Acquiring a Travel Agency: Jared Benof's Journey from Twitter to Destination Weddings

In a world where traditional travel agencies seem to be fading into obscurity, Jared Benof's story of acquiring his parents' travel agency specializing in destination weddings offers a refreshing perspective on the industry's evolution and potential. This article delves into Jared's journey from working at Twitter to taking over a thriving niche travel business, exploring the challenges and opportunities in the modern travel landscape.

From Tech to Travel: Jared's Entrepreneurial Journey

Jared Benof's path to entrepreneurship was shaped by his upbringing in an entrepreneurial household. After a stint in public service and nearly a decade at Twitter, Jared found himself drawn to the idea of acquiring a business rather than starting one from scratch.

"I realized my skill set is more in growing things and building, taking it from one to 100," Jared explains. "I'm not a zero to one guy; it's just not my strengths."

Inspired by stories of business acquisitions shared on social media, particularly within the SMB Twitter community, Jared began exploring opportunities. Little did he know that the perfect business was right in front of him - his parents' travel agency.

The Evolution of Travel Agencies in the Digital Age

While many might assume that travel agencies are a dying breed in the age of online booking platforms, Jared's story reveals a different reality. The key lies in specialization and providing value that can't be easily replicated by automated systems.

Jared's parents' agency, Vacationeez, focuses on destination weddings, primarily in Mexico and the Caribbean. This niche allows them to offer expertise and personalized service that goes beyond simply booking flights and hotels.

"It's really, really hard to plan a destination wedding," Jared notes. "It's impossible, let's be honest, through ChatGPT. There's just not a way right now, and maybe in five years, I come back and go, 'Oh crap, I was so wrong about this,' but I really don't see a way in which you can plan this through an AI tool right now."

The Business Model: High-Value, Low-Overhead

Vacationeez's business model is particularly attractive due to its high margins and low overhead. Here's a breakdown of the numbers:

• Annual revenue: Approximately $8 million in gross bookings
• Net revenue (agency's cut): About 15% or $1.3 million
• Seller's Discretionary Earnings (SDE): Approximately $950,000

The business operates with a team of about 10 people, most of whom work remotely. This structure allows for flexibility and efficiency while keeping costs low.

Acquiring the Family Business: Challenges and Opportunities

Buying a business from family members presents unique challenges and opportunities. For Jared, the process was smoother in some ways due to his familiarity with the business and trust in the sellers (his parents). However, it also required careful consideration to ensure fairness and maintain professional boundaries.

Key aspects of the acquisition included:

• Purchase price: 2x SDE, which Jared acknowledges was a favorable multiple
• Financing: A combination of SBA loan, seller note, and equity
• Due diligence: Simplified due to Jared's insider knowledge, but still requiring careful consideration

"I wanted to go in as open-minded as possible to understand the pros and cons of this business and what potential risks, you know, if we go from 100 groups a year to 30, what does that look like? If we go from 100 to 200, what does that look like?" Jared explains.

Growth Strategies and Future Outlook

With the acquisition complete, Jared is now focused on growing the business. His strategies include:

1. Optimizing staffing: Exploring global talent to increase efficiency
2. Expanding marketing efforts: Leveraging paid advertising and partnerships
3. Improving customer retention: Implementing email marketing to past clients
4. Enhancing online presence: Continuing to build on the success of the YouTube channel started by his father

Jared sees potential to grow the business to $5 million in top-line revenue, though he's not aiming for rapid expansion. "I'm not envisioning hundreds of people on our team," he says. "I think if we can get to five million in top-line, that would be a great place to be."

Lessons for Aspiring Acquirers

Jared's experience offers valuable insights for those considering acquiring a business, especially a family-owned one:

1. Look for businesses with a strong niche and value proposition
2. Consider industries that may be overlooked but have potential for innovation
3. Leverage personal knowledge and connections, but remain objective
4. Understand the importance of seller trust and alignment
5. Be prepared to balance tradition with innovation when taking over a family business

The Future of Travel Agencies

While the travel industry has undoubtedly changed, Jared's story demonstrates that there's still a place for specialized, high-touch travel services. As he puts it, "Find the business that can't be Amazoned away, that can't be commoditized."

The key to success in this evolving landscape appears to be:

• Focusing on complex, high-value trips (like destination weddings)
• Providing expertise and personalized service that can't be easily replicated online
• Leveraging technology and marketing strategies to reach and retain customers
• Adapting to changing consumer preferences and travel trends

Conclusion

Jared Benof's journey from the tech world to owning a niche travel agency offers a compelling case study in entrepreneurship through acquisition. It challenges preconceptions about the viability of travel agencies in the digital age and highlights the opportunities that still exist in this evolving industry.

For those considering a similar path, Jared's story underscores the importance of finding the right niche, leveraging personal strengths and connections, and being prepared to innovate while respecting the foundations laid by previous generations.

As the travel industry continues to evolve, businesses like Vacationeez demonstrate that there's still room for personalized, high-touch services in a world increasingly dominated by digital platforms. The key lies in providing value that can't be easily replicated by algorithms or chatbots - the human touch that makes complex travel experiences not just possible, but memorable.

Article created from: https://www.youtube.com/watch?v=r1mqXwJ1bIc