Are You Evaluating Your Travel Business' Worth? It Could Be the Key to Consistent Growth.

Whether you're just starting out as a single travel advisor or running a larger agency, preparing your business to sell is one of the smartest ways to build value—today and over the long run. Of course, you don't need to actually sell your business to benefit from this process.

In fact, evaluating your business as if it were for sale is an exercise that can help you fine-tune operations, make your business more profitable, and generate greater satisfaction along the journey.

While travel is one of the absolute best businesses to own well into your senior years, if you ever feel like it’s time to slow down and transition out, you’ll have built a great asset that can command top value.

We Do This for Our Homes

Think of it like homeowners getting ready to sell their house. My wife and I were just discussing this over the weekend. With three kids—one already in college and two in high school—we’re thinking ahead about what we’ll need to do to get top dollar for our home once all the kids have moved out. It’s a long-term plan we can tackle in bite-sized pieces over the coming years. We’ll repair, clean, and make targeted upgrades to ensure it’s in the most marketable shape possible when the time comes.

Many homeowners feel their home has never looked better than just before they list it, and the same principle applies to your travel business. By taking a buyer’s perspective and addressing things in need of some attention, you're not just increasing its value for the future, you're making it a better business to own and operate today.

Who Should Be Doing This? Everyone.

This isn't just an exercise for large agency owners with multiple advisors or huge client lists. It’s a powerful tool even for solo advisors or those just beginning to grow. Regardless of the size of your business, looking at it through a buyer’s eyes is an excellent way to uncover new opportunities for improvement, profitability, and growth. No matter where you are on your journey, there are steps you can take today that will strengthen your business and make it more valuable.

Make It an Annual Exercise

Set a day on your calendar each year (I recommend some time in Q4 to help with planning for the new year) to evaluate your business from a buyer's perspective. This yearly habit ensures you’re continuously refining your operations and identifying growth opportunities. Think of it as a “business health checkup”—you’ll catch issues early and make improvements that benefit your current operations, as well as long-term value.

Framework for Evaluating Your Travel Business and Client List

Here’s a step-by-step framework to guide your annual review. By breaking down your business into key areas, you can focus on the things that matter most to a buyer and, ultimately, to the growth and success of your agency.

1. Financial Transparency and Performance

Why it’s important: Buyers want to see a clear financial picture. Organized, transparent financials signal a healthy business that can sustain itself. Of course, a clear financial picture helps you spot weaknesses and identify opportunities for growth.

What to evaluate:

• Revenue trends: Are your sales and commissions growing year over year?
• Average transaction value (your average sale): Is your ATV growing year to year?
• Profit margins: Are you seeking to sell products at higher commission rates? Are you controlling costs while increasing sales?
• Recurring revenue: Do you have consistent, repeat clients?
• Key ratios: Gross profit margin, average transaction value, commission revenue per transaction, and client acquisition cost.

Ensuring your financials are organized and up-to-date makes it easier for a buyer to assess value—and helps you understand your agency’s performance in real time.

2. Client List: The Most Valuable Asset

Why it’s important: Your client list is more than just a list of names. It’s the core of your business value. Buyers will be looking at the quality and engagement level of your clients, not just the quantity.

What to evaluate:

• Client demographics: Who are your clients? Understanding their age, income levels, travel preferences, and buying habits can help segment your list and tailor marketing efforts.
• Booking frequency: How often do clients book travel with you? On average, the general range.
• Retention: How many of last year’s clients have booked this year? How is this percentage changing over time?
• Lifetime value (LTV): What is the total revenue each client generates for your business? LTV helps measure the long-term value of your client relationships.
• Referral rates: Are your clients referring new business to you? High referral rates indicate satisfied clients and strong potential for growth.

A well-segmented, engaged client list not only boosts your current profits but increases the attractiveness of your business to potential buyers. Measuring the key ratios above and monitoring them regularly, gives you great clues about where to look to unlock more value from your business.

3. Operational Efficiency

Why it’s important: Buyers want a business that runs smoothly. Efficient operations also mean less daily stress for you and more revenue per hour invested.

What to evaluate:

• Technology and automation: Are you using a CRM, marketing tools, and booking tools to streamline processes? Automation reduces workload and minimizes errors.
• Documented processes: Can someone step into your role and understand how things work? Well-documented processes make your business scalable and easier to manage. This may sound like a step that feels unnecessary, but I think you might be amazed at what you can learn about your business and how you spend your time as you document your processes.
• Team and outsourcing: If you work with other advisors or support staff, how seamless is the workflow? Are there areas you can delegate more effectively to free up your time for high-value tasks?

Improving efficiency will make your business more profitable and attractive to a buyer, but it also gives you more time to focus on growth and client relationships today.

4. Brand Strength and Market Position

Why it’s important: Your brand is what sets you apart from other travel advisors. Buyers are looking for businesses with a strong reputation and niche expertise. And guess what? So are clients!

What to evaluate:

• Brand identity: Is your niche clearly defined? Whether it's luxury cruises, family travel, or adventure tourism, buyers want to see that you own a specific market segment, and so do prospective clients.
• Marketing efforts: How consistent is your brand presence? Evaluate your social media, website, and email marketing strategies. Consistent, engaging content keeps you top-of-mind with clients and builds long-term loyalty.
• Client reviews and testimonials: What are your clients saying about you? Positive reviews and a strong reputation add credibility and increase your business’s perceived value. If you don’t have (many) reviews, ask your clients for them!

Building a recognizable brand not only helps with client acquisition but also enhances the overall value of your business.

5. Growth Potential

Why it’s important: Buyers want to see that the business has room to grow. Even if you’re not planning to sell, identifying areas of growth is crucial for long-term success.

What to evaluate:

• New services: Are there opportunities to expand your service offerings to increase your average transaction value? This can be as simple as ensuring your sales process always offers travel insurance or pre/post-upsell options. If you’re already doing this, how often are your clients buying these upsells? Can you improve your results by dedicating some focus to this?
• Client segments: Are there untapped markets in your current client base? For example, could you expand into group bookings within your niche?
• Advertising: Organic growth through inbound marketing and referrals is the most cost-effective long-term strategy for growth, but advertising doesn’t get enough attention in our world. Even if you’re a solo advisor, you are running a business, and sometimes advertising is what a business needs. Fortunately, there are great opportunities for highly targeted digital ads that you can execute on a very small (or very large) budget.

Focusing on growth potential ensures your business remains dynamic and future-proof, which adds significant value for you and for any potential buyer.

Building Value for Today and Tomorrow

Taking the time to evaluate your business annually, as if you were preparing to sell, is a fantastic way to ensure continuous improvement. By keeping your financials clean, understanding the value of your client list, streamlining operations, building your brand, and focusing on growth potential, you’re not only positioning your business to be more valuable if you ever choose to sell—you’re making it more profitable and enjoyable to own right now.

You don’t need to “fix” it all at once. Make this evaluation an essential part of your business routine every year, tackle the highest priorities in bite-sized chunks, and you'll be amazed at the long-term benefits.