Travel business rarely requires large investments to start, but it never gives guarantees that the new company will immediately have regular customers and a stable income. To date, the problems of introducing franchising in tourism are trying to minimize. In this industry, you then have to earn an honest name with blood, especially after the recent wave of bankruptcy of tour operators. If an entrepreneur has a great desire to work in the tourism sector, but there is no money or time for a full-fledged independent promotion, then franchising in tourism will be an ideal way out of the situation. Many travel agencies and tour operators are ready to provide novice businessmen with their already well-known name and work experience in exchange for observing their own conditions. The most important thing - before starting a tourism business, to study the market and its main competitors.
Franchise Benefits
Today, almost all citizens are focused on the purchase of expensive goods only from reliable sellers, which also applies to various trips. In addition, not every independently open office is able to stay afloat for a long time until its popularity is justified by customers. To do this, they must first be obtained, and then satisfied. It is quite difficult to lure customers from well-known and time-tested brands to yourself, so many people choose for themselves immediately opening a well-developed travel agency. To do this, it is enough to conclude a franchise agreement with a well-known operator and boldly use his name, which from the moment of opening guarantees a flow of customers and stable earnings.
Varieties of brand buying
Tourism franchising can be divided into:
- franchises from travel agencies;
- franchises from tour operators.
Each business has its own characteristics. Examples of franchising in tourism of the first option are the brands “Last Minute Vacation Stores Chain”, “RossTour” brands and so on, the second ones include operators such as Coral Travel or Tez Tour. In any case, after the introduction of the franchise, all patrons receive, thanks to their small partners, the rapid expansion of the network with virtually no investment. This also contributes to the spread of the name throughout the country.
Work with travel agencies
Such franchisors seldom put forward rigid limits and requirements for their franchisees. Anyone can open a travel agency under a sonorous and well-known name, since as such experience in this area is not required. At the same time, the freedom of choice of tourist operators for cooperation can be attributed to the pluses, which will allow you to independently adjust some prices, taking into account the peculiarities of the region.
Work with tour operators
Everything is a bit more complicated here. For fruitful cooperation, patrons require experience in the tourism industry, and in several years. Beginners in such a business can rarely get the go-ahead for cooperation. This is due to the large number of scammers using a famous name to deceive people. Franchising in tourism on the basis of a tourist operator involves the distribution of only its own tours to the population, which cannot regulate pricing at the same point.
The factors combining both options for developing a franchise business include:
- the ability to set a sales plan;
- state-level advertising;
- famous name;
- the ability to receive promotional tours.
Benefits for Franchisees
First of all, franchising in the tourism industry attracts everyone with small investments to start. Insignificant amounts are required to open your own agency, but there is no guarantee to make a profit from such a business. This is due precisely to the trust of ordinary customers in the sonorous names of companies that have been on the market for many years.
Buying a travel agency with a well-known name, there is no need to spend additional funds on various promotions, which is an indisputable advantage. The name already known to everyone begins immediately to work and bring profit to the owner of the point and the brand itself.
The benefits also include the ability to get free software for customer service. This includes:
- all bases for booking hotel rooms and airline tickets;
- Central site with a constant flow of online applications;
- training staff and the franchisee.
The last point is very important, because all the experience gained over the years by the company is donated to new partners firsthand. For this, each brand chooses its own strategy. Some people prefer distributing educational booklets, conducting theoretical seminars, webinars, distributing educational video material, and so on. Others prefer to train personnel “in battle”, providing them with internship places at real-life locations. Some franchisors even put qualified curators to their new partner, who, if necessary, answer all questions and monitor the implementation of all previously set job requirements.
Indisputable advantages include legal assistance in various matters. Experienced lawyers of a major brand are always ready to help their partner in difficult matters with clients, for example, when canceling a tour.
Also, a travel agency franchise implies higher earnings than when opening a point on your own. This is due to the large flow of customers to well-known companies, allowing owners to raise commissions for the implementation of permits for their franchisees to 13-15%.
An indirect advantage can be attributed to the constant development of the brand, which will necessarily affect all employees of its name. This is due to the fact that absolutely all networks strive to get as much of the market as possible and are forced to constantly change the list of tours and the level of service to please their customers.
Franchisee Requirements
Among such a wide list of various advantages received by a small entrepreneur, his obligations should be highlighted. The franchise of a travel agency suggests that the franchisee undertakes to rent the premises of its office at its own expense and make repairs there in accordance with all the requirements of the patron. The employee form should also be networked, but sometimes the franchisor himself provides it in the finished form. Catalogs, booklets and promotional materials may also be provided, but in some cases they will have to be paid extra.
How to make a choice
When choosing between a franchise from a travel agency or operator, you should familiarize yourself with the principle of selecting potential partners for the patrons themselves. The working conditions of franchising tourism in Russia from any travel agency can be negotiated with a brand representative. Anyone can familiarize themselves with them and make a choice in favor of a particular brand.
As for applicants to work with popular travel operators, they will have to send their profiles and wait for approval from the company’s leaders. Only after that all further working conditions become known.
Generalized cost data
Among all the available data on the cost of franchise work, conclusions should be drawn about the need for a small starting capital.On average, owners of future business will need about half a million, but the amount can vary from several tens of thousands to a couple of million. A travel agency, last-minute tours of which is much cheaper than usual, offers its partners low fixed royalties, which differ only for the regions and the capital. Some cancel payments completely, in exchange for adhering to the sales plan, and most companies completely refuse the need to pay lump-sum and royalties. The payback period, which often varies in the region of six months, but in some cases can reach several years, depends on the brand’s popularity and cross-country ability.
The need for a specific region
Tourism franchising does not always guarantee success in choosing the most popular brand as its patron. The main indicator of the profitability of a future business is the geographical location of a new point and the number of competitors in the same locality.
To approximately calculate the possible future income, you should determine the number of working population in the city. 40% can be safely taken away from the received amount, since not all working citizens are able to pay for their vacation. After that, the resulting number must be divided by the number of travel agencies available in the city. The result will be an indicator of potential customers.
Of course, even a little-known travel agency, last-minute tours of which attract variety, can attract a few percent of potential customers, since the cost of such vouchers will be much lower. At the same time, one should take into account potential cross-country ability and choose a place for a point away from competitors. By the way, such a remote placement is even a condition of some brands who want to monopolize certain areas of the city.
General conditions for the arrangement of the premises
Franchising in tourism, the proposals of which are the most diverse today, requires its own characteristics, but regarding the decoration and arrangement of the premises, general rules can be distinguished. So:
- The room is small, for convenient placement of 1 or 2 workplaces. As a rule, only 20-40 square meters are enough.
- The office must be located on the 1st floor of the central line of buildings. You can choose office centers, equipped apartments on the ground floors of residential buildings or shopping centers for this.
- Visibility should be good from all surrounding points, as well as placement only in places with high traffic.
- The facade of the selected premises should be able to place outdoor advertising. Usually, 1 by 2 meters are taken for this.
- As for the arrangement of the premises, the repair should be done in strict accordance with corporate standards.
- Office equipment must necessarily provide access to the Network, the availability of a photocopier, printer, scanner, fixed landline telephone line.
- In rare cases, a separate entrance may also be required.
Employee Requirements
In this case, everything is strictly individual, since not all companies are ready to cooperate with entrepreneurs without experience in this field. The personnel training system is also different. Common can be called only the requirements for wearing corporate uniforms in the workplace and compliance with standards.
Any franchise (domestic or international tourism) is obliged to work according to the strict system of its patron, which is immediately indicated in the contract. The franchisee undertakes to work only according to the company's standards, to pay contributions on time and to fulfill the established sales plans.
The main thing is to understand in time which requirements are real, and which are better not to agree with immediatelysince full control and constant checks from representatives of the brand will distract the franchisee from the actual work and will not allow him to fully pay attention to customers, which will lead to loss of profit and bankruptcy. It is important at the first meetings to establish good relations with your patron and to find mutual understanding in all matters of interest with the possibility of counseling if necessary.
Conclusion
Do not be afraid to start your own business, which will bring a good income. Before you begin, thoroughly examine the market and customers. Approach the matter with all seriousness, and then you are guaranteed success.