This annual list of the best travel agency franchises was revised and updated on March 9, 2022.
Although the internet has made it easy for anyone to book flights and hotel rooms, there is still a large market for travel agencies, mostly focused on booking full vacation packages for people who don’t have the time or inclination to figure out all the details. By taking over the planning for travelers, agencies add value, reduce hassle, and draw in business. This is why cruise and travel agency franchises had a market size of $1.5 billion in 2021 and employ nearly 13,000 people in over 6,600 businesses.
Cruises play a large part in the business of travel agency franchises. This fits the model of these agencies, as cruises provide an all-in-one holiday package, the sort of thing that travelers go to agencies for. They’re also relatively high value holidays that can provide a good commission relative to the work involved in arranging them. There are so many options, even within the cruise industry, that it’s often hard for customers to figure out which one is right for them, and an agency can help with this. Travel agencies can obtain discounts on cruise bookings thanks to their relationships with the cruise companies, saving consumers hundreds of dollars per cruise.
These businesses grew an impressive 6.9% per year on average from 2015 to 2020, as high consumer spending boosted travel and franchise agencies moved in to take a share of the market. Online agencies in particular benefited from lower costs that allowed them to offer better deals and make better profits. But then came COVID-19.
The tourism industry was decimated by the COVID-19 pandemic. Strict controls on both international and domesitc travel, fears about the virus, and horror stories about outbreaks on cruise ships combined to kill a huge portion of the tourist trade. No cruise ships left US ports with passengers for over 450 days. Revenues for travel and cruise franchises fell from over $3 billion in 2019 to $0.9 billion in 2020. Revenues for 2021 were still only half of what they had been before the pandemic, and even optimistic estimates predict that revenues for 2022 will be noticeably behind where they were five years ago.
More than half of American consumers put money away in 2020 to spend on things they’ve missed during the crisis, and tourism is likely to be a big part of that. But while vaccines have made travel within the US more plausible, the uneven global distribution of vaccines creates huge challenges for international tourism. Travelers who have saved up for a cruise may decide to wait another year or more for the global environment to become safer.
The economic impact of the virus also means that, while people are keen to get traveling again as soon as they can, many will be less able to afford to travel. Add disrupted fuel supplies and sanctions due to conflict in Eastern Europe, on top of existing rises in oil prices, and tourism will become significantly more expensive, adding to the squeeze for travel agencies.
Given all of this, the immediate future for travel agency franchises is very uncertain. Is now a great time to get started, as a post-COVID spending boom lets new businesses fill the gaps created by others collapsing in the pandemic year? Is it a terrible time because of international restrictions and the costs of travel? At this point, it’s impossible to say.
These are surprisingly low-cost franchises to purchase. The cost of entry is low, with little expenditure on equipment and training. This means that there’s also plenty of competition, which can create both challenges and opportunities. In current circumstances, this is an accessible, high-risk option for a franchise, but one that holds potential for strong long-term profits if the tourism industry recovers to its pre-COVID strength. Talk of 59.7% growth in 2022 can make the sector seem very appealing, but before jumping on board, it’s important to ask, are these estimates realistic? And how does each individual franchise fit into a tumultuous travel landscape?
The Top Travel Agency Franchises of 2022
1. Cruise Planners
Cruise Planners is a work-from-home franchise concept in which its Travel Advisors sell all kinds of vacation travel packages, but with a special focus on cruises. This company is owned by American Express Travel Representative, and American Express credit card holders can get all kinds of special perks when they use their Amex card to pay.
Cruise Planners as a company has become a recognized master of micro-targeted email marketing along with its other high-tech, big-data-driven marketing tactics and technologies that give Travel Advisors the edge they need to succeed. In fact, its chief information officer, Brian Shultz, was recently named CIO of the Year at South Florida Business Journal’s Annual Technology Awards.
Founded in 1994 by Michelle Fee in Coral Springs, Florida and franchising since 1999, the number of locations expanded rapidly in recent years from 1,172 in 2012 to 3,151 in 2020 but has since dropped back to the current total of 2,659, of which one is company-owned and all are located in the US.
2. Dream Vacations
Dream Vacations is a spin-off from CruiseOne in order to make sure people knew they did more than just book cruises. Both travel franchise concepts are owned and operated by World Travel Holdings. The cost for a new franchisee without travel agent experience is just under $10,000, while those with a medium level of experience get a 67% discount and more experienced travel agents can buy in at a 95% discount.
Franchisees can literally work from anywhere with an Internet connection, and are encouraged to travel as much as possible themselves to keep their own knowledge and travel experiences up-to-date to improve their customer service. And franchisees also get to do their own travel at deeply discounted rates.
Founded in 1991 and franchising since 1992, the number of locations grew steadily from 909 in 2012 to 1,553 in 2020, but has since declined to the current total of 1,489, of which none are company-owned and two are located outside the US.
3. Travel Leaders
Travel Leaders has a long history dating back to the 1800s. Wagonlit Travel was founded in 1872 by Georges Nagelmackers (who created the Orient Express) while Ask Mr. Foster was a travel agency founded in 1888 by Ward G. Foster. In 1979, Carlson Travel Networks acquired Ask Mr. Foster and in 1997 merged with Wagonlit Travel to form Carlson Wagonlit Travel. Then in 2008, a three-way merger with Carlson Wagonlit, Tzell Travel Group, and Travel Leaders resulted in the Travel Leaders franchise.
The company is known for going the extra mile in customer service – not only getting to know customer preferences, but also helping them through any and all issues or challenges that may arise during travel.
Founded in 1888 and franchising since 1984, the number of locations declined for a time and the last known reported total was 367 in 2016, of which 24 were company-owned and three were located outside the US. The company website claims nearly 7,000 “travel agency locations,” but it’s not clear what is being counted – individual agents or agency locations.
4. Expedia Cruises
Expedia Cruises, as its name implies, has a special focus on selling cruises, but also offers a full array of other travel services and vacation packages of all types. This company has the distinct advantage of carrying the well-recognized Expedia brand name. Expedia purchased CruiseShipCenters International in 2007 and eventually decided franchising was the way to expand it.
Franchisees can get involved as individual travel agents (Vacation Consultants) who can work from home or at the nearest retail location, or can select to run a retail location.
Founded in 1987 and franchising since that same year, the number of locations climbed slowly but steadily in recent years from 159 in 2012 to 269 in 2020, but then fell to the current total of 253, of which none are company-owned and 159 are located outside the US.
An Important Note About Our Methodology
The franchises on this list were ranked according to the number of units in the franchise system. If you are a prospective franchisee searching for franchise opportunities that meet or exceed certain performance benchmarks for sales, profits, and return on investment, please check out this list of America’s Most Lucrative Franchises.
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