How do I judge a travel agency’s repeat client list before buying?
Ask for a client list showing bookings by year, then count how many booked more than once and how recently. Separate clients who follow the firm from those who follow one agent. A long list with no recent bookings is history, not a base to rely on.
Request booking records tied to client names, with dates and amounts. From them you can see who booked once, who returns each year and who has gone quiet. Pay more attention to recent bookings than to the size of the list, because contact lists grow and rarely shrink.
Next, find out what keeps clients coming back. Some return for a particular agent who knows their tastes. Others book with the firm for group trips, corporate travel or a niche destination. Ask the seller to mark which clients belong to which agent. If the best clients follow someone who may leave, treat that as a risk to plan for.
Look at how repeat business reaches you. Is there a mailing list, a loyalty routine or only memory? A firm that tracks clients in a system is easier to take over than one that lives in the owner’s head. Check that the list is usable and that you can contact the people on it under the privacy practices the firm already follows. Your lawyer can advise on that. Finally, with permission, speak to several repeat clients about why they stay.
Key takeaways
- Look at recent bookings by client, not at the size of the contact list.
- Mark which repeat clients depend on a particular agent or the owner.
- Confirm the list is usable and that you may contact its members.
- Speak with several repeat clients, with permission, about why they keep booking.
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Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
- 03Business Development Bank of CanadaGovernmentAfter buying a business, what is the next step?
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