How do I find out which tour operators send a charter bus company its work?

Ask for a customer-by-customer revenue summary for several seasons, then check it against invoices and bank deposits. Separate direct bookings by groups from work passed along by tour operators, travel agents and event planners. The pattern shows how dependent the company is on a handful of names, and how steady those names have been.

Then ask how the relationships work. Do operators send work on a standing basis or one trip at a time? Is there a written arrangement, an informal understanding or only habit? Are there rate discussions each season? Ask whether the seller is the sole contact, and whether the operator has other coach companies to turn to. If the operator can switch easily, the revenue is less secure.

Finally, if the process allows, ask for a short introduction to the main operators. A broker, if one is involved, can often arrange that once there is a serious offer. Be clear that the call is for understanding the relationship, not for negotiating. Make notes, and compare what the operator says with the records. Ask also how payment works with each operator, such as how quickly invoices are paid and whether deposits are taken, since slow payers affect cash flow.

Key takeaways

• Sort revenue by who booked, then separate direct groups from operators.
• Ask how each operator relationship started and whether it is written down.
• Ask for introductions only once the seller agrees and the process allows.
• Ask how quickly each operator pays and whether deposits are taken.