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Franchise INFORMATION REPORT

EXPEDIAFRANCHISE.COM

FRANCHISE INFORMATION REPORT

ContentsWhat is Expedia CruiseShipCenters? 1

What Makes Expedia CruiseShipCenters Different? 3

Why the Cruise Agency Industry is Growing 4

What Are the Startup Costs? 6

How Much Can I Make? 7

What Makes Someone an Ideal Candidate? 9

What is the Role of a Travel Agency Franchise Owner? 10

What Makes Our Culture Special? 11

How Do I Get Customers? 13

Who Are Our Core Customers? 14

Who is Our Competition? 15

What is Our Startup Process? 17

How Will You Support Me? 18

How Do I Scale the Business? 21

What Makes A Good Location? 23

Expedia CruiseShipCenters Franchise Reviews 24

How Do I Finance the Business? 26

Meet the Leadership Team 27

FAQ 29

Next Steps 30

EXPEDIAFRANCHISE.COM 1


What is Expedia CruiseShipCenters?Fast-growing cruise franchise is one North America’s leading sellers of cruises

Expedia® CruiseShipCenters® is a travel agency franchise that specializes in cruises and has over 220 retail locations open or under development. Our sales have grown an average of 20% a year since our founding in 1987. While the internet eliminated many other retail travel businesses, we have flourished.

In fact, two decades of consistent growth attracted Expedia®, Inc. to invest in our franchise system. They knew that cruise vacations were more complex to book than other travel products being

sold through their other online subsidiaries like Expedia.com, Hotwire, and Hotels.com. They also knew that cruisers felt more comfortable booking with a trusted professional; a cruise specialist who could help guide the way. So in 2007, Expedia, Inc. formed a partnership with CruiseShipCenters to tap into our network of brick-and-mortar locations and our travel agents who could offer personal service to cruise customers.

“So many storefront travel agencies from when we were kids have gone away,” says Jennifer White, who owns an Expedia CruiseShipCenters cruise franchise location in Fort Lauderdale, Florida, with her husband, Kevin.“Shopping for travel online isn’t very fun. It’s choice overload and option overload, and a lot of people don’t have time to sift through it all — especially if they are looking for something that is tailored to them. Our customer service is a big advantage.”



“We are really able to give concierge service with Expedia pricing,” Brenna says. “Those in the corporate office in Vancouver believe that if you touch a customer’s heart and understand their dreams enough to make them happen, the money will follow. A call center or an online booking service can never do that.”

Award-winning cruise franchise system

Expedia CruiseShipCenters is based in Vancouver and is the dominant travel agency in Canada. We were inducted into the Canadian Franchise Association Hall of Fame in 2010 and have been named a Top 50 franchise by Franchise Business Review and a top franchise opportunity by Entrepreneur magazine. Our cruise franchises are now in the early stages of a huge expansion throughout the United States, with plans to reach 500 locations by 2020. Our corporate staff currently consists of 115+ people who work together to secure promotional deals from cruise lines, build marketing campaigns and materials, and execute many targeting marketing campaigns on behalf of franchisees.

“So much sets them apart: the strength of their technology, their commitment to their franchisees, the open-minded culture,” says Joyce Ripka, a former CPA who owns an Expedia CruiseShipCenters location in Brossard, Quebec.“Their door is always open for us to make recommendations. We have a lot of support from our franchise-partners, as well. The support team in Vancouver keeps us well-informed and are really willing to help us grow our business.”

Cruise franchise customers have varying needs

While booking travel online can be stressful for any type of trip, it’s especially daunting for cruise vacationers. Hotel rooms, planes and rental cars are fairly cookie-cutter, so customers know what to expect — especially when traveling in North America. They are fairly comfortable booking trips online.

Cruises are different. First, they’re generally more expensive trips. The average cruise guest spends more than $2,000 on their vacation. Second, it’s a vacation! People want to have fun, enjoy experiences, and create memories. They like being able to speak to an experienced travel agent who is willing to take the time to learn their preferences and steer them toward the best travel options. Third, while you’re unlikely to notice much difference between flying on a commercial jetliner built in 1992 and a plane built in 2013, you’ll notice an incredible difference between cruise ships from those same years. In the case of a cruise line that has 20-year-old ships in its fleet, the difference between the newest and the oldest cruise ships can feel like the difference between a creaky 20-year-old computer and whatever device you’re reading this on today. At the same time, a kid-friendly cruise perfect for a young family may be inappropriate for a newlywed couple celebrating their honeymoon, and a cruise that’s perfect for retirees or partiers might be a nightmare cruise for a group of twenty-somethings looking to party.

Customers want to know what they are getting. Picking the best cruise ship and planning the right itinerary can head off potential problems and disappointments and transform a nice vacation into an extraordinary vacation.

Expedia CruiseShipCenters’ CruiseDesk® software platform, corporate support, marketing resources, and continuous training enable franchisees and their teams to provide incredible deals and customer service, says Brenna Maurer, who owns two locations in Las Vegas with her husband, Dan.



What Makes Expedia CruiseShipCenters Different?How Expedia CruiseShipCenters franchise owners benefit from having a prominent brand in a massive industry

It might come as a shock for some that a retail travel agency is growing and thriving in the age of the internet, but Expedia® CruiseShipCenters® are doing just that. The cruise industry is getting bigger every year, and customers prefer to book with travel franchises who can offer personal service and customized travel plans.

The Expedia® business is known far and wide — we have over 220 locations open or under development in North America. Our retail locations give us increased visibility with our customers and also provide an office environment where we can host events — and where our independent Vacation Consultants can share knowledge and work together. According to Cruise Lines International, over 75% of all cruisers seek to purchase their vacations through a travel agent, which is unusual for the travel industry at large. Booking cruises tends to be more complicated than other types of travel. At Expedia, we provide a high level of knowledge and customer service, which cruisers rely on in booking their vacations.

Mary Beth Casey, an Expedia CruiseShipCenters owner in Fort Lauderdale, Florida, says her customers like having an experienced traveler at the helm of a deal.

“The value we add is in being thoughtful,” Mary Beth says. “We have to know what this vacation will bring to them and their families. There’s a lot of patience and hand-holding from our side. Our customers can ask anything from the simplest questions to the most absurd. When our customers get off the boat, we do a follow-up: Did we meet their expectations? Where are they going to go next?”

Our travel franchises: The cruise industry’s best friend

Expedia is one of the biggest travel businesses in the world, with $68 billion in annual bookings, and Expedia CruiseShipCenters sells more cruises per location than any other retailer in North America. That means cruise lines come clamoring to us with competitive offers and promotions. Expedia CruiseShipCenters works closely with cruise lines and other large travel companies to develop promotional deals that will resonate with customers. Thanks to our buying power, we are also able to secure blocks of desirable rooms for popular ships and destinations, locking in low prices and great rooms for travelers. We then leverage those deals by



creating marketing campaigns — some of which are largely underwritten by the cruise lines themselves. For instance, we are able to send out gorgeous flyers at pennies on the dollar to targeted customers on behalf of our franchisees. It’s a perfect symbiotic relationship — cruise lines get the word out about their trips and destinations, and we get the word out about our personal service and center locations.

An Expedia CruiseShipCenters franchise is a scalable business

Looking to start a travel agency? Other travel franchises are work-from-home gigs where you operate as the primary salesperson. The Expedia business model is different – we build teams of Vacation Consultants to generate a much higher sales volume. Our franchisees work to support teams of independent travel agents who tap into the resources of their Expedia CruiseShipCenters location to offer great travel packages to customers. Travel agents earn a commission when customers travel, and the Expedia CruiseShipCenters owner also earns a commission. The business model is similar to a real estate brokerage, in which a broker brings together a team of real estate agents and gives them the resources they need to close deals. In this paradigm, an Expedia CruiseShipCenters owner fills the role of the broker. Other travel franchises put their owners in the role of the real estate agent. A talented one can do well, but agents only have so many hours in which they can sell. A broker, however, can endlessly add capacity by bringing in more agents.

You can also own multiple locations. Brenna and Dan Maurer own Expedia CruiseShipCenters locations in Summerlin and Henderson, Nevada. The couple plans to open another location in Seattle, Washington in the near future.

“The Expedia leadership team is very helpful, very knowledgeable and very true to what their expectations are for us,” Brenna says. “I think they provide almost everything you need to succeed in this business, and I only say almost because you have to take what they give you and work hard to make your business succeed.”

Cruises are popular, but they are not cheap. The average cruise guest pays more than $2,000 for a trip, and they want to make sure they enjoy every penny they are spending. That’s why they are eager

to have experts they can talk to and learn from, and who can design travel plans that aren’t cookie-cutter. According to CLIA, 75% of cruise customers used a travel agent to book their trip; even in the age of the internet, planning a cruise can be too complicated and involved without a consultant to serve as a guide. The positive experience our Vacation Consultants give our customers is the reason our customers keep coming back to us to book their subsequent cruises.

Why the Cruise Agency Industry is GrowingExpedia cruise franchise owners are experiencing a booming, multi-billion-dollar cruising industry

Industry data reflects that the cruise industry’s significant growth over several years is not showing signs of slowing down. According to Cruise Lines International Association, an organization that conducts continual industry analysis, cruisers spent $20 billion on their vacations in 2013. The association also points out that the U.S. economic impact of the cruise industry is even larger, at $42 billion annually. These numbers reflect the significant investment cruise lines are currently making to expand their fleets. According to CLIA, 65 new ships will debut between 2015 and 2020, which demonstrates not only the continued growth of the industry, but a commitment to further the industry’s growth from the cruise lines.

These numbers reflect the significant investment cruise lines are currently making to expand their fleets. According to CLIA, 65 new ships will debut

75% of cruisers choose to book with a travel agent.

75%75% of cruisers choose to book with a travel agent.

75%



between 2015 and 2020, which demonstrates not only the continued growth of the industry, but a commitment to further the industry’s growth from the cruise lines.

Unlike most retail businesses, the cruise industry has not been diminished by the rise of consumers shopping online. CLIA, in their 2015 Annual Report, notes that most cruises are sold by travel agents, not through websites. In fact, 75% of cruisers opted to book their vacations using a travel agent. The thriving cruising market, as well as consumer trends, have allowed Expedia® CruiseShipCenters® to have viable, profitable businesses that reflect their owners’ passion for travel.

Noam Meppen, owner of an Expedia

CruiseShipCenters franchise business in Phoenix, Arizona, is scouting two potential new locations after just opening his first one in 2014.

“I have one location and plan to open two more in Phoenix,” Noam says. “I also have two other territories on hold. My commitment is to have three locations by 2020. Phoenix is a massive city. The other two geographies are both 30 miles away — 30 miles west and 30 miles south. People will only go so far, stores do a lot of business with people who live within two to three miles. The true magic of this system, and why it is different, is the credibility of having a location the customer can visit.”

Travel franchise appeals to expanding demographic

CLIA reports that the average age of a cruise

traveler is 49, with an average income of $114,000. However, while cruising may appeal to the Baby Boomer and Gen X generations, the industry is also experiencing a boom in younger travelers. CLIA reports that more Millennials are cruising than ever before. Furthermore, 38% of those who cruised in 2014 had never cruised before, which bodes well for future growth of our travel franchise.

“We get a lot of people who have cruised before, a lot of retired people,” says Joyce Ripka, owner of an Expedia CruiseShipCenters franchise in Quebec, Canada. “What is exciting is that we getting more and more families who are discovering how fun it is to cruise together. Our customers see the value in cruising, and they are eager for us to take charge. They want the good value and the good advice.”

While cruises are popular, they are not inexpensive. The average cruise guest pays more than $2,000 for a trip, and they want to make sure they enjoy every penny they are spending. That’s why they are eager to have experts to talk to and learn from, experts who can design travel plans that aren’t cookie-cutter. According to Cruise Lines International, 75% of cruises are sold by travel agents (2015 North American Market Profile). Even in the age of the internet, planning a cruise can be complicated and involved without a consultant to serve as a guide. The positive experience our Vacation Consultants give our customers is the reason our customers keep coming back to us to book their cruises.

“The value we add is in being thoughtful,” says Mary Beth Casey, owner of an Expedia CruiseShipCenters franchise in Fort Lauderdale, Florida. “We have to know what this vacation will bring to them and their families. There’s a lot of patience and hand-holding from our side. Our customers can ask anything from the simplest questions to the most absurd. When our customers get off the ship, we do a follow-up: Did we meet their expectations? Where are they going to go next?”

What Are the Startup Costs?Expedia CruiseShipCenters franchise owners need to have adequate savings while building their



businessesExpedia® CruiseShipCenters® franchise owners

invest around $150,000 and $250,000 to get their business off the ground. Our startup costs are relatively low for a retail business, in large part because there is no fancy equipment or machinery that needs to be purchased during the build-out phase. The Vacation Consultants who work at Expedia CruiseShipCenters locations are independent Vacation Consultants who earn commissions for booking travel.

In addition to the initial costs of getting your business open, we recommend franchisees have at least $100,000 set aside for working capital during the first three months. That cushion will help you during the ramp-up phase. Delayed gratification is the name of the game for an Expedia CruiseShipCenters owner. Franchisees and their

team of Vacation Consultants typically start earning commissions once customers begin their travel. That means that if today you sell a cruise that departs six months from now, you will receive your commission in six months, not today. As your business matures, your team grows, and your clients depart, those commissions begin to snowball. For a detailed look at projected revenues for years 1-3, visit our “How Much Can I Make?” page.

Here is a detailed look at start-up costs, from Item 7 of our 2016 Franchise Disclosure Document:

These costs are outlined in detail in our Franchise Disclosure Document, which is provided to candidates during our mutual evaluation process. To learn more, fill out the form at expediafranchise.com to start a conversation and receive a copy of our free franchise report.

Type of Expenditure Amount (low range)

Amount (high range)

Method of Payment

When Due To Whom Paid

Initial Franchise Fee $39,000 $39,000 Lump Sum When Franchise Agreement signed

Us

In-person Training - Your Transportation and Accommodation

$750 $2,500 As Arranged As Incurred Suppliers

In-person Training and Additional Trainee $0 $495 As Arranged As Incurred Us

In-person Training and Additional Trainee Transportation and Accommodation

$100 $1,750 As Arranged As Incurred Suppliers

Premises Lease Security Deposit $1,500 $4,000 As Arranged As Incurred Landlord

Utilities and Telephone Deposit $0 $580 As Arranged As Incurred Suppliers

Leasehold Improvements $15,000 $39,600 As Incurred As Incurred Suppliers

Signage (interior and exterior) $1,600 $9,600 As Incurred As Incurred Suppliers

Computers and Software $5,000 $8,200 Lump Sum As Incurred Suppliers

Office Furniture, Equipment and Office Supplies

$12,100 $23,865 As Incurred As Incurred Suppliers

Telephone Equipment $1,800 $3,700 As Incurred As Incurred Suppliers

Insurance $750 $4,100 As Arranged As Arranged Insurance Provider

Professional Fees $500 $3,000 As Arranged As Arranged Professionals

Business License and/or Permits $785 $3,700 Lump Sum As Incurred Local Authorities

Additional Funds Working Capital for the first 3 Months

$20,545 $39,810 As Needed As Incurred Varies

TOTAL ESTIMATED INITIAL INVESTMENT $94,430 $183,900

Amounts shown are in U.S. Dollars and are based on our USA FDD. 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 be provided financial representations from their local franchisor in accordance with their local franchising regulations.



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® CruiseShipCenters® 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 CruiseShipCenters franchise locations in the US (stores that have been open longer than three years) is $172,790. 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 CruiseShipCenters 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 CruiseDesk® 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

North America Median (50th percentile)

USA Median(50th percentile)

USA high performer(75th percentile)

Total Bookings $770,000 $785,000 $1,150,000

Total Departed Revenue $380,000 $380,000 $512,000

Commission Rate 12.00% 12.30% 13.00%

Gross Revenue $45,600 $46,740 $66,560

Commissions Rate Paid to your Consultants 38.00% 40.00% 42.50%

Less Commissions Paid to your Consultants $13,908 $15,006 $24,144

Less Franchisor Service Fees $4,104 $4,207 $5,990

Net Revenue $27,588 $27,527 $36,425



3rd year of operations


USA Median (50th percentile)


Total Bookings $1,565,000 $2,950,000 $3,395,000

Total Departed Revenue $1,170,000 $2,350,000 $2,560,000

Commission Rate 12.00% 12.70% 13.40%

Gross Revenue $140,400 $298,450 $344,040




Net Revenue $83,532 $146,987 $182,508

Of course, Expedia CruiseShipCenters 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 CruiseShipCenters franchised locations:

Mature Expedia CruiseShipCenters locations (open 3 years or longer)


North America high performer(75th percentile)


USA high performer (75th percentile)

Total Bookings $2,855,000 $4,300,000 $4,290,000 $5,715,000

Total Departed Revenue $2,480,000 $3,540,000 $3,015,000 $4,250,000

Commission Rate 12.30% 12.80% 12.70% 12.90%

Gross Revenue $305,040 $423,120 $382,905 $548,250

Commissions Rate Paid to your Consultants 40.00% 40.00% 47.00% 48.00%

Less Commissions Paid to your Consultants $104,796 $163,328 $173,996 $256,968

Less Franchisor Service Fees $27,454 $40,781 $34,461 $49,343

Net Revenue $172,790 $249,011 $174,447 $241,940

These tables are included in our 2016 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 in U.S. Dollars based on our USA FDD. 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.

2nd year of operations




Total Bookings $1,155,000 $1,565,000 $2,375,000

Total Departed Revenue $950,000 $1,085,000 $1,765,000

Commission Rate 12.00% 12.70% 13.00%

Gross Revenue $114,800 $137,795 $229,450




Net Revenue $67,260 $73,146 $112,223



What Makes Someone an Ideal Candidate?Expedia CruiseShipCenters franchisees are team-builders, not solo practitioners

Expedia® CruiseShipCenters® owners come from all walks of life, from big cities and small communities. And their reasons for opening a travel agency range from seeking a change of career, to wanting to earn income on their own terms, on a schedule they can dictate.

What makes an ideal candidate for our travel agent franchise opportunities? An ideal Expedia CruiseShipCenters franchise partner is a leader who enjoys building a team of agents and coaching them to success. They enjoy meeting new people, are passionate about travel, and enjoy helping

other people get the most out of life by exploring the world, exploring new cultures and meeting new people. They also recognize that by working together with a team of independent sales agents, and by recruiting and training sales agents, they can grow their business far beyond the scope of what they would be able to achieve on their own.

Opening a travel agency: Growth mindset

To understand the difference between our business model and the business model of most competitors, it’s useful to look at another industry: home sales. Many people who sell homes become real estate agents. They are independent operators who typically work as part of a real estate brokerage — leveraging the tools, training and offices that their brokerage offers in order to best serve their clients. The owner of the brokerage receives a percentage of the commission off each individual sale. As a result,



someone operating a real estate brokerage can serve more customers by adding and training more agents. Their earning potential is not limited by the number of hours in a day in which they can serve clients. Instead, their earning potential is determined by their ability to recruit, lead and inspire agents to provide great customer service, and by their management skills and devotion to giving agents the tools they need to be successful.

Most travel agency franchises ask franchisees to become travel agents. Selling travel directly and earning the full commission yourself is the fastest route to $1,000, Expedia CruiseShipCenters encourages franchisees to become travel brokers. Being a broker is the fastest path to $1,000,000, because it allows you to build a team with whom you split commissions. Pulling this off requires a larger — though still modest — investment, as well as an eagerness to manage a team and grow a business. Instead of spending most of your time selling travel, you’ll spend most of your time marketing your business, attracting new travel agents to your team, and providing them the training and special travel packages they need to entice clients.

LeadersThe team building comes with a nice fringe

benefit: Instead of working alone from a home office, Expedia CruiseShipCenters owners are surrounded by friendly agents who share a passionate for travel and who love to share ideas and help each other deliver great experiences to clients. The togetherness fosters sharing and camaraderie, and makes the business a fun place for agents to work and a nice place to spend your time as an owner.

What is the Role of a Travel Agency Franchise Owner?Franchisees serve their travel agents to grow their team and maximize revenue opportunities

Businesses thrive by keeping their customers top of mind. For Expedia® CruiseShipCenters®, our customers are our franchisees. Everything we do at the corporate office is designed to assist you as you work to grow your business. Our success is reliant upon your success, so we work hard to give you the tools and support you need to thrive.

For Expedia CruiseShipCenters franchisees, the customers are their travel agents. Franchisees work hard to recruit franchise travel agents, help them learn the tools available for creating custom travel packages, help them master listening and consultative sales, market their location to attract new customers for their agents to serve, and create an engaging office culture that encourages sharing and teamwork among independent travel agents.

When you join Expedia CruiseShipCenters as a franchisee, one of the first training materials we give you is The E-Myth, which outlines how entrepreneurs can become trapped if they insist on doing all the work themselves rather than embracing systems and hiring employees. That book tells the story of a cupcake baker. Her friends compliment her pies, and she decides to open a pie baking business. She’s a great pie maker, but struggles to create systems and winds up working crazy hours. The book suggests that in order to grow and keep your sanity, you need to create (or embrace) systems and become a manager and a leader. When you become an Expedia CruiseShipCenters franchisee, you will learn how to sell travel, but that’s not your ultimate role in the business. Your role is to coach, manage, motivate, lead and build your business.

Here are the four areas where franchisees should focus in order to build a strong team and successful business:

Recruitment & onboardingOne of the great things about owning a business

is that you get to build your dream team. As you



recruit independent travel consultants to sell Expedia CruiseShipCenters vacations, you will be putting together a team of warm and energetic people who love to have fun and thrive on helping others have a good time. Our Navigators are fun, lively people who are a joy to be around. The great news is that attracting them to your business is fairly simple. As you market your business with help from headquarters, and as you give travel seminars and meet with community groups, you’ll meet a lot of people who love travel and would like to sell it. We have a strong training system to help people with little or no travel industry experience learn how to sell custom vacation packages. By inviting passionate people to join your team and providing them the training and coaching they need to become successful, you can exponentially grow the sales potential of your business.

Planning and performanceExpedia CruiseShipCenters uses powerful custom

software that makes it easy to find a cruise, book and cruise, and invoice. The software also makes it easy to market to your customers and encourage repeat business, which is hugely important. Cruise customers overwhelmingly love their vacation experiences, and most of them are ready to book again within 18-24 months. By staying top of mind, you can ensure repeat business and lifelong customer relationships. Our software also helps you track your key performance indicators, which helps you track your goals, measure ROI, and make adjustments to your business.

Marketing and promotionsExpedia CruiseShipCenters does a lot of work

designed to drive enthusiastic cruisers to your door. Expedia® is the biggest brand in the travel industry, and the Expedia name gives our franchisees instant credibility among customers, and helps us win an initial conversation. We send out direct mail pieces to likely customers, advertising your grand opening and promotions, and helping them understand that you are available in their community for travel consultation. As a franchisee, it’s your role to educate your travel consultants about promotions, and to host events at your center — including some afterhours and weekend events — so customers can come in and learn about exciting travel options.

Leadership and recognitionAs you build your team by recruiting people who

have a great attitude, you’ll want to keep your travel consultants happy and motivated, and one of the best ways to do that is by recognizing their success. Recognition should be about more than generating sales. After all, a salesperson needs to build a range of skills and knowledge before they become a top-tier travel consultant, and there are plenty of milestones along the way that are worth celebrating. When people complete training goals, you should recognize them. When they ask the right questions and have a great conversation, you should recognize them. When people do a good job of meeting potential customers at a prospecting event, they should be recognized. When they do an excellent job servicing a customer, they should be held up as an exemplar of what we stand for. As you help people develop the right behaviors, you will help them become more successful — and you will benefit from their success.

What Makes Our Culture Special?Franchisees and travel agents work together to serve customers and have fun

We call Expedia® CruiseShipCenters® franchisees our partners for a reason. It’s because we’re in this together, and the more we grow, the better we become. When franchisees gather together for our regional meetings, our annual cruise meeting, or our land-based annual convention, one of the highlights of the experience is getting to meet our travel agent business owners and their travel consultants. We swap travel stories and experiences, build friendships and share experiences that help each of us better serve our vacationing clients.

“Stronger.Together®” is at the heart of our culture. It’s our mantra, and it didn’t come from market testing or a corporate brainstorming session — it came from the mouths of our franchisees as we worked together to grow our travel agent business in the early days of the franchise system. Working together, we are able to create state-of-the-art systems that allow us to provide unparalleled service



to customers. Working together, we are able to pool our buying power to negotiate deals and perks that set us apart in the industry. Working together, and by leveraging both our interpersonal relationships and the systematized knowledge of our team members, we are able to develop custom travel plans that allow customers to escape cookie-cutter travel and enjoy spectacular vacations without having to stress over every detail themselves.

Working together, we have fun. We asked Franchise Business Review to survey our franchisees in 2014 to gauge their satisfaction with the brand, and 90% of them agreed that our “Stronger.Together” culture was excellent. Not just good — excellent.

And it’s excellent for the travel agents who work with you to grow your business, too. Thanks to the offices our franchisees provide, independent travel agents don’t have to be holed up in their home

office. Think about the sales professionals that you know. The best ones are dedicated professionals, and they are also incredibly social. They love meeting people, sharing stories and ideas, and helping people solve problems. When you fill an office with a group of friendly professionals who are passionate about travel, the enthusiasm is contagious. By bringing them together, providing training, and allowing them to share knowledge and support one another, you allow them to get better results and have more fun in the process. It’s awfully hard to have a fun conversation about Tahiti with your cat while sitting in your home office. Expedia CruiseShipCenters offices allow independent travel agents to blast past that drudgery and replace it with camaraderie.



How Do I Get Customers?Expedia CruiseShipCenters’ strategies and tools help franchisees win business

According to Cruise Line International Association, an organization that conducts continual analysis of the industry, cruisers spend more than $20 billion a year on their vacations. One of the major ways we help our franchisees succeed is by developing and executing strategic marketing campaigns to keep travelers engaged and informed.

Expedia® is a household name and a dominant brand in the travel industry. Our name is a powerful tool that gets us noticed by customers. Our marketing systems build upon that name recognition to drive customer engagement and turn “interested travelers” into repeat customers.

This is how we help franchisees grow their businesses:

How to become a travel agent: Our marketing strategy builds customer engagement

A franchisee must commit to between 18 and 24 months of branding in their community. For a new center, the primary job of the franchisee is to create awareness of the business and attract people. Our name and resources are a big help.

“We tend to get attention just by having a presence in the community,” says John Mast, Vice President of Marketing.“Franchisees are often able to get some early news coverage, because the media likes the story that an internet giant like Expedia is opening a storefront.”

Everyone knows Expedia, so franchisees need to make sure potential customers and agents know about the Expedia CruiseShipCenters location in their community. That’s accomplished through a mix of recruitment events, networking groups, and public relations. Our franchisees opt into a marketing

program to send printed flyers developed by our corporate marketing team called Vacation Specials. This targeted promotional mailer is delivered into carefully selected households of likely customers. Thanks to our close relationships with cruise lines, we are able to deliver such marketing efforts for pennies on the dollar compared to what most businesses pay for custom printing and targeted mailing.

As franchisees start their business, their most important mission is to meet potential customers, find out if they are interested in travel, learn what types of travel and destinations they are intrigued by, and enter that information into CruiseDesk®, which contains a customer relationship management system that ties directly into our national marketing efforts. A tremendous amount of targeted marketing is conducted by Expedia CruiseShipCenters’ headquarters team.

How we use marketing strategies to increase your local sales

We use a strategy called permission marketing, where we send people personalized email newsletters on the behalf of local Expedia CruiseShipCenters owners that are specific to the client’s interests. When the client clicks on the email, they are directed back to their own Vacation Consultant’s website which shows their photo



and contact information on every page. Even if a customer chooses to book their cruise through the website after clicking the email link, the booking and commission will always go back to that local Center and Consultant.

Cruises are not commodities, and people have a lot of questions before they book. Because it’s a large purchase, people also tend to do a lot of extra research. Not every cruise customer is the same. One may want to cruise the Caribbean and kick back with a rum cocktail. Another may want to cruise the Danube and spend part of each day exploring the great cities of Europe. An older couple traveling alone may prefer quiet sophistication, while a family with young kids may have a much better time cruising on a ship that has its own small waterpark. As a result of so many different cruising preferences, we need to provide customer-specific fliers and emails over and over again, with new details and updated information tied directly to their interests.

As cruising continues to expand into the mainstream, the image of cruisers as retired couples in Hawaiian shirts no longer defines the cruising demographic. According to CLIA, the average age of a cruiser is 49. Younger people are cruising in rapidly growing numbers, as people in their twenties and thirties who grew up cruising can finally afford to do it themselves.

“There is a whole group of people who have been cruising for their whole lives,” says John. “I know I want to take my kids on a cruise. It’s great to see demographic trends are really strong: middle-aged buyers are really coming in, as are Baby Boomers who take multigenerational cruises with their families. Now, the next generation that cruised as children can afford it on their own, which is great news for the future of the industry.”

Once people have booked to cruise, we start sending them a magazine — Dream Voyages — that is produced on behalf of our franchisees and lets customers know about ships, destinations, and special Expedia CruiseShipCenters promotions.

The tools mentioned above represent just a fraction of our marketing system. By combining these with other efforts, we help generate a steady stream of leads that you and your team can convert into clients.

Who Are Our Core Customers?Expedia CruiseShipCenters franchise owners are benefitting from the broadening cruising demographic

The image of a retired couple in Hawaiian shirts no longer represents the cruising culture, which has been broadening to include all demographics over the past several years. According to Cruise Line International Association, which conducts continual analysis on the $42 billion cruising industry, more and more people of every age and from every walk of life are cruising at rates that reflect the significant growth the industry has been experiencing for decades.

According to CLIA, the average age of cruisers is 49, and their average income is $114,000. Generation X and Millennials, two generations that grew up in a cruising culture, are now old enough to book their own vacations and are showing a preference for cruises. According to CLIA, those ages 25 through 39 now make up 31% of the overall cruising market. Retirees are still actively cruising, making up 28% of the overall market. This multi-generational desire to cruise is something that our Expedia® CruiseShipCenters® franchise owners are experiencing at all of our 220 locations.

“While we do get a lot of people who have cruised before and a lot of retired people, what is exciting is that we getting more and more families who are discovering how fun it is to cruise together,” says Joyce Ripka, owner of an Expedia CruiseShipCenters franchise in Quebec, Canada. “Our customers see the value in cruising, and they are willing to pay more to let us take charge. They want the good value and the good advice.”

Repeat customers are buying more cruises more often

While CLIA reported in 2014 that 38% of people who cruise are first-timers, 86% of all cruisers expressed the desire to cruise again. Once people have been on one cruise, they tend to book more expensive subsequent cruises — taking fuller advantage of excursions and other options to make their vacations more memorable.



“We have a lot of what we call ‘customers for life,’ ” says Jennifer White, co-owner of an Expedia CruiseShipCenters franchise in Fort Lauderdale, Florida. “The Expedia® corporate training program has taught us how to create a system that will create customers for life from the first time we reach out to them to the time they get off the trip ready to plan the next one.”

Cruisers put a premium on expert guidance

Because cruises are expensive, customers want to ensure that enjoy every penny they are spending. That’s why they are eager to have experts they can talk to and learn from, and who can design travel plans that aren’t cookie-cutter. According to Cruise Lines International, 75% of cruises are sold by travel agents (2015 North American Market Profile). Even in the age of the internet, planning a cruise can be too complicated and involved without a consultant to serve as a guide. The positive experience our Vacation Consultants give our customers is the reason our customers keep coming back to us to book their subsequent cruises.

“There is a whole group of people who have been cruising their whole life,” says John Mast, Vice President of Marketing for Expedia. “We are starting to look at the next generation of buyers that are coming up the ramp. Generation X’ers grew up cruising, as did Millennials — and they are starting to book their own vacations. It’s great to see that those trends are really strong. Another massive trend is the multi-generational cruises, where retirees are taking their children who, in turn, are taking their children. Baby Boomers, who are retiring at a rate of 10,000 people a day, are enjoying multi-generational cruises with the kids they took cruising years ago — who now can afford it on their own, which is great news for the future of the industry.”

Our travel agency business plan isn’t limited to booking cruises: we also help our clients book land vacations as well, which provides another revenue stream to benefit our franchise partners.

Who is Our Competition?Why we beat online travel sites and home-based travel agents

Had you heard that the internet killed travel agencies? Not so. Not at all. If you just want a flight, a hotel, or a car, you can probably find and buy what you need online — especially if you are traveling within the country. But once your travel plans get a more complicated, the internet stops being a “convenient shopping place” and becomes more of a maelstrom of confusion.

According to Cruise Line International Association, an organization that conducts continual analysis of the industry, 75% of cruise guests book their cruises through a travel agent.

Cruisers prefer to book their vacations with the help of an agent — while cruising is popular, it isn’t cheap. Customers want to be sure that they are getting every penny’s worth out of what they spent on their vacation. One of the great things about cruise vacations — but also one of the reasons they can be complex to book — is that there are so many options for destinations and excursions. There are myriad details and options to sift through, and an experienced agent can guide a customer through the process to build their dream vacation.



The guidance we offer clients, paired with the deals we are able to negotiate, mean that online travel companies are not major competitors for Expedia® CruiseShipCenters® franchisees. In reality, they are an ally. Cruisers often start their research online, then they come to us for help sorting out the details. As part of the Expedia® family, we are able to pair our specialized knowledge of cruise vacation planning with the resources of one of the world’s largest travel brands. We are leaders in the cruise travel market, and thanks to Expedia, we also have the tools to help customers arrange the rest of their travel at great value, too.

What sets us apart from other travel agencies for sale?

Our scale and our branding, paired with extensive proven systems for running your business, set us apart from independent travel agencies. We stand out from other travel franchises, too.

Other travel franchises typically have extremely low start-up costs — even lower than ours. That’s because their franchisees operate home-based businesses and operate as travel agents who sell trips directly to customers. This is the business model of our competitors: CruiseOne, Cruise Planners, Results! Travel and Travel Leaders.

Expedia CruiseShipCenters takes a different approach, one that increases the revenue and income potential of the businesses. Our franchise owners are working in brick-and-mortar storefronts. Those storefronts provide visibility, they project

legitimacy, and they inspire interest among neighbors who are surprised to see an Expedia storefront.

For Chris Meyer, an Expedia CruiseShipCenters franchise owner in Orange County, California, having a business committed to being visible in his community encouraged him to exit a 30-year career in the newspaper industry and buy one of our travel agencies for sale.

“I think the Expedia name is huge. It is a household name that has instant credibility and instant familiarity,” Chris says. “And also the instant thought: ‘Oh, they are big — they must have good prices.’ That is a big differentiator. Most of our competitors don’t have a big brand for people to connect with. Some of our competitors are affiliated with American Express, which seems a little yesteryear. We all remember travelers’ checks, but that seems yesteryear, too. Expedia is now. Our folks are committed to technology. It is at our core, and that gives us a competitive edge.”

An Expedia CruiseShipCenters Franchise is more than just a retail travel agency

Most importantly, the storefronts serve as a place to conduct business, manage and train your team, and host events for the public. While competing franchises help people become travel agents, we help people become travel brokers who manage teams of agents.

For Noam Meppen, an Expedia CruiseShipCenters



franchise owner in Phoenix, Arizona, our business model is what makes his business viable and profitable in today’s competitive marketplace.

“In the cruise sales segment of travel, there aren’t a lot of retail players,” Noam says. “Cruises are usually sold through travel agents — some consist of call centers, which are farms of desks, where people are making calls. … There are a few travel franchises that are home-based models with solo operators. We’re different in that it is a brick-and-mortar retail store in a shopping center, and there is a sales staff that works under the franchise owner — with commissions split between the owner and the Vacation Consultants. This model allows me to scale and open a couple of locations in the city and generate more revenue and wealth.”

What is Our Startup Process?Expedia CruiseShipCenters franchisees get a lot of help starting their businesses

Expedia® CruiseShipCenters® provides extensive training and support to help franchisees learn how to sell travel packages, how to leverage the wealth of information that we bring to the table, and how to develop a team of travel agents to power the growth of your business. We have more than 115 people on our headquarters team that are dedicated to supporting the success of our franchisees. Here’s a big picture look at the training and support we provide during the startup phase:

Getting started with trainingOnce you sign a franchise agreement, our startup

coach will help you make sure your company structure, banking licensing, and other operational items are complete. Then your training begins. You’ll start by learning to become a Vacation Consultant. It won’t be your ultimate role in your business, but understanding this important sales role will make you a better team leader to the Consultants who will help you build your business. It’s a 12-week program, driven by online coursework that is designed to help you learn how to have great conversations with people about vacations, and to learn about customers and their preferences so that you can match the right person with the right ship and destination.

Location selectionAs you are completing your online training your

startup coach will help you navigate the process of choosing a location, will help you work through the process of getting your business license and any needed certifications, and will help you follow a checklist to oversee the buildout of your location and get your equipment ordered at the right time. The startup coach will also help you schedule a visit to our Vancouver headquarters, for your next level of training.



Cruise Management AcademyNew franchisees attend a weeklong

Cruise Management Academy at Expedia CruiseShipCenters headquarters. During this training, you’ll learn about the tools, systems and support that are designed to help you manage your team and grow your business.

“It is amazing,” says Jennifer White, who owns an Expedia CruiseShipCenters location in Fort Lauderdale, Florida, with her husband, Kevin. “You go through a week of training at the corporate office in Vancouver, which is a lot of information. It’s like, ‘open mouth, insert firehose.’” It’s definitely a comprehensive introduction to the business. To help you digest the material, your startup coach will pair you up with a dedicated Franchise Performance Coach who will help you develop the structure of your business and establish best practices. We also have more than 100 people at our headquarters who are dedicated to answering your questions, and we’re very responsive. When you call with a question, expect to hear back within an hour or two with an answer. Often, responses are much, much faster.

Team recruitmentThe next step of your journey is team recruitment.

Expedia CruiseShipCenters franchisees are fortunate in that people who love to sell cruises are enthusiastic cruisers themselves. As we reach out into your community with marketing to attract customers, we also reach an audience of people who would love to be part of your team. Typically, we look for outgoing people with warm personalities who are the types who don’t just travel alone — they take eight friends with them. These pied piper types are perfect Vacation Consultants because they are passionate about travel and about sharing wonderful experiences, since that’s what we’re in business to do!

Generally, you will have five or six Vacation Consultants when you first open your business, and that should quickly grow. As Consultants join the team, they will go through the 12-week consultant training program to learn how to sell travel, and you will help them improve their skills and gain confidence.

Grand openingOnce your business is open, your Franchise

Performance Coach will work with you to plan a Grand Opening event at your office, which is a great opportunity to attract a crowd of customers, draw media attention, and win a lot of business. The Grand Opening event does not always happen immediately after your doors open. Instead, we like to time the event to coincide with one of our national promotions, which roll out every couple of months on a regular schedule. By tying your Grand Opening event to a heavily-promoted travel deal, you make a much bigger splash.

How Will You Support Me?Franchisees enjoy robust ongoing support to help them grow

Expedia® CruiseShipCenters® has more than 100 people in its corporate headquarters in Vancouver, and we share one mission: To empower our franchisees with a proven system to grow a profitable and valuable business.

For us, that means giving franchisees the tools, systems and support they need to be successful, and helping franchisees troubleshoot issues by offering



support in the field, as well as outstanding online and phone support. Great support also means great communication. When you call us for a question, we will return your call promptly, armed with answers.

We’ll also be in touch frequently to help you optimize your business. On the day you open your business, your Franchise Performance Coach (FPC) will be with you to help you get acclimated, to answer your questions, and to help you get off to a strong start. Expect your FPC to be in touch regularly, especially during the first two years you are in business, as you work together to ensure that your office develops a strong sense of teamwork and a culture of connectivity so everyone is able to get the best results.

From here out, your FPC will also work with you, checking in regularly to see if you are having any challenges and helping you troubleshoot your business and look for ways to optimize your performance. Your coach will also play a significant role in establishing realistic expectations, including help with goal-setting, benchmarking and forecasting sales.

We make it easier for you to lead your team

One of the things that makes Expedia CruiseShipCenters special is that we do a lot of work at our headquarters in Vancouver to make it easier for you to train your team of travel agents. We equip franchisees to be great leaders.

Every month, franchisees close the doors one evening for a team meeting and training event. They may set out wine and cheese for the travel agents on their team and lead a seminar that shares best practices for increasing sales and customer satisfaction. The seminars are built by our corporate team, which provides a presentation for franchisees

to share and also provides a detailed Q&A guide that franchisees can use to answer questions. Seminars may also include in-person presentations from cruise line representatives who are eager to answer travel agents’ questions about specific ships, destinations, and excursions. The seminars help your team continue to grow their expertise, keep them excited, and help them understand how to generate better results for themselves and the business.

In order to help our franchise owners to become terrific leaders (even if they have no industry experience), Expedia CruiseShipCenters has established our own sales training program called The Navigators Approach. This step-by-step sales methodology was developed exclusively for Expedia CruiseShipCenters and helps franchisees teach their Consultants how to sell, even if they don’t come from a sales background. With a suite of leadership tools and train-the-trainer workshops for franchisees, we help you deliver The Navigators Approach with confidence and continue to coach your Consultants to sales success over time.

Our sales training program is complemented by our Consultant recognition program called The Navigators Club. This tiered system rewards Vacation Consultants as they achieve higher and higher sales levels, thereby incentivizing your team to work hard for you!



We help you adjust to new roles in your business

If you are familiar with Michael Gerber’s book “The E-Myth,” then you know that one of the challenges business owners must overcome is the desire to do everything themselves. For Expedia CruiseShipCenters owners, that challenge plays out this way:

In your first few months, as you are recruiting Vacation Consultants, you will also be winning over your first customers and serving those customers. Our business model is designed so that the travel agent who sells a trip receives part of the sales commission, and the owner receives the other portion. As an owner, you get the whole commission to yourself for the first few months as you sell some trips without help from an agent. Keeping the entire commission can be very tempting, especially for a new business owner eager to increase bottom-line revenue. The trouble is, acting as a travel agent can take you away from the recruiting and training activities that are key to growing your business.

Our Franchise Performance Coaches work with owners to help them transition to a management and coaching role, which frees the franchisee to recruit, train, network in the community, and conduct local marketing activities. Our most successful franchisees hand off customers to travel agents quickly and concentrate on growing and nurturing their team. In much the same way that Expedia CruiseShipCenters recognized our franchisees as our customers, our most successful franchisees see their travel agents as their true customers. If you make the business work for travel agents, those agents will find and serve customers for you, generate a much larger volume of sales, and reward you with returns that would be impossible to achieve on your own. Acting as your own agent is the fastest path to $100, but the fastest path to $1 million is building a team that works with you.

Once this hurdle is cleared, expect Franchise Performance Coaches to stay in touch to help you continue to grow your business. They may steer you toward some great new online training courses

for owners and for agents. They may eventually encourage you to add a sales manager as your team of travel consultants grows. They will also make sure you take advantage of the two biggest business events of the year:

Expedia Annual Franchise Conferences

Expedia CruiseShipCenters provides a lot of direct support to franchisees, but one of the most powerful things we do is make it easy for franchisees to connect with one another. Customers aren’t the only ones who benefit tremendously from face-to-face meetings. Our franchise owners do too.

We host two annual conferences — one on a seven day cruise and another based somewhere in the central United States. The meetings give franchisees a chance to meet, mingle, learn, and have fun. While at sea for our cruise-based convention, franchisees benefit from numerous presentations that share best business practices, industry information, and the latest advancements in our system. When the ship docks at a port, franchisees can depart for fun experiences that build a huge sense of camaraderie that pays dividends year-round by encouraging friendships and teamwork. Our other meeting is shorter and generally land-based (Las Vegas is a popular destination) and is more business-focused.



How Do I Scale the Business?Unlike the competition, our travel agency franchises are designed to grow into large enterprises

Expedia® CruiseShipCenters® are designed for our owners to scale up. While many travel businesses are operated out of a house, our centers are brick-and-mortar locations that promote visibility for our brand and serve as a center of operations for you and your team of Vacation Consultants. With our travel agency franchise opportunities, the sky’s the limit as to how large your franchise can be. The business scales up by expanding your team, expanding their knowledge, and by adding locations.

A mature Expedia CruiseShipCenters location will typically have 30 agents and generate about $4.21 million a year in bookings, which averages out to about $140,000 per agent. The most skilled and dedicated agents can generate much more in sales, while someone who is a part-time agent may just sell a handful of trips each month. Agents earn a commission when their customers’ travels begin, and the franchise owner also earns a commission. Our largest single agency has about 250 Vacation Consultants. There is no reason to settle for having 30 consultants when you can have 50.

Having a large team of agents also expands the power of your marketing. Travel agents tend to be gregarious people, and as they talk with friends and acquaintances, they carry your marketing messages into the community. Developing a team of Vacation Consultants who are actively engaged in selling vacation cruises should be a top priority if you want to achieve your desired success. Recruiting and training are the core functions of an Expedia CruiseShipCenters owner. Because Consultants work for 100% commission, and they only receive payment when a customer travels, building a team of trained and enthusiastic Vacation Consultants can take time. They tend to be people who are passionate about travel, are eager for an interesting gig, and don’t have an immediate need for money (since their earnings take a while to start rolling in).

When you find the right person, though, it can be magical. For Mary Beth Casey, owner of an Expedia CruiseShipCenters franchise location in Fort Lauderdale, Florida, managing her team of 80 Vacation Consultants ensures her success.

“I really enjoy watching my Vacation Consultants go from zero to success,” Mary Beth says. “My nature is that of a nurturer. When my Consultants match my definition of success, that’s the ultimate. I like the benefit of feeling a consultant is rewarded. I avoid selling these days. My Consultants are my customers, and I can say that honestly.”

Our Expedia CruiseShipCenters franchise owners can leverage a number of tools to recruit their



team of Vacation Consultants, including a unique recruitment website to drive traffic to their centers, as well as traditional print and online advertisements and word-of-mouth referrals. One of the benefits of having a center is that our franchise owners can host events for potential recruits. Once a new recruit comes on board, the center acts as a place to coach and train, as well as build camaraderie with your new team

For Noam Meppen, owner of an Expedia CruiseShipCenters franchise location in Scottsdale, Arizona, who is looking to add more locations, scaling up the business depends on your ability to recruit and onboard Vacation Consultants.

“It’s recruiting, onboarding, and constantly coaching and training,” Noam says. “There is no way one person can do all the sales and marketing and handle all the other aspects of the business. There aren’t enough hours in the day. The more strong people you get on your team, the more you can spread your marketing costs across a larger sales volume.”

Expedia®’s name brand and corporate leadership play a significant role in your ability to recruit Vacation Consultants. Our team in Vancouver designs presentations that franchisees use to educate and lead their teams. We gives franchisees the tools they need as leaders. However, the success of your franchise depends on your willingness and ability to grasp those tools and help your team of Vacation Consultants grow.

How We Leverage Our Negotiating Power

Cruise lines recognize Expedia CruiseShipCenters as a valuable partner and are eager to work with our franchisees

Expedia® CruiseShipCenters® is a full-service travel franchise, but we specialize in cruise vacations. Since 1987, we have built our business model upon educating travelers and helping them discover great cruise options for seeing the world. Since then, our sales have grown more than 20% a year on average — three times the rate of the cruise industry overall — and we have become a sought-after partner for cruise lines worldwide. In fact, we are a top-selling company with every major cruise line. That creates several advantages for our franchisees.

The power to secure great deals for customers

Expedia CruiseShipCenters has a team that works with cruise lines to reserve huge blocks of rooms for cruises headed to popular destinations. That allows us to negotiate for group rates and added perks that we call Expedia® Extras. For example, a customer who books through Expedia CruiseShipCenters may receive generous onboard cash credits to spend on the ship, a free wine package, or a free stateroom upgrade. This is in addition to the ultimate perk — getting to work with a knowledgeable travel consultant who can help get the most enjoyment out of a vacation.

“There is so much added value you get of working with a consultant,” says Linda Messina, Director of Product and Promotions for Expedia CruiseShipCenters. For instance, “as a cruise fills up, sometimes the room rates will increase. We maintain the lower rates because we put our own cash down to hold the rooms for awhile.” That inventory of rooms allows centers to sell vacations at rates that others can no longer match.

The power to leverage our expertiseExpedia CruiseShipCenters and our franchisees

support more than 4,300 travel agents on our team, sharing their passion for travel with customers eager to explore. To leverage the vast knowledge and selling power of our team, we created proprietary



software called CruiseDesk®, which combines our knowledge about ships, destinations and excursions with a powerful marketing and booking engine that connects directly to cruise line pricing and inventory. CruiseDeskgives franchisees and their travel agents access to a world of expertise which they can share with clients at the click of a button.

Expertise is important. Cruises are popular, but they are not cheap. Cruise customerss want to know they will enjoy every penny they are spending. That’s why they are eager to use experts they can talk to and learn from, and who can design travel plans that aren’t cookie-cutter. According to Cruise Lines International, 75% of cruises are sold by travel agents (2015 North American Market Profile) which is why cruise lines are eager to work with us and tap into our collective selling power to get our customers onto their ships.

The cruise industry seeks out our franchisees

Because customers prefer to book cruises with an agent, and because we are such a large company and valuable partner for cruise lines, they seek us out.

Cruise line representatives come to Expedia CruiseShipCenters locations to educate travel agents about the newest ships in their fleet and the latest destinations and excursions. Cruise lines also often co-sponsor marketing events with Expedia CruiseShipCenters locations — picking up part of the cost to host a European-themed party to celebrate a new promotion for a cruise to Europe, for example.

Cruise lines also advertise in our customer magazine, Dream Voyages, and in flyers that are sent out to your target customers. The end result? They subsidize much of your marketing expense. They know that every cruise vacation you sell is great news for them, too!

What Makes A Good Location?Travel franchise uses locations to increase visibility, and to serve as a travel hub for nearby customers and agents

What is a good location to open a travel agency? Most competing travel franchises use a home-based business model, and they do it for a simple reason: It’s the cheapest way to start a business. Unfortunately, it also limits the potential of your business because you won’t have a professional location to meet clients and host seminars. In operating out of your home, you sacrifice the visibility and credibility that comes with having a retail location. Most importantly, you won’t have a gathering space to groom a group of affiliated travel agents and help them learn from one another and achieve higher sales, which equates to higher commissions for them and higher commissions for you.

So, what do we look for in a location? Expedia® CruiseShipCenters® travel agencies are in shopping



centers in high-traffic parts of the cities we serve. We recommend spaces that are about 1,000 square feet, and the spaces must be at least 800 square feet. That will give your team a nice work area while also providing you with hosting space for marketing events and seminars. The locations typically start with half a dozen desks that can be easily pushed aside. That way, when a cruise line representative comes to your location to co-host a European or River Cruise event, you’ll have plenty of space to invite customers to learn and have fun.

How we define territoriesWhen you purchase an Expedia CruiseShipCenters

franchise for sale, your store will be located within a designated territory that is based upon demographic criteria including population density, average and median income, and local competition. We define territories by ZIP codes and look for areas with household incomes of $70,000 or more and a resident population of about 200,000. We also study age and shopping patterns when designing territories. Our territories are designed to provide a massive number of likely customers nearby, which makes your marketing more efficient and keeps your store easily accessible to nearby residents who may want to stop in to learn about a new Alaska cruise or Caribbean vacation.

The territory is also designed to provide a strong pool of potential travel agents. The key to growth for an Expedia CruiseShipCenterss owner is to attract, train, and strengthen a team of travel Vacation Consultants — giving them the tools and knowledge to become travel experts and effective salespeople.

A homebase for your teamTravel agents who have an office where they

can meet clients and ask questions almost always outperform agents who work remotely. Your location becomes their workplace. That’s a wonderful thing, because travel agents tend to be gregarious, kind-hearted people who enjoy working together and sharing ideas so they can help their customers have the vacation of a lifetime. We’re better together. As a franchise owner, you provide leadership, develop partnerships in the community, set up group bookings in your community, and help your team members increase sales.

Expedia CruiseShipCenters Franchise ReviewsBest travel franchise: Expedia CruiseShipCenters franchise owners relay their experiences about their second career in the travel business

Our over 220 Expedia® CruiseShipCenters® franchise owners come from a wide variety of backgrounds — many completely unrelated to the travel industry.

We have former journalists, advertising executives, teachers, salespeople — all of whom felt called to put their love of travel and their desire to own a successful business together and break into the $42 billion cruising industry.

“I was ready to get out of the corporate world,” says Kevin White, co-owner of an Expedia CruiseShipCenters franchise location in Fort Lauderdale, Florida. “I came across Expedia CruiseShipCenters, and I thought it would be something I would enjoy doing. I had always wanted to try something on my own. I didn’t want to get to retirement and say that I wished I had tried something when I was in my 30s or 40s, only to reach 70 without ever doing it.”



For Chris Meyer, an Expedia CruiseShipCenters franchise owner in Orange County, California, leaving a decades-long career in the newspaper business to get into travel was unexpected.

“I figured rather than manage the long decline of a newspaper, I should do something else,” says Chris. “I had not been planning to become an entrepreneur, but I saw the Expedia business plan, and it seemed like a strong plan. The idea of a big digital company also doing brick-and-mortar locations to appeal to every segment of the market was attractive to me. I thought it was very forward-looking compared to what was happening in the newspaper industry. I literally saw a targeted ad on my LinkedIn profile and started investigating.”

Many within our franchisee community are empowered by the accessibility of our corporate team in Vancouver, whom they rely on for information, training resources, and business guidance.

“I think they’re just terrific,” says Mary Beth Casey, owner of an Expedia CruiseShipCenters franchise location in Fort Lauderdale, Florida. “They know me, and they know what my goals are. They’re very, very smart. They listen, they’re supportive, and they encourage. As franchisees, we have opportunity to have a voice, which I appreciate. Their strategic planning and marketing has been terrific, as well. I trust them.”

It goes without saying that the success our franchisees are experiencing in the cruise industry, leads them to recommend starting an Expedia CruiseShipCenters franchise to others with a passion for travel and a love for other people:

“I definitely would recommend starting an Expedia CruiseShipCenters franchise,” says Joyce Ripka, a franchise owner in Quebec, Canada. “Especially if they are interested in getting into the travel business. As long as they are comfortable with the franchise system, and by that I mean that you have to use the Expedia programs and be willing to listen to the corporate team in Vancouver. Otherwise, you will not be getting your value’s worth.”

Expedia CruiseShipCenters launched in 1987 and is a leading seller of cruise travel in North America. Our travel agency franchise is rapidly expanding, with over 220 locations open or under development. The growth of Expedia franchise opportunities is driven by three overarching realities: our proven business model is affordable to start and extremely scalable, our focus on cruise vacations makes us a trusted resource among cruise customers who overwhelmingly prefer to book with a travel agent, and the cruise industry is growing quickly.



How Do I Finance the Business?There are several ways to finance an Expedia CruiseShipCenters franchise

There are several options for financing the purchase of one of our travel franchises for sale. Here is a look at the most common avenues for financing, as well as the pros and cons of different types of financing:

1. Home equity loansIf you’ve owned a home for many years, there’s a

good chance you can get a home equity line of credit (HELOC) or a home equity installment loan (HEIL) to finance your new business.

Advantages: They usually have a very low interest rate; they are highly flexible, often with no specific repayment schedule; and they don’t require a lot of documentation, such as an accounting of how the funds will be used. This provides more flexibility for your business.

Things you should know: You’ll need to show enough income to repay the loan through your existing sources of income — your projected

earnings as a franchise owner won’t count when the lender calculates your ability to repay. A real estate appraisal will be required to establish your home’s value.

2. Leverage retirement funds tax-free and penalty-free

If you have a 401(k) or an individual retirement account (IRA), it can be converted into a self-directed IRA to fund your business without incurring early withdrawal penalties.

Advantages: Since it’s your money, not the bank’s, you don’t have to worry about a long loan-approval process. As your business succeeds, you make payments into your retirement account without having to pay interest to a bank. This option also allows you to keep cash in your bank accounts to be available for starting and growing your business.

Things you should know: Your business becomes your retirement plan. You should be confident that you can beat the stock market by building the value of your business.

3. Small Business Association (SBA) loans

These are government-backed loans at low market rates, which eliminates most of the risk for banks. Expedia® CruiseShipCenters® is an SBA approved franchise.

Advantages: You can finance a percentage of the cost of your business, which allows you to conserve cash; the interest rates tend to be fairly low; there is no prepayment penalty; and you can obtain better loan terms once you have a proven track record.

Things you should know: It can take three months or more to obtain an SBA loan, and the documentation process is extensive. The loan also requires 100 percent collateral. If most of your collateral comes from home equity, you may want to consider a home equity loan instead.

4. Friends and familyYou may have friends or relatives who are willing

to invest in your success.

Advantages: They know you, they are typically



flexible on repayment terms and they may have expertise that they can offer your business. They may not require collateral.

Things you should know: If the business doesn’t meet expectations, it may strain your relationships. Family and friends may also seek equity in exchange for their investment, which would create a partnership arrangement.

5. PartnershipsPartnerships can allow two or more people to

combine their resources to purchase an Expedia CruiseShipCenters franchise. If partners complement one another’s skill sets and add value to the business, it can be a great arrangement.

Advantages: You can split management and leadership duties, which gives you greater capacity and flexibility. Since you have multiple people to oversee operations and marketing, you may be able to grow faster.

Things you should know: Partners must have clear guidelines for who handles what and how profits are divided. In addition, to get the most out of your partnership and avoid disputes, clear communication and a shared commitment to the business are essential. A good partnership can be a bonanza. A poor partnership can be the most expensive form of financing — halving potential profits and multiplying frustration.

Meet the Leadership TeamOur dynamic leadership team is 100% committed to our Expedia CruiseShipCenters franchise owners.

Matthew Eichhorst, PresidentPrior to Expedia® CruiseShipCenters®, Matthew

spent 20 years as an entrepreneur, 15 of which was providing Information Technology Consulting and Professional Services. After selling his consulting company to General Electric (GE), he assisted a struggling public company with their financial turnaround until the time that CruiseShipCenters recruited Matthew to assist with its managerial leadership in 2002. Matthew assumed the position of Chief Operating Officer in 2005 until he stepped into his current role as President in 2009. Matthew’s efforts focus around the corporate growth and long term sustainability of our Franchise Partners. In addition to his key responsibilities, Matthew is passionate about leadership development and building high performing teams.

Geraldine Ree, Senior Vice President, Franchise & Supplier Performance Geraldine came to Expedia CruiseShipCenters in 2006 with over 20 years of sales experience. Having previously worked for Princess Cruises, Geraldine had a true passion for the travel industry and cruising. In her role, Geraldine is responsible for all aspects of franchisee performance and places a huge emphasis on creating customers for life – something that cannot be done without her careful attention to developing strategic partnerships with industry suppliers, driving sales results and establishing both short and long term goals within the company. Geraldine loves the cruise industry and believes it provides a fun and exciting business opportunity for everyone involved in the Expedia CruiseShipCenters family.

Bob Tipple, Vice President, FranchisingBob is a long-time veteran of the franchise

industry and has had an accomplished career developing and growing multiple franchise brands



including Subway and Yogen Fruz. He has a passion for business and credits much of his success to building, and working with, highly collaborative teams across all sectors of the organization. Overseeing all of Expedia CruiseShipCenters’ franchising initiatives from development, to start-up, to operations, Bob is passionate about finding creative ways to improve current systems and planning an execution strategy that leverages the strengths of the entire team. Bob believes that the winning formula for any organization must include dedication, passion, and engagement from all stakeholders in the business.

Rob Jacoby, Vice President, FinanceRob came to Expedia CruiseShipCenters in

2003 after 10 years with public accounting firm, KPMG. Responsible for the financial operation of the company, Rob’s role includes everything from performance management, business planning and transaction processing to financial controls, franchising legal, and taxation compliance. Rob is passionate about helping others grow and make sound business decisions and does so by drawing on his past experience and expertise.

John Mast, Vice President, MarketingWith over 15 years at Expedia CruiseShipCenters,

John oversees Brand, Consumer Marketing, Franchise Development Marketing and Public Relations for all of North America. As a high impact leader who articulates a clear vision, John leads, motivates and develops the large Expedia CruiseShipCenters marketing team to achieve industry leading results. John is also passionate about giving back to his community and proudly serves as a Vice Chair of the Board from Canada Scores Vancouver, a not-for-profit after school program for vulnerable youth.

Silviu Hinta, Vice President, TechnologySilviu has been with Expedia CruiseShipCenters

since 2003 and has over 20 years experience in his field. He is responsible for the architecture of all of the company’s web applications and the database structure. In addition, Silviu manages and mentors the Development Team and oversees Expedia CruiseShipCenters’ server infrastructure.

Silviu believes that keeping current with technology trends will help us to not only grow our business, but enable us to be more efficient as a company.

Franchise Development Managers

Jeff Warkentin, Franchise Development Manager

As a former Franchise Performance Coach and Franchise Owner with Expedia CruiseShipCenters, Jeff has experienced all sides of our brand’s proven system. Prior to joining the Corporate Support team, Jeff purchased an underperforming Expedia CruiseShipCenters location in 2007 and grew it into a top 10 franchise in our system before selling it three years later. Jeff now uses his wealth of knowledge on the Expedia CruiseShipCenters model to get others excited about how they too can realize their entrepreneurial dreams and build equity in a fun, growing industry, just like he did.

Daniel Meyer, Franchise Development Manager

Daniel joined Expedia CruiseShipCenters in 2014 after a successful career in franchising. He combines his MA in Education and a BA in Intercultural Communications with more than 20 years of experience in sales, sales management, and business development. As a previous Franchise Owner and Franchise Development Manager with Tutor Doctor, he has a deep understanding of both franchising and business in general and has a passion for helping people find the right opportunity to meet their personal and financial goals.

Geoff Coyle, Franchise Development Manager

The newest member of Expedia CruiseShipCenters’ Franchise Development team, Geoff is excited to unite his background in franchising with his passion for travel. Prior to joining Expedia CruiseShipCenters, Geoff gained extensive franchising experience working for companies like Mr. Lube and 1-800-GOT-JUNK? where he helped



to grow their system from 45 to over 300 units. He also brings extensive sales and leadership skills developed in the retail, restoration and start-up sectors. With a degree in Leisure and Tourism Management, Geoff has travelled extensively and loves that he now gets to sell a product and an industry that he truly believes in.

FAQHow much does an Expedia CruiseShipCenters® franchise cost?

Franchise owners should expect to invest around $150,000 to $250,00 to open an Expedia® CruiseShipCenters franchised travel business.

What makes Expedia CruiseShipCenters different from other travel franchises?

We focus on cruise vacations and are the largest cruise seller in North America. Our franchisees also operate as travel brokers — not just travel agents. Instead of selling trips themselves, they manage and train a team of agents, and benefit from much higher potential revenue and profits.

How much can I make?Mature stores in the United States generated an

average net revenue of $172,790 in 2015. For a fuller look at financial performance — including the ramp-up time for businesses — visit our “How Much Can I Make?” page.

What are the minimum financial requirements to start a travel agency with Expedia CruiseShipCenters?

To qualify for an Expedia CruiseShipCenters franchise, you will need to have access to at least $100,000 in liquid capital and must have a minimum net worth of $300,000 or more.

How much are royalties?9% of the gross revenue paid to you by suppliers,

mostly in the form of commissions.

What size location do I need?We recommend at least 1,000 square feet for an

Expedia CruiseShipCenters office.

How many employees do I need?None. Franchisees support a team of Vacation

Consultants who works as independent contractors. Vacation Consultants are paid commissions for their sales. We recommend that franchisees recruit at least 30 travel agents in their first year. Our support team provides recruiting strategies and training materials to help you grow your team.

How long does it take to open?Once you sign a franchise agreement, we estimate

that your location will be open within four to six months.



What locations are available?Expedia CruiseShipCenters is growing

aggressively throughout the United States, and there are prime territories available in all regions. At the end of 2015, we had 41 locations in the U.S. and 151 locations in Canada. We plan to open several hundred U.S. locations by 2020.

How are you related to Expedia.com?While we’re not directly associated with Expedia.

com, we share a parent company. Expedia®, Inc. decided to invest in our franchise system after we experienced two decades of consistent growth. In 2007, the travel giant formed a partnership with CruiseShipCenters® to tap into our network of brick-and-mortar locations and travel agents to offer personal service to cruisers.

Will I only be able to sell cruises?While cruises are the focal point of our centers,

our Expedia CruiseShipCenters franchises are full service travel agencies offering vacation packages, tours, resorts, flights, travel insurance and more more at a competitive prices and commission levels because of our robust non-cruise program and our partnership with Expedia, Inc.

Next StepsWhat happens after I submit my information to learn more?

Once you submit your information, you will receive an email with a link to the free Expedia® CruiseShipCenters® franchise report. One of our professional Franchise Advisors will then reach out to you by phone, generally within one business day. The first call usually lasts just a few minutes and gives us a chance to introduce ourselves to one another and address initial questions.

Here’s what happens next:

Step 1: Exploration Phase. During the initial conversation with your Franchise Advisor, you’ll set a time to have a longer call to discuss your business goals and expectations and whether Expedia CruiseShipCenters is the right franchise to help you achieve them. During this phase you’ll also review our virtual brochure and attend an introductory webinar to get a good overview of your franchisee opportunity.

Step 2: Education Phase. This is your chance to dig deeper into the prospect of franchise ownership. You will attend two webinar sessions that will showcase our systems and support. During the presentations you will be able to pose questions to our senior leadership team. At this point we’ll ask you to complete a detailed qualification form to continue moving forward to the next phase.

Step 3: Validation Phase. During this phase you’ll have a chance to review our Franchise Disclosure Document and will have a number of one-on-one phone calls with our President and other Franchise Partners. You’ll then be invited to the Expedia CruiseShipCenters corporate office in beautiful Vancouver, British Columbia to attend your Discovery Day. There you’ll meet members of our Senior Leadership Team and all the people who will support you with your new business.

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