How Does a Travel Agency File Chapter 11 Bankruptcy?

traveling agent filing bankruptcy chapter 11

 

The coronavirus from China has wreaked havoc around the world, and no industry was as hard hit as the travel industry. Canceled flights and cruises were compounded by resort closures and people staying home for fear of their lives. This has caused travel agencies to see revenue collapse. Yet travel agencies have very low overhead expenses, so they have the potential to bounce back when things reopen. This means they could survive if they can refinance or shed debts, while liquidation bankruptcy isn’t of much benefit. So how does a travel agency file Chapter 11 bankruptcy?

Submit a Bankruptcy Petition

A chapter 11 bankruptcy can be filed by the debtor. It can also be filed by creditors in certain circumstances. They would do this to force the business to continue to operate and, ideally, meet its legal obligations.

Any business can file for Chapter 11 unless they have had a prior petition dismissed because they didn’t appear in court or failed to comply with prior orders from the courts. If you’re a sole proprietor, you may be required to seek credit counseling from an approved credit counseling agency.

If the courts think you cannot successfully reorganize the business, they may reject the petition. Then your petition is converted to a Chapter 7 liquidation.

chapter 11 bankruptcy for a travel agency

You Continue Business Operations

In Chapter 11 bankruptcy, you continue to operate the business under supervision of the courts, assuming a short list of exceptions isn’t met. For example, if your creditors file a petition claiming fraud, theft or gross incompetence, they may ask the courts to appoint someone else to run the business. In every case, you’re allowed to continue operating the business, though you’ll run major decisions by the court-appointed trustee.

The court will have to approve the selling of assets unless you’re selling them as part of ordinary running of the business. This means you’ll need permission to sell a company car but not little trinkets in the front office. You’ll need court permission to enter or break the lease, though renegotiating a lease can significantly lower your overhead expenses. You must have court approval to enter a new contract or modify existing licensing and vendor contracts. You’ll have to have court permission to shut down the business, too.

Creditors can support or oppose actions submitted to the court for approval. Fortunately, they really only have a yeah or nay decision when you submit the initial Chapter 11 plan. And they’re not likely to complain if you ask for permission to break an expensive lease so you can move to a smaller, cheaper office or break a union contract and lay off 20 people to lower costs.

loan restructuring for a travel agent

Submit Regular Reports and Pay Your Bills

Under a Chapter 11 plan, you’ll submit financial reports that tell the court and your creditors how much money you bring in and how much you’re paying out. This allows everyone to know how much money is available to pay your debts.

Furthermore, you’re obligated to pay your creditors. The creditors may only be paid a fraction of what they are owed, but the bankruptcy plan will distribute the money paid to each creditor in what is considered a fair way.

Secured creditors must be paid at least what the item secured by their loan is worth. This category includes liens and mortgages. Fail to make payments, and they can go back to court to get permission to seize the underlying asset.

Unsecured creditors are paid in accordance with the bankruptcy plan. They are probably going to be paid much less than they are owed, but this is why unsecured debt has a higher interest rate.

Complete the Bankruptcy Plan

Studies suggest that less than fifteen percent of Chapter 11 bankruptcy plans result in a functional business emerging from bankruptcy. Then why do businesses do it? Filing for bankruptcy automatically stays or stops collection activities like foreclosure and judgements. This may give you breathing room to decide what you’re going to do next. That next step may include the orderly shutdown of your business and dividing up the proceeds between your creditors. In fact, that may be part of a Chapter 11 bankruptcy plan approved by the creditors. By ensuring clients make it home and collecting revenue while winding things down, they get more money than if you just closed your doors.

What do You do if You Get Locked Out of Your West Palm Beach Travel Agency

 

Most travel agents never consider the expertise of an emergency locksmith West Palm Beach unless they need help urgently. However, misfortunes don’t come after ringing a warning bell. Rather, they come unexpectedly and hit you in battalions. What if a storm hits and you get stuck out of your agency due to a locked door? Should you follow a DIY approach to fix the issue or call a locksmith? Let’s weigh the options.

Why hire a reliable emergency locksmith in West Palm Beach?

Most people try to open the locked door on their own. They hit the lock with a hammer to get inside. While that resolves the problem temporarily, you unintentionally invite door breakers in your absence. When you’re away, intruders may try to get inside, thanks to the compromised security of your door. It’s always advised to rely on an emergency locksmith. Here are the important perks of hiring an experienced locking expert.

Saves time

Many folks delve into DIY activities. The truth is the DIY approach has become a trend today. From homeowners to business professionals, everyone undertakes many projects on their own. However, certain DIY chores take adequate time. In the business world, time means money. Even if you manage to open the locked door, you may lose substantial time.

By that time, you could lose a good number of customers, especially during the peak season. Calling a proficient emergency locksmith to address the issue is a better bet. An expert locking professional will open the door within minutes. Without wasting much time, you can continue with your Florida travel agency business and entertain clients.

locksmith in West Palm Beach

No damages or injuries

As a layman, you may lack the knowledge to open a jammed door. If you attempt to break the lock, you may damage the door and other items. You may even injure yourself and others in the process. The try to be a DIY enthusiast will quickly turn into a more costly proposition.

When you call an emergency locking professional, you don’t have to worry about such issues. A reliable expert will fix the issue without causing any damages. If any structural damages and accidents occur, the locksmith will make the reimbursement through his insurance coverage.

Affordability

Most travel agents in West Palm Beach think that a locksmith’s services will cost them dearly. However, many reputed locking experts tender their services at a minimal charge. If you examine the perks you gain with the cost, you should conclude that hiring an expert is a cost-effective choice.

who to call when locked out of travel agency

Finishing thoughts

Getting stuck outside your travel agency is the last thing that you may want to have in your mind. However, there are times when your agency’s door might get jammed. Calling a reliable emergency locksmith West Palm Beach is a better idea during such situations. In return for a small charge, the expert will quickly open the door quickly and let you carry out your business. Just make sure you call an emergency locksmith West Palm Beach to make the most out of his services.

 

Why a Travel Agent Would Need an SEO Training Course

seo expert

 

Search engine optimization is not just something you need to learn if you’re working in marketing or sales, though travel agencies should see their job as including these things. Let’s learn why a travel agent would need an SEO training course.

Local SEO Matters as Much as Conventional SEO

Travel agents need to use local or location based search engine optimization far more than the average business. When you’re posting on social media about a great vacation package, you need to include hash tags and search terms related to the destination. This is on top of the local SEO required to attract local clients to your service-oriented business.

why travel agents need seo training

You Have to Differentiate Your Business from the Competition

The travel industry is diverse. You’re competing against airlines, cruise lines, hotels, resorts, and travel bloggers for traffic. This is why you need to be able to do detailed analysis to find out what key search terms are used by your target audience, whether it is college kids planning a Spring Break trip or retirees ready for the trip of a lifetime. You can’t risk your ads and content being outranked by RVers with better social media branding or travel bloggers who make money from paid endorsements.

Furthermore, you want to stand out relative to the competition based on your distinguishing characteristics. It doesn’t matter if you offer unique luxury trips or budget travel. Ensure that your key characteristics are prominent in your SEO so that you capture the right audience. Travelers who want to travel in luxury who land on a budget travel service homepage will bounce away, hurting your reputation with search engines.

travel agent SEO marketing

SEO Is Essential in Visual Marketing

Visual marketing engages the audience, because humans are a visual species. Here is the high resolution picture of the view from our resort. Here’s the amazing cliff diving, scuba diving and fishing available on our premium package. This is the theme park within walking distance of our luxurious hotel rooms. You’re posting pictures. However, it is has tags and keywords included in the description of the post and its title that will bring people to your visual marketing pieces. If you rely on one or two place related hash tags, your visual marketing will literally be lost in a sea of images.

It Is Cost-Effective

Online ads are expensive. Paid placement of links can be expensive, and it isn’t always effective. Upping your SEO game is one of the most cost-effective marketing solutions available. If you attend a SEO training course, you’ll be able to improve the SEO of everything from new marketing content to social media posts to your homepage.

Furthermore, you can go back and improve existing content based on what you’ve learned. Tweak a title. Change the first few sentences to better impress readers and increase your search engine results page rankings. Or learn how your content generation needs to change so that you’re not downgraded because of a spam penalty. This can happen when you stuff the content with too many keywords, especially if it interferes with the readability of the content. Learn how to add related keywords that help search engines show your article in relation to people planning a trip to Athens, Georgia instead of Athens, Greece.