Improving Economy Boosts Profits for Travel Industry
Thursday, 04 October 2012 22:11
After several years of declining profits, the travel industry is finally seeing signs of improvement. According to a recent survey by the American Society of Travel Agents, over 70 percent of respondents have experienced steady revenues or increased profits over the last year, a welcome change from recent patterns of reduced client lists and lower profitability industry-wide. Industry analysts predict that 2013 will be even better for the travel industry, with average profit margins expected to reach double digits for the first time in over five years. With client lists and earnings potential on the rise, many travel agencies are considering expanding into new market areas. Others are looking to upgrade their current technology in favor of cutting-edge online ordering platforms that will allow them to provide even better service. Finding the right business lending solutions can allow travel agencies and other service providers to maintain profitability and take advantage of business opportunities when they arise.
High-flying strategies for growth
For smaller travel companies, cash flow management can sometimes be a significant limiting factor in growth and expansion. Outdated equipment and outgrown office space can create a less positive impression on potential customers and can result in missed opportunities. Travel agents sell more than airline reservations and hotel arrangements; they sell the glamour and excitement of exotic destinations and the thrill of exploring a new and exciting part of the world. Presenting the right image is a critical element of success in the travel industry. Expanding into new, larger office spaces and upgrading dated equipment can make a significant difference in revenues for travel agencies in the modern marketplace.
Monetizing the move
Most travel agencies will require significant financial resources in order to manage the expenses of moving and upgrading their equipment. In most cases, collateral will be required as part of the terms of any lending agreement. Travel agencies can sometimes qualify for accounts receivable loans, especially if the company has a significant amount of unpaid and outstanding invoices with reliable customers. Real estate holdings and vehicles can also serve as collateral for a business line of credit or a commercial business loan arrangement. Regardless of the type of loan sought, service industry companies often require a little extra help in creating a persuasive and compelling loan application to acquire the funding they need to expand and remain competitive in the modern marketplace.
How CNF Exchange can help
When seeking funding for expansion and new equipment, travel agencies and other service industry agencies must present solid evidence that their cash flow and expected revenues are sufficient to allow timely repayment of business loans. Unlike manufacturing and industrial firms with large factories and real estate holdings, these smaller agencies typically have limited collateral. CNF Exchange can help travel agencies find willing lenders through the Investor Exchange program. Additionally, CNF Exchange offers added services for borrowers to help fine-tune the loan application and ensure that all relevant documentation is in place. This can ensure that travel agencies and other small service industry companies can take advantage of business opportunities and continue to expand and grow in the future.
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