Starting a travel agency franchise can be a great way to turn your passion for travel into a profitable business. However, it’s essential to understand that the amount of money you can make from a travel agency franchise will depend on a variety of factors, including the type of franchise you invest in, the amount of time you dedicate to the venture, its location (if not online), and your own skills and experience.
How much does a travel franchise owner make?
In general, travel franchises have huge potential. According to a Franchise Direct report, the UK’s travel and tourism industry is worth an estimated £17.2 billion and is expected to continue growing in the coming years.
Additionally, the report found that 93% of franchisees profit from their business, with 60% enjoying a turnover of more than £250,000.
Each year, 50% of start-up businesses fail; however, research from the 2019 British Franchise Association, together with the NatWest Franchise Survey, shows that less than 1% of franchise owners close their businesses due to failure. Franchising, therefore, is a faster route towards becoming a successful business owner.
Of course, it’s vital to keep in mind that individual franchise owners may experience different results. Depending on various factors, some may earn significantly more or less than these figures.
For example, the type of travel franchise can greatly impact its success. Here we will look at travel agency franchises with profit dependent on the amount of commission earned from holidays sold.
Some franchises will offer different commission-sharing schemes and monthly fees, and others will not offer so much support, marketing materials or training which may limit your success.
It’s worth noting that owning a travel franchise is not a get-rich-quick scheme. It requires hard work, dedication, and a willingness to constantly adapt and evolve in order to succeed. It’s also important to have realistic expectations and not to expect overnight success.
How do the numbers add up?
It’s important to understand that starting a travel agency franchise can be a significant investment. As explained, you will most likely need to pay an initial franchise fee, ranging from several hundred pounds to many thousands. You will also need to pay ongoing membership fees to the franchisor, which can be a percentage of your sales or a flat fee. For example, The Travel Franchise has membership packages with its Lite package starting at £2,995 (+ VAT) with monthly fees of £299 while it’s Elite package costs £14,995 (+ VAT) and monthly fees of £99. Payment plans can make the cost more affordable and the franchise’s Money-Back Challenge means there is the opportunity of getting your initial franchise fee back in full if you sell a certain number of holidays in a year.
The costs of running a travel agency franchise can vary widely depending on the franchise, so it’s important to research and understand what you can expect to pay. You also need to be clear on what you will receive in your membership package. The Travel Franchise’s cheapest package provides everything you need to start your travel agency business – full training and ongoing support, marketing and IT resources, including a website, access to industry experts and much, much more. The Elite, meanwhile, offers even more incentives including an overseas luxury mentorship retreat.
It’s essential to do your own research, carefully evaluate the franchise opportunity, and consult with professionals before deciding to invest. They can provide valuable advice and help you navigate the legal and financial aspects of starting a business.
Whichever franchisor you decide to join, every travel agency has different financial commitments and opportunities. This is why it’s impossible to give exact earnings and figures.
What can influence your earnings?
Several factors can influence the earnings of a travel franchise. Some of the most important include:
Franchises that are part of a well-known and reputable brand are frequently more successful than those that are not. This is because consumers are more likely to trust and choose a business that is part of a well-established brand.
However, it is important to be cautious when considering any franchise opportunity and to thoroughly research the business, its owners, and its track record before making a decision. It’s also helpful to speak with current and former franchisees to get their perspectives on the business.
Some people are wary about losing their franchise fee, so is The Travel Franchise a con?
Established in 2001, The Travel Franchise has helped hundreds of members build their own homeworking travel agencies. The franchise has a proven track record, with 99% never working in travel before and over 3⁄4 never working for themselves. One of the largest parts of the Hays Independence Group, The Travel Franchise is a trusted name in the industry. It’s frequently rated ‘excellent’ on Trustpilot and has a business model that has won it Homeworking Agency of the Year numerous times. Some of its agents have also won awards and you can start your research by looking at travel trade publications such as Travel Weekly and TTG.
The location of the franchise can have a significant impact on its earnings if you want to open a physical shop. Franchises in areas with high foot traffic are more likely to be successful than those in less desirable locations. However, with the increasing popularity of online travel booking, a franchise with an online presence not only reduces the overheads experienced by a brick-and-mortar business but can reach many more customers.
Websites, social media accounts and the ability to attract customers from anywhere in the world, allow an online travel agency to maximise its revenue.
Advertising and marketing
A franchise’s advertising and marketing efforts can also significantly impact its earnings. Franchises that invest in effective advertising and marketing campaigns are more likely to attract more customers and therefore increase revenue.
A franchise that provides a wide range of travel services – such as flight bookings, hotel reservations, and car rentals – from a wide choice of travel suppliers, is more likely to be successful than one that only offers a limited range of services. In addition, check to see if the franchise has the necessary membership in place ie ABTA to ensure your clients are protected in the event that something goes wrong.
The cost of running the franchise, such as rent, staff salaries, and other expenses, can also impact earnings. A franchise with high overhead costs may find it more challenging to generate a profit. Running your business from home reduces overheads to a minimum.
A franchise that provides excellent customer service is more likely to retain customers and generate repeat business, which can increase revenue.
The bottom line
While the exact earning potential of every travel agency franchise is impossible to pin down, with hard work and determination, you can build a robust, successful business by partnering with an established, trustworthy franchisor, such as The Travel Franchise. Some of its consultants have sold over £150,000 worth of holidays in January 2023 alone and you can read their stories on the company’s website. By joining its growing community, you’ll receive help with the practical aspects of running a travel agency and the support and guidance of a welcoming peer group committed to your success.
Click here to watch an introductory video and learn more.