Expedia Cruises Franchise FDD, Profits & Costs (2025)
Expedia Cruises, originally established as CruiseShipCenters International in 1987, is a prominent travel agency franchise specializing in air, land, and sea vacations. Founded in Vancouver, British Columbia, the company has grown significantly over the decades.
In 2007, Expedia Group acquired a significant interest in the company, leading to a complete acquisition by 2013. This partnership prompted a rebranding in 2020 to Expedia Cruises, reflecting a broader focus beyond cruises to encompass all travel experiences.
Expedia Cruises offers a comprehensive range of travel products, including cruises, all-inclusive resorts, coach and rail tours, vacation packages, flights, hotels, and activities. This diverse portfolio allows franchisees to cater to various traveler preferences, positioning the company as a one-stop shop for vacation planning.
Initial Investment
How much does it cost to start a Expedia Cruises franchise? It costs on average between $150,000 – $259,000 to start a Expedia Cruises franchised business.
This includes costs for office setup, technology, marketing, and initial operating expenses. The exact amount depends on various factors, including the location, the size of the franchise, and whether the franchisee chooses to lease or purchase a retail space.
Type of Expenditure | Amount (Low – High) |
---|---|
Initial Franchise Fee | $49,000 – $49,000 |
In-person Training – Transportation and Accommodation | $1,500 – $6,000 |
In-person Training – Additional Trainee | $0 – $495 |
Additional Trainee Transportation and Accommodation | $0 – $1,750 |
Premises Lease Security Deposit | $2,250 – $7,500 |
Utilities and Telephone Deposit | $250 – $1,000 |
Leasehold Improvements | $30,000 – $80,000 |
Signage and Merchandising | $9,000 – $14,000 |
Computers and Software | $3,000 – $6,000 |
Office Equipment and Supplies | $2,000 – $4,500 |
Office Furniture and Furnishings | $15,000 – $22,000 |
Insurance | $800 – $2,000 |
Professional Fees | $500 – $3,500 |
Business Licenses and Permits | $500 – $1,500 |
TOTAL COSTS INCURRED PRIOR TO OPENING | $113,800 – $199,245 |
Additional Funds – Working Capital (12–24 Months) | $35,700 – $59,500 |
TOTAL ESTIMATED INITIAL INVESTMENT | $149,500 – $258,745 |
Average Revenue (AUV)
How much revenue can you make with a Expedia Cruises franchise? A Expedia Cruises franchised location makes on average $447,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
This compares to $468,000 yearly revenue for similar cruise franchises. Below are a few Expedia Cruises competitors as a comparison:
Expedia Cruises Franchise Disclosure Document
Frequently Asked Questions
How many Expedia Cruises locations are there?
As of the latest data, Expedia Cruises operates 98 franchise-owned locations across the United States and Canada.
What is the total investment required to open a Expedia Cruises franchise?
The total investment required to open a Expedia Cruises franchise ranges from $150,000 to $259,000.
What are the ongoing fees for a Expedia Cruises franchise?
Expedia Cruises franchisees pay a royalty fee of 9% of gross revenues earned from supplier commissions. Additionally, they contribute 4% of gross revenues to the Marketing Fund, which supports national and regional advertising efforts.
What are the financial requirements to become a Expedia Cruises franchisee?
To become an Expedia Cruises franchisee, you are required to have a minimum net worth of $750,000 and at least $250,000 in liquid capital. These financial prerequisites ensure that franchisees have the necessary resources to establish and sustain their travel business effectively.
How much can a Expedia Cruises franchise owner expect to earn?
The average gross sales for aExpedia Cruises franchise are approximately $0.45 million per location. Assuming a 15% operating profit margin, $0.45 million yearly revenue can result in $68,000 EBITDA annually.
Who owns Expedia Cruises?
Expedia Cruises is owned by Expedia Group, a leading global travel technology company. Founded in 1996, Expedia Group owns and operates a portfolio of online travel brands, including Expedia, Hotels.com, Vrbo, Travelocity, Hotwire.com, Orbitz, and Trivago.
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