Advertising and Sales Strategy for a Travel Agent Franchise
This paper develops an advertising and sales strategy for a home-based travel agent franchise — specifically a Cruise Planners/American Express Representative opportunity. It begins by establishing a realistic first-year advertising budget based on projected commission revenue, then evaluates the media landscape used by cruise industry competitors. The paper identifies affordable, targeted channels — including a search-engine-optimized website, social media advertising, and local press — that can generate approximately 250 qualified leads per year within a modest $3,500 budget. The sales section outlines a direct-to-customer distribution strategy, a first-year sales forecast of 100 cruises totaling $70,000 in commissions, and a lean operating budget that leaves a projected net revenue of $21,500.
- Introduction: Introduces the Cruise Planners franchise opportunity
- Advertising Plan and Budget: Establishes a $3,500 first-year advertising budget
- Media Landscape and Target Market: Reviews competitor media use and cruise traveler demographics
- Affordable Media and Advertising Goals: Identifies cost-effective channels and lead generation targets
- Sales Plan and Distribution: Recommends direct-to-customer sales channel
- Sales Forecast, Budget, and Process: Projects revenue, costs, and telephone sales process
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What makes this paper effective
- It grounds every strategic recommendation in concrete numbers — a $70,000 revenue estimate, a 14% commission rate, a 40% closing rate — giving the plan credibility and internal consistency.
- The paper moves logically from market context (industry size, competitor media use) to budget constraints, then to affordable channel selection, before transitioning seamlessly into the sales plan.
- The inclusion of a simple but clear sales budget table (Table 1) converts abstract projections into a practical financial snapshot that supports the argument for a lean, owner-operated model.
Key academic technique demonstrated
The paper demonstrates applied business analysis: it takes general marketing principles (advertising budget as a percentage of revenue, distribution channel selection, closing rate calculations) and applies them systematically to a specific, real-world franchise scenario. Every recommendation is justified with either cited industry data or logical inference from the franchise's constraints, rather than stated as opinion alone.
Structure breakdown
The paper is divided into two major sections — an Advertising Plan and a Sales Plan — each with numbered subsections. The advertising section progresses from budget to media audit to target market to affordable options and finally to the campaign goal. The sales section mirrors this progression, moving from distribution philosophy to forecast to budget to process. This parallel structure makes the document easy to navigate and signals professional report-writing conventions appropriate for a business planning context.
Introduction
Before embarking on any business opportunity, it is necessary to consider the viability of the venture, including how it may be marketed and how its products will be sold. If the new business is a franchise, it may be argued that some aspects of the concept have already been developed and that proof of concept exists. Even so, the potential franchisee must still consider advertising and sales strategy carefully. This paper examines those considerations for Cruise Planners: An American Express Representative, a franchise opportunity chosen in part because of its low initial investment requirement.
Advertising Plan and Budget
The first consideration is the advertising plan — specifically, what types of media may be used and how best to optimize the available budget.
The advertising budget for a business is typically between 3% and 5% of the firm's sales (Visa, 2007). In the case of a travel company, revenue is generated by commissions earned on travel products sold; therefore, the advertising budget should be based on commission income — the firm's actual revenue — rather than the total value of travel services sold. It may be estimated that this business will earn approximately $70,000 in its first year, based on an average commission rate of 14% applied to $500,000 in sales. At a 5% advertising budget, this yields an annual advertising budget of $3,500. Though modest, this sum can be used effectively if the right strategies are employed.
Media Landscape and Target Market
Media used by travel agents and the cruise industry varies considerably. Large cruise companies utilize mainstream mass media — including television, radio, and national magazines — as well as the internet. These highly visible channels help attract a mass market, supporting both direct sales and brand awareness that benefits agents selling their products.
Travel agents maintain websites and, depending on their size, may also use television, radio, national or local press, specialist magazines, and online advertising such as keyword search ads and banner advertisements.
The target market consists of consumers interested in taking a cruise holiday. This is a broad audience: in 2011 alone, an estimated 11.2 million North Americans took a cruise holiday in an industry worth $37.85 billion, and demand continues to grow (Florida-Caribbean Cruise Association, 2012). Given the size of this market, traditional mass media certainly reaches it. Many travelers also access the internet, including travel forums and review sites such as CruiseCritic.com, and use search engines to research options. Specialist cruise and travel magazines, national newspaper travel supplements, and local newspapers are additional channels likely to reach prospective cruisers.
Social networking media is now well established, with a U.S. penetration rate of 43%. Cruise travelers — who are more likely than the average U.S. citizen to be active internet users — are likely to be present on these platforms (Internet World Statistics, 2014).
Prospective cruise customers gather information through a narrower range of sources. Cruise magazines play a role, but the primary sources are online: travel review sites and forums such as CruiseCritic.com, social platforms such as Facebook, and direct contact with travel agents who sell cruises.
References
Dickinson, Bob; Vladimir, Andy (2007). Selling the Sea: An Inside Look at the Cruise Industry. John Wiley & Sons.
Florida-Caribbean Cruise Association (2012). Cruise Industry Overview — 2012: The State of the Industry. Retrieved from http://www.f-cca.com/downloads/2012-Cruise-Industry-Overview-Statistics.pdf
Franchise Opportunities (2014). Retrieved from on 14th July 2014.
Internet World Statistics (2014). United States of America Internet and Facebook Users Stats. Retrieved from http://www.internetworldstats.com/stats26.htm on 14th July 2014.
Visa (2007). Advertising. Retrieved from http://www.va-interactive.com/visa/workshops/advertising/advertising.html on 14th July 2014.
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