How To Start a Profitable Travel Agency in 10 Steps

A travel agency helps its personal clients plan the vacation of their dreams, and its corporate clients lower the costs of their business travel.

Travel agencies can provide their clients with discounted rates, improved booking options, ticket management, and more. Travel advisors are an integral part of the travel industry, working with various travel suppliers including airlines, hotels, and cruise lines.

Operating your own travel agency has many perks, including flexible hours, the joy of helping a family plan and afford their dream getaway, and the satisfaction of developing your business and watching it grow. The travel and tourism industry is projected to reach $1.1 billion by 2029, which may give you peace of mind as you set out on this venture.

Whether you’re starting a brick-and-mortar travel agency or an online travel agency, we offer 10 best practices that can help you take that first step with your new business.

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1. Define your niche

Do you love to plan trips for you and your friends to all the out-of-town sports games? Do you have a passion for helping people afford the honeymoon of their dreams, or have you helped a major corporation plan its travel? These kinds of interests and experiences can help a startup travel agency get started on the right foot.

If you already know—or enjoy researching—the sites and destinations your clients may be interested in and the best places to stay, you’ll be able to provide the kind of experience that will bring you repeat customers and earn you word-of-mouth advertising.

Types of travel to consider include:

• Honeymoon vacations
• Corporate travel
• Adventure travel
• Luxury travel
• Sporting events travel
• Medical travel
• Destination weddings
• Foodie tours
• Pet-friendly travel
• Senior travel
• Family travel

By starting with a limited focus on your defined niche, you can shape the rest of your business accordingly. As your business grows, you can branch out into new markets or bring in associates who are specialists in different areas.

2. Research the current market and trends

Once you’ve defined the niche for your travel agency, you’ll want to do some market research to make sure your niche presents a viable business opportunity. You’ll also want to learn about the people who may be interested in your services.

Some questions you might want to answer while doing market research include:

• What demographics will be most interested in your travel services?
• What problems does this target market face that you can solve?
• How do customers currently overcome the problem your travel agency solves?
• Which competitors, if any, are already present in the market?
• What type of travel agency model are competitors using?
• What sets your travel agency idea apart from competitors?
• What technology solutions and price points are competitors using?
• What are the historical trends in the industry?

Answering questions like these can help you form a big-picture understanding of the industry you’re diving into. With that information, you’ll make sure your goals are attainable, be one step closer to starting a business poised for success, and have important information that potential investors may want.

Don’t forget to research travel associations and organizations like the International Air Transport Association (IATA), which can provide valuable resources and networking opportunities for travel professionals.

3. Look into travel tools and ensure you have the necessary skills

Now that you’ve outlined the type of travel agency you want to open, you’ll want to take a closer look at the technologies and resources people typically use to find success in your arena.

When you’re opening up a travel agency, consider how you want to set up your sales and booking operations, for example, using a website and booking software.

Types of software you may want to get familiar with include:

• Travel booking software, such as TravelWorks or Rezdy
• Itineraries software, such as Nezasa or TripCreator
• Accounting software
• Customer relationship management (CRM) software

Several software solutions combine these different functions into a single package, making it easier to run your travel agency from an integrated system. For example, Pipedrive combines booking, customer management, email marketing, and more into one platform.

Another way to make sure you have the right skills to open your own travel agency is to look into getting travel agent certifications and joining travel associations. Travel agent training and accreditation can enhance your expertise and credibility in the travel industry.

Travel agent certification programs include:

The Travel Institute travel agent certifications

• Certified Travel Associate (CTA)
• Certified Travel Counselor (CTC)
• Certified Travel Industry Executive (CTIE)

Cruise Lines International Association (CLIA) travel agent certifications

• Certified Cruise Counselor (CCC)
• Accredited Cruise Counselor (ACC)
• Master Cruise Counselor (MCC)
• Elite Cruise Counselor (ECC)
• Travel Agent Executive (TAE)

Other Travel agent certifications

• Global Travel Professional (GTP) certification by the Global Business Travel Association (GBTA)
• Verified Travel Advisor (VTA) certification by the American Society of Travel Advisors (ASTA)
• Travel Agent Accreditation by the International Air Transport Association (IATA)

Travel industry associations also offer benefits when you become a member. While there are quite a few organizations you can join, many travel agents look to:

• American Society of Travel Agents (ASTA)
• United States Tour Operators Association (USTOA)
• U.S. Travel Association

4. Establish partnerships in the tourism industry

Building strong partnerships is crucial for your travel company’s success. You’ll need to establish relationships with various travel suppliers, including:

• Hotels and resorts
• Airlines
• Cruise lines
• Tour operators
• Car rental companies
• Travel insurance providers

These partnerships can help you offer competitive rates and exclusive travel packages to your clients, enhancing the travel experiences you provide. Networking with other travel professionals and joining travel associations can also open doors to valuable partnerships and resources.

5. Make a budget

The next step in developing your business strategy is to spend some time calculating how much money you’ll need to spend to launch a travel agency poised for success.

The startup costs for your travel agency don’t need to be exorbitant, especially if you’re running an online-only operation.

If you’re starting with only one employee—yourself—and minimal office expenses, you can budget to spend around $500 to $20,000, depending on your specific plan and preferences.

Some startup expenses a new travel agency typically may need to budget for include:

• Business formation essentials, such as licenses, insurance, etc.
• Computer and related equipment (printer, surge protector, etc.)
• Travel agency software, such as booking, itinerary, and accounting software
• Website and other marketing collateral, both online and offline
• Office space and furniture if opening a physical location
• Travel supplies and promotional materials

Determine which components your new agency requires, and calculate a total estimate for your entire startup budget.

With your budget in mind, you can move forward with creating a more detailed financial plan (part of your business plan—more on that later). A financial plan can include looking into financing options if you need a large amount of capital to meet your startup goals.

6. Create a travel business plan and company name

Writing a business plan can seem like a lot of work, but it’s an important step in the pursuit of success. No matter how you structure your plan or what details you include, you shouldn’t shy away from developing a solid strategy for how your business will operate.

While a business plan can include a wide variety of information—including your market analysis, your financial forecast, the number of employees you plan to have, and how they’ll be compensated—there are a couple of basic questions you can answer to start formulating the big picture.

First, decide if you’ll operate a brick-and-mortar travel agency or an online travel agency (you may want a website either way.) If you want to open a physical office space in your local community, the costs will be higher, but you may benefit from foot traffic, local advertising, and the simple cachet that comes with having a dedicated space.

Starting a home-based travel agency using a travel website is one of the easiest ways to open an agency with minimum startup costs. A home-based travel agent can become just as successful as an agent with a physical office.

For your next step, decide on the type of business your agency will be. The most common options for startup business owners in the travel market are to operate as a sole proprietor or a limited liability company (LLC).

For expert help developing the rest of your travel business plan, consider hiring a top-rated business plan writer who can guide you and strengthen your overall approach while you launch your new travel agency.

With a clear vision for your travel agency, it’s time to start developing your business name. Think about what the name of your travel agency should convey to customers. Also, consider how this name will serve your interests online. Is a matching domain name available for your new website? Are other companies already using a similar name?

Once you have your travel agency business plan and business name nailed down, you can move on to making it official.

7. Obtain all necessary licenses and registrations

You’ll need to complete at least two main sets of paperwork when formally starting your travel business—standard business licenses and registrations and occupational travel agent licenses.

Independent travel agents may need their own licenses. If you’re partnering with a host agency, you may be able to use their existing licenses and registrations and save hassle and money on those fees.

Standard business licenses and registrations

Any new business will likely need to gather a few standard registrations to operate legally.

These are just the basics. Make sure to cover all your bases by looking into the local city, county, and state requirements in your new travel agency’s business location.

Travel agencies should also make sure they have adequate liability insurance in case, for example, a client sues you due to losses related to their trip.

Travel agent licenses

Licensing varies by jurisdiction. For example, most U.S. states and the federal government don’t require travel agents to have a professional license to offer travel services.

However, a few states require an occupational license, often referred to as a “seller of travel” license. Make sure to check the requirements in your state.

Travel agencies working with international travel should consider applying for International Air Transport Association (IATA) accreditation. This can give you access to IATA’s Billing and Settlement Plan (BSP), making it easier for your clients to book and manage airline tickets.

8. Source travel supplies and create product offerings

As a travel company, you’ll need to stock up on essential travel supplies and develop a range of travel packages to offer your clients. This might include:

• Luggage tags and travel accessories
• Guidebooks and maps
• Customized itineraries
• Group tour packages
• Luxury getaways
• Adventure expeditions

Creating unique and appealing travel packages can set your agency apart in the competitive tourism industry.

9. Create a brand image as a travel agent

Every successful business needs great branding.

Your brand represents all different aspects of your travel agency’s image. When developing your brand, you’ll decide on everything from your logo and color scheme to your slogan and company values. The branding you come up with can be as simple or complex as you’d like.

Your brand image is a combination of your own brand strategy and how people feel about your company. According to a study on consumer trends to watch out for, the most important aspect when building your brand is to find ways to humanize the interactions your clients have with your company.

Customers want to feel a human connection with the companies they engage with. If your brand image doesn’t offer that personal, empathetic experience, you risk losing clients to a travel agency that caters to this fundamental desire in consumers.

To get help creating your travel agency’s brand image, explore professional branding services. Marketing experts can assist you in developing an image that shows your company cares about humans, not just money, and position your new travel agency to outshine your competitors.

10. Promote your new business

With your new travel agency set up and ready to go, start getting the word out to potential clients that you’ll be launching soon.

Some common ways to promote a new business include:

• Social media posts and ads
• Search engine optimization (SEO) blogs and content marketing
• News releases
• Referrals by friends and family
• Website optimization for search engines
• Paid search ads

Your marketing efforts should focus on showcasing the unique travel experiences you offer and the value you bring to your clients. Optimize your website and content for search engines to improve visibility and attract potential clients looking for travel services.

Need help with your marketing strategy? Consider hiring a marketing consultant who can create high-quality marketing materials, advertise your agency, and find your first potential customers fast.

If you’re an independent travel agent, you could also consider joining a host agency to help you get your business off the ground.

Upwork can help you get started

Running a successful travel agency demands commitment and quality service, from setup through your first sale and beyond. It’s easier with smart, experienced partners by your side.

Whether you’re just starting or your travel agency is ready to launch, remember to delegate. Upwork has a wide selection of top-rated independent professionals you can hire to help with almost any aspect of your small business.

For example, our pool of web designers can help you offer visually appealing destinations and a user-friendly online interface, putting you ahead of the competition.

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Upwork does not provide legal advice, and each reader and company should take the time needed to adequately analyze the laws that apply to their business endeavor. Upwork is not affiliated with and does not sponsor or endorse any of the tools or services discussed in this article. These tools and services are provided only as potential options, and each reader and company should take the time needed to adequately analyze and determine the tools or services that would best fit their specific needs and situation.