THE IRISH economy was booming in 2006 when Zara Stassin set up her specialist travel agency, Zara’s Planet but, even so, she can reel off without hesitation all the factors that made it a difficult and expensive time to start a business.
“I knew there was a gap in the market and I knew there was plenty of money around,” recalls Stassin (35), who had previously been an executive director of CNG Travel Group, “but there were certainly problems I wouldn’t encounter today.
“Staff costs, for instance, were ridiculous and staff retention was a problem. Suppliers didn’t need us because they had so much other business. And, in my experience, the banks weren’t any less risk-averse then than they are now.
“The irony of it is that I couldn’t wait to set up the business then – whereas I probably wouldn’t have set it up if the market had been declining, as it is now.”
Zara’s Planet has spent the past three years carving out a profitable niche for itself in the tailor-made holidays market, with a turnover last year of €900,000 – confidently expected to double to about €1.8 million this year, despite the recession.
It specialises in adventure holidays of the type that good economic times make people feel they deserve and can afford – such as kayaking in the ice caves of southern Patagonia, climbing Kilimanjaro, horse riding on a 6,000-acre cattle ranch in Argentina, or trekking through the Himalayas to Everest base camp.
“The types of holiday people buy seem to evolve with the economy,” she observes.
“When you haven’t much money, you look for the all-in package. When you become well-off, you want straightforward five-star luxury. And when you get used to that, you want something different, more exotic. Perhaps you want to get away from it all. It’s human nature.”
If you’re looking for a €299 all-in package to Ibiza, Zara’s Planet is not the planet for you. Their holidays typically cost in the region of €2,000–€4,000.
The vast majority of customers are contacted by phone to discuss their requirements, rather than simply signing up on the internet. And there’s fitness and acclimatisation advice, and even details of local walking clubs, where necessary.
“Yes, it’s more labour-intensive and time-consuming, but it’s also higher margin. The commission paid by the big operators on a €299 sun holiday is usually around eight or 10 per cent, which is, say, €29, so you can’t afford to make a phone call to the customer! Our gross margin is 15 to 20 per cent on a much bigger ticket item.”
The recession has been having an impact since the start of this year. “The number of bookings is up, but the average booking value is down. People are deciding to do something cheaper in Europe this year, and hold off on Zambia until next year.
“The numbers are up and the margins are still there, so it’s a matter of balancing your cost base and your revenue. As a small business, it’s all about micro-managing everything on a week-to-week basis, and reacting quickly – something bigger businesses find harder.
“So while it sounds very bullish to say we’re still going to double our business this year, I believe we will. It takes a lot of time, effort and marketing to start a business, and generally you only start to reap the rewards in terms of momentum in the third or fourth year. We’re starting to see that now, with a lot of repeat business.”
They have also recently done a deal with UK company, Chameleon Worldwide, which will expand the range of their holidays.
“There’s a limit to the number of holidays we can have on our books because we’re in a small market. So it made sense to partner with a company that has a wide range of products, from wildlife and diving to walking and dolphin watching. It’s really going to widen our appeal.”
Name:Zara Stassin.
Company:Zara's Planet
www.zarasplanet.ie
Age:35
Background:Born in Scotland, she left school in 1989 at the age of 15 with the dream of becoming a professional show-jumper. Joined Finbarr Power in 1999 to set up CNG Travel, which went public on the London Stock Exchange's AIM in 2004. Moved to New York to manage CNG acquisition Tzell, the fifth-largest travel agency in the city with a turnover of $500 million.
Set up Zara's Planet in 2006, with turnover rising to €900,000 by 2008. Opened an office at Great Outdoors, Chatham Street. Teamed with Chameleon Worldwide to expand 2009 range.
Challenges:Doubling turnover from €900,000 in 2008 to a projected €1.8 million this year. "We've broadened our range of holidays by partnering with Chameleon Worldwide, and although the average booking value is down, the number of bookings is up. So we're bullish."
Inspired by:Gillian Bowler, founder of Budget Travel, "because of her fantastic skills as a marketeer", and her former boss, Finbarr Power, founder and former chief executive of CNG Travel, a finalist for Irish Entrepreneur of the Year in 2006.
Most important thing learned: Always watch the finances. "No matter what size of business you have, the numbers are always the key. It's a matter of good housekeeping and constant diligence."
