Introduction
The tourism industry does promise great profit potential for business people. One form of business that is quite promising is a travel agent. However, as a prospective business person, you need to consider the risks before taking out credit to open a travel agent business. Here are some tips to consider before making a decision.
Credit Risk
- Calculating the Installment Amount
Before deciding to take out credit, make sure you calculate the amount of installments that must be paid each month. Make sure you are able to pay the installments, so that the travel agent business that you run is not disrupted.
- Considering Credit Interest
Credit interest also needs to be considered. Make sure you understand the amount of interest and your ability to pay. Don’t get caught up in high and burdensome interest.
- Calculating the Length of Credit
The length of credit also needs to be considered. The longer the credit, the greater the interest that must be paid. Make sure you choose the right credit period so as not to burden the travel agent business that you will run.
Business Risk
- Tight Competition
The travel agent industry is very competitive. You must be ready to compete with other travel agents that have been established earlier. Make sure you have a good marketing strategy and are able to compete with other travel agents.
- Price and Demand Fluctuations
Airline and hotel ticket prices can change according to the season. Price and demand fluctuations can affect the profits you will get. Make sure you understand market conditions and are able to adjust your business strategy.
- Possibility of Cancellation
The travel agent business also has the risk of cancellation. You must be prepared to face the possibility of cancellation from customers who have already booked plane tickets or hotels. Make sure you have a clear and transparent cancellation policy so as not to harm your customers and your business.
Conclusion
Starting a travel agent business does promise great profit potential. However, as a prospective entrepreneur, you need to consider the risks before taking credit to open a travel agent business. Make sure you understand the credit risks and business risks that may occur. By considering the risks properly, you can minimize losses and optimize profits from the travel agent business that you will run.