All-Cruise Travel Club
Minimum Start-Up: $500
Average Start-UP: 10,000
Revenue: $25,000 - $250K
Profits: $10,000/Month
One Person Business: Yes
Most Travel Clubs are organized on the premise of building a
sizable membership capable of negotiating discounts with various
travel providers.
The Travel Club makes money earning a commission every time a
member purchases airline tickets, books a hotel room, or goes on a
cruise.
Today, things have changed quite a bit.
SELLING MEMBERSHIPS
With a swelling membership basis it is difficult for travel clubs
to ignore the profits of charging for membership, no matter how
insignificant the amount.
With 10,000members, a travel club charging only $20 a year will
earn $200,000 in membership dues. This revenue is over any
commission the Club earns when a member travels.
SPLIT DISCOUNTS
A Travel Club normally acts as a travel agent for the exclusive use
of its members. As an "agency", it gets standard agent commissions
from airlines, hotels and cruise lines.
This can range anywhere between 10% and 18% of the purchase price.
What travel clubs usually do is offer its members a rebate
equivalent to 50% of its commission (meaning 5% to 9% of ltheir
purchase price.
If the member spends $1,000, he/she gets back anywhere between $50
and $90. This is enough reason for people to join a travel club,
especially if the membership dues are just $20 a year.
ALL-CRUISE
As today's market shifts from the "all-in-one" and "do-it-all"
service companies to that of "specialized" services, so do travel
clubs.
Based on industry statistics, the best area to specialize in is the
Cruise business, the fastest-growing segment in Travel.
YOUR BUSINESS
Sell memberships to your All-Cruise Travel Club and offer rebates
on all cruises and peripheral services the member books through the
club.
Find products or services that you can give as bonus for signing up
for a year's membership.
You may even want to seek distributors who will purchase membership
cards in advance, at 15% of the retail price.
This means that if the membership retails for $20, a distributor
buys it from you for $3. If you sell 10,000 memberships this way,
you've just earned $30,000. Then, add to this revenue from
commissions when members take a cruise.
