When you’re starting a business, one of the biggest decisions you have to make is whether to franchise or go it alone. Both options have their pros and cons, but which is the right choice for you? In this article, we’re going to compare and contrast starting a franchise travel agency against starting your own independent travel agency.
Franchise Travel Agency
A travel agency franchise is a business that is owned and operated by a franchisee, but is part of a larger franchise system. The franchise system provides the franchisee with support in the form of marketing, branding, and operational assistance. Travel agency franchises typically have an existing customer base and a proven business model.
Travel Agency Franchise Pros
Established Brand Name With Built-in Marketing
When you franchise, you’re buying into an established brand name that comes with its own marketing. This can be a big advantage, especially if you don’t have the time or money to invest in marketing your own business.
Proven Business Model
Another big advantage of franchising is that you’re buying into a proven business model. This means that the hard work of figuring out how to run a travel agency has already been done for you. All you need to do is follow the franchise’s systems and procedures.
Training and Support From the Franchisor
When you franchise, you’ll also get training and support from the franchisor. This can be a big advantage, especially if you don’t have any experience in running a travel agency. The franchisor will provide you with all the tools and resources you need to run your franchise successfully.
Economies of Scale in Purchasing
Franchisees can benefit from economies of scale in purchasing. This means that the franchisor will be able to get discounts from suppliers that you wouldn’t be able to get as an independent travel agency. This can save you a lot of money, which can help you to be more profitable.
Travel Agency Franchise Cons
Franchise Fees and Ongoing Royalties
One of the biggest disadvantages of franchising is paying franchise fees and ongoing royalties to the franchisor. These fees can be quite high, and they can eat into your profits.
Give up Some Control Over Your Business
You may have to give up some control over your business. The franchisor will usually have the final say over things like marketing and product offerings. This can be frustrating if you have your own ideas about how to run things.
Restricted as to How You Can Run Your Franchise
You may be restricted as to how you can run your franchise. The franchisor will usually have strict rules and guidelines that you must follow. This may not give you the flexibility to run your franchise the way you want to.
Franchise Travel Agency Companies
- Cruise Planners
- Travel Leaders
- American Express
- Expedia CruiseShipCenters
- MLT Vacations
- Nexion
- Travel Franchise Group
Independent Travel Agency
An independent travel agency is a business that is not part of a franchise system. It is owned and operated by the individual or individuals who founded the company. Independent travel agencies typically have more freedom than franchise travel agencies when it comes to how they run their business.
Starting Your Own Travel Agency Pros
You Are Your Own Boss
One of the biggest advantages of starting your own travel agency is that you are your own boss. You get to make all the decisions about how to run your business. This can be very empowering and can give you a lot of satisfaction.
No Franchise Fees or Royalties
Another big advantage of starting your own travel agency is that you don’t have to pay franchise fees or royalties. This means that you can keep all of the profits that you make.
You Have Complete Control Over Your Business
When you start your own travel agency, you have complete control over your business. You get to decide how to run things and what products and services to offer. This can be very liberating and can allow you to be more creative in your business.
Starting Your Own Travel Agency Cons
You’re Starting From Scratch
One of the biggest disadvantages of starting your own travel agency is that you’re starting from scratch. This means that you have to figure out how to run a travel agency on your own. This can be a lot of work and you may make some mistakes before you get things right.
You Have to Do All the Marketing
Another big disadvantage of starting your own travel agency is that you have to do all the marketing. This can be time-consuming and expensive. You may not have the budget to invest in marketing, which can make it hard to attract new clients.
You May Not Have the Experience Needed
If you don’t have any experience in running a travel agency, starting your own business may not be the best idea. It can be very challenging to run a successful travel agency without any experience. You may want to consider franchising if you don’t have the experience needed to start your own business.
Independent Travel Agency Companies
- AAA
- Liberty Travel
Conclusion
So, what’s the verdict? Should you start a franchise travel agency or your own independent company? There is no right or wrong answer. It really depends on your own personal circumstances and what you are looking for in a business. If you are willing to pay franchise fees and royalties, and you don’t mind giving up some control over your business, then franchising may be the best option for you.
If you want to be your own boss and have complete control over your business, then starting your own travel agency may be the better choice. Whichever route you choose, make sure you do your research and understand all the pros and cons before making a decision.