I often drive by the sign in the photo below and think to myself: ‘Can you really be good at both?’ Maybe between January and April the thought of booking travel and having your income taxes done at the same place is attractive.
I don’t know the whole story with this particular business so am not in the best position to be overly critical, I’m just going by the sign…a sign I have some concerns with.
There are a couple of reasons why this approach could be harmful:
- Saturated markets.  Both travel and income tax preparation are extremely competitive industries where price is often times a determining factor.  Can you get me a better price on that flight? Who has the lowest tax preparation rates?  By entering two saturated markets the pressure from competition doubles, especially if there isn’t any clear differentiation.
- Perception of weakness. Though it is possible to be a master of all trades the occurence of such a business is rare and the perception of weakness among generalists certainly exists.
- Difficulty attracting talent. The best up-and-coming travel agents are likely to be more interested in working at a leading travel agency with other travel professionals. Â Working in an environment offering unrelated services may not be the most appealing scenario.
- Focus on a specific audience need. The group travel industry is massive. Â Schools, religious organizations, and sports teams travel often and value the advantage of having an agent handle the booking details. Â By becoming a go-to source for groups looking to travel this agency would differentiate itself from competitors while narrowing (and clarifying) who they need to reach in terms of decision makers.
- Focus on a specific destination. I’ve read that five of the top ten travel destinations among Canadians are in Europe.  Since London (ON) is often used as a test market I’m making an assumption that these figures are accurate here too.  Maybe our agency could become an expert in European travel.
Each of the points above includes the word ‘focus.’  It’s much easier to answer the question ‘why should I choose your company?’ when you’re able to start your response by mentioning a specific focus.  It won’t resonate with everyone but it will resonate very well those who have a need in the area you focus on.  The percentage of potential clients who like the response ‘we do travel and income taxes’ is likely too small to make a positive impact.
It’s possible that the business I’m referring to in this post is successful, it’s just not the route I would take.
“Perception of weakness. Though it is possible to be a master of all trades the occurence of such a business is rare and the perception of weakness among generalists certainly exists.”
That’s a great statement. It had an impact on me as I was considering unrelated business options. Can I quote you on that one? Also thanks for the informative presentation on Social Media Marketing at the “Untangling the Web” seminar.
Tim
Tim, I’m glad you enjoyed both the post and my presentation at Untangling the Web. You’re more than welcome to quote me.