Advantage aims to double Managed Services turnover
Advantage is aiming to more than double the turnover of its Managed Services arm to £100 million as part of its plan to expand the members-only association over the next five years.
Managing director Julia Lo Bue-Said told the annual conference in Bodrum this weekend that it was on target to delivery £500,000 of incremental earnings to members this year, but she said the membership needed to grow.
"Critical mass is important," she said. "It helps everyone."
Bue-Said expects the growth to come principally from AMS, mainly from more agents who are already members of Advantage signing up.
It has forecast turnover of the existing 12 AMS branches will reach £43 million this year following a 13% increase in sales and a 3.5% rise in average booking values.
Bue-Said told members AMS was a ‘really viable business model’ which allowed them to focus on running their businesses by taking care of all the backoffic functions.
"It brings out entrepreneurial skills when you don’t have to worry about all the admin," she said.
Former TUI agents Helen Johnson and Philippa Wilcox told the conference they set up Polka Dot Travel in Shropshire with assistance from AMS. Their first shop was directly across the road from the Thomson branch Wilcox was managing when she decided to join her Johnson in launching their own business, which now has three branches.
Bue-Said told members that AMS was also a good option for those business owners looking for an exit strategy. "In 10 years time, around 10% of our members will reach retirement ag, but we know a lot of you have not thought about exit strategies. We can help."
By taking care of bonding and paperwork, AMS make it easier for a new owner to take over an existing business, she said.
"We have a mature membership, and if someone is looking to exit the business, it could make it easier to sell if they join AMS."
Advantage is also looking to grow its Travel Gateway, which offers members a one-stop shop for tailormade bookings, earning them an average commission of £750 per booking. Its turnover will reach £2.5 million this year following a 15% increase in sales.
"It is small, we need to grow, we are aware of that," Bue-Said told the conference, "but we need members to use it so we can improve it."
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
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