The onset of the pandemic was quite harsh on the tourism industry- foreign tourist arrivals dropped sharply after the onset of the pandemic last year. Even domestic tourism stood still due to the lockdown and panic. Today, a business loan would mean different opportunities for travel agencies than what it would have in the pre-pandemic world.
Travel businesses have specific requirements which they fulfill by getting different types of business loans. Commonly offered modes of finance include term loans, line of credit, invoice discounting, and merchant cash advance. For a business loan, the travel agency has to check its business loan eligibility. Besides, they can check the business loan EMI calculator to find out the cost of borrowing.
If you own a travel agency and way to avail yourself a business loan, here’s how you can use it.
1. Invest in office infrastructure –
Upgraded infrastructure is crucial for the success of a business. You can use your loan amount to renovate and upgrade your office while keeping operational efficiency as the goal. With the growing technology finding its place everywhere, upgrade your IT setup, computers, and printers. Specialized software may also be required.
2. For online booking –
In the present-day scenario, clients demand custom-made holiday planning, including the online booking of flight tickets, hotels, entertainment package, etc. In the peak seasons, you need to make a bulk booking which may require working capital. Upgrading your online booking infrastructure can help make this process easier.
3. Working capital needs to meet lean periods –
Finance is also required to meet the operational expenses of running the business. Income flow gets affected during the off-season and during unexpected times, as seen over the last year. With the help of business loans, you can increase your working capital and fulfill staff salary and overhead needs. While availing of a loan, it is important to assess if the business loan EMI is within your budget.
4. Marketing and digital presence –
Online marketing helps you to reach and engage your target audience. You can create your website and give an insight into the services you provide. Upload photos of the destinations and the hotels or resorts with which you have tie-ups. Mark your presence on social media with attractive deals and schemes. Encourage your valuable customers to write positive reviews on your website. At the same time, do not neglect the offline marketing procedures. Spend a sum effectively for brochures, hoardings, business cards, etc. An affordable business loan can fuel all these exercises.
Travel agencies can capitalize on the lower business loan interest rates despite a dip in tourism and use the fund effectively. If it is used to strengthen the business now, it can help them once the industry revives.