This is How Travel & Tourism Franchise Business is Gaining Profits
Everyday thousands of people move from one city to another out of which 30% of the population travel in search of job or for education or to reach office in time, 50% of the population for attending business meetings or seminars or events and the rest of the population is traveling to relax or for a holiday away from the daily life.
Indian travel and tourism have also emerged as one of the key growth drivers among the services sector in India. Tourism business especially is fueled by those traveling from other countries to India for medical treatments or in search of spirituality or simply to see the varied culture distributed in mainland India.
According to reports during 2018, FEEs from tourism increased 4.70 % year-on-year to US$ 28.59 billion whereas FEEs during January 2019 was US$ 2.55 billion. This sums up the situation of the travel and tourism business in India.
A rise of Franchise Players in Travel & Tourism Sector
The availability of low-cost internet connection, social media craze, and online apps to book flights, traveling tickets, hotels and taxis have made the sector full of opportunities.
These days the franchisors are also providing the franchisee opportunity to small-town players because the digital media has allowed them to keep a track of the business even from far.
Franchise brands like OYO rooms, Thomas Cook and Make My Trip is tapping the small markets with the help of internet. Even the digital media has made it easier for the customer to switch places, destinations according to their choice.
Reports suggest that India’s rising middle class and increasing disposable incomes have continued to support the growth of domestic and outbound tourism.
Small town players find it easier to do business when they get associated with big brands through franchising because of their popularity.
Growing Opportunities & Potential of the Sector
The reports show that the travel & tourism sector in India accounted for 8 percent of the total employment opportunities generated in the country in 2017, providing employment to around 41.6 million people during the same year. The number is expected to rise by 2 percent annum to 52.3 million jobs by 2028.
International hotel chains are increasing their presence in the country, as it will account for around 47 percent share in the Tourism & Hospitality sector of India by 2020 & 50 percent by 2022.
India’s travel and tourism industry have huge growth potential. The tourism industry is also looking forward to the expansion of the E-visa scheme which is expected to double the tourist inflow to India. India's travel and tourism industry have the potential to expand by 2.5 percent on the back of higher budgetary allocation and low-cost healthcare facility, according to a joint study conducted by ASSOCHAM and Yes Bank.
Even the government has also identified the potential of the travel and tourism industry, which is why it has taken some initiatives to make India a global tourism hub.
According to reports, the Government of India is working to achieve 1 percent share in the world's international tourist arrivals by 2020 and 2 percent share by 2025.