Travel Franchise Opportunities in the United States of America

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Travel and Hotel Franchise Industry Overview

Although the Covid-19 pandemic put a damper on global travel, the travel industry is quickly recovering from the industry slump. This means that American travelers are beginning to spend on travel plans once again, giving impetus for great confidence in the industry. Despite the travel industry being so extensive, it can be broken down into independent businesses and franchise businesses. With regard to the later, we have overarching travel franchises, cruise franchises, and hotel franchises.

When it comes to cruise franchises in particular, we see that they are one of the fastest growing franchise categories in the travel industry. For over 20 years, this industry has reported consistent growth of around 8.4% and sustained revenue. Just this industry alone is recorded to be worth $12.5 billion in revenue each year, making this type of travel agency franchise that involves cruise planners a highly profitable and lucrative franchise opportunity.

As for the travel agency industry in general, we saw that the industry saw revenue of around $17.3 billion in 2021, while there were around 7,000 such businesses within the industry landscape. As for employment statistics, it has been noted that before the pandemic, travel-related jobs accounted for 6% of the US workforce. Meanwhile, travel-supported jobs made up 11% of American workers, making travel-dependent leisure and hospitality the seventh largest employer in the private sector and the largest small-business employer in the US, supporting around 15.8 million jobs.

As for the hotel industry as part of the wider travel industry, we see that it is expected to bring in around $194 billion. What’s more is that franchise hotel brands continue to grow. This can be illustrated by the fact that in 2010, around 70% of branded hotels were franchise operations, while in 2019, that figure had jumped to around 80%.

Also worth noting is that when planning their dream vacations, the average American consumer spends, on average, $2,400. However, many spend even more than this. As such, as a franchise owner of a travel, cruise, or hotel franchise, you and your travel agents as part of your travel agency franchise have ample opportunity for lucrative profitability, irrespective of whether this involves a trip on a cruise liner or at an inclusive resort.

Travel, Hotel, and Cruise Industry Trends in 2023

With your very own travel agency franchise, you are already on the path to success. That’s because franchises such as travel franchises, cruise franchises, and hotel franchises offer extreme flexibility within a highly lucrative market. However, staying on top of trends is essential if you want to succeed and keep scaling. That’s why we outline some of the most important industry trends below.

  • Marketing and technology are becoming increasingly intertwined to give travel franchises the upper hand and competitive advantage. Whether it’s marketing and advertising programs that are combined with CRM and booking systems or client mobile apps, email automation platforms, and more – you’ll be well positioned within the industry by taking advantage of this combination of resources.
  • Also worth noting is that travel agency franchises encompass a number of subfields within the industry. These may range from air flight services to cruise planning, domestic and international trips, and other tailor-made travel solutions that you need to be on top of to ensure you catch every sale.

Why you should consider a travel franchise opportunity

Travel franchises such as cruise franchises, hotel franchises, and travel agency franchises offer aspiring entrepreneurs ample opportunities to make the most of their investment. As such, just some of the key benefits of investing in a franchise business model include the following:

  • More often than not, travel agency franchises or cruise franchises are highly affordable and on the lower end of the investment spectrum. This makes these opportunities highly affordable and accessible to aspiring entrepreneurs. Yes, some franchise hotel chains can cost upwards of $20 million, but in most cases, you are looking at affordable opportunities under $50,000.
  • Do you wish to work from home? With a home based travel franchise or home-based business, you can enjoy much greater flexibility than a nine-to-five job offers. This means you can have greater work/life balance as well as choose whether you wish to work full or part time. 
  • The commissions you have the potential to earn are highly attractive, too, depending on the franchisor that you choose to partner with. Bear in mind that you will often be able to up-sell and cross-sell additional services such as cruises, car rentals, tours, hotel bookings, travel insurance, etc., meaning that you can truly optimize your earnings. 
  • With a travel franchise, you will also be able to take advantage of world-class training and support. This can be exemplified through individualized websites, booking tools, marketing materials, and more from corporate headquarters.
  • A travel franchise further gives you the chance to travel the world (using various discounts), work from anywhere in the world, and be your own boss.
  • In many cases, your franchisor is an expert in their industry and as such, they have and will implement award-winning marketing strategies to help your business unit grow. 
  • Enjoy the franchisor’s buying power and pay low prices and get exclusive offers on aspects such as upgrades, tours, cruise liners, and more.  
  • You will not be starting your business from scratch. Instead, you will have the franchisor’s industry reputation and brand to rely on when you get started and as you continue to build your business. The trust factor is important for many tourists and travelers and that’s something that usually takes years to build up on your own. 
  • In most cases, a travel franchise also requires no previous experience in the travel industry, meaning that as long as you have the passion and drive to succeed, you can make your business thrive. 

  How much does it cost to open a travel franchise business?

As mentioned above, travel franchises are often considered low-cost investments because the franchise fee can range from the low thousands of dollars up to $50,000. However, it’s worth bearing in mind that a hotel franchise, for example, depending on the brand, can require an initial investment of up to $20 million, although many of these opportunities are much lower than this figure. Therefore, when it comes to the cost of a franchise, many factors will be taken into account to determine your total investment and it’s highly advisable that you get these figures from a franchisor that you’re interested in, while also consulting with a franchise attorney or legal expert.

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