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Mention “travel” and one brand that instantly springs to mind is the Expedia franchise.
Officially known as Expedia Cruises, this company has been a major player in the global travel and tourism industry for decades, helping countless customers plan their dream vacations all around the world. But is it a good opportunity for entrepreneurs?
This Expedia case study takes a closer look at just that, examining the company’s history, franchising advantages, and important FDD data in detail. Let’s hop aboard and take a closer look at Expedia!
The Expedia Cruises Story
The origins of the Expedia franchise actually predate the famous brand name by a number of years.
The company, based in Vancouver, Canada, was originally known simply as CruiseShipCenters and established in 1987. Leveraging franchising to grow efficiently and cost-effectively, the business grew quickly and became North America’s premier cruise booking network.
After 20 years of solid growth, CruiseShipCenters attracted the attention of leading travel booking engine Expedia, which bought a significant interest in the company in 2007, later forming an official partnership with the company in 2008 when it became part of the Expedia Group. The partnership proved to be great for both companies, with the franchise benefitting from Expedia’s strong brand recognition and trust among consumers around the world.
In 2020, the company rebranded as Expedia Cruises and today continues to be a leader not only in the cruise booking industry, but the broader travel and tourism industry as a whole, boasting a network of approximately 235 franchised retail locations across North America today.
Why Do Entrepreneurs Cruise Into New Opportunities with Expedia Cruises?
What attracts entrepreneurs to opportunities with the Expedia franchise? Our Expedia case study examines this in detail below!
1. Top Brand Recognition
One of the largest advantages of being an Expedia franchisee is the brand’s outstanding name recognition by travelers. In business since 1987, the company has built up decades of trust and loyalty with customers around the world, giving franchisees a dedicated, built-in customer base and name that’s widely known and respected within the travel industry.
2. Tap Into the Lucrative Global Travel Market
In 2019, the scope of the global travel and tourism industry stood at a staggering $9.25 trillion, while some 1.4 billion people engaged in cross-border tourism in 2018 alone. The vast scale of the global tourism and travel industry represents a very lucrative opportunity for entrepreneurs, especially those with the recognized and respected Expedia franchise.
3. Proven Business Model
Expedia’s business model is both affordable and scalable, making it attractive for entrepreneurs with limited resources but big dreams. Franchisees also benefit from the company’s decades of experience, also making it an ideal opportunity for those seeking a franchise with an established business model that understands the inner workings of its industry well.
4. Omni-Channel Business Opportunities
Another key advantage of the Expedia franchise is the fact that it offers omni-channel business opportunities for entrepreneurs to tap into. Expedia franchisees help customers choose not only its acclaimed cruises, but also vacation packages, all-inclusive resorts, bus and rail tours, vacation villas, and more. This creates additional revenue options and the opportunity to tap into a very broad slice of the global travel and tourism industry.
5. Great for Travel-Minded Entrepreneurs
If you love to travel but are interested in entrepreneurship, the Expedia franchise may be a great choice for you. Working with clients to help them plan their dream vacations offers a sense of fulfillment and expands horizons into new travel opportunities all around the world.
Initial Franchise Fee: $39,000
Per the most recent FDD for Expedia, franchisees are required to pay a nonrefundable initial franchise fee of $39,000 in a lump sum upon signing their franchise agreement.
Royalty Fees: 9% of Gross Revenues
Royalty fees for Expedia, called service fees, are 9% of gross revenues and payable on a monthly basis.
Estimated Initial Investment Costs: $169,950 – $299,645
|Name of Fee||Low||High|
|Initial Franchise Fee||$39,000||$39,000|
|In-person Training – The Franchisee’s Transportation and Accommodation||$1,200||$6,000|
|In-person Training – Additional Trainee||$0||$495|
|In-person Training – Additional Trainee Transportation and Accommodation||$0||$1,750|
|Premises Lease Security Deposit||$2,500||$8,000|
|Utilities and Telephone Deposit||$250||$900|
|Signage (interior and exterior)||$7,500||$12,000|
|Computers and Software||$3,500||$7,000|
|Office Equipment and Supplies||$2,100||$4,500|
|Office Furniture and Furnishings||$12,500||$19,000|
|Business Licenses and Permits||$500||$1,500|
|Additional Funds – Working Capital for the first 18-24 Months||$69,600||$116,000|
Revenue Range: $130,515 – $512,344
Revenue ranges for Expedia franchisees with more than three years of experience, according to the company’s most recent FDD, vary from approximately $130,515 to $512,344. It’s important to note that these are only statistics based on historical financial performance, and not in any way a projection of what franchisees can expect to make in the future.
Take a Vacation from the 9-to-5 and Become Your Own Boss with Expedia Cruises!
Need a vacation from the same old 9-to-5 and want to become your own boss as an entrepreneur? Expedia might just be the right opportunity for you. The franchise, with its excellent brand recognition, proven business model, and leading position in the lucrative global travel market, stands out as an ideal option for travel-minded entrepreneurs. Take a holiday from your old job and see if the Expedia franchise is right for you!
Want to franchise with Expedia? Visit their client page here!