5 Best Travel Franchises In 2024
If you want to start a franchise with a low investment budget or need location flexibility, creating one of the five best travel franchises mentioned in this guide could be significant.
People are travelling now more than ever, and that is mainly because of the pandemic that took away two years of people’s lives. It was also when people realized how futile life is, and so many have started travelling since then.
This gives you an opportunity to get into this industry and make some good money. So make sure you see all five options, compare them, and then pick the one that best suits your needs.
Table of Contents
Dream Vacations
| Founded in | 1991 |
| Franchising Since | 1992 |
| Estimated Outlets | 1,874 |
| Initial Investment | $1,795 – $21,000 |
| Franchise Fees | $495 – $10,500 |
| Liquid Capital | N/A |
| Royalty Fees | 1.5% – 3% |
Founded in 1991, Dream Vacations is a business travel agency and a leading travel franchise that uses a proprietary system to offer travel deals related to cruises, vacations, etc.
This is one of the best travel franchises that you can find. What we love most about Dream Vacation is that it is a low-cost franchise with investments ranging from just $1,795 to $21,000. Also, it has a solid and repetitive customer base, ensuring that you may profit every time.
The company currently has a network of over 1,800 franchisees, and you can also become a part of their successful franchise venture.
Cruise Planners
| Founded in | 1994 |
| Franchising Since | 1999 |
| Estimated Outlets | 2,720 |
| Initial Investment | $2,295 – $23,465 |
| Franchise Fees | $695 – $10,995 |
| Liquid Capital | N/A |
| Royalty Fees | 3% |
Founded in 1994, Cruise Planners is another popular travel franchise that you can invest in in 2024. Cruise Planners is privately owned and is known for creating and planning some of the best itineraries for travel plans in Canada and the U.S.
In recent years, this company has also made its name on the Entrepreneur’s Franchise 500 list multiple times.
Other than this, what sets Cruise Planners apart from its competitors is that it is a home-based franchise. Meaning its franchise owner can run this business from anywhere, anytime.
To be eligible for this flexible travel franchise opportunity, you must have $2,295-$23,465 as an initial investment.
Expedia Cruises Franchise
| Founded in | 1987 |
| Franchising Since | 1987 |
| Estimated Outlets | 300+ |
| Initial Investment | $167,250 to $292,245 |
| Franchise Fees | $39,000 |
| Liquid Capital | $250,000 |
| Royalty Fees | 9% |
Expedia Cruises is another famous name in the travel industry that offers franchising opportunities to those interested. To be eligible, you must have a minimum net worth of $750,000 and a minimum liquid cash of $250,000.
Also, as per the company’s website, matured Expedia Cruises franchise owners generated a median annual net revenue of $233,624 in 2022. So this is the kind of revenue you can make from this franchise.
You must note that Expedia has a high royalty fee of 9%. This means you must give away 9% of your gross revenue. Because of these high royalty fees, you can consider other travel franchises that we have shared instead.
Travel Leaders
| Founded in | 1888 |
| Franchising Since | 1984 |
| Estimated Outlets | 353 |
| Initial Investment | $2,270 |
| Franchise Fees | $0 – $1,500 |
| Liquid Capital | N/A |
| Royalty Fees | to $1,000 per month |
With decades of experience under its belt, Travel Leaders is another excellent travel franchise that you can think about investing in.
Travel Leaders offer the necessary training, business tools and strategies, travel management projects, and more to the franchisees to prepare them for the business.
They also offer their all-inclusive toolbox that includes templates and information on all their services.
To be eligible for this franchise, you must have an initial investment of $2,270.
Itrip Vacations
| Founded in | 2008 |
| Franchising Since | 2015 |
| Estimated Outlets | 100+ |
| Initial Investment | $110,000 – $140,000 |
| Franchise Fees | $55,000 to $75,000 |
| Liquid Capital | $200,000 |
| Royalty Fees | 5% |
Itrip was founded in 2008 as a property management company but later became a travel company.
By joining Itrip, you can benefit from a respected name in the industry and the company’s decades of experience.
For this franchise, you do not need to hoard any inventory. The company has a proprietary system on which everything is taken care of.
However, the company requires 15+ years of business experience to be eligible for this opportunity. However, we suggest you apply even if you have less than 15 years of experience.
Comparison Of 5 Best Travel Franchises
| Company | Founded | Outlets | Franchise Fee | Initial Investment | Royalty Fee |
|---|---|---|---|---|---|
| Dream Vacations | 1991 | 1,874 | $495-$10,500 | $1,795-$21,000 | 1.5%-3% |
| Cruise Planners | 1994 | 2,720 | $695-$10,995 | $2,295-$23,465 | 3% |
| Expedia Cruises Franchise | 1987 | 300+ | $39,000 | $167,250 to $292,245 | 9% |
| Travel Leaders | 1888 | 353 | $0 – $1,500 | $2,270 | Up to $1,000 per month |
| Itrip Vacations | 2008 | 100+ | $55,000 to $75,000 | $110,000 – $140,000 | 5% |
When Should You Choose A Travel Franchise?
Here are some questions to think about before you decide to invest in a travel or any franchise business for that matter:
Are You Okay In Having Limited Control Over Your Business?
When you invest in a franchise, you are asked to follow the rules and standards set by the franchisor. This standard may include following the working hours, marketing strategy, itinerary, advertisements, etc.
If you can deal with having limited control over your business, consider investing in a franchise, or you are better off starting an independent business.
Are You Comfortable Carrying Out Work Digitally?
A travel franchise will require you to complete the bookings, confirmation, communication, and so much more digitally on your phone or a laptop.
So you must have good knowledge of technology and must be comfortable using it. If not, then consider opening some other kind of brick-and-mortar business.
Factors To Consider Before Investing In A Travel Franchise
Here are some factors that you should consider before investing in a travel franchise:
Royalty & Marketing Fees
Franchisors charge a set percentage of marketing and royalty fee in the range of 2% to 10% monthly from franchisees in return for you using their brand name.
Make sure you choose a travel franchise that charges this fee on the lower side of the bracket, or else you won’t get to keep too much of your profits.
Payback Period
You should also check the payback period of the franchise you want to invest in before investing your money.
You can find out the payback period by taking the initial investment and revenue of the franchise.
Make sure you invest in a business that has a low payback period so that you can start keeping the profits completely.
Failure Rate
The failure rate of a franchise can be calculated by the total number of franchised outlets that open and close in a year.
Invest in a franchise that has a low or zero failure rate only. This will ensure you refrain from investing in risky options.
Wrap Up
Starting a travel franchise might be ideal if you have a low investment budget or are a veteran or retired person.
The best thing about a travel franchise is that you do not necessarily need an office for this. You can work from your home office and do not need to invest in machines or stock other items.
We hope the information on the five best travel franchises we have listed in this guide was helpful to you.
FAQ’s
How Much Does A Travel Franchise Cost?
The cost of a travel franchise could vary depending on the franchise you choose to invest in. However, based on the options shared in this guide, you can expect to spend between $1,795 and $292,245 on average. As you can see, the investment required to open travel franchises is low because, unlike other industries, opening a travel franchise does not necessarily require a brick-and-mortar location, inventory, etc.
How Much Can I Make From A Travel Franchise?
Travel franchises generate less profit. You can earn $38,000 a year from a travel franchise. And if the franchise you have invested in is quite profitable and successful, you might make up to $100,000 a year.
Is Travel Business Profitable?
Yes, starting a travel business or a travel agency can be profitable. However, the amount of money you make in this depends on several factors such as your location, size of business, planning, etc.
Which Is The Cheapest Travel Franchise To Own?
Per the travel franchises shared in this guide, Travel Leaders is the cheapest travel franchise to own, with only an investment requirement of $2,270.
What Is The Profit Margin In The Travel Industry?
The profit margin in the travel industry or the profit margin of a travel agency is usually between 10% to 15%.
