How Much Can I Make?
A look at sample earnings for our travel franchise locations
One of the biggest reasons entrepreneurs choose to join the Expedia Cruises travel franchise is that they want the opportunity to grow a large business that is capable of increasing their earning potential — and that is what our business model is designed to do.
The median annual net revenue for “mature” Expedia Cruises franchise locations in North America (locations that have been in business for at least 3 years) is $223,640. That’s the owner’s share of commissions after their Vacation Consultants have been paid their commissions and after service fees have been paid to Expedia Cruises to cover the functions that support our franchisees.
Of course, it doesn’t happen overnight. Travel companies typically pay commissions when a customer begins their travel, and since customers often book trips six months or more in advance, that means that revenue doesn’t flow in the instant you serve a customer. Instead, your revenue will build as you increase the number of Vacation Consultants affiliated with your business and as commissions roll in on a more frequent and regular basis.
The first year or two involves a fair bit of delayed gratification, but for those who work on growing their business, the payoff can be substantial. The tables below illustrate revenue and cost of revenue projections for North American (combined Canada and US locations) and US franchisees in the 50th percentile (median) and 75th percentile (high performing) during their first three years in business.
The revenue projections are based upon historical data that franchisees have entered into our Partner Central system for annual total bookings, departed revenue and gross revenues. The projected cost of revenues include selling expenses payable to us and to your Vacation Consultants. All amounts are in United States dollars. Not shown in these tables are non-sales related operating expenses (e.g., rent, insurance, utilities, marketing fees, supplies, etc.).
| 1st year of operations | ||
|---|---|---|
| USA Median (50th percentile) | USA high performer (75th percentile) |
|
| Total Bookings | $765,000 | $950,000 |
| Total Departed Revenue | $375,000 | $450,000 |
| Commission Rate | 11.9% | 12.6% |
| Gross Revenue | $44,625 | $54,990 |
| Commissions Rate Paid to your Consultants | 37.4% | 39.6% |
| Less Commissions Paid to your Consultants | $12,239 | $14,387 |
| Less Franchisor Service Fees | $4,016 | $4,949 |
| Net Revenue | $25,692 | $32,355 |
| 2nd year of operations | ||
|---|---|---|
| USA Median (50th percentile) | USA high performer (75th percentile) |
|
| Total Bookings | $1,230,000 | $1,480,000 |
| Total Departed Revenue | $955,000 | $1,075,000 |
| Commission Rate | 12.4% | 12.7% |
| Gross Revenue | $118,420 | $136,525 |
| Commissions Rate Paid to your Consultants | 39.0% | 41.1% |
| Less Commissions Paid to your Consultants | $36,512 | $43,063 |
| Less Franchisor Service Fees | $10,658 | $12,287 |
| Net Revenue | $64,145 | $72,983 |
| 3rd year of operations | ||
|---|---|---|
| USA Median (50th percentile) | USA high performer (75th percentile) |
|
| Total Bookings | $1,665,000 | $1,965,000 |
| Total Departed Revenue | $1,400,000 | $1,650,000 |
| Commission Rate | 12.4% | 12.5% |
| Gross Revenue | $173,600 | $206,250 |
| Commissions Rate Paid to your Consultants | 39.4% | 40.4% |
| Less Commissions Paid to your Consultants | $56,184 | $66,660 |
| Less Franchisor Service Fees | $15,624 | $18,563 |
| Net Revenue | $91,376 | $108,652 |
Of course, Expedia Cruises has been franchising since 1987, and many of our Canadian and some US franchisees have been operating for much longer than three years. Here’s a look at the revenue projections based upon historical performance data for mature Expedia Cruises franchised locations:
| Mature Expedia Cruises locations (open 3 years or longer) | ||||
|---|---|---|---|---|
| North America Median (50th percentile) | North America high performer (75th percentile) | USA Median (50th percentile) | USA high performer (75th percentile) |
|
| Total Bookings | $3,620,000 | $4,660,000 | $4,000,000 | $5,925,000 |
| Total Departed Revenue | $3,350,000 | $4,225,000 | $3,580,000 | $4,900,000 |
| Commission Rate (5) | 12.4% | 13.0% | 13.3% | 13.4% |
| Gross Revenue (6) | $415,400 | $549,250 | $476,140 | $656,600 |
| Commissions Rate Paid to your Consultants(7) | 37.4% | 39.1% | 42.5% | 45.6% |
| Less Commissions Paid to your Consultants | $142,374 | $193,408 | $187,663 | $276,496 |
| Less Franchisor Service Fees | $37,386 | $49,432 | $42,853 | $59,094 |
| Net Revenue | $223,640 | $294,410 | $233,624 | $309,010 |
| These tables are included in our 2023 USA Franchise Disclosure Document. | ||||
Reaching the levels of sales projected above depends entirely on your ability to implement our marketing and operational systems, to develop a cruise-focused sales team, and to make connections in your community. There is no assurance you will achieve these or higher revenues or incur the same or lower costs. Written substantiation for the financial performance representation will be made available to the prospective franchisee upon reasonable request.
Amounts shown are based on our USA Franchise Disclose Document. Such measures and experiences are intended for use in the USA only and are not intended to represent or be used for viewers in Canadian markets. Canadians may inquire about financial representations in accordance with their local franchising regulations.
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