How to have a Financial Plan and Technology for Traveling

Know the tools available to do the work more efficiently and create programs that include new technology options are a must.

Today there is more information available on reservations for airline market and traffic derived from the Global Distribution Systems (GDS, for its acronym in English), formerly known as Computerized Reservation Systems (CRS, for its acronym in English). This technology is used by individual travel agents to deliver notifications for internal use and external to deliver reports to your customers.

The technology for traveling is used by product providers, such as airlines, hotels and car rental companies to analyze productivity and travel agencies to help manage the relationship between the travel agency and the provider. I have found that the vast majority of providers do not realize they can use this information for marketing, route planning, resort development, inventory car and deciding whether to add or reduce inventory or develop new business opportunities. They may also use this information to evaluate their pricing and revenue management strategy. Providers may also use this information to determine the potential for profit.

What I have seen is the realistic use of this data is actually not used at all or at least not used to an extent close to its utility. As often as providers, determine their relationships with travel agencies based on their knowledge of the account or the size of the travel agency. Very often there is no clear understanding of the value of these data for both sides the travel agency and the provider.

Also of Interest

My recommendation is for both parties to try to examine this information regularly internally and determine what are the best ways to create a strategy to address their business relationship. I call this “technology do make money for you.” The better informed you are about what you sell, you will be better positioned to negotiate with suppliers.

I like to point out that not only is the total amount which should be used but also the quality of business that generates a provider. Suppliers may have the need to sell higher value products and quality and may be willing to offer specials and incentives for the sale of these products.
If I were an agency does not expect to find such provider needs to do but that the agency was proactive and ask these promotions based on their own analysis of the data, again, “making technology make money for you.”

Another technology available to travel agents is data from credit cards. You pay fees for using credit cards, so I suggest you negotiate with different suppliers according to the quantity and quality of their customer base to establish future joint promotions. They have a marketing budget to use for this purpose and most often can be introduced third-party products, such as hotels, airlines, car rental companies and tour packages wholesalers.

I remember a former airline CEO once looked at the credit card receipts from the previous days the first order of the day to help establish how he was doing his business, while most of us just looked at each month or each week at the most. This is called “technology that makes money.”

I have to say that as providers become more direct contact with the consumer data GDS and companies Credit cards lose value, and it’s no secret that vendors want to reduce their distribution costs by building a contact strategy direct to the consumer. However, there is much market still use travel agents for their business and believe that travel agents will always have a place in the business world.

The services we can provide care services agency that most companies will not want to take themselves incorporating completely. The public is consumers who will increasingly turn to the web sites of the suppliers with the idea that the direct way is always less expensive. I have found through personal experience that book trips looking at several websites from different vendors is too wasteful unless you know exactly what company and want to use it regardless of price. If the price is my main interest, then a travel agency can offer a better service.

Social networking and interactivity of Web 2.0 are becoming rapidly in new and interesting ways to reach the minds of consumers and their consumption practices. I’ve seen the development of new business from both distribution channels but still use my old channel, which is the direct personal relationship with my phone and my blackberry to communicate with my clients, but use any other technology to determine where the business is headed in the future and how to create strategies for business development.

We strongly recommend that you ask your IT department to help you build your business development strategy of generating a variety of reports, reports recommend perhaps never before been seen and determine if they can help you or other departments of your company intensify its efforts and expand the knowledge base of its customers and suppliers. You may be pleasantly surprised to see that the information was generated and in the same office but was too busy to study it or did not know what questions to ask about your own business.

I see that we often have opportunities in our noses and we did not see them because we are used to analyze only the common reports, and felt very comfortable with this information. The more you know and what you sell, the more tools you will have to negotiate with their suppliers and suppliers can do exactly the same.

Importance of Financial Plan and Technology for traveling

The Financial Plan or Budget Financial Plan is probably the most important part of the business plan. In monetary units – - For in him all the developed and quantified information is collected from each of the action plans, which correspond to each of the functional areas of the company.

It is an essential tool to use when analyzing the economic and financial viability in the short and medium-long term, a business project, in a company created and those that are working and should continue its trajectory expansion and consolidation. Helping us to assess whether the business project to undertake meets the expected returns and expected liquidity, and thus enable us to take appropriate and timely decisions for the company to survive and grow sustainably.

The main objectives to be pursued by any project, at the time of making your Financial Plan, are:

Determine all investments requiring the company to implement it, and then provide those necessary for growth and consolidation thereof; estimating the useful life of such investments.

Identify sources of financing which may be available and should – both their own and others – to carry out the necessary investments, indicating how they are expected to repay the borrowed funds.

These two groups make up the balance sheet items starting the project, and reflected in a document called balance pension situation at start of activity.

From here the operation of the company will be simulated for a specified period, usually encompass the first three years of activity. This simulation is to demonstrate the economic viability of the business, or return it, and the financial viability or solvency. To do this, we must continue making the financial plan, having to:

Reflect estimated sales by business lines or items to sell, sales plan that will be determined according to previous studies developed in the marketing plan. And these expected revenues should be deductibles all projected expenditures (direct costs, operating costs and financial) for the first three years of activity with possible as detailed temporary breakdown for the first year, being recommended by month – to obtain the result of the activity.

Calculate breakeven or breakeven company, and show the expected sales if it exceeds or reaches it.

The difference between these items, income and expenses over a period of time, give us information on the economic viability of the project, i.e. whether the company will make a profit or loss for that period of time, whether the project will to be profitable or not. And in order to do the analysis in a more structured way, allowing us to know what, or which, of the elements affects the outcome more positively (gains or benefits) or negative (losses), these elements are reflected in the document called income statement or pension income.

The next step to make in the business plan is to:

Determining when expected cash movements occur.

According to the operating revenue and expenditure estimates, inflows (receipts) and outflows (payments) of money from each of the time periods set will be reflected.

The document which will be reflected in these movements of money is called: plan or cash budget. And through analysis determine the financial viability of the company, showing whether or not it has sufficient liquidity to survive. – About

So, as it may have gathered, the content of this Chapter of Finance will be based primarily on learning the framework of the financial plan for how to tailor it. To which we become familiar with the elements that compose it and learn how to structure them according to their meaning (investment, financing, costs, expenses, income, payment and collection) in appropriate documents (called financial statements: balance sheet, income gains and losses or income and liquidity plan), so that the information coming out of them are able to analyze the viability of the business plan, and as a result, we take the necessary decisions for the history of the company is adequate.