How much of a travel agency’s business leaves with its advisors?

Ask whether clients follow a person rather than a storefront. If a family has booked with the same advisor for years, they may move when that advisor does. That makes the people the agency’s most movable asset. Before you buy, learn which advisors hold which clients, how each advisor is engaged, and what keeps them with the agency after the owner leaves.

Bookings tied to the owner

Start with the owner. Ask the seller how many of the agency’s regular travellers deal with the owner directly, and how those clients were first won. If the owner handles the largest accounts, plan a handover period with personal introductions. A seller who stays on for a time after closing can make that transition much smoother.

Independent and commission-split advisors

Some advisors are employees. Others work as independent contractors on a commission split and may be free to take their clients elsewhere. Read each advisor’s agreement with your lawyer, and ask what it says about client records and leaving. The answer shapes how much of the business is really the agency’s to sell.

Checking repeat-client records by advisor

Ask for a report showing repeat bookings grouped by advisor over a few years. It shows whether business is spread across the team or concentrated in one or two people. A concentrated report is a retention risk to raise with your advisers.

Retention steps before closing

• Meet each key advisor before closing, with the seller’s consent.
• Agree staying-on terms with advisors who hold large client groups.
• Plan joint introductions so clients hear about the sale from someone they trust.