Travel Franchise Information and News

Travel Franchises

The Tourism, Hospitality and Leisure (THL) industry is doing well even amidst economic crisis. It just goes to prove that travel is no longer a “want”; it is a “need” for both business and leisure travelers. While consumers may cut back on other expenses, they are still setting aside their budgets for their vacations. In 2007, the travel and tourism industry from the US alone generated $740 billion in sales (21.9 percent higher from 2004).

Growth in the travel industry is fueled by the creation of new offerings as well as the growth from its sub-sectors including cruise, hotel & lodging, travel agency, car rentals, air travel, and food services. In fact, it is expected that airline passengers will surpass one billion by the year 2015.

In a survey conducted by the Deloitte & Touche USA LLP on October 2007, 93 percent of the respondents revealed that they took a vacation in the last 12 months. Around three-quarters of the cited figure plans to spend equally, or more, in the coming year. The Travel Industry Association of America (TIA) has revealed that total travel expenditures in the United States grew from $699.8 billion in 2006 to $739.4 billion in 2007.

According to the World Travel & Tourism Council (WTTC), the United States expenditure is estimated to be at $1.4 trillion in 2008 for both direct and indirect travel spending. China comes as a far second at $508 billion. In addition, WTTC further says that revenue from the US can easily reach $2.4 trillion in 2018.

Because of the popularity of the internet, there is a misconception that travel agents have become obsolete. When you study the facts though, it becomes clear that a lot of travelers still want the services of travel agencies. The American Society of Travel Agents said that 25 percent of their members have estimated total sales of $1 million and $1.9 million in the year 2007.

Nowadays, there is also an emerging trend for travel agencies that focus on niche markets. For example, some travel franchises focus on luxury accommodations, extreme adventures, and eco-tourism packages. Meanwhile, others focus on specific pastimes such as golfing or skiing vacations. Getting a travel franchise today is highly beneficial and offers a lot of advantages. It requires very little start-up costs and provide ongoing operational support.