Milica Obradovic’s plunge into business ownership was a “spur-of-the-moment decision” she made when the manager at a travel agency where she worked for 15 years tipped her “over the edge.”
“I said, ‘I’m quitting, and this is my last day,’ and then went home and spent the weekend worrying because I didn’t know what to do,” Obradovic said. “It was very scary.”
Before she could figure out her next move, her cellphone was ringing—her old customers were looking for her.
“I started booking their flights from home,” Obradovic said. “That was January, and in April, I had to rent an office. A month later, I hired my first employee.”
Trip Designs Inc. in Newport Beach has been growing steadily since 2007, she said, increasing revenue 20% every year. It closed 2013 with $5.4 million in sales, placing it in the No. 83 spot on the Business Journal’s list of the largest women-owned businesses (see related story on page 1; list starting on page 16).
Knows Her Clients
Obradovic, who emigrated from Serbia in 1991, credits her success to the customer service she and her four employees provide mainly to a diaspora client base traveling to her former homeland, Croatia, Montenegro or Bosnia.
Other travelers using her services, who are not from the Balkan region, are likely on their way there, she said.
“We sell group travel for water polo teams, soccer teams, synchronized swimmers, that go and train or play there,” Obradovic said. “They come to us because we are familiar with the region that we sell. We know where the deals are and what the best routes are. We also help them with local customs and tell them what the expectations are.”
The personal touch is working—repeat business comprises 80% of the agency’s revenue, Obradovic said.
“We make sure we know our customers. If a family is traveling, we may tell them, ‘This is not the right itinerary for you; you have too many layovers. This airline is $50 more, but they have more to offer for children.’ If it’s an older person traveling, we may suggest, ‘Don’t go through London Heathrow Airport. It’s a huge airport; it’s a struggle.’
So we listen to our customers, to what they’re looking for, and that’s what we offer them. Through the years, we develop relationships with them. So I know, for example, that Selma’s mom will not fly with certain airlines, no matter what,” she said, referring to one of her regular clients. “So when Selma calls to book her mom’s ticket, I know what to offer.”
The travelers also flock to Trip Designs because its prices are competitive with online booking companies, such as Expedia Inc. or Kayak.com, or lower, Obradovic said.
She gets deals from regional airlines that often can shave 10% to 40% off published airfares.
“The advantage to the airlines is that they get volume from us, and we do a lot of work for them,” she said. “People don’t call them with little questions—can you change my seat? How many bags can I bring? What does it cost?—all that is on airlines’ websites, but people just want a quick answer. They don’t want to look for themselves. They call us, and we give them those answers.”
The agency also books trips to other destinations in Europe, such as Turkey, and river cruises in Russia and other spots in Europe, Obradovic said.
“We have contacts with suppliers that do that, so we can get better deals. We offer customized itineraries, local English-speaking guides, insights into the culture and customs, places to see and things to do, and knowledge of the region that is just not available online.”
There are challenges, despite her drive to succeed.
Competitive Landscape
Smaller agencies like Trip Designs are struggling to remain competitive, she said, as clients expect similar, instantaneous results to those they can get while shopping for travel deals online.
“When customers call us for something, they want it now, so we are under a lot of pressure to give you the best possible route and price in the least amount of time,” she said. “People also expect us to be available 24/7 like Expedia is. They call at all hours, on weekends.”
To simply copy what the big guys are doing isn’t feasible.
The technology needed to power a “user-friendly interface” for online ordering “is extremely expensive,” Obradovic said, “and is just not available to your mom and pop travel agencies.”
On the flip side, she said Expedia and other online booking sites don’t have access to the same deals Trip Designs has through regional airlines.
Obradovic said that being her own boss has its perks—she has a great group of employees she can rely on, and when business is slow, she’s not obligated to stay at the office and can just take a day off.
“At the same time, if it’s really busy, I
have to stay. I can’t just clock out,” she said. “You win some, and you lose some in that
respect.”
