There are two effective ways to partner with another entity in the travel business: affiliate yourself with a “host” company or own a travel franchise business. What’s the difference? When someone joins a travel host company, they create a job for themselves. When they become a franchisee, they are building a travel business for themselves. As a franchisee, you are not just a travel agent you’re an entrepreneur whose business is to sell travel.
The most important point in a franchisee’s success is the basis for the success of the franchisor. Simply put: if you don’t make money, they don’t make money.
Membership-based vs. Success-based business – This is another way to spell out the difference between a travel host and a travel franchise. The travel host business model is about memberships to make money; while a travel franchise opportunity is about mutual success. A franchisee’s success as an owner leads to the franchisor’s success as a company. Below are some solid points of differentiation:
Travel Franchise Company
- You own a travel franchise business
- Franchise companies are regulated by the Federal Trade Commission (FTC). You receive full disclosure on the company ownership, management, litigation, ongoing fees, obligations, advertising, trademarks, and three years of complete financial information about the business
- You have the power of brand recognition and the ability to advertise and represent yourself with the Cruise Planners brand name, which is added value and instant credibility
- Ongoing training and business development coaching
- Royalties paid are based solely on what you sell and go to support the infrastructure of the franchise Home Office Team
- You have the use of proven systems to guide you and your business
Travel Host Company
- You are a member of the host organization, not your own boss
- You make a percentage of the overall commission
- You don’t own the business or your client list
- Limited training
- Limited, if any, marketing support
- Limited, if any, technology support
- Limited, if any, ongoing business support
- Host companies are not regulated by the FTC. They do not have to disclose any business information to you before you join. Ask yourself, “who are you partnering with?”
- You are not able to use the host name to represent yourself or your services
At Cruise Planners, an American Express Travel Representative, our motto is "You’re in business for yourself — never by yourself."