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How to Start a Travel Agency from Scratch

January 17, 2023
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Startups are now more famous than ever, and it’s time for you to take this opportunity and become your best self. Starting your travel agency is an excellent idea for all travel agents because one will be more motivated for themselves than working for others.

Before we start on how to start your own travel agency, let’s talk about how a travel agency makes money:

How do Travel Agencies Earn?

A travel agency has two main ways of earning money: commissions and fees, but there are many other ways in which a Travel Agency can be monetized, like car rentals, transportation tickets, etc. Here is what commission and fees are:

Commission: Commission is a form of compensation paid by airlines and hotels to the Travel Agency for bringing customers; this is a travel agency’s primary income.

Fees: Fees is the charge that the Travel Agency takes from one for booking flights, hotels, etc. Fees is paid by individuals.

How Much Does It Cost to Start a Travel Agency?

After learning how a Travel Agency makes its money let’s talk about how much it would cost to start your own Travel Agency. It would not cost you as much if you are a licensed Travel Agent. Still, the average budget for starting a Travel Agency is $10,000, including your registration, rent, marketing expenditure, etc. You can always increase your budget and get the most out of it by hiring more people, getting a better office, or creating a new website.

How To Start Travel Agency?

After learning the scope and basics of a Travel Agency, you can follow these easy steps to get started:

1. Decide which Type of Agency you want to open: You need to choose what type of agency you will start, one can either open an independent Travel Agency where they will be directly connected to their clients or, they can open a host agency where free independent Travel Agents come to get clients, resources, and partnership for a fee.

2. Look at the competition: Before starting any business, one should be ready to deal with the dynamics of the ever-evolving and fast-growing market. This is an essential step as it will help you in finding out what your identity is.

3. Find great partners: No mission can be completed alone. A travel agent can do only some of the tasks by themselves, like marketing, Finance, Human Resource Management, etc. Getting a partner won’t only help you in the capital but will also support you in decision-making process.

4. Find your target market: After all the steps above, here is the final step to your business plan. Choose what type of market will be best suited for you and where you can truly compete with other companies. A travel agent has many different kinds of customers to attract, for example, backpackers, Couples, Families, Business travel, etc.

5. Choose your identity: After knowing what your business plan is let’s get started with your decision. You need to choose your company name and get your trademark in this step. The name of the company is what makes it unique and special. Choose a name that is easy to remember and get a logo so that you will look more like a Brand.

6. Get Official: To start a Travel Agency, one will need to get all the licenses that are necessary, like a License to sell insurance, a Seller of Travel Licence, and a general business licence.

7. Market your company: Congratulations, you are now ready to start your business. Start with marketing your company in many ways, some of which are:

  • Make your own website
  • Start your own social media Pages
  • Get a good logo that can stand out from your competitors.

8. Hire employees (If needed): Like getting a partnership hiring employees will give you another leg to stand on. Hiring employees is highly recommended if you have a good budget and will always benefit your business.

9. Open for Business: Final step is to start your company. Now that you have registered, marketed, and started your company, it is time to get your customers so that you can get the best out of the company.

10. Expand: In an ever-evolving and dynamic market like tourism, one can never stop their business at a certain level. Now that you have started your business and earned your first income, you should begin investing back to grow your company.

11. Best of Luck: Congratulations, you have now successfully learned how to start a travel agency from scratch, and we hope that success may come in your future endeavours.

Frequently Ask Question

Q.1 How to start a travel agency from home?

1. Find your travel agency niche

2. Choose your travel agency name

3. Choose a travel agency business structure

4. Create a business plan

5. Register your travel agency

6. Set up your financials

7. Choose Between a Host Agency, Travel Franchise, or Your Own Accreditation

Q.2 How do travel agents get first clients?

A2. Ways travel agents can gain new leads

  • Position yourself as a specialist travel agent
  • Seek Out for referrals
  • Get active social media and engage with your audience
  • Maintain consistency on all your platforms
  • Always ask for feedback

Q3. How much does it cost to establish a travel agency?

A3. You will need to invest money in licencing, marketing, and travel software to establish a travel business. The cost of launching a travel business can range from a few thousand dollars to more than $100,000, so do your homework before diving in.

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