Given the emergence of remote and freemium business models, traditional methods of structuring a company appear to be increasingly moribund.
With technological advancement helping to drive innovative and low-costs business start-ups, this trend is only likely to continue for the foreseeable future.
Despite this, some traditional business models remain enduringly popular in some sectors. Take the franchise business model, for example, which continues to dominate the travel and tourism section and create jobs for thousands of citizens.
Even as a whole, franchise businesses turnover an estimated £15.1 billion in the UK alone and have helped to drive recent economic growth.
How to operate a profitable and successful travel franchise
Interestingly, an estimated 97% of franchise units are profitable, which offers a huge incentives to brands that are active in the seasonal field of travel. With this in mind, here are three tips that will help you to launch a successful travel franchise and optimise your profitability.
Select a viable partner
This is your first port of call as an aspiring travel entrepreneur, as you need to select a viable partner that can provide a launch pad for your commercial success. After all, your franchise is only ever as good as the infrastructure that underpins it, and without the necessary support it is almost impossible to succeed.
Market leaders such as the-travel-franchise.com offer a relevant case in point, as they deliver comprehensive support to their clients and also offer full training in the field of travel and tourism.
This will equip you with the core skills to thrive as an independent travel agent, making it far easier to operate an efficient and high quality franchise business.
Target and understand a specific niche
While it may be tempting to establish an all-conquering franchise business wit an optimal reach, this can put you at the mercy of established agents and global operators.
It makes far more sense to target a specific travel niche depending on your size, knowledge and location, and once you begin to succeed you can develop and scale your growth.
From cruises and corporate travel to local tours, there are multiple franchise options to suit every entrepreneur. Targeting the right one is crucial, while it also imperative that you hone your knowledge of this market segment and familiarise yourself with its mechanisms and existing trends.
It is also important to monitor other brands and study their most popular promotions and tour packages, as this helps you to plot a path towards success.
Remember the fundamental rules of business
When pursuing and operating a franchise-style business, it is easy to become preoccupied with the intricacies of the model and the vision that you pursue as an entrepreneur.
It is also crucial that you do not lose sight of the fundamental rules of business, as regardless of the model that you operate you will still need to pay attention to costs, turnover and profitability.
So before you take the plunge, be sure to compare the specific franchise terms, prices and repayment plans that are being made available by your operator. This helps you to estimate start-up costs and measure these in line with project turnover, creating a targeted profit margin that helps you to make informed decisions.
This type of thinking underpins successful entrepreneurship, regardless of the nature of your business or the market in which you operate.