Marketing research in the implementation of the business idea of organizing a holiday agency is necessary to identify the features of the competitive environment, as well as for a preliminary assessment of the profitability of the future enterprise.
Even if you have the abilities and talents of organizing holidays, you need to be prepared for the fact that professionally trained specialists of competitive holiday agencies can offer their services at a higher level and at a lower price.
Therefore, before the start of the holiday agency, you need to carefully study not only the demand for its services, but also those features in the work of other holiday agencies that allow them to be competitive.
When organizing the work of a holiday agency, it is also worth deciding on the segment in which the agency will work. This will largely determine the needs for technological equipment and design.
A corporate holiday, a children’s party, a wedding and a competition of professional skills are held in completely different ways.
A holiday agency that has really qualified employees and the necessary requisites for organizing a holiday can afford to work with large corporate clients.
When organizing a holiday agency, it is not always necessary to have specially allocated premises. However, to work with large corporate clients, this condition is often necessary.
In terms of agency staff, the best form of staff organization is to combine a small permanent staff with specialists who can be brought in to organize events on a temporary basis. The permanent staff usually includes the head of the agency himself, a secretary or assistant to maintain contact with clients, and one or two managers who are engaged in attracting clients, identifying requests and organizing day-to-day affairs.
The composition of employees involved can be very diverse. They can be a screenwriter, composer, poet, presenters, technicians with props, designers, and so on.
The task of the holiday agency is to coordinate the efforts of all these people in order to quickly and efficiently complete tasks.
The initial costs of organizing a holiday agency depend on the format of the agency itself, the presence or absence of office space. If the premises are bought or rented, investments are required for its repair and technical equipment. Under any option, the initial costs will include the costs of registering a new enterprise, purchasing the necessary equipment, details, computers, communications equipment, and the initial supply of consumables.
Celebrations usually require technical equipment such as projectors and projection screens, musical equipment, stage installations and room decorations.
A large holiday agency can purchase this equipment for its work, or it can attract contractors who have the necessary equipment to perform their tasks.
The current expenses of the holiday agency will consist of the cost of renting the premises and utilities, communication services, paying contractors, salaries to employees, and replacing worn-out props. The list of current costs should also include advertising costs, especially at the first stage of activity, since the reputation of a holiday agency is earned with great difficulty and against the backdrop of the success of competitors.
As for the profitability of a holiday agency, it is well known that organizing even a small holiday costs customers tens of thousands of dollars. The cost of corporate holidays can significantly exceed this amount.
Experience shows that the profitability of the holiday agency is achieved in the first year of its existence. A well-promoted, creative and popular holiday agency can earn tens of thousands of dollars a year.
Of course, a novice entrepreneur should not count on such high incomes, therefore, at the first stage, in order to avoid mistakes and unnecessary expenses as a result of these mistakes, it is better to conduct marketing research in advance, make a preliminary calculation of profitability, and prepare a business plan, especially if receiving investments from outside sources.
You can order the necessary calculations in relation to your specific conditions, as well as a ready-made business plan, on our website.