Results census: Most members use independent contractors

A Results Travel franchise is likely to have one office location, focus on leisure travel, sell cruises, employ between two and five people and host independent contractors.

These were just some of the conclusions of the first member census put together by Results Travel, an agency franchisor owned by Carlson Cos.

Nearly half of the organization's 820 members participated in the census.

Other findings: Results Travel franchises have been in business an average of 23 years and typically split commissions 60/40 with independent contractors.

On average, 70% of Results agencies' business is leisure travel. Most Results franchises do not have on-site corporate locations or satellite ticket printers (90% said they had none, and less than 1% said they had four on-sites or STPs).

Since this was Results' first member census, there was no data to compare growth, but John Risner, general manager of Results Travel, said members were healthy and growing; he pointed to data that indicated 60% of agencies employed an independent contractor (one Results agent has more than 100 independent contractors).

"Almost a third have four or more independent contractors," Risner said. "That just wasn't on our radar screen seven years ago."

About two-thirds of Results franchises' revenue is earned on supplier commissions. Thirty percent of revenue is collected through service fees.

One of the conclusions of the census was that Results "brings value-add for members, so they can justifiably charge service fees."

Results is a seven-year-old business. Members average about $3 million in annual sales, Risner said.

The census asked members to name up to three top sales specialties or destinations. Cruising was tops at 81%, followed by all-inclusive resorts at 73.5% and honeymoons and weddings at 53.6%.

Results also included a line where agents could write in their individual specialties. Some of those were escorted group cruises, international adoptions, marathons, family reunions and auto racing.

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