer MD Gilpin Travel
“I have been using the services of Paul at Travel Accounting for over 12 years. Paul and his team are always professional and approachable and provide sound advice which has been invaluable over this time. Over the years I have called on Paul to assist me with many areas of my business from Agency Accounts, Accounting Systems, TAANZ Bonding, Business Structure. As we have grown Travel Accounting has been instrumental in getting our business operating more efficiently due to their specialised knowledge of the Travel Industry. In fact sometimes I regard them more as mentors than accountants. I have no hesitation in recommending the services of Paul and the Team at Travel Accounting and appreciate the advice we have received over the years.”
Under pressure ■ Paul Davies pauldavies@travelaccounting.co.nz www.travelaccounting.co.nz Competition between corporate travel agencies is putting increased pressure on margins and profitability. One anonymous corporate travel agent said Air New Zealand-owned Tandem Travel is targeting their clients with deals that are hard to compete with. “In what other industry can a supplier compete directly with its own customers to take business from them?” they commented. This strategy put increasing pressure on independent corporate travel agents to reduce margins as Tandem can offer all the products and services that they can at reduced prices. So how can travel agencies compete with their own supplier? Perhaps now is the time to re-evaluate your suppliers and what they offer. How can you ensure your systems are efficient and how can you benchmark your business against the best in the industry? Profit improvements can only be achieved by four means: 1. Increase sales – maybe difficult in this market 2. Increase margins – even more difficult given the competition 3. Reducing costs – these need careful review 4. Improve productivity – systems, systems, systems This requires business analysis using KPIs to analyse performance: • Revenue to sales – greater than 11 per cent • Staff costs to revenue – less than 52 per cent • Other costs to revenue – less than 26 per cent • Resulting profit is greater than 22 per cent of revenue.
Trish Ryder Director Manly United Travel
39 Maungawhau Road, Epsom Auckland 1023
August 2012
PO Box 109515, Newmarket Auckland 1149 Tel: 09 524 6178 Fax: 09 524 6179 Email: pauldavies@travelaccounting.co.nz
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These figures are taken from the analysis of our top four corporate travel agencies selected on the basis of net profit/ revenue. Generally corporate travel agencies pay a higher proportion of their revenue to their staff than leisure agencies. But they can operate with lower overheads as location is not as important.