Advertising and Sales Strategy for a Travel Agent Franchise Marketing Plan

Pages: 3 (1281 words)  ·  Bibliography Sources: 3  ·  File: .docx  ·  Level: College Senior  ·  Topic: Business - Advertising


However, a cost effective approach will also include the setting up of social networking media, and the use of advertising though the media sites, which can be undertaken in a highly targeted manner for as little as $1 a day (Facebook, 2014), but more may be advisable. The use of the local newspaper or radio can also be cost effective.


Aim of Advertising

The aim of the advertising will be to generate leads or enquiries. Most potential cruisers want to talk to an agent before they book a holiday; this is a common trait with any potentially high cost purchase (Dickinson & Vladimir, 2007). Therefore it is enquires that are the most important stage, as without these the travel agent will not make sales. With a closing rate that a good, (but not excellent) agent may have of 40% (Dickinson & Vladimir, 2007), and a desire to sell 100 cruises in a year, the marketing should generate 250 serous leads in a year, or 5 a week.


Sales Plan


Distribution Channel

The sales plan will start with the decision to make sales direct to the customer. Dickinson & Vladimir, (2007) note that most cruisers want to talk to a sales agent or travel agent before booking, so a direct channel may be the best approach. This will allow the travel agent to get top know the customers and find out what they want to make sure they are being sold the right cruise. It is also a distribution medium that may help to create longer term relationship so cruisers will once again return to the same agent for subsequent cruise bookings.


Sales Forecast

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A forecast can be made for the expected level of sales in the new franchise, it is estimated that there will be 100 sales in the first year, with an average cruise value of $5,000, and from this the agency will earn an average of 14% commission, giving revenue for the firm of $70,000. It may also be estimated that the following year there will be a 20% increase as past customers return and more new customers are obtained.


Sales Budget

TOPIC: Marketing Plan on Advertising and Sales Strategy for a Travel Agent Franchise Assignment

The sales budget will need to be managed carefully and kept low due to the initial low revenue. The direct sales strategy will rely on the investor/owner going it alone in the first few years, so they will not have any wages or salaries to pay to others. However, it may be assumed that they do need to draw a wage, and this will be estimated at $35,000. The travel agency is one that can be home based, so overhead and administrative costs may be kept to a minimum, but there will still need to be telephone costs, postage and paperwork, insurance etc. This is estimated at $10,000 per annum.

Table 1; Sales budget



Salary draw




Admin costs


Net revenue



Sales Process

The sale process will usually take place over the telephone, and in many cases customers will already have an idea of what they want. The agent will gather the information and provide details to the potential customer, potentially making alternate recommendation. The agent will gain the sale not only for providing what is needed, but in the way they deal with the calls and provide useful and supportive information it is in the provision of the travel service that they will be differentiated.


Dickinson, Bob; Vladimir, Andy, (2007), Selling the Sea: An Inside Look at the Cruise Industry, John Wiley & Sons

Florida-Caribbean Cruise Association (2012), Cruise Industry Overview - 2012, The State of the Industry,

Franchise Opportunities, (2014), accessed at / on 14th July 2014… [END OF PREVIEW] . . . READ MORE

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