In 2009, the cruise industry was responsible for the generation of $35.1 billion (including indirect economic impacts and the spending of crew and passengers) in the United States alone. That’s according to a 2010 report by the Cruise Lines International Association (CLIA).
Those interested in owning their own travel business would be wise to look to the cruise industry—specifically a cruise travel franchise – as the number one way to grow. Just take a look at the cold hard data.
People Trust Human Advisors More Than Faceless Websites
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In 2010, 25% of U.S. respondents said much of the online information they found can’t be trusted.
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That’s up from 19% in 2008, according to a 2010 study by Epsilon Targeting.
This shows a clear opportunity for anyone in or looking to join the travel business.
According to CLIA, at least 74% of cruisers book their trips through a travel agent. Like buying a car, it’s just not the kind of transaction that lends itself to completing the purchasing online. "While most of us do most if not all of our initial product research online, nothing replaces personal endorsements from family and friends and personal advise from an expert when purchasing something as important as your vacation,” according to Mark Schiffner, vice president of Cruise Holidays, a North American company that specializes in cruise travel agency franchising.
"There is a huge opportunity for travel agents to become a trusted cruise advisor for their customers. The trust factor built between a travel agent and the client is what holds the entire relationship – and your future sales – together,” added Schiffner.
You can be a full service travel agent but specialize in cruises to make more money
Cruise lines pay 10%-18% commissions to travel agents. Typically, the more you sell on a particular line, the higher your commission level will be. Better yet, if you can align yourself with a top franchisor, they have commission agreements in place with major cruise lines, so you can start at the highest commission levels.
According to CLIA, the average amount spent on a cruise vacation in 2008, including air and other expenses, was $1,880 per person, coming to $7,520 for a family of four on one cruise – at a 15% commission level that means a $1,128 commission to the travel agent for that booking.
Group cruises – a faster way to financial freedom
One way to maximize your cruise sales income is to focus on group cruise sales. For example, if you have a group of people who all want to cruise together, then you only have to deal with one cruise line, one sail date and one itinerary. Depending on how large the group, you also earn free staterooms so you can go along on the cruise, or cash in that free stateroom by selling it back to the cruise line, putting even more money in your pocket. Here are some
According to a recent media update from CLIA, cruising continues to rank number one by consumers for perceived value and vacation interest, and by travel agents for ease in selling.
Cruises are profitable to sell and generate a high repeat rate. Cruise Holidays prides itself on being an "all-inclusive” franchisor, with no hidden costs, while providing complete training and support for its valued franchisees.
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