Cruise Planners - The future of franchise ownership.

State of Cruising in 2010

Jason Mattes — Fri, 12 Feb 2010 16:51:13 +0000

It’s an exciting time for the cruise industry and its story from a small, new venture in the early part of the 20th century serving maritime transatlantic travel and its transformation into trend-setting leisure vacationing is one of impressive growth – 118 new ships since 2000, and, since 1980, average annual growth in passengers of 7.4 percent, despite numerous economic downturns and other obstacles.

Make no mistake, the cruise industry was impacted by many of the same challenges facing all businesses over the last couple of years. Fuel prices, H1N1, the stock market crash and continued fluctuations, the housing crisis, corporate restructuring, stimulus plans and bailouts, even the uncertainty of a presidential election and, certainly, declining and fragile consumer confidence. Unlike many other industries, cruising, with an impressive history of recession-resistance, had several advantages. These include vessel mobility and redeployment, ability to quickly adapt to change, effective expense management and, above all, a product with the highest perceived value for money spent. Combined with the excitement of new ships, a proactive travel agency sales network and promotional efforts to create incredible vacation values, cruise lines were able to drive consumer demand and operate at full capacity throughout the most challenging months.

Recently, the Cruise Lines International Association (CLIA) updated the media on the state of the industry. We have included some of the highlights of that press briefing below. For the full story, please visit CLIA’s Industry Update: The State of Cruising in 2010 – A Forecast of Growth and Continued Success.

Industry Growth
Despite the economic turmoil of 2009, the cruise industry continued to grow. Annual passenger volume increased 2.3 percent to more than 13 million people. CLIA further estimates that in 2010, 14.3 million people will cruise, an increase of 6.4 percent.

And according to CLIA’s Cruise Market Profile, almost 34 million Americans intend to take a cruise within the next three years. Statistically, since cruising exceeds traveler expectations and first-timers and past cruisers keep coming back this represents a huge market and positions travel agents for continued success.

Cruise Trends to Watch For
A small snapshot of what cruise lines and travel agents agree on for cruise and industry trends in 2010 are listed below.

Use of travel agents: Travel agents will continue to be an invaluable resource for customers when planning their cruise vacation. Despite, and in some ways because of, the Internet, cruise vacationers continue to use travel agents. Industry-wide, nearly 90 percent of all cruises are sold through travel agents. Some lines report that agent bookings account for as much as 97 percent of total bookings.

Top cruise destinations: The anticipated top cruise destinations for 2010 are the Caribbean/Bahamas, including eastern Mexico, Alaska, Mediterranean and Greek Islands/Turkey, Europe, Hawaii, Panama Canal, West Coast of Mexico, Bermuda, European rivers and Canada/New England.

Couples dominate: Couples will continue to dominate cruise demographics although an increase in growth is expected in families, extended families, and friends traveling together as well. Seniors will also continue to be an important demographic.

Group travel and theme cruises: Strong interest in group and affinity travel which for some lines may be more than 40 percent of business. Popularity of theme cruises, notably music, food and wine cruises will also define cruising in the coming year.

New Ships on the Horizon
After introducing 14 new ships representing a total investment of $4.7 billion in 2009, another 12 new vessels will launch this year. Significantly, the new ships continue to reflect the diversity of ships and cruise experiences available to the traveling public, ranging in capacity and built for everything from roaming the globe in sheer luxury to sailing the waters of Europe’s most famous rivers and the coastlines of North America.

Royal Caribbean International: Allure of the Seas (5,400 passengers)
Norwegian Cruise Line: Epic (4,200 passengers)
Celebrity Cruises: Celebrity Eclipse (2,850 passengers)
MSC: MSC Magnifica (2,550 passengers)
Costa Cruises: Deliziosa (2,260 passengers)
Holland America Line: Nieuw Amsterdam (2,100 passengers)
Cunard Line: Queen Elizabeth (2,092 passengers)
Seabourn Cruise Line: Seabourn Sojourn (450 passengers)
Avalon Waterways: Felicity and Luminary (138 passengers)
Pearl Seas Cruises: Pearl Mist (110 passengers)
American Cruise Line: Independence (101 passengers)

If you’re serious about selling travel and owning your own business, now may be the perfect time to become a travel professional with Cruise Planners/American Express.

Franchising can be appealing even in a not-so-good economy.

Jason Mattes — Thu, 04 Feb 2010 20:11:25 +0000

First, when the economy slows, many people believe that opportunities become harder to find. Not me. History has shown us that strong performers tend to take advantage of downturns in the economy, and buying a franchise is one of the top ways to stack the deck in your favor during a slow economy. It’s because of this that I think it’s critically important that someone provide an alternative for individuals who have been laid off, right-sized or downsized because all we seem to hear from the mainstream media is ways to get another job, to re-brand yourself, to develop a different skill set, etc. There are other alternatives, entrepreneurship being one. Entrepreneurs change they way we think about what’s possible. They have a clear vision of how life can be better for all us even in tough times. Right now, it’s hard to see this when our view is cluttered with obstacles, but with turbulence creates opportunities for success and pushes us to discover new ways of doing things. Do you remember when you were a kid and thought anything was possible? People still can. They just have to know how to do things the smart way, and not waste money they don’t have on strategies that won’t work. Jobless numbers are skyrocketing and will continue to get worse. So far, more than a million people have been forced to re-think their career options or situations this year. But for those that haven’t been laid off or downsized yet, how many actually feel like they’re in control of their destiny in their current situation? I think it’s a safe assumption that most probably don’t, but they put off dealing with the reality of what will be required of them to gain that control. They think that somehow things will eventually change or that some time in the future will be better to take the appropriate action steps. Having been in that situation myself, I can tell you that change doesn’t just happen by itself – there is no magic wand — it only requires a sincere desire by the person to take the necessary steps. And just getting another job isn’t the change that people need. Franchising is the most powerful business system on the planet and is clearly a smart model to help people take control of their own lives and paycheck. Its’ success is manifested in the number of operating franchises, the number of brand names built through franchising, the millions of customers served every day, and the tremendous opportunity it represents to it’s owners. However, starting a franchise isn’t for everyone, but not those that you may think. Many people believe franchise ownership is for the true entrepreneur – the type A personality with the confidence to blaze new trails in the business world. The truth is actually the opposite. Franchising is about following a proven system to replicate the success of the original unit that the franchise is based on. Entrepreneurs often create innovative new businesses, but it’s the Steady Eddie types that tend to produce most of the success in franchises. The ability and willingness to follow directions is a key marker of someone who would make a good franchisee. After all, if the franchisor has already established a franchise model that works, a person would be wasting time if he tried to fight the system and create something different. Besides the ability to follow a system, there are a number of other personality traits common to most successful franchisees: people skills, results oriented, being a calm and confident leader, maintaining a positive focus, someone that’s risk adverse, resilient and a big picture thinker. So if someone has some or all of these traits, then they need to next know how to find the right franchise for them. The first and most important part of the franchise research process is to conduct a brief self-assessment of personal strengths, weaknesses, likes, dislikes and resources. These psycho-social dimensions will guide individuals through the many decisions they’ll face in the franchise evaluation process. Without these personal signposts, it’s easy to lose your way. After that, exploring your options, developing a list of favorites, speaking to existing franchise owners of your favorites and reviewing the franchise agreement will simply allow you to have the information you need to make an informed decision based on your own individual preferences.

What happened to our dreams and goals?

Jason Mattes — Thu, 04 Feb 2010 17:49:32 +0000

I recently came across an interesting discussion in one of the social networking groups that I found quite intriguing, and downright enjoyable to read. It wasn’t about franchising. Nothing about social media. There was no mention of business. Money or finances weren’t a major part of the equation. And, surprisingly, just a few mentions about the poor economy. The discussion was actually about the concept of dreams and goals. It was enlightening that there were over one hundred responses in a relatively short period of time. Definitely a considerable amount when compared to other discussions within the same group. Often, the responses were being posted one right after the other. It seemed like people wanted to talk about their dreams and goals, almost as if they had been prohibited from doing so before.

In light of the economic troubles surrounding us today, it seems the subject of dreams and goals has hibernated like bears for winter. During good times, dreams and goals are out in the open, shared by many. Actually bragged about by some, and the end results, often materialistic, flaunted by others. It’s ironic that we’re taught that in order to achieve a goal, a key element in doing so is to enlist the assistance of people that can help us achieve the goal. Yet, in the current economic climate, discussions about dreams and goals have subsided, and almost disappeared. It’s almost like we feel guilty to have such discussions at this time. Or, that we should just be thankful for what we have and dismiss our dreams and goals as frivolous. What about the dreams and goals that are not financially driven or rewarding? Why have they been put on the back burner? Well, to all of this, I say “enough is enough.” Yes, enough of the poor me attitudes. Enough of the pity parties. And, enough of the social “rubbernecking.” Social rubbernecking is when people excitedly talk about other people’s miseries – i.e. neighbor lost his job, their house was foreclosed on, he was having an affair – it’s just like slowing down to look at the horrific car wreck!

Now is definitely the time to put all the negatives aside and re-ignite the passion behind our dreams. It’s the perfect time to pull out those lists of goals and remember why we wrote them down in the first place. Why they’re important. How they’re important to people close to us? And, how our lives would be positively affected upon achieving our goals and making our dreams come true. Certainly, it’s time to face the realization that it’s up to us to make our dreams and goals a reality. They’re ours. We own them. No one can take them from us. To paraphrase a quote I’ve seen many times in discussions about success, “There are people that make things happen, some that watch things happen, and others that wonder what the hell happened?” Could you tell which group of people are most successful at achieving their goals and making their dreams come true?

Outlook for Franchise Businesses in 2010.

Jason Mattes — Thu, 04 Feb 2010 17:47:51 +0000

The franchise marketplace we have today is vastly different from anything I’ve ever seen before, but recessions have typically been the strongest times for franchise network growth. Part of this is due to the tendency of unemployed and under-employed individuals to become more entrepreneurial during recessionary times. For sure, part of the reason for this is that people are left with little choice – the thought of looking for work when no one seems to be hiring is not too appetizing. Given an alternative between that and starting a new business, the new business often wins.

I’m optimistic that this trend will continue. In fact, since a couple of notable economists have indicated that the worst of the recession is over, I’ve already seen people more willing to take out their checkbooks for the right investment, and franchising is an asset in which many will invest. For us, there are other, more fundamental reasons why our franchise can begin and succeed during tough economic times. For one, we do not have heavy initial franchise fees and startup costs as other franchisors do, so it’s a bit easier for us to appeal to a larger audience as our franchise opportunity embraces almost anyone who is ready, willing, and able to make an investment in themselves. More importantly, since many industries are traversing defiant marketplaces without other stakeholders, it’s advantageous for us, that the travel industry has spent the last 30 years educating consumers that a vacation is birthright, so while discretionary spending is down, people are still booking travel. And with 37 new ships to be delivered into the water in the next 36 months, the cruise lines are stepping up to the plate with the some of the best deals that I’ve seen in the last several years because every cruise line is trying to get the consumer to buy-in to their particular shipboard experience and brand, which is good news for our franchisees who can piggyback off of these national campaigns and increase their individual unit value to the consumer.

However and speaking in franchise generalities, my optimism is tampered in part because of the change in loan practices and sluggish delivery of funds to many small businesses who are starved for capital. What’s worse, with the money people sticking to the sidelines, many qualified new franchisee investors are experiencing denied loan applications. If the lending community ever gets back into the business of lending, then 2010 will be markedly better for franchisees and franchisors versus this year. If not, we’ll still be okay because franchising is a time-tested, well-oiled machine that plows through challenges and persistently produces success, but the industry as a whole may have to adapt to a new normal if the moneychangers don’t get back into the game. The new normal may find some franchisors becoming more involved in the financing arm of the franchise purchase and this could result in a protracted and less robust expansion in the short term than previous post recession years because franchisors will become more sensitive to risk and will expand more slowly. However, since the key to what makes the business of franchising thrive so soundly lies in the franchisees who make it run, this could actually benefit the industry going forward.

In any event, since franchising commands over 40 percent of our nation’s total retail sales and service dollars, franchisors will keep finding their way to do it bigger and better than before simply due to the enormous responsibility that we have in the marketplace. It may be a bit painful and some may need to transform their business structure along the way, but I’m confident we’ll get it done. With forward-looking leadership, we could look back at this time as being another moment that validates the wonderful and empowering method of distributing products and services that franchising represents.

Stat for stat, a home-based business is a $427 billion industry.

Jason Mattes — Wed, 03 Feb 2010 20:36:49 +0000

Home-based business opportunities are growing daily, along with a new spirit of entrepreneurship and independence. Today’s technology makes working from home far more common today than just a decade ago. Though the general belief may be that women far outnumber men working at home, this is not the case. Men and women are equally as likely to work out of their home, and there are more parents working at home than singles.

Information and resources are readily available for individuals looking to find out how to start a home-based business. It’s becoming more and more acceptable in main stream business to work from home at least part time, if not full time. Statistics show that home-based business represents a $427 billion industry. This number exceeds the pharmaceutical, food and consumer good industries combined. The Small Business Administration estimates that 52 percent of all small businesses are home-based. Due to lower expenses, particularly in rent and labor costs, the average home-based sole-proprietorship consistently gained a higher return on gross revenue at 36 percent, versus 21 percent for the traditional business model.

While there are many options out there from which to select from, one thing remains obvious. You must do your homework first. Be sure to align yourself with a strong, reliable, secure and established brand, like Cruise Planners/American Express, and make sure you check their credentials. It should be a real business requiring an investment. Do they have mandatory training? Have they been recognized by their respective industry? Are they on advisory boards? Do they provide a list of current owners to talk to? These are the types of companies that you want to align yourself with to protect yourself and your investment.

If you find one that matches your needs and is compatible to your short and long term professional goals, then the sky’s the limit. Home based businesses and the capability they possess is one area of the U.S. economy that will continue to grow. This is especially true during an economic downturn where traditional jobs are more difficult to find.

Why The Heck Should Folks Listen To Me?

Jason Mattes — Mon, 01 Feb 2010 17:02:18 +0000

I mean c’mon. I’m 31 years old. I’ve only been in the franchise industry for seven years. I don’t belong to any special membership clubs. I’m just the Director of Franchise Development for a company located in Coral Springs, Florida. So…why?

Here’s why:

I care about the franchise industry.
I love the business model of franchising, and it’s potential.
I want to provide prospective franchise owners a place to get their questions answered.
I want to help prospective franchise owners make the right purchasing decision.

Want more? Alrighty then. Would it help if I said I’ve been fortunate enough to work with over 325 franchise owners as I’ve led the franchise expansion of three different franchise companies? Or that I worked on Wall Street? Or maybe you’ll change your mind when you learn I played professional football in the Arena Football League. Shouldn’t you listen to someone who is 6’3″ and 225 lbs and loves contact?

And if you’re still a non-believer, simply understand that I have a strong appreciation for entrepreneurs who simply want to take back control of their lives and who genuinely want to make a difference in their local communities. I have this natural affinity to entrepreneurs because I am one as well.

Michelle Fee, CTC and CEO at cruise3sixty 2009 in Ft. Lauderdale, Fla.

admin — Tue, 22 Dec 2009 12:22:51 +0000

>> watch now

Michelle Fee, CTC and CEO at cruise3sixty 2008 in Ft. Lauderdale, Fla.

admin — Tue, 22 Dec 2009 12:21:51 +0000

>> watch now

Vicky Garcia, SVP Sales and Marketing at The Trade Show 2008 in Orlando, Fla.

admin — Tue, 22 Dec 2009 12:20:55 +0000

>> watch now