All About Honeymoons Franchise Opportunity -- An Entrepreneur Magazine Top 500 Franchise Opportunity

By Michael Snyder

Whether it is an exotic destination or a familiar, favorite place, it has long been a tradition for newlyweds to choose a romantic getaway for their honeymoon. It has been less traditional, however, for couples to have destination weddings, perhaps because destination weddings are often associated with the stigma of great expense. That image, however, is changing, for many good reasons, and, as a result, the number of destination weddings is on the rise. According to recent statistics compiled by About.com, Honeymoons/Romantic Travel, destination weddings, which are generally more lucrative than honeymoons because of the number of attendees, account for $16 billion in annual spending, and honeymoons account for $12 billion in annual spending.
Honeymoons, destination weddings, and another growing market, destination wedding anniversaries, make up the bulk of the romantic travel industry, and this niche industry is experiencing unprecedented growth. According to statistics released by the U.S. Travel Association, approximately 42 million Americans take at least one trip annually to attend a wedding, go on a honeymoon, or take part in a wedding anniversary celebration, and many who take romantic travel-related vacations have varying degrees of expendable income.
So why have these types of romantic travel become so popular? Well, it has everything to do with demographics, cost, and, contrary to what many people might think, a bad economy. There are also two other words that have a direct correlation to the growth of these types of travel: “vacation” and “all-inclusive.”

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Facts about Romantic Travel
Romantic travel appeals to people from within several demographic groups. According to figures released by the U.S. Travel Association:

• Romance-related travel is most popular among Baby Boomers.
• Forty-one percent of romance travelers are 35 to 54 years of age.
• Sixty-seven percent of romance-related travelers are married.
• Thirty-three percent of romance travelers are members of Generations X and Y, which means that they are between 18 and 34 years of age.
• Thirty-eight percent of romance-related travelers have above-average annual household incomes.
• This past year, romantic travel-related trips were taken by:
• Thirty-five percent of people living in the southern United States.
• Twenty-six percent of people living the Midwestern United States.
• Twenty-four percent of people living in the western United States.
• Fifteen percent of people living in the northeastern United States.
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[Sidebar]
Facts about the Wedding Industry
Though marriage is not for everyone, it does appear to be for the vast number of Americans—and, in some cases, more than once. Following are facts and figures about the wedding industry and those who choose to be part of it.

• Eighty-eight percent of Americans celebrate a wedding at least once.
• The median first-time bride is 27 years of age; the median first-time groom is 29 years of age.
• The average number of guests invited to a U.S.-based wedding is 165.
• Every weekend, on average, 44,230 weddings take place.
• Weddings are a $50 billion annual industry.
• Each year approximately 2.4 million weddings are performed in the United States.
• One third of married couples have been previously married.
• The median age for remarriage is 34 years of age for brides and 37 years of age for grooms.

The statistics found in this sidebar are based on a compilation of sources found at About.com, Honeymoons/Romantic Travel: Wedding & Honeymoon Statistics. The information was retrieved October 27, 2009, from http://honeymoons.about.com/cs/eurogen1/a/weddingstats.htm?p=1.
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Romantic Travel: A Lucrative Phenomenon
Destination Weddings
According to Greg Strobach, founder, president, and CEO of Denver, Colorado-based All About Honeymoons, when they first visit his office, or one of the offices of his company’s 100 franchises, prospective brides are unaware of the cost difference between a traditional U.S.-held wedding and a destination wedding.
“Part of our job,” says Strobach, “is to educate the bride. Generally,” he explains, “one of the things they do not know is that on average, destination weddings are more reasonable than traditional weddings. As a result of what they are learning,” says Strobach, “over the last five to six years we have seen an increase in destination weddings. Now,” he adds, “I would say that 20 to 30 percent of couples who come to us are having destination weddings.”
Facts tend to bear him out about costs. According to figures compiled by About.com, Honeymoons/Romantic Travel, the cost for an average destination wedding is approximately $21,000 whereas in recent years the price tag for an average traditional American wedding has crept up to $28,000. While the costs involved in a U.S.-based wedding can be many and complicated, the details leading to a destination are more straightforward, especially if they are held at the right place.
“With a traditional U.S.-held wedding,” says Strobach, “the bride and groom will have to work with approximately 13 vendors, and this drives up costs. In contrast,” he continues, “couples who have destination weddings stay at all-inclusive resorts, where all food and beverage costs are included and,” he adds, “at a resort the bride and groom only have to deal with one vendor.”
The savings gained from having a destination wedding, however, do not just benefit the couple. The savings also benefit the couple’s guests who will receive the same package deal that the bride and groom receive, which means that in addition to being wedding guests attendees also have an opportunity to enjoy a reasonably priced vacation, often in an exotic setting.
“Many family members are spread out in different regions of the country,” explains Strobach, “which means they have to travel to get to the wedding. This means that they have to pay for transportation, lodging, food, and a number of other expenses. It can become expensive,” he adds, “especially, if you bring the whole family. If, however, they attend a destination wedding, they get the same package deal as the bride and groom, which means all food and lodging costs are covered and,” he concludes, “that includes tips.”

[Sidebar]
Facts about Destination Weddings
• Sixty percent of destination weddings are paid for by the couple.
• The average destination wedding bride is 33 years of age; the average bride for a traditional U.S.-based wedding is 28 years of age.
• Seventy percent of destination wedding couples are college graduates and the average annual household income is $110,000.
• On average, 48 guests attend a destination wedding.
• Each destination wedding guest pays an average cost of $400 to attend and take part in the event.
• Nine out of ten couples say weather is a key factor in selecting a destination.

The statistics found in this sidebar are based on a compilation of sources found at About.com, Honeymoons/Romantic Travel: Wedding & Honeymoon Statistics. The information was retrieved October 27, 2009, from http://honeymoons.about.com/cs/eurogen1/a/weddingstats.htm?p=1.
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Of course, there are reasons for the growing popularity of destination weddings beyond those of lower costs and vacation value. For some couples the choice of having a destination wedding may have to do with how many guests they wish to have witness their special moment.
“It depends on the couple,” says Donna McMillen, owner/president of San Rafael, California-based Travelwizard.com, a company that oversees 166 travel-related websites throughout the United States and Canada. “If it is a large group, they will probably have a domestic wedding,” explains McMillen, who says that one-third of her travel business is honeymoon related, with a growing contingent of destination weddings. “If it is a smaller group,” she counters, “or if they have been married before, they might choose a destination wedding.”
Another important reason for a destination wedding is the time-worn, but true adage, “location, location, location.” While one couple might opt for the fun and excitement of Disney World, another might prefer watching sunsets on the beaches of Waikiki. Some couples, however, like to have weddings in a destination that is exotic, but that is either part of the United States or is close to the United States.
“Many of our wedding couples choose Hawaii and Mexico,” says McMillen. “They choose them, in part, because they are closer to home.”
The wedding location choice, nevertheless, is as varied and individual as are the tastes of the couple getting married.

Honeymoons and Anniversary Celebrations
Though the number of people involved in honeymoon travel is less than that for destination weddings, there are more honeymoons than there are other types of romantic travel. According to statistics released by The Travel Institute, more than two million weddings take place annually, and the vast majority of newlywed couples take a honeymoon.
“Most of our franchises work about five honeymoons and one destination wedding per month,” says Robin Spelman, CFO of All About Honeymoons and a northern Virginia All About Honeymoons franchise owner. “At this point,” he adds, “my franchise works one to two destination weddings and as many as ten honeymoons per month.”

[Sidebar]
Facts about Honeymoons
• Although 37 percent of honeymoon trips are to domestic locations, 63 percent of honeymoons take place in foreign destinations.
• Couples spend an average of $3,700 on their honeymoon, which is three times as much as the average adult spends on a vacation.
• The honeymoon, on average, accounts for 14 percent of a couple’s wedding budget.
• The length of an average honeymoon is eight days.
• Ten percent of newlyweds take cruises for their honeymoon.
• Property choice varies among honeymooners:
• Forty percent will stay at a resort.
• Twenty-seven percent will stay at a large hotel.
• Ten percent will stay at a small hotel.

The figures in this sidebar are based on a compilation of sources found at About.com, Honeymoons/Romantic Travel: Wedding & Honeymoon Statistics. The information was retrieved October 27, 2009, from http://honeymoons.about.com/cs/eurogen1/a/weddingstats.htm?p=1.
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Though they are third to destination weddings and honeymoons, comparatively speaking, wedding anniversary celebrations are also growing in number. They, too, can prove to be lucrative.
“If you treat your customers right,” says Spelman, “they will return. Also, they will tell their friends and members of their family about the wedding or honeymoon you planned for them. I am at the point where I have done first, second, and third anniversaries for clients,” he says. “Though some clients want to go back to the same property they went to for their wedding or honeymoon,” he continues, “most want to go back to the same location but at a different property for their anniversary.”
Donna McMillen’s experience concurs with that of Spelman.
“We have a high repeat rate with them,” says McMillen, referring to her honeymoon clients turned wedding anniversary clients. “They usually prefer a different property. Hawaii and Fiji are especially popular,” she adds, “because they consist of so many islands. If the couple went to either destination for their honeymoon,” she concludes, “they can return, but to a different island.”

Conclusion
According to Robin Spelman, the weak economy and the high cost of traditional weddings have given a boost to destination weddings, in particular, to the romantic travel industry, in general.
“More couples are opting for a destination wedding in an exotic and tropical location,” says Spelman. “Many destinations offer all-inclusive packages and incentives to do destination weddings,” he explains, “which are great ways for couples to save even more money. We try to provide them with the most stress-free, romantic experience at the best value,” he explains.
At the same time, good economy or bad economy, there is a sense that the romantic travel industry is, to some extent, immune to the problems that sometimes plague other niche markets within the travel industry.
“Today’s couples, especially the bride,” says Spelman, “want to feel special when they start planning one of the most important events of their lives. Couples have been tying the knot for centuries through good times and bad,” he adds. “In fact,” he concludes, “sometimes when things get bad, the areas that people tend not to scrimp on are weddings and honeymoons.”

This entry was posted on Tuesday, December 15th, 2009 at 1:02 pm and is filed under Business Opportunities, Franchise Opportunity, Travel News, Wedding Industry News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.