Question :
we have a holiday accomodation business . It is very seasonal most business is over summer. It is domestic market so no issues with the international tourist trade . we are looking to grow our market . also looking to “pivot” and add a cleaning service to other property owners who dont use us for booking their houses. we would like also to look to expand the business into another region . Alternatively we could sell the business and how would we value the business for sale ?

Question submitted 23/09/20 @ 09:56am
Industry: Tourism
  • Up

    Hi there,
    Sounds like you have a business that is well positioned in the current market and the idea of a cleaning service does provide some diversification as well as additional turnover, not to mention spreading your risk.
    My opinion is that it is not a great time to sell tourism or visitor related businesses at the moment and that you might find that there is plenty of opportunity in the current state of the industry for expansion and growth as you have suggested.
    Value of a business is linked to a number of factors such as the future earning capacity of the business, its trading environment, the market view in the medium term etc. I would recommend that you dedicate time and resource on some sound advice in this area before taking the decision to sell.
    Hope this is of assistance and all the best.


    Hi there,
    I would tend to agree with Gert regarding selling your business right now, but there will be other experts on manaaki who can advise on valuing your business if you choose that route. I think it is unlikely that the world will be travelling normally again until the later part of next year meaning kiwis will be stuck at home again next winter so ramping up marketing and thinking about pricing to grow demand domestically for next off season might work. Think about staying connected with good customers over the next 6 months and offer them incentives to repeat book during the off season.
    The cleaning service sounds like a good idea as well if you can get the word out.. and you are lucky that you are not reliant on internationals so I would think you should have a very busy summer and leverage that through into next off season.
    Stay close to your local region tourism office and they are doing a lot of regional marketing to the domestic market at present and for the next year at least,
    If you have any more information like where you are operating etc it dies help us provide advice.
    Best of luck with it all. Jason

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