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Travel Agency

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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 March 13, 2024

How to Start a Travel Agency

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 .

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/ ))

travel agency industry size and growth

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

travel agency industry Trends and Challenges

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 ))

travel agency industry demographics

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.

travel agency business earnings forecast

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

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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.

a travel agent wants to own her own business

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

travel agency business idea rating

Step 3: Brainstorm a Travel Agency Name

Your business name is your business identity, so choose one that encapsulates your objectives, services, and mission in just a few words. You probably want a name that’s short and easy to remember, since much of your business, and your initial business in particular, will come from word-of-mouth referrals.

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”
  • Avoid location-based names that might hinder future expansion
  • Use online tools like the Step by Step business name generator . Just type in a few keywords and hit “generate” and you’ll have dozens of suggestions at your fingertips.

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

Every business needs a plan. This will function as a guidebook to take your startup through the launch process and maintain focus on your key goals. A business plan also enables potential partners and investors to better understand your company and its vision:

  • 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.

what to include in a 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.

types of business structures

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 2023

a travel agent wants to own her own business

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.

a travel agent wants to own her own business

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.

types of business funding

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!

unique selling proposition

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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WorldVia Travel Quest Network

Business Structure 101 for Independent Travel Agents and Entrepreneurs

As a new entrepreneur and independent travel agent, you need to register your business. However, before you get started, you have to figure out how you want to structure it. There are many different options so it can be hard to figure out what is best for you and your business.

Different Ways to Structure Your Business

Before you register your business, you need to decide what type of business you are going to have. Your options include:

Sole proprietor

Corporation

Partnership

Limited liability company, otherwise known as an LLC

So, how can you choose? It is going to depend on the type of business you have, as well as your assets and the liability risk that you face.

Reasons to start a sole proprietorship

Here are some reasons why you may want to start a sole proprietorship:

Easy to get started. Starting a sole proprietorship is really easy. You can use your own name and Social Security number to get started. You can use this information to get the permits and licenses that you need to start your business.

You alone are in charge of your business. When you are a sole proprietor, you can decide how you want to run your business. You can choose the jobs that you want to take and pass on the ones that aren't going to be worth it.

And you get the income that comes with it. When you are a sole proprietor, you get all of the income that you make (after paying taxes). You don't have to split your income with anyone else. 

Reasons to start a corporation

Here are some reasons why you may want to start a corporation:

Credibility. As soon as your business becomes a corporation, you gain credibility. People are more likely to work with businesses that are a corporation than those that are not.

Best way to get financing. If you are going to need help financing your business, you may need to start a corporation. You can sell non-voting shares, which allows you to raise money, without giving over control to everyone who helps you. You also can sell stock to help raise money when needed.

Have different types of owners. When you start a corporation, you can have silent partners, who will help with financing (and get a part of the profit), as well as partners who can help you run your business.  

Ability to offer benefits for employees. Corporations are able to offer benefits for their employees, such as health insurance, and deduct it as an expense. LLCs and other businesses aren't able to do so.  

Reasons to start a partnership

Here are some reasons why you may want to start a partnership:

Started privately, between partners. It is easy to set up a partnership because it is formed with an agreement between the partners. You won't have to register your business partnership with the state.

The partnership is not taxed. Instead, partners are taxed individually on their personal tax returns, depending on their actual profits and losses that they occur from the business. You won't be required to create a tax return for the business.

Easy to end the partnership. Just like it is easy to get started, it is easy to dissolve a partnership. As long as one partner is ready to stop, the partnership can change or dissolve, depending on what everyone wants.

Reasons to start an LLC

Here are some reasons why you may want to start a limited liability corporation:

Cheaper than forming a corporation. It is much cheaper to start an LLC than a corporation and it still gives you plenty of the same benefits.

Liability protection. If you have a business that has plenty of risk, you may want to start an LLC in order to protect your personal assets. You won't be held liable for any debts and losses that your company incurs.

You are still in control of your business. You are able to control your business, the way that you want while protecting yourself legally.

More official. Many believe that having an LLC behind your business name can make your business seem more official. People may be more likely to work with you because your business looks more legitimate or serious.

 So, How Do You Decide Which Will Work Best for Your Business?

The best way to decide how to structure your business is to talk to a professional. An accountant will be able to discuss your business ideas so that you can see what your different options are. They will help you figure out what will work best so that you know you are doing it correctly.

Your tax professional will also be able to help you throughout the entire process of registering your business so that it is protected fully.

How to Register Your Business

a travel agent wants to own her own business

Once you decide how you want to register your business, it is time to do so. Here are some tips to help you get started.

Register your business name. If you aren't operating under your own name (and using your Social Security number), you are going to need to file a DBA. This stands for doing business as.

Then, you need to register with the IRS. You will receive an Employer Identification Number (EIN), which you will use like a Social Security number for your business. You need it in order to file your taxes for your business.

After that is done, you will need to register your business with the state and local agencies.

Make sure that you have the necessary licenses and permits that you will need. The U.S. Small Business Administration has a website so you can easily find out what permits and licenses that you may need.

Once you have gone through all of the steps above, it is time to get started! You can open your doors and start making money. You are on your way to running a successful business and working for yourself. If you’ve already been working as a solopreneur for a while, it’s never too late to meet with a tax professional and decide how to register your business.

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THE JOURNAL

Travel Advisor Resources

How to Start a Travel Agency (& Why It’s Not Your Best Option)

Fora Author Fora Travel

The Modern Travel Agency

Fora Travel

https://www.foratravel.com/the-journal/how-to-start-a-travel-agency

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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?

Prominently featured at dusk: an infinity pool at a luxury beach resort

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

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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

Rows of historic structures stand above a filled beach along the face of a cliff in Positano, Italy

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…)

The unique architecture style of Pena Palace is on full display, with a castle turret standing imposingly above red and yellow stone walls and features

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

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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?

A young woman in a bikini stares out at the ocean from a sapphire-blue-water infinity pool

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?

The lobby of Grand Hotel Kronenhof in Switzerland, with traditional Old World decor and an overall ritzy vibe

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

In the foreground: travelers lay out on a clearwater beach. In the distance: catamarans anchor off the shoreline

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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Starting a Travel Business: How to Become a Travel Agent

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Briana Morgaine

18 min. read

Updated November 13, 2023

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 Lean 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.

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.

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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. Or, you can turn to LivePlan , which will help you simplify the planning process and give you options.

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
  • 4 Reasons to Brand Your Business
  • Want Customer Loyalty? Build Your 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:

  • Do You Need a Travel Agent License?
  • 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
  • Angel Investment Guide
  • 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
  • 13 Tips for Hiring 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
  • Use These 16 Sites to Create Winning Marketing Materials
  • Help! My Business Needs a Marketing Plan and I Don’t Know Where to Start
  • 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. 

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Content Author: Briana Morgaine

Table of Contents

  • Business plan template and travel agency resources 

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

Nick

By Nick Cotter Updated Feb 02, 2024

image of a travel agency business

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.

image of a travel agency business

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.

image of ZenBusiness logo

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.
  • EXPLORE Random Article

How to Start Your Own Travel Agency

Last Updated: March 22, 2023 References

This article was co-authored by Laura Krueger & Michelle Donson and by wikiHow staff writer, Christopher M. Osborne, PhD . 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. There are 10 references cited in this article, which can be found at the bottom of the page. This article has been viewed 3,358 times.

While the role of travel agents and travel agencies has changed greatly in the internet age, it’s still possible—if surely challenging—to start your own travel agency and succeed. To have a real chance at success, build up your knowledge about the travel industry and make connections with businesses, organizations, and individuals within it. At the same time, take all the measures necessary—such as creating a business plan—in order to start a small business. Then, identify and cater your business towards your likely client base—and do everything you can to make them happy travelers!

Building Your Expertise and Focus

Step 1 Build your knowledge of and experience in the travel industry.

  • Learn broadly about different aspects of the travel industry, such as air travel, rail travel, cruises, hotels, resorts, tours, and so on. At the same time, build your expertise within particular elements of the industry—such as becoming an expert on a popular vacation locale (for instance, France) or type (for example, rail excursions).

Step 2 Determine the type of travel agency you’d like to operate.

  • Operate a travel agency from home.
  • Operate as a franchisee for an existing travel industry conglomerate.
  • Build connections with major players in the travel industry but remain an independent agent.

Step 3 Investigate whether it’s realistic to seek out commissions.

  • High-end resorts and cruise lines are more likely to pay commissions these days. So, if you focus you agency on luxury resorts, it may be possible to earn significant commissions.
  • Most travel agents now make their money from fees charged to clients for the services they provide, rather than commissions paid by airlines and the like.

Step 4 Contact large travel industry organizations about referral benefits.

  • It may help you draw in customers if you’re able to offer package deals from a wide range of well-known travel businesses.
  • However, you may also be required to work exclusively with one organization, so weigh your options and get clarification on the finer details.

Step 5 Become an active member of professional organizations in the field.

  • In the U.S., examples of relevant professional organizations include the American Society of Travel Agents (ASTA), [5] X Research source the National Association of Commissioned Travel Agents (NACTA), [6] X Research source and the International Air Transport Association (IATA). [7] X Research source
  • Professional organizations often offer educational opportunities such as webinars, online forums, and refresher courses.
  • They also usually include online databases that may make your name more visible to potential customers.

Starting a Small Business

Step 1 Check the laws surrounding starting a business where you live.

  • If you’re unfamiliar with the process of starting a small business, consider hiring an attorney who specializes in this field. Also consult any small business association that operates where you live, such as the SBA in the U.S.

Step 2 Develop a list of your start-up needs and estimated costs.

  • This information will make up an important component of the business plan you’ll need to create.

Step 3 Project your anticipated cash flow for at least your first year in operation.

  • Realistic cash flow calculations also serve as a “reality check” as to whether your business has the potential to succeed. Now is the time to make changes to your business strategy, rather than waiting for your business to struggle mightily.

Step 4 Write a business...

  • A typical business plan includes an executive summary, general company description, products and services description, marketing plan, operational plan, organizational structure description, and financial plan.

Step 5 Scout out suitable locations for your office.

  • Consider working with a commercial real estate agent who can help you find the ideal office space that’s within your price range.

Connecting with Customers

Step 1 Identify your target client base and focus your business on it.

  • Demographic data may be available from government agencies in your area, while travel industry and small business organizations may have access to useful data as well. You might also consider hiring a consulting firm to help you identify your target client base.
  • If your target client base is senior citizens traveling to Europe on group tours, for instance, you’ll probably want a different marketing strategy than if you’re targeting college-age travellers heading to beach resorts.

Step 2 Create a business website that is suited to your target client base.

  • If you aren’t confident in your ability to build a great business website, hire professionals to do the job for you.

Step 3 Build a marketing strategy that aligns with your website and target clientele.

  • Depending on your local market and target client base, your advertising may focus on social media, TV or radio, print media, or a combination of several options. Don’t overlook the exposure benefits of joining a local chamber of commerce or business organization.
  • Once again, hiring professionals—in this case marketing consultants and/or an advertising agency—may prove to be a worthwhile investment.

Step 4 Build professional relationships with clients rather than just selling to them.

  • Listen to your customers instead of just pushing particular travel deals on them. Return their calls and emails promptly. Work hard to rectify issues as they arise. Give your clients a reason to come back to you next time they plan to travel, and to tell their friends to do the same!
  • As a salesperson, your job isn’t to convince the customer to buy something they don’t want. Instead, it’s to help them to realize that you’re offering something that they do want.

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Embarking on Your Travel Agent Business Journey

Starting a Travel Agents business is an exhilarating journey filled with opportunities for those passionate about exploring and sharing the beauty of the world. The initial step requires a deep understanding of the travel industry, including current trends and customer preferences. Crafting a unique value proposition is crucial; it sets you apart in a sea of competitors. Networking with suppliers and destinations enhances your offerings, while stellar customer service ensures repeat clients. Leveraging technology effectively streamlines operations, making every trip planning seamless. Above all, an unyielding passion for travel and helping others discover new experiences is the core of your success.

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Identifying Your Niche: The First Step

The travel industry is vast, and starting your own travel agency can seem like navigating through a maze. The first challenge most entrepreneurs face is choosing a specific niche. It's crucial because it determines the direction of your marketing efforts, the type of clients you'll attract, and ultimately, the success of your business. Focusing on a niche helps you stand out in a crowded market. Whether it's luxury travel, eco-tourism, or adventure trips, defining your specialty early on is key.

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Understanding the Market Demand

Once you've pinpointed your niche, the next hurdle is understanding market demand. This involves conducting thorough market research to identify your potential customers and their preferences. It's about knowing what makes them tick, their spending habits, and how they prefer to book their travels. In today's digital age, trends shift rapidly, and staying abreast of these changes can dictate how well you connect with your target audience. Essentially, grasping market demand shapes your services to meet customer needs effectively.

Building Your Brand from Scratch

Creating a brand that resonates with your target demographic is another significant challenge. Your brand encompasses everything from your logo and website design to the tone of voice in your communications. It's about creating an identity that reflects the values and expectations of your audience. Remember, in the digital world, first impressions are vital. A strong, appealing brand can make all the difference in attracting and retaining customers.

white concrete house surrounded by trees

Navigating Legal Requirements

Another critical step when figuring out how to start is understanding the legal requirements. Each country has its regulations regarding travel agencies, including licenses needed to operate legally. Ensuring compliance not only safeguards your business against legal issues but also builds trust with your clients. It shows that you're committed to professional standards and quality service. As daunting as it may seem, getting this right from the outset is essential for long-term success.

Investing in Marketing Strategies

In today's digital world, having robust online marketing strategies is non-negotiable for any business, especially travel agencies. From social media campaigns to search engine optimization (SEO), these tools are indispensable for reaching your audience where they spend most of their time--online. However, crafting effective marketing campaigns that resonate with your target demographic requires insight and creativity. It's about storytelling, making people dream about destinations, and showing them how you can turn those dreams into reality. Investing time and resources into these strategies pays off by significantly increasing visibility and bookings.

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The Importance of Exceptional Customer Service

The backbone of any successful travel agency is exceptional customer service. In an era where reviews can make or break businesses, ensuring every client has a positive experience is paramount. This means being responsive, providing personalized travel recommendations, and going above and beyond to meet client needs. Remember, happy customers are not just repeat clients; they're also invaluable sources of referrals. Fostering strong relationships with clients will set you apart from competitors.

Leveraging Technology for Efficiency

To stay competitive in today's fast-paced market, embracing technology is crucial for efficiency and growth. Utilizing booking software, CRM platforms, and other tech tools streamlines operations allowing you to focus more on client interactions rather than administrative tasks. Moreover, technology enables you to offer innovative services like virtual tours or AI-based personalized trip planning--enhancements that modern travelers appreciate. Ultimately, leveraging technology not only improves operational efficiency but also elevates the customer experience.

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Crafting Compelling Visual Content with Desygner

In any business today but especially in travel, visual content speaks volumes. That's where Desygner comes in--an intuitive design tool perfect for creating captivating graphics that capture the essence of destinations offered by your agency. Whether it's promotional materials or social media posts, Desygner provides a user-friendly platform for crafting visuals that tell compelling stories about your travel packages. High-quality images and videos are instrumental in drawing attention and sparking interest among potential customers--the kind of engagement necessary for building a thriving travel agency.

## The Importance of "How to Start" for Travel AgentsIn the vibrant and ever-evolving tourism industry, mastering the art of beginning your journey as a travel agent is nothing short of essential. The initial steps you take not only lay down the foundation for your business but also set the trajectory for its future growth and success. Let's delve into why "how to start" is significantly crucial for a Travel Agent's business and the remarkable difference it can make.### Laying a Robust FoundationEmbarking on the path with a well-thought-out plan acts as the keystone for laying a robust foundation for your business. It involves understanding your niche, identifying your target audience, and setting clear, achievable goals. A sound beginning ensures that you're not just another travel agency but a brand with a unique value proposition. This meticulous approach in the early stages defines your journey towards becoming an industry leader.### Building Credibility and TrustStarting correctly helps in building credibility and trust among your clients from day one. When customers see that you are well-organized, knowledgeable, and committed to providing exceptional service, they are more likely to trust you with their travel plans. This trust is the cornerstone of customer loyalty, which is invaluable in an industry as competitive as travel and tourism.### Optimizing Operational EfficiencyA strategic start is synonymous with optimizing operational efficiency. By streamlining processes, leveraging the right technology, and implementing effective marketing strategies right from the beginning, you're setting up your business to run like a well-oiled machine. This efficiency not only enhances customer satisfaction but also contributes to reducing overhead costs, thus maximizing profitability.### Fostering InnovationWhen you start on the right foot, staying ahead of the curve by fostering innovation becomes part of your business's DNA. In an era where travelers seek unique and personalized experiences, being innovative allows you to cater to these changing demands effectively. It opens up opportunities to explore untapped markets and create distinctive offerings that set you apart from competitors.### Accelerating GrowthLast but certainly not least, starting correctly accelerates growth. With a clear vision, precise goals, and effective strategies in place from the outset, scaling your business becomes a smoother process. You can swiftly adapt to market changes, overcome challenges, and seize opportunities that contribute to accelerated growth and expansion.In conclusion, "how to start" is not just about taking the first step; it's about making that first step in the right direction with clarity, purpose, and strategy. For travel agents looking to carve out their success stories in this bustling industry, focusing on starting correctly can lead to unparalleled outcomes--transforming aspirations into tangible achievements. The difference between starting haphazardly and starting wisely can be likened to embarking on a journey with a compass versus wandering aimlessly; one leads you to your destination efficiently while ensuring an enriching experience throughout.

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Concluding Insights on Launching Your Travel Agent Business

Starting your travel agent business is a journey that requires meticulous planning, passion, and perseverance. As we've navigated through the essentials of setting up, marketing, and expanding your venture, it's clear that the path ahead, while challenging, is also filled with immense potential for success. Remember, each step you take in this entrepreneurial journey contributes to building a brand that stands out in the crowded travel industry.

Beyond the foundational steps, leveraging technology and innovative tools is crucial for staying competitive and providing unparalleled service to your clientele. In today's digital age, embracing software solutions not only streamlines operations but also enhances customer experiences, making your services more appealing to a broader audience.

To ensure your business thrives, consider these key takeaways:

  • Consistently research and understand your target market's preferences.
  • Build strong relationships with suppliers and partners.
  • Invest in a robust online presence through an attractive website and active social media channels.
  • Focus on specialized niches to differentiate your offerings.
  • Optimize your business operations with state-of-the-art software tools.
  • Prioritize exceptional customer service to foster loyalty and referrals.
  • Stay updated with travel trends and regulations.
  • Leverage Desygner for creating stunning marketing materials with ease.

In conclusion, starting a travel agent business is an exciting opportunity that demands dedication and strategic execution. The journey might be complex, but the rewards of building a successful agency are unparalleled. Equip yourself with the right tools like Desygner, stay focused on your goals, and remember to always put the traveler's experience first. Embark on this adventure with confidence and creativity--your dream travel agency awaits its takeoff. Sign up at Desygner today to begin crafting compelling visuals for your brand's bright future.

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How to Start a Travel Agency in 14 Steps (In-Depth Guide)

Updated:   February 14, 2024

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The U.S. travel and tourism industry saw a big loss at the height of COVID-19. According to Statistica , the travel agency market saw a whopping loss of $16 billion in 2020. With domestic flights in full swing and international borders opening again, the industry is rebounding.

Globally, the travel market is expected to grow with a CAGR of 13.86% from 2022 to 2026. This offers hope to newcomers looking to get a foot in the door. If you’re wondering how to start a travel agency, now might be the time to make your move. 

a travel agent wants to own her own business

Throughout this guide, we’ll discuss the basics of how to start a travel agency. From market research and competitive analysis to sourcing equipment and designing business cards. Here’s what you need to know to get started with your own travel agency.

1. Conduct Travel Agency Business Market Research

Market research is an essential part of any business plan. There are two main forms of market research to concern yourself with. These are primary and secondary research. 

Primary research is all completed by you. This is first-person knowledge gained by tasks such as:

  • Polling local travelers
  • Chatting with competitors
  • Speaking with hotels and airlines

Anything you do to find information not already available to you is considered primary research. 

Secondary research is gathering data found by others. For example, using information from a government report, statistics website, or travel publication. This research is less time-consuming, as most of the work is done for you. 

Secondary research tends to be less thorough or specific than primary research.

Some of the things you might look into during market research include:

  • Target customer demographics
  • Most traveled destinations
  • Popular modes of transportation
  • International travel requirements
  • Common methods of payment (payment plans, travel reward miles, etc.)

a travel agent wants to own her own business

Using market research you’ll find the right price points and service types to suit your target demographic. For entrepreneurs starting a travel agency, this information is invaluable to the success of your brand. 

Choosing the Right Services for Your Travel Agency Business

Services are one of the first things potential customers look at when considering a new travel agency. Market research and competitor analysis offer insight into popular travel agency services in your area.

Common services for a travel agency include:

  • Railway transport
  • Bus transport
  • Hotels and accommodations
  • Vehicle rentals
  • Travel insurance
  • Tours (groups or private)
  • Travel guide books and maps

Your service offerings could put your travel agency on the map, especially if you offer above and beyond local competitors. A good way to find the right services is to start a social media poll. Ask potential customers what services they prefer in a travel agency. This creates a jumping-off point to build your travel agency business plan.

Offering unique tours can also be highly beneficial. For instance, you could take the tourists to visit the local perfumery, traditional blacksmiths, glass blowers , olive oil factories, and other interesting locations or trades.

2. Analyze the Travel Agency Competition

Knowing your competitors is almost as important as your initial travel agency business plan. Competitors tell you a lot about the market you’re coming into. They’re already established in your field and have a range of services, prices, and customers. 

a travel agent wants to own her own business

It helps to know how saturated the travel industry is. If there are a lot of other travel agents in your area, focusing on your brand will become crucial to your success. Building a brand that stands apart from the competition ensures business despite high market saturation. 

Some ways to analyze the local travel agency competition is:

  • Visit local travel agents
  • Check out competitor websites and social media
  • Read digital reviews and ratings for other agencies
  • Chat with competitor customers

By reviewing competition in the area you can better structure your brand, marketing, and customer outreach. Look at things like services, prices, special offers, and customer outreach efforts.

Travel agents deal with competition on a local and national level. Your agency on the East Coast might sell the same cruise passes as an agency on the West Coast or vice versa. There are also local customers looking for flights and accommodations in and out of your city. 

Some of the major competitors in the U.S. travel agency market to investigate are:

G Adventures

G Adventures is a tour and travel agency offering bucket list vacations in places like Japan, Sri Lanka, and South Africa. The company operates with a small group tour structure. G Adventures has been in business since 1990. 

Butterfield and Robinson

Butterfield and Robinson is a luxury travel agency. They specialize in bespoke travel, self-guided trips, and scheduled group trips. The brand has been in business for more than five decades, opening its doors in 1966.

Expedia Cruises

Expedia is a driving force in the online travel industry. Expedia Cruises is a subset of the Expedia group. They offer franchising opportunities to newcomers, with more than 285 locations already active. The company began in 1987. 

To start your own franchise you’re required to pay a franchise fee of $39,000 with an overall investment of $165,250 to $291,245.

3. Understand the Costs of Starting a Travel Agency

Starting a new business is costly. A travel agency, while requiring somewhat less equipment than other business models, is no different. There are initial startup costs, and ongoing fees to consider as you get the ball rolling. 

Here, we’ll cover some of the fees you’ll encounter as your travel agency gets off the ground.

What Does It Cost to Start a Travel Agency?

The costs to run a travel agency depend on your base of operations, additional office or retail space, commercial vehicle needs, and more. To open your own brand expect to $6,000 to $10,000 plus ongoing costs.

Franchising a travel agency like Expedia can cost up to $291,245 as an overall investment. The high cost of a franchise comes from a longstanding brand name, an existing global client base, and built-in legal and insurance coverage.

You can also gain these advantages through a host agency. Host agencies act as a parent company to smaller travel agencies. Your host agency provides support and larger commissions by taking some of your profit.

Some of the costs you’ll encounter while opening your own travel agency include:

  • Designing a website
  • Buying a domain name
  • Creating a phone app
  • Buying equipment
  • Purchasing marketing materials
  • Paying for legal fees
  • Investing in business insurance
  • Hiring an accountant
  • Paying employee wages
  • Leasing a workspace and office

These costs fluctuate based on location, number of clients, type of equipment (new or used), and other variables. If you choose to drive a commercial vehicle, you’ll pay more for the vehicle and or branding.. 

Business Equipment/Materials

As a travel agency, you’ll need far less equipment than businesses with retail inventory or tools. Aside from marketing materials like flyers, brochures, and catalogs, you’ll need to buy the following to start your business.

  • Computer: $800 to $1,500. Price varies by quality, age, brand, RAM, and operating system.
  • Software: $31 to $345 per month depending on the software brand and package.
  • Fax machine/printer/photocopier: $300 to $900. You’ll pay more for high-end commercial copiers than personal copiers. Choose your machine based on your estimated sales volume.
  • Office furniture: Prices for furnishing depend on staff number and casual furniture in the office for client use. You’ll need at least one computer table or desk, a computer chair, and a chair or couch for clients. As a base range, you’ll likely pay somewhere around $1,000 to $3,000 starting out. 

These materials come from all different suppliers. For computers, look at  Apple  or  Best Buy . Fax machines can also be purchased at Best Buy. Visit  Uline  to get an idea of prices for different office furniture products based on your tastes. 

Cost of Renting or Leasing a Location

Plenty of travel agency businesses can be processed online. There’s something to be said for brick-and-mortar agencies as well.

Commercial properties are leased by the square foot. Most contracts require a minimum of one year. So, if you see one advertised for $20 per square foot and it’s a 1,000-square-foot space, you know it’s $20,000 per year. 

Business Formation

Before you start selling cruises and flights, your agency needs to be registered with the  Small Business Administration . Registering a name and obtaining the proper permits to operate in your state will cost somewhere between $300 to $800.

Business Insurance

All small businesses require business insurance. A travel agent usually requires general liability, professional liability, and professional property insurance. You may also want to invest in loss of income insurance in the event of another situation where travel restrictions impede sales.

Utilities are essential for running a travel agency. You’ll need all the basics like heat, electricity, and water, as well as a business phone line and internet. Utility costs vary by location and use. Most businesses factor about 4% of their budgets for utility expenditures.

What Are the Ongoing Costs of a Travel Agency?

With your equipment and registration costs, you’ll also encounter ongoing costs as a travel agent. These include things such as:

  • Rent and utilities
  • Website maintenance
  • Updated marketing materials
  • Business cards
  • Business banking fees
  • Employee payroll
  • Training costs

If your agency has any retail or promotional inventory, including luggage tags and branded flash drives, you’ll need to restock regularly.

4. Form a Legal Business Entity

As you cross the t’s and dot the i’s of your small businesses, you’ll need to register your company as a legal business entity. There are four main entities to choose from, including Limited Liability Corporations, Partnerships, Sole Proprietorships, and Corporations. 

Unless you’re part of a bigger company within a franchise or host agency, an LLC is usually best. 

Limited Liability Corporation (LLC)

The most common choice for a small business formation is an LLC. This is because it gives you all decision-making power as a business owner while separating professional and personal assets. If something happens to your company and you go bankrupt, lenders can’t touch your personal wealth.

Sole Proprietorship

Sole proprietors are single business owners or married couples who own a business together. All the power of ownership and decision-making rests on the proprietor. The downside to this entity is that, unlike an LLC, all personal assets are tied up in the business.

If a customer misses a flight and loses money because your agency printed the wrong ticket, a lawsuit could leave your personal savings at risk.

Partnership

A partnership is similar to a sole proprietorship. Instead of a single owner, there are multiple. This is often thought of as a good solution for a family-owned business. Again, like a sole proprietorship, your personal assets aren’t protected by your business formation.

Corporation

Corporation entities are strong in the legal department. All your personal and professional assets are kept separate. This is a good option for large businesses or chains.

Corporations, while secure, aren’t a great option for a small business owner. They’re notoriously complex to register, and expensive to maintain. Overall, an LLC is an optimal choice for a local travel agency.

5. Register Your Business for Taxes

Creating a fully legal business in the U.S. has multiple steps. One is obtaining an EIN, or employee identification number. This is often referred to as a federal tax ID because your business requires this number to file taxes.

a travel agent wants to own her own business

Apply for an EIN through the U.S. Small Business Administration . Once you receive your number you can pay employees, file annual tax reports, open a company bank account, and more.

You may also want to take this opportunity to visit the U.S. government website and check on local sales tax in your state.

6. Setup Accounting for Success

Travel agents make a lot of sales. Sometimes those sales are even processed in other countries’ currencies. Tracking all incoming and outgoing funds gets complex. This is where accounting becomes an integral part of your travel agency.

There are many avenues for solid accounting, including:

Accounting Software

Your own travel business software may have some type of accounting tools included. Even so, investing in software designed specifically for accounting is beneficial. Accounting software is designed to tackle daily bookkeeping, record keeping, invoicing, and more. 

We recommend QuickBooks for accounting packages based on your budget, business style, and needs. QuickBooks offers payroll, cashflow management, job costing, bill management, and a variety of other handy features.  

Find an Accountant

QuickBooks and other software help with a lot of the day-to-day accounting processes. At the end of the year, it’s worth having a professional on hand. 

Certified accountants work with businesses across the U.S. to ensure taxes are filed properly. When business taxes get muddled, legal issues arise. This is one area of accounting, you don’t want to see any mistakes.

Accurate tax filing impacts how much you owe or get back from the IRS. It also minimizes the risk of a future audit. 

a travel agent wants to own her own business

Accountant fees vary from firm to firm. You could pay anywhere up to $400 an hour for a good quality professional accountant. In the end, this is well worth the investment. 

Get a Business Bank Account

The IRS recommends opening a business bank account to separate personal and professional finances. While some small businesses don’t think it worthwhile to open a second account, it could help you avoid future fraud implications. 

As mentioned above in the section on business formation. There are certain entities where your personal assets are at risk if a business has financial issues. Maintaining one bank account for all incoming and outgoing funds puts your personal assets at risk simply by combining them with business assets. 

Some other reasons to open a business bank account are:

  • Accurate reporting for tax season
  • Accountability and organization
  • Convenience during business expenditures

A business bank account makes your travel agency seem more professional.

Apply for a Business Credit Card

A business credit card holds much the same value as a business bank account. For cash-back rewards, low APR, and other business-related perks, a business credit card is ideal. 

Be careful spending and paying back a business loan of this kind. The card might be registered to your business, but it can still impact your personal credit score. 

7. Obtain Business Licenses and Permits

There are no federal license or permit requirements for a travel agent in the U.S. unless you are supplying air travel or water travel personally. If you simply direct customers to third-party travel methods, you shouldn’t need additional licensure through the  U.S. Small Business Administration . 

Any business in the U.S. that offers air travel needs to register through the  Federal Aviation Administration . Similarly, any U.S. business offering water travel should check requirements with the  Federal Maritime Commission . 

The  SBA ’s website lets you search for local and state permits by city and zip code.

8. Get Business Insurance

Business insurance keeps you and your company safe. There are many ways to protect yourself, depending on the insurance products you choose. 

Travel agents usually invest in general liability insurance. This covers you against financial repercussions caused by damage to people or property by your business or services.

Commercial property insurance is also an asset. If a customer slips and falls while walking into your agency, commercial property insurance pays for medical or legal expenses as a result of that fall. 

General liability insurance costs $300 up to $1,500 a month for $1 million in protection. Commercial real estate protection costs $1,000 to $3,000 for $1 million in coverage.

9. Create an Office Space

As a travel agent, your retail space might double as an office. Some business owners prefer a separate space to make calls, file paperwork, go over employee information, and other administrative duties.

There are several ways to create an office space. Here are a few options.

Home Office

Home offices come with many incentives, including:

  • No long contracts
  • No rent fees
  • IRS tax deductions

The  IRS  allows home office users to deduct up to $1,500 a year based on a model of $5 per square foot, or individual deductions for things like:

  • Home remodels
  • Mortgage payments
  • Business travel expenses

There are regulations to follow to receive tax deductions. Check the IRS website to ensure you qualify.

CoWorking Office

Coworking office spaces are a modern revelation. They combine all the best parts of commercial office space with the benefits of public workspaces. Coworking offices, like home offices, let you skip lengthy contracts and high rent fees. Instead, you share the space when other coworking office users aren’t there. 

One platform for coworking is WeWork . They offer several packages and office types to suit your budget and workspace needs. Whether you want a private office, a semi-private office, or a shared space with others, WeWork has a selection to choose from in cities across the country.

Commercial Building Office

Commercial offices are pricey and particular in contract type and length. Some commercial locations are designated for particular office types. 

For a small business, a home or coworking space is best if you don’t have a private office in the agency’s retail location. 

10. Source Your Equipment

Giving your customers the best prices on flights, accommodations and tours mean having the best equipment and software. Sourcing equipment is an important part of setting up your travel agency.

There are two ways to obtain the furnishings and equipment you need to start. 

New furniture looks good, smells good, and often comes with benefits like protective treatments and warranties. Similarly, new printers, fax machines, and computers ensure your electronics live long and dutiful lives in your travel agency. 

Apart from the sources mentioned above, you can check Amazon , National Office Furniture , and even Ikea for furniture. 

Buying used furniture and electronics can be risky but cheap. Look at sites like Facebook Marketplace and Craigslist for local listings. Before you buy anything used, check to make sure everything works. For furniture, inspect it to ensure it comes from a pet, smoke, and pest-free property.

The best place to get used equipment for a travel agency is from another business. Businesses tend to use their furniture and electronics less harshly than a local family of five might. You can expect better quality items.

11. Establish Your Brand

Your brand is your travel agency’s reputation and name all rolled into one. It evolves through several identifying factors, including images in your logo, engagement with your customers, and even the marketing materials you use. 

a travel agent wants to own her own business

As a small fish in a big sea, you need your brand to stand out and put you on the map for locals looking to travel. Here are some of the ways to begin growing your brand. 

Get a Business Phone Number

Giving customers a branded method of contact, like a business number and business email, makes you look more professional. It also keeps your personal calls from getting mixed in with professional calls, which can be confusing. 

There are plenty of big-box business plan options with companies like T-Mobile and AT&T . We recommend Google Voice for an outside-the-box business phone number option.

Google Voice can be used from any device you can connect to your Google account, including a tablet or computer. Prices for a business line start at $10 per month.

Create a Logo & Brand Assets

A picture is worth a thousand words. For a business, a logo is worth more than words. It helps boost income by encouraging brand recognition among consumers. One of the top places to begin your logo design journey is Looka . 

Looka uses state-of-the-art AI technology to design logos based on your tastes. You sort through images, colors, font types, and other identifying logo features until Looka builds an algorithm to create a logo just for you. Use your logo on signage, merchandise, and business cards to help locals identify your travel agency. 

Create Business Cards and Signage

Vistaprint is the first place we recommend shopping for business cards. Like Looka, Vistaprint tailors card designs to your preferences after having you sift through font and color options. Choose from gloss or matte cards, and upload your brand’s logo for further personalization.

Vistaprint offers different packages and prices depending on how many cards your agency needs. They also print signs, stickers, labels, stationary, and merchandise like bags and clothing. 

Purchase a Domain Name

In a digital world, a domain name says a lot. It tells your customers where to find you online. It also tells them how professional you are about your digital profile. Choose a domain name that reflects your business name and the travel industry to make it easy to consumers to find you. 

There are plenty of places to shop for domain names. Namecheap.com is a good place to start if you want to keep costs low. For a .com address, prices start as low as $6 a year. 

Build a Website

Your domain name is ready, but what will customers see when they click your link? Web design is an integral part of your online brand. Everything from loading time and site navigation to aesthetics and widgets adds to the customer experience. 

If you’re not up to building your own website try freelancer sites like Fiverr . At Fiverr, you can post jobs and have seasoned freelancers bid on the task. 

Wix is another website design option if you want to take a shot at it yourself. It offers premium templates and simple-to-follow design guides for newbies.

12. Join Associations and Groups

Branching out and connecting with others in your industry is a good way to get your brand noticed. Networking lets you gain invaluable knowledge from travel experts with years of experience. One way to do this is by joining groups and industry associations. 

Some memberships and associations to discover include the American Society of Travel Advisors and the National Tour Association . 

Local Associations

Local associations give greater insight into the travel industry’s comings and goings in your state and city. Join a local group of travel agents or industry partners to learn tips about serving consumers in your community. 

Partnering with indirect competitors, like airports, hotels, and even restaurants grows your brand and your local network. Search for local groups through other travel agencies, community centers, or online.

Local Meetups

Local events, conventions, and trade shows help you further connect with peers. Use Meetup to find a local group or great your own. Search through local listings by zip code, state, and meetup type. 

Facebook Groups

Social media is an undervalued business tool. It’s free and provides phenomenal outreach when used correctly. Facebook groups let you connect to other travel agents without paying membership fees. Some Facebook groups to check out include:

  • TRAVEL AGENTS
  • Travel Agent Free Advertising
  • Travel Agents Helping Travel Agents

If you don’t connect with travel agencies on any existing Facebook groups, try making your own. 

13. Focus on Marketing

Marketing is essential for any successful travel agency. With so many simple travel apps and comparison sites promising the cheapest vacations, you need to show consumers you exist. Marketing tools let you connect with your local customers and tell them how you can make their travel plans better.

There are many ways to start marketing a new travel agency. Here are a few of the most basic ways to get started.

Ask Friends, Family, and Coworkers

It sounds simple, but it works. Word-of-mouth marketing is still a huge benefit in the travel industry. It makes a difference when friends and family members tell colleagues and neighbors how great your agency is. 

There are plenty of ways your loved ones can spread the word about your brand, including:

  • Sharing your business cards
  • Liking, commenting on and sharing your social media posts
  • Leaving online reviews of your services
  • Handing out travel brochures

Get everyone you know to share your business with at least two people. You never know, maybe those two people will share with others.

Digital Marketing Ideas

Digital marketing is increasingly important to modern marketing. It helps create brand awareness and drive traffic to increase your conversion rate. As you determine how to start a travel agency be sure to invest in marketing early.

A conversion rate is the number of customers who use your service divided by the number of website visitors. If 100 consumers visit your travel agency website and 25 of them book trips, your conversion rate would be 25%.

a travel agent wants to own her own business

Increase your digital presence by:

  • Sending emails or newsletters
  • Creating Google and Facebook ads
  • Offering QR and coupon codes
  • Posting content to social media

Don’t forget to engage with the content you see consumers posting online as well. Commenting, sharing, and liking consumer content makes your brand appear more of a human than a commercial entity.

Traditional Marketing Ideas

Marketing with traditional mediums like billboards, newsprint, and direct mail is considered traditional marketing. Compared to some of our latest approaches to advertising, it may appear outdated, but it works. 

Traditional marketing methods are useful because they provide a lasting impression. It’s harder to ignore a travel brochure in your mail box than an email in your junk mail filter.

14.  Focus on the Customer

Your customers are the reason you do what you do. Focusing on consumers helps you get a leg up over the competition. Modern consumers like working with companies they can trust. Showing your clients that your travel agency has their best interests at heart makes your brand stand out.

Show your customers you care by implementing:

  • Loyalty and referral rewards
  • Polls and surveys for preferred travel services and locations
  • Local travel events to gather VIP customers and thank them for their patronage
  • Exclusive offers and travel rewards

Work with your customers to create custom travel experiences they’ll never forget by going that extra mile. 

We hope this guide has helped you figure out how to start a travel agency. Wherever your entrepreneurial dreams take you, happy travels and a safe return!

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Wow! This guide on starting a travel agency is fantastic! It explains everything well, like how to find out about customers and make your business known. It's cool how it talks about every important thing you need to start a travel agency. It makes starting one feel exciting and doable. Great job for giving such clear and helpful information – it's really useful for people who want to start their own travel business! Our company – Xeni, provides a platform where Travel influencers travel Agents, and Travel bloggers can build their travel brands with custom domain and language options. Also, it allows agents to easily create and sell their customized travel packages for their clients. I hope these insights are helpful to your readers. For more information visit:- https://www.xeni.com/

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  • Travel Franchise

The Life of a Travel Business Owner: What You Need to Know

life of a travel agent looking at papers

A travel agency can help its clients make the most of their budgets by doing all the groundwork. From researching destinations to finding the best deals, agencies handle it all. Sometimes, a travel business owner will even look at forecasts throughout the year to find the best times to travel to certain destinations and the best prices.

Travel agencies first came about in 1822 when Robert Smith declared himself as the first travel advisor and operator, booking passengers on steamers going from Bristol, England to Dublin, Ireland. Since then, the role of a travel business owner has evolved alongside advances in travel technology like the airplane, trains and cruise ships.

Your experience working in the travel industry can vary depending on the number of clients you take on and the technology you can access. However, if you’re interested in a career where you control your hours and can work from home and from anywhere in the world, Dream Vacations might be the perfect fit for you – read on to learn how to become a travel agent , and what the unique work-life balance is like.

Life as a Travel Agent

The daily tasks of a travel agent are based on your clientele and the available resources. You can spend your days looking at the best deals, finding new, adventurous travel destinations, and checking on different activities to do in each destination. From dining options to nearby shops to entertainment, there’s no aspect of a client’s trip you won’t touch.

On top of finding all the best rates for vacation packages, tours, resorts, cruises and more, you’ll be in close contact with your clients, sharing different packages you’ve put together that meet their needs and budget.

The life of a travel agent can be exciting; knowing that you can work from anywhere while still providing exceptional service to your clients is a major bonus. You’ll also have the chance to go on familiarization trips to check out new resorts, cruise ships and destinations at significantly reduced rates. You can then use that knowledge to help your clients plan their perfect trip!

Life of a Franchise Owner with Dream Vacations

As a Dream Vacations Franchise Owner, how much you get out of it depends on how much work you’re willing to put into it. Dream Vacations Franchise Owners earn a percentage of every sale they make as a commission. This includes not only base cruise packages but also things like:

  • Travel protection packages
  • Hotel bookings
  • Consolidated airfares
  • Optional cruise features
  • All-inclusive resort bookings
  • Travel insurance and more

How Does Dream Vacations Franchise Work?

When you sign up to be a Dream Vacations Franchise Owner, you’ll be the owner of your very own travel agency! You’ll have the knowledge and expertise of Dream Vacations — a powerhouse in the travel industry — behind you as you gain experience as a travel business owner. You become part of a franchise, a proven business model, with more than 1,600 franchise owners that will share best practices with you.

You work with a business development manager assigned to you that will help you prepare, design and achieve your business goals by making your customers’ ideal vacations come to life. Dream Vacations has set itself apart by offering personalized booking services to clients while working around their busy schedules.

Dream Vacations franchises are some of the most affordable franchises available today. Our franchise fee is one of the lowest out there — as low as just $3,500 — and we also offer discounts to military veterans.

If you are looking for other options and still want a home-based travel agent business , then consider becoming a Dream Vacations Advisor. Advisors are independent contractors who work alongside franchise owners, benefitting from their mentorship and guidance as they get to know and work in the travel industry.

Locations Travel Agents Can Work

Dream Vacations Franchise Owners and Advisors can work from just about anywhere with an internet connection. If you’re looking for the opportunity to be a work-from-home travel agent , or even to work from beside the pool at a tropical resort, Dream Vacations is just the answer! If you have access to the internet and a smart device that can keep up, you can communicate with clients and research the best deals.

Starting up your own travel business with Dream Vacations gives you more flexibility along with the tools you need to get started in the travel industry.

Tourism Training and Education

While training courses, certifications and degrees in tourism can be helpful, they’re not required to get into the travel industry. People with tourism certifications and degrees in hospitality might be more knowledgeable, but these are not a requirement for a qualified and successful travel agent.

The great thing is that if you become part of Dream Vacations, either as a franchise owner or an advisor, you’ll have access to virtual, in-person and on-demand training courses. You can even earn certifications in specialties such as travel health and safety, destinations, and specific product types. These accolades can set you apart from your competition and propel your career forward.

If you’re interested in a career as a travel business owner and some great home-based travel business opportunities , contact Dream Vacations today to find out what we have to offer!

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How to Start a Travel Agency Business From Home: Steps to Start Becoming a Travel Agent

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Table of content

How to start your travel agency today

As the world becomes more interconnected, the demand for travel agencies grows. Whether for leisure or business, people travel far and wide, creating opportunities for aspiring entrepreneurs to enter the travel industry. With the rise of technology, starting an online travel agency has become a viable option. This comprehensive guide will walk you through the step-by-step process to start a travel agency , including research and planning, obtaining licenses and certifications, choosing a niche, developing a website and social media presence, promoting your agency, and providing excellent customer service.

Step-by-Step Guide to Start Your Travel Agency

Focus on the proccess: Step to step guide to start a travel agency

Step 1: Research and Planning Before You Start a Travel Agency

Firstly, it's essential to do lots of research and planning before you start a travel agency . You should study things like the size of the market and the competition. It's also important to consider where your agency will be located. You need to think about the costs involved and learn about the people in your local community.

Next, it's a good idea to create a business plan. This is like a roadmap for your travel agency . It should explain what your mission is and who your customers will be. Your business plan should also include the services you will provide and how much they will cost. You also need to think about how you will tell people about your agency and your financial goals.

Finally, don't be afraid to ask for help. Some people have a lot of experience in the travel industry and can give you advice. You can join groups like the American Society of Travel Advisors (ASTA). They can provide you with valuable information to help your travel agency succeed.

Step 2: Obtain Licenses and Certifications to start a Travel Agency

Getting the required licenses and certifications is one of the first steps to becoming a trustworthy travel agent. You might need a license called a "seller-of-travel" license. Some states require this. You will also likely need a business license.

In addition, there are certifications that you can get from industry groups. For example, you might want to get certified by the American Society of Travel Advisors (ASTA) or the International Air Transport Association (IATA).

These certifications aren't just pieces of paper. They're proof that you know what you're doing. They show your customers that you're a professional who understands the travel industry. So, having these certifications can give your travel agency more credibility.

Step 3: Choose a Niche

When you start a travel agency , it's essential to be different from other agencies. You must find a special or "niche" area in the travel industry. This should be something you're interested in and know a lot about.

For example, you might focus on luxury travel. Or, you could specialize in adventure trips. Maybe you want to help businesses with their travel needs. You could also focus on specific places or types of trips like cruises or tours.

By focusing on a niche, you can make your marketing more effective. This means you can talk directly to people interested in your travel type. You can also provide services that are tailored to their needs.

Step 4: Develop a Website and Social Media Presence

In this modern world, it's really important for travel agencies to be online. First, you should create a professional website. This site should show your services, their cost, and your contact details. It should also highlight your credentials.

Second, when you start a travel agency , it's a good idea to use social media. You can use sites like Facebook, Instagram, and Twitter. These sites can help you connect with people who might want to use your agency. You can use them to advertise your services and share travel information.

Lastly, make sure your online presence matches your agency's brand. This is the image or idea that people have about your agency. Your online presence should also show what makes your agency special.

Step 5: Promote Your Agency

When you open a travel agency , it's important to let people know about it. One way to do this is by using different types of marketing. Digital marketing strategies can be really helpful. These include things like search engine optimization (SEO), pay-per-click (PPC) advertising, and email marketing.

Another way to promote your agency is to go to travel conferences. These are meetings where people in the travel industry get together. They can be a great place to meet potential customers and learn about new trends in the industry.

You can also write about travel on your website and social media. This can help people find your agency when they're looking for travel information. Plus, you might want to work with other businesses in the travel industry. This can help you reach even more people.

Step 6: Provide Excellent Customer Service

The success of a travel agency depends a lot on customer service. You should always be quick to respond to your clients. Also, you need to know a lot about travel and act professionally.

Offering custom itineraries is a good idea. These are travel plans made just for a client. It's also important to be available to help your clients anytime they need you. Plus, make sure your prices are competitive.

Going the extra mile can help your travel agency succeed. This means doing more than what's expected. Doing this can make your clients trust you and keep coming back. They might even tell others about your great service.

Understanding a Travel Agency

What is a travel agency?

Definition and Purpose of a Travel Agency

A travel agency is a type of business. It offers services that help people with their travel and tourism needs. A travel agency acts like a helper or a go-between. It provides solutions for the people who use its services.

The main job of a travel agency is to work on behalf of other companies in the travel industry. These could be airlines, hotels, or tour companies. The person who starts a travel agency represents these suppliers.

In short, a travel agency connects travelers with the services they need. It stands as a bridge between the customer and various travel service providers. This role makes it a vital part of the travel and tourism industry.

The Role of a Travel Agency as a Representative for Suppliers

A travel agency has an important job. It acts as a representative for different companies in the travel industry. These companies, or "suppliers", can be airlines, hotels, or car rental companies. They can also be cruise lines or tour operators.

The travel agency works with these suppliers to help travelers. They arrange services like flights, hotel stays, car rentals, cruises, and tours. The agency talks to these suppliers to get the best deals. They make bookings and sort out all the travel details for their clients.

In other words, a travel agency takes care of lots of different tasks. They work with many types of companies in the travel industry. Their goal is to make travel easier for their clients. They handle all the details, so the traveler can just relax and enjoy the trip.

The Value of a Travel Agency in Simplifying Travel Logistics

A travel agency is really helpful for people who want to travel. It makes planning a trip much easier. The agency acts as a helper between the traveler and the companies that provide travel services.

Travel agencies can find many different travel options. They can put together travel packages that match exactly what their client wants. They care for everything, like booking flights, finding places to stay, and arranging transportation.

In short, a travel agency does all the hard work of planning a trip. It saves travelers a lot of time and effort. So, if you want to help people have great trips without the stress of planning, consider starting a travel agency today.

What You’ll Need to Start Becoming a Travel Agent and Start Your Own Travel Business

What do you need to succeed?

A. The Importance of Education and Specialization in Starting a Travel Agency

You don't need a degree to become a travel agent, but it can be helpful. Studying tourism management, hospitality, or business can give you an edge. These subjects teach you skills that you can use as a travel agent.

This kind of education can make you stand out from others who don't have the same training. Also, it's good to specialize in a certain area of travel. You might focus on luxury travel, adventure trips, or business travel.

To sum up, a degree in a related field can help you succeed as a travel agent. And finding a special area of travel to focus on can make you stand out. Both these things can give you a competitive edge in the travel industry.

B. Certifications and Internships for Aspiring Travel Agents

Many groups offer courses for people who want to start a travel agency . These courses teach about different parts of planning a trip. They give you a wide range of knowledge and useful skills. Getting these certifications can make you look more professional.

Getting real-world experience is also very important. You could start with a beginner's job in hospitality or tourism. Some travel agencies also offer internships. These kinds of jobs can give you a good understanding of how the travel industry works.

In short, certifications can help you learn a lot and look professional. And getting hands-on experience can give you a deep understanding of the industry. Both these things are important for becoming a successful travel agent.

C. Networking and Building a Professional Network

Professional networking is really important if you want to be a travel agent. You can join groups that allow you to meet other people in the industry. This can lead to mentoring relationships or partnerships.

Having business cards and a business phone can help you connect with other professionals. Networking can help you learn and keep up with changes in the travel industry.

In conclusion, networking can help you grow and succeed in the travel agency business. It allows you to learn, stay updated, and make important connections. So, make sure to make networking a part of your career as a travel agent.

How to Start Running a Travel Agency Business Online

Start an online travel agency

Crafting a comprehensive business plan

Starting a new travel agency needs a good business plan. You should think about who your customers will be. This is your target market. You also need to decide what services you'll offer and how much you'll charge for them.

Your business plan should also include a marketing plan. This is how you'll let people know about your agency. And you should think about your financial future. This includes predicting how much money you'll make and spend.

In summary, your business plan is a roadmap for your new travel agency . It covers everything from who your customers will be to how you'll make money. This plan is an important first step in starting your agency.

Registering the travel agency as a legal entity

To start your travel agency , you need to make it an official business. This means you need to follow all the legal rules. You have to choose the type of business you want to be. This could be a sole proprietorship, partnership, or a limited liability company (LLC).

Once you've chosen, you need to fulfill all the legal requirements. This means doing everything the law requires for your type of business.

In short, making your travel agency an official business is a must. This involves choosing a business type and following all the legal rules. Doing this will make sure your agency is legally compliant.

Building a user-friendly website as a digital storefront

In today's world, having a good website is really important. This is true for all online businesses, including travel agencies. Your website should look professional and be easy to use. It should show what services you offer and where you can help people travel to. It should also have your contact information.

You might want to add online booking and payment systems to your website. This can make it easy for customers to plan their trip and pay for it.

In conclusion, a good website is a must for a travel agency . It should be professional, easy to use, and useful for customers. Adding online booking and payment can make it even better.

Creating a successful digital marketing strategy

Promoting your travel agency online is really important. You can use different ways to do this. These might include social media, improving your search engine ranking (SEO), creating content, email marketing, and online ads.

You should focus on reaching the people you want to be your customers. You also want to make sure people know about your brand.

To sum up, online marketing is key for a travel agency . There are many ways to do it, and it's important to focus on reaching your target customers. It's also crucial to build brand awareness.

How to Develop a Website and Start Having an Online Presence for Your Travel Agency

Develop a travel agency website

Determine your website goals and target audience.

Before you make your travel agency website, you need to decide what you want it to do. Maybe you want to promote your services. Or maybe you want to get more bookings. You could also use it to share information about travel.

You should also think about who your customers will be. Consider things like their age, what they're interested in, and how they like to travel.

In short, having clear goals for your website is really important. So is knowing who your customers are. These two things can help you make a website that really works for your travel agency .

Choose a domain name that reflects your travel agency 's brand.

Select a domain name that is relevant to your travel agency and easy to remember. Ideally, it should reflect your brand name or include travel-related keywords.

Select a reliable web hosting provider.

Research and choose a reputable web hosting provider with reliable server uptime, security features, and good customer support. Consider the hosting package that suits your website's needs and budget.

Design an appealing and user-friendly website layout.

You should make your website look really good. It should match the style of your travel agency . It should also be something your customers will like.

The design of the website should be professional and easy to use. The menus should be clear and easy to find. The way users interact with the site should be simple and logical. And the pictures and graphics should be visually pleasing.

To sum up, your website should be professional, easy to use, and attractive. It should also match your brand and appeal to your customers. These things will help make your website a success.

Create informative and engaging content for your website, including:

  • About Us page: Introduce your travel agency 's values and expertise. Highlight what makes your agency unique and trustworthy.
  • Services page: Describe the travel services you offer, such as booking flights, accommodations, tours, transportation, etc. Provide comprehensive information about each service to help visitors understand what you provide.
  • Destinations page: Highlight popular destinations and provide information on attractions, activities, local tips, and travel itineraries. Include high-quality images and engaging descriptions to inspire visitors to book with your agency.
  • Testimonials page: Display testimonials from satisfied clients to build trust and showcase the positive experiences others have had with your agency.
  • Contact page: Include your contact information, including phone number, email address, and a contact form for inquiries. Make it easy for visitors to reach out to you.

Incorporate a booking system or integrate with third-party booking platforms.

Offer your clients a convenient and efficient booking process. Consider integrating a booking system directly into your website or partnering with reputable third-party booking platforms to handle reservations.

Optimize your website for search engines (SEO) to improve visibility.

When you start a travel agency online, you need to use search engine optimization techniques to make your website easier to find. You start by researching keywords. These are words that people might search for when looking for a travel agency .

You can use these keywords in your website's content, meta tags, and URLs. This can help your website show up in search engine results.

You should also create good quality content that is helpful and informative. This content should be appealing to both your users and search engines.

Ensure your website is mobile-responsive for users on smartphones and tablets.

With the increasing use of mobile devices, it's crucial to have a website that is optimized for mobile viewing. Ensure your website design is responsive and adapts to different screen sizes and devices.

Implement website analytics tools to track visitor behavior and performance.

Use tools like Google Analytics to gain insights into your website's performance, visitor behavior, and conversion rates. Analyze the data to make informed decisions and optimize your website's effectiveness.

Revolutionizing travel agencies: Kleesto's expertise in enhancing online presence.

We live in a digital age where a dynamic online presence can make a big impact. It can attract people who might become your customers. It also helps you be unique among many competitors. Kleesto is a leader in this area.

The Kleesto team are expert in developing websites. We can help travel agencies make their own unique websites. These websites are attractive and show the unique things the agencies offer. Kleesto aims to create websites that are easy to use and have designs that grab your attention.

The main goal of kleesto is to create sites that captivate those who visit. But that's not all. We also aim to increase bookings and help businesses grow. With kleesto, your travel agency gets a strong online platform. This will help it stand out in the ever-changing, fast-growing world of travel and tourism. Trust in kleesto to give your agency this advantage. Find all the information you need by visiting our website .

Regularly update and maintain your website with fresh content and functionality.

When you start your online travel agency , keeping your website updated with the latest information, offers, and travel-related content is crucial. Regularly check for broken links, update images, and ensure all features and functionalities work correctly.

If all of this seems hard, don't fret! The kleesto pandas are here to help. We can build your travel agency website for you. Just book a discovery call with us today and start your journey to success!

Conclusion to starting a travel agency today!

So, now you have all the information you need to start your own travel agency . Follow your own path, and never forget that the team of the kleesto Pandas is here to assist you in every single step. Feel free to book a discovery meeting with us, and let us guide you to success.

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Raise your hand if you love to travel. Whether you’re often on the road or take a vacation just once a year, you’ve probably heard of travel agents. These folks help plan and book itineraries for you, eliminating a lot of the pain points when it comes to traveling.

These days many people skip out on a travel agent in lieu of booking their trip online, but if you’re a frequent traveler, you may want to become a travel agent yourself. Why? Because it can save you a lot of money — and may even earn you some in the process.

Let’s take a look at how to become a travel agent, why it’s something you may want to consider and the ways it can work for you.

Why become a travel agent?

Have you ever obsessively researched the best hotels in a city you’re planning to visit? How about checking seat maps on an airplane? If getting into the nitty-gritty of travel logistics is something you do in your spare time, you might also enjoy becoming a travel agent.

Not only do you get to plan trips for others, but you’ll also be able to take advantage of special discounts on many facets of travel.

This is true for your clients, but also for yourself. Travel agents have access to a variety of discounted rates on both airlines and hotels, even when booking travel for themselves.

» Learn more: How to get a refund from a travel agency

How to become a travel agent

Find a program.

Becoming a travel agent isn’t as simple as declaring yourself one. Typically, the first step is to sign up for a program that’ll teach you the basics of running your own travel business.

There are a variety of programs to choose from, depending on your interests and career goals. Most programs will teach you about the business side of being a travel agent as well as how to plan trips, so your courses in itinerary planning and travel insurance will be coupled with business ethics and customer service.

If you’re wondering how to become a travel agent from home, don’t worry. Many of these courses don’t have to be done in person; there are online programs that will teach you everything you need to know from the comfort of your living room.

Apply for certification

Once you’ve completed your coursework, you’ll want to apply for certification. Although there is no single standard that designates you a travel agent, there are a number of different identifiers that you can acquire. Some of the more common ones are:

International Air Transport Association, or IATA, which allows you to book travel on domestic and international airlines.

Travel Industry Designator Service, or TIDS, which allows agents to book trips with a variety of travel suppliers and receive commissions.

Cruise Lines International Association, or CLIA, which provides agents the ability to book trips on cruises around the world.

In order to access Marriott’s travel advisor rates, for example, you can use any three of these designations, along with a variety of others.

Each of these associations and identifiers have different implications for your business, so you’ll want to be sure you’ve fully researched them before applying for membership.

» Learn more: Do travel agents really save you money?

Save money as a travel agent

Once you’ve qualified as a travel agent, what comes next? If you travel frequently, becoming a travel agent can be a huge benefit to you, as it offers discounted rates and access to luxury travel options.

Discounted rates

Travel agents have access to negotiated rates that aren’t available to the general public. The exact amount will vary depending on the business. Hilton, for example, will give personal travel discounts of 50% off at newly-opened hotels and up to 25% off at the remainder of hotels within Hilton’s portfolio.

Hyatt, meanwhile, will give you a discount on personal travel of up to 50%, but only during select dates of the year. And although not all airlines give discounts to travel agents, many do.

Regardless, these are some pretty spectacular savings, and if you’re looking to save money on your vacations, being a travel agent can help.

Luxury programs

Becoming a travel agent isn’t only about saving money, however. It also grants you access to many hotel chains’ luxury travel programs.

If you’re big into elite status benefits, this is definitely something you’ll want to consider — especially since you don’t need any status at all to receive these perks, as long as you book through the hotel’s agent portal.

Most major hotel chains have these programs, including Hyatt Privé, Hilton Impresario, Marriott STARS & Luminous, Four Seasons Preferred Partner, Belmond Bellini Club, Rosewood Elite, Mandarin Oriental Fan Club and Shangri-La Luxury Circle.

While benefits vary by brand, many of these offers include things like room upgrades, complimentary breakfast, early check-in or late checkout and credits for expenses like dining or spa services. General consumers aren’t eligible for these programs, but once you’ve become a registered travel agent, they become accessible to you; however, some programs — such as Hyatt Privé — are invitation only.

For the most part, booking rooms through these programs shouldn’t cost more than the standard rate you’d be paying anyway, so you have the potential to get big benefits without shelling out any additional money.

However, note that these numbers don’t take into account any other discounted rates for which you may be eligible, such as those offered to American Automobile Association members and veterans .

» Learn more: Uncommon tips for saving money on travel

Earn money as a travel agent

Of course, becoming a travel agent isn’t all about scoring discounts for yourself. If you’re looking to earn some money, being a travel agent can be a good way to do so.

Note that travel agents operate in a customer-facing role, so you’ll also need to be able to build client relationships and be comfortable with sales. Courses such as those mentioned above can help train you to do this and run a successful business.

If booking travel and organizing trips for others is something that appeals to you, there’s definitely money to be earned. Marriott, for example, gives agents a commission of between 8% and 10% for all eligible stays booked.

» Learn more: The pros and cons of booking through online travel agencies

If you’d like to become a travel agent

There are a few good reasons to become a travel agent, especially if you travel a lot. Although it takes time and effort to complete training and apply for accreditation, the benefits you’ll receive as a travel advisor can be significant. This is true whether you’re booking personal travel or have built yourself a client base. Either way, there’s money to be had — and saved.

How to maximize your rewards

You want a travel credit card that prioritizes what’s important to you. Here are our picks for the best travel credit cards of 2024 , including those best for:

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Luxury perks: The Platinum Card® from American Express

Business travelers: Ink Business Preferred® Credit Card

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on Capital One's website

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75,000 Enjoy a one-time bonus of 75,000 miles once you spend $4,000 on purchases within 3 months from account opening, equal to $750 in travel.

a travel agent wants to own her own business

  • Form an LLC
  • Should I Start an LLC
  • Travel Agency

Last Updated: February 16, 2024, 1:52 pm by TRUiC Team

Should I Start an LLC for My Travel Agency?

Starting a limited liability company (LLC) for your travel agency can provide several benefits.

Most importantly, an LLC structure offers limited liability to its owners, which can protect their personal assets from lawsuits and creditors.

For a travel agency, lawsuits can arise from things like a customer’s trip being poorly planned, a customer suffering an injury while at your offices, and complaints that the agency intentionally selected more expensive options.

LLCs are also affordable, highly flexible (from a tax point-of-view), and can make your travel agency seem more credible.

Recommended: Use Northwest to form an LLC for $29 (plus state fees).

a travel agent wants to own her own business

Do I Need an LLC for a Travel Agency?

LLCs are a simple and inexpensive way to protect your personal assets and save money on taxes.

You should form an LLC when there's any risk involved in your business and/or when your business could benefit from tax options and increased credibility.

LLC Benefits for a Travel Agency

By starting an LLC for your travel agency, you can:

  • Protect your savings, car, and house with limited liability protection
  • Have more tax benefits and options
  • Increase your business’s credibility

Limited Liability Protection

LLCs provide limited liability protection. This means your personal assets (e.g., car, house, bank account) are protected in the event your business is sued or if it defaults on a debt.

Travel agencies will benefit from liability protection because of the risk of trademark infringement, financial data breaches, and even things like libel. 

Example 1: The airline you selected for a customer’s trip lost their baggage leading to them missing an important meeting. They are attempting to sue you over this. Since your agency is an LLC, your personal assets are protected with limited liability so they could not be taken in the settlement.

Example 2: While going over flight options in your office, a customer trips over a potted plant breaking their nose in the fall. They ask that you pay for the medical expenses. Your personal assets could not be used to pay for this since they are protected with limited liability.

Example 3: A customer is attempting to sue you after finding out their trip could have been cheaper, claiming your agency deliberately picked more expensive options. Should you be found in the wrong by the court, your personal assets would be protected due to limited liability as an LLC.

An LLC will also protect your personal assets in the event of commercial bankruptcy or loan default.

To maintain your LLC's limited liability protection, you must maintain your LLC's corporate veil .

LLC Tax Benefits and Options for a Travel Agency

LLCs, by default, are taxed as a pass-through entity, just like a sole proprietorship or partnership . This means that the business's net income passes through to the owner's individual tax return. 

The business’s net income is then subject to income taxes (based on the owner's tax bracket) and self-employment taxes.

Sole proprietorships and partnerships are taxed in a similar way to LLCs, but they do not offer limited liability protection or other tax options.

S Corp Option for LLCs

An S corporation (S corp) is an IRS tax status that an LLC can elect. S corp status allows business owners to be treated as employees of the business (for tax purposes).

S corp tax status can reduce self-employment taxes and will allow business owners to contribute pre-tax dollars to 401k or health insurance premiums.

The S corp status requires that the business pay the employee-owner(s) a reasonable salary for the work they perform. 

In addition, the business might need to spend more on accounting, bookkeeping, and payroll services. To offset these costs, you'd need to be saving about $2,000 a year on taxes.

We estimate that if a travel agency owner can pay themselves a reasonable salary and at least $10,000 in distributions each year, they could benefit from S corp status.

You can start an S corp when you form your LLC. Our How to Start an S Corp guide will lead you through the process.

Credibility and Consumer Trust

Travel agencies rely on consumer trust. Credibility plays a key role in creating and maintaining any business.

Businesses gain consumer trust simply by forming an LLC.

A growing business can also benefit from the credibility of an LLC when applying for  small business loans ,  grants , and  credit .

Northwest will start an LLC for you for just $29 (plus state fees).

How to Form an LLC

Forming an LLC is easy. There are two options for forming your LLC:

  • You can   hire a professional LLC formation   service to set up your LLC for a small fee
  • Or, you can choose your state from the list below to start an LLC yourself

Select Your State

  • Alabama LLC
  • Arizona LLC
  • Arkansas LLC
  • California LLC
  • Colorado LLC
  • Connecticut LLC
  • Delaware LLC
  • Florida LLC
  • Georgia LLC
  • Illinois LLC
  • Indiana LLC
  • Kentucky LLC
  • Louisiana LLC
  • Maryland LLC
  • Massachusetts LLC
  • Michigan LLC
  • Minnesota LLC
  • Mississippi LLC
  • Missouri LLC
  • Montana LLC
  • Nebraska LLC
  • New Hampshire LLC
  • New Jersey LLC
  • New Mexico LLC
  • New York LLC
  • North Carolina LLC
  • North Dakota LLC
  • Oklahoma LLC
  • Pennsylvania LLC
  • Rhode Island LLC
  • South Carolina LLC
  • South Dakota LLC
  • Tennessee LLC
  • Vermont LLC
  • Virginia LLC
  • Washington LLC
  • Washington D.C. LLC
  • West Virginia LLC
  • Wisconsin LLC
  • Wyoming LLC

For most new business owners, the best state to form an LLC in is the state where you live and where you plan to conduct your business.

Do LLCs Need Insurance?

All businesses need insurance to protect their business assets — even LLCs. This is because the limited liability protection from an LLC protects your personal assets, not your business assets.

Common Situations Business Insurance May Cover for a Travel Agency

Example 1: Going up the steps to your office, a customer trips and fractures their ankle. General liability insurance could cover some or all of the medical expenses for that customer.

Example 2: Backing out of your parking spot after a long day, you fail to check your rear-view mirror and T-bone another car as it passes behind you. The other car’s driver-side door is crushed. The accident occurs on your business’ property, which means that general liability insurance would probably cover some amount of damage to the other driver’s car, as well as any medical payments for which a court found you liable.

Example 3: As you go over itinerary details with a customer in your office, her young child unplugs a computer monitor and pulls it off a desk and onto his head, causing injuries that require medical attention. If found liable, you could probably count on general liability insurance to cover medical expenses or any settlement reached.

Other Types of Coverage Travel Agencies Need

While general liability is the most important type of insurance to have, there are several other forms of coverage you should be aware of. Below are some other types of insurance all travel agencies should obtain.

Professional Liability Insurance

Travel agents don’t simply book flights and cruises. They can organize and book lodging, tourist activities, and more. A travel agent is not immune to error though. Scheduling errors, bad advice, or poor communication can result in negative customer experience.

While many trips are intended to be relaxing vacations, a travel agent can be found liable in the event that their advice or trip management results in damages to the customer. Keep your agency and your employees covered with professional liability insurance , which will cover workers who accidentally ruin business travelers’ trips or cause injury through poor advice.

Business Interruption Insurance

In the event that your storefront is destroyed or severely damaged, usually through forces like fire or tornadoes, business interruption insurance can help your travel agency get back on its feet. This policy covers estimated losses in revenue during a temporary period of commercial inactivity. Additionally, if your business requires a temporary relocation, this policy may cover the expenses accrued from the move. Business interruption insurance can keep your travel agency alive and kicking as it recovers from a major disaster.

Workers' Compensation Insurance

A growing company’s needs will include more agents to handle an increase in customers. Once you employ part-time or full-time workers, it is legally required to carry workers’ compensation insurance . These policies typically include disability and death benefits in the event that an employee is injured or killed at work.

Data Breach Insurance

Much of the modern travel agent’s work includes digital data entry, including customer itineraries, destinations, hotels, and debit or credit card info. In the event that your devices or network are breached, your business could be found liable and be required to compensate for customer losses of any kind.

Hackers and online scammers continue finding cleverer methods of digital theft, and data breach insurance can protect your company from damaging legal action.

Should I Start an LLC FAQ

Which is better for my travel agency — an llc or sole proprietorship.

Choosing the right business structure depends on your business’s unique circumstances and needs. However, unless your business is very low risk (like a hobby), an LLC is likely the better option.

Visit our LLC vs. Sole Proprietorship guide to learn more.

What type of insurance does a travel agency need?

At a minimum, you’ll need general liability insurance .

Read our Travel Agency Business Insurance article for more info.

What are the costs to start and maintain a travel agency?

Some sources suggest you can pay a host agency $400 to $1,200 to get started from home. A host agency 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.

Visit our How to Start a Travel Agency guide to learn more about the costs of starting and maintaining this business.

What are the ongoing expenses of running a travel agency?

One of the main operating expenses for a travel agency is marketing costs. Rent can be an additional operating expense if your travel agency has an office.

Learn more about running a travel agency .

How do travel agencies make money?

Travel agencies make money by researching, planning, and booking travel itineraries for customers.

Learn more about starting a travel agency .

What is a travel agency and is it lucrative?

The travel industry has changed dramatically over the last few decades. Today, people are able to find almost all the information they need on the internet and even make their own bookings and reservations.

Despite this, there is still some demand for travel agencies. Some people don’t want to spend the time planning their own trips, while others want assistance organizing a specialized itinerary.

Small travel agencies make around $30,000 to $50,000 per year, but specializing in certain services could lead to more revenue.

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Article sources.

IRS: Limited Liability Company

IRS: S Corporations

SBA: Small Business Guide

SBA: Choose a Business Structure Guide

US Census Bureau: Small Business Statistics

SBA Office of Advocacy: Data on Small Business

FRED: SBA Data for Small Business

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a travel agent wants to own her own business

Still in Her 20s, Molly Murphy Follows Her Own Business Plan at Her Own Agency

Still in Her 20s, Molly Murphy Follows Her Own Business Plan at Her Own Agency

About 75% of Molly Murphy's clients are Millennials like her. 

When hiring a new travel agent, some agencies look for sales experience, and some look for travel industry experience. But Molly Murphy owes her career to National Travel’s Ted Lawson, who appreciated her pluck and attention to detail, and took a chance on a 21-year-old applicant who had neither sales nor travel industry experience. All Murphy had to offer was that she just plain loves to travel.

The HR pundits call that a recipe for disaster — but Lawson’s faith paid off big-time. The agency’s youngest hire ever, Murphy soon was among its top five producers, with gross sales over $500,000 — and sometimes over $1 million — in every one of the four years she worked there. 

Then two years ago, when her husband’s job moved them to Michigan, Murphy decided to take the leap and launch her own agency: Vitamin T Vacations (because, she says, travel is like a vitamin), in Auburn Hills.

Eighteen months later, and still under 30 years of age, she has never looked back. With no advertising budget, her business depends solely on referrals from past customers and leads from her Avoya host network. In the past month, four new clients came on board.

Murphy says about 75% of her clients are Millennials like her. She thanks her lucky stars for her very first client in Michigan, a hairdresser for whom she planned a honeymoon at the Eldorado on Mexico’s Riviera Maya; the bride was so impressed with Murphy’s attention to detail that she has sent along a steady stream of brides-to-be who have sat in her salon chair and listened to her recommendations.

While the leads she gets from Avoya tend toward river cruisers to Europe (in which niche she has certification), Muphy’s 20-something personal clients book mostly honeymoons and destination weddings, traveling on smaller budgets and looking more for trains and Airbnbs when they cross the ocean. But they also tend to book all-inclusive resorts in Mexico and the Caribbean, where the booking window is much shorter than that of river cruises; that means commissions come in more quickly, and that’s helpful to a new travel agency, where cash flow is tight.

Millennials tend to “research what they want to see and then come to me to help them build their best trip around that,” Murphy says. But high-end or low-end, all of her clients get her undivided, and almost unlimited, attention.

(Murphy believes that a river cruise is a wonderful experience for a Millennial, she noted, especially for a “mom and daughter or grandma experience – it’s just so stress-free; it gives you a real opportunity to connect with the person you are with.”)

The long-term view When you’re a 20-something agent with 20-something customers, the focus is on the future — and the customer is always right. She never pushes preferred suppliers; when a client wanted to see Europe for two months, for example, “I could have just recommended a tour, but instead, I planned it piece by piece, the trains and the B&Bs, as well as the airlines and hotels.”

And while Murphy is comfortable with technology, she has not gone paperless. Still fresh in her mind is the memory of her own excitement when she booked her very first cruise, and the travel agent hand-delivered her documents, came in and sat down, and went over all the details face to face.

“I try to follow through with that now; even if they want me to email the documents, I’ve been making llama and cactus and pineapple bags, and putting in luggage tags and my business card, and actually trying to deliver them, or having them call me when it arrives so we can go over everything. It makes it so much more exciting than saying, ‘Here are your documents, print them out,’” she says.

And in keeping with the theme of getting rid of plastic that was highlighted on the recent Tourism Cares trip she attended, she is sending stainless steel tumblers and straws to special clients, with a note saying, “To help save the local environment, please take these along and keep your drinks cold on the beach.”

“It’s well worth the five or ten dollars it costs when they refer me to a new client, and come back themselves,” she says.

A little background Murphy’s love of travel started when she saw “The Rescuers Down Under,” an animated movie, as a child. She decided there and then to go to Australia — and summering with her parents on an island in Canada just stoked that “passion to visit areas that aren’t well known.”

She worked for five years as a waitress to save up the money. And in college, she got an internship with The Wilderness Society in Sydney for the summer, where her job entailed wearing a koala suit to protest the mistreatment of animals.

When she returned, she went right to her college’s Study Abroad office and signed up for a semester at the University of Ulster in Ireland. “I traveled alone and met incredible people; and when I came back and graduated, I thought, ‘What can I do to keep traveling?’” A job posting from National Travel caught her eye — and her tales of backpacking through Scandinavia, planning every detail and every train, finally convinced Lawson (after three interviews) to take a chance on her.

In Michigan, Murphy started her agency the way she started her solo trips: Doing the legwork and getting the details right. “I did so much research before I started; I had all my ducks in a row, my E&O insurance, and my host agency,” she said. “With so many opportunities ahead, I wanted to do it right from the start.”

And indeed, the experience has been largely what she expected. Between the startup costs and the small book of business to start, “I knew it would be a struggle, but in 18 months I’ve had so many referrals, it’s been amazing,” she said. And starting slow has given her a little extra time “to make sure each client is taken care of, to look over every itinerary and quote, to talk to clients, so those extra referrals come back to me.”

She expects to gross close to $250,000 in 2019 — not as much as at National Travel, but pretty good for a job working at home, with the freedom to see the world and build her knowledge base, and with many years ahead in her own business.

2019 agenda Murphy clearly understands the importance of selling what you know — and she is loving being able to choose the trips she wants to take. In 2019, she chose Tourism Cares for Puerto Rico (in addition to giving back and networking, “so many clients cruise from there, and it really helps me to give them personal recommendations”); CruiseWorld’s Star Program, to which she has been invited; Delta Vacations University; and her first Avoya conference, onboard Royal Caribbean’s Navigator of the Seas.

Perhaps the hardest thing about working alone, is taking care of customers when she is on the road herself. But she has found a buddy and they have worked out a coverage plan for one another; “you don’t want to work the entire time, but if something comes up, you want to be contacted,” Murphy said. She believes that she has solved the time-management problem inherent in working at home, with set working hours during which she sits in her home office space.

“It’s definitely been a change not actually seeing people in person; I liked when people came in and I got to meet them in person,” she says. “But I do Skype and FaceTime.”

In the end, Murphy says, clients are “looking for someone to connect with, to show them that using a travel agent is so different from booking online. I need to do something extra for giving me the chance to be their agent and build that relationship. I don’t send an extravagant gift every time. But these are the moments they will always remember.”

And with 75% of her customers being Millennials, like she is, those little connections will hopefully pay off for years to come.

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

By Scott Bay

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

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.

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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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A 34-year-old part-time influencer became a travel agent as a side hustle and sold $119,000 worth of trips in 8 months. She shares how she got started and makes money.

  • Creator Tia Cooper was looking for another way to make money so she became a travel agent.
  • After her 9-to-5 job, she helps clients book flights, hotels, and all-inclusive activity packages.
  • She shares how much she's earned and why other travel creators should look into this type of work.

When Tia Cooper reaches her apartment after a full day teaching physical education, she isn't turning on the TV or grabbing a book to unwind.

Instead, she heads straight to her computer to check on the flight and hotel reservations she makes for her clients as a travel advisor. Then, she gets to work finalizing her own travel plans and coordinating with brands on paid sponsored content.

Cooper first started posting photos of her travels on Instagram in 2015, later creating a TikTok account to produce videos focused on luxury budget travel. Today, she's traveled to 44 countries and amassed a following of almost 129,000 followers across the two social platforms.

Even though she's worked with brands including Tourism Ireland, Sofitel, Visit Dubai, Emirates Red, and Travel Noire to monetize her content by creating videos and carousel posts, the 34-year-old hoped to boost her income even more. She was also looking to play a more active role in coordinating travel for her online community.

"I wanted to find a way of using my travel knowledge to help other people actually go places, instead of just posting content for them to see," Cooper told Business Insider. 

She's one of several people using their experience as travel creators to build lucrative businesses; some are becoming certified travel agents like her while others are organizing group trips.

In the past eight months, Cooper has sold $119,000 worth of trips to clients from around the world, who book specific travel packages that she offers through an online travel advisor company, according to documentation viewed by BI.

Certifications and commissions galore

When Cooper first explored the idea of becoming a travel agent in 2018, she was overwhelmed by the process. 

"I didn't know where to begin, so I decided to just stick to influencing," she said.

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However, in early 2023, one of her mentors, a creator who had been accredited to become a travel agent, offered to help walk her through the process step-by-step.  Today, Cooper has nine agent certifications, viewed by BI, including from Carnival Cruises and Marriott International Hotels.

She offers her clients a variety of travel packages, such as a VIP concierge experience, and when they book, Cooper earns a commission that ranges from $200 to $600 per person. While many people have reached out to her for assistance because they've seen her content and trust her experience, word of mouth has been one of the most successful tactics for landing work, she said.

That's why travel creators don't have to have a lot of followers in order to be successful in this profession.

"You have to be willing to talk to people at your husband's dinner party or on the street," she said.  "You don't have to sell travel —people already want it — so you just have to tell them you're the person who can make that happen."

A 'boom' in travel creators becoming agents could be the future

Today, Cooper mentors a few travel creators herself who are interested in getting their agent certifications.

She also tries to persuade other friends in the travel community to look into this line of work but said the idea is sometimes met with skepticism because of the time commitment.

However, she thinks it will be a popular side hustle for travel creators since she said brand deals — the main way many influencers earn money — are often an inconsistent source of income.

"I don't think enough creators realize how much money there is to be made," she said. "These days, people want travel experts they trust to book their trips, and as creators, we naturally build that trust because of the content we post."

Cooper hasn't stopped traveling herself either and still works with brands to help pay for her trips.

Her minimum rate for a sponsored TikTok video is $750 and she charges at least $500 for an Instagram reel or carousel post. She said those rates would be much higher if she was a full-time influencer, but these prices allow her more flexibility to negotiate terms with the brands, like for how long she goes to a country.

"I still have a 9-to-5, so I can't pick up and go somewhere for a week if it doesn't work for my schedule," she said. "I love what I do, but travel is my passion too, so I'm juggling it all now."

Watch: This couple ditched their 9 to 5 jobs to make a living traveling the world

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  1. How to Start a Travel Agency

    Step 4: Create a Travel Agency Business Plan. Every business needs a plan. This will function as a guidebook to take your startup through the launch process and maintain focus on your key goals. A business plan also enables potential partners and investors to better understand your company and its vision:

  2. Business Structure 101 for Travel Agents

    Business Structure 101 for Independent Travel Agents and Entrepreneurs. As a new entrepreneur and independent travel agent, you need to register your business. However, before you get started, you have to figure out how you want to structure it. There are many different options so it can be hard to figure out what is best for you and your business.

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    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.

  4. Starting a Travel Business: How to Become a Travel Agent

    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.

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    6. Obtain all necessary licenses and registrations. There are at least two main sets of paperwork you need to complete when formally starting your own travel business—standard business licenses and registrations and occupational travel agent licenses. Independent travel agents may need their own licenses.

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    Start now. 1. Perform market analysis. 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.

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    Agents should start with expenses, add a personal salary and then add in additional costs and expenses in order to get a total. Then divide that number by 0.8 if you're sharing with a host ...

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    Building Your Expertise and Focus. 1. Build your knowledge of and experience in the travel industry. If you have friends or family in the travel industry, or have utilized the services of a travel agent before, pick their brains about the ins and outs of the business. Do research online and at your local library.

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  13. How to Start a Travel Agency in 14 Steps (In-Depth Guide)

    To open your own brand expect to $6,000 to $10,000 plus ongoing costs. Franchising a travel agency like Expedia can cost up to $291,245 as an overall investment. The high cost of a franchise comes from a longstanding brand name, an existing global client base, and built-in legal and insurance coverage.

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    Travel agencies first came about in 1822 when Robert Smith declared himself as the first travel advisor and operator, booking passengers on steamers going from Bristol, England to Dublin, Ireland. Since then, the role of a travel business owner has evolved alongside advances in travel technology like the airplane, trains and cruise ships.

  16. How to Start a Travel Agency: Steps to Start Becoming an Agent

    Step 2: Obtain Licenses and Certifications to start a Travel Agency. Getting the required licenses and certifications is one of the first steps to becoming a trustworthy travel agent. You might need a license called a "seller-of-travel" license. Some states require this. You will also likely need a business license.

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    Find a program. Becoming a travel agent isn't as simple as declaring yourself one. Typically, the first step is to sign up for a program that'll teach you the basics of running your own travel ...

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  19. Should I Start an LLC for My Travel Agency?

    Despite this, there is still some demand for travel agencies. Some people don't want to spend the time planning their own trips, while others want assistance organizing a specialized itinerary. Small travel agencies make around $30,000 to $50,000 per year, but specializing in certain services could lead to more revenue.

  20. Still in Her 20s, Molly Murphy Follows Her Own Business Plan at Her Own

    At 21, this travel agent convinced Ted Lawson to take a chance on her — and soon she was a top agent at National Travel. Now, she is developing a style of her own for reaching and retaining ...

  21. How to Become a Travel Agent—Because, Believe It or Not, the Industry

    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 ...

  22. How to Become a Travel Agent As a Creator to Earn Money on the Side

    A 34-year-old part-time influencer became a travel agent as a side hustle and sold $119,000 worth of trips in 8 months. She shares how she got started and makes money. Tia Cooper works as a ...

  23. A travel agent wants to own her own business. She is researching the

    A travel agent wants to own her own business. She is researching the business opportunities that exist if she specializes in booking cruise ship vacations. ... By offering and promoting various excursions, the travel agent can earn a commission on each excursion sale, increasing their revenue. Lastly, beverage packages can also be a lucrative ...