Can you tell me a bit about EFR Travel and how you came to set it up in 2002?
EFR Travel is a travel company specialising in corporate leisure travel. Within this we handle corporate travel accounts, organise private jets and specialise in selling packages off our internet sites incorporating Dubai, Maldives, Mauritius, Oman, Sri Lanka and Europe, and we will soon offer worldwide golf holidays. I set the company up in 2002, as I had to leave my position with my previous employer.
How did you finance starting up the business?
I borrowed £75.000 to start the company.
You offer a very high-end service. Who is your target audience?
We have no specific target audience but it seems that we manage and arrange the middle to top end of the market rather than the lower end.
What made you set up the private air charter division in 2006? How has this benefited the business?
The reason I set up the private jet business was due to the fact that a couple of our clients were starting to charter the jets. As this was happening on a more frequent basis I decided it was time to start putting a product together that would allow us to broker our own charters rather than go through a middleman (broker). Therefore we were able to maintain a margin but at the same time sell it cheaper to the client. We were also able to get back to clients much quicker as we were not reliant on others to do the job for us.
How else has the business developed since you first started?
The corporate business has grown over the years but the internet sites have added additional revenue streams to the business. The internet is probably the most powerful tool one will ever use in business. You are able to market a product at very little cost and reach people that under normal circumstances you would never be able to. If you are good at the marketing side then business should come in if economic conditions allow.
The travel industry is notoriously cyclical and many operators are struggling at present. How has this affected you so far?
At the moment we've not been affected although this may obviously change. We are not looking for volume but quality. So far this year we are holding our own but are moving with caution as we enter the next six to nine months. As we have a wide spread of products and do not just rely on one revenue stream, we stand a good chance of keeping going at a reasonable level through this period of caution.
Can you give me an idea of your turnover and also how many people you currently employ?
In our last financial year we have reached a turnover in excess of £11,000,000. The business carries in excess of 6000 passengers per year.
How big do you think the company could grow and what are your plans going forward?
For our next expansion, we are setting up a golf division selling golf holidays worldwide. We hope in year one to handle 2,000
additional passengers. We are still looking for growth although this may not be the year to achieve that. I want to keep the company growing over the next 10 years and then look at a possible floatation if all plans move forward in the right direction.
What was your background prior to starting EFR Travel?
I have worked in travel for 25 years. Many years ago I ran my own business but unfortunately it was not successful as I was too inexperienced to run the business. I then learned more of the trade through working with other people and decided to take the plunge again. When you are forced to do something you never assess the risk as you would if you had time to think about it. I had faith in my ability, a great wealth of knowledge of the travel business and the client base to be able to work the business.
It must have been a big risk to start a travel company in the wake of September 11. What gave you the confidence to leave a fairly secure job as a partner and start up your own business?
Only when things went wrong with the other company did I think about opening a new business and I started immediately once I had resigned my position.
What did you find most challenging when setting up on your own?
The most challenging part of setting up the business was applying to get the relevant licences and obtaining the credit card facilities. Everything else was plain sailing and this remains the same today.
What advice would you have for entrepreneurs thinking of starting up in the current economic climate?
Entrepreneurs starting today need to be confident in their ability, offer something unique in what they are doing to separate them from competitors, ensure steady cashflow and put the right people in the accounts department once they start growing. They should also ensure the service to clients is the best and avoid taking unnecessary risks before the business comes in.
So far you've adopted a fairly cautious approach to expanding, ensuring the business is self-funding. Do you see that as a key part of your growth strategy?
I will remain cautious, especially in the climate we find ourselves, but still look for growth providing we can afford to invest within the budgets we set ourselves.
What are your own plans for the future? Would you be tempted to open another business?
I am going to stick to travel as it's what I know and am good at.
