starting a travel planning business

Starting a Travel Business: How to Become a Travel Agent

Briana Morgaine

17 min. read

Updated March 18, 2024

Free Download:  Sample Travel Agency Business Plan Templates

If you’re someone who loves travel, meticulous planning, and helping others have great experiences, consider starting a travel business and becoming a travel agent.

After a sharp drop in international and domestic travel during the COVID-19 pandemic, air travel demand has returned to pre-pandemic levels.

Pent-up demand from families who put off trips is driving tourism activity even as fewer travelers cite the pandemic as a major concern. Those tourists are forecast to drive solid long-term growth in the worldwide travel and tourism industry – and plenty of business opportunities for those who can make vacation planning less stressful.

Becoming a travel agent can be fairly inexpensive, as business ventures go, and you can often get away with limited staff and little upfront cost.

That being said, success largely depends on finding the right niche in a fiercely competitive market, given the rise in online direct-to-consumer travel booking sites. So, if you want to be successful, you’ll want to focus a lot of your effort on your market research , branding, and marketing. You’ll need to know who needs your services—your target market—and what they’ll be willing to pay. 

If this sounds right up your alley, keep reading. I’ve interviewed several founders of successful travel agencies for their advice on everything you need to get started, and I’ve also included plenty of links and resources to help you work through the process of starting your own travel business.

• 1. Create a plan for your travel business

Make no mistake: No matter what industry you’re in, a business plan is essential. You may not need a formal business plan if you’re not seeking a loan or investment funding for your business, but don’t skip it. Write a one-page business plan instead.

You can do it in less than an hour. Writing a business plan is scientifically proven to help you grow faster , so don’t skip this step. 

What kind of travel agent are you interested in becoming? If you’re planning to be a home-based travel agent, you’ll want to look into finding a host travel agency where you’ll essentially be an independent contractor. If this is the type of travel business you’d like to start, the business planning process should be fairly straightforward.

However, if you’re looking into starting your own travel business from the ground up, you’ll be looking at a much more lengthy planning process—but you’ll also have more flexibility to build a business that’s all your own.

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A case for starting early

“In starting ADDISON Yacht Charters , we began market analysis and business planning efforts a full year before we launched the company in November 2013,” says owner Scott Bessette.

“During that period, we attended industry events such as regional yacht shows in the Virgin Islands, Antigua, Florida, and Monaco to acquire as full an understanding as possible with regards to what products and services were being delivered to the market, who was delivering those products and services, and who was purchasing those products and services,” he explains.

Starting the planning process early helped Scott hone in on his vision for his business. “In this manner, we determined what our market niche could be, and established whether or not we could compete in the existing market, and what it would take to succeed,” he says.

Scott was able to get a clear sense of where he wanted to take it, and how to tailor his business to best suit the market needs.

What kind of travel agent business plan will you need?

The kind of travel agency business plan you’ll need will vary depending on what kind of funding you’re looking for.

Are you hoping to eventually run a large travel agency, and interested in seeking a loan, or maybe investment from angel investors? You’ll want a formal business plan for a travel agency that contains all the necessary information on your business. Are you more interested in becoming a travel agent using your own savings, without seeking outside investment or loans? A more lightweight one-page plan might be a perfect fit for your business.

Even if you do intend to pitch your business idea to lenders and investors, you can start with a Lean Plan, and flesh out the rest of the info later on.

Whatever your specific reason for writing a business plan for your travel business, the most important thing is that you write one, period. The travel industry is fragmented , and having a clearly defined niche and a plan will help you stand out. Writing a business plan for your travel agency will help you narrow in on what your goals are, and establish a clear, focused vision going forward.

We’ve covered nearly every aspect of writing a business plan here on Bplans, so be sure to check out the links below when you’re ready to get started. We also have several travel industry business sample plans, which will give you an idea of what your business plan should look like.

Resources to help you create a business plan for a travel agency:

• How to Write a Business Plan
• Travel Agency Sample Business Plan
• 2. Conduct market research and find your niche

What kind of travel agency do you plan on starting? Moreover, what kind of travel business does the industry or your local community actually need?

“When you launch a travel business, the most important thing to do is to provide a valuable service,” says Jacquie Whitt, owner of Adios Adventure Travel .

This means doing some market research to find out what kind of travel agent or travel business the market really needs. Is there a niche you can fill? Maybe there’s an opening in the travel market to provide destination adventure honeymoons for young couples who would rather go backpacking than relax on the beach. Think about the people in your local community too—do they need something specific?

“In a saturated luxury travel market, Urbane Nomads had to distinguish itself from more seasoned players from the get-go,” says founder Hajar Ali. “The dual elements of adventure and luxury was an unexplored niche which we filled very well.”

Hajar says of Urbane Nomads: “It was conceived as the kind of travel company that would remain relevant in the age where most travel-related bookings are made online. We specialize in the sort of experiences that can’t be booked online—adventurous trips to non-mainstream destinations, lodges that can’t be booked online—or indeed, by non-travel professionals—and special experiences and access to personalities that would have been impossible without the personal connections.”

What niche are you filling? Start by researching the travel market in general. Find out who the major players are that you’ll be competing against, determine who your ideal customer is, and define what they want.

Resources to help you do market research and determine your niche:

• Practical Market Research Resources for Entrepreneurs
• How to Do Market Research
• How to Create a Unique Value Proposition
• How a Buyer (or User) Persona Can Improve Your Business
• What Is Target Marketing?
• 3. Develop a brand as a travel agent

Once you’ve determined what the market looks like and what specific niche you’ll be filling, it’s important to get down to the nitty-gritty of creating a strong brand image .

As the travel industry is so competitive, having a well-developed brand will help your business stand out. How do you want your customers to feel when they visit your website, view your advertising, or use your services?

Lorne Blyth, Founder and Director of Flavours Holidays, had a very specific vision for her brand. “[At Flavours Holidays], we have been specializing in cooking, Pilates, painting, photography, and language holidays in Italy since 1998,” she says. Lorne’s vision was to create a brand that “gave guests a true taste of Italy.”

“I use that as part of my branding, as we would like to perceive ourselves as being experts on all things Italy,” says Lorne. “That is why our tagline is ‘Passionate, Inspiring, Authentic.’”

Why should customers use your services, rather than just book a trip themselves? What experience can you provide that others can’t?

Do you offer unique services, such as partnerships with the locals of your travel destinations, that customers wouldn’t have access to otherwise? Is your selling point the ease of having someone else plan your trip for you, down to the last detail? Are you all about personal touches and a great customer service experience?

This is the first step to determining your travel business’s brand strategy— determining who you are. We’ve gone in-depth on how to build a memorable brand for your business, so check out the articles below for more information on branding.

Resources to help you brand your travel business:

• The Definitive Guide to Building a Brand
• Your Brand’s Tone of Voice: Why It Matters and How to Craft It
• 4. Deal with the legal side

A travel business is, for the most part, a fairly simple one to set up. Unlike starting a brewery or starting a dispensary , there isn’t a lot of legal red tape when it comes to becoming a travel agent and starting a travel business. 

Determining if you’ll require licensing

In most locations, you won’t need any specific licenses or certifications, but licensing requirements will vary by state and country.

For the U.S. in general, there is no specific license needed to start a travel business; however, state laws vary . In California, Washington, Hawaii, Iowa, and Florida, you’ll need a Seller of Travel license. Canada also has licensing requirements that vary by location, and in the U.K., you’ll need an Air Travel Organiser’s License .

Choosing the structure of your travel business

Beyond specific licenses, there are general licenses that you’ll need before you start any type of business.

First off, choose your business structure . Scott Bessette, owner of ADDISON Yacht Charters, started his travel agency as an LLC , which he says suited his business needs. “Before we considered starting our agency, we determined that a Limited Liability Company was the appropriate structure for what we were trying to achieve.”

Why was an LLC the best choice? “We had no intention of going public, or having to secure formal investment,” he says. “Further, we had a very simple organization structure, so ease of governance and compliance drove our choice of corporate structure.”

However, the business structure you choose will depend largely on your plans for your business, and how you intend to fund it. If for example, you plan to seek outside investment, you may want to look into starting your business as a corporation .

Naming your business and applying for a Federal Tax ID number

You’ll also want to formally name your business (even if it’s just you, becoming a travel agent!), which involves filing a DBA , or a “doing business as.” You’ll also need to apply for a Federal Tax ID number , otherwise known as a Federal Employer Identification Number (EIN or FEIN). We’ve covered these topics in plenty of detail, so be sure to check out the links.

Scott also adds that setting up the legal end of things was fairly simple.

“Establishing the legal and licensing requirements was one of the easiest aspects of starting the business,” he explains. “All said, conception and gestation of ADDISON Yacht Charters was long-term, but she was born after only two days of hard labor.”

Resources to help you determine the legal structure and name for your business, as well as other legal considerations:

• The Complete Guide to Choosing Your Business Structure
• The Complete Guide to Registering Your Business Name
• Resources and Tools to Help You Name Your Business
• How to Apply for a Federal Tax ID Number
• How and Where to Obtain Business Licenses and Permits
• Keep Your Startup Safe from Legal Trouble
• 5. Determine your funding strategy

How do you plan to fund your new travel business?

Luckily, your starting costs should be fairly low: You won’t have expensive equipment to buy, and you probably won’t need extensive space in the beginning. If you’re hoping to become a travel agent working out of your own home, you may not even need office space at all. 

However, be sure to have a plan in place for how you will obtain funding. You’ll need funds for marketing materials at the very least; both online, such as your business website , and offline, such as flyers, posters, business cards, and more . Your initial funding budget will also likely go toward any branding or advertising, and you may eventually also decide to rent office space and hire employees, which is a fairly large expense.

Unlike many businesses, there isn’t one tried-and-true path for funding a travel business. From personal funds to venture capital funding, it’s all a possibility.

Many travel agencies are self-funded since they have low initial overhead and can be started fairly easily (though face stiff competition to stand out). “I didn’t get any funding at all, apart from $2,000 borrowed from my dad for the website,” says Brady Hedlund, founder of Life Before Work.

Looking into loans and a line of credit is also a good first move. “We developed banking and relationships with firm lines of credit and support, to ensure that as we started to deliver, funds were available to spend before the client paid the bill,” says Scott of ADDISON Yacht Charters. “ Cash flow is critical to the appearance of a business’s success.”

However, when it comes to financing your travel business, angel investment, and even venture capital funding isn’t completely out of the question. “We formed an LLC to start Project Expedition and closed a $300k seed round in January 2015 to help drive the development of our MVP (minimum viable product),” explains founder Jeremy Clement.

Don Halbert, owner of Costa Rica Vacations , also funded his travel agency through venture capital. “Funding for this venture came from a venture capital company which would later become one of our primary partners,” he explains.

Resources to help you with the funding process:

• How to Get Your Business Funded
• 35 Great Ways to Fund A Small Business
• What Do Venture Capital Firms Want?
• 10 Tips for Finding Venture Funding
• 6. Choose a location and hire employees

Next, you’ll want to make a plan for the logistics of opening your travel business to the public. If you’re starting a travel agency and require office space, this section will likely be more relevant than if you plan to work as a travel agent out of your home. 

How many employees will you need to hire? You may not need any to start, until you decide to expand your operations.

You might also want to look into remote employees , suggests Mike Liverton, CEO and founder of Leavetown Vacations . “While many company employees live and work as home-based ‘Destination Experts,’ our main headquarters are downtown Vancouver,” he says.

Additionally, you’ll want to determine your business location . While foot traffic will likely not be a primary motivator in choosing a business location, you’ll want to pick somewhere that accommodates your space needs as well as reflects your desired brand image.

However, as with employees, you’ll find that a physical location isn’t always an absolute necessity. “We have never booked a client from our hometown,” says Scott.

“We’re a 24/7 business, that cannot be limited to when I am in the office, or more importantly, marginalized when I am not,” he explains. “The ADDISON staff has families, conflicts, and important events in their lives. We constructed and positioned our business to be virtual in nature; to be operational anywhere, anytime. I’ve conducted business from Europe, the Caribbean, from multiple states, and during my children’s sporting events.”

“We didn’t choose our business location, we chose a virtual location,” he adds. Whether or not you choose to go this route will depend on your specific niche and brand; however, it’s certainly an option to consider.

Resources to help you set up your travel business and hire employees:

• How to Choose a Business Location
• 13 Out of the Ordinary Ways to Find the Perfect Business Location
• How to Hire Your First Employee
• A Comprehensive Guide to Creating a Business Website
• 7. Market and launch your travel business

Marketing will likely be where the majority of your initial funding budget goes, as it’s an important area to focus on when becoming a travel agent and starting a travel business. In fact, it’s a good idea to come up with a marketing plan as soon as possible.

For Don, the idea that you must spend money to make money drove the marketing strategy behind Costa Rica Vacations.

“Our ‘lesson learned’ in starting up our agency was primarily the realization that your Google Adwords budget can single-handedly determine your success when starting out in this normally competitive market,” he says.

Don’t make the mistake of thinking that all your advertising efforts should revolve around paid advertising, however. Plenty of your focus should go into social media marketing and guerrilla marketing tactics.

“I started out eight years ago running backpacking trips to Thailand, advertising using only lean, guerrilla marketing tactics,” says Brady Hedlund of Life Before Work. “I created an itinerary and website and hit the streets of western Canada to promote my new company.” Since his target demographic was 18-30-year-olds looking for an ‘adventure party tour,’ he went to university campuses and handed out flyers and posted signs advertising his travel agency.

“I didn’t get a single call for over a year,” he explains. “I honestly had no idea what I was doing at the time, but eventually, the business picked up and began to grow at an exponential rate. Flash forward eight years, and we now have a team of 35 full-time staff operating in 18 countries.”

Your marketing strategy will, as with all aspects of starting a travel business, be largely dependent on your specific niche, the demographic you are after, your budget, and your bandwidth as a business. That being said, combining both paid advertising with other guerrilla tactics (both online and offline) will likely serve you well.

Resources to help you market and launch your travel business:

• How to Write an Effective Marketing Plan
• 20 Marketing Tools Every Small Business Owner Should Try
• A Beginner’s Guide to Google AdWords for Small Business
• How to Have the Best Opening Day Ever
• Words of advice: Final tips from entrepreneurs who have started successful travel businesses
• “We searched for quite some time to find an underwriter that would provide us with general liability insurance, due to the amount of risks involved in adventure travel…This is a tricky product when it comes to insurance, but it’s obviously a very important piece of the pie.” – Brady Hedlund, Life Before Work
• “From the beginning, I have built up relationships with various individuals in Italy to help recruit staff for the villas used during our vacations. This varies from local cooks to tour guides to drivers. The little touches along the way, from booking flights for guests to getting the transport back to the airport, all adds up as every little bit helps to create the perfect experience for my guests.” – Lorne Blyth, Flavours Holidays
• “It’s important that your business partners share your values. I work with people in South America who are now my friends. We’re not in it for the money; we enjoy our jobs and if we can ‘eke’ out a living, all the better.” – Jacquie Whitt, Adios Adventure Travel

Business plan template and travel agency resources 

By now it should be clear that starting a travel agency requires a strategic approach and lots of planning. But don’t worry if it feels overwhelming. At Bplans, we have a full library of business planning resources to help you get started. You can browse through our free collection of over 500 real business plan examples , or download our free business plan template to help your travel business take flight. 

Clarify your ideas and understand how to start your business with LivePlan

Bri Morgaine is a seasoned content marketing leader with a decade of experience in copy editing, social media operations, and content strategy— having honed her skills at industry giants like Palo Alto Software and Andreessen Horowitz.

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10 Steps to Starting a Travel Agency from Home

If you're thinking of starting a travel agency from home, you're in luck. The cost to become a travel agent is relatively low and there are plenty of opportunities for someone with the passion to sell travel. Not only that, but starting a travel agency from home is becoming the most popular route to become a travel agent .

"Home-based independent advisors continue to dominate the travel agency landscape, accounting for 72% of travel advisors." -Phocuswright

According to Phocuswright's US Travel Agency Landscape 2023 , "Home-based independent advisors continue to dominate the travel agency landscape, accounting for 72% of travel advisors."

Want to throw your hat into the ring and start your own travel agency?

Starting any business is no walk in a park, but it certainly helps if you have someone to advise you and lay out a path. We're here to help support you and answer your questions as you start out on your new entrepreneurial journey!

PS: If you can't answer the question ' what do travel agents do ', let's have you read up on that first before you go all in on starting your own travel agency. 🤗

10 Steps to Starting Your Travel Agency From Home

Here's a summary of the steps to start your travel agency from home. If you've already completed some of the steps, you can click on the link to shortcut which step is best for you!

• Find your travel agency niche: Finding a travel agency niche is a great way to hone in on what about travel you're most passionate about. If you develop a niche, you'll be building your travel agency business on a strong foundation of your strengths, interests, and personal networks. Not only that, it will help you give direction as you start (and grow) your agency!
• Choose your travel agency name: This is often a step advisors struggle with, but don't skip it! Travel vendors need a travel agency name for their records. Make sure you have one ready so you can start selling travel.
• Choose a Travel Agency Business Structure: Most new-to-industry advisors will be choosing between a sole proprietorship or a Limited Liability Corporation (LLC). It's a matter of balancing host requirements (if you go with one), business protections, your agency model, and your budget.
• Create a Travel Agency Business Plan: A travel agency business plan is a document that will help you cat herd all your amazing ideas for your business. It helps you define your mission and goals, helping you think through the process on how to get there. Best yet? We have a free 15-page travel agency business plan template you can use!
• Register Your Travel Agency with the State + Feds : This is a critical step so to legitimize your travel agency. You can register your LLC through the Small Business Administration (SBA) resource to find the steps to get registered with your specific state. This will enable you to do other fun steps like starting a business bank account.
• Get an FEIN : This is optional but recommended, here's why: It's free to get an FEIN, takes just a few minutes and if you move to a business structure that requires an FEIN in the future it will save you a few steps!
• Set Up Your Travel Agency Financials : Separating your business bank account from your personal account is required if you set up an LLC. But frankly, we recommend setting up business financials regardless of your agency model.
• Choose Between a Host Agency, Travel Franchise, or Your Own Accreditation: There are a lot of choices in which direction to go with your travel agency. Do you have your own vendor relationships and want to get your own travel accreditation? Do you want to partner with a host agency under your own brand so you take advantage of their aggregate sales volume? Do you want a turnkey agency option with a franchise? This will help you choose.
• Check Out Host Agency Reviews' Resources Page : Our resources page gives you tips on how to optimize our site to help start your travel agency from home.
• Sign Up for 7 Day Setup Accelerator Course: Within each of these steps, there are many many many other steps to starting a travel agency from home. (Yes, just like nesting dolls.) Our course gives you the tools and knowledge you need to go from the seed of an idea to hanging the shingle out for your travel agency!
• Bonus: Read up on what you can expect in terms of income potential as well as time and financial investment.

I know. It can be totally overwhelming. But if you're starting a travel agency from home, these steps will help prepare you to feel 10,000% (no those extra zeros are NOT typos!) more confident. What are the preliminary steps you need to take when starting a travel agency? Funny you should ask . . .

Here are the steps to take to start your travel agency from home:

1. Find a Travel Agency Niche

A niche is your friend. When you start your home-based travel agency, a niche will help you establish your brand, create your travel agency name, and allow you to focus your energies. Starting a travel agency without a niche is like traveling without a compass (or, let's be honest, a smartphone). Are you going to be focusing on a destination? Maybe you'll be like Andres Zuleta, who specializes in Japan tours:

Or maybe you'll focus on a type of travel, like Deb Fogarty, who specializes in cruising:

Or maybe you're like Will Medina and have a love for destination weddings and honeymoons:

Or maybe you're more attracted to the corporate world and aim to book travel for corporations like Karen Hurlbut:

Whatever your niche, it's the first problem to solve when you're starting your travel agency! We have a free brainstorming exercise to help you find niches that you're passionate about.

2. Choose Your Travel Agency's Name

Vendors will need a travel agency name for their records so have one ready before you start selling travel.

Whether you go with a host agency or choose to go independent, you're going to need a name for our agency. The vendors (hotels, cruise lines, airlines, etc) will need a travel agency name for their records so have one ready before you can start selling travel. Having a niche already picked out can help you as you decide on your travel agency's name .

Starting your travel agency (from home or otherwise) is a lot of work. The last thing you want as your travel agency opens its doors is a letter saying you've infringed on someone else's trademark! We help you through the things you need to consider when choosing a name for your agency. Are their any competitor's with similar names that will make it harder for you to pull up at the top of the search engines? Are the URLs available? Are their any copyrights? Is it too long to neatly fit on marketing materials? We go through this and a whole lot more, so dig in!

3. Choose a Travel Agency Business Structure

You can change your business structure as your needs evolve.

A base step in starting your travel agency from home is deciding on a business structure. There's a lot that goes into what is the best fit for you. Do you have personal assets like a house or car that you want to make sure are protected? How much money do you want to spend?

We help you understand the different business structure options for your new travel agency : Sole proprietor, partnership, LLC, S Corp.

As you're starting your travel agency, you may feel like the low cost of a sole proprietor makes the most sense for you. It's important to know that you can change your business structure as your needs evolve.

As your business grows and you're making more bookings (which exposes you to more liability), you can always move to a structure that gives you more personal liability protection, like the LLC. While it's more expensive, and may not be feasible for everyone as they're starting their travel agency, the protection it offers to your personal assets is incredibly important as your business grows.

And what the heck is an S Corp anyhow? Don't worry, we'll give you the scoop and let you know when that should be a consideration for you.

4. Create Your Travel Agency Business Plan

Next step in starting your travel agency? A business plan!

While a travel agency business plan isn't technically required to start an agency, it is something I highly recommend. I didn't write a business plan when I started this site but I also knew online marketing, SEO, and the travel industry front and back. I also had the industry connections to make it work. Most people starting a travel agency from home either don't have experience in starting a company or they don't have experience in travel. This is where a business plan can help.

What a business plan does for you is it forces you to think through each different area of your business and come up with a plan. Will you stick to that plan 100%? Definitely not. But it gives you something to refer back to and helps you organize your thoughts. Plan to take a chunk of time to work on it as it's not something you want to do willy-nilly.

Not only that, but we made it really easy with our free 15-page travel agency business plan ! All you need to do is download our template and adapt it to your agency.

While I didn't write a business plan for Host Agency Reviews, I did write a VERY detailed travel agency business plan for you. :) It's completely filled out with a fictitious travel agency. That's helpful because you can use some of the data and ideas in there on your travel agency's business plan.

Here's a peek of the business plan. Just to note, this version is not editable! To get the editable version, download the travel agency business plan template (an editable version of the one below).

That was good stuff, right? So let's move on to some more logistics, getting your government paperwork in place.

5. Register Your Travel Agency with the State ... and Feds!

You're doing great!

Starting a travel agency from home isn't as tough as you thought, is it? When you have a road map, it's easier to navigate the start-up process.

Registering with the State

Ok, now that you've:

• nailed down your niche,
• come up with your name,
• and settled on a business structure.

The next step is letting the state government know you've got a company. The Small Business Administration (SBA) website shows   how to register your company's name by state . If you are an LLC, the SBA also has a state-by-state guide on how to register your LLC .

A word of warning: When doing a DBA, your business, even though they have different names, are still legally considered the same entity.

Registering your company with the state is an important step because you will need this proof to open a business bank account and other random things (running FB business ads, getting a loan) as your business grows. Do yourself a favor and when those certificates come in, keep them handy in a file for your company's legal documents.

When you start your travel agency, you may have registered it as Margarita Travel. But over time, that might change.

Let's say you fell into becoming the local destination wedding expert that everyone turned to. Margarita Travel works, but you want to have a more romantic name for those clients and different branding. So you create a new brand, Beach Romance , that specializes in destination weddings.

Do you need to let the state know about this new company, even though it's really your same company? Yuppers.

You'll need to file a DBA with the state. DBA is an acronym for "Doing Business As." It's also sometimes referred to as a fictitious name, trade name, or assumed name.

Your DBA is essentially saying, 'My formal company is Margarita Travel, but I also go by Beach Romance.'

To help you get a feel for the pros/cons of a dual-brand, listen to Andrey Zakahrenko's story of how his agency evolved into two brands: (This was our first ever podcast so please forgive the horrible sound quality!)

The one thing to know about DBAs is that they don't create a separate entity. DBAs just allows you to legally operate under different names.

A word of warning: When doing a DBA, your businesses, even though they have different names, are still legally considered the same entity. That means if someone sues Beach Romance for a honeymoon gone wrong, Margarita Travel is also being sued since it's the same company.

Registering with the Financial Crimes enforcement network

And can we talk about the Feds for a moment? They're doing their part to cut down on money laundering. (Score!) And... since money laundering happens through businesses, you're going to have to do a little paperwork with them. (Boo!)

You'll fill out the Beneficial Ownership Information (BOI) form to make sure you're on the up and up. :)

Don't worry, it's not too painful despite the fact the they name of the government org in charge—Financial Crimes Enforcement Network—sounds like they're going to send a SWAT team into your home at any moment.

6. Get an FEIN (Optional, but Recommended)

A Federal Employer Identification Number (FEIN) is like a social security number for your company. It's a number to identify your business and is sometimes referred to as an EIN.

Technically, you do not need an FEIN if you're a sole proprietor or a single-member LLC with no employees since you can use your social security number to file taxes.

However, I personally prefer not to give out my social security number if I don't have to. :) I also like to get my pencils lined up from the get-go.

It's free to get an FEIN and takes just a few minutes. A huge plus in getting one right off the bat when starting a travel agency is that if you move to a business structure that requires an FEIN, you won't have to worry about changing out your SS# for an FEIN on legal documents, bank accounts, etc.

Also, make sure to check in with your tax professional when it's tax filing time—for certain business structures, you may still file under your SS# even though you have an FEIN.

Confusing, I know. That's why you go to the professionals! 😊

7. Set Up Your Travel Agency Financials  

Like the FEIN, when you're starting a travel agency, you don't need a separate business bank account or credit card if you're a sole proprietor, but you'll have wished you'd had set one up come tax time!

Separating your personal bank account from the business account from the start makes accounting easier and will help you keep track of business expense write-offs.

Wondering what travel expenses you can write off as a travel advisor ? We've got a resource for that too. :)

Important to note: If you choose a business structure that offers personal liability protection, like an LLC, you need to keep your business and personal money separate. If you are mixing finances and paying personal bills out of your business account, or vice versa, that opens you up to personal liability.

The argument is that, yes, when you started your travel agency you chose an LLC structure, which protects your personal assets. BUT, clearly, the business and the owner are not separate entities because the owner is making business payments out of their personal bank account (or vice versa). And if you're one and the same, then your personal assets are also the business's assets.

There's a lot to consider when it comes to travel agency financials and getting the foundations laid.

Don't worry, we walk you through all things having to do with your travel agency's financials :

• what to consider when choosing your bank,
• the documents you need to have ready for the bank,
• what business credit cards are best,
• the most common software travel agencies use for their bookkeeping, and
• how to find a bookkeeper for your agency

8. Decide if a Host Agency Is Right for You

We mentioned host agencies at the very beginning of the article. And maybe you noticed the name of our site. We're big fans of host agencies for people starting a travel agency . . .but it's not for every agency out there.

That said, our travel advisor research reports continually show that new advisors almost always choose the host agency route.

Your next step is going to take a lot of research. You need to decide if you want to go with a host agency, franchise, or go independent.

Questions you might have:

• How do you know if you should go with a host agency, travel agency franchise , or if you should be independent and get your own accreditation ?
• How do you decide which travel consortium to join if you are independent?
• How do you choose a host agency when there are 200+ listed on the site ?

Don't you worry, little bird, it's easy to feel overwhelmed, but we have answers to all these questions. :)

To start, check out our article, " The Top 10 Benefits of Using a Host Agency . " If you read that and decide a host agency is a good fit for you, you'll move on to our article on choosing a host agency and take a look at our best host agencies of 2024 .

Oh, and we've got a great tool for you to help narrow down your list of host agencies and/or travel franchises in our choosing a host agency article. It's a nifty spreadsheet to help you narrow down your top host agency picks ! 😊

9. Read our Home-Based Travel Agent Resources Page  

We put together a page with loads of links so you don't have to scour the web. Here she be, the Home-Based Travel Agent Resources page. 😊

Not only that, connecting with host agencies, travel franchises and consortia couldn't be easier! You can go directly to a host's profile to write them via Host Agency Reviews' Q&A feature. The beauty of this is that tons of agents will also get to learn from your question too!

10. Sign up for HAR's 7 Day Setup Accelerator Course

Phew. That was list was a little overwhelming, wasn't it?

The fact is that there's a lot of groundwork that needs to take place in order to start a travel agency.  Wouldn't it be nice if someone with tons of experience who's helped over 10,000 agency get started could walk you through the setup?

We've got an option for that too! It's called our 7 Day Setup Accelerator course .

But don't take our word for it. Hear from some of our students on the value of bite-sized instructional videos, a supportive community, and access to the HAR team:

The course is written and taught by HAR Founder, Steph Lee, and professional Educator, Bridget Lee. It includes nine chapters with 70+ instructional videos, course quizzes, peer accountability, and monthly meet-ups with HAR members and industry experts. Check out HAR's 7DS Accelerator course below!!

As you can see, there are lots of things to do as you start a travel agency from home. But we're here to offer you a TON of resources and support.

So take a deep breath and we'll do it step-by-step together!

Once you start your travel agency from home, you'll have lots of other things that will demand your attention so laying the proper groundwork as soon as you can is smart business. 

Starting a Travel Agency from Home: What to Expect Time-Wise

In general, it will take a few years to get your agency off the ground.  This is the case with nearly all entrepreneurial endeavors.

Our travel advisor research reports continually show that it typically takes about 3 years to really start generating a sustainable income.

Here's why it can take time to see the cash flow when you starting a travel agency:

• It takes a while to build a client base and develop your brand
• Even when you do make your first bookings, you're not paid commission until after your client completes their travel (or after final payment for some vendors). So, if you make 7 bookings in January but the clients aren't traveling until November, you can see how your first-year money might be tight.
• Travel is something most people only do 1-2 times a year. Even with referrals and repeat clients, it can take a lot longer to build a steady business compared to a new restaurant or other service industries. 

Starting a Travel Agency from Home: What to Expect Money-Wise

And money. You probably want to know what you can expect when it comes to money and starting that travel agency from home, huh?! 😊

I hate to admit it but there is no one set answer. It depends on soooo many factors. The good news is that we were so curious to answer this question that we asked a few hundred new travel agents about their income in the first years of starting a travel agency.

Here's some hard data on travel agent income and travel agency start up costs in the first 5 years of business!

Even more travel agent income data

Want to dig into travel agent income data even more? Here's a great reading list that will give you an idea of what you might expect to earn when starting a travel agency: 

There's a lot of things to look forward to when it comes to a travel agent career . Check out our (free) annual event, Host Week , to get a flavor of what you can expect once you decide to start a travel agency.

The travel industry opens possibilities of traveling to beautiful places to help you do your job better. You'll get to attend things like FAM trips , ship inspections and go on site inspections. When you sell enough, you'll have access to travel agent rates .

All that said, it's important to understand that you still have to (*ahem*) work if you're a travel advisor- --you just get to have a lot more fun doing it than most people (yay)! :)

Questions? Ask Away.

I grew up in the travel industry and have I've worked with thousands of agents looking to start a travel agency. It's totally my jam. And it's not just my jam.

The entire HAR team is here to help you start (and grow) a successful travel agency. Ask us questions in the comments, drop us a line via email, or reach out to us on social. We love helping bring new people into our amazing industry! 🤗

Editor's Note: This article was originally published in July 2021. We updated this resource and republished it on publish date above.

About the Author

Steph grew up in the travel industry, helping on and off with her mom's homebased travel agency. She has worked with thousands of agents in her role as a former host agency director before leaving in 2012 to start HAR. She's insatiably curious, loves her pups Fennec and Orion, and -- in case you haven't noticed -- is pretty quirky and free-spirited.

If you’re looking for Steph, she leaves a trace where ever she goes! You can find her on Facebook, Instagram, LinkedIn (her fav) and Pinterest as 'iamstephly'. 🙂 You can also catch her on her Substack, Bumblin' Around, where she writes on things outside the world of HAR.

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Travel Agency

Back to All Business Ideas

How to Start a Travel Agency

Written by: Carolyn Young

Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on December 13, 2021 Updated on May 8, 2024

Investment range

$2,150 - $10,600

Revenue potential

$78,000 - $300,000 p.a.

Time to build

0 – 3 months

Profit potential

$62,000 - $90,000 p.a.

Industry trend

Who doesn’t love to travel? But most of us do not love the endless research, planning, and booking required, which sometimes feels like it takes more time than the vacation itself. This is precisely why the $35 billion US travel agency industry has been booming of late, and why it offers a real opportunity for the travel-minded entrepreneur.

By starting your own online travel agency, you can shoulder travelers’ burden and ease their anxiety, allowing them to enjoy their holiday while you make a healthy profit. And thanks to the post-pandemic boost, now is a great time to get in on travel.

Of course, starting a travel agency will not be a vacation – it will take diligence, patience, and strong guidance. Thankfully, you’ve come to the right place, as this step-by-step provides all the information you need to develop and launch your new travel agency and give you a head-start on your entrepreneurial journey.

Step by Step Business values real-life experience above all. Through our  Entrepreneur Spotlight Series , we interview business leaders from diverse industries, providing readers with firsthand insights.

Uncover the secrets to building a thriving travel agency with our interview with Casey Halloran of Costa Rican Vacations .

Aspiring travel entrepreneurs will find valuable insights in our interview with Augustin Ndikuriyo on building a thriving African wildlife tour business .

Looking to register your business? A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple.

Form your business immediately using ZenBusiness LLC formation service or hire one of the Best LLC Services .

Step 1: Decide if the Business Is Right for You

Pros and cons.

Every business has its pros and cons, and a travel agency is no exception. You should weigh these carefully to decide if the business is right for you.

• Flexibility – Work from anywhere, even while traveling!
• Minimal Training – Get accredited for free online
• Travel Discounts – Travel agents get top deals and reduced prices
• Demanding Work – With clients around the world you’re on call 24/7
• Fierce competition – Top sites like Expedia, travel networks, advisors, and more

Travel agency industry trends

The US travel agency industry expanded an impressive 75% in the decade leading up to 2020, which saw a massive pandemic-driven downturn. 

In 2021, many travel agents saw a surge in business as travelers unsure of all the constantly changing Covid-19 rules and restrictions turn to them for help, rather than booking their own trips. Global travel advisor InteleTravel experienced a 35% increase in business, not from the disaster year of 2020, but from 2019, which had set records.(( https://www.nytimes.com/2021/04/14/travel/summer-vacation-travel-agents.html ))

Consumers are also turning more and more to online travel agencies, with a study by Expedia showing a 25% increase in the use of online agencies in 2020 alone. Brick-and-mortar agencies seem to be a dying breed, with British travel icon Thomas Cook closing in 2019.(( https://advertising.expedia.com ))

Industry size and growth

• Industry size and past growth – Market research firm IBISWorld values the industry at nearly $48 billion in 2022.(( https://www.ibisworld.com/industry-statistics/market-size/travel-agencies-united-states/ ))  
• Growth forecast – The industry is expected to grow further as the Bureau of Labor Statistics predicted a 5% annual growth through 2030 in the employment of travel agents.(( https://www.bls.gov/ooh/sales/travel-agents.htm )) 
• Number of businesses – More than 73,000 travel agencies are operating in the US.(( https://www.ibisworld.com/industry-statistics/number-of-businesses/travel-agencies-united-states/ ))
• Number of people employed – The industry employs more than 250,000 people.(( https://www.ibisworld.com/industry-statistics/employment/travel-agencies-united-states/ ))

Trends and challenges

Trends in travel agency industry include:

• Home-stay rentals like Airbnb(( https://stepbystepbusiness.com/business-ideas/start-an-airbnb-business/ )) outperformed hotels in 27 top markets during the pandemic
• Book-now-pay-later options, such as those offered by Expedia and Booking.com, are gaining popularity
• Travel agencies undergoing digital transformation in response to the growing demand for online services

Challenges in travel agency industry include:

• Rising gas prices are impacting travel behavior
• Compliance with global Covid-19 protocols
• Keeping up with digital marketing opportunities

What kind of people work in a travel agency?

• Gender – 76% of travel agency managers in the US are female, while 24% are male. (( https://www.zippia.com/travel-agency-manager-jobs/demographics/#gender-statistics ))
• Average level of education – 64% of travel agency managers hold a bachelor’s degree.(( https://www.zippia.com/travel-agency-manager-jobs/demographics/#degree-level-types ))
• Average age – The average age of a travel agency manager is 51 years old.(( https://www.zippia.com/travel-agency-manager-jobs/demographics/#age-statistics ))

How much does it cost to start a travel agency?

The startup costs for a travel agency range from about $2,000 to $10,000, with an average of around $6,000. The high-end includes the rental of office space and a larger marketing budget, but you could easily run your online travel agency from home to cut costs.

How much can you earn from a travel agency?

The commission paid to a travel agency by travel vendors such as airlines and hotels is generally about 10%. Some travel agents also charge a nominal consultation fee for each booking, typically between $30 and $50. Those will be your two revenue streams.

The average cost of a one-week domestic vacation is $1,500 per person. The profit margin for a home-based travel agency is usually about 80%. With an office and staff, your margin will likely drop to about 30%.

In your first year or two, you could work from home and sell five two-person vacations each week. At a 10% commission, this would mean $78,000 in annual revenue. You’d have about $62,000 in profit, assuming an 80% margin.

As your brand gains recognition, sales could climb to 1,000 two-person vacations a year. At this stage, you would rent an office and hire staff, reducing your profit margin to 30%. With expected annual revenue of $300,000, you would make about $90,000.

What barriers to entry are there?

There are a few barriers to entry for a travel agency. Your biggest challenges will be:

• Competition – Big and small online firms; self-booking travelers
• Client Acquisition – Time and marketing will be required to build a reputation

Related Business Ideas

How to Start an Airbnb Business

How to Start a Bed & Breakfast

How to Start a Glamping Business

Step 2: hone your idea.

Now that you know what’s involved in starting a travel agency, it’s a good idea to hone your concept in preparation to enter a competitive market.

Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.

Why? Identify an opportunity

As a travel agency, you need to find a way to differentiate yourself from the competition. Research online travel agents and booking platforms to see their offerings and prices, while keeping an eye out for something that might be missing.

Perhaps you could specialize in travel to an under-appreciated region, such as Southeast Asia, and build a network of relevant contacts and vendors. Or you could focus on finding travelers the most incredible home-stay rentals at the best prices.

You could specialize in family vacations, corporate retreats, or honeymoons. The potential niche options in the travel industry are nearly endless.

What? Determine your products or services

Travel can involve many facets, and you can handle some or all of them, in addition to flights, lodgings, and car rentals. These might include:

• Booking tours and excursions
• Dining recommendations/reservation
• Travel insurance
• Visa and emergency services

How much should you charge for travel agency services?

Travel vendors, such as hotels, airlines, and car rental firms, pay a commission to travel agents that’s generally about 10% of the booking. For instance, if you book a $1,200 flight on Turkish Airlines for your client, Turkish Airlines will give you, the travel agent, a $120 commission.

As a result, booking flights with a travel agent sometimes costs the traveler slightly more than booking directly with the airlines or through a travel site like Expedia or Orbitz. Thus, to attract customers and boost sales travel agents rely on discounted travel packages.

For instance, a return flight from Chicago to Cancun and a 6-day stay at a four-star all-inclusive resort, plus ground transport, might cost a traveler $1,000 or more to book directly. But travel agents get significant discounts from vendors because they place volume orders, so you’d be able to offer this trip as a $599 package deal.

Even after paying your commission, the traveler still saves a chunk of money by using your services, rather than booking themselves. And keep in mind, the discounts offered by vendors are likely to increase as you become a more established agent. You may be able to negotiate commissions from tour operators and excursion companies as well.

Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify your target market

Your target market will depend on the concept you’ve chosen for your agency. If you’ve decided to specialize in family vacations, you’ll be targeting parents. You might find them on sites like Facebook or LinkedIn, rather than Instagram or TikTok.

Where? Choose your business premises

In the early stages, you may want to run your business from home to keep costs low. But as your travel agency grows, you’ll likely need to hire workers and may need to rent out an office. You can find commercial space to rent in your area on Craigslist , Crexi , and Commercial Cafe .

When choosing a commercial space, you may want to follow these rules of thumb:

• Central location accessible via public transport
• Ventilated and spacious, with good natural light
• Flexible lease that can be extended as your business grows
• Ready-to-use space with no major renovations or repairs needed

Step 3: Brainstorm a Travel Agency Name

Here are some ideas for brainstorming your business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better
• The name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “travel” or “bookings”, boosts SEO
• Choose a name that allows for expansion: “Wanderlust Adventures” over “Beach Bum Vacations” or “Honeymoon Haven Agency”
• A location-based name can help establish a strong connection with your local community and help with the SEO but might hinder future expansion

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

Find a Domain

Powered by GoDaddy.com

Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that set your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create a Travel Agency Business Plan

Here are the key components of a business plan:

• Executive Summary: Present an overview of your travel agency, highlighting its focus on providing personalized travel planning and booking services for various types of travelers.
• Business Overview: Describe the services of your travel agency, including custom travel itinerary planning, booking accommodations, flights, and special experiences.
• Product and Services: Detail the range of travel packages offered, such as luxury vacations, adventure tours, and corporate travel services.
• Market Analysis: Assess the current travel market, identifying target customer segments like families, honeymooners, or business travelers.
• Competitive Analysis: Compare your agency to others, focusing on your unique offerings like specialized destinations, personalized service, or exclusive deals.
• Sales and Marketing: Outline your strategy for attracting clients, using methods like online marketing, partnerships with travel providers, or attending travel expos.
• Management Team: Highlight the experience and expertise of your team in travel planning, customer service, and business management.
• Operations Plan: Describe the process of service delivery, from client consultation to trip execution and post-travel follow-up.
• Financial Plan: Provide an overview of financial aspects, including startup costs, pricing strategy, and anticipated income.
• Appendix: Include supplementary documents such as travel industry certifications, partnership agreements, or detailed client testimonials to support your business plan.

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business!

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you are planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to travel agencies.

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state.

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your travel agency will shape your taxes, personal liability, and business registration requirements, so choose wisely.

Here are the main options:

• Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• General Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company (LLC) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
• C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
• S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC , which just needs to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization , and answer any questions you might have.

Form Your LLC

Choose Your State

We recommend ZenBusiness as the Best LLC Service for 2024

Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number , or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN.

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

The IRS website also offers a tax-payers checklist , and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you are completing them correctly.

Step 7: Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

• Bank loans : This is the most common method, but getting approved requires a rock-solid business plan and strong credit history.
• SBA-guaranteed loans : The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan .
• Government grants : A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
• Venture capital : Offer potential investors an ownership stake in exchange for funds, keeping in mind that you would be sacrificing some control over your business.
• Friends and Family : Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
• Crowdfunding : Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
• Personal : Self-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best options, other than friends and family, for funding a travel agency. You might also try crowdfunding if you have an innovative concept.

Step 8: Apply for Travel Agency Licenses and Permits

Starting a travel agency requires obtaining a number of licenses and permits from local, state, and federal governments.

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration ( OSHA ), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package . They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money you’ll need a place to keep it, and that requires opening a bank account .

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your travel agency business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account.

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

• General liability: The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business Property: Provides coverage for your equipment and supplies.
• Equipment Breakdown Insurance: Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation: Provides compensation to employees injured on the job.
• Property: Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto: Protection for your company-owned vehicle.
• Professional liability: Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP): This is an insurance plan that acts as an all-in-one insurance policy, a combination of any of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business.

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks.

You may want to use industry-specific software to manage bookings and scheduling, such as TravelPerk , TravelCEO , and TravelOperations .

• Popular web-based accounting programs for smaller businesses include Quickbooks , Freshbooks , and Xero .
• If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial.

Develop your website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.

You can create your own website using services like WordPress, Wix, or Squarespace . This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.

Your website should showcase your offerings, customer testimonials, and detailed information about destinations.

Your clients are unlikely to find your website, however, unless you follow Search Engine Optimization ( SEO ) practices. These are steps that help pages rank higher in the results of top search engines like Google.

Here are some powerful marketing strategies for your future business:

• Leverage Social Media : Use platforms like Instagram, Facebook, and Pinterest to share stunning travel imagery, customer stories, and travel tips. Engage with your audience through regular posts, stories, and responses to comments.
• Content Marketing : Start a blog or a YouTube channel providing valuable content like travel guides, tips, destination reviews, and travel trends. This not only helps in SEO but also establishes you as an expert in the field.
• Build Partnerships : Collaborate with local businesses in your chosen travel destinations, such as hotels, tour operators, and local attractions. This can lead to exclusive deals or packages that you can offer to your clients.
• Email Marketing : Collect emails through your website and social media channels and send out regular newsletters with travel tips, special offers, and new package announcements.
• Customer Reviews and Referrals : Encourage your clients to leave reviews on platforms like TripAdvisor or Google. Word-of-mouth referrals are powerful, so consider offering incentives for referrals.
• Attend Travel Expos and Events : Participate in travel expos, seminars, and networking events to build contacts and stay updated on the latest industry trends.
• Offer Personalized Services : Tailor your services to meet individual client needs. Personal touches can make a big difference in the travel industry.
• Utilize Paid Advertising : Invest in targeted ads on social media and Google to reach potential clients. This can be particularly effective when you have special offers or new packages to promote.
• Stay Informed and Flexible : The travel industry is dynamic, so it’s important to stay informed about global travel trends, destination updates, and customer preferences.
• Sustainable and Responsible Travel : With growing awareness about environmental and cultural impacts, promoting sustainable and responsible travel practices can set your agency apart.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that set it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your travel agency meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire.

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your travel agency could be:

• Travel to Asia’s best secret destinations
• The best local insights and insider adventures
• Vacations for the whole family, from grandma to the baby!

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a travel agency, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in travel agencies for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in travel. You’ll probably generate new customers or find companies with which you could establish a partnership. Online businesses might also consider affiliate marketing as a way to build relationships with potential partners and boost business.

Step 12: Build Your Team

If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a travel agency would include:

• Travel Agents – sales and bookings
• General Manager – scheduling, accounting, staff management
• Marketing Lead – SEO strategies, social media, other marketing

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need.

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed , Glassdoor , or ZipRecruiter . Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent.

Step 13: Run a Travel Agency – Start Making Money!

Owning a travel agency means sharing the joy of travel for a living. What could be more fun? It’s also a huge, high-growth industry that you could tap into and grow a profitable business. Startup costs are low, and all you need is a simple accreditation — there’s no real training required. You just need a good concept for your agency and a great marketing plan. Having a strong online presence in this digital age is also an absolute must.

You’ve started off on the right foot by reading this guide, and now you’re ready to begin your trip to entrepreneurial success!

• Travel Agency Business FAQs

If you run your online travel agency from home, you could have profit margins of up to 80%. Costs to run your travel agency are very low, and you’re paid around a 10% commission on everything that you book. As a home-based, one-person show, you could make $60,000 per year to start, and much more once you’re established.

Consumers are turning to online travel agencies more and more, which you could easily run from home. If your business grows fast and you need to add staff, you may want to have an office.

Some consumers prefer the personal service of a smaller online agency that can offer more local, personal insights about travel destinations. The key is to differentiate yourself in some way. You could specialize in certain locations, a specific type of lodgings, such as cabins, or in a type of vacation such as corporate retreats.

Travel agencies engage in activities such as providing travel advice, booking travel arrangements, managing logistics, and offering specialized services tailored to clients’ needs.

Effective marketing strategies for a travel agency include building a strong online presence, targeted advertising, content marketing, collaborations and partnerships, and leveraging customer referrals and reviews.

Running a travel agency can have challenges due to intense competition, evolving industry dynamics, regulatory considerations, seasonal fluctuations, and the need for customer satisfaction and crisis management. 

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• Decide if the Business Is Right for You
• Hone Your Idea
• Brainstorm a Travel Agency Name
• Create a Travel Agency Business Plan
• Register Your Business
• Register for Taxes
• Fund your Business
• Apply for Travel Agency Licenses and Permits
• Open a Business Bank Account
• Get Business Insurance
• Prepare to Launch
• Build Your Team
• Run a Travel Agency - Start Making Money!

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How to Start a Profitable Travel Agency Business [11 Steps]

By Nick Cotter Updated Feb 02, 2024

Business Steps:

1. perform market analysis., 2. draft a travel agency business plan., 3. develop a travel agency brand., 4. formalize your business registration., 5. acquire necessary licenses and permits for travel agency., 6. open a business bank account and secure funding as needed., 7. set pricing for travel agency services., 8. acquire travel agency equipment and supplies., 9. obtain business insurance for travel agency, if required., 10. begin marketing your travel agency services., 11. expand your travel agency business..

When starting a travel agency business, it's crucial to understand the market landscape to tailor your services effectively and identify your niche. A thorough market analysis will provide insights into customer preferences, competition, and emerging trends. Here are the key steps to guide you through the process:

• Analyze the current travel industry trends to determine popular destinations, types of travel, and customer behavior.
• Identify your target market by considering factors such as demographics, psychographics, and purchasing power.
• Examine your competitors by looking at their service offerings, pricing strategies, marketing approaches, and customer reviews.
• Assess the demand for specific travel services within your intended market to find potential gaps you can fill.
• Investigate the economic factors that could affect the travel industry, including currency fluctuations, political stability, and seasonal changes.
• Gather data on supplier options for flights, accommodations, tours, and other travel services to negotiate the best arrangements for your clients.

Are travel agency businesses profitable?

Yes, travel agency businesses can be profitable. Depending on the size and scope of the business, profits can vary significantly. Profits are usually reliant on being able to attract clients and provide competitive prices for airline tickets, hotels and other services.

Creating a comprehensive business plan is crucial for the success of your travel agency. It will serve as a roadmap for your business, outlining your goals, strategies, and how you plan to achieve them. Below are the key components to include in your travel agency business plan.

• Executive Summary: Provide an overview of your business, including your mission statement, offerings, and unique selling propositions.
• Company Description: Detail the nature of your travel agency, the services you offer, and the markets you serve.
• Market Analysis: Research the travel industry, identify your target market, and analyze your competition.
• Organization and Management: Describe the structure of your business, your team, and the roles each member plays.
• Services: List the travel services you plan to offer and any special packages or niche markets you intend to target.
• Marketing Plan: Outline how you intend to attract and retain customers, including your sales strategy and promotional activities.
• Financial Projections: Provide an estimate of starting costs, projected income, and long-term financial forecasts.
• Funding Request: If you're seeking financing, specify the amount needed and how it will be used.

How does a travel agency business make money?

Travel agencies make money by charging a fee or commission for the services they provide when they arrange flights, hotels and car rentals for their clients. They also generate revenue through commission on package deals combining several travel services as well as income from advertisements by tourism boards or tour operators. A target audience for a 11 Steps To Starting a Successful Spice Business are aspiring entrepreneurs who are looking to sell spice products online, in stores or at farmers markets. These individuals must possess knowledge of the spice industry and should be familiar with the necessary regulations before starting the business.

Creating a distinctive brand for your travel agency is crucial as it sets the tone for your services and establishes a memorable identity. Your brand should resonate with your target audience and reflect the unique experiences you offer. Below are key steps to help you develop a compelling travel agency brand:

• Identify Your Niche: Determine the specific market or type of travel services you want to specialize in, such as luxury travel, eco-tourism, adventure travel, or cultural experiences.
• Define Your Brand Personality: Choose a brand voice and personality that reflects your agency's values and appeals to your target demographic. Whether it's professional, friendly, adventurous, or sophisticated, ensure consistency across all communications.
• Create a Memorable Name and Logo: Your agency's name and logo are often the first impressions potential clients will have. Make sure they are unique, easy to remember, and visually appealing.
• Develop a Color Scheme and Visuals: Select colors and visuals that convey the emotions and experiences you want your brand to evoke. Consistent use of these elements will increase brand recognition.
• Craft Your Unique Value Proposition: Clearly articulate what sets your agency apart from competitors. Highlight your expertise, exclusive deals, personalized services, or unique travel packages.
• Integrate Your Brand Across All Platforms: Ensure your branding is consistent on your website, social media, marketing materials, and customer service to create a cohesive brand experience.

How to come up with a name for your travel agency business?

Coming up with a name for your travel agency business can be tricky. Brainstorming ideas, researching industry trends, and understanding the local culture can be helpful in giving you some inspiration. Consider what your business stands for and come up with a name that captures the core message. Ask friends, family, or even employees or customers their opinion on potential names to get fresh perspectives. Ultimately, pick the name that feels right and reflects the unique style of your business, as it should be something you can live with for years to come.

Formalizing your business registration is a crucial step in establishing your travel agency as a legal entity. This process involves completing the necessary paperwork and meeting the regulatory requirements of your jurisdiction. Follow the steps below to ensure your business is properly registered and ready for operation.

• Choose a business structure: Decide whether you'll operate as a sole proprietorship, partnership, LLC, or corporation. Each has its own legal and tax implications.
• Register your business name: Check if your desired business name is available and register it with the appropriate state agency. You may also want to trademark your name.
• Obtain an EIN: Apply for an Employer Identification Number (EIN) from the IRS for tax purposes, especially if you have employees or operate as a corporation or partnership.
• Register for state and local taxes: Depending on your location, register for state sales tax, use tax, and any other required local taxes.
• Get necessary licenses and permits: Acquire all relevant travel industry licenses, such as the Seller of Travel license, and any local business permits.
• File formation documents: If you're forming an LLC or corporation, submit your Articles of Organization or Incorporation with the state.
• Open a business bank account: Use your EIN to open a dedicated bank account for your travel agency to keep finances separate from personal accounts.

Resources to help get you started:

Explore crucial resources designed for travel agency entrepreneurs offering insights on market trends, operational best practices, and strategies for business expansion:

• Travel Weekly: A leading publication covering news, trends, and research for the travel industry. http://www.travelweekly.com/
• Skift: Provides news, research, and marketing services for the travel industry, with insights on consumer trends and behaviors. https://skift.com/
• Phocuswright: Offers travel market research with comprehensive reports on consumer technology trends and industry data. https://www.phocuswright.com/
• The Travel Institute: A go-to resource for travel agent training, certification, and professional development. https://www.thetravelinstitute.com/
• Tnooz: Publishes news and analysis on technology, digital marketing, and strategy for the travel and hospitality industry. http://www.tnooz.com/

Starting a travel agency requires meticulous attention to legal requirements to ensure compliance with local, state, and federal regulations. Acquiring the necessary licenses and permits is a critical step that legitimizes your business and allows you to operate within the law. Follow these guidelines to ensure you have all the necessary documentation in place:

• Research Local Regulations: Check with your city or county government to determine if you need a local business license to operate a travel agency.
• State Requirements: Some states require travel agents to register with a state travel seller or travel agency program. Make sure to obtain any state-specific licenses.
• Seller of Travel License: If your state requires it, apply for a Seller of Travel license, which permits you to legally sell travel services.
• Federal Requirements: For certain types of travel services, such as selling airline tickets, you might need to comply with federal regulations and obtain an Airline Reporting Corporation (ARC) accreditation.
• Professional Certifications: While not mandatory, obtaining professional certifications like those from the American Society of Travel Agents (ASTA) can enhance credibility.
• Additional Permits: Depending on your business model, you may need additional permits, such as an EIN for tax purposes or special permits for selling travel insurance.

What licenses and permits are needed to run a travel agency business?

Travel agencies need to acquire several licenses and permits in order to legally operate their business. This will vary depending on location, so it's important to contact the relevant state and local authorities to find out what is required. Generally speaking, travel agency businesses typically need a certificate of authority from the state, a business license from the city/county, an Employer Identification Number (EIN) from the Internal Revenue Service (IRS), any necessary zoning permits for the office space being used, and any necessary travel agent accreditation or registration with external organizations.

Securing your financial foundation is a critical step in launching your travel agency business. A dedicated business bank account will help you manage your finances effectively, while securing funding will ensure that you have the necessary capital to cover startup costs and maintain operations. Follow these pointers to get started:

• Choose the right bank: Research banks to find one that offers favorable terms for small businesses. Consider fees, minimum balance requirements, and additional services such as online banking and credit card processing.
• Prepare documentation: When opening a business bank account, you'll need your business registration documents, EIN (Employer Identification Number), and personal identification.
• Explore funding options: Evaluate different funding sources such as small business loans, lines of credit, venture capital, angel investors, or crowdfunding. Each has its own advantages and requirements.
• Create a solid business plan: A well-thought-out business plan is essential when applying for funding. It should outline your business model, market analysis, financial projections, and growth strategy.
• Understand the terms: Before accepting any funding, make sure you fully understand the terms and conditions, including interest rates, repayment schedules, and any potential equity you might be giving up.

When setting up your travel agency, one of the most crucial steps is to determine the pricing strategy for your services. This involves balancing competitiveness with profitability while ensuring value to your customers. Here's a concise guide to assist you in setting your pricing:

• Research Competitors: Look at what others are charging for similar services to ensure your prices are competitive within the market.
• Understand Your Costs: Calculate all your costs to ensure that your pricing covers expenses and leaves room for profit.
• Value-Based Pricing: Consider the value and unique experiences you offer, and price accordingly rather than solely on cost-plus basis.
• Dynamic Pricing: Be flexible with your pricing, adjusting for seasons, demand, and special promotions.
• Commission Structure: If working with commission-based products, ensure that your markups are reasonable for both clients and your agency.
• Transparent Pricing: Clearly communicate what is included in your prices to build trust with your clients.
• Multiple Price Points: Offer different pricing tiers for various budgets, enhancing accessibility to a wider range of clients.
• Monitor and Adjust: Regularly review and adjust your pricing strategy based on feedback, sales data, and market changes.

What does it cost to start a travel agency business?

Initiating a travel agency business can involve substantial financial commitment, the scale of which is significantly influenced by factors such as geographical location, market dynamics, and operational expenses, among others. Nonetheless, our extensive research and hands-on experience have revealed an estimated starting cost of approximately $15000 for launching such an business. Please note, not all of these costs may be necessary to start up your travel agency business.

Starting a travel agency requires careful planning and acquisition of essential equipment and supplies. This step is crucial as it ensures that your business operations run smoothly and professionally. Here is a list of items you should consider obtaining to set up your travel agency effectively.

• Computer Systems: Invest in reliable computers with high-speed internet connections to manage bookings, communications, and other tasks efficiently.
• Travel Agency Software: Get specialized software for travel agents that can help with itinerary planning, reservations, billing, and customer relationship management.
• Telephone System: A multi-line telephone system is necessary for handling customer inquiries and bookings, as well as for communicating with vendors.
• Office Furniture: Comfortable and functional furniture, including desks, chairs, and filing cabinets, is important for a professional working environment.
• Printers and Scanners: High-quality printers and scanners are needed for printing travel documents, itineraries, and marketing materials.
• Office Supplies: Stock up on essential office supplies such as paper, pens, envelopes, and stationery.
• Marketing Materials: Prepare promotional materials like brochures, business cards, and flyers to attract and inform potential clients.
• Payment Processing System: Set up a secure payment system for processing credit card transactions and managing finances.

List of software, tools and supplies needed to start a travel agency business:

• Computer hardware and software - $500+
• Business grade internet connection - $50+ per month
• Printer/scanner - $150+
• Travel booking software - $50+ monthly
• Travel research software - $120+ monthly
• Accounting software - $200+ annually
• Office furniture - $500+
• Promotional materials (posters, flyers, banners) - starting at $200+
• Bookkeeping services - $50+ hourly
• Insurance coverage – starting at $500+ annually

Acquiring the appropriate business insurance is a crucial step in safeguarding your travel agency. It protects against potential liabilities and unforeseen events that could impact your operations. Here's a guide to help you understand what insurance you may need:

• General Liability Insurance: Covers bodily injury, property damage, and advertising injury claims that could arise during your business activities.
• Professional Liability Insurance (Errors & Omissions): Protects against claims of negligence or mistakes in the professional services provided.
• Commercial Property Insurance: Ensures your physical assets, such as office equipment and furniture, are covered in case of damage or loss.
• Workers' Compensation Insurance: Required if you have employees, it covers medical expenses and lost wages for work-related injuries or illnesses.
• Data Breach Insurance: Protects against the costs associated with a data breach, which is crucial if you store sensitive customer information.
• Business Owner's Policy (BOP): Often bundles general liability and property insurance at a more cost-effective rate.

Consult with an insurance broker who specializes in travel agencies to find the best coverage for your specific needs.

With your travel agency set up and ready to go, it's time to attract customers and make your mark in the travel industry. Effective marketing is crucial for getting your agency noticed and building a client base. Here are some strategies to kickstart your marketing efforts:

• Develop a strong brand identity: Create a memorable logo, slogan, and brand colors that reflect your agency's values and appeal to your target audience.
• Build a professional website: Your website should be user-friendly, offer valuable content, and showcase your travel packages and services. Ensure it's optimized for search engines to improve visibility.
• Utilize social media: Create profiles on platforms like Facebook, Instagram, and Twitter to share travel tips, special offers, and engage with potential customers.
• Network locally: Attend local events, join chambers of commerce, and partner with local businesses to gain referrals and increase your agency's presence in the community.
• Offer referral incentives: Encourage existing customers to refer friends and family by providing discounts or special offers for successful referrals.
• Invest in online advertising: Use pay-per-click advertising and social media ads to target potential travelers who are searching for the services you offer.

Expanding your travel agency business requires strategic planning and a keen understanding of your market. As you capitalize on your agency's success, consider these steps to take your business to the next level and ensure continued growth.

• Diversify Your Offerings: Add new destinations, packages, and services such as travel insurance, airport transfers, or guided tours to cater to a broader audience.
• Invest in Marketing: Boost your online presence through social media, content marketing, and SEO. Consider partnerships with influencers or travel bloggers to reach new customers.
• Improve Technology: Upgrade your booking systems for efficiency, and adopt customer relationship management (CRM) tools to enhance client interactions and retention.
• Train Your Staff: Ensure your team is knowledgeable and up-to-date with the latest travel trends, destinations, and customer service practices to provide exceptional experiences.
• Network with Industry Partners: Forge strong relationships with suppliers, local tour operators, and other travel agencies for mutual referrals and co-marketing opportunities.
• Focus on Customer Loyalty: Create a rewards program or special offers for repeat customers to encourage loyalty and word-of-mouth referrals.
• Analyze and Adapt: Regularly review your business performance, gather customer feedback, and be willing to adapt to changing travel trends and market demands.

How to Start a Travel Agency

Most travel agencies earn revenue through commissions. Consumers often choose agencies because they help cut down on time needed to research various locations and book accommodations. A popular trend in the industry is online agencies, which operate mostly or exclusively online.

Learn how to start your own Travel Agency and whether it is the right fit for you.

Ready to form your LLC? Check out the Top LLC Formation Services .

Start a travel agency by following these 10 steps:

• Plan your Travel Agency
• Form your Travel Agency into a Legal Entity
• Register your Travel Agency for Taxes
• Open a Business Bank Account & Credit Card
• Set up Accounting for your Travel Agency
• Get the Necessary Permits & Licenses for your Travel Agency
• Get Travel Agency Insurance
• Define your Travel Agency Brand
• Create your Travel Agency Website
• Set up your Business Phone System

We have put together this simple guide to starting your travel agency. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out other small business ideas .

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

What will you name your business?

• What are the startup and ongoing costs?
• Who is your target market?

How much can you charge customers?

Luckily we have done a lot of this research for you.

Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Travel Agency Name Generator

If you operate a sole proprietorship , you might want to operate under a business name other than your own name. Visit our DBA guide to learn more.

When registering a business name , we recommend researching your business name by checking:

• Your state's business records
• Federal and state trademark records
• Social media platforms
• Web domain availability .

It's very important to secure your domain name before someone else does.

Want some help naming your travel agency?

Business name generator, what are the costs involved in opening a travel agency.

While some sources suggest you can pay a host agency $400 to $1,200 to get started from home, there are host agencies that don’t charge you anything to use them as your host. A host agency basically takes care of all the regulatory and back office requirements and splits the commission with you as the business owner.

To start your own independent agency may cost you between $1,000 and $10,000, depending on the markets you serve and your existing book of clients.

What are the ongoing expenses for a travel agency?

Fortunately, expenses for this type of business are low and are limited to printed brochures and typical office paperwork. If you are working through a host agency, some or all of your advertising may be paid for.

Who is the target market?

Most clients and customers are people who want to travel to another country. While domestic agencies do exist, the market is really in international travel these days. The types of clients an agency might serve depend entirely on the current market place. Client needs range from simple vacations to corporate retreats to medical tourism.

How does a travel agency make money?

Commissions are the way in which travelling agencies have traditionally made the majority of their income. Airlines and hotels would pay agencies a certain fee for utilizing their companies when booking for a client. However, with the recent proliferation of booking technology, including Google Travel, travelling apps, and company websites, these businesses are more accessible to consumers and no longer rely on travelling agencies to promote their services. For this reason, airlines and hotels have largely stopped paying travel agencies commissions. As a result, travel agencies have been forced to adapt, focusing less on simple bookings and more on navigating complex itineraries and the legalities of travelling in specific regions or countries. They have shifted to charging flat rates for bookings and hourly rates for consulting services related to planning travels and navigating legalities.

Travel agents working independently typically charge $30 for booking a flight, $50 for sleeping accommodations in a single destination, and $100/hour for research and planning advice. If a travel agent manages to procure commissions from an airline or hotel, these will typically be around 10%.

How much profit can a travel agency make?

First-year income for a home-based agency is between $30,000 and $50,000. As the business expands, revenues can rise to over $100,000, but this usually requires hiring other agents and staff support.

How can you make your business more profitable?

Travel agencies that specialize tend to make more money. For example, according to the US Bureau of Labor and Statistics (BLS), travel agencies can bring in between $30,000 and $50,000 per year. General agencies or agencies that offer only leisure travel services make the least, while corporate and medical tourism specialties tend to make the most.

There are several types of specialties in the travel industry:

• Leisure Agent
• Corporate Agent
• International Agent
• Medical Tourism Agent

A leisure agent books primarily leisure and vacation travel. For example, this might include family vacations or sabbaticals.

Corporate agents primarily book travel for corporations. Usually, corporate clients are looking for business trips or retreats. Often, the corporate client needs special attention, including complex booking schedules that include both accommodations, local travel, and entertainment

Medical tourism is a highly specific niche segment of the industry. These agents research countries for medical patients who want treatments that are either not available or are too expensive in their home country. For example, a patient may be looking for an experimental cancer treatment which is only available in a particular country.

International agents book international travel plans. These could be for corporate clients but are typically for individuals. These individuals may be looking for universities abroad, a new country to buy property in, or even a new country to move to.

Want a more guided approach? Access TRUiC's free Small Business Startup Guide - a step-by-step course for turning your business idea into reality. Get started today!

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship , partnership , limited liability company (LLC) , and corporation .

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your travel agency is sued.

Form Your LLC

Read our Guide to Form Your Own LLC

Have a Professional Service Form your LLC for You

Two such reliable services:

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

Recommended: You will need to elect a registered agent for your LLC. LLC formation packages usually include a free year of registered agent services . You can choose to hire a registered agent or act as your own.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

You can acquire your EIN through the IRS website . If you would like to learn more about EINs, read our article, What is an EIN?

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil .

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Recommended: Read our Best Banks for Small Business review to find the best national bank or credit union.

Get a business credit card

Getting a business credit card helps you:

• Separate personal and business expenses by putting your business' expenses all in one place.
• Build your company's credit history , which can be useful to raise money later on.

Recommended: Apply for an easy approval business credit card from BILL and build your business credit quickly.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

State & Local Business Licensing Requirements

Fourteen states require a Travel Sellers Registration License to sell travel. A license can be obtained through an application, which typically involves a fee and supporting documents such as membership in a professional association. Here is a list of states requiring Travel Sellers Registration Licenses.

Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses .

Certificate of Occupancy

A travel agency is usually run out of a physical location. Businesses operating out of a physical location typically require a Certificate of Occupancy (CO). A CO confirms that all building codes, zoning laws and government regulations have been met.

• It is generally the landlord’s responsibility to obtain a CO.
• Before leasing, confirm that your landlord has or can obtain a valid CO that is applicable to an travel agency business.
• After a major renovation, a new CO often needs to be issued. If your place of business will be renovated before opening, it is recommended to include language in your lease agreement stating that lease payments will not commence until a valid CO is issued.
• You will be responsible for obtaining a valid CO from a local government authority.
• Review all building codes and zoning requirements for you business’ location to ensure your travel agency business will be in compliance and able to obtain a CO.

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance . This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance . If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

FInd out what types of insurance your Travel Agency needs and how much it will cost you by reading our guide Business Insurance for Travel Agency.

STEP 8: Define your brand

Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.

If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners , we'll give you helpful tips and advice for creating the best unique logo for your business.

Recommended : Get a logo using Truic's free logo Generator no email or sign up required, or use a Premium Logo Maker .

If you already have a logo, you can also add it to a QR code with our Free QR Code Generator . Choose from 13 QR code types to create a code for your business cards and publications, or to help spread awareness for your new website.

How to promote & market a travel agency

Most new agency owners come from an established agency and have a book of clients. If you don’t start with an established agency, you must advertise your services. The best source for clients are referrals.

How to keep customers coming back

Agencies that are the most successful are specialty shops. For example, a travel agency might specialize in medical travel or corporate travel. A general agency will find it difficult to compete in today’s market.

STEP 9: Create your business website

After defining your brand and creating your logo the next step is to create a website for your business .

While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.

Here are the main reasons why you shouldn’t delay building your website:

• All legitimate businesses have websites - full stop. The size or industry of your business does not matter when it comes to getting your business online.
• Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own.
• Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don’t need to hire a web developer or designer to create a website that you can be proud of.

Recommended : Get started today using our recommended website builder or check out our review of the Best Website Builders .

Other popular website builders are: WordPress , WIX , Weebly , Squarespace , and Shopify .

STEP 10: Set up your business phone system

Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.

There are many services available to entrepreneurs who want to set up a business phone system. We’ve reviewed the top companies and rated them based on price, features, and ease of use. Check out our review of the Best Business Phone Systems 2023 to find the best phone service for your small business.

Recommended Business Phone Service: Phone.com

Phone.com is our top choice for small business phone numbers because of all the features it offers for small businesses and it's fair pricing.

Is this Business Right For You?

This business is perfect for individuals who are passionate about travel, love learning about and visiting new places, and are very detail oriented. Travel agency owners have very flexible hours but usually only after they have an established book of clients.

Want to know if you are cut out to be an entrepreneur?

Take our Entrepreneurship Quiz to find out!

Entrepreneurship Quiz

What happens during a typical day at a travel agency?

Day-to-day activities of a travel agency owner include checking faxes, phone messages, and incoming emails. You may also meet with clients and book numerous client trips during the day.

What are some skills and experiences that will help you build a successful travel agency?

There is no formal education or certification required to become a travel agent, but some states require you to have a license to operate as an agency:

Aside from that, there are voluntary certification programs that may help you enhance your knowledge of the industry and of travel in general:

Certified Travel Associate (CTA)

To get the CTA, you must have 18 months experience in the industry. You must take 8 core classes and 4 electives. You can finish your course in 3-6 months, but you have up to 12 months to finish. Cost for this course and exam is $350 and $250 for the test only. To maintain this certification, you must complete 10 CE credits each year.

Certified Travel Counsellor (CTC)

You must have 5 years experience in the industry and a CTA designation. There are 10 courses to complete, including a 3,000 word “white paper” assignment (in which a complex issue is explained concisely in a report). You must finish in 12 months, but may finish in 9 months. Cost is $550 for the course and exam or $320 for the exam only. To maintain this certification, you must complete 10 CE credits each year.

Certified Travel Industry Executive (CTIE)

This designation is only for non-consumer sales roles. You must have 5 years experience. The course consists of 100 videos, each 10 to 15 minutes in length. You must also complete a 2,000 to 3,000 word “white paper.” It takes 18 months to complete the course. Cost is $550 for the course and exam or $320 for just the test. To maintain your certification, you must commit to the annual Travel Institute membership and take 10 CE credits each year.

What is the growth potential for a travel agency?

Most small travel agencies are started as home-based businesses. Larger agencies adopt a traditional office model. Agencies can be run as a single-owner business or as a multiple-employee organization.

TRUiC's YouTube Channel

For fun informative videos about starting a business visit the TRUiC YouTube Channel or subscribe to view later.

Take the Next Step

Find a business mentor.

One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.

Having a support network in place to turn to during tough times is a major factor of success for new business owners.

Learn from other business owners

Want to learn more about starting a business from entrepreneurs themselves? Visit Startup Savant’s startup founder series to gain entrepreneurial insights, lessons, and advice from founders themselves.

Resources to Help Women in Business

There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:

If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.

How and when to build a team

A travel agency can be built with a single owner. However, time is the limiting factor. Because this business carries a low overhead, your need for employees is limited by your time in the business. When it’s time to expand, most agency owners hire another agent or support staff so they can delegate responsibilities.

If you start with a host agency and want to move away from it, then you would expand by hiring administrative personnel to handle the regulatory and back office functions.

Useful Links

Industry opportunities.

• American Society of Travel Agents
• Franchise opportunity

Real World Examples

• Independent travel agency
• Large travel agency

Further Reading

• Courses and books on how to become a travel agent
• Description of different types of travel agents
• Advice on being a travel agent

Additional Sources

• Travel Institute
• Host Agency Reviews - How Much Do Travel Agents Make? A Travel Agent Salary
• Host Agency Reviews - Do You Need a Travel Agent License?

Have a Question? Leave a Comment!

BUSINESS STRATEGIES

How to start a travel business

• Rachel Bistricer

Get started by: Creating a website →  | Getting a domain →

If you're passionate about providing exceptional travel experiences and managing a range of services, starting a travel business could be an exciting venture for you. This guide will walk you through the steps of initiating and operating a successful travel business, including the advantages and challenges involved in starting a business , how to go about creating a business website  and how to generate revenue in the travel industry.

What is a travel business?

A travel business is a service-oriented business  that offers a variety of travel-related accommodations, amenities and services to clients. Travel businesses typically provide services such as:

Trip planning and reservations

Transportation services, including flights, car rentals and transfers

Accommodations, such as hotels, resorts and vacation rentals

Tour packages and guided experiences

Travel insurance and assistance services

Why start a travel business?

The travel industry outlook shows healthy growth ahead, with projections estimating it will see a compound annual growth rate of 3.47% globally through 2028 . This points to promising opportunities if you're considering launching a travel business. With travelers spending billions annually on accommodations, transportation, and related services, the travel sector drives substantial revenue. And as people increasingly seek personalized, one-of-a-kind travel experiences tailored to their preferences, demand is rising for travel companies that can deliver on this. By understanding what today's travelers are looking for and offering customized services that help create meaningful trips and memories, you can position a new travel business for success amid the industry's continued expansion. Tracking trends and honing in on underserved niches can help you capitalize on the sector's upward trajectory.

How to start a travel business in 7 steps

Decide on a travel business niche

Create a business plan

Select a business structure

Obtain business financing or capital

Set up accounting and bookkeeping services

Source specific travel equipment

Register your travel business

01. Decide on a travel business niche

By focusing on a specific market segment, such as adventure travel, family-oriented vacations, luxury travel, wellness retreats or sustainable tourism, you can craft tailored offerings that cater to the unique preferences of travelers within that niche. Specializing allows you to differentiate your services, position yourself as an expert in the chosen area and effectively target people seeking those particular travel experiences.

02. Create a business plan

Develop a comprehensive business plan  that covers key aspects of your business planning 

including identifying your target market, summarizing your executive strategy, implementing a marketing strategy  and projecting your financials. This plan serves as a roadmap for your business and aids in conveying your vision to potential investors when seeking funding. It should also include other important business information such as the  type of business  you plan to start and your choice of a business name . 

Here’s a travel business plan template to get you started:

Travel business plan template

Executive Summary

Business Name:  [Your Travel Business Name]

Business Structure:  [Sole Proprietorship/Partnership/LLC/Corporation]

Location:  [City, State]

Founding Date:  [Month, Year]

Founders/Owners:  [Names]

Mission Statement:  [Concise statement of the business’s purpose]

Business Description

Overview:  Briefly describe your travel business, including key features, services and amenities.

Unique Selling Proposition (USP):  Clearly define what sets your travel business apart from competitors.

Target Market:  Identify your primary customer demographic and market segment.

Services and Amenities

List and describe the travel services and amenities your business will offer.

Include trip planning, transportation, accommodations, tour packages, etc.

Market Analysis

Industry Overview:  Provide an overview of the travel industry, including trends and growth projections.

Competitor Analysis:  Identify key competitors and analyze their strengths and weaknesses.

Target Audience:  Define your target customer profile and their preferences.

Marketing and Sales Strategy

Marketing Plan:  Outline your strategies for promoting the travel business, including online and offline channels.

Pricing Strategy:  Detail your pricing structure and any promotional pricing.

Sales Tactics:  Describe how you will attract clients and increase bookings.

Operational Plan

Location and Facilities:  Describe the physical location and facilities of your travel business.

Suppliers:  List and describe key suppliers for travel-related services.

Staffing:  Outline your staffing plan, including roles and responsibilities.

Financial Plan

Startup Costs:  Detail initial investment requirements and startup expenses.

Revenue Projections:  Provide realistic revenue projections for the first 3-5 years.

Operating Costs:  Outline ongoing operating expenses, including marketing, staff salaries and technology.

Funding Proposal

Purpose of Funding:  Clearly state how the funds will be utilized.

Amount Needed:  Specify the amount of funding required.

Repayment Plan:  Outline the proposed repayment plan for loans or investments.

Risk Analysis

Identify potential risks and challenges that may impact the success of your travel business.

Develop strategies to mitigate and manage these risks.

Include any additional documents or information relevant to your business plan.

Examples:  Market research data, resumes of key team members, mock-ups of marketing materials.

Summarize the key points of your business plan and highlight the potential success of your travel business.

Conclude with a call to action or next steps.

Note: This template serves as a general guide. Adjust and expand sections based on your specific business model and goals.

03. Select a business structure

When starting your travel business, consider the business entity or structure that makes the most aligns with your business goals. Common options like sole proprietorship , partnership , limited liability company (LLC ) or a corporation  each have their own pros and cons. 

Learn more: How to start an LLC

04. Obtain business financing or capital

Starting a travel business involves substantial initial costs. You’ll need to secure considerable financing through methods like bank loans, grants, or investments from stakeholders to launch and sustain your business.

Costs that you’ll need to factor in when securing financing for your business include:

Making a website  and its maintenance

Marketing and advertising campaigns

Trip planning software and tools

Reservation systems and travel management software

Staff recruitment and training

Initial salaries and benefits for employees

Transportation services (e.g., vehicle fleet or partnerships with transportation providers)

Technology infrastructure (computers, servers, etc)

Licensing and permits for operating a travel business

Insurance coverage for travel-related risks

Office space and utilities

Professional services (legal, accounting, etc)

05. Set up accounting and bookkeeping systems

Establish robust accounting and bookkeeping systems from the outset to track income, expenses and ensure financial viability. This includes managing corporate tax obligations if applicable.

06. Source specific travel equipment

Acquire the necessary equipment for your travel business, ranging from technology infrastructure to reservation systems and transportation vehicles. Some more specific examples of this include:

Reservation management software

Transportation vehicles (if providing transportation services)

Communication systems (phones, email, etc.)

Office furniture and supplies

Technology infrastructure (computers, servers, etc.)

07. Register your travel business

Register your travel business in compliance with local regulations, obtain the required licenses and secure appropriate insurance coverage.

Learn more: How to register a business , How to get a business license

Tips for managing your travel business for profitability:

Once you’ve got your travel business off the ground, you’ll need to understand how to properly run and manage it in order to make sure it’s profitable. Here are some general tips on how to achieve that: 

Research your industry

Gain a deep understanding of the travel industry, including market competition, target demographics and financial requirements. If you lack experience in the travel industry, consider working for an established travel agency or volunteering at a local tourism office to acquire valuable insights and experience.

Develop a marketing strategy 

Craft a well-defined marketing strategy from the beginning to proactively promote your travel business. Having a user-friendly and informative travel website is essential for attracting clients and showcasing your services. You might also consider starting a travel blog - check out these travel blog names for inspiration.

Invest in customer service for your travel business

Exceptional customer service is crucial for success in the travel industry. Ensure a positive experience for clients from trip planning to their return home. Address customer inquiries promptly and professionally. To ensure your customers have a memorable trip, make yourself a reliable travel business by going beyond just booking flights and hotels. Offer assistance with every aspect of their journey, from navigating lost luggage to providing travel insurance advice. Be the dependable support they need while traveling, like having a 24/7 concierge service at their disposal.

Build partnerships for business operations

To enhance the growth of your travel business, consider establishing key partnerships with airlines, hotels, tour operators and industry stakeholders. These collaborations open doors to exclusive deals, expanding your service offerings for clients. Benefit from preferential rates, premium accommodations and tailored travel packages, enhancing the value you provide. Attend  networking and industry events to connect with seasoned professionals and gain valuable insights. By fostering these partnerships and staying up to date with industry trends, you can position your travel business as an authoritative and trustworthy source for people looking to travel.

Travel businesses to inspire (all built on Wix)

The lucky traveler.

Travel expert specializing in planning All-inclusive Vacations, Comprehensive Trip Planning, Points and Miles Consultation and Destination Weddings.

A full service travel agency with experience in planning "bucket list" vacations and navigating the travel industry.

Worldwide Fun4All travel

Travel agent focusing on planning tailoring trips to clients needs and interests.

Benefits of starting a travel business:

Operating a travel business allows you to be your own boss, set your own hours and make independent decisions. The demand for travel services is consistently high, particularly in areas with a substantial tourist presence. For business owners who enjoy creating memorable experiences for clients, a travel business can be rewarding on many levels.

Challenges of running a travel business:

Running a travel business requires diverse skills in areas such as trip planning, customer service and operational management. Coordinating travel arrangements, managing client expectations and ensuring timely service delivery can be challenging. Utilizing online booking systems and scheduling software  is crucial for managing these aspects effectively. Additionally, the travel industry is competitive, requiring a unique value proposition and effective marketing to stand out.

How profitable is a travel business?

The profitability of a travel business depends on factors such as location, market demand, competition, pricing strategies and operational efficiency. Providing unique and personalized travel experiences can contribute to higher profitability. Streamlining business processes, utilizing technology and building strong client relationships are key factors in achieving success in the travel industry.

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Your Complete Guide On How To Start A Travel Agency

There is a really good chance that this post contains affiliate links. If you click through and make a purchase, I may receive a small commission (for which I am deeply grateful) at no additional cost to you.

Do you love to travel ? Are you always planning your next vacation? If so, then you may be interested in starting your own travel agency business. It’s a great way to share your passion for travel with others and make some money while you’re at it! 

This blog post will walk you through the steps necessary to start a successful travel agency from home. So whether you’re just getting started or are looking for some additional tips, read on for everything you need to know!

What is a travel agency?

A travel agency is a business that specializes in arranging travel and tourism-related services for its clients. This can include booking airfare, hotels, car rentals, and other tourist activities. 

Travel agencies typically have agreements with tour operators, airlines, and other service providers to get the best rates for their clients. They also often have access to exclusive deals and promotions that the average person wouldn’t be able to get on their own.

How To Start A Travel Agency

Do your research.

The first step in starting a travel agency is to do your research. This includes studying the industry, learning about the competition, and figuring out what kind of travel agency you want to create.

For example, are you interested in offering all types of vacations or focusing on a specific niche? Do you want to be a traditional brick-and-mortar business or set up shop online? These are all important questions to answer before moving on.

Write A Business Plan

Once you’ve got a good idea of what you want your travel agency to be, it’s time to create a business plan . Your business plan should include detailed information about your company, including its mission statement, goals, and target market. It should also outline how you plan to make money and how you will attract customers. If you’re not sure how to write a business plan, plenty of resources online can help.

Register Your Travel Agency

The next step is to get your travel agency up and running. This includes registering your business with the state, obtaining any necessary licenses or permits, and setting up shop. To promote your business, you’ll also need to create a website and marketing materials, such as a brochure or flyer.

Starting your own travel agency business from home is a great way to share your love of travel with others while also earning an income. There are a lot of things to consider when starting out, though, so here’s a look at some of the basics!

Basic Steps To Starting A Travel Agency Business From Home:

Deciding what services to offer: .

This is probably the most important step when starting any type of business. What services does your travel agency offer? Do you specialize in certain types of travel? For example, are you a specialist in group travel, or do you only book domestic flights? Decide what services you want to offer and focus on becoming the best at those services.

Researching the competition: 

It’s important to know who your competition is before starting a business. What are they doing well? What could you do better? How can you set yourself apart from the competition? This research will help you figure out your niche in the travel industry.

Registering your business: 

To operate a legal travel agency business, you’ll need to register with your local government. This process can vary depending on where you live, so be sure to consult with an accountant or lawyer about the specific requirements in your area.

Getting insurance: 

Like any business, it’s important to have insurance for your travel agency. This will protect you in the event of accidents or other unforeseen events.

Marketing your business: 

Once your business is up and running, it’s time to start marketing it! There are a number of ways to do this, from online advertising to print ads in local newspapers or magazines. Figure out what works best for you and go from there.

Setting up your office space and equipment: 

To run a successful travel agency, you’ll need a dedicated office space with all the necessary equipment. This may include computers, printers, fax machines, etc. Be sure to factor this into your budget when starting out.

Hiring employees (if necessary): 

Depending on the size of your travel agency, you may need to hire employees. This can include customer service reps, accountants, and marketing specialists. Be sure to research what it takes to hire good employees and set up a solid HR protocol.

Training your employees: 

Once you’ve hired your staff, it’s important to train them on the basics of the travel industry. This includes how to book trips, deal with customer inquiries, etc. Be sure to provide thorough training to equip your employees with the knowledge they need to run your business successfully.

Now that you have gone over the basics of starting a travel agency business from home;

Here’s a look at some of the potential challenges you may Face:

Competition: .

As mentioned earlier, it’s important to research your competition before starting a business. The travel industry is highly competitive, so you’ll need to find ways to set yourself apart from the pack.

Managing employees: 

Hiring and managing employees can be a challenge for any business owner. Make sure you have a solid HR policy in place and that you’re prepared to deal with any employee issues that may arise.

Financing: 

Starting a business can be expensive, so it’s important to have a solid financial plan in place. This includes setting aside money for start-up costs and monthly expenses like rent, utilities, and marketing.

When starting a home-based travel agency, it’s important to outsource the necessary services to maintain a professional appearance and operation. By outsourcing certain functions, you can focus on the core of your business and leave the details to the experts. 

Here Are Some Services That You May Want To Consider Outsourcing:

A successful travel agency needs an effective marketing strategy. However, marketing is time-consuming and can be expensive. Outsourcing this function allows you to focus on other aspects of your business while still reaching your target market. 

For example, a marketing company can develop a comprehensive plan that includes online and offline marketing strategies specific to your niche market. They can also help with branding and creating a website that will rank high in search engine results.

One of the most important aspects of any travel agency is arranging flights and hotels for their customers. By outsourcing this work to a professional, home-based agencies can ensure that their clients will have everything taken care of. This also leaves more time for the agents to focus on other customer service areas.

When it comes to booking travel, customers want the convenience of being able to book online. This is a service that you can outsource to a third party who will manage all the bookings for your agency. They can also create an online booking system that is easy for customers to use.

Script-based automation:

A great way to provide excellent customer service without having to hire additional staff is to use a script-based automation tool. This tool allows you to create scripts that will automatically answer common customer queries. 

You can also use it to process bookings and track reservations. Testrigor is a great solution for agencies that want to provide high-quality customer service but don’t have the resources to do so manually.

Creating custom travel packages

Another important part of being a travel agent is creating custom packages for each customer. This can be time-consuming and difficult to do from home. By outsourcing this work to a professional, home-based agencies can ensure that their customers will get the best travel deals possible.

Administrative Support

Running a business requires a lot of administrative tasks such as bookkeeping, answering customer inquiries, and preparing invoices. An administrative assistant can take care of these tasks for you, allowing you to focus on your core business activities.

Technology Support

To run a successful travel agency, you need quality technology tools such as a reservation system and accounting software. However, these tools can be expensive and require a lot of maintenance. You can rest assured that your systems are always up-to-date and running smoothly by outsourcing your technology needs to a qualified provider.

Customer Service

Good customer service is essential for any business. However, providing quality customer service can be time-consuming and difficult. Outsourcing this function to a company that specializes in customer service can ensure that your customers are always taken care of. They can answer inquiries, process bookings, and resolve any issues that may arise.

In Conclusion

Outsourcing is a great way for home-based travel agencies to focus on the core aspects of their business while leaving the rest to professionals by outsourcing bookings, custom packages, and customer support. 

Automated scripts can also help with common issues that customers may encounter, allowing agents more time to focus on sales and marketing efforts. There are many other things that a home-based travel agency can outsource to run their business more efficiently. Choosing the right professionals can ensure that their customers will have a great experience when dealing with their agency.

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How to Start a Travel Agency

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How To Start a Travel Agency

How to start a travel agency faqs, helpful slideshows, videos & images.

• Additional Resources in the Travel Agency Industry

Starting a travel agency can be very profitable. With proper planning, execution and hard work, you can enjoy great success. Below you will learn the keys to launching a successful travel agency.

Importantly the most important step in starting a travel agency is to complete your business plan. To help you out, you should download Growthink’s Ultimate Business Plan Template here.

Download our Ultimate Business Plan Template here

17 Steps To Start a Travel Agency

• Decide Which Type of Travel Agency To Open
• Choose the Name for Your Travel Agency
• Develop Your Travel Agency Business Plan
• Choose the Legal Structure for Your Travel Agency
• Secure Startup Funding for Your Travel Agency (If Needed)
• Secure a Location for Your Business
• Register Your Travel Agency With the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Insurance for Your Travel Agency
• Buy or Lease the Right Travel Agency Business Equipment
• Develop Your Travel Agency Marketing Materials
• Purchase and Setup the Software Needed to Run Your Travel Agency
• Start Building Partnerships
• Hire Employees (If Needed)
• Open for Business

1. Decide Which Type of Travel Agency You Want To Open

There are a few decisions to make when choosing which type of travel agency you want to open. You might want to consider starting a specialty travel agency focused on business travel or another specific niche market, or a more general agency that works with all types of travelers.

You will also need to decide if you want to operate an independent agency or join a host agency or franchise.

An independent agency will give you the most freedom and flexibility when it comes to running your business and is a popular choice for travel agents who work from home but can be more challenging to get off the ground.

A host agency is a business that works with independent agents and can provide them with resources, partnerships, and clients. You will often have to pay a fee to join a host agency.

Finally, joining a franchise will give you access to more training and support, but will also require fees to join and may limit how you run your business. If you choose to go the franchise route, be sure to check with your desired franchise to determine what they provide before completing steps like picking a name or building a website.

Deciding whether or not to join a host agency or franchise really depends on how much training and support you need, and whether or not you feel that the fees that a host agency or franchise will charge are worth it to you.

2. Choose the Name for Your Travel Agency

The next step to starting a travel agency is to choose your business’ name.

This is a very important choice since your company name is your brand and will last for the lifetime of your business. Ideally, you choose a name that is meaningful and memorable. Here are some tips for choosing a name for your travel agency:

• Make sure the name is available. Check your desired name against trademark databases and your state’s list of registered business names to see if it’s available. Also check to see if a suitable domain name is available.
• Keep it simple. The best names are usually ones that are easy to remember, pronounce and spell.
• Think about marketing. Come up with a name that reflects the desired brand and/or focus of your software company.

3. Develop Your Travel Agency Business Plan

One of the most important steps in starting a travel agency is to develop your travel agency business plan . The process of creating your plan ensures that you fully understand your market and your business strategy. The plan also provides you with a roadmap to follow and if needed, to present to funding sources to raise capital for your business.

The following are the key elements of a business plan :

• Executive Summary – this section should summarize your entire business plan so readers can quickly understand the key details of your travel agency.
• Company Overview – this section tells the reader about the history of your travel agency and what type of travel agency you operate. For example, are you a business travel agency or a special interest travel agency?
• Industry Analysis – here you will document key information about the travel industry. Conduct market research and document how big the industry is and what trends are affecting it.
• Customer Analysis – in this section, you will document who your ideal or target customers are and their demographics. For example, are they in a specific income bracket?
• Competitive Analysis – here you will document the key direct and indirect competitors you will face and how you will build competitive advantage.
• Marketing Plan – your marketing plan should address the 4Ps: Product, Price, Promotions and Place.
• Product : Determine and document what products/services you will offer
• Prices : Document the prices of your products/services
• Place : Where will your business be located and how will that location help you increase sales?
• Promotions : What promotional methods will you use to attract customers to your travel agency? For example, you might decide to use pay-per-click advertising, public relations, search engine optimization and/or social media marketing.
• Operations Plan – here you will determine the key processes you will need to run your business operations. You will also determine your staffing needs. Finally, in this section of your plan, you will create a projected growth timeline showing the milestones you hope to achieve in the coming years.
• Management Team – this section details the background of your company’s management team.
• Financial Plan – finally, the financial plan answers questions including the following:
• What are your travel agency startup costs?
• How will your travel agency make money?
• What are your projected sales and expenses for the next five years?
• Do you need to raise funding to launch your business?

Finish Your Business Plan Today!

4. choose the legal structure for your travel agency.

Next you need to choose a legal business structure for your travel agency and register it and your business name with the Secretary of State in each state where you operate your business.

Below are the five most common legal structures:

A sole proprietorship is a business entity in which the owner of the travel agency and the business are the same legal person. The owner of a sole proprietorship is responsible for all debts and obligations of the business. There are no formalities required to establish a sole proprietorship, and it is easy to set up and operate. The main advantage of a sole proprietorship is that it is simple and inexpensive to establish. The main disadvantage is that the owner is liable for all debts and obligations of the business.

2) Partnerships

A partnership is a legal structure that is popular among small businesses. It is an agreement between two or more people who want to start a travel agency together. The partners share in the profits and losses of the business. The advantages of a partnership are that it is easy to set up, and the partners share in the profits and losses of the business. The disadvantages of a partnership are that the partners are jointly liable for the debts of the business, and disagreements between partners can be difficult to resolve.

3) Limited Liability Company (LLC)

A limited liability company, or LLC, is a type of business entity that provides limited liability to its owners. This means that the owners of an LLC are not personally responsible for the debts and liabilities of the business. The advantages of an LLC for a travel agency include flexibility in management, pass-through taxation (avoids double taxation as explained below), and limited personal liability. The disadvantages of an LLC include lack of availability in some states and self-employment taxes.

4) C Corporation

A C Corporation is a business entity that is separate from its owners. It has its own tax ID and can have shareholders. The main advantage of a C Corporation for a travel agency is that it offers limited liability to its owners. This means that the owners are not personally responsible for the debts and liabilities of the business. The disadvantage is that C Corporations are subject to double taxation. This means that the corporation pays taxes on its profits, and the shareholders also pay taxes on their dividends.

5) S Corporation

An S Corporation is a type of corporation that provides its owners with limited liability protection and allows them to pass their business income through to their personal income tax returns, thus avoiding double taxation. There are several limitations on S Corporations including the number of shareholders they can have among others. Once you register your travel agency, your state will send you your official “Articles of Incorporation.” You will need this among other documentation when establishing your banking account (see below). We recommend that you consult an attorney in determining which legal structure is best suited for your company.

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5. Secure Startup Funding for Your Travel Agency (If Needed)

In developing your travel agency plan, you might have determined that you need to raise funding to launch your business.

If so, the main sources of funding for a travel agency to consider are personal savings, family and friends, credit card financing, bank loans, crowdfunding and angel investors. Angel investors are individuals who provide capital to early-stage businesses. Angel investors typically will invest in a travel agency that they believe has high potential for growth.

6. Secure a Location for Your Business

Operating a travel agency gives you some flexibility in where you do business. If you plan to work from your own home, then you will not need to find an office space to rent or buy. Even if you hire other team members, you can still all work remotely if you choose. You can meet with clients virtually from home, or have them come into an office location.

If you do want to find another physical location for your travel agency, consider:

• Driving around to find the right areas while looking for “for lease” signs
• Contacting a commercial real estate agent
• Doing commercial real estate searches online
• Telling others about your needs and seeing if someone in your network has a connection that can help you find the right space

7. Register Your Travel Agency With the IRS

Next, you need to register your business with the Internal Revenue Service (IRS) which will result in the IRS issuing you an Employer Identification Number (EIN).

Most banks will require you to have an EIN in order to open up an account. In addition, in order to hire employees, you will need an EIN since that is how the IRS tracks your payroll tax payments.

Note that if you are a sole proprietor without employees, you generally do not need to get an EIN. Rather, you would use your social security number (instead of your EIN) as your taxpayer identification number.

If you’d like to quickly and easily complete your business plan, download Growthink’s Ultimate Business Plan Template and complete your plan and financial model in hours.

8. Open a Business Bank Account

It is important to establish a business bank account in your travel agency’s name. This process is fairly simple and involves the following steps:

• Identify and contact the bank you want to use
• Gather and present the required documents (generally include your company’s Articles of Incorporation, driver’s license or passport, and proof of address)
• Complete the bank’s application form and provide all relevant information
• Meet with a banker to discuss your business needs and establish a relationship with them

9. Get a Business Credit Card

You should get a business credit card for your travel agency to help you separate personal and business expenses.

You can either apply for a business credit card through your bank or apply for one through a credit card company.

When you’re applying for a business credit card, you’ll need to provide some information about your business. This includes the name of your business, the address of your business, and the type of business you’re running. You’ll also need to provide some information about yourself, including your name, Social Security number, and date of birth.

Once you’ve been approved for a business credit card, you’ll be able to use it to make purchases for your business. You can also use it to build your credit history which could be very important in securing loans and getting credit lines for your business in the future.

10. Get the Required Business Licenses and Permits

Every state, county and city has different business license and permit requirements.

Nearly all states, counties and/or cities have license requirements including:

• General Business License – This license is required for most any business operating in the United States.
• Seller of Travel License – A Seller of Travel License allows you to legally sell travel services such as airline tickets, hotel rooms, and car rentals.
• Permits To Sell Insurance – Some states may require travel agents to obtain a special license to sell travel insurance.

Licenses and permits required for travel agencies vary from state to state, so be sure to check your state and local guidelines to determine exactly what you need.

11. Get Business Insurance for Your Travel Agency

Business insurance is important for any business, and a travel agency is no exception. There are several types of insurance that a travel agency should consider, including:

• General Liability Insurance – This insurance protects your agency from lawsuits alleging bodily injury, property damage, personal injury, and advertising injury that occur on your premises or because of your business operations.
• Professional Liability Insurance – This insurance protects your agency from claims arising out of errors or omissions in the performance of professional services.
• Product Liability Insurance – This insurance protects your agency from claims arising out of injuries or damages that occur because of a defect in a product that your agency sells or rents.
• Errors and Omissions – This insurance protects your agency from claims alleging that you have failed to provide the services that you promised to provide, or that you have provided those services in a substandard way.

Find an insurance agent, tell them about your business and its needs, and they will recommend policies that fit those needs.

12. Buy or Lease the Right Travel Agency Business Equipment

Most travel agencies don’t need much equipment to start. All you really need is a computer, business phone line, printer, and fax machine. If you are operating from a location outside of your home with additional employees, you might also need to provide basic office equipment and reception furniture.

13. Develop Your Travel Agency Marketing Materials

Marketing materials will be required to attract and retain customers to your travel agency.

The key marketing materials you will need are as follows:

• Logo – Spend some time developing a good logo for your travel agency. Your logo will be printed on company stationery, business cards, marketing materials and so forth. The right logo can increase customer trust and awareness of your brand.
• Website – Likewise, a professional travel agency website provides potential customers with information about the products and/or services you offer, your company’s history, and contact information. Importantly, remember that the look and feel of your website will affect how customers in your target market perceive you. Make sure to optimize your website so that you rank well on search engines.
• Social Media Accounts – Establish social media accounts in your company’s name. Accounts on Facebook, Twitter, LinkedIn and/or other social media networks will help customers and others find and interact with your travel agency. Social media is also a great place to run promotions and generate new business.

14. Purchase and Setup the Software Needed to Run Your Travel Agency

Travel agencies require software that can do a few things.

First, you will need software for booking and making reservations. Popular options include Rezdy and TravelPerk.

Next, you will want accounting software to handle invoicing, commissions, and any bookkeeping tasks. You can use more general software like Quickbooks or FreshBooks.

Having software like TripActions or TripCreator that can quickly create itineraries for your clients is also very helpful.

Lastly, a good customer relationship management tool will help you stay in touch with existing customers and bring them back in for more services. Many businesses use options like HubSpot and ActiveCampaign.

Be sure to check the features of any software that interests you as some might do more than one of these things. Research the software that best suits your needs, purchase it, and set it up.

15. Start Building Partnerships

Before you start your own agency, it’s important to have industry relationships in place. You’ll need a travel wholesaler, as well as preferred supplier agreements with airlines, hotels, car rental companies, and tour operators. These partnerships will give you access to the best rates and products so that you can offer your clients top-notch service.

You can start building relationships by attending trade shows and other networking events, joining online communities for travel industry professionals, and simply reaching out. If you decide to join a host agency or franchise, you may already have access to some partnerships.

Another great way to find support is to join one of the popular travel associations. Groups like the American Society of Travel Advisors require some fees to join but give you access to training and other helpful resources.

16. Hire Employees (If Needed)

If you plan to run a small travel agency by yourself, then you will not need to hire additional travel agents or other team members. A larger travel agency will need a few different types of employees. You might need a sales team to book trips and sell products, customer service representatives to assist clients, and marketing professionals to promote your company and generate new leads.

If you do need additional employees, consider posting job openings in the local community or online. Make sure that your candidates’ backgrounds are a good fit for the job descriptions you create and that the individual is a good match for the brand you want to build.

17. Open for Business

You are now ready to open your own travel agency. If you followed the steps above, you should be in a great position to build a successful business and know everything you need about how to start your own travel agency. Below are answers to frequently asked questions that might further help you.

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Where Can I Download a Travel Agent Business Plan PDF?

You can download our travel agent business plan PDF template here. This is a business plan template you can use in PDF format.

How Can I Start a Travel Agency With No Experience?

One of the first things you should do is research the travel industry and important travel agency trends. You can also speak with travel agents and travel agency owners to get their insights and helpful tips. In addition to degrees from 2 and 4-year colleges that focus on travel and tourism, there are also a number of shorter online training programs for getting a travel agent certificate.

What Type of Travel Agency Is Most Profitable?

There is no definitive answer as to which type of travel agency is most profitable. However, many experts agree that the most successful travel agencies are those that can offer a comprehensive range of services. This may include everything from booking airfare and hotel reservations to arranging car rentals and guided tours. By being able to provide a one-stop shopping experience for their clients, travel agents can increase the likelihood of completing a sale and improving customer satisfaction.

How Much Does It Cost To Start a Travel Agency?

In order to start a travel agency, you will need to invest money in licenses, marketing, and travel software. The cost of starting a travel agency can range from a few thousand dollars to over $100,000, so it's important to do your research before getting started.

One of the biggest expenses you'll incur when starting a travel agency is the cost of purchasing or licensing travel software. This software is essential for managing your reservations and bookings, so it's important to choose a reputable provider. Other costs you'll need to consider include website development and design, marketing materials, and employee salaries (if you're not doing all the work yourself).

Before starting a travel agency, be sure to do your research and crunch the numbers to make sure it's the right decision for you. There are many things to consider before making such a large investment.

Is It Hard To Start a Travel Agency?

Generally speaking, starting a travel agency is not difficult. Your biggest early challenges when starting your own travel business will most likely be developing industry relationships, generating clients, and funding your launch. Following the steps we have outlined will help you get started successfully.

What Are the Ongoing Expenses for a Travel Agency?

There are a few key things to keep in mind when it comes to the expenses of running a travel agency. The three main areas of ongoing costs will be staffing, marketing, and operations. Staffing costs can vary greatly depending on the size of your agency and the number of travel agents and other employees you have. Marketing costs can range from online advertising and website development to tradeshows and print advertising. And finally, operational costs can include everything from licensing and insurance fees to office supplies and rent. By understanding these three areas of expense, you can create a budget for your travel agency that is realistic and sustainable.

S ome key costs to keep in mind include:

• Wages – 35.4% of the industry’s revenue is allocated to wages.
• Depreciation – Only 0.4% of the industry revenue is accounted for depreciation.
• Other – Advertising and marketing costs account for 4.3% of revenue.

How Does a Travel Agency Make Money?

There are numerous ways for a travel agency to make money. The most common way is through commissions on airline tickets, hotel rooms, and other travel-related services. Travel agencies can also charge a fee for their services. Some agencies may also sell souvenirs or other travel-related products.

Is Owning a Travel Agency Profitable?

Owning a travel agency can certainly be profitable, but how much profit your business earns will depend on a variety of factors, including the size and location of the business, the type of services offered, and the level of competition in the area.

How Much Do Travel Agency Operators Make?

A travel agency manager's salary ranges from $30,000 to $78,000 per year.

Why Do Travel Agencies Fail?

A travel agency can fail for a number of reasons. One reason is that they may not be able to generate enough business. This could be due to a poor marketing strategy, or because the agency is not offering appealing products or services. Another reason a travel agency might fail is if they are not well managed. This could lead to financial instability and a loss of customers. Finally, an agency might fail if it is not properly organized and lacks clear goals. Without a strong plan in place, it can be difficult to succeed in the travel industry.

How Big Is the Travel Agency Industry?

There are 11,108 travel agencies in the U.S. and they generated $34.0 billion in revenue last year. This represents an annual growth rate of 2.5% over the last five years.

What Are the Key Segments of the Travel Agency Industry?

Travel agencies are segmented by their bookings. The main segments of the industry are tour and packaged travel bookings, followed by cruise bookings and International and domestic airline bookings. Accommodation bookings and other bookings account for the remainder of the industry’s revenue.

What External Factors Affect the Travel Agency Industry?

A number of factors affect the performance of the travel agency industry. These drivers include:

• International Trips By US Residents - A lot of international trips by US residents are made through travel agencies. This year, international trips are expected to increase as well as the travel agency industry.
• Consumer Spending - Travel spending is counted as a consumer expense. An increase in the consumer’s tendency to spend money affects the industry positively.
• Domestic Trips By US Residents - Domestic trips are also booked through travel agencies. The travel agency industry is affected by domestic trips in the US in the same way as international trips.
• Percentage of Services Conducted Online - Availability of online travel arrangements reduces the number of consumers booking their travels in actual offices of travel agencies. This year, there’s been an increase in services conducted online.
• Consumer Confidence Index - High consumer confidence index also means that consumers have a higher tendency to spend on travel.

What Are the Key Customer Segments in the Travel Agency Industry?

Leisure travelers are, by far, the top key customer segment for the travel agency industry. Corporate travelers make up the next largest segment of the market and other travelers account for just 4%.

Social Media Tip for Travel Agents

Tips for Finding a Good Travel Agent

Travel Tips & Jobs: How Do Travel Agencies Work?

Top 5 Trends Shaping the Travel Industry Today

21 Tips for Marketing Your Travel Company Online

For additional information on the travel agency market, consider these industry resources:

• US Census Bureau: www.census.gov
• Office of Travel & Tourism Industries: www.tinet.ita.doc.gov
• Travel Pulse: www.travelpulse.com
• American Society of Travel Agents: www.asta.org
• Travel Agency Mavericks

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How to Become a Travel Agent—Because, Believe It or Not, the Industry Is on the Rise

By Scott Bay

There’s a reason “how to become a travel agent” has been a continuously trending search phrase on Google—it is a career path that offers a flexible work environment and schedule, ample travel opportunities, and an immersion into a supportive world-wide industry. It's a surprise to some in 2023: Once the internet became widely available, it was largely believed that needing a travel agent was obsolete. However, even though the brick-and-mortar agencies with punny names in strip malls have vanished, the career is on-the-rise .

New software options are making it easier than ever for people to make money planning trips, either as a side hustle or as a full-time business. That’s why Cherikonda, India-based stay-at-home mother, Maya Kapoor-Miller, decided to enter the professional world as a travel agent this year, at 31. “I knew nothing about the travel industry prior to signing up,” says Kapoor-Miller, who decided to use San Francisco-based booking platform Dreamport to establish her online travel advisor business. “It is my first business in life, and the only one that you can start with no investment.”

But there's also a rise in demand. When people ventured back into the world after the pandemic, travel agents saw an overwhelming amount of business . And that momentum hasn’t stopped—when travel is complicated, like it was in 2020 and 2021, travelers turned to professional trip planners to create a seamless vacation. For better or worse, traveling has remained complicated and chaotic, with new rules being implemented (like Americans needing to pay a fee to visit Europe in 2024 ) and airline strikes and staffing issues. Offloading all of the nitty-gritty details to someone else is more appealing than ever.

For those entering the field, there's also the age-old motivator: a love of travel. 

Shelton Ellis, who is based in North Carolina, recently saw these opportunities and left behind more than 20 years in public relations and global advertising to turn his passion into a career. “I was born with a wanderlust that would wear Rick Steves out,” Ellis says. “I decided to take the leap and follow that lifelong yearning. Transitioning into this role was really about learning how to monetize what I'm passionate about.”

Whether you are looking for a new career path or a lucrative side-hustle—or simply curious about those taking the plunge—here’s how to become a travel agent, from the qualifications and education required, to anticipated earnings, according to those who have made the shift in the past year. 

What exactly does a travel agent do?

Travel agents, or travel advisors (the term is mostly interchangeable), manage everything that goes into a trip for their clients: the flights, car transfers, accommodations, restaurant reservations, and more—they even inspire the itinerary. The reason people turn to travel agents, aside from having a helping hand during any travel chaos , is also to tap into the travel agent’s first-hand knowledge of destinations, and their industry partnerships, which often lead to perks such as hotel upgrades, ideal airplane seats, and experiences that can’t be found on a search engine.

“You have to remember that as a travel agent, you will be a guide for people during their happiest moments—family reunions, weddings , baptisms, and once-in-a-lifetime experiences that people have dreamt of,” says Kapoor-Miller. “It has been one of the most rewarding aspects of being a travel agent. You navigate people, inform them, and help them choose.”

So, how do you become a travel agent?

There are many ways to become a travel agent, from joining an existing travel agency , to starting an independent business from the ground up. Others are opting for one of the buzziest start-ups in the travel industry, Fora . When it launched in 2021, the software company, which trains and provides search engine-optimized profile pages to advisors—at one point had a waitlist of over 30,000 people eager to begin a part-time gig. Travel photographer and Condé Nast Traveler contributor Amanda Villarosa is currently in the process of joining.

“I'm the person that friends and family come to for travel recommendations, tips and tricks, and general travel advice,” says Villarosa. “After discovering Fora and looking into it, I realized that it could be the perfect side-hustle, considering I'm already so involved in the industry.”

With additional flexibility, Villarosa was able to move from New York City to splitting her time between Denver and Los Angeles . She says that the sign-up was quite straightforward. “You're given a dedicated Fora email and have access to advising tools and fellow Fora advisors,” she says. “The training is in the form of Zoom meetings and videos, which you have the option to watch at your own pace. Once completed, you take a certification quiz and you're on your way to advising.”

The other ways in are slightly more involved. To begin an independent practice, you go about it like many other businesses. You will have to create an LLC, establish a business name, cultivate marketing materials, build a website, find clientele, and more.

Ellis found something in the middle, choosing to connect with an established travel agency. “Don't be afraid to reach out to an agency looking to take on new advisors and is willing to mentor," says Ellis. "I was fortunate to learn so much from Annie Chambers, the owner of Crafted Escapes , who has seven years in the business.” He now knows the ropes on everything from using itinerary-building software to destination-specific training, to the sales and marketing aspects of the trade.

Is there required education or qualifications?

Ellis says that there's no certification, per se, required to become a travel advisor, but there are countless training courses available like Departure Lounge ’s classes on navigating the industry through hotels and tour operators. He said it’s also important to stay on top of travel trends. Ellis recently completed travel agent training programs provided by premier cruise lines such as Virgin Voyages , Ritz-Carlton Yachts , and Cunard to help agents sell their products more accurately.

How much does a travel agent make?

What a travel agent earns depends on how many trips they successfully book for their clients. The entire model is commission-based, meaning agents earn a percentage of the total cost of the vacation they orchestrate. Many travel advisors choose to charge a flat-rate planning fee in addition to their commission, but balance is key—if you charge a high planning fee, it could lead to potential clients going elsewhere.

Jessica Puckett

Lee Marshall

Meaghan Kenny

Fora ’s website states that “some of our full-time, expert advisors earn well into the six figures (or beyond).” So a lucrative career may be on the horizon, for those who are able to build a robust client base and excellent industry connections.

How much you make can also depend on where you live around the world. “I am being paid in dollars,” says India-based Kapoor-Miller. “So the currency fluctuations of the local exchange rate are not something I am worried about.”

What are the key skills required to become a travel agent?

“Travel agents need a mix of customer service, communication, destination knowledge, organizational, and problem-solving skills,” says Kapoor-Miller. “But I would say that adaptability, flexibility, curiosity, and cultural sensitivity top them all—you have to put yourself in other's shoes, and understand the requirements, hopes, and expectations of your clients along with any worries and questions they may have.”

It’s vital to have a passion for traveling, even the aspects of the process that aren’t as exciting, such as learning about new airline routes, train schedule updates, and industry news. “It can be an information-heavy hustle, and I believe it's important to be excited about it as that energy definitely transfers to your clients and partners,” Villarosa says.

Should travel advisors choose a specialization?

Many travel advisors have found success through becoming an expert in a few types of travel and destinations. “It's important to become an authority and learn as much as you can through personal experiences and continuing education,” says Ellis. “As a proud member of the LGBTQIA+ community , an avid snow skier, and scuba diver, I know not only the popular destinations but others that are off the beaten path, equally safe and adventurous for all travelers.” This helps travel agents establish a competitive edge, and hopefully convince potential clients to choose them for their expertise.

What are the benefits of being a travel agent?

“Flexibility tops them all,” says Kapoor-Miller. “And the ability to start without industry knowledge. If you worry that you are too old for this job, the good news is that this is a job you can enter and enjoy at any age.”

Another great perk is the "Familiarization trip,” says Ellis. “Tourism boards and hotels invite agents to visit and familiarize themselves with a particular country and its properties. After all, any accomplished salesperson should learn everything they can about their products first-hand...even if they're in Bora Bora.” It's hard work, but someone's got to do it. 

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Here's how you start a profitable travel agency.

Embarking on the journey of starting a travel agency can be an exhilarating adventure for those with a love for exploration and a knack for planning unforgettable experiences.

Whether you're a seasoned travel professional aiming to establish your own brand or an enthusiastic globetrotter ready to transform your passion into a thriving business, launching a travel agency requires strategic foresight and commitment.

In this blog post, we'll navigate you through the crucial stages of opening a travel agency, from the early planning phase to the launch of your first curated journey.

How you should prepare to start a travel agency

Market research and concept, choose a concept.

Choosing a concept is one of the first steps in opening a travel agency because it will define the type of travel experiences you curate, the destinations you focus on, and the clientele you attract.

This decision will influence your branding, marketing strategies, partnerships, and the overall direction of your business. A well-defined concept can help your travel agency stand out in a crowded market and draw in travelers who are looking for specific types of experiences.

Think of your concept as the theme of the story your travel agency wants to tell. It's about deciding the narrative you want to weave through the trips and adventures you plan for your customers.

To assist you in choosing the right concept for your travel agency, we have summarized some of the most popular concepts in the table below.

Pick an audience

When launching a travel agency, it's crucial to tailor your services to the specific needs and preferences of your target audience.

For instance, if you're aiming to attract adventure-seeking millennials, you might focus on offering off-the-beaten-path travel experiences, eco-friendly accommodations, and social media-worthy destinations. You'd likely use online platforms and social media to engage with this tech-savvy group.

Conversely, if your ideal clients are retirees looking to explore the world at a more leisurely pace, your travel packages might include luxury cruises, guided tours, and cultural experiences with a high level of comfort and convenience. Your marketing efforts could be more traditional, perhaps through print media and community events.

Understanding your audience is essential because it shapes every aspect of your travel agency, from the travel packages you create to the marketing strategies you employ. It's similar to choosing a gift; you consider the recipient's interests and preferences to ensure they will appreciate it.

Moreover, a deep knowledge of your target market enables you to communicate with them more effectively. If you know who you're catering to, you can determine the best channels and messages to reach them. For example, targeting families might involve advertising in family-oriented publications or online forums.

In our business plan for a travel agency , we have identified various customer segments that could be pertinent to your venture.

To help you envision the potential clientele for your travel agency, we've compiled a summary of typical customer segments below.

Get familiar with the industry trends

As a travel agency, staying abreast of the latest trends in the travel industry is crucial for tailoring your offerings to the evolving preferences of travelers. By aligning your services with these trends, you can attract a broader clientele looking for experiences that resonate with current travel desires.

Trends in the travel industry can range from the types of destinations tourists are interested in, to the style of travel they prefer. For instance, there's a growing interest in sustainable and eco-friendly travel options, as well as personalized experiences that cater to individual interests.

Our business plan for a travel agency is updated biannually to include these new emerging trends, ensuring that you have the insights needed to create a thriving travel business.

For example, many travelers are now seeking immersive cultural experiences, preferring to live like a local rather than just visiting the typical tourist spots. There's also a rise in adventure tourism, where travelers are looking for active experiences like hiking, diving, or wildlife safaris.

Moreover, wellness tourism is on the rise, with travelers looking for trips that focus on their health and well-being, including spa retreats, yoga workshops, and fitness adventures.

With the digital age in full swing, offering virtual tours and augmented reality experiences can also set your agency apart, providing a taste of travel to those who can't physically go.

We have compiled a list of more trends in the table below.

However, there are also some declining trends.

Package tours with rigid itineraries are becoming less popular as travelers seek more flexibility and autonomy in their travel plans.

Additionally, destinations that are perceived as over-touristed or not environmentally conscious are seeing a decline in interest due to the growing awareness of sustainable travel.

Lastly, with the rise of digital and virtual experiences, traditional travel services that don't incorporate technology may find themselves less relevant in the current market.

Choosing the ideal location

Choosing the ideal location for your travel agency is a strategic decision that can significantly influence its success. This decision requires careful consideration of several key factors.

Understanding the local demographics is the first step. A travel agency should cater to the travel preferences and financial capabilities of the surrounding population. If the area has a high concentration of retirees, for example, you might focus on leisure and luxury cruises. In contrast, areas with young adventurers may require a focus on backpacking trips and adventure tourism.

Visibility and accessibility are crucial for a travel agency. A storefront in a high-traffic area, such as a shopping mall or a busy street with other retail businesses, can attract walk-in clients. Proximity to public transportation or main roads is also beneficial, as it makes your agency more accessible to clients who may be passing by.

While you want to avoid areas saturated with travel agencies, a certain level of competition indicates a demand for travel services. Being near complementary businesses, like bookstores or outdoor equipment shops, can also be advantageous as they attract a similar customer base.

Rent costs are a significant factor. Prime locations with high visibility often come with higher rents, so you should weigh the potential for increased client traffic against the overhead costs. A balance must be struck to ensure the rent is manageable based on your projected revenue.

Negotiating favorable lease terms can have a substantial impact on your travel agency's financial well-being. This could include securing a lease with renewal options, negotiating limits on rent increases, or obtaining a reduced rent period initially to offset startup costs.

Consider the growth potential of the neighborhood. Is the area developing in a way that could bring more clients to your agency? The possibility of expanding your premises in the future without relocating can be a significant advantage as your agency grows.

Market research and demographic analysis tools can offer valuable insights into the best locations for your travel agency. These tools can help pinpoint neighborhoods with an ideal customer base for your services.

The choice between a city center and a suburban area depends on your target market and business model. City centers typically offer higher foot traffic but come with steeper rents and increased competition. Suburban areas might provide a loyal local clientele with potentially lower rent but may require additional marketing efforts to establish your presence.

Being situated near event venues, convention centers, or corporate offices can provide a steady stream of potential clients, especially if your agency specializes in corporate travel or group bookings.

It's also important to understand local zoning laws, business regulations, and other legal requirements to ensure that your chosen location is suitable for a travel agency. Compliance with these regulations from the outset can prevent costly legal issues down the line.

Finally, assessing the long-term viability of a location is critical. Consider upcoming developments in the area that could impact your business, either positively by increasing foot traffic or negatively by introducing more competitors or raising rents.

Startup budget and expenses

Calculate how much you need to start.

On average, the initial capital needed to open a travel agency can vary significantly, ranging from as low as $5,000 to $20,000 for a home-based or online operation to $30,000 to $100,000 for a physical storefront in a well-trafficked area .

If you want to know the exact budget you will need for your own travel agency and also get a full detailed list of expenses, you can use the financial plan we have made, tailored to travel agencies . This excel file is actually very user-friendly and it will give you an instant and full detailed analysis of your future project.

The budget can vary the most due to the location of the travel agency. Prime locations in high-traffic areas tend to have higher rental costs, which can significantly increase startup expenses.

The size of the travel agency also plays a crucial role in determining the initial investment. A larger space not only increases rent but also may require more staff and marketing to attract clients, leading to higher operational costs.

The quality of technology and software is another significant factor. High-quality, reliable booking and customer management systems are expensive but can save money in the long run through efficiency and customer satisfaction. Conversely, starting with basic or lower-quality software can reduce initial costs but may lead to inefficiencies or a less professional service offering over time.

If the available capital is limited, it's still possible to open a travel agency, but careful planning and prioritization are crucial. The very minimum budget could be around $5,000 to $10,000 if you choose to operate online, minimize the size of your operation, use cost-effective software solutions, and manage much of the work yourself. This approach requires a hands-on strategy, focusing on a niche travel market to reduce complexity and costs.

To make the most of a limited budget, consider the following tips.

Identify all your expenses

The expenses when starting a travel agency include office space rental, licensing and permits, insurance, marketing and advertising, technology and software, staff training, establishing a customer base, and a reserve for unexpected expenses.

Office space is essential for a travel agency, and costs can vary greatly depending on location and size. On average, you might spend between $500 to $5,000 per month for rent. A well-located office can attract walk-in clients, but some agencies may opt for a home office or shared space to save on costs.

Licenses and permits are necessary for legal operation. Costs vary by location but typically range from a few hundred to a few thousand dollars. This includes business operation licenses and travel seller registration.

Insurance is critical to protect your business against liability, property damage, and other potential risks. Essential policies include general liability, property insurance, and errors and omissions (E&O) insurance, particularly important in the travel industry. Annual premiums can range from $500 to $3,000 or more, depending on your coverage levels and agency size.

Allocating funds for marketing and advertising is crucial for attracting customers. Initially, you might spend between $1,000 to $10,000 on marketing efforts, including social media advertising, traditional advertising, and creating a website. The amount can vary based on your strategy and the competitiveness of your market.

Investing in technology and software for booking systems, customer relationship management (CRM), and accounting software is important. Costs can range from $1,000 to $15,000, depending on the sophistication of the systems you choose. Subscription-based services may have ongoing monthly fees.

There are also training costs for staff and professional development. Setting aside $1,000 to $5,000 for initial training and ongoing professional development can help ensure high-quality service. This also includes any costs for obtaining or maintaining travel industry certifications.

Establishing a customer base is an ongoing expense that involves networking, partnerships, and customer acquisition strategies. Initial efforts can cost between $2,000 to $20,000. Developing relationships with reliable suppliers and considering commission structures can help manage costs.

Finally, setting aside a reserve for unexpected expenses or emergencies is crucial. A good rule of thumb is to have at least three to six months' worth of operating expenses saved. This can cover unforeseen issues, market changes, or shortfalls in cash flow.

Here is a summary table to make it easier to digest. For a full breakdown of expenses, please check our financial plan for travel agencies .

Business plan and financing

Make a solid business plan.

You have probably heard it already but, yes writing a business plan when opening a travel agency is crucial.

Why? Because a business plan serves as a roadmap for your venture, detailing your objectives, strategies to achieve them, and the potential obstacles you might encounter. A well-structured business plan is not only a tool for staying organized and on track but also critical if you're seeking funding from investors or financial institutions, as it shows the feasibility and future profitability of your travel agency.

The key components of a travel agency business plan include market analysis, financial planning, and operational strategy, among others. Market analysis is vital to understand your target market, their travel habits, and the competitive environment. It involves researching trends in the travel industry, pinpointing your main competitors, and discovering a niche or unique value proposition that distinguishes your travel agency from others.

Financial planning is another essential element. This section should detail your expected income, the cost of sales (including travel packages and partnerships with hotels and airlines), labor costs, and other operational expenses. It should also feature projections for profit and loss, cash flow, and a break-even analysis. Financial planning offers you and potential backers a transparent view of your travel agency's fiscal health and expansion prospects. You will find all of this in our financial plan for a travel agency .

While the structure of a travel agency business plan shares commonalities with other business plans, the focus on certain areas may vary.

For instance, a travel agency will emphasize product development (curating unique and attractive travel experiences), supplier relationships (negotiating deals with hotels, airlines, and tour operators), and location analysis (a visible and accessible office can be beneficial, although online presence is increasingly important). Additionally, demonstrating knowledge of travel regulations and the ability to provide exceptional customer service is crucial.

To succeed and create an effective travel agency business plan, you should conduct in-depth research and maintain realistic financial projections and capabilities. Engage with potential clients to understand their travel preferences, desires, and budget. Also, consider the scalability of your business model and how you might grow or diversify your services in the future.

In the case of a travel agency, particular attention should be given to establishing a strong brand identity and marketing strategy that connects with your intended audience. Emphasizing the exclusivity of your travel packages, the expertise of your staff, or the personalized experience you offer can set your agency apart in a competitive industry.

Success depends not only on the quality of your travel offerings but also on meticulous planning, understanding your market, managing finances prudently, and executing your operational strategy with precision.

Remember, a business plan is not a static document but a dynamic one that should be revisited and revised as your travel agency grows and adapts to the changing market.

Get financed

Concerned about how to finance your dream travel agency? There's no need to fret; a variety of financing options are available to help you get started.

Financing for a travel agency can come from multiple sources, including raising capital from investors, securing loans from banks or financial institutions, and obtaining grants or subsidies.

Each financing method has its own set of benefits and things to consider.

Raising capital means finding investors who will provide funds in exchange for equity in your travel agency. This is advantageous because it doesn't require immediate repayment like a loan does.

However, it also means parting with some ownership and possibly some control over your agency's operations.

For a travel agency, this could be a good strategy if you're looking to scale up quickly or if you need substantial initial capital for marketing campaigns or a strategic storefront location. To attract investors, you'll need a robust business plan that shows growth potential, profitability, and a deep understanding of the travel industry.

Another option is to take out a business loan.

This path allows you to maintain complete ownership of your agency but requires you to pay back the borrowed amount with interest. Loans can be used for a variety of purposes, such as securing office space, investing in technology and booking systems, or covering initial marketing expenses.

Banks often ask for a down payment or collateral, which might range from 15% to 25% of the loan amount. It's crucial to balance the proportion of your budget that comes from loans to avoid overwhelming your business with debt. Your travel agency's projected income should be sufficient to cover loan repayments while still allowing for operational costs and growth.

Grants or subsidies are another avenue, though they are less common.

These funds are typically provided by government bodies or non-profit organizations to support small businesses, particularly in niche markets or for innovative services. Grants do not need to be repaid, but they are competitive and often come with specific requirements.

For a travel agency, grants might not be the most reliable primary source of funding but could be used to complement other financing methods for certain initiatives or to adopt sustainable practices.

To effectively secure financing from lenders or investors for your travel agency, you must prove the viability and profitability of your business idea.

This involves crafting a comprehensive business plan that includes market analysis, a clear definition of your target market, detailed financial projections, and an effective marketing strategy. Your business plan should emphasize what makes your travel agency unique, such as specialized travel packages, exceptional customer service, or innovative technology use.

Lenders and investors will judge your travel agency based on criteria like your creditworthiness, industry experience, available collateral, and the strength of your business plan.

They will scrutinize the financial projections of your travel agency to determine if you can generate enough revenue to cover operating costs, repay debts, and turn a profit. Demonstrating a thorough grasp of the travel market, including trends, consumer behavior, and competitive analysis, will bolster your case.

Below is a summary table of the various financing options mentioned for opening a travel agency, along with their advantages, considerations, and potential uses:

Legal and administrative setup

Permits and licenses.

Starting a travel agency involves meticulous planning and compliance with various regulations and requirements to ensure the safety, satisfaction, and protection of your clients and your business.

The specific permits, licenses, industry regulations, inspection schedules, consequences of non-compliance, and insurance policies you'll need can differ based on your location, but there are common standards that are applicable in many regions.

First, you'll need to secure the necessary business permits and licenses.

This often includes a general business license from your city or county, and if you're selling travel insurance or other financial products, you may need a special license for that. For example, in the United States, selling travel insurance typically requires you to be licensed as a seller of travel insurance in the states where your clients reside. Additionally, if you're planning to offer travel packages, you might need to register as a seller of travel in certain states.

It's imperative to consult with your local government and industry-specific agencies to understand the precise requirements for your area.

Regarding industry regulations, travel agencies must comply with consumer protection laws and regulations that govern advertising, disclosures, and the handling of customer funds. This includes being transparent about the terms and conditions of travel packages, accurately representing services, and providing refunds or alternatives if services are not delivered as promised.

Inspections are not typically a part of travel agency regulations, but audits and reviews can be conducted by industry associations or licensing bodies to ensure compliance. The frequency and nature of these reviews can vary, but they are generally less frequent than health inspections for food establishments.

Non-compliance with industry regulations can lead to penalties ranging from fines to revocation of your license or registration, and in severe cases, legal action. It's crucial to understand and adhere to these regulations to maintain a reputable and lawful business.

Insurance is a vital component of safeguarding your travel agency. At the very least, you'll need professional liability insurance (also known as errors and omissions insurance) to cover mistakes or negligence in your services that could lead to client claims.

General liability insurance is also important to protect against accidents or injuries that may occur in your office. If you have employees, you'll likely need workers' compensation insurance to cover any work-related injuries or illnesses. Additionally, considering a commercial property insurance policy is advisable if you own or lease physical office space.

Furthermore, given the nature of the travel industry, you might also want to look into specific travel agency insurance policies that can cover risks like trip cancellations, supplier defaults, and other travel-related contingencies that could affect your clients and, by extension, your business.

Business Structure

The three common structures for opening a travel agency are LLC (Limited Liability Company), partnership, and sole proprietorship. Each has their unique features and implications for your business.

Please note that we are not legal experts (we specialize in business and financial planning) and that your choice should be based on how much risk you're willing to accept, how you prefer to handle taxes, and your plans for growing and possibly selling your travel agency.

In simple terms, a sole proprietorship is simple and straightforward but carries personal liability. A partnership allows for shared responsibility but requires clear agreements to manage risks. An LLC offers a balance of protection and flexibility, making it a strong option for many businesses looking to scale.

Consider your long-term goals, and consult with a financial advisor or attorney to make the best choice for your travel agency.

We’ll make it easier for you, here is a summary table.

Getting started to start a travel agency

Offer development, design and lay out.

Designing and laying out your travel agency for operational efficiency and an enhanced customer experience requires thoughtful consideration and strategic planning.

Let's explore how you can achieve this, focusing on customer engagement, balancing technology with budget, and ensuring privacy and security.

Firstly, envisioning customer engagement is crucial.

Your travel agency's design should welcome customers into a space that inspires travel. From the entrance, guide them through an area that showcases stunning travel imagery and interactive displays. The layout should encourage customers to explore different destinations, with staff positioned to provide information and assistance as needed. Place your most enticing travel packages and offers in areas where customers are likely to pause, such as near seating or refreshment areas.

This setup not only highlights your best offers but also encourages customers to consider additional travel options as they move through the agency.

Regarding the design to facilitate this engagement, consider the layout's ambiance and accessibility.

Open spaces, clear signage, and a logical arrangement of the environment promote easy movement and a sense of adventure. The consultation area should be clearly marked and designed to be inviting, with comfortable seating and privacy screens to ensure confidential discussions. If your travel agency includes a waiting area, ensure it's equipped with engaging travel literature and refreshments to keep customers comfortable and engaged while they wait.

Balancing the need for advanced technology with budget constraints is another challenge.

Start by prioritizing essential technology that directly impacts the customer experience, such as high-resolution displays for showcasing destinations and user-friendly booking systems. These are worth investing in because they are the core of your travel agency's operations. For other items, consider cost-effective solutions like cloud-based software for managing bookings and customer relationships, which can reduce the need for expensive on-site servers.

Additionally, plan for technology that offers scalability and efficiency, like integrated CRM systems or virtual reality experiences, to get the most value for your investment.

Privacy and security in the travel agency layout are paramount. Your design must include private consultation areas where customers can discuss travel plans and personal information without being overheard. Secure storage for sensitive documents and a reliable network security system are essential to protect both customer data and your business.

Specific protocols for handling personal information, secure payment processing, and data storage are crucial for privacy and compliance. Implement a system that ensures all customer information is handled confidentially and stored securely, with access restricted to authorized personnel only.

Train your staff thoroughly in privacy practices, emphasizing the importance of discretion, secure logins, and the proper handling of payment information.

Regularly review and update these protocols to comply with local privacy regulations and best practices.

Craft your offer

Your travel packages and services will be the cornerstone of your travel agency's success (or the reason for its struggles).

To begin, understand the preferences and needs of your target market through direct engagement, such as customer interviews and feedback forms, and indirect research, like analyzing travel trends and studying what successful competitors are offering.

Once you have a clear understanding of your target market's travel desires, you can start to design travel packages that not only meet their needs but also offer something unique.

Incorporating local experiences and off-the-beaten-path destinations into your travel packages is an excellent way to differentiate your offerings and promote sustainable tourism.

This strategy not only supports local communities and minimizes the environmental impact of travel but also ensures that your clients have authentic and memorable experiences. Forge relationships with local tour operators and accommodation providers to understand what unique experiences you can offer throughout the year. This knowledge allows you to plan your travel packages with seasonal activities, offering exclusive experiences that can attract travelers looking for something beyond the typical tourist spots. Seasonal travel packages also create excitement among your clients, as they anticipate new and unique adventures.

To ensure your travel packages are competitive, focus on exclusivity and quality.

This can be achieved by offering bespoke itineraries that cater to niche interests, such as culinary tours, adventure sports, or cultural immersion trips. Sharing the story behind each destination, like its history, culture, or ecological significance, can also add depth to your travel packages.

Ensuring consistency and quality in your travel services involves setting high standards and clear processes.

This can include detailed itineraries with reliable accommodations and transport, thorough training for your travel consultants, and regular checks on customer satisfaction. Consistency is crucial for building trust with your clients, as they will know exactly what to expect when they book a trip with your agency. Invest in partnerships with reputable service providers and don't hesitate to refine your travel packages based on feedback and new opportunities.

Utilizing customer feedback is vital for the ongoing enhancement and development of your travel offerings. Create channels for feedback, such as online reviews, surveys, and social media interactions, to understand what your clients appreciate and where there might be opportunities for improvement.

Be receptive to constructive criticism and ready to adapt based on customer insights. This not only aids in refining your travel packages but also demonstrates to your clients that you value their feedback, encouraging loyalty and repeat business.

Determinate the right pricing

When opening a travel agency, it's crucial to establish a pricing strategy that balances profitability with customer satisfaction. Here's a methodical approach to setting your prices effectively.

Firstly, you must understand your costs thoroughly, which include staff salaries, office expenses, marketing, software systems for booking and customer management, and any other costs associated with providing travel services.

Ensuring your prices cover these costs is fundamental to your agency's profitability.

Next, analyze your competition and the broader travel market to gauge the going rates for similar travel packages and services. While you don't need to mirror these prices, this research provides a valuable reference point.

Understanding the price sensitivity and preferences of your target market is also essential. Gather insights through customer feedback, surveys, or by experimenting with different price points and observing the effect on sales. This will help you find the sweet spot where customers feel they're getting good value without being overcharged.

Psychological pricing strategies can be effective in the travel industry as well.

Charm pricing, such as offering a trip at $999 instead of $1000, can create the illusion of a better deal. This tactic might be particularly useful for budget travel deals or special promotions.

However, you should apply this strategy carefully to maintain the perceived value of your travel packages.

The perceived value is crucial in the travel business.

Enhancing this perception can be achieved by providing exceptional customer service, creating exclusive travel experiences, and ensuring a strong brand presence. For instance, curating unique travel itineraries or providing personalized services can justify higher prices because customers perceive they are receiving more value for their money.

Seasonal pricing strategies can optimize sales by promoting travel packages during peak seasons or offering off-season discounts to stimulate demand.

For example, you might offer early bird specials for summer vacations or exclusive deals for winter getaways to encourage bookings during typically slower periods.

When introducing new travel services, introductory pricing, such as special launch offers or package deals, can entice customers to try them out. Once these services gain popularity, you can adjust the prices based on demand and cost factors.

For online bookings versus in-person consultations, consider the different costs and customer expectations. Online pricing may need to reflect convenience fees or service charges, which could be included in the package price or listed separately. Offering online-exclusive promotions can also drive bookings through your digital platform.

Lastly, the psychological impact of discounting travel services should be considered carefully. While promotions can increase bookings and attract new customers, too much discounting can harm your brand's image and lead to a perception of lower quality. Use discounts strategically, such as for last-minute bookings to fill up unsold inventory, without setting a precedent for constant price reductions.

Manage relationships with your suppliers

Poor relationships with suppliers could jeopardize your travel agency's ability to provide exceptional experiences for your clients.

On the contrary, nurturing strong partnerships with suppliers such as hotels, airlines, and tour operators will ensure access to high-quality travel options and exclusive deals.

Regular communication, prompt payments, and showing appreciation for their products and services can build loyalty and dependability. Be clear about your client's needs and expectations, and whenever possible, experience their services firsthand. This deepens your understanding of their offerings and potential issues, enabling you to collaborate more effectively.

Additionally, consider long-term contracts with key suppliers to secure competitive rates and guarantee availability, but also maintain a network of alternative providers to mitigate risks of unavailability or price surges.

For managing travel packages, inventory management techniques such as dynamic pricing are essential. This approach allows you to adjust prices based on demand and supply, maximizing profits. Regularly monitor booking trends to adjust offerings according to market demand, avoiding overcapacity and maximizing revenue. Implementing a real-time booking system can also be effective, where travel options are sourced and confirmed as needed, though this requires accurate market forecasting.

Technology can significantly improve package management and enhance customer satisfaction in a travel agency.

Implementing a booking management system that integrates with customer relationship management (CRM) systems allows for real-time tracking of reservations and client preferences. This technology can help predict trends more accurately, streamline booking processes, and identify opportunities that can inform package development and promotional strategies.

Additionally, digital tools can facilitate better communication with suppliers, enabling more efficient booking adjustments and collaboration.

Scaling travel agency operations presents challenges such as maintaining service quality, managing increased costs, and ensuring customer satisfaction. Address these challenges by standardizing service protocols, training staff thoroughly, and investing in technology that can increase efficiency without compromising the travel experience.

Scaling up also means more bookings, so negotiate pricing with suppliers for volume deals without sacrificing service quality. Customer satisfaction becomes even more critical as operations grow, requiring consistent delivery of promised travel experiences and more frequent customer feedback collection.

Implementing effective cost control measures involves scrutinizing every aspect of sourcing and providing travel services and packages. Regularly review and negotiate with suppliers to ensure you're getting the best rates without compromising service quality.

Also, consider alternative travel options that may offer cost savings or unique experiences. Utilize technology to track and analyze costs, client feedback, and booking patterns to identify areas for improvement. Reducing unnecessary expenses not only cuts costs but also allows you to offer competitive pricing, appealing to budget-conscious travelers.

Hire the right people

When starting a travel agency, you should be strategic about your hiring process, especially if you're working with a limited budget. Initially, you'll need a core team that can handle travel planning, customer service, and business management.

For travel planning, experienced travel agents are essential. They should have a deep knowledge of travel destinations, booking processes, and itinerary planning. A senior travel agent or travel consultant with a strong background in creating customized travel experiences can be a valuable asset to set the standard for your service offerings.

Customer service representatives are crucial for handling client inquiries, bookings, and providing support before, during, and after trips. They should be excellent communicators with a passion for travel and helping others.

For management, you'll need someone who can oversee the agency's operations, manage staff, and handle administrative tasks such as marketing, financial planning, and ensuring compliance with travel industry regulations.

As your travel agency grows, you might consider hiring specialized roles such as marketing experts, IT support for your booking systems, and additional administrative staff. Outsourcing can also be a strategic move for roles like accounting and web development, allowing you to focus on your core business while utilizing external expertise.

When hiring, prioritize candidates with a mix of industry knowledge, experience, and a passion for travel. For travel agents, look for certifications from recognized travel institutions and hands-on experience in the travel industry. Customer service skills are essential for front-line staff, along with the ability to work efficiently under pressure. For managerial roles, seek candidates with experience in travel agency management, a strong understanding of business operations, and leadership qualities.

To ensure a good fit for your travel agency's culture and demands, consider practical assessments such as role-playing customer service scenarios or testing travel destination knowledge during the hiring process.

Look for candidates who demonstrate a genuine passion for travel, customer service, and the ability to adapt to the dynamic nature of the travel industry.

Finding the right candidates can be challenging. Utilize travel industry networks, job boards, social media platforms, and attend travel trade shows to reach potential candidates. Offering internships or apprenticeships can also be a way to connect with emerging talent from travel and tourism programs.

Here is a summary table of the different job positions for your travel agency, and the average gross salary in USD.

Running the operations of your travel agency

Daily operations.

Running a travel agency smoothly requires organization, efficiency, and a keen understanding of your clients' needs. By adopting the right tools and practices, you can ensure a seamless operation and provide exceptional travel experiences.

Firstly, a robust Travel Agency Management System (TAMS) is essential. Look for a system that integrates itinerary planning, booking, customer relationship management (CRM), and financial tracking.

This integration allows you to handle bookings in real-time, maintain client profiles with their travel preferences and history, and manage your finances effectively. Many TAMS platforms also support communication with clients through automated emails and reminders, which can enhance the customer service experience.

For itinerary management, choose software that allows you to create personalized itineraries quickly. The best systems enable you to collaborate with clients and make adjustments on the fly, ensuring their needs are met precisely.

Effective supplier relationship management is also key in the travel industry. Establish clear communication channels with your partners, such as hotels, airlines, and tour operators. Set expectations for response times, service quality, and payment terms. A strong network of reliable suppliers can provide you with competitive rates and availability, giving you an edge in the market.

Investing in your team's well-being and professional development is crucial. Provide regular training on the latest travel trends, destinations, and technology tools. Set clear goals and expectations, and offer constructive feedback. Recognize and reward excellent performance to maintain high morale and encourage a culture of excellence.

Creating memorable travel experiences starts with understanding your clients' desires. Train your staff to be attentive and proactive. Encourage them to build rapport with clients, remembering their past travel experiences and preferences to offer tailored recommendations.

Maintaining a professional and welcoming office environment, with up-to-date travel brochures and a comfortable consultation area, can also enhance the client experience.

Develop customer service policies that reflect the unique nature of travel planning. This might include flexible booking options, transparent cancellation policies, and a commitment to support clients before, during, and after their trips.

Encourage clients to provide feedback through your website, email surveys, or social media. Respond to feedback promptly and constructively, showing that you value their opinions and are dedicated to continuous improvement.

When handling complaints, listen empathetically and offer practical solutions. Whether it's rebooking a flight or providing future travel credits, show your commitment to resolving issues. Turning a challenging situation into a positive outcome can often result in a loyal client who trusts your agency to handle their travel needs.

Revenues and Margins

Know how much you can make.

Understanding the financial workings of a travel agency is crucial for success in the industry.

We have an in-depth article on the profitability of travel agencies that provides extensive details. Below, we'll summarize some key points.

One important metric for travel agencies is the average booking value, which represents the average amount a customer spends on a single travel booking.

The average booking value can vary greatly depending on the type of travel agency and its market focus. For luxury travel agencies, which cater to high-end clients seeking exclusive experiences, the average booking value could be quite high, perhaps between $5,000 and $20,000 .

Conversely, a standard retail travel agency that offers a wide range of travel options to the general public might see a lower average booking value, potentially between $500 and $3,000 .

Niche travel agencies, which specialize in certain types of travel like adventure tours or eco-tourism, might have varying booking values based on the uniqueness and demand for their offerings. We could estimate an average booking value between $1,000 and $5,000 .

When it comes to revenue, this too will differ. You can estimate your travel agency's revenue accurately with our financial plan tailored for travel agencies .

Urban travel agencies might see monthly revenues ranging from $10,000 to over $500,000 , leading to annual revenues between $120,000 and $6 million .

Rural travel agencies may have lower revenue expectations due to a smaller customer base, with annual revenues often between $50,000 and $300,000 .

Startup travel agencies typically experience lower revenues as they work to establish a customer base and brand presence. Initial monthly revenues might not exceed $5,000.

Established travel agencies benefit from repeat business and referrals, which can lead to higher and more consistent revenues.

Luxury travel agencies, while potentially earning higher commissions per booking, may have a smaller customer base due to the exclusive nature of their services. Annual revenues for such agencies might not typically exceed $2 million .

Franchise travel agencies can often achieve higher revenues due to strong brand recognition and marketing support, with annual revenues ranging from $200,000 to $1 million .

Revenue for niche travel agencies is heavily dependent on the popularity and demand for their specialized services, making it challenging to provide an average range.

Travel agencies don't just earn money from booking trips. They have a variety of revenue streams available to them.

If you're looking for inspiration, here's a table that outlines many different ways a travel agency can generate income.

Understand your margins

As with any business, understanding the difference between revenue and profit is crucial for a travel agency. Before we can determine the actual earnings at the end of the year, we must consider the expenses and margins of the travel agency.

Let's delve into the gross and net margins, which are key indicators of a travel agency's profitability.

To calculate your own margins and get a precise figure for your potential profit, you can adjust the assumptions in our financial model designed for travel agencies .

The typical range of gross margins for travel agencies can vary, often ranging from 10% to 30%.

Gross margin is calculated by subtracting the cost of goods sold (COGS), which for a travel agency includes direct costs such as payments to tour operators, airlines, and hotels, from the revenue generated from the sales of travel packages, then dividing this number by the revenue, and finally, multiplying by 100 to get a percentage.

Net margins, however, account for not just the COGS but also all other expenses a travel agency incurs, such as office rent, utilities, marketing expenses, administrative costs, and taxes. This figure is obtained by subtracting all operating expenses from the gross profit.

Net margins offer a more complete view of a travel agency's profitability and are typically lower than gross margins, with industry averages often ranging from 2% to 8%, reflecting the tighter profitability after all costs are considered.

Different types of travel agencies—online, boutique, and full-service—can have varying profit margins due to differences in their business models, operational scale, and target markets. Here is a table to illustrate this.

Margins in a travel agency are significantly influenced by factors such as service mix, pricing strategy, and scale of operations.

A diverse service mix can attract a wider customer base but may also increase complexity and costs. Pricing strategy is critical; prices must be competitive yet sufficient to cover costs and generate profit. Scale of operations can affect cost efficiencies, with larger agencies often benefiting from lower per-unit costs due to higher volume.

Ongoing expenses that impact travel agency margins include payments to service providers, staff salaries, office rent, and marketing costs. Fluctuations in travel demand can affect gross margins. Labor is another significant expense, especially for agencies that provide personalized services. Rent can vary widely by location, and marketing is essential for customer acquisition and retention.

Agencies focusing on niche markets like luxury or adventure travel may see different margin dynamics compared to those with a broader service range. While niche agencies can charge premium prices, they also face higher operational costs and potentially limited market size, impacting the overall margin.

External factors such as economic conditions, travel trends, and seasonality also play a crucial role in travel agency margins. Economic downturns can reduce consumer spending on travel, while peak seasons can significantly boost sales. Staying current with travel trends and adapting service offerings accordingly can help manage these fluctuations.

The challenge of maintaining healthy margins in the face of rising operational costs and intense competition is significant. Travel agencies can mitigate these challenges through efficient cost management, strategic pricing, optimizing operations, and investing in technology for productivity improvements.

Regularly tracking and analyzing financial performance, including gross and net margins, is vital for ensuring the financial health and sustainability of a travel agency (and you can do all of that with our financial model specifically for travel agencies ).

Implement a strong marketing strategy

Marketing for a travel agency can be as exciting as the destinations you're promoting. We understand that you'll be focused on creating unforgettable travel experiences for your clients, so we'll keep our marketing advice straightforward and impactful, just like the strategy we've detailed in our business plan for a travel agency .

Building a brand for your travel agency is essential. Your brand is the identity that customers connect with and remember. It's more than just your logo or the images you use; it's the promise of adventure, relaxation, and memories that you deliver. Your brand should encapsulate the essence of your travel services, whether that's luxury getaways, eco-tours, or family-friendly vacations. A strong brand will help you stand out in the competitive travel market and cultivate a dedicated clientele.

Begin your marketing plan by identifying your target audience. Who are your ideal clients? What do they seek in their travels? Are they after exotic adventures, cultural immersion, budget-friendly trips, or high-end luxury experiences? Knowing your audience will shape your branding and marketing efforts.

For promotion, social media and online marketing are invaluable for travel agencies. Platforms like Instagram, Facebook, and Pinterest are ideal for showcasing stunning travel destinations and sharing customer testimonials.

Engage your audience with travel tips, destination highlights, and interactive content like polls or quizzes about their dream vacations. Share stories and photos from happy clients to illustrate the amazing experiences your agency provides.

Content strategies that resonate with travel agencies include highlighting unique travel packages, sharing travel guides for different destinations, and promoting special deals or seasonal trips. Collaborating with travel influencers or local businesses in the tourism industry can also increase your visibility.

Not every marketing tactic will suit your travel agency. For instance, if your focus is on luxury travel, budget travel forums are not the right place for your marketing efforts. Similarly, if you specialize in cruises, content about backpacking adventures might not align with your brand.

Even with a modest budget, there are clever ways to attract new clients.

First, consider attending travel expos or local community events to showcase your services. This can lead to direct bookings and enhance your agency's profile.

You can also offer travel webinars or information sessions to share your expertise and entice potential customers.

Forming partnerships with local businesses, like upscale restaurants or retail stores, can help you reach a broader audience.

Implementing a referral program can motivate your existing clients to recommend your agency to others. Simple incentives or discounts on future travel can be very effective.

Lastly, never underestimate the power of word-of-mouth marketing. Encourage your satisfied travelers to share their experiences and offer them perks for bringing new clients to your door.

Grow and expand

We want you to thrive with your travel agency. We trust that the insights provided here will aid you in reaching new heights.

Imagine you're at the helm of a flourishing travel agency, with robust margins and a strong cash flow. Now is the moment to contemplate how to scale and broaden your enterprise.

There's always potential for greater success, and we're here to show you the path to attain it.

Also, please note that there is a 5-year development plan tailored for a travel agency in our business plan template .

Successful travel agency owners often exhibit qualities like resilience, adaptability, a profound knowledge of the travel industry, and the ability to connect with and understand their clientele. These attributes are essential as they steer the growth of their business.

Before expanding a travel agency's service offerings, consider the existing market demand, the compatibility of new services with your current portfolio, and how these additions will impact your operations.

Market research is critical in this decision-making process. By examining customer preferences, travel trends, and the success of similar services in the market, you can make informed choices that are in line with your agency's capabilities and customer expectations.

Evaluating the success of current operations involves analyzing sales trends, customer feedback, and operational efficiency. If your agency consistently hits or surpasses sales targets, receives positive feedback, and operates efficiently, it might be ripe for expansion.

Opening additional branches should be grounded in solid evidence of demand, a deep understanding of the target market, and the financial robustness of your current operation.

Franchising can be a way to expand with lower capital risk, tapping into the entrepreneurial spirit of franchisees. However, it demands a strong brand, proven operational systems, and the capacity to support franchisees. Opening owned branches gives more control over operations and customer experience but requires more capital and direct management. Each model has its pros and cons, and the choice depends on your business objectives, resources, and preferred growth strategy.

Digital channels, including online booking platforms and social media marketing, can significantly increase a travel agency's reach and sales. Establishing an online presence allows you to cater to clients beyond your immediate geographic location, adapting to the increasing demand for digital convenience.

This strategy necessitates an understanding of digital marketing, logistics for travel arrangements, and maintaining service quality.

Branding is vital as it sets your travel agency apart in a competitive market. A strong, consistent brand identity across all branches and platforms can enhance customer loyalty and attract new business. Strengthen your brand by ensuring that every customer interaction reflects your agency's values, professionalism, and quality.

Maintaining consistency across multiple branches is challenging but crucial. This can be achieved through detailed operational manuals, training programs, and quality control systems.

Regular visits and audits, along with fostering a strong, shared culture, help ensure each branch upholds the standards that contributed to your original location's success.

Financial metrics and business benchmarks indicating readiness for expansion include consistent profitability, a strong cash flow, and meeting or exceeding sales projections over a significant period.

Additionally, having a scalable business model and the operational capacity to support growth is essential.

Partnerships with other businesses and participation in travel expos can introduce your agency to new customers and markets. These opportunities allow for creative collaboration, community engagement, and brand visibility, contributing to your agency's growth.

Scaling services to meet increased demand involves logistical considerations such as technology upgrades, efficient staff management, and possibly expanding your office space. Ensuring that your team can handle the increased volume without sacrificing service quality is key.

Finally, it's crucial that your expansion efforts remain aligned with your travel agency's core values and long-term objectives. Growth should not compromise the essence of what made your agency successful in the first place.

Regularly revisiting your business plan and values can help ensure that your expansion strategies are in harmony with your vision and mission, preserving the core of your travel agency as it grows.

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A Comprehensive Guide for How to Start a Travel Agency

If you’ve ever wondered how to start a travel agency, you’re in the right place. In the swiftly changing travel agency industry entrepreneurs who are aiming to be successful. Must remain ahead of the competition and have a plan for every part of running their business . This blog post will provide an in-depth guide to establishing your own independent travel agency.

From finding your niche in the competitive market, and registering your business as an LLC. Also understanding licensing requirements and training courses that build trust with customers. We have got you covered. We’ll also discuss effective communication channels for client support, and developing a comprehensive travel agency business plan. Also employing guerrilla marketing tactics, insurance requirements for travel agencies, and joining associations while staying current on global events.

By following the steps outlined here on how to start a travel agency you’ll be well-equipped with the knowledge needed. Knowledge to make informed decisions throughout this exciting journey to create an independent travel agency.

How to Start a Travel Agency by First Finding Your Niche

Conducting thorough research on the market and determining your ideal customer. Is crucial to finding your niche within the travel agency industry. By identifying popular trends, and emerging markets, and understanding the demographics, preferences, and needs of potential clients. You can tailor your services to a specific target audience. This will help you stand out from competitors while providing value-added experiences for travelers.

Identifying Popular Trends and Emerging Markets

To stay ahead of the competition. It’s essential to keep an eye on popular trends and emerging markets in the travel industry. Research online resources like travel blogs or subscribe to trade publications such as Travel Trade Gazette (TTG) . Attend conferences or webinars that discuss current developments in tourism.

Understanding Demographics, Preferences, and Needs of Potential Clients

Analyze data about traveler demographics using sources like Statista , which provides statistics on global tourism trends. Conduct surveys or interviews with potential customers to gain insights into their preferences when planning trips. Such as budget constraints or preferred destinations, and identify gaps where you can offer unique solutions tailored specifically for them.

• Action Step: Create a list of possible niches based on your findings from researching popular trends/emerging markets and analyzing traveler demographics/preferences.
• Action Step: Evaluate each niche idea by considering factors like profitability and competition level before selecting one that aligns best with your skills , interests, and resources.

Once you have identified the most popular trends and emerging markets in the travel agency industry. You can begin to understand what kind of services your potential clients may need. Registering your business as an LLC is a crucial step for any aspiring entrepreneur. It helps ensure that all finances are kept separate from personal ones and allows access to obtain an EIN number.

Registering Your Business as an LLC is an Important Step in How to Start a Travel Agency

When starting a travel agency. It is essential to register your business as a limited liability company (LLC) through the Small Business Administration (SBA). This step is crucial for protecting yourself legally while operating your new venture. Let’s dive into some key aspects of registering an LLC and obtaining the necessary identification numbers.

Importance of Separating Business Finances from Personal Ones

To avoid personal liability and ensure smooth financial management, it is vital to separate your business finances from personal ones. Opening a dedicated bank account for your travel agency will help you track expenses more efficiently and make tax filing easier. Additionally, consider applying for a business credit card to manage purchases related specifically to the company.

Obtaining Federal Employer Identification Number (EIN)

An EIN or Tax ID number is required when registering your LLC with the IRS. It serves as an identifier for tax purposes and allows you to hire employees if needed in the future. You can apply online through the IRS website , which usually takes only minutes.

In summary, properly registering your travel agency as an LLC helps protect you legally. While also streamlining financial operations within the organization. This sets up both short-term success and long-term growth potential.

Registering your business as an LLC is essential for protecting yourself and your finances. It’s time to take the next step in building trust with customers. By getting licensed and completing the necessary training courses.

Licensing Requirements and Training Courses

To ensure compliance with local regulations. Research the licensing requirements for travel agents in your area and take relevant training courses. To ensure you’re operating legally, research the specific regulations in your area. Done by visiting government websites or consulting local business resources. Additionally, consider enrolling in training courses designed for travel agents. Which will expand your knowledge of tourism trends and industry best practices.

Building Trust with Customers through Professional Certifications

• Certified Travel Associate (CTA) : Offered by The Travel Institute, this certification demonstrates proficiency in various aspects of the travel industry. Discover the advantages of this program here.
• Certified Travel Counselor (CTC) : This advanced certification is also provided by The Travel Institute and focuses on management skills within the travel sector. Find out how to become a CTC at their official website: TheTravelInstitute.com.
• American Society of Travel Advisors (ASTA) Verified Travel Advisor (VTA) : ASTA’s VTA program covers legal issues, ethics, sales techniques, and marketing strategies among other topics relevant to running a successful agency. Get more information about becoming an ASTA VTA member from their website: ASTA.org .

Independent travel agents earning these certifications not only enhance their professional credibility but also helps you build trust. Trust with potential clients makes them more likely to choose your services for their travel needs.

Having the right credentials and instruction is essential for establishing customer confidence and delivering proficient service. Additionally, effective communication channels are essential for providing customer support and creating exceptional customer experiences.

Effective Communication Channels for Client Support

As a home based travel agency, it’s crucial to ensure that your communication channels are easily accessible. So clients can reach out whenever necessary. Creating an outstanding customer service experience is essential for establishing trust and devotion from your customers. Let’s explore some ways you can set up dedicated communication channels for client support .

Setting Up Dedicated Phone Lines, Email Addresses, and Chat Support Systems

• Dedicated phone lines: Having a separate business line ensures professionalism while also allowing you to manage calls efficiently. Consider using services like Grasshopper or RingCentral , which offer virtual phone systems specifically designed for small businesses.
• Email addresses: Create a professional email address (e.g., [email protected]) using an email hosting provider such as Google Workspace .
• Chat support systems: Implement live chat functionality on your website through platforms like LiveChat . This allows clients to get instant answers from you or your team members during office hours.

Providing Exceptional Customer Service Experiences

How to start a travel agency and stand out in the competitive travel industry. It’s essential to provide top-notch customer service by being responsive and attentive to each client’s needs. Here are some tips for delivering outstanding client support:

• Maintain clear communication with clients throughout their trip-planning process. Answer questions promptly and keep them informed of any changes or updates.
• Go the extra mile to personalize your clients’ experiences, such as sending a thank-you note or offering tailored recommendations based on their preferences.
• Ask for feedback after each trip and use it to improve your services continually.

By continually striving to exceed customer expectations and solicit feedback. Your home-based travel agency will be well-positioned to provide a superior service experience. That will differentiate you from competitors and ensure repeat business.

Effective communication channels for client support are essential to providing exceptional customer service experiences. Developing a comprehensive business plan is the next step in how to start a travel agency and ensure your success.

To provide exceptional customer service as a home based travel agency, it’s important to set up dedicated communication channels such as phone lines, email addresses, and chat support systems. Maintaining clear communication with clients throughout their trip-planning process, personalizing their experiences, and asking for feedback can help create an outstanding customer service experience that sets you apart from competitors.

Develop a Comprehensive Business Plan for How to Start a Travel Agency

Successful travel agencies start with a comprehensive business plan is essential when starting any new venture. Consider using resources like LivePlan or Growthink’s Ultimate Template if drafting one from scratch seems too daunting initially. This document should outline all aspects of running a successful operation. Including funding sources, marketing expenses, and advertising campaigns. Also the number of employees needed to support your growing client base over time.

Funding Sources and Expenses

• Determine startup costs such as office equipment, website development, and licensing fees.
• Identify potential funding sources like personal savings, loans from family members or banks, and grants for small businesses in the travel industry.
• Create a budget that includes monthly operating expenses such as rent (if applicable), utility bills, employee salaries (if hiring staff), insurance premiums, and promotional activity costs.

How to Start a Travel Agency Using Marketing Strategies and Advertising Campaigns

• Analyze your target audience’s preferences to create effective marketing strategies that resonate with them. Social media platform usage habits can be insightful here.
• Select appropriate channels for promoting your travel agency, such as online ads on popular websites/apps targeting travelers, traditional print advertisements in newspapers/magazines, and radio/TV commercials, depending upon budget constraints and audience reachability factors.

Hiring Employees: Determining Staff Requirements

To ensure smooth operations at your home based travel business while catering to an expanding clientele base effectively:

• Evaluate current workload capacity vis-à-vis expected growth rate projections.
• Identify areas where additional manpower might be needed, such as customer support, sales and marketing, and finance management.
• Recruit skilled professionals who share your passion for travel and possess relevant industry experience.

Constructing an exhaustive business plan is imperative for any aspiring travel agency, as it will provide the bedrock for your enterprise and guarantee that you are ready to confront potential difficulties. With an effective marketing strategy in place, you can begin employing guerrilla tactics to promote your travel agency on social media platforms and leverage partnerships with local businesses for cross-promotion.

How to Start a Travel Agency by Employing Guerrilla Marketing Tactics

In addition to traditional advertising methods, consider employing guerrilla marketing tactics like Briana did when she started her backpacking trips company in Thailand eight years ago. Look into utilizing unorthodox strategies, such as Briana did when she opened her backpacking trips company in Thailand eight years ago, to extend your reach and create a stir around your business without depleting resources.

Creative Ways to Promote Your Travel Agency on Social Media Platforms

Utilize social media platforms such as Facebook, Instagram, and Twitter to showcase captivating images of popular destinations or share customer testimonials. Create engaging content that encourages users to interact with your brand by asking questions or hosting contests for free trips or discounts on services.

Utilizing Partnerships with Local Businesses for Cross-Promotion

Form strategic alliances with local businesses related to the travel agency industry – hotels, restaurants, tour operators – and collaborate on joint promotions. For example, offer exclusive deals for customers who book through both companies or create bundled packages that include accommodations and guided tours at discounted rates. These partnerships not only expand your reach but also provide additional value for clients seeking a seamless travel experience.

• Action Step: Identify potential partners within the tourism sector in targeted destinations; establish relationships based on mutual benefits and shared goals.
• Action Step: Develop creative promotional campaigns leveraging social media channels; track engagement metrics to measure success and adjust strategies accordingly.

By utilizing creative tactics for how to start a travel agency and leveraging partnerships with local businesses, agencies can effectively employ guerrilla marketing strategies to promote their services. Insurance requirements are an important factor when starting a travel business. Understanding the different types of insurance policies available is essential for successful business operations.

Insurance Requirements for Travel Agencies

Before launching your independent travel agency, it’s important to have the necessary insurance coverage in place to protect both you and your clients from potential risks associated with the services provided. In this section, we’ll discuss the different types of insurance policies available for travel businesses and how to compare quotes from various providers.

Understanding Different Types of Insurance Policies Available for Travel Agencies

• Professional Liability: This covers claims arising from professional negligence or errors that may result in financial loss for clients.
• Commercial Liability: This protects against claims related to bodily injury or property damage caused by business operations.
• Error & Omissions (E&O): E&O coverage safeguards against mistakes made while providing advice or booking services that could lead to client dissatisfaction and lawsuits.
• General Liability: This policy provides broad protection against legal liabilities resulting from accidents, injuries, or other incidents occurring on your premises or during business activities.

Comparing Quotes From Various Insurance Providers

To ensure you get the best value and appropriate coverage levels, it’s essential to compare quotes from multiple insurance providers. You can start by reaching out to local agents who specialize in small businesses like yours. Alternatively, consider using online platforms such as Insureon , which allows you to request customized quotes based on your specific needs quickly. When comparing offers, pay attention not only to premium costs but also deductibles, policy limits, exclusions, and customer reviews regarding claim handling experiences.

It is important to research the various insurance policies available to travel agencies and compare quotes from different providers in order to protect your business. Additionally, staying up-to-date on global events can help you monitor international affairs that may affect popular tourist locations.

Join Associations and Stay Current on Global Events

One of the best ways how to start a travel agency and grow your travel agency is by joining associations such as the Association of Independent Tour Operators (AITO) . These organizations provide valuable networking opportunities while also offering access to resources that may prove helpful during the startup phase of operations, including office equipment, comfortable furniture, and conference room spaces for clients to meet and discuss their upcoming adventures.

Monitoring International Affairs and Weather Conditions Affecting Popular Tourist Locations

• International affairs: Staying current with global events impacting destinations around the world is crucial for any successful travel agency. By keeping tabs on news developments, you can better serve your customers while positioning yourself as an expert within your field. Some reliable sources include BBC World News , CNN International , or subscribing to a reputable news outlet’s newsletter.
• Weather conditions: It’s essential to monitor weather conditions in popular tourist locations since they can significantly impact travelers’ plans. Utilize websites like The Weather Channel , or apps such as AccuWeather ( iOS/Android app available) .

In summary, joining professional associations and staying up-to-date with international affairs will not only help you establish credibility but also contribute to growing a successful home-based travel agency business .

FAQs About How to Start a Travel Agency

What are the 8 easy steps to start a travel agency.

1. Find your niche in the travel industry by identifying trends and demographics. 2. Register your business as an LLC and obtain an EIN. 3. Fulfill licensing requirements and complete training courses for certifications. 4. Set up effective communication channels for client support, such as phone lines and email addresses. 5. Develop a comprehensive business plan outlining goals, strategies, and financial projections. 6. Employ guerrilla marketing tactics on social media platforms to promote your agency. 7. Obtain necessary insurance policies for your travel agency from reputable providers. 8. Join associations related to the travel industry and stay current on global events affecting tourism.

How do I start a successful travel agency?

To start a successful travel agency, focus on finding a profitable niche market, providing exceptional customer service experiences, utilizing creative marketing strategies like partnerships with local businesses or social media campaigns, obtaining professional certifications to build trust with clients, staying informed about international affairs impacting popular tourist locations, and continuously adapting to changes within the industry.

Is it a good idea to start a travel agency?

Starting a travel agency can be rewarding , especially if you have a passion for traveling and helping others plan their trips. However, many ask will my travel agency make money. Success depends upon factors such as competition within chosen niche markets, the ability to adapt to changing consumer preferences, and technological advancements. It’s essential to conduct thorough research and create detailed business plans before embarking on this entrepreneurial journey .

How much does it cost to start being a travel agent?

The cost of starting a travel agency varies depending on factors like business structure, location, and marketing efforts. Generally, expect to spend between $1,000 to $10,000 for initial setup costs such as registration fees, training courses, certifications, insurance policies, office equipment, and promotional materials.

Creating a travel business can be an invigorating and remunerative endeavor, yet it necessitates thoughtful preparation and precise focus. From identifying your niche market to obtaining the necessary licenses and insurance policies, there are many important steps involved in how to start a travel agency successfully.

To begin, it’s important to develop a solid business plan that outlines your goals, target market, and financial projections. Consider whether you want to operate a home-based travel agency or establish a physical business location. Research successful travel agencies to learn from their strategies and identify areas where you can differentiate yourself.

The next step in how to start a travel agency is to obtain any necessary licenses and certifications required by your state or country. This may include a seller of travel license or a business license. It’s also important to obtain liability insurance to protect yourself and your clients.

Once you have the legal and financial aspects in order, it’s time to focus on building your brand and attracting clients. Develop a strong online presence through a website and social media channels. Consider partnering with other businesses in the travel industry, such as hotels or airlines, to offer package deals or discounts to your clients.

As you begin to attract clients, provide exceptional customer service experiences to build loyalty and positive word-of-mouth. Stay up-to-date with industry trends and events to offer the latest and greatest travel options to your clients.

Free Spirited, Committed Christian, History Buff, and News Junkie. I Write About How to Make Money Online, Start a Home-Based Business, and Find a Profitable Side Hustle.

THE JOURNAL

Travel Advisor Resources

How to Start a Travel Agency (& Why It’s Not Your Best Option)

The Modern Travel Agency

Fora Travel

https://www.foratravel.com/the-journal/how-to-start-a-travel-agency

Wondering how to start a travel agency? We’re breaking down all the steps below — and highlighting why joining a host agency like Fora may be the better (and more financially rewarding) path.

Ready to start selling travel? Sign up to become a Fora Advisor today. All it takes is a passion for travel. We’ll hook you up with everything you need — from expert-led travel agent training to a mountain of marketing resources — to be successful. 

First, what exactly is a travel agency?

Travel agencies are different from individual travel agents — or travel advisors (the Fora term has a better ring to it, doesn’t it?). Agencies are collections of advisors that plan and book trips for clients. (Asking yourself, " What does a travel agent do? We've got you.)

The advisors can either be independent contractors — as they are at Fora — or dedicated employees. The former are largely in control of their business while the latter typically adheres to rigid schedules, dedicated offices and so on. Independent travel agents have significantly more freedom. 

At Fora, our advisors can work as much or as little as they want. A large number of Fora Advisors plan trips as a travel side hustle , for instance. This typically isn’t allowed at non-independent agencies.

(Learn how to become an independent travel agent .)

Are there different types of travel agencies?

Yes. Some agencies offer specific travel agent jobs , with distinct travel agent niches. Examples include luxury travel agencies, cruise agencies, agencies that cater to select destinations and more. 

Learning how to start a travel agency with a niche doesn’t dramatically alter the process, but it can affect your bottom line (see below).

What benefits and perks do travel agencies offer?

Exact perks will vary by agency, and some agencies offer little more than brand name. If you’re learning how to start a travel agency, then it’s up to you to decide what types of benefits and perks programs to offer.

At Fora, we offer extensive support, a multitude of travel agent training covering every aspect of the travel industry, virtually all the marketing resources you could need and access to our community of travel advisors, which is built upon sharing insider wisdom, deals and travel tips that can be shared with clients. Oh, and Fora Advisors can also offer their clients VIP hotel and travel perks at thousands of properties around the world thanks to our travel partnerships .

Do you need an agency to become a travel advisor?

Technically, you can become a travel advisor without joining or starting a travel agency. However, this can be a difficult path because you’ll have to forge supplier relationships on your own.

While most hotel groups offer commissions — that’s how travel agents are paid — only a few offer client-facing perks, and many of these programs are by invitation only. To obtain an invite, you need to be successful as a travel agency. But to be successful, you need to be able to offer perks and deals to entice clients away from online travel agencies like Expedia, not to mention more established travel agencies.

If this sounds difficult, we get it; it's crucial to understand that starting a travel agency is more difficult in general. In addition to securing partnerships with major travel brands, you’ll have to worry about things like licensing, startup costs and the like (we’ll come back to this soon).

Alternatively, you can join Fora and take advantage of all the resources and partnerships we offer from day one.

Is it a good idea to start a travel agency?

So far, we’ve largely focused on why it’s difficult to start a travel agency. And we’ve touched on why joining a host agency like Fora is the better deal. But if you're still keen on this option, let’s cover the advantages of starting a travel agency from scratch.

There’s always a demand for travel

In fact, travel demand is at an all-time high. Between jobs where you travel , vacations and remote work, more people than ever are regularly seeing the world. 

Considering travel advisors and agencies are astronomically outnumbered by the amount of people seeking travel, there are opportunities to start your own agency from scratch. However, this gap is shrinking, and competing with the big agencies is only going to get tougher. 

Want to join a successful travel agency? Check out Fora's 2023 year in review : good things are happening here, and our travel advisors are reaping the benefits.

The value of a travel agent is better than it has ever been

As more people travel, suppliers (such a hotels and cruises) are more likely to offer perks that travel agencies and advisors can offer their clients. Plus, there’s less risk to a supplier’s bottom line because the advisors tend to bring in higher quality guests, and there's a greater chance for repeat business.

Travel agencies can be very lucrative…once they get off the ground

Because so many people are traveling right now, the opportunity to earn income from commissions and planning is exceptional. However, it’s worth noting that established agencies have a clear advantage here. People are much more likely to plan their travel through familiar brands than untested agencies.

If you’re looking for brand recognition, you don’t have to look far. We have an ever-growing presence on social media, and perhaps more importantly, we’re constantly being acknowledged by the biggest names in travel, from The New York Times to Virtuoso.

How to start a travel agency: step-by-step

Ready for the exact steps? Here’s how to start a travel agency from scratch. 

A warning though: this guide isn’t meant to be taken as business or legal advice, nor is this an all-encompassing plan for all jurisdictions. Some locales, states and countries may require additional or alternative steps.

Or, skip the hassle of building your own travel agency and start selling travel as an independent advisor right away when you sign up to become a Fora Advisor .

1. Understand the travel industry, conduct market research & identify a niche

Before you ever touch a business plan, it is important that you learn the ins and outs of the travel industry. This means understanding the triangular relationship between suppliers — such as hotel brands and rental-car services — travel advisors and clients. It’s then critical to know the exact products and services you’ll be selling. This includes hotel reservations, tours, cruises… you get the idea. 

Next, it’s important that you know your competition, and this will rise and fall depending on the audience you’re seeking. For example, it’s generally easier to get your foot in the door at the local level than to start on an international field, where all the major players have already found their market share. 

On the flip side, while there may be less competition the smaller you scale, there may also be exponentially less demand for your agency’s services. Ultimately, it's all a balancing act.

To do all of this, you’ll need to enroll in travel supplier training courses, conduct market research and perhaps ideally, find a niche to exploit.

If you opt to join a travel agency instead, the amount of material you need to cover is but a fraction of what we’ve mentioned thus far.

2. Create a business plan, register your business, make a financial plan & secure startup costs

After you get a handle on the industry, you have to understand the more technical aspects of starting a travel agency. 

This includes creating a business plan, registering your business with all local, state and federal entities (requirements varies by country), pitching a financial plan to investors and securing your startup costs, which could be anywhere from a few thousand dollars to tens of thousands of dollars and beyond — the exact number relies on many more factors than can reasonably be listed here. But generally, the larger your target market, the larger the initial investment needs to be. 

This isn’t a one-time ordeal either, as you’ll need to secure investments to fund regular business operations until you start turning a profit.

Comparatively, our membership fee costs either $49 per month or $299 per year, a far better deal.

3. Understand your tax obligations

Another technical aspect of starting a travel agency, or any business, is understanding your tax obligations. Taxes for agencies, regardless of how they are organized (as a corporation, LLC, etc.), are going to be more complicated than taxes for travel advisors because there are a lot more factors to consider, such as employees, nuanced expenses and so on. 

4. Acquire all the necessary licenses & registrations for your travel agency (local, state, international…)

In addition to ordinary business licenses (i.e., the licenses you need to run any business), you may also need to register as a seller of travel. Exact license requirements change with your location — and the specifics get convoluted fast. Moreover, you may also need licenses in select areas before you can sell travel within their borders (e.g. California).

As such, this is a good time to mention that when you become a Fora Advisor , you’re operating under our already established licenses, saving you loads of time and money on fees.

5. Create a website & set up your office (online and / or brick-and-mortar)

Next up on how to start a travel agency: creating a website and choosing an office location. 

In today’s world, websites are essential, and it’s not enough to “set it and forget it.” You’ll either need to hire a dedicated web team or devote a portion of your time to maintenance, functionality and development. It’s also worth mentioning that a barebones website isn’t going to cut it — you’ll need something that explains what your business does and why clients should choose you over your competitors.

Additionally, you’ll need to set up an office and decide whether to operate as an in-person agency, an online agency or somewhere in between. The brick-and-mortar route can be helpful in terms of managing your agency from a centralized point, especially as you grow, but there are many perks to allowing your travel advisors to operate online (see more about how to become a travel agent online ). Your agency won’t be limited to in-person travel consultations, and can therefore work with clients anywhere in the world. 

6. Hire or contract travel advisors, plus support staff

Unless you’re an agency of one, you’ll need to either hire or contract travel advisors along with various support staff. Moreover, you’ll need to decide whether you’ll train advisors in-house or require some sort of prior travel agent school . 

The first part isn’t too difficult — plenty of people have a passion for travel — but the second part can make or break your agency. Quality training will go a long way in ensuring your agency's relevance and success.

7. Adopt travel software platforms used for bookings

The best travel agencies can book hotels and other reservations (learn about the types of bookings Fora Advisors can make ) through their in-house systems. This is a huge technical advantage that boosts efficiency and convenience, which in turn draws top talent. The best travel advisors want to work with agencies that offer great tools.

Unfortunately, developing these systems is no easy feat. You’ll either need to hire a software team or outsource projects to a third party, both of which require massive investments in time and capital.

Or you can become a Fora Advisor and make use of our proprietary booking platform that allows you to book 29,000 hotels worldwide (and counting).

8. Secure supplier relationships and establish perks to make your travel agency appealing to clients

Supplier partnerships are essential to start a travel agency. They are one of the main reasons clients choose an agency to book travel. 

Fora has dozens of global partnerships with hotel brands, experiences, cruise lines and more. And these relationships have played a massive role in our early success. Moreover, through these supplier partnerships, Fora Advisors can offer VIP perks to their clients. 

9. Establish your brand & begin marketing

The last major aspect of learning how to start a travel agency: marketing. What sets your agency apart? You’ll have to answer that question successfully if you want to last beyond the startup phase.

On the other hand, you can join Fora as an independent travel advisor and we’ll teach you how to market your travel business like a pro . Wondering how travel agents get clients ? We'll help you there, too. You’ll still be in charge of virtually every aspect of your business, plus you’ll have access to unwavering technical support, awesome supplier programs, an in-house booking platform… the benefits go on and on. Plus, you don’t have to worry about obtaining travel licenses, office overhead, hiring staff and other tasks that are critical to running an agency.

How to start a travel agency: FAQs

Before we wrap up, here are a few answers to commonly asked questions about how to start a travel agency.

How much does it cost to start a travel agency?

There’s no straightforward answer to this question because it depends on your target market, location (especially if you’re starting up in a big city, where office space is costly) and numerous other factors. 

Ballpark estimates suggest that you’re going to have to spend, at a minimum, several thousand dollars to start your own agency. On the other hand, you can spend a fraction of that, enjoy the perks of an established host agency and start making money right away as a Fora Advisor. 

What are the legal requirements for starting a travel agency?

The legal requirements for starting a travel agency vary by jurisdiction. 

Generally speaking, you’ll need to register your business as you would any business, then check to see if there are additional licenses or certifications both where you’re based and anywhere you hope to book travel to for your clients.

What skills & traits are necessary to run a travel agency?

To start and run a successful travel agency, you’ll need to be very business savvy. There’s no way around it. In today’s economy, it’s also prudent to either possess or have access to a team with excellent technical skills.

Conversely, what does it take to become a travel agent ? To become a Fora Advisor, all you need is a passion for travel.

Starting a travel agency can be risky

Simply put, there’s no guarantee that starting your own travel agency will be successful. The endeavor requires colossal effort and capital. 

On the other hand, becoming an independent travel advisor is a ticket to one of the best jobs in the travel industry . You still get to live out your passion for travel. You still get to be your own boss. And the risks involved are, frankly, negligible compared to the risks involved in starting a travel agency.

Overall, is starting a travel agency from scratch worth it?

This is a question only you can answer. But we will say that becoming an independent travel agent has much less ambiguity around it (and is far more fun, especially at Fora). 

P.S. Check out the myths about becoming a travel advisor .

Does it make more sense to sign with a host agency like Fora?

Absolutely. (What can we say?) There are a lot of reasons to become a Fora travel advisor . But it’s monumentally easier to become an independent travel advisor with Fora than to start your own agency, and this factor is a big one.

Startup costs are minimal

Starting an agency is going to, at a minimum, cost thousands of dollars. Startup costs to become a Fora Advisor are limited to our membership fee, which currently costs $49 monthly or $299 annually.

How much does it cost to become a travel agent ? Our guide spells it out.

You don’t have to worry about as many licenses and fees

Blanket statements about government licenses and fees are dangerous to make, but it’s true that as a Fora Advisor, you’ll have to worry much less about this sort of thing than if you start a travel agency from scratch.

Fora’s licenses allow independent agents to operate as extensions of Fora, thus circumventing most or all (depending on where you live and sell travel) licensing requirements.

You can start making money right away

Seriously. And considering it could be months or years before a new company can turn a profit, this is a massive advantage. 

Our guide to how much travel agents make has specifics, but the average Fora travel advisor salary is nothing to balk at, especially for top performers.

Fora provides all the training & certification you need to be successful

When you learn how to start a travel agency, you’re largely going about it alone. But when you join Fora, we've got your back, providing you with an inclusive, experienced community, travel agent training , travel agent certification and more. 

This training teaches you everything you need to know to become successful as a travel advisor, from simple concepts such as booking commissionable hotels to more advanced subjects like multi-destination itinerary planning.

You’re still in complete control of your business as a travel advisor with Fora

We mean no bookings quotas (unless you join our elite Fora X program), and no set schedules. And you can work from anywhere, so long as you have an internet connection. 

Want a travel side hustle ? No problem. Want to make a full-time career out of selling vacations? Consider it done. 

At Fora, you’re still very much in charge of how and when you sell travel — just as if you started your own travel agency.

Skip learning how to start a travel agency — become a Fora Advisor today

Want to be a successful travel advisor? Don’t worry about learning how to start a travel agency — join one of the best and start selling travel right away. All you have to do is apply to become a Fora Advisor today.

Need more convincing? Check out these additional travel advisor resources :

How to Become a Luxury Travel Agent: the 2023 Guide  

How to Become a Disney Travel Agent  

Why Group Bookings Are Great: Tips from an Expert  

Room Blocks 101: Mastering the Art of Group Bookings  

How Do Travel Agents Get Paid (& Why Fora Does It Differently)  

Book a Cruise With a Virgin Voyages Travel Agent  

How to Be a Successful Travel Advisor: Insider Tips from the Pros

Are you the go-to person for travel tips?

Transform your passion for travel into your dream job. We'll set you up with everything you need to succeed as a travel advisor. From training to top-notch tech, marketing assets, community, commission tracking & payments (and more), we've got you.

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How to Start a Travel Business in 10 Steps

• February 16, 2022

The travel and tourism industry is one of the industries that has a significant impact on the global economy. And even though the pandemic has been harsh , starting a business in this sector can still be a good idea, if done correctly. 

Plus, with new trends emerging due to the pandemic, and as things start going back to normal, travel and tourism are slowly recovering. And while starting any business entails risks, if you’re willing to commit time and effort, starting your own travel business could be the best idea you’ve ever had.

1. Invent Your Brand 

Working on your idea is the first step when starting any business. This will help you invent your brand, with all of its elements. Decide what kind of travel business you want to run, choose a name, create a logo and a slogan. Make sure that they are powerful, so that once your brand is out there it will be easily recognizable. 

2. Work on Your Business Plan

Many decisions and tasks go into creating a business, and from the moment you decide that you are going for it, you should start working on a business plan. This is a dynamic document that describes the business in great detail. It contains an overview of the business, a market analysis, customer analysis, operational plan, marketing plan, financial plan. 

Your travel agency business plan will help you execute every task and strategy more efficiently, make better decisions, and avoid mistakes during the first phases of your project. More than that, once you start working it will help you run your business successfully, and eventually, grow.

3. Choose a Specific Niche

For new travel businesses, it’s a good idea to start with one specific market niche. Instead of offering many services, focus on something specific and excel at it. This means that you won’t have to compete with too many experienced travel agencies and, most importantly, you will be able to provide complete and high-quality service. 

4. Formalize Your Company

To start working you will have to fulfill a series of legal requirements to formalize your company, including registering your company and getting any necessary permits and licenses. The rules and regulations can vary depending on the adventures you want to offer, as well as the region you live in.  

5. Identify Your Potential Clients

Whenever you are communicating something, or in this case trying to sell something, you must know who is interested. Identifying who might be interested in the services or products you are selling, will help you create so-called buyer personas . This, in turn, will help you determine the best ways to reach your target audience, or in other words, develop a winning marketing strategy. Also, it may help you find additional small ways in which you can increase your profit. 

6. Develop an Efficient Financial Plan

Aside from the funds you need for the initial investment, you need to make sure that you are ready to cover any expenses you may have in the first months. Some of the expenses you need to consider include registration fees, tax payments, renting an office, buying furniture, technology, hiring a marketing agency, creating a website, insurance, salaries, taxes, etc. 

7. Find Knowledgeable Employees

Efficient and productive employees are the most important part of any successful business. Make sure that the people you hire are experienced and knowledgeable so that you can rely on them for the tasks you assign to them. Also, once you are sure you have the right people, make sure to do anything in your power to retain them. 

8. Create a Website

It’s almost impossible to run a business without a website today, and most travel agencies operate entirely or at least partially online. People buy everything online these days, and travelers can find anything they are looking for on their devices. To offer a good user experience, and keep visitors interested, your website should be fast, easy to navigate, it should look well and it should be mobile-friendly.

9. Use Social Media

Social media is a great place for reaching your target audience. With a combination of paid ads and valuable content, it can be the ideal channel for promoting your brand and increasing visibility.

10. Offer Interesting Content

Even people who can’t afford to travel want to read about new places. Travel is addictive, and most who have traveled will do it again. This is why offering good content can be so effective when it comes to promoting such businesses. 

Starting a travel business is risky but, if done right, it can be very profitable. These steps can help you make sure that you aren’t missing something important and that you make the right decisions for a strong start. 

Related Topics

• hospitality careers
• setting up a travel business
• travel business
• travel careers
• travel jobs

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Starting a travel planning business: First steps

TOPICS COVERED:

Getting a federal EIN number.

Getting licensed by the state.

Getting a business bank account.

It is highly recommended that every independent travel agent form a small business. The government allows you to do business as a sole proprietor using only your social security number, but if you think that this business will generate decent income, or you would you like it to have some separation legally from your person, then it's recommended you form a Limited Liability Corporation (LLC). If you'd like to explore business type options like Sole Proprietor or LLC , read this informative article here .

It boils down to:

How you are taxed

Your legal liability

Costs of formation

Operational costs

Legal separation from your person means that duties performed in a business capacity by you are actually being done by a business. Therefore, your personal liability (meaning legal risk) is limited. It is pretty easy to get up and running, and I suggest you get this all squared away to your liking before you start as an agent.

When you have a small business, you will have some additional tax requirements and accounting costs. So, I suggest you speak to an accountant , although most people are able to do the first steps on their own.

Keeping it simple as a Sole Proprietor

If you decide you'd rather not form a separate business entity right now, that's fine. You can start as a Sole Proprietorship. There's very little paperwork involved, but if you want to do business as a different name e.g. Jess.Travel then you'll need to get something called a DBA or "doing business as." You can always upgrade to an LLC later on.

Here's a breakdown of all 50 states Sole Proprietorship requirements.

Starting your travel planner business as an LLC

First things first, if you're going the LLC route or going to have employees you need an Employer Identification Number or EIN from the IRS. That starts the whole ball rolling.

Head here to the IRS EIN site and apply online.

You will need to choose your company name. However, this can be a more generic "holding company" kind of name. This is because you can always file a "Doing Business As (dba)" form for additional cost at the state level in the next step, which will allow you to do business as other names. For example, this company's name is actually Jess Dorsey LLC dba Jess.Travel . Do a quick search to make sure no one else has that name. Any duplication might delay the whole process. You may also want to do this on your state's site as in the next step.

Fill out the online form and get your EIN instantly. The cost is free.

On to step 2...

Register with your travel planning business with your state

Next, you'll need to register with your state. There are literally 50 different websites for this, but I'll use Florida as an example, since we're here. Head to your state's Division of Corporations.

For Florida, go to Sunbiz.org .

First, use the "search records" function to search your name and make sure it's not in use.

Click on "Start a business," and fill out the form, following the procedure for LLC.

The cost for this will be around $125 depending on if you want certified copies of paperwork. I've never need the copies for anything before.

Wait to get your document number, and head to step 3.

Get a business bank account for your new travel planning business

Choosing a bank will depend mostly on convenience and proximity to you. You should decide whether you'd like a brick and mortar physical location to go to, or an app based experience. I like it when a bank has a robust app experience, as it just makes life easier. I do have a soft spot for smaller Community Banks or even Credit Unions.

Our choice for banking is Novo Bank . It's an online only bank that has a superb app, and it's very easy to get started with a business bank account.

If you go local, hand them your EIN paperwork and State Document paperwork. Order some checks and get your debit card.

Getting your travel planning business licensed and insured

Congrats, you're almost there. Think of it this way...you did the federal EIN with the IRS, the state incorporating at sunbiz, and now need to register with your county and potentially your city . Often overlooked, the county license is sometimes asked for should you want to hold an event in town at a venue.

The county business license is called a Business Tax Receipt, and it is obtained by the County tax collectors office. Google your county's tax collector, navigate to forms, and search for their Business tax receipt application. It'll look something like this . The county site will probably have info on whether you need a city license.

Success! You're on your way to booking custom travel itineraries for clients. The legal part is out of the way and you're a real business owner. Now is a good time to tell your accountant. We'll cover paying yourself in a future article. Just remember that profits are taxable. You can make quarterly federal tax payments through a system known as EFTPS or you can pay it all at tax time with your return.

Next, you might want to get insurance, and you might need to get your Seller of Travel (SOT) license if you're operating in one of the states that require it, like California, Florida or Iowa. Approval can take weeks, so get on it.

For more information on business structure for personal travel planners head here .

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Start a Travel Agency

Conducting the Symphony of Globe-trotting Adventures

TRAVEL AGENCY

Related business ideas, discover your perfect domain, travel agency mini business plan, business idea: travel agency, expected percent margin:, earnings expectations:, actions to hit those numbers:, strong supplier relations:, marketing and customer acquisition:, customer service excellence:, cost control:, business operations:, not what you had in mind here are more ideas, grab your business website name, step 1: determine if starting a travel agency is the right endeavor, breakdown of startup expenses, breakdown of ongoing expenses, examples of ways to make money, step 2: name the business, step 3: obtain licenses and permits, step 4: find a location, finding a suitable location, step 5: set up a website, hiring a web developer, step 6: market the business, tips for effective marketing, step 7: develop a network of suppliers, building relationships with suppliers, negotiating contracts with suppliers, establishing payment terms with suppliers, step 8: hire employees, finding employees, interviewing employees, making an offer, step 9: maintain financial records, explore more categories, take the next steps.

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How to Start Your Own Business in the Travel Industry

Last Updated: June 10, 2021 Approved

This article was co-authored by Laura Krueger & Michelle Donson . Laura Krueger (right) and Michelle Donson (left) are Travel Specialists and the Founders of LM Media Worldwide, a free service that sources and negotiates contracts for hotel rooms and meeting space needs. With a combined 30 years of experience, they specialize in hospitality sales, contract and rate negotiations, room reservations, and wedding planning. Laura holds a BS in Business Management with High Honors from Rutgers University and has directed several sales teams, negotiated thousands of contracts, and consistently exceeded national sales goals for hotel chains such as Wyndham, Radisson, and Starwood. Michelle holds a BS in Hospitality Management from the University of Delaware and has worked in group sales and banqueting for Marriott and directed several sales teams with InterContinental Hotel Group, Wyndham, and Starwood. Michelle has also earned the prestigious “Salesperson of the Year” award twice consecutively for Wyndham Hotel Group’s national sales team. LM Media Worldwide is trusted by Kleinfeld Hotel Blocks, Marriott, Rosewood Hotels & Resorts, Melia Hotels & Resorts, Gaylord Hotels, Kimpton Hotels & Restaurants, Wyndham Hotel Group, and Mandarin Oriental Hotel Group. wikiHow marks an article as reader-approved once it receives enough positive feedback. This article has 16 testimonials from our readers, earning it our reader-approved status. This article has been viewed 276,669 times.

In the modern marketplace, setting up and running a successful and profitable travel business is a highly challenging task. There are a number of ways to enter the travel industry. If you have a love of travel and are planning to have a career in this industry, investing in your own business is a good option.

Starting a Franchise Travel Agency

• You can search the internet or find books at the local library to help you research the many facets of the travel industry. Additionally, you can directly contact companies in the travel industry, such as cruise ship companies or hotels.

• There are many different travel agency franchises. Make sure you compare them and their requirements to find the right fit for you and your business. There are many websites and books available to help you learn more about and compare the different franchises available.
• Franchises typically require an initial monetary investment to purchase a franchise. This can be as much as tens of thousands of dollars.

• Consider hiring an attorney to review any legal documents included in this process.
• Check with local government agencies for any additional licenses or permits that may be needed.

• A real estate agent or website can help you find the right location. If available in your area, try to find a real estate agent who specializes in commercial property.
• The location you choose should be highly visible and traveled by those customers you wish to target.

• You can find and research professionals, such as accountants, on the internet, in a local phone directory, or through local organizations, such as a chamber of commerce.
• Local staffing agencies or advertisements in local papers can help you find the right employees to make your business a success.

• Consider joining local organizations for business owners, such as a chamber of commerce.
• Compare mass marketing alternatives, including print, radio, and television advertisements, for your target market.
• Include internet and social media marketing in your marketing strategies.
• Build strong relationships with organizations in your industry, such as airlines, cruise ship companies, hotels, and car rental companies. Joint marketing opportunities may be possible.

• You should open business banking accounts and acquire a credit card that can be used to pay all business related expenses.
• Compare local banking institutions and take advantage of any small business incentives available.

• The franchisor will provide all of the guidelines and other operating requirements that you need to follow.
• Remember that the franchisor's success depends on the success of its franchisees. Therefore, they are there to help you succeed.

Starting a Home-based Travel Agency

• You can visit your local government offices to find out more information about these requirements.
• Online research and your local library are other locations to find more information about legal requirements for a small business.

• Contacting other small travel agencies may help you to learn more about the type of agency you want to start.

• You can find help developing business plans online.
• A business consultant can also help you to develop a solid business plan.

• Acquire a credit or debit card to help pay for business expenses as well.

• Dealing with more than one company can give you more to offer your clients, and it could also provide you with additional money.
• Having strong relationships in the industry can also help your marketing efforts.

• Consider partnering with other travel agencies that can serve as your connection between the airlines, cruise lines, and accommodations. With these connections, you can have additional time to make more connections in the industry.

Becoming an Independent Contractor in the Travel Industry

• There are many different host agencies. Make sure you compare them and their requirements to find the right fit for you and your business.
• You can search the internet or find books at the local library to help you research different host agencies in the travel industry.
• Some host agencies require an initial monetary investment to become an independent contractor. However, the cost is typically much less than purchasing a franchise.
• Host agencies handle much of the back office work, such as calculating and paying commissions, providing training, and handling some marketing.
• Licensing and certification are typically handled by the hosting agency, allowing the independent contractor to focus on finding customers and making sales.

• The host agency will provide all of the guidelines and other operating requirements that you need to follow.
• Remember that the host agency's success depends on the success of its independent contractors. Therefore, they are there to help you succeed.

Expert Q&A

• Network with other people in the travel industry to establish strong relationships with your vendors. Thanks Helpful 0 Not Helpful 0
• Contact franchise owners, home-based agents, or independent contractors to get feedback of their first-hand experience in the travel industry. Thanks Helpful 0 Not Helpful 0
• Consider taking a few business courses so you can learn more about how to start and maintain your business more effectively. These courses can be found nationwide at local community colleges and online. Any fees paid to enroll or participate in the course are tax deductible as a business expense. Thanks Helpful 0 Not Helpful 0
• As with any business, it takes time to become profitable. Make sure you are prepared financially until revenue exceeds expenses. Thanks Helpful 12 Not Helpful 0
• Before you start a travel business, research the competitors within your locality. Thanks Helpful 12 Not Helpful 1

Things You'll Need

• Money to Invest
• List of travel franchisers
• Good location

You Might Also Like

• ↑ Laura Krueger & Michelle Donson. Travel Specialists. Expert Interview. 30 September 2020.
• ↑ http://www.entrepreneur.com/article/190464
• ↑ https://hostagencyreviews.com/blog/travel-agency-franchise-or-host-agency
• ↑ https://articles.bplans.com/how-to-start-a-travel-agency/
• ↑ https://www.entrepreneur.com/article/190464
• ↑ https://howtostartanllc.com/business-ideas/travel-agency

About this article

To start a home-based business in the travel industry, decide if you want to earn referral fees from bigger companies, or if you want to book and sell travel packages yourself. Next, write a business plan that provides a solid foundation for your company. Then, start building relationships with vendors to help you negotiate deals for your clients. Finally, implement a marketing strategy using a combination of print and digital advertisements, as well as social media marketing. To learn more about becoming an independent contractor, read on! Did this summary help you? Yes No

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How To Start A Business As A Travel Planner In 2023?

The 21st century is undeniably the century of small businesses. Aspiring and new entrepreneurs look for business ideas that take low start-up costs, offer flexibility in work, and help integrate passion with the profession. As statistics suggest, there are 32.5 million small businesses in the US alone. And a hopping 99. 9% of businesses in the US are small businesses. 

Among all these small businesses travel planner is an exciting option. Especially, if you enjoy the thrill of traveling, you should try to be a travel planner. 

Indeed starting up a business as a travel planner is easy. But success? That is a different story. You need extensive market research, marketing, branding, and an understanding of your target market. 

It is easier said than done. But, if you read and execute what you read, it gets easier. This article will give you an easy guide to becoming a travel planner. So, if you want to give it a shot, let me guide you through a plan. 

Things To Know Before You Start As A Travel Planner

Although you need to be realistic at first, if you are looking for a way to start a travel planning business, there shall be a lot of opportunities waiting for you as a travel planner. The following are the major aspects you need to have:

Be Resourceful

One of the very first things you need to have for yourself is resourcefulness. If you are a travel planner for someone, you need to have enough networks and travel experience yourself. Otherwise, it is next to impossible to plan a trip for someone who is paying you.

Furthermore, you need to have exceptional problem-solving and time-management skills. The experts at Business News Daily recommend –

“ If organization, time management and problem-solving are your top skills, create your own agency. Personal assistants typically arrange travel and accommodations, manage schedules, run errands and coordinate with other staff members .”

You Need To Be Passionate About Your Business

Apart from that, you must also be passionate about your work. If you are not passionate about travel planning, there is no way you can plan trips for others for hours and hours. You will have to ensure that you do not face burnout issues. You can also get a certification from an official source, and it will enhance your business’ genuineness in the market.

Be A Good Communicator

In addition to that, you also need to be an excellent communicator – both verbally and non-verbally. With the age of the internet, people are looking for ways to learn more through online modes rather than in-person. Hence, you will need to communicate online what you are all about. You have to promote your skills and experience through blogs and videos.

Have A Social Media Presence

Social media presence is also one of the most important areas you will need to care about if you are opening your travel planning business as a travel planner. You will have to promote your business on social media as well. You can also use creative ways of promoting your business so that people get attracted faster to your work.

Be Honest With Your Promotion And Advice

Another important factor is staying honest with your target audience. If you want more number of people coming to you for travel planning, you will need to be honest and helpful with your advice. This will actually help you convert your targets into leads.

10 Easy Steps To Start A Business As A Travel Planner 

Here are some simple steps for starting your business as a travel planner. 

Conduct A Through Market Research 

Although many businesses leave it out or leave it for later, doing market research should come first. The competition is outstanding in the travel agency business. So, it would help if you did extensive research on the market you are hoping to target. You will understand the needs of your potential and can estimate the potential of your ROI. 

Find Your Travel Niche

Although a more generalized way of doing business offers a vast market to target your audience; but, niche helps you expertise a particular side that helps you nurture your business. In the current world, a niche is the foundation of a strong business. If you build up your niche as a travel planner, you will have quality prospects and high-paying customers. They will help you build your foundation as a travel planner and expand your network. 

Choose A Name For Your Travel Agency

Whatever business you start, it is crucial to have a name ready. As a travel vendor or travel vendor, you will need a name for your business. Before you start selling your services as a travel planner, make sure that you have a name for the business. If you want to start a personal travel planning service, choose something catchy for a name that attracts your target. 

Choose A Business Structure For Your Travel Agency 

Who will be responsible for any liabilities of the business? Choosing a business structure can help mitigate the risks of ownership, partnership, and liabilities. Most small business entrepreneurs either choose proprietorship or limited liability corporation structure ( LLC). You can protect your business model and your budget if you have a business structure. 

Write Down A Business Plan As A Travel Planner

Since it is a small business you might think that there is no reason for planning. Of course, you can leave it to your sharp memory, but it is better to be more sure. If you have a business plan, it will help you move forward according to your goal and improvise as you move forward. Also, having a business plan will give you the space to branch out new ideas at every step of the process. So, it is mandatory to have a business plan for your travel planning agency. 

Register As A Travel Planner

Once you are done with the structure, you should legitimize your business by registering it. You can register your business through Small Business Administration or (SBA). From SBA, you will get the steps to register your business. Then you can move forward to establishing a bank account. 

Get An FEIN 

You can keep it as an optional part. But a Financial Employer ID Number will help you when you start hiring employees to work in your travel planning agency. This does not take so much time, and a FEIN is easy to acquire. It will take only a few minutes.

Get A Business Account 

Whether doing business as a travel planner or any other business, you need to ready your business financials. Attaching your business’s financials with your personal will mix things up. Even though you have set up your business as an LLC , I recommend that you create a separate business bank account. 

Choose Between Travel Franchise, Host Agency, And Own Accreditation

The choices are many when starting your business as a travel planner. Many questions arise regarding these multiple ways. For instance, do you have a personal vendor relationship? Or do you want to partner with a host agency under Your personal brand to take advantage of the aggregate sales volume they have? You can choose from these options.

Frequently Asked Questions

Here are some popularly asked questions about the same topic. If you are starting a business as a travel planner, reading them will help you. 

Here is how you can find more travel clients – 1. Build yourself as a travel agent.  2. Reward referrals.  3. Don’t say no to complicated trips.  4. Stay active on social media.  5. Be consistent on all online platforms.  6. Continue your learning on travel.  7. Get help for lead generation.

Travel consultancy is one of the most lucrative career opportunities. At the low end, you can earn around $50K to $100k per annum. But, the best travel consultants earn around $250K per annum.

Here are some of the best travel planning websites – 1. Rome2rio.  2. Roadtrippers.  3. Itineree.  4. Tripit.  5. Tripify. 6. Trip Bucket. 7. TripHobo. 8. Pebblar. 

Bottom Line

There are risks involved in every business. Whether you are starting as a travel planner or other business, you should be aware of the risks and rewards. So, I suggest you be aware of all the ends before starting your business. Marketing is one part of the business that you need to do very smartly and diligently. It will help you with more lead generation and help increase revenue . 

Starting a travel planning agency will not be hard if you follow the steps mentioned here. However, if you have any further queries, you can ask questions in the comment. I will answer them as soon as possible.

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Should I Use a Travel Agent? Our Travel Expert Says It Makes All the Difference.

The new age of travel agents know how to find deals, book off-the-beaten path adventures, and get you out of any jam. Especially if you know who to use.

Heading out the door? Read this article on the Outside app available now on iOS devices for members! >","name":"in-content-cta","type":"link"}}'>Download the app .

I’ve always thought that planning my own trips was the most cost-effective way, but I’ve been hearing more about travel agents making a comeback and saving their clients a lot of money. What kinds of outdoor trips should I turn to a travel agent for, and are there any who specialize in working with adventurers like me?

Technically, I’m a professional traveler. As a journalist, it’s my job to research and connect with locals to get beneath the surface of a destination. So I have never really used travel agents. What could they plan better than I could?

A lot, it turns out. Over the years, I’ve gotten to know many travel specialists, and I consider them magicians. My big aha moment happened two winters ago on a trip to Iceland . A massive storm shut down internal flights for a day, causing me to miss my return flight to the U.S. Normally, I would have spent frustrating hours on hold with the airline. But because I’d paid $65 to have Ana Gloria Garcia, an air-support specialist at the travel agency EmbarkBeyond, find and book the most affordable and convenient flight option for me, she handled the rebookings while I soaked in the Blue Lagoon.

During the pandemic, agents became advocates helping travelers get refunds on canceled flights and trips. As travel has come roaring back, an agent’s superpower is now their access to the best hotel rooms, most in-the-know guides, free amenities, and more, says Cory Hagopian, senior vice president of sales and partnerships for Virtuoso , a global network of travel agencies.

And they’re attracting a young clientele. According to a recent industry survey , 38 percent of millennials and Gen Zers are opting to use travel agents as opposed to booking on their own trips. That number is far greater than Gen Xers and baby boomers, of whom only 12 and 2 percent respectively use agents.

What Do I Gain from Using a Travel Agent?

I recently had a friend tell me she spent close to 40 hours researching a family trip online. She probably could have gleaned the same intel from an hourlong conversation with a travel adviser. Knowledge is priceless, and advisers act as your insiders. They know what you don’t and fill in the blanks for things you might not have considered, says Erika Richter, a spokesperson for the American Society of Travel Advisors (ASTA). Their firsthand knowledge, vast network, and on-the-ground connections all combine to provide a unique perspective for crafting the perfect itinerary for you.

Most travel advisers specialize in certain regions and countries and travel to them frequently, so they have up-to-date intel on not only the best safari camps but the perfect tent to book for the most incredible views and the best local restaurants you won’t find on Tripadvisor. They want their client’s trips to go well to keep them coming back, so it’s in their interest to have sussed out hotels and itineraries before they send you out into the world.

Nicole Forster, 29, considers herself a savvy traveler. She’s been to 20-plus countries and enjoys destination research. But when it came to planning her honeymoon in Africa, she felt overwhelmed, so she reached out to Danielle Meyer at Coastline Travel Advisors , which specializes in bespoke itineraries. “Originally, I wanted to go to South Africa, Victoria Falls, and Madagascar,” Forster recalls. “Danielle convinced me that if we wanted to relax, we should stay in South Africa and save the other countries for separate trips.”

Over five phone conversations and multiple emails, they crafted a 15-night itinerary that included Cape Town, the winelands, the Cape Peninsula, and a safari at the Thornybush Game Reserve. Forster established her budget early in the process, and Meyer sent her a variety of lodge options to choose from.

“I initially wanted to start with the safari, but she pointed out that we’d be jet-lagged and would need to wake at sunrise for game drives,” says Forster. “The safari was our highlight, so it was a perfect way to end the trip.”

Not only did Meyer book all of the flights, hotels, and transfers, but she created a detailed, day-by-day trip app for the couple that included useful information like check-in times at hotels and how much to tip guides .

Agents also act as advocates. If something goes wrong during your travels, they’re on call 24/7 to handle it. When Forster left the battery and charger for her camera at a hotel, Meyer arranged for an on-the-ground contact to go to a camera store and buy new ones that would be delivered to her hotel the next day.

The cost for the honeymoon planning: $150 per person. “I wouldn’t use a planner for a trip to Hawaii ,” Forster says, “but if I ever took a big trip like this again, I’d 100 percent work with an expert.”  

When to Consider Using a Travel Agent

For savvy trip planners, the best time to use a travel agent is for complicated international travel. It can save you hours of planning and peace of mind that if anything goes wrong in your chosen far-flung destination, there’s someone a What’sApp message away to handle it.

Domestically, I’d consider using a travel agent when planning a multi-week national park trip or multi-island trip in Hawaii. They will save you time, guarantee you get the best guides, and help you land reservations at always-booked lodges and hotels.

Dream Trips Delivered

Jessica Cook and her husband both work in the travel industry. Decision fatigued, they handed their honeymoon logistics over to the team at Askari Travel , an agency that specializes in South Africa. Their original plan was also an African safari, but just as they were about to put a deposit down, the Omicron variant of the coronavirus made headlines. Worried about getting stuck abroad, they reached out to Askari’s founder, Muriel Truter, who is from Zimbabwe, and upon her advice, changed their focus to South America.

Knowledge is priceless, and advisers act as your insiders. They know what you don’t and fill in the blanks of things you might not even have considered.

Truter suggested they stick to Colombia rather than country-hop. Cook supplied a budget and a wish list: 12 days, no more than three destinations, a barefoot-luxe feel, and adventures like horseback riding and mountain biking. The rest was a surprise that Askari pretty much nailed, with the exception of one hotel.

“Everything felt so authentic, but this one hotel on Barú island felt really fabricated and was full of American tourists,” recalls Cook. She immediately messaged the Askari team, saying, “Hey, this place really isn’t our vibe,” and within an hour they were on a water taxi headed to Blue Apple, a B Corp hotel—and an Outside pick for tropical adventures —on Tierra Bomba island. “It was honestly the best trip we’ve ever taken,” she says.

Are Travel Agents Expensive?

It depends. Cost varies. Some travel agencies won’t charge any fee, as they receive a commission from the bookings, while some high-end agencies will charge pricey annual membership fees for their services. Still others charge nominal “professional” fees starting at $150. Fees often fluctuate based on the length and intricacy of a trip and how far out you do the planning (6 to 12 months is recommended). You may occasionally come across agents who charge a percentage of the total trip price or hourly rates.

Basic travel enquiries are generally free. In 2016, Leah Smith, founder of Tafari Travel , opened an old-school brick-and-mortar location in Denver’s Cherry Creek neighborhood so her services would feel less intimidating to first-time users. “With our retail-office location, we’ve become part of the community, and both clients and non-clients are welcome to pop in and ask whatever questions they may have, no charge,” she says.

Matt Lindsay, founder of the surf-guiding and travel company LuxSurf Travel , builds relationships with resorts and property owners to get discounted rates that he can then pass on to guests.

Dominic Allan, the founder of Real Latin America , specializes in travel to Belize and Nicaragua and caters to independent travelers who are happy to book their own flights and hotels but are seeking his local intel. Allan’s three-tier pricing structure starts at $300 for up to three hours of phone calls, during which he might weigh in on where to eat (or not to), the best room to request in a certain lodge, or whether you really need a guide to hike.

Value Versus Savings

If you’re just looking for deals and steals, you might not be ready to work with a travel adviser, says Richter of the ASTA. “Anything you invest in with a travel adviser comes back to you in the form of amenities, customer service, peace of mind, better access to unique experiences, and handcrafted itineraries,” she says. “You could save money by cutting your own hair, too, but most people go to someone who knows what they’re doing.”

Agents work with preferred partners who can guarantee perks for clients, such as free upgrades, early check-in or late check-out, and resort credits. Those add-ons often translate into savings, says Justin Huxter, cofounder of the UK-based Cartology Travel . “We had a client go to Maui for a week, and because of our partnership with the resort, breakfast was included,” he says. When breakfast costs $120 for two, that’s a savings of $840.”

Some of the Best Travel Agents in the Adventure World

Some of my go-to resources for finding a person to work with include travel expert Wendy Perrin’s annual Wow List of tried and trusted agents, the Adventure Travel Trade Association’s adviser network , and the ASTA’s advisor directory .

In addition to the agents mentioned throughout this story, others I highly recommend for adventurous travelers include:

• Dan Achber of Trufflepig , for Africa and the Middle East
• Miguel Cunant of Sri Lanka in Style
• Javier Echecopar of Journey Costa Rica
• Daniel Fraser of Smiling Albino , for Southeast Asia
• Elizabeth Gordon of Extraordinary Journeys , for Africa
• Kleon Howe of the Art of Travel , for French Polynesia
• Jay Johnson of Coastline Travel , for Hawaii and California
• Antonello Losito of Southern Visions Travel , for Puglia, Italy
• Rabia Malik of Fora Travel , for general worldwide travel
• Robyn Mark of Mayamaya Travel , for Africa, the Alps, Patagonia, and Japan
• Marisol Mosquera of Aracari , for Peru and Bolivia
• Zach Rabinor of Journey Mexico
• Raluca Spiac of Beyond Dracula , for Romania

Travel-advice columnist Jen Murphy is now a believer in using a travel agent. Thanks to their expertise and connections, she’s avoided dozens of trip catastrophes. 

• South Africa

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