Uneven demand.
WHAT THE PATTERN IS
Concentrated booking and travel periods, with quiet months between.
WHAT DRIVES IT
Holiday periods Religious seasons School calendars Weather at destinations Business cycles
WHAT TO ESTABLISH
Your own pattern, from records.
WHAT THE CASH PATTERN IS
Deposits received well before travel Supplier payments due before travel Balance received close to travel Commission received after travel, in some cases
WHY THAT MATTERS
Money held early is not yours, and revenue is recognised late.
WHAT TO TRACK SEPARATELY
Money held for future travel Money actually earned
WHY
Confusing them is how travel businesses fail.
WHAT TO ESTABLISH
Reserves covering quiet periods.
WHAT TO AVOID
Funding quiet months from deposits.
WHAT TO PLAN
Costs that can be reduced in quiet periods.
WHAT TO CONSIDER
Business with different seasonality: corporate travel, domestic travel, inbound work.
WHY
It smooths the pattern.
WHAT TO PREPARE FOR PEAKS
Staffing Supplier allocations secured in advance Systems that handle the volume
WHY ALLOCATIONS IN ADVANCE
Capacity disappears in peak periods and prices rise.
WHAT TO FORECAST
Cash, by month, across the year.
WHAT TO IDENTIFY
The lowest point.
WHAT TO ARRANGE BEFORE IT
Funding, or reduced commitment.
