What is the travel industry?
As more and more people decide to spend their time traveling, the travel industry has seen increased business. Most vacationers no longer want to spend their PTO on the beach or lazing around the pool. In the past few years, customers have begun to seek authentic cultural experiences in their travel, much to the benefit of travel franchises.
The travel industry provides travel and vacation services to recreational, leisure and business clients. Franchises within this industry include travel agencies or consultants, transportation services, hospitality services, and entertainment services. Travel agencies often specialize in certain areas or certain types of travel, providing consumers with a tailored experience.
Travel franchises provide various services that assist clients with their travel plans. Whether it’s planning vacations for tourists or finding business travelers appropriate accommodations, a wide variety of clientele invests in the travel industry.
The travel industry is comprised of both small and large businesses. Some travel franchises have plentiful resources and cater to mostly corporate or business clients. These businesses assist with large-scale corporate conferences or expositions. Although they may be smaller in scale, even smaller travel franchises receive plentiful business from recreational travelers. Smaller travel franchises focus on honeymoons or cultural immersion.
Travel franchises expand.
Over the past five years, the travel franchise industry has reported consistently positive progress, according to Ibis World. In fact, the cruise and travel franchise industry have presented superior performance to the overall travel agency industry. While some travel companies have met difficulty in competing with online resources, travel franchises have grown due to their ability to specialize in selling complex and detailed packages. Not to mention, IBISWorld anticipates that consumers will continue to spend in the industry, increasing travel demand and further progressing travel franchises.
The industry has brought in approximately $2 billion in revenue with a 4.7 percent annual growth rate each year since 2013, according to Ibis World. The industry employs more than 13,000 people and is comprised of more than 6,500 different businesses. With the growing popularity of cruise lines, it is anticipated that the employment rate will continue to grow.
The industry employs more than 13,000 people and is comprised of more than 6,500 different businesses across the country.
Travelers looking for an authentic experience.
This industry is comprised of many different categories including cruise franchises, hotel franchises, recreation and entertainment franchises, and travel agency franchises. All of these individual categories contribute and make efforts to improve clients’ overall travel experience.
Many trends have influenced and shaped the travel franchise industry of today. Primary among these trends is the growing desire to travel by cruise. According to the Cruise Line International Association, 27.2 million people are estimated to use cruise lines for their form of vacation and travel this year. Much of the growing popularity in cruise lines can be associated with a growing desire for an authentic travel experience. Many people, millennials specifically, are beginning to seek cultural experience in their travel, rather than standard vacationing.
Many people, millennials specifically, are beginning to seek cultural experience in their travel, rather than standard vacationing.
The growing desire for authentic cultural immersion has led to increased demand in travel agents and consulting services. Today’s travelers have decided to leave their planning to the pros, seeking professional services to guide and create their travel experiences.
What’s new in the industry?
Authentic Experience and Online Travel
This new, growing desire for cultural immersion can be linked back to the internet and popular social media. With services constantly working to undercut one another on price, the internet has begun to play a significant role in the industry. New businesses like Airbnb, which allows people to essentially rent out their homes to travelers, has become a key player in the hospitality sector of the industry.
While many may think these services would harm the industry, this has not been the case. Young travelers have begun to favor the traditional travel agent, recognizing the value their experience provides in planning travel. Online travel planning may be convenient but allows for much information to fall through the cracks. Many travelers prefer to book their experience through a trusted individual or agent that knows the location, culture, and language.
Similarly, hotels and resorts have responded to this trend by implementing more technology-friendly amenities. Many hotels have implemented new in-room systems that allow guests to voice activate the temperature or music. Others have brought in keyless systems, allowing travelers to use their smartphones to lock and open their rooms.
Is the travel franchise industry right for you?
The travel franchise industry has been around and thriving for a long time and, as anticipated, will continue to do so. While prior experience in the industry isn’t necessarily required, it could be helpful in ensuring a smooth franchising experience. Many franchises point to specialization as the key to their success. Many travel franchises offer similar services. For this reason, the ability to specialize can set a business apart from others, giving clients a reason to favor their services.