Owners of small travel firms must find a niche instead of trying to compete on price.
That was the message from industry experts at World Travel Market’s Talk Business debate at ExCeL on Thursday 11 November.
Richard Carrick, former Chief Executive of Hoseasons, advised the audience: “Develop a product that no one else sells – fill those niches.”
Other experts on the panel agreed, and argued that SMEs (small and medium-sized enterprises) cannot compete on price with larger firms.
Steve Byrne, Managing Director of Travel Counsellors, said: “The UK travel industry is almost paranoid about customers wanting the right price – but it’s about the right level of service. Focus on value and the quality of your people – not the price.”
Klaus Ehrlich, General Secretary of EuroGites, the European Federation of Farm and Village Tourism, also offered tips at the debate organised by WTM, the premier global event for the travel industry.
Ehrlich said: “Use the huge amount of information on the internet to define your product and find out what the customer will buy – and what they will pay for it.”
Red tape was the main challenge that he saw for micro-entrepreneurs, citing the “ridiculous” example of one business that was fined for a breach of fire regulations in a tent.
The top tip for businesspeople from Matt Stuart, Managing Director of Getabed, was to establish robust controls and discipline in the business.
And looking back at the volcanic ash crisis earlier this year he also advised: “Think the unthinkable…and try to mitigate that.”
Banker Chris Lee, Head of Travel at Barclays Corporate, echoed the sentiment of the panellists when he said the key was quality management and recruiting quality staff.
But the scale of the challenge faced by entrepreneurs in SMEs was summed up by Lord Digby Jones, former Director General of the CBI.
“You need a total, relentless, absolute, demoralising focus – kiss goodbye to your personal life, family, holidays, sleep…just manage the balls off your business,” he advised.
“And in 20 years from now people will think you’re lucky and a fat cat.”
