You want to sell your travel agency? Then it's good to know what the travel agency takeover market looks like. The travel industry was completely turned upside down by the pandemic and the landscape has changed dramatically with the disappearance of some major organizations. The market is expected to pick up in the coming years; yet there are fears that consumer travel patterns are changing and the industry will not fully recover.
After quite a few years of peaks, a big dip in the travel industry is now visible due to corona, flight shaming and more conscious consumers.
There are many ways to value a business. A common method of expressing the value of a business is "a factor x gross annual profit." This factor is also called multiple and another designation for gross annual profit is EBITDA (Earnings Before Interest Taxes Depreciation and Amortization).
In the hospitality, tourism & leisure sector, which includes a travel agency, an indicative EBITDA multiple range of 2.9 to 4.0 is currently used, according to the Brookz Takeover Barometer. The average EBITDA multiple across all SME sectors is 4.90.
The valuation of a business is often the starting point for negotiations between buyer and seller. The outcome of these negotiations is the final sales price. So valuation and price are two different quantities. Besides valuation, the price is also determined by possible scarcity in the market, bargaining power of the parties, the strategic value of the business for the buyer and possible synergy effects for the buyer (cost savings, purchasing advantages).
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Do you want to buy a business or sell a business in the Hospitality, Tourism & Recreation sector? With this Brookz Sector Monitor we want to present buyers and sellers with facts, figures and an outlook that provide insight into the number of transactions, the value development of businesses and the latest trends and developments in the Hospitality, Tourism & Recreation sector. Because in any buying or selling process, thorough preparation provides peace of mind, overview and structure.
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There are many startups and small-scale organizations in the market every year, so the number of businesses with one person working is relatively high.
In figures, the number of travel agencies in 2024 looked as follows(CBS):
With this online training from Brookz you are optimally prepared to largely sell your business yourself: 25 Powerpoint videos, a comprehensive valuation report, legal model contracts, handy templates, checklists and expert support. Plus 50% discount on listing your business on Brookz!
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A number of trends and developments will inevitably cause changes over the next few years, but also offer travel agencies many growth and acquisition opportunities:
Not to Bali, the US or Cape Town this year, but nice and close to home. It seems to be an increasingly common picture, these close-to-staycations. We are massively trying to reduce our carbon footprint and are open to cultural vacations within the borders of Europe or even our own country.
Specific needs lead to more customized vacations. Special experiences, sustainable travel, vegan food and where possible travel by foot, bike, car or train. Consumers are becoming more conscious, but at the same time more demanding. A complete transformation for travel companies, since the standard has always been all-inclusive and luxury.
