FCM Travel Solutions India will expand its distribution network in the country in the next three years through a franchise model. The group will also focus on niche sectors such as school groups and cruises to step up the leisure business.

Shravan Gupta, Executive Director - Leisure Businesses, FCM Travel Solutions India, told BusinessLine there are plans to open 40-50 retail outlets in the next three years through franchise model. “We have already launched operations in Hyderabad and are looking to open another one in Chennai,” he added.

“Tier II cities such as Coimbatore and Jaipur are attracting more traffic be it leisure or business. The new regional airports will open up newer markets and this presents us a huge opportunity,” he added. “This is one of the reasons for looking at markets such as Surat, Jaipur and Raipur.”

Talking about the franchise model, Gupta said, “It is a hybrid model. We will invest in employees and the franchisee will invest in infrastructure and management and the profits will be shared.”

In the initial six months, the company will strengthen the five offices before rapid scale-up. “The idea is to give the franchisee the confidence that the business is profitable before rapid scale-up,” he added.

Leisure business nowaccounts for 10 per cent of the total revenue. FCM Travel Solutions acquired ₹700-crore Travel Tours Group, which specialises in leisure travel, in October 2016. The combined revenue after the merger is ₹3,000 crore and gives them the needed leverage to grow the leisure business.

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