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Specialist Tour Operator
Wholesaler to the B2B UK & European Travel Market
Established in 2013, the business designs and sells culture related travel products to the UK and Europe. It is a specialist wholesaler which supplies ground breaking travel products and services. The core business is to serve the fast-growing business-to-business travel markets.
Travel products include
• Series and tailor made leisure tours
• Student culture tours and summer holidays
• Fully independent travel
• All in one travel services
The business is working with large Chinese travel corporations and is the B to B (Business to Business) model. The company is acting as the land operator of UK and Europe for these large travel corporations and is signing up annual contracts and taking purchasing orders from them on a yearly basis. The purchasing order value is various and is for the groups of 20 – 40 Chinese Tourists travelling to the UK and Europe. This business looks after all aspects of the group requirements whilst in the UK/Europe.
This involves movement of the groups from the airport to pre-booked hotels, management of the daily itinerary for the duration of the stay and return travel to the airport. Also the organisation of coach travel, hotels, restaurants, tourist attractions, creation of the itinerary, and being the point of contact to resolve any issues. All international operations are dealt with highly eficiently through the in-house booking system, with fixed and low administration cost.
Currently the business is taking on average under 100 groups per year from clients who are themsleves organising thousands of groups to travel every year. Hence the business volume is guaranteed and can grow in the future with the business acceptance of more purchasing orders.
Currently, the company has over several thousand live hotel and ground supplier contacts and confirmed monthly and annual purchasing orders for 2017.
The business is very competitive in the market, and hold licences which are traceable to the Chinese Travel Administration board. The business is also registered at all European embassies and can provide the documentations to help Chinese applying for a VISA to enter the UK and Europe.
Leisure tour: For groups of 20-40 Chinese tourists coming into UK or Europe for between 10 and 15 days holiday;
Students Programme (Summer and Winter): Offering tailored Micro Study Abroad programmes for those Chinese students who are coming from High Net Worth (HNW) families to experience life style as well as academic study in UK for a short period of time.
Localisation Services: Offering one stop shop services for those HNW families who want to settle in the UK for their kids’ further education.
Customer service is paramount to the success of the travel industry. The owner is aware of how reputations are built on how good the team perform. The company is efficient and knowledgeable with a 24 hour response to all customer requests that are looked after on an individual basis.
Based in London, with representation in Zurich and a sales office in Beijing, the company works closely with Chinese travel companies. With the increasing desire for Chinese people to travel to the UK and elsewhere in Europe, the business is growing stronger.
The business is very professional when designing and selling the travel products. Should clients need to change their requirements the company is flexible and responsive to their requests, understanding the needs and cultural backgrounds of clients to provide the best travel products every time. Dealing directly with clients also ensures a price advantage for the clients and makes the company extremely competitive within the market. The twenty four hour customer service that is offered ensures a quick response when dealing with any complaints and sorting out any issues while are clients are travelling.
The company has also obtained HMRC’s full approval for the EIS Scheme (Enterprise Investment Scheme)
The business is being offered for sale on a going concern basis: all financial discussions will take place directly between the vendor and all interested parties under the auspices of Turner Butler.
Depending on the amount of working capital investment the vendor believes the company could achieve sales of circa £2Million.
£ 2014 2015 2016 2017 2018 2019
Actual Actual Actual Actual Actual Expect (with extra 200,000)
Revenue 2,48,876 6,05,359 5,75,379 11,02,789 14,54,215 23,58,047
Cost of Sales 2,56,607 5,11,526 5,03,214 9,21,931 12,30,623 19,31,350
Gross profit -7,731 93,833 72,165 1,80,858 2,23,592 4,26,697
The business has grown steadily over the years and has traded consistently having found a distinct niche in the travel market. Due to Brexit leading to the weak pound, the UK inbound travel industry is expecting to grow even stronger than expected in 2017.
So the timing is perfect for the business to grow, however, the business needs extra working capital investment to achieve this.
Currently only operating with one operator in Beijing there is the very real potential to expand to other large cities in China where there are more big travel companies and the guarantee of additional revenue.
There is also the potential to expand out of China and reach out to companies in South East Asia, like Singapore, Malaysia, Thailand, Taiwan and so on.
The travel products on offer can also be extended to include more European Countries than the five that are currently offered the tour products.
Additional investment in developing a customised online platform would lead to business with small family and business groups.
The owner believes that all of the above are an excellent opportunity to take the business forward due to the constant demand for travelling to the UK and Europe from Asia. The business is ripe for further expansion.
The company has not felt the need to advertise. Sales are made direct to travel companies, saving time and cost. The business has an excellent reputation and attracts trade through word of mouth recommendation and referrals. There is also an excellent website to showcase the company and the products on offer.
The company has been running well over the last 3years with stable profit. The market outlook is good for continued growth, however the business could do with extra capital investment to make the most of the opportunities available.
The vendors are happy to provide support and training to the new owners to ensure a smooth transition of ownership and trading contacts.
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