Indian travel business has recovered from recession and is now picking up fast. However, online travel business is the latest trend still travel agencies have their own place.

If you aspire to own a travel agency, then taking a travel agency franchise is the most appropriate decision. Travel agencies help their clients by offering them a complete service that covers every aspect of a trip, from reservation to hotel booking. In turn, they charge some extra bucks in terms of commission on every transaction. Franchising in travel agencies is a cost-effective way of establishing your business and making easy money.

In spite of all the leverages and back up, franchisees generally confront some challenges while running a franchise travel agency. Here we discuss the various challenges of operating a travel agency and how these can be overcome.

Competitive fares

When a franchisee enters the travel agency business, he has to face a number of challenges in order to establish his business. The foremost challenge is the competitive fares of the trips. A customer would prefer an agency that charges the lowest.

Therefore, as a prospective travel agent, your rates need to be very reasonable and your services above board, which only would earn you your customers’ loyalty. 

The presence of other travel agencies can create an intense competition.

Competitors may decimate your market by providing fabulous facilities at cheaper rates. So, as a travel franchisee you need to be very careful and alert about your competitors’ business strategies. This would be possible only if you adopt a good marketing strategy and a customer friendly approach.

Services par excellence

To establish yourself as a successful franchisee, you have to provide to your customers the best of services. As a franchisee earns his profits through commissions, it becomes all the more necessary for him to earn through his growing customer base.

Wide network

As a franchised travel agent, you should have a wide network having liaisons with hotels, holiday homes, corporates, Government offices, railways, roadways services and air service providers, as these are the sources which may provide you a wide range of clientele and tourist information. A good network may facilitate you to arrange for holiday packages at much lower rates and woo customers. The franchisors also provide lot of information and guidance to their travel franchisees to develop network and liaison with customer resources. However, the franchisees must also constantly strive to enhance their information and develop strategies to increase customer base.

Adopt technologies

In the electronic era, technologies have quickened the pace of transactions to a ziffy. Credit card and online services have made the ticket booking services quite simple and convenient.  Booking vis-à-vis cancellations can be done in seconds. The customers would prefer those agents who can render them the quickest of services.  It is therefore, imperative that the travel franchisee learns these techniques and delivers promptly.

As Nishant Pitty, Sales Director, Ease My Trip says, “The franchisees are encouraged to establish their own business identity with the branding of their own. According to our contract, our franchisees are locked for a period of three years with the company and on each transaction; they get 5-10 per cent commission depending upon the airlines and travel fares.” 

Through franchise route it becomes very easy and convenient to operate travel business, as the franchisors usually provide full support and guidance in running the business. They help in establishing business from grass-root level, e.g., selecting office premises, interior designing, booking process and accounts operations.

Challenges are a part of business. If you have determination and dedication, then challenges cannot stop your from making headway. So, if you have resources and the will to move ahead, take the franchise route and transform yourself into a franchise travel agent.