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Travel Franchise & Business Opportunities

Travel Industry

General Travel Industry

This industry encompasses businesses that offer selling, booking, and arranging of travel, tour, and other accommodation services for clients. Within the subsection of the travel and hospitality industry, the travel agency is divided into two different categories — online travel websites and brick and mortar travel agencies. However, actual brick and mortar agencies have increasingly become a thing of the past as online travel agencies offer more convenience and are cheaper. This market is dominated by Expedia, an online travel website that focuses on booking flights and currently has the largest market share of the industry. The travel agency industry is a $30 billion market with over 60,000 active industries.

Travel & Hospitality Industry Trends

This larger industry has struggled significantly due to the pandemic and resulting lockdown, and even as the economy begins to reopen most people remain wary of traveling in fear of being exposed to the virus. Furthermore, many states have mandated hotels and other hospitality institutions to enforce stringent restrictions, such as requiring a negative COVID test and banning the use of certain facilities, leading to a decline in revenue. The travel and hospitality industry is heavily dependent on revenue from large group events such as weddings or bachelor parties, something that has been heavily discouraged due to the virus. While some more established sectors of the travel and hospitality industry are expected to make a rebound once the pandemic subsides and vaccine rollout continues, other small scale establishments within this industry are not expected to survive.

Key Travel & Hospitality Industry Numbers

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Paid-in-Full Rate

The Paid-in-Full Rate is when the SBA loan is fully paid off by the small business owner including interest, indicating financial strength.

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Charged Off Rate

The Charged Off Rate is the SBA loan default rate where loans have no confidence in being paid off by the small business owner.

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SBA Loan Success Ratio

For every 13 SBA loans fully paid including interest, 1 SBA loan was unable to be paid back, or defaulted. 

-SBA Loan Data from 2010-2019

-Non-Franchise Businesses taken into account: 10,112 

Travel Industry Trends

The aggressive growth of online travel services to compete with traditional brick and mortar services have hurt the brick and mortar sector of the industry significantly. The enormous price disparities between these two subsections have led travel agencies to tack on service fees in order to even have a chance to compete, rather than rely on vendor commissions as they typically have in the past. In order to justify these extra costs, in-person brick and mortar agencies have to offer much higher quality services to give them an edge. This industry as a whole has been severely impacted by the pandemic, which brought virtually all forms of travel to a grinding halt. However, once the pandemic subsides, this travel agencies are expected to make a comeback, as people look forward to being able to travel abroad again.

Average Travel & Hospitality Percentage Fees

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Royalty Fee
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Marketing Fee

Standard Travel & Hospitality Franchise Industry Investment

$ 0 M

This metric is the standard industry investment amount for a single unit franchise investment in this industry. Our research and analytics team analyzed over 79 franchise concept investment breakdowns in order to calculate this figure.

0 %
Paid-in-Full

The Paid-in-Full Rate is when the SBA loan is fully paid off by the franchisee including interest, indicating financial strength.

0 %
Charged Off

The Charged Off Rate is the SBA loan default rate where loans have no confidence in being paid off by the franchisee.

0 :1
SBA Loan Success Ratio

For every 66 SBA franchise loans fully paid including interest, 1 SBA loan was unable to be paid back, or defaulted. 

-SBA Loan Data from 2010-2019

-Franchise Businesses taken into account: 5,274

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