How to invest in a travel franchise in the UK
Your guide on how to get started with investing in a travel franchise including: choosing the right brand, navigating challenges, and how to set yourself up for success
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Travel franchise opportunities
The Travel Franchise
Explorer Travel together with Hays Travel
GoCruise
Are you envisioning immersing yourself in the dynamic realm of travel business? Venturing into franchise ownership might just be your answer. With the travel industry flourishing globally and the UK market showing promising growth, investing in a travel franchise could be a fulfilling pursuit. Let’s embark on a journey through what it takes to successfully navigate the UK market.
Choosing the right travel franchise brand
Look for brands with established reputations, robust support systems, and a proven track record of success. Consider franchises that resonate with your passion and expertise, be it adventure travel, luxury getaways, or niche markets like eco-tourism. Do thorough research, attend franchise discovery days, and seek counsel from industry experts to make a well-informed decision.
“My advice to anyone starting out in travel with a franchise, is to try and concentrate at one aspect of travel first, be that a specific cruise line, a destination, or a holiday type,” recommends Jane Chadwick, franchisee at GoCruise. “Get good at one thing and become an expert in that field. Do any online training to gain knowledge.
“There’s nothing worse than a potential client knowing more than you. Don’t try to be everything to everyone all at once. Become an expert at one thing, grow your confidence and slowly branch out to other areas of travel, and in the end it will come naturally and make more sense.”
A typical day
As a travel franchisee, each day presents a blend of exhilaration and responsibility. Your duties may encompass liaising with clients to craft their dream vacations, coordinating bookings with suppliers, and marketing your services to entice new patrons.
Embrace the flexibility of your schedule, as you may find yourself aiding honeymooners one moment and orchestrating group tours the next. Adaptability and impeccable communication skills are pivotal in this dynamic role.
Also, bear in mind that a travel agency isn’t just in the business of selling holidays. Your customers will be coming to you for advice and will expect you to help them with other services they need for their trip, such as car hire, transfers, insurance, special flight requirements, etc. So you need to know the business inside and out and be prepared to go the extra mile in order to make sales and build a loyal customer base.
Will I have an opportunity to travel?
Many investors are attracted to opening their own travel agency because they have a passion for travel and hope to incorporate this into their lifestyle. This is entirely possible. Firstly travel businesses can usually operate remotely and this provides flexibility to go abroad while still running your agency (although you will have to look up work visa regulations if you’re planning to work away from your home country for a period of time. Meanwhile, brands such as The Travel Franchise regularly take franchisees on holiday as a means of training.
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Financial prospects
Investing in a travel agency offers the potential for substantial returns, but success doesn’t materialise overnight. Your earnings hinge on a myriad of factors such as location, market demand, and your commitment to nurturing your enterprise.
While industry statistics signal steadfast growth in the travel sector, it’s imperative to delineate pragmatic financial objectives and devise a robust business strategy.
There are also various financial guarantees you need to consider as a travel agent. For example, you should provide a bond – essentially, a financial guarantee to refund customers money they’ve paid should your company or suppliers go into administration. If a customer is already on holiday when the firm goes into administration, the bond can be used to get them back home again. You can arrange a bond with a bank of an insurance company.
Anyone who sells flights or offers them for sale (other than an airline) must either hold an Air Travel Organisers’ License (ATOL) or be the authorised agent of an ATOL holder. To get an ATOL you also need to provide a bond for the same reasons as above.
There are various trade associations you can join and this is highly recommended in order to gain the trust of potential clients. The best-known is the Association of British Travel Agents (ABTA). Many consumers look for ABTA membership before booking with a travel agent – it claims to have the highest level of brand awareness and trust amongst the travelling public of any UK travel association.
However, if you join, make sure you budget for the cost of membership. Also look into the association’s requirements of membership and check to see if you comply and, if not, what you’ll need to do.
As with any business, you’ll need the right insurance. Among the options you might need to consider are: public liability insurance, especially if you intend to have business premises that customers will be visiting; employer’s liability insurance, which is a legal requirement if you’re employing anyone outside of your family; and professional indemnity insurance, which can cover you against claims from dissatisfied customers.
Insights from industry statistics
Recent industry reports show that the UK travel market continues to burgeon, propelled by factors such as disposable income, consumer confidence, and an increased appetite for experiential travel.
The pandemic-induced surge towards domestic tourism has also unveiled fresh avenues for travel franchises catering to local escapades and staycations, with technological strides bolstering online bookings and bespoke travel experiences.
However, Stephen Heaton, franchise operations manager at Explorer Travel warns that it’s important to be realistic. “The Travel Industry is historically difficult to get into without any experience. This means that going down the franchise route gives a great entry into the industry for those entrepreneurs who have a real passion for travel.
“Key skills needed to ensure success include, a love of travel, high levels of customer service and communication skills, the ability to organise and the willingness to follow a proven business model. The biggest piece of advice we would give is that like most businesses, this is not a ‘get rich quick’ scheme and involves being motivated to work hard and have your clients at the forefront of your decisions”
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Tips for aspiring franchisees
For novices traversing the franchising landscape, embarking on a travel business odyssey can be both exhilarating and daunting. Here’s what you should consider:
1. Training and support: Opt for a franchise that has comprehensive training regimes and ongoing support to navigate the intricacies of the travel industry.
2. Marketing strategies: Allocate resources towards innovative marketing strategies to showcase your offerings. Harness social media platforms, email campaigns, and alliances with local enterprises to augment visibility.
3. Networking opportunities: Cultivate relationships with fellow franchisees, industry experts, and travel suppliers to stay abreast of trends and get to know prospects for collaboration.
4. Customer service excellence: Prioritise customer service to engender trust and allegiance among your clientele. Tailored experiences and meticulous attention to detail can delineate you from competitors.
5. Adaptability: Remain nimble and responsive to evolving market dynamics, consumer preferences, and external variables such as geopolitical events and health emergencies.
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Challenges ahead:
While the prospect of owning a travel franchise is enticing, aspiring franchisees should be cognisant of potential challenges:
1. Market competition: The travel industry is highly competitive, necessitating innovative strategies to differentiate your offerings and attract clientele.
2. Regulatory compliance: Navigating regulatory frameworks and licensing requirements can be intricate, particularly in a sector governed by stringent standards and protocols.
3. Economic volatility: Fluctuations in currency exchange rates, geopolitical tensions, and economic downturns can impact consumer spending on travel, necessitating adept risk management strategies.
4. Seasonal variability: Demand for travel services may fluctuate seasonally, requiring astute planning to mitigate revenue fluctuations during off-peak periods.
5. Technology integration: Embracing technological advancements is imperative to stay competitive in an increasingly digitised landscape, but it may entail initial investments and training costs.
Joanne Aldridge, head of franchise at The Holiday Franchise Company also encourages first-time investors to keep their expectations realistic when starting out.
“Travel can be seen to be a easy industry to work in, the reality is it’s very fast paced and highly competitive,” she says. “Customers don’t throw credit cards at you, you have to work hard to secure every customer and booking.
“To be successful you’ll need a passion for travel and a positive mindset, as well as being determined and resilient with excellent communication skills. With the right skillset you can build a very lucrative business.”
The benefits of franchise ownership
Investing in a franchise can provide peace of mind by giving you access to a proven business model and ongoing support from the franchisor.
Whether you choose to operate your franchise on a full-time or part-time basis, you can enjoy the flexibility and autonomy of being your own boss while benefiting from the guidance and resources of a trusted brand.
With monthly management fees providing access to marketing materials, training programmes, and operational assistance, you can focus on growing your business and delivering exceptional service to your clients.
Want to join the travel franchise world? You can find an extensive list of current opportunities in the What Franchise directory.
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