ouldn't it be nice if just wishing on
a star -- or sprinkling some pixie dust -- could transport you
straight to Walt Disney World? But since it can't, maybe clicking
on a mouse is the next best solution.
That's Pete Werner's solution, anyway. He and partner John Magi
were able to transform their love for Disney into Dreams Unlimited
Travel, a profitable niche travel agency.
The twist is that they sell Disney vacations only on the Internet
-- and they're wearing big Goofy smiles in the face of failing
e-commerce businesses.
"[The Web] is what we know," Werner said. "If it's done right,
the Web can be a very lucrative place to do business."
According to Vicki Johnson, manager of Disney Travel Industry
Sales and Marketing, Dreams Unlimited Travel is one of Disney's
top-producing single-site travel agencies.
"There may be a half-dozen agencies out there that focus on
Disney, but they tend to be more brick- and-mortar," said Johnson.
"There are two other [Web-only agencies], but I don't believe they
are as connected as Dreams is. I don't think they have the
knowledge base, and their sites aren't as in-depth."
"It's an amazing story, considering that they were only
conceived a year ago," she added.
Although Werner, Dreams' chief executive officer, declined to
reveal this year's earnings, he said last year's profit level
outdid their rosiest projections by about 25%.
"Our goal for next year is $10 million in gross revenue," he
said.
And Werner has no plans to open a storefront agency. Not yet,
anyway.
"We rule nothing out," he clarified. "But we're a very different
model than Expedia."
One of the secrets to Dreams' success is the popularity of its
unofficial Disney information site, The Dis, at www.wdwinfo.com, which
Werner created as a hobby in June 1997. (Werner has been to Disney
World "too many times to count," and he recently relocated from New
Jersey to the Orlando area.)
"I was basically trying to hone my Internet skills," Werner
said. "Our first month, we were excited to be getting 80 people a
day."
Despite the fact that Werner didn't actively advertise the site,
people found it through search engines, other Web sites and word of
mouth. Web surfers soon were looking up resort information, maps,
priority seating arrangements and tour arrangements on the site,
and a virtual community of loyal Disney fans were trading
information and tips on the site's bulletin boards.
Werner soon identified a money-making opportunity, and Dreams
Unlimited Travel was set up in November 1999 with Werner and Magi's
own money.
Now, banner ads and other links market Dreams Unlimited Travel
on The Dis, so when visitors to The Dis get inspired to book a
Disney vacation, they can easily link to Dreams.
In addition to Dreams and The Dis, Werner also operates
unofficial sites to Universal Studios Florida and Sea World, and a
British version of the Disney World site.
Werner said the sites -- including Dreams Unlimited -- get about
15,000 to 20,000 unique visits per day.
The sites link to Dreams Unlimited and DreamsRes, a new,
self-booking tool that Magi created. After he noticed that Dreams
agents were having trouble finding available hotels for customers,
Werner made deals with nearby hotels to set aside blocks of
inventory for DreamsRes. They also offer discounts on park passes
through DreamsRes.
The site's reputation was enough to convince the hotels that
their inventory would sell well on DreamsRes, Werner said.
They'd been so successful that the Dreams team decided to take a
monthlong self-guided, self-financed trip to Walt Disney World.
Werner and his employees stayed at different resorts, cruised on
the Disney Magic, interviewed cast members, reviewed restaurants
and gathered as much Disney information as they could.
Then they created a brand new Web site, www.Dreamstour.com,
with links to Dreams Unlimited Travel, of course.
While it might sound like a dream vacation for some, Werner said
it was a month of intense work. They only spent a night at his
favorite resort (Polynesian) and barely got into the parks to see
his favorite ride (Pirates of the Caribbean).
Instead, their time was spent inspecting hotel bathrooms for
grime, testing the beds for bounce, editing massive amounts of
video, strategizing and schmoozing with Mickey and Minnie at
character breakfasts.
Werner said he and Magi were so worn out after their 30 days at
Disney that they needed a vacation. They booked another seven-day
cruise on the Disney Magic. (For more on their 30 days at Disney,
click here.)
-- Rebecca Tobin
Strategizing
Should I deduct the
entire cost of my computer in one year, or should I depreciate
it?
A: Good question. A few years ago the answer
was always normal depreciation over five years. With the lower cost
of computers and the speed by which they become obsolete, the
possibilities have changed.
If your
computer was relatively inexpensive, you'd probably be better off
deducting the entire cost in one year -- this deduction is provided
by Sec. 179 of the tax code.
If you spent a tidy sum for a new system and expect to use it
for several years, depreciation would be your best bet.
Discuss this strategy with your accountant or certified public
accountant to make sure you're choosing the right method for your
situation.
Q:I get a big refund from the IRS every
year. That's good news right?
A: Well, it beats having to pay the IRS every
year because you've come up short. But in reality, you're not
claiming enough exemptions or taking the deductions you're entitled
to, so the IRS gives you back some of the money you've paid in.
In effect, you've given the IRS an interest-free loan. It really
isn't a good thing.
Q:I filed bankruptcy two years ago. Would
any bank give me a business loan?
A: It will be difficult but not impossible to
obtain credit so soon after a bankruptcy.
Although bankruptcy remains on your credit report for 10 years,
new patterns of responsible earning and spending will be noted, and
approval for credit will become more likely over time.
If you can't borrow from anyone, then concentrate on a
rebuilding effort.
If you don't own a home, look into buying one.
Pay off all debt promptly. Pay your bills on time. Start a
savings plan. Every six months, ask for a copy of your credit
report from one of the big three: Transunion, Equifax or Experian.
Look it over to make sure your new credit history is being
applied.
For the short term, you might look at other options. For
instance, you can contact the Small Business Administration or the
Center for Disadvantaged Businesses.
And, finally, don't overlook the tried-and-true money supplier
-- family and friends. Sometimes it's surprising how they'll come
through, especially when they feel you are a good risk.
Q:Is it better to use a fiscal year
instead of a calendar year?
A: One isn't necessarily better than another;
the choice depends on your business needs. Most small businesses do
use a calendar year. Fiscal years are usually set up to take
advantage of tax periods. You need a good reason to choose a fiscal
year for your business because the IRS sets up the calendar year as
its default requirement.
Former agency owner Dan McManus is president of the McManus
Group publishers of business management advice. Contact him at [email protected].