How to Start a Travel Agency

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

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

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

Travel Agency Image

Start a travel agency by following these 10 steps:

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

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

Exploring your options? Check out other small business ideas .

STEP 1: Plan your business

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

What will you name your business?

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

How much can you charge customers?

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

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

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

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

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

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

Want some help naming your travel agency?

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

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

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

What are the ongoing expenses for a travel agency?

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

Who is the target market?

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

How does a travel agency make money?

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

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

How much profit can a travel agency make?

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

How can you make your business more profitable?

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

There are several types of specialties in the travel industry:

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

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

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

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

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

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

STEP 2: Form a legal entity

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

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

Form Your LLC

Read our Guide to Form Your Own LLC

Have a Professional Service Form your LLC for You

Two such reliable services:

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

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

STEP 3: Register for taxes

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

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

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

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

STEP 4: Open a business bank account & credit card

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

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

Open a business bank account

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

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

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

Get a business credit card

Getting a business credit card helps you:

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

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

STEP 5: Set up business accounting

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

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

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

State & Local Business Licensing Requirements

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

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

Certificate of Occupancy

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

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

STEP 7: Get business insurance

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

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

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

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

STEP 8: Define your brand

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

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

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

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

How to promote & market a travel agency

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

How to keep customers coming back

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

STEP 9: Create your business website

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

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

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

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

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

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

STEP 10: Set up your business phone system

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

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

Recommended Business Phone Service: Phone.com

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

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Is this Business Right For You?

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

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

Take our Entrepreneurship Quiz to find out!

Entrepreneurship Quiz

What happens during a typical day at a travel agency?

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

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

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

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

Certified Travel Associate (CTA)

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

Certified Travel Counsellor (CTC)

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

Certified Travel Industry Executive (CTIE)

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

What is the growth potential for a travel agency?

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

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Take the Next Step

Find a business mentor.

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

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

Learn from other business owners

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

Resources to Help Women in Business

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

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

How and when to build a team

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

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

Useful Links

Industry opportunities.

  • American Society of Travel Agents
  • Franchise opportunity

Real World Examples

  • Independent travel agency
  • Large travel agency

Further Reading

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

Additional Sources

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

Have a Question? Leave a Comment!

Legal Requirements For Starting A Travel Agency [2024 Edition]

If you love traveling and enjoy putting together itineraries, you might consider starting your own travel agency.

While entrepreneurship can be an exciting adventure, getting started involves a number of processes to complete before you can open your doors to the first customer.

One of the things you must comply with is the legal requirements. So, what are the legal requirements for starting a travel agency?

In this post, we look at the legal requirements for starting your travel agency. Let’s jump straight in.

Licenses and Permits Needed To Start a Travel Agency Business

Here is an overview of the licenses and permits you may need to start and run a travel agency business.

1. City Business License

Validity : 1 Year

To operate a business in any city, you need a city business license.

Before the approval and issuance of a city business license, the city planning or the zoning department checks to ensure the area is zoned for the purpose you intend to use it for, and that you meet the codes.

In case you plan to operate the travel agency from your home, check the zoning ordinances carefully. Typically, the residential neighborhoods tend to have strict zoning regulations, preventing businesses from operating within the zoned area.

Tip : Contact your city`s business license department to find out about the requirements and the application fee for a business license.

2. County Permits

Some local governments require essentially the same type of permits or licenses as the cities. If your business operates outside of the city or town's jurisdiction, these permits apply to you. The good news is that the county regulations are usually not as strict as those of the adjoining cities.

However, it helps if you check with the local county government to find out the requirements, and verify whether the license is mandatory.

3. Business Signage Permit

Validity : Period Varies from one state to another

Some cities and the suburbs have sign ordinances restricting the size, the location, and sometimes the lighting and type of sign you can use outside the business.

If your travel agency does not meet the ordinances, you will most likely incur fines and possible restrictions in the future.

Therefore, check with the local authority department on the requirements for use of signage within different locations.

4. Travel Sellers Registration License

All you require to acquire the travel seller's registration license is filling a simple application form, paying a small fee and you can begin selling travel in the USA, so long as you have other relevant licenses and permits.

However, note that some states, like California, have their individual “seller of travel requirements”. For instance, the state of California will require all sellers of travel to register with the Attorney General's Office and to display the registration number on all advertising.

Verify the requirement within the state you intend to operate and submit the seller of travel registration application at your state department attorney general's office.

5. Certificate Of Occupancy

If your travel agency will run out of a physical location, you need the Certificate of Occupancy.

Typically, the certificate of occupancy confirms that you have met all building codes, zoning laws, and government regulations.

However, in the case of a leased office, the certificate of occupancy remains the proprietor's responsibility.

6. Business Insurance

Another legal requirement for starting a travel agency is business insurance. Ideally, the business insurance protects the company’s financial wellbeing in the event of a covered loss. While business insurance protects you from financial loss, insurance is also a legal requirement.

At the start, you could buy general liability insurance, which is a great place to start.

7. Employer Identification Number

The Employer Identification Number is also known as the Tax Identification Number (TIN).

You need the TIN while filing the IRS tax returns.

Since the IRS expects all the operators of travel agency businesses to file the taxes, you will need the Tax Identification Number. Refer to the here for more information.

8. Sales Tax License

A sales tax license, or what some states refer to as the sales tax permit, is an agreement with the state tax agency to collect and remit the sales tax on the items or services sold by a business.

The sales tax license is necessary if you plan to sell or provide certain tangible services such as airline tickets or tour packages to your customers.

9. Seller of Travel Bond

Validity : 1 Year.

The seller of travel bonds or travel agency bonds represents a guarantee for your business partners that the travel agency will clear all due payments on bookings made via your company.

Apart from protecting the business associates, the travel bond provides security to the customers who book to travel in advance.

In that regard, the travel agency bonds are a strong assurance to business partners that indeed, you are safe to work with.

The seller of travel bonds is renewable annually, and there is the option to renew the bond coverage each year.

Tip : Applicants with industry experience and strong personal credit can be approved at standard market rates of between 1 to 3%.

For customers with no experience or bad credit, rates for sellers of travel bonds will be higher, to account for the risk.

10. RV Drivers License / Commercial Drivers License

A majority of travel agencies are venturing into the RV industry. While the standard driver's license may be sufficient to drive your RV, you may need a special license or a commercial driver's license to register, own and operate the RV in some states.

Typically, the transport department requires a commercial driver's license to operate large or heavy vehicles.

Every state issues different licenses, and so you need to check the regulations and requirements applicable to your specific state.

11. IATA Number

The IATA accreditation is important since most airline bookings are done through the IATA portal.

The IATA accreditation is one of the most basic requirements for travel agencies. Note that the travel agency must get registered with the IATA as a travel agent.

Check IATA card eligibility here .

Setting Up Your Travel Agency (Formation and Legal)

When it comes to setting up your business, you may find yourself in a place where you have to make some financial and legal decisions.

The first thing you'll want to decide on is whether you want to be an LLC, S-Corp, or C-Corp.

These three options are found to be the most common when starting a small business, and all serve to protect your personal assets and also provide you with certain tax benefits.

  • LLC : All income and expenses from the business are reported on the LLC personal income tax return.
  • S corp : Owners pay themselves salaries + receive dividends from profits.
  • C Corp : C Corps are separately taxable entities that file a corporate tax return (Form 1120). No income tax is paid at the corporate level and any tax due is paid at the owners individual expense.

Depending on where you're conducting business, you'll also want to consider securing the proper permits, licenses and liability insurance.

Learn more about securing the right permits and licenses ➜

Need to start an LLC? Create an LLC in minutes with ZenBusiness .

How Do I Become a Registered Travel Agent?

The process of becoming a duly registered travel agent involves filling the license application forms and paying small fees.

Upon meeting the registration requirements, the relevant department will issue the registration number, which the travel agency must display at their place of business at all times.

What States Do You Need a License to Sell Travel?

Currently, 13 states have specific laws if you wish to be a seller of travel. The states are Nevada, Washington State, Massachusetts, Michigan, Virginia, Louisiana, Iowa, Illinois, Hawaii, Florida, California, New York, and Pennsylvania.

Among the 13 states, five states require registration as a seller of travel, regardless of where the agency is located. They are California , Florida , Hawaii , Iowa and Washington .

Is It Legal To Start An In-Home Travel Agency?

Yes, you can start and operate your travel agency business from home.

However, there are several legal requirements for starting a travel agency, and you must fulfill them to become operational. Besides, it is worth noting that in-home agency owners may experience zoning restrictions when it comes to scheduled walk-in meetings with their customers.

Therefore, before you decide to set up an in-home travel agency, check the zoning laws to find out if such operations will be allowed in your neighborhood.

Can I Start A Travel Agency Without IATA Accreditation?

Yes, you can start and run a non-IATA travel agency!

But note that while IATA accreditation may not be one of the legal requirements for starting a travel agency business, it may be an added advantage. Typically, to gain access to the airline's inventory, the travel agency must undergo the IATA verification.

That means once your travel agency is IATA accredited, you are no longer required to undergo the examination by the airline or the hotel chain supplier. Hence, compared to non-IATA travel agencies, the IATA compliant agencies enjoy a simplified booking process for their customers.

If you plan to become a professional travel agent, start doing some research to find out the type of license required.

Note that the licensing requirements in the US for the travel agents may not require testing, training, or even the qualification process.

However, you need is to ensure you have met the statutory requirements. For the travel agency, you may need the federal licenses/state licenses highlighted above.

travel agency legal requirements

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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

The sun sets over an urban skyline bisected by a river, all seen from the window of a plane

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

The roof of a Santorini cliffside resort, with cobblestone walls and whitewashed accents. Beyond the resort, the Mediterranean is bathed in a golden sunset

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

An elevated take on a rustic theme, with wooden floors, traditional Southwest rugs and wooden decor filling a luxury hotel room

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

ABOUT THE AUTHOR

Author - Fora Travel

We empower anyone with a passion for travel to transform it into meaningful revenue. Sign up to become a travel advisor today.

Anolik Law Group

621 18th St Oakland, California 94612 (415) 729-3748 [email protected]  

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Understanding Travel Agent Liability

(This may not be the same place you live)

  Are Travel Agencies Subject to Specific Laws?

Yes, travel agencies and travel agents are subject to specific laws. A travel agency is a business that makes arrangements for individuals who are traveling, including booking airline tickets and hotel rooms.

Travel agencies and their agents are subject to travel law. Travel law regulates the travel industry. Travel law includes:

  • Federal laws;
  • State laws;
  • Common law; and
  • International laws.

Each state has consumer disclosure and fraud statutes as well as refund policy requirements for businesses that arrange and/or sell travel services. Some states have created specific laws for regulation, registration, and licensing for those who sell travel. The majority of states do not require travel agents to obtain a license. However, California and Florida require travel agents to register with the applicable state agency.

What are the Responsibilities of Travel Agents?

What are the legal duties and obligations of travel agents, what is travel insurance, is trip insurance required, can my travel agent be liable for problems i encounter on my trip, do travel agents need insurance, do i need a lawyer if i have a claim against my travel agent.

Travel agents have many responsibilities. A travel agent definition is someone who sells and arranges transportation, accommodations, tours, and/or trips for travelers. They are fiduciaries , or representatives, of their customers. They are responsible for general duties in arranging travel plans. A travel agent should:

  • Make and confirm reservations, including itinerary changes and delivery of tickets;
  • Disclose the identity of tour operator and/or the supplier responsible for the services;
  • Vouch for the reliability of the supplier and/or provide a warranty for services;
  • Investigate the availability of travel services, such as cancelled flights and/or overbooked hotels;
  • Convey needed information and provide needed travel documentation;
  • Provide information on health and safety hazards;
  • Advise on the availability of travel insurance ; and
  • Inform customers of any restrictions on transportation tickets.

According to the state courts, travel agents have a higher standard of care because they have a special relationship with their customers. This includes special duties and obligations owed to their customers. Travel agents duties and obligations include:

  • A duty to warn the customer;
  • A duty to investigate and disclose;
  • A duty to inform;
  • A duty to make reservations; and
  • A duty to confirm reservations.

The duty to warn the customer includes a duty to reveal any negative information they have regarding the destination of the traveler. An example of this is if the traveler is going to a high crime area.

The duty to investigate and disclose includes a duty to investigate travel plans and be knowledgeable about the area to which the traveler is going. This includes knowing if there are certain conditions that would affect the consumers travel plans, such as a community event that may cause travel interference or delays.

The travel agent’s duty to inform means the agent has a duty to inform their clients about important travel information. They must inform clients about things such as:

  • Limitations on ticket changes;
  • Documents needed to travel;
  • Whether certain countries have requirements; and
  • The availability of travel insurance.

The travel agent has a duty to make reservations at the request of the customer. The travel agent also has a duty to confirm those reservations and make sure they are ready for the customer.

Travel insurance reimburses a traveler for costs related to events that may occur during their trip. It is designed to cover those who purchase coverage for financial implications of issues that may arise during their trip. It may include costs incurred prior to travel, such as non-refundable tickets or hotel stays and/or events that occur during a trip, including travel interruptions and medical expenses.

Travel insurance usually covers 5 main categories, including:

  • Trip cancellations;
  • Travel medical coverage;
  • Major medical coverage;
  • Emergency medical evacuation; and/or
  • Accidental death/flight accident.

Travel insurance is an optional coverage that the traveler can purchase when they book their trip. Should they wish, a lawyer can review the terms and conditions of any travel insurance.

As noted above, trip or travel insurance is an optional coverage a traveler may purchase prior to taking a trip. In most cases, an individual’s homeowner’s insurance and/or health insurance policies will cover any medical costs or lost property, while at home or traveling. An individual’s life insurance policy will usually cover the individual and their family members while traveling. Additionally, airlines must reimburse a passenger if they lose their baggage.

A traveler can also purchase trip cancellation or trip interruption insurance, which will cover any losses that are not covered by other insurance. This can be helpful to protect the cost of the trip, especially if it must be cut short due to unforeseen circumstances.

Travel can be extremely expensive, especially abroad. Trip insurance may assist with costs of travel delay and/or lost or damaged luggage if the airline fails to fully compensate the traveler. It may also protect a traveler from costly medical bills in the event they are injured or become ill during their trip. Trip insurance may cover extreme unforeseen circumstances such as emergency medical evacuation, accidental death and/or flight accidents.

There are times when travel agents may be liable for problems a customer encounters. Travel agents may be liable to their customers for:

  • Violations of general duties;
  • Fraudulent misrepresentations; and/or
  • Violations of applicable state regulations.

Some common issues travelers may encounter include:

  • A cancellation;
  • Discrimination;
  • Lost, stolen and/or damaged baggage;
  • A violation of consumer protection laws; and/or
  • A deceptive port charge.

Sometimes, when an individual books a vacation, they may have to sign a travel agency contract. These contracts are signed at the time the traveler books their trip. They may include:

  • Baggage fees;
  • Travel agent obligations;
  • Cancellations;
  • Payment terms;
  • Additional fees;
  • Travel documents;
  • Confirmations;
  • Governing laws; and/or
  • Any other necessary clauses.

Yes, similar to other commercial businesses, travel agents benefit from obtaining business insurance to protect them from liability. Travel agent or travel agency insurance often comes in 2 forms: professional liability insurance and general liability insurance.

Travel agent liability insurance, or professional liability insurance, protects a travel agent for any errors that occur in business activities. It also assists when the travel agent is sued by a customer for not providing the service that the customer was due to receive per their contract.

General liability insurance protects travel agents and travel agencies in their officers where they meet with clients. This is generally for protection in case a claim related to an injury, such as a slip and fall accident, occurs.

Yes, travel laws can be complex and vary by jurisdiction. An experienced business lawyer will be able to assist you with any aspects of travel law. Every state has specific regulations regarding travel sellers. Travel law includes domestic and international laws. For these reasons, it is important to obtain the services of a lawyer to help navigate any claims.

A lawyer can assist with reviewing any contracts and/or documentation and determine if a claim exists. A lawyer can also represent you during any court proceedings or alternative dispute resolution processes, if necessary. A lawyer can also assist you with any issues that arise from travel insurance.

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Travel agency license legal documents help register the business and get a registration certificate for the same in the United States as per requirements. The specific agency must approach a government office in the country to get the required documents. Let us learn more about the important aspects related to the travel agency license legal documents below.

Legal Documents for a Travel Agency License

Legal documents serve an important purpose in the travel agency license procurement process. Here is the main paperwork that holds importance:

  • Letter of Agreement: This is a legal and formal agreement signed between the particular agency and its respective clients and suppliers. The document covers important details. Examples include the scope of services, payment terms, and delivery timelines.
  • Service Contract : This legal document outlines the terms and conditions of certain services. Most of them are supposed to be provided by one party to another. It also specifies the responsibilities and obligations of the parties associated with the agency.
  • Statement of Work : This specific document outlines the specific tasks and timeline of some projects. It may also be for the deliverables of a particular service engagement.
  • Liability Waiver : This document releases the travel agency from liability. It usually happens in the event of an accident that causes property damage or personal injury during travel.
  • Vendor Agreement : This legal document is needed if a travel agency relies on vendors to supply the business with goods and supplies.
  • Affiliate Agreement : The contract is signed between the travel agency and its associated partners. Examples include different hotels and airlines.

Final Thoughts on Travel Agency License Legal Documents

Travel agencies sell different travel services on behalf of principal suppliers. These can be related to various tourist products and services, such as carriers and tour operators, for a commission. That is why these agencies need legal documents to operate in the United States. They can always approach professional lawyers to get help with such documents.

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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. 

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

Content Author: Briana Morgaine

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  • Business plan template and travel agency resources 

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Home Travel Industry Attorney Travel Industry Regulation and Compliance

Travel Industry Regulation and Compliance

Businesses in the travel industry must comply with many regulations and laws . In addition to legal compliance in the location where they operate, travel businesses must also be familiar with laws in host locations. Every state and country has different regulations that companies must comply with if they offer services within their borders.

It can be difficult to ensure compliance with an array of legislation throughout the United States and internationally. If you are operating a business within the travel industry, you should have general counsel on hand to answer your questions about travel industry regulation and compliance.

The Ment Law Group, PC has extensive experience working in the travel industry as well as with clients who operate tourism-related businesses. We can help you navigate the complex rules and regulations that must be recognized. Call us today at 866-MENT-LAW, or use our online form to schedule a consultation.

Seller of Travel Laws

Certain states are known as “seller of travel” states. These locations have enacted registration programs and financial security requirements for travel companies, travel agencies, tour operators, and others. If you sell travel to residents of those states, you must comply with specific laws prior to selling or offering to sell travel services to consumers.

Currently, only five states have seller of travel registration requirements – California, Florida, Hawaii, Iowa, and Washington. It is important to stay up to date on the regulations and legal requirements in these states and others in which you operate. If you fail to comply with seller of travel laws, you may be subject to fines and other penalties.

Financial Security Requirements in the Travel Industry

Many states, including seller of travel states, require businesses in the travel industry to prove financial security. This may include purchasing liability insurance or a bond to cover certain situations with consumers. In some states, a letter of credit, certificate of deposit, or trust account meets proof of financial security requirements.

When operating in multiple states, you need a travel lawyer who is familiar with the requirements of a variety of geographic locations. The Ment Law Group, PC offers services to companies nationwide, as well as those businesses that operate overseas. We can ensure that you meet the legal requirements of all the host locations in which you do business.

DOT Advertising Rules

The U.S. Department of Transportation (DOT) enforces advertising rules on airlines and other businesses in the tourism industry. Their goal is to help travelers understand advertising and encourage fair and honest communication between travel businesses and customers.

A skilled travel attorney can help you remain in compliance with DOT advertising rules. Attorney Jeffrey Ment was a sales manager for two major airlines, and he thoroughly understands the DOT advertising rules that you must follow. We can guide you through developing effective policies and dynamic advertising campaigns that comply with regulations.

DOT Baggage Rules

Whether you directly assist customers during their travel or provide services before or after their trips, it’s important to be familiar with DOT baggage rules. You must comply with these regulations or help your customers understand the requirements as they travel.

Although airlines are primarily concerned with DOT baggage rules, even travel agents will need to assist customers who have questions. You may want to create a guidance sheet for travelers to answer frequently asked questions about baggage.

We can help you with the following issues regarding baggage :

  • Reporting mishandled baggage
  • Enhancing traveler protections
  • Limits on baggage
  • Safety tips for travelers
  • Guidance for travel business and airline employees
  • Enforcement orders regarding baggage rules
  • Negotiating penalties with government agencies

Meet our Attorneys

Jeffrey L. Ment

Jeffrey L. Ment

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Legal Procedures to Create a Travel Agency

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A successful travel agent is an astute negotiator, well versed in navigating world travel, and an expert at finding enticing deals. Many professionals in the travel field are home based while others seek employment in brick and mortar establishments. If you love to travel, becoming an agent is a viable way to visit various destinations at a discounted rate. Prior to scheduling your first client’s trip, make certain you have met all the legal requirements.

Home-Based Agency

If you intend to run your business from your home office, inquire at your local municipal office for regulations pertaining to this endeavor. City governments often require a business license for home-based businesses. Additionally, local entities have zoning laws that regulate business and delivery hours, signage and noise issues. Certain homeowners’ associations institute bylaws pertaining to residential businesses. Check with your HOA to avoid violating their rulings. An optional business strategy is to join your local chamber of commerce. Not only are chamber meetings a place to promote your business, trained chamber personnel keep members informed of new local laws and regulations.

Business Names and Structures

Once you have created a memorable business name, you must register that name in your community. Each county has specific guidelines and timelines for registering a fictitious name. You must first make sure the name is not in use. Some counties have online systems you can peruse to check for an existing business name. Typically, the next step is to file a form and pay a fee. You may also be required to publish the name in a local paper by taking out an ad for a specified number of days or weeks. Another consideration is your business structure. Consult a tax account or attorney when deciding on options such as remaining a sole proprietor or forming a corporation or limited liability company

Licenses for travel agents are dependent upon state regulations. Some states, like California, require agents who "sell, provide, furnish, contract for, or arrange the retail or wholesale sea or air transportation" to attain a “Seller of Travel License.” The California Attorney General’s office enforces this law for agents who operate in California or sell travel to California residents. Thirteen other states each have specific regulations for obtaining this license. These states are Florida, Hawaii, Illinois, Iowa, Louisiana, Massachusetts, Michigan, Nevada, New York, Pennsylvania, Rhode Island, Virginia and Washington state. Additionally, the state where your business is located may require that you purchase a sales tax license.

Certification

Although certifications are not mandatory, earning an accreditation is a sign of credibility. If you intend to intend to work for a travel agency, that firm may require that you hold a certification. The Travel Institute, headquartered in Framingham, Massachusetts, offers a Certified Travel Associate designation. Applicants must possess a minimum of 18 months full-time experience prior to scheduling the exam. Cruise Lines International Association provides four levels of certifications. Requirements vary; components include coursework, cruise conference attendance and actual sales history.

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Jan Simon is a career and life coach with more than 20 years of experience in corporate human resources. She holds a bachelor's degree from Central Michigan University. Simon enjoys writing career articles and is a columnist for the CV Weekly. She also publishes a weekly blog called Life on the Sunny Side.

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Common Business Structures For a Travel Agency

Common Business Structures For a Travel Agency

To run a successful travel agent business , a company needs to establish the right legal entity. In the travel agency business, as in most other businesses, there are four basic business structures from which to choose. These include: sole proprietorship, limited liability company (LLC), a C corporation (C Corp), and an S corporation (S Corp). Each structure has its advantages and disadvantages that need to be considered before choosing one for your travel agency business.

Pros and Cons of a Sole Proprietorship

A sole proprietorship is a type of business that has no distinctions between the owner and the company itself. In other words, you are the sole owner, and all profits from this structure flow directly to you as an individual. This also means that you will be responsible for all of the debts and liabilities that may arise from your business.

Advantages of Sole Proprietorships:

  • A sole proprietor is taxed as a regular taxpayer along with any other income they make from their travel agency business (you don’t need to pay corporate taxes).
  • With this business structure, the owner is self-employed, so you don’t have to worry about formation or paperwork. This can be beneficial at the start of a business when there’s little need for funding. There are also no requirements for filing annual reports or paying fees to the state, which saves time and money during the initial stages of a business.

Disadvantages of Sole Proprietorships:

  • Liability is the biggest issue associated with a sole proprietorship. The owner of this business structure is personally liable for any debt or legal consequences incurred by the company.
  • Securing business loans can be difficult because there’s no collateral or separation between the business owner’s personal assets and those of the business.
  • The lack of an established record-keeping system and the absence of a legal distinction between the business and its owner can make it challenging for a sole proprietorship to expand.

This is a great option for small startups because it doesn’t require much paperwork. But, there are risks with this option. For example, if someone sues your business and wins, you will most likely have to pay for it personally. 

Pros and Cons of a Limited Liability Company (LLC)

This is a business structure that provides limited liability to its owners and requires the filing of an LLC application with the state. You can even have a single-member LLC. The business owner or owners of LLCs are not held personally liable for the business debt and the business has a legal distinction from its owners.

Advantages of Forming an LLC:

  • LLC owners do not have to pay taxes on their company’s losses and can choose how they want to be taxed, whether it’s as a sole proprietorship or partnership. 
  • LLC owners have access to a wider pool of resources and financing opportunities because the business is registered with the state. This type of legal entity also makes it easier for the company’s growth and expansion.

Disadvantages of Forming a Limited Liability Corporation (LLC):

  • It is necessary for travel agency business owners to regularly file documents with the state to maintain their LLC status.
  • LLCs can grow more complicated and expensive to maintain over time due to other fees that are required by the state.
  • As your company grows, it may need more legal counseling which can become costly.

In most cases, an LLC is a good business structure for a travel agency company that is looking to expand and grow into a larger venture with more employees.

Pros and Cons of a C Corporation (C Corp)

A C corporation is a type of corporation that is taxed separately from its owners. This means that the business pays income taxes on its profits and the shareholders also pay taxes on their dividends, even if those profits were taxed at the corporate level.

Advantages of a C Corporation:

  • C corporations have the ability to raise money through selling stock, which can be helpful for some growing businesses.
  • C corporations offer the opportunity for tax deductions that are not available to other types of businesses organizations. For example, a C corporation can deduct the cost of health insurance premiums for its employees.

This type of corporation is ideal for businesses that plan to have a large number of shareholders.

Travel Agency businesses that are looking to go public or partner with a larger company should consider a C corporation.

Disadvantages of a C Corporation:

  • C corporations are more expensive and complex to set up than other business structures.
  • C corporations are subject to “double taxation” on profits, which means the business and its shareholders are taxed on profits twice.
  • C corporations are subject to greater government regulation than other business structures.

In general, a C corporation is a good fit for travel agency companies that want to raise money from outside sources and have a large number of shareholders.

Pros and Cons of an S Corporation (S Corp)

An S corporation is a type of C corporation that was designed by the IRS to help small corporations minimize their paperwork while still gaining many of the tax benefits of incorporating.

Advantages of an S Corporation:

  • S corporations can take advantage of the reduced liability benefits typically associated with a C corporation, while still enjoying the tax benefits of being a sole proprietorship or partnership.
  • S corporations allow for pass-through taxation, which means there is no need to pay corporate taxes on company profits. The so-called “double taxation” issue of a regular corporation is solved with an S corporation because profits and losses are passed directly to the shareholders.
  • Travel Agency business owners can reduce their risk of liabilities by limiting their personal financial responsibility for company debt and litigation.

Disadvantages of an S Corporation:

  • S corporations have stricter requirements for shareholders and minimum distributions, which means a smaller pool of potential investors.
  • An S corporation is not allowed to have more than 100 shareholders. As a result, it can’t go public without first converting to a C corporation, and is somewhat limited in its ability to raise capital from investors (particularly individual investors, each of whom would be considered a shareholder). 

In general, an S corporation is a great fit for travel agency companies. You avoid double taxation, can raise money from outside sources, and you enjoy limited liability protection.

How To Choose the Right Structure for Your Travel Agency Business

When it comes to choosing a structure for your travel agency business, the best option is often determined by how quickly and ambitiously you want to grow.

Limited liability corporations and S corporations are better options for small businesses that hope to expand and grow into larger ventures with more employees. These structures help protect owners from personal liability issues while still allowing access to outside funding.

Sole proprietorships are good options for small travel agency businesses because they are quick and easy to establish, however, they offer limited liability protection

Overall, business owners should choose their business structure based on the type of work they do and their growth plans.

How to Legally File an LLC or Corporation for Your Travel Agency Business

If you have made the decision to form an LLC or corporation for your travel agency business, it is important to understand the legal process and requirements for doing so.

In order to form an LLC, you must file Articles of Organization with your state’s Secretary of State. This document will outline the business name and purpose of your LLC, as well as the names and addresses of its members.

In order to form a corporation, you must file Articles of Incorporation with your state’s Secretary of State. This document will outline the name and purpose of your corporation, as well as the names and addresses of its directors and officers.

Both the LLC and corporate filing processes typically require fees, which vary by state.

It is important to note that both LLCs and corporations are separate legal entities from their owners, meaning that owners are not personally liable for company debts or lawsuits.

If you need help filing an LLC or corporation for your travel agency business, it is best to consult with a tax adviser or an attorney who specializes in business law.

Travel Agency Business Entities FAQs

What is the best business structure for a travel agency company.

The best business structure for a travel agency business depends on the type of work they do and their growth plans. An LLC or corporation is a good option for small businesses that hope to expand and grow into larger ventures, while a sole proprietorship may be a good option for small businesses that don't expect to expand beyond a handful of employees.

Is a Sole Proprietorship or LLC Better for a Travel Agency Business?

Being a sole proprietor means that you are self-employed and own your business outright, so you are held responsible for all its debts and liabilities. All business income is also taxed as income on your personal tax return, including self-employment taxes.

On the other hand, an LLC offers limited personal liability protection for its members, and all income from the LLC is typically taxed at a lower rate than personal income.

Is a Travel Agency Business LLC or S Corp Better?

Both LLCs and S corporations are good options for travel agency businesses who want the limited liability protection of a corporation, with favorable tax treatment, and while still having access to outside funding. 

Does My Travel Agency Business Need an EIN?

An EIN, or Employer Identification Number, is a unique nine-digit number that is assigned to businesses by the Internal Revenue Service (IRS). It is used to identify businesses for tax purposes.

A travel agency business does not need an EIN unless they have employees. In that case, the EIN would be used to file employment taxes. This applies to both LLCs and corporations. 

Do You Need a Business Bank Account as a Sole Proprietor?

A sole proprietor does not need to have a separate business bank account, as all business income and expenses are considered part of the owner's personal assets. However, it is a good idea to segregate business and personal assets to make tracking and bookkeeping easier.

An LLC or corporation must have its own bank account, and all income and expenses should be tracked and filed separately.

There are a few different business structures available for travel agency businesses, each with its own advantages and disadvantages. The best option for your business will depend on the size and scope of your operation, as well as your personal liability tolerance. 

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Travel Agency

Back to All Business Ideas

How to Start a Travel Agency

Written by: Carolyn Young

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

Edited by: David Lepeska

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

Published on December 13, 2021 Updated on February 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.

travel agency legal requirements

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

travel agency legal requirements

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.

travel agency legal requirements

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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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.

Requirements to Start a Travel Agency

by Mariel Loveland

Published on 16 Oct 2019

Are you the kind of person who always finds themselves booking flights and hotels for friends and family? There’s a true art in scoring a great travel deal and planning a killer vacation, and if you’ve got the chops, you might want to consider opening your own travel agency. This exciting career has a low bar of entry because it requires no formal education, it’s pretty cheap to get off the ground and there aren’t a lot of requirements.

Unfortunately, travel agencies are falling out of popularity. According to the Bureau of Labor Statistics, the industry is expected to shrink by 6% between 2018 and 2028. Travel agents still make a median wage of $38,700, which can be adjusted as either a full-time or part-time income. All in all, launching your own agency is pretty low risk as long as you don’t go all-in off the bat. Consider these travel agency requirements before you get started.

Form Your Business

Before your business can make money, you need to set up the financial structure that helps you pay taxes to the IRS and lets you obtain a business license from local and federal authorities. Most start-up travel agencies choose between two options:

  • A Limited Liability Company (LLC): This allows you to hire employees or enter a partnership with another travel agent. This is a great option for one or more people launching an agency together.
  • A Sole Proprietorship: It’s free to register with your company name, but you’ll still need to grab an EIN (or employee identification number) from the IRS so you don’t have to use your Social Security number on tax forms.

You can even start your business as a sole proprietorship and then expand to an LLC, but you may wish to get that out of the way before your launch.

Get the Required Insurance

After you decide on your structure, you’ll need to purchase a minimum amount of insurance before you can get a business license from your local municipality. This includes general liability insurance or workman’s compensation if you plan on having employees, but there’s also specific insurance for travel agencies and tour operators. Talk with an insurance agent about your options, but expect to spend around $2,500 per year for a plan.

Travel Agency Requirements: The Licensing 

In the world of travel agencies, there’s something known as the Big Five SOT States. These states have Seller of Travel Laws, which means you’ll need a license to operate in those areas and to sell to residents in those areas. This includes Hawaii, Washington, Iowa, California and Florida.

Thankfully, travel agency licenses are all just red tape. There isn’t a travel agent test or any sort of education required. It’s really just a matter of filling out forms and paying a fee, which ranges from $15 to a couple of hundred dollars. Get this from your local municipality along with your business license.

Since every state varies and the regulations change frequently, it’s important to do some research. For example, Delaware isn’t part of the Big Five SOT states, but it does require a license if your business address is within the state. Nevada got rid of their SOT laws in 2015, and you never know which state is next.

Travel Agency Requirements: Accreditation 

Yes, travel is very easy to book in the world of online flight and hotel search engines, but an actual travel agency must be accredited by either ARC (the Airlines Reporting Corporation) or IATAN (International Airlines Travel Agent Network). The latter has been a standard in the travel and tourism industry for more than 25 years but charges a yearly membership fee of about $195.

Accreditation isn’t necessarily legally required if you’re an independent agent operating your own agency by yourself (i.e. you’re a sole proprietor), but not having it can hurt you. Once you’re working with the ARC or IATAN, suppliers will start paying you commission for booking their services and products. Unfortunately, you need to achieve a certain number of sales before you can become accredited.

For this reason, many travel agents get their start with a host agency before branching out on their own. These agencies are already accredited, have relationships with suppliers (meaning you’ll get a higher commission) and offer training and marketing support. In exchange, you’ll typically have to pay an annual fee ranging from around $200 to $500, but once you get enough regular clients, you can launch your own agency and seek accreditation independently.

Market Your Travel Agency

Once you’ve set up your agency, you need to find clients. You can do this by advertising in local papers or on travel websites. You should register your business with Yelp, TripAdvisor and Google and encourage customers to leave reviews. You might also want to consider a targeted social media marketing campaign.

Many travel companies work with influencers, who charge a fee per post. These influencers can blast out drool-worthy photos of fun excursions or gorgeous hotel rooms that you helped them book. Influencer marketing is generally a more successful approach than banner ads on smaller travel blogs or websites.

travel agency legal requirements

Small Business Trends

How to start a travel agency.

how to start a travel agency

If you buy something through our links, we may earn money from our affiliate partners. Learn more .

If you love to travel, are highly organized and enjoy working directly with people, becoming a travel agent is an awesome career choice.

You’d think with the ease of using search engines on the internet; the travel business wouldn’t be thriving. But it is.

According to statistics, a person may spend (waste) 20 hours on internet research before booking a flight. The internet is clogged with info, which is why the benefits of using a travel agent will always be valuable to most travelers.

What is a Travel Agency Business?

A travel agency is a company that provides travel and tourism booking services and planning for people. This can include making arrangements for things such as air travel, vehicle rental, hotels/lodging and travel insurance. Before you get started, find out how do travel agents make money and see if you can find out new ways to generate income.

Travel agencies can offer a wide range of services, including:

  • Booking flights and hotels: Travel agencies can help you find the best deals on flights and hotels. They can also book your transportation and accommodation and even help you with things like visa applications and currency exchange.
  • Planning itineraries:  Travel agencies can help you plan your itinerary, taking into account your interests and budget. They can also recommend popular tourist destinations and activities.
  • Offering travel insurance:  Travel agencies can help you purchase travel insurance, which can protect you in case of flight cancellations, lost luggage, or medical emergencies.
  • Providing customer service:  Travel agencies provide customer service to help you with any problems that may arise during your trip.

There are two main types of travel agencies:

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  • Retail travel agencies:  These agencies sell travel packages to the general public. They typically have a physical location, such as a storefront or a call center.
  • Wholesale travel agencies: These agencies sell travel packages to other businesses, such as airlines, hotels, and tour operators. They typically do not have a physical location and operate online or through a call center.

Starting a travel agency business can be a great way to turn your passion for travel into a successful business.

travel agency legal requirements

How Much Does It Cost to Start a Travel Agency?

The cost of starting a travel agency can vary depending on a number of factors, including the size of the agency, the location, and the type of services offered. However, in general, you can expect to spend anywhere from a few thousand dollars to tens of thousands of dollars to get started.

Here are some of the expenses you’ll need to consider when starting a travel agency:

  • Business license and permits:  You’ll need to obtain a business license and any necessary permits from your local government. The cost of these fees will vary depending on your location.
  • Travel agency software:  You’ll need to purchase or lease travel agency software to manage your bookings and reservations. The cost of this software will vary depending on the features and functionality you need.
  • Marketing and advertising:  You’ll need to invest in marketing and advertising to reach potential customers. The cost of this will vary depending on the channels you use and the reach you want to achieve.
  • Office space:  If you plan to have a physical office, you’ll need to rent or lease space. The cost of office space will vary depending on the location and the size of the space you need.
  • Staffing:  If you plan to hire employees, you’ll need to factor in the cost of salaries, benefits, and training.

In addition to these expenses, you’ll also need to factor in the cost of travel, meals, and other expenses associated with booking travel for your clients.

The good news is that there are a number of ways to reduce the cost of starting a travel agency. For example, you can use free or low-cost marketing channels like social media and email marketing. You can also start your agency as a home-based business, which can save you on the cost of office space.

How Much Can You Make Owning a Travel Agency?

The average salary for someone working for an established agency is $19 per hour. The average annual earnings for independent travel agents is $36,000. That varies depending on your geographical location and the type of travel business you’ve chosen as a specialty.

18 Important Steps to Start Your Own Travel Business

Here are key steps to take to get your start in the travel industry. You should decide early whether you want to work for a travel company or work on starting a travel agency.

travel agency legal requirements

1. Complete Relevant Training

Colleges and business schools offer associate and four-year degrees in tourism. There are some independent educators, such as The Travel Institute , which offer certifications.

All these studies will include courses in business management, marketing, accounting and customer service. As part of ongoing education, you should also keep tabs on international affairs and weather events.

2. Look at the Competition

Agencies in the travel industry typically offer all types of services but specialize in a certain niche. For example, some travel agencies focus on luxury travel, and some focus on the adventure travel industry.

Savvy travel agents know their competition well, especially before starting their own business.

3. Choose Between Host Agency, Independent Travel Agent, and Franchise

Under the umbrella of a host agency, you can work as an hourly or salaried employee. In addition to your regular pay, you may be eligible to earn commissions.

If you’re starting a travel agency, you’ll be working independently. Your source of pay will be the fees you charge clients plus commissions you earn from travel suppliers – such as airlines, hotels and rental vehicle companies. Some businesses function solely as online travel agencies, often focusing on arranging corporate travel.

You can also opt to purchase a franchise, such as Dream Vacations . A franchise will provide training programs. Both a host agency and a franchise have the advantage of existing vendor partnerships.

4. Find a Specific Niche and Target Market

Maybe your idea of a dream vacation is renting bicycles and traveling to an Inn in New England. Or you might prefer canoeing wilderness rivers, and staying in tents. Maybe you’d like to book an all-inclusive trip, where the price includes airfare, lodging, food and beverages.

Your preferences aren’t what’s most important. You need to think about your potential clients and customers. Learn the demographics of your local community area and the average income of potential customers.

5. Choose a Business Name and Register Your Travel Agency

Before you lock in on the name, go to the website for your secretary of state. That’s where businesses are registered. You can check to make sure the name you’d like to use isn’t similar or the same as a travel agency already in existence before you spend money on business cards or a website.

6. Write a Travel Agency Business Plan

Here are some helpful tips for making your business plan. A business plan should include key elements of a business plan for travel companies:

  • New business name and website
  • Business physical location
  • Business Structure
  • Niche in the industry
  • Forming partnerships (cruise lines, hotels, rental companies, etc.), especially once you’ve been a travel professional for over a year
  • Plans for marketing/expansion in the industry

7. Open a Business Bank Account

Opening a business bank account is a fundamental step for any budding travel business. It not only separates your personal finances from your business transactions but also enhances your professionalism.

When selecting a bank, consider factors like fees, transaction limits, online banking features, and customer service quality. Additionally, look for banks offering perks for small businesses, such as waived fees for the first year or low minimum balance requirements.

A dedicated business credit card is also advisable for handling business expenses and potentially earning rewards.

8. Make Sure You Have the Licenses and Permits Required in Your State

General Business License as required by your business location.

Travel Agents License – If required by your state.

Federal employer identification number (EIN) is needed for paying business and payroll taxes, if you have employees. You’ll need the EIN when you file taxes.

Zoning – If you’re working from a home office, you must make sure your residence meets the zoning requirements for home-based travel agents.

9. Create a Travel Agency Website and Choose a Location

You may start your own travel agency with the glitziest, most informative and most gorgeous website imaginable.

But its use will fail if it hasn’t been correctly linked – called search engine optimization. Unless you’re very savvy about this, it will pay you to hire a professional to make sure clients find your new company and social media accounts. That’s a key part of your marketing strategy.

travel agency legal requirements

10. Sort Out Your Accounting Software

You’ll need to manage travel contracts, travel bookings, invoices and receipts, vendors and more on the financial end. Here are some of our recommendations:

  • Fresh Books
  • itouroperator

11. Choose a Business Structure

You’ll need to choose a structure for starting your travel agency. Many travel agencies choose the Limited Liability Company or LLC. The LLC allows you to protect your personal assets, especially if you’re operating in your own home.

Other common structures chosen by many businesses in most states include partnerships and corporations.

12. Get Your Taxes in Order

Understanding and managing your tax obligations is crucial for a travel business. Firstly, obtain an Employer Identification Number (EIN) for tax purposes, especially if you plan to hire employees.

Familiarize yourself with the various taxes you’ll be liable for, including sales tax, payroll tax, and income tax. Use reliable accounting software to keep meticulous records of all financial transactions.

Consider consulting a tax professional or accountant to navigate complex tax regulations, ensure compliance, and identify possible tax deductions specific to travel agencies.

13. Purchase Business Insurance

There are common insurances needed, such as BOP (business operators), professional liability, commercial liability, errors and omissions, and general liability insurance.

If you’re going to sell travel, you need to offer travel insurance. What if travel restrictions suddenly impact a location? What if a natural disaster destroys the plans for a beach wedding destination?

14. Join Travel Associations

Here are a few which will serve as additional resources for you (help you with finding customers):

  • American Society of Travel Advisors
  • Association of Independent Tour Operators

15. Set Up Your Office and Invest in Equipment

You’ll need typical office equipment such as computers, software, internet, phone system and fax. If you’re offering travel services face-to-face, you’ll need comfortable furniture, a conference room, and ample parking.

16. Marketing

Effective marketing is key to the success of a travel business. Begin by identifying your unique selling proposition and target audience. Develop a marketing strategy that includes a mix of online and offline tactics.

Utilize social media platforms to engage with potential clients and showcase your offerings. Create informative and appealing content, such as travel guides, tips, and destination highlights.

Consider email marketing to keep your audience updated with the latest deals and offers. Attend travel expos and network events to build relationships and partnerships. Always track the effectiveness of your marketing efforts to refine your strategy.

17. Find Partners

Partners can include elements of a destination – a motel, B&B, restaurants, or spas, for example.

A partner can also be a media company, such as a newspaper, radio, or television station. You buy advertising with them and negotiate a reduced-price trip for an owner or manager.

18. Build Trust with Your Customers

Building trust with your customers is essential for the longevity and reputation of your travel business. Maintain transparency in your dealings, clearly communicate travel plans, and be upfront about costs and potential issues.

Provide exceptional customer service by being accessible, responsive, and empathetic to client needs and concerns. Encourage feedback and reviews from customers to improve your services. Develop a system to handle emergencies or unexpected travel issues efficiently.

Consistently delivering on your promises and providing memorable travel experiences will foster customer loyalty and lead to repeat business and referrals.

How to Compete with Big Brands in the Travel Industry

The travel industry is competitive, and it can be difficult for small businesses to compete with the big brands. However, there are a number of things you can do to give yourself a fighting chance.

travel agency legal requirements

Here are some tips on how to compete with big brands in the travel industry:

  • Focus on a niche market.  Instead of trying to compete with the big brands on everything, focus on a specific niche market that you can specialize in. This could be a specific type of travel, such as ecotourism or adventure travel, or it could be a specific group of travelers, such as families or business travelers.
  • Offer unique experiences.  Big brands often offer the same generic travel packages. To stand out from the crowd, you need to offer unique experiences that your customers can’t find anywhere else. This could be anything from a private tour of a hidden gem to a customized itinerary that’s tailored to your customer’s specific interests.
  • Provide excellent customer service.  This is one area where small businesses often have an advantage over big brands. Big brands can be impersonal and bureaucratic, while small businesses can provide more personalized and attentive service. Make sure your customers feel like they’re valued and that you’re going above and beyond to make their travel experience as smooth as possible.
  • Use technology to your advantage. Technology can be a great way to compete with big brands. You can use social media to connect with potential customers, use online booking tools to make booking their travel easy, and use analytics to track your performance and make improvements.
  • Be creative with your marketing.  Big brands often have big budgets for marketing, but that doesn’t mean you can’t compete. Be creative with your marketing and find ways to reach your target audience without breaking the bank. This could include using social media, running contests, or creating original content.

Here are some additional tips that you can follow:

  • Build relationships with travel suppliers.  This will give you access to better deals and will help you to provide your customers with a more personalized travel experience.
  • Stay up-to-date on the latest travel trends.  This will help you to offer your customers the most in-demand travel experiences.
  • Be flexible and adaptable.  The travel industry is constantly changing, so you need to be able to adapt your business accordingly.
  • Never give up.  The travel industry is a tough one, but if you’re passionate about travel and you’re willing to work hard, you can succeed.

Competition in the travel industry is fierce, but it’s not impossible for small businesses to succeed. By following these tips, you can give yourself a fighting chance to compete with the big brands.

travel agency legal requirements

What are the legal requirements for starting a travel agency?

The legal requirements for starting a travel agency vary by country and region but may include obtaining the necessary licenses, permits, and registrations.

How do I choose a niche or specialty for my travel agency?

Consider your interests, expertise, and target market to choose a niche, such as adventure travel, luxury vacations, or corporate travel.

What technology and software do I need to run a travel agency?

You’ll need travel booking software, customer relationship management (CRM) tools, and a user-friendly website to handle reservations and inquiries.

How can I build relationships with travel suppliers and vendors?

Attend travel industry events, join travel agent associations, and establish strong communication with suppliers to build beneficial partnerships.

How do I market and promote my travel agency to attract clients?

Utilize digital marketing strategies, social media, content creation, and collaborate with influencers to increase your agency’s visibility.

What financial considerations should I keep in mind when starting a travel agency?

Plan for initial startup costs, ongoing expenses, and potential fluctuations in the travel industry. Budget for marketing, staff, and technology investments.

How can I provide exceptional customer service and stand out from competitors?

Focus on personalized travel planning, attentive communication, and 24/7 customer support to create a memorable experience for clients.

Image: Depositphotos, Envato Elements

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What Are the Legal Considerations for Starting a Travel Agency?

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By Priscilla Ng

Updated on July 19, 2019 Reading time: 5 minutes

This article meets our strict editorial principles. Our lawyers, experienced writers and legally trained editorial team put every effort into ensuring the information published on our website is accurate. We encourage you to seek independent legal advice. Learn more .

What Services Are You Providing?

When is payment required, what personal information are you collecting, who is responsible for ensuring that proper visas are obtained, will you provide any insurance, what is your cancellations policy, what are you not liable for, key takeaways.

Are you thinking of starting a travel agency? If so, there are several legal considerations to think about before opening your doors. Having your terms and conditions in place from the outset will ensure that you encounter no roadblocks as you grow your business. This article will outline some of the key issues to consider before opening a travel agency.

You need to consider which services you will provide and which services you will not.

For example, you might decide that your travel agency will only book flights and accommodation or, alternatively, that you will also offer a service to book tours, events and transfers .

Some travel agencies also offer their own tours. You will need to decide whether you will provide such services. You should think carefully about this decision, as you will face different legal obligations if you act as a tour guide service as well as a booking agent.

In order to manage your clients’ expectations and avoid any disputes, it is important that you are clear on which services you will be able to provide and which services you will not.

Your clients may wish to book their holidays months in advance. In this case, you will need to decide when payment is required. To ensure that you receive payment, you may wish to require that clients make the full payment upfront. However, this may not be an attractive option for your customers. You will need to carefully balance security with your clients’ convenience. There are several ways to successfully achieve this balance.

For example, you might require that customers pay a 20% deposit upfront, with the balance being payable 30 or 60 days prior to departure. This ensures that you receive some payment upfront but gives clients sufficient time to pay off their bookings .

Under Australian law, you must tell your customers how you will collect, use, disclose and store their personal information. As a travel agent, you will undoubtedly be collecting personal information. For example, you may need to collect:

  • passport information ;
  • phone numbers ;
  • signatures ; and
  • bank account details .

Before you open your travel agency, it is important that you have a privacy policy in place setting out how personal information will be collected and stored securely.

Depending on the passport holder and the destination, some of your clients will need to obtain visas. As a travel agent, it is generally not your responsibility to ensure that your clients have the necessary visas. If it is the customer’s responsibility to obtain their own visas, you should include a disclaimer in your terms and conditions that clearly states that you will not be responsible for any refused entry into a country.

You should think about whether you will offer insurance to your clients. If not, you may wish to require your customers to obtain personal and medical travel insurance from elsewhere. If you require your customers to take out insurance, you should also require them to provide you with a copy.

If your clients book their holidays months in advance, there is a high probability that clients will occasionally wish to cancel or change their booking closer to the date. You should think about how you can draft your cancellations policy in a way that will allow you to minimise your losses and still keep your clients happy.

You must make clear what you will not be liable for. If something goes wrong on a trip, or if a hotel gets a booking wrong, your customers may come back seeking damages or compensation from you. It is extremely important that you are clear on what you will not be liable for. Your disclaimers and limitations of liability should be set out in your terms and conditions.

Setting up a travel agency has many legal implications. It is recommended that you consult with an experienced small business solicitor  to ensure that you understand your obligations and the risks involves in starting a travel agency.

Starting a new business gives rise to many important legal considerations. If you want to start a travel agency, you should make sure that you have thought about these issues before you open for business. This can help to avoid disputes with clients about payment, services or cancellations. If you need help setting up your travel agency, contact LegalVision’s business lawyers on 1300 544 755 or fill out the form on this page.

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Travel agency regulations: what licenses and law do you need to know about?

Our experts, written and reviewed by:.

This article is part of our guide on how to start a travel agency

Rules and regulations of running a travel business

You don't need any qualifications to set up as a travel agent, so in effect anyone could do it – although it will greatly increase your chances of success if you join a trade association. That is, customers and industry are unlikely to take you seriously without.

The most widely recognised trade association is the Association of British Travel Agents (ABTA) although this is also the most expensive and therefore aimed less at start-ups than the Travel Trust Association (TTA) or the Global Travel Group.

“I joined ABTA from the beginning,” says Martin Jones of Freedom Direct, a call centre based travel agency. “It has a regularly updated code of conduct and keeps me up to date with changing regulations and generally gives both my customers and me protection (insurance cover if the holiday falls through).”

You are required by law to provide a bond to reimburse clients if your company should fail financially, this is arranged with a bank or insurance company. Also, you have to have Air Travel Organisers Licensing (ATOL) which allows you to sell airline tickets. Without it you would be confined to providing accommodation and ground transport only.

Global Travel Group is a franchised operation so it holds bonds and ATOL centrally, whereas ABTA requires that you have a certain amount of capital to hold them yourself. The latter is more expensive, although it allows you to be more independent.

Membership of a trade association tells suppliers that you have a strong and supported business and customers will be reassured knowing their money is protected.

Written by:

Related articles.

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Washington Blade: LGBTQ News, Politics, LGBTQ Rights, Gay News

Are Md. prisons out of bounds with federal requirements for trans prisoners?

Department of Correctional Services says transgender prisoners ‘housed according to physical genitalia’

travel agency legal requirements

BY BEN CONARCK | Nearly a year after formerly incarcerated transgender people testified to Maryland lawmakers about the troubling conditions they faced in state prisons and Baltimore jails, the agency in charge of their care continues to violate federal standards in how it houses trans prisoners, according to a coalition of trans rights advocates.

The Trans Rights Advocacy Coalition, bolstered by policy experts and attorneys, contends that while the Maryland Department of Public Safety and Correctional Services has made some strides towards improving conditions, its policy of housing trans prisoners “according to physical genitalia” violates the federal standard that those individuals should be housed on a case-by-case basis determined by health and safety and any security problems, among other factors. The group laid out its argument in a 15-page memo presented to the department and lawmakers this week.

The rest of this article can be read on the Baltimore Banner’s website.

Baltimore County police arrest suspect in rape of transgender woman

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Baltimore County police announced Feb. 15 they had arrested and charged a 22-year-old man with first-degree rape, first-degree assault, armed robbery and firearm-related charges in addition to other offenses.

According to  a statement released  by police, Jalen Green was arrested in connection with a sexual assault that occurred in the 3000 block of Putty Hill Avenue in Parkville on Feb. 11 at approximately 3:30 p.m. 

Investigators say Green targeted a member of the transgender community through a dating app.

WBAL reported : 

According to the charging documents, the victim told officers that Green contacted her for sex in exchange for money. The victim told officers that Green pointed the gun at her and demanded money, the documents state.

Not having any cash, the victim said Green used her phone to send himself $100 in the Cash App and then stole two prescription bottles from the victim. According to police, Green then sexually assaulted the victim at gunpoint and recorded video on his cellphone.

The charging documents state that investigators recovered evidence from the scene, including DNA. A search warrant was being sought to recover potential evidence on Green’s cellphone, the documents state.

Investigators seek to hear from anyone who may have been in contact with Green.

The Baltimore County Police Department’s Special Victims Unit is seeking information from anyone who may have been in contact with this subject. Detectives can be contacted at (410) 887-2223. 

If you are a survivor of a sexual assault, you can contact the Sexual Assault Hotline for crisis counseling by calling (410) 828-6390. The Special Victims Unit also works with TurnAround who can be contacted by calling (410) 377-8111.

Green is being held without bond at the Baltimore County Detention Center.

Judge expected to hear case on May 21

travel agency legal requirements

BY CLARA LONGO DE FREITAS  | A Harford County judge on Wednesday late afternoon set a jury trial for 47-year-old man charged in the fatal shooting of  a transgender woman who was killed two days after Christmas.

Judge Yolanda Curtin is expected to hear the case on May 21.

The rest of this article can be found on the Baltimore Banner website.

Md. could become next state to pass trans sanctuary law

Senate Finance Committee heard bill on Thursday

travel agency legal requirements

BY ERIN REED | On Thursday, Maryland’s Senate Finance Committee heard  Senate Bill 119 , a bill that would make Maryland a sanctuary state for transgender individuals and providers fleeing other states. 

The bill would add gender-affirming care to  a law passed last year  that  shields abortion patients and providers  from out-of-state prosecution and investigations. Many more individuals testified in favor of the bill than against it, including Maryland state government officials who remarked on its necessity. 

If passed, the law would make Maryland the 12th state, not counting D.C., to do so.

The bill includes several protections for trans individuals. It would block the enforcement of out-of-state subpoenas for medical records and information on trans patients who seek care within Maryland’s jurisdiction.

It would also prevent foreign financial judgments from other states attempting to sue Maryland providers. It would prohibit liability insurers from taking adverse action against healthcare providers for providing gender affirming care.

Additionally, it would block the extradition of individuals who have received gender-affirming care in Maryland. Lastly, it specifies that the state cannot use state funds to provide “information, spend time or money, or use state facilities, state property, state equipment, state personnel or other state resource” in aiding investigations around gender affirming care — a virtually total barring of any enforcement of anti-trans laws in the state.

The state joined  several others  in providing protections for patients and providers when Gov. Wes Moore signed  an executive order  in June to enact many of these policies. Heather Forsyth spoke on behalf of the office of the Maryland Attorney General in favor of the bill at the hearing, stating that this bill would go farther than that executive order: “It’s both critical and urgent … The executive order provided some protections, but it couldn’t offer many of the protections this legislation would provide.”

travel agency legal requirements

Among the things she stated this bill would do beyond Moore’s executive order:

  • It would prevent liability insurance from taking adverse action on providers for providing gender affirming care.
  • It would ensure license and regulatory boards could not take adverse actions for providing gender affirming care.
  • It would place limits on subpoenas, wire tapping, ex parte and foreign judgments that target care provided within the state of Maryland
  • It would go into law and protect transgender people regardless of who holds the governor’s office.

Forsyth was not the only one to speak on behalf of the bill from the Maryland executive branch. Ryan Moran, representing the Maryland Department of Health, also testified to the importance of the bill, emphasizing that “Maryland remains a leader in supporting trans people’s rights to equitable healthcare and safety.” Moran highlighted the growing list of Republican states banning gender-affirming care as a reason for the bill’s necessity: “These list of states are growing … the states include criminal penalties against health officials providing gender-affirming care.”

The hearing also saw testimony from representatives of large hospitals and medical associations. Michael Huber, representing Johns Hopkins University and School of Medicine, asserted that gender-affirming care is “medically necessary, lifesaving, evidence-based and age-appropriate healthcare.” 

Pam Kasemeyer, testifying on behalf of the state medical society, the Academy of Pediatrics, the Mid-Atlantic Community Health Centers, and the American College of Obstetricians and Gynecologists, stated that the bill was needed due to “legal challenges and fear” from out-of-state actors targeting care in the state.

These challenges and investigations are indeed unfolding. Recently, Attorney General Ken Paxton  made national headlines  by subpoenaing the medical records of patients who traveled from Texas to Seattle Children’s Hospital for gender-affirming care.  Similar subpoenas  have been issued to gender-affirming care clinics in other states. 

Meanwhile, 19 Republican state attorneys general  have signed a letter  asserting their right to medical information from other states, indicating that this tactic may be employed against both transgender individuals and those seeking and providing abortions moving forward.

Only a three people testified against the bill — one concerned citizen, a representative from the Maryland Family Institute, a religious organization, and Health Choice Maryland, an anti-vax organization.

The bill will need to pass a committee vote before moving to the full Senate floor in the coming days.

****************************************************************************

Erin Reed is a transgender woman (she/her pronouns) and researcher who tracks anti-LGBTQ+ legislation around the world and helps people become better advocates for their queer family, friends, colleagues and community. Reed also is a social media consultant and public speaker.

Follow her on X ( Link )

******************************************************************************************

The preceding article  was first published  at  Erin In The Morning  and is republished with permission.

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Guía turística de Moscow

Planning a trip to Moscow? Our travel guide contains up-to-date, personal information on everything from what to see , to when to visit , where to stay , and what to eat !

  • General Information
  • What to see
  • How to get to Moscow
  • Where to stay
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Why visit Moscow?

Majestic churches, impressive historic fortresses, and palatial buildings: Moscow is a fascinating city whose emblematic architecture reflects the turbulent history that has defined Russia throughout the centuries.

The traces of the USSR can be found around every corner of the city , side by side with the iconic relics of Imperial Russia , like the mythical Red Square , the imposing Kremlin , and the beautiful  St Basil's Cathedral . 

Discover a fascinating world of Cold War bunkers, golden-domed basilicas, world-class art museums, and the legendary "palace of the people,"  as the Moscow Metro has been nicknamed. Whether you fancy watching a classical Russian ballet at the Bolshoi Theatre , perusing the fine arts at the Pushkin Museum , or marveling at the sheer size of the monuments to the Soviet state's achievements at the  All-Russia Exhibition Centre , this travel guide will help you on your way!

Where to start?

If you're going to travel to Moscow and you don't know much about the city yet, the first thing to do is to dive into its legendary history - understanding the past will help you understand the present. Next, check out our practical hints and tips on traveling to the city before discovering which of its most important museums , monuments , and attractions pique your interest.

Looking for a place to stay?

Booking your accommodation in advance is the best way to get great discounts. Our detailed guide on where to stay in Moscow  will help you decide which neighborhood you'd like to look for hotels or apartments in, and our hotel search engine will find you the best deals!

Why is our Moscow travel guide the best?

Introducing Moscow is a  city guide written by travelers for travelers  and contains personalized advice to help you make the most of your trip to the city.

All the information in this guide is valid as of December 2022. If you find any errors or have any comments, please feel free to contact us .

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Our travel guides

  • top attractions
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  • Saint Petersburg
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We provide authentic, informative and memorable tour packages and city tours, at very competitive prices. Visit Moscow Tours are available not only in Moscow, but also in other cities: Saint Petersburg, Kazan, Suzdal and Sergiev Posad.  We also organise customised individual programs tailored just for you.

Our guests come in large groups, small private groups, as couples or as single travellers. We take care of and treat our guests with respect in a friendly and warm family environment. We show people our beautiful cities with passion and deep knowledge of their history, culture and traditions.

Our guides are extremely hospitable, helpful and well-informed. They are simply the best because only by providing the best services can we make the world fall in love with Russia. And we are very happy when our guests say that they will definitely come back to Russia and that they will tell all their friends how great Russia is! That is what inspires us to put even more dedication and hard work into our tours, knowing that what we do is positive and meaningful.

Our classic tours include tours of Moscow and Saint Petersburg, two main Russian cities.

Moscow is a big and busy  megalopolis and Russia’s capital city, where more than 12 million people live and work. Our capital city is happening place; it is mysterious, elegant, luxurious, fashionable, clean and bright, with its unique legends, traditions and events. It is with great pride that we show the Red Square and the Kremlin, our Underground and Tretyakovskaya Gallery, among other stunning attractions.

Saint Petersburg is our second capital,  the second largest city in the Russian Federation. This wonderful city has a strong and lively aristocratic spirit, uniquely Russian royal architecture, magnificent museums and theatres. Saint Petersburg bears the royal heritage of Russia, which can be felt in its air, its streets, parks, monuments, museums and citizens.  In Saint Petersburg tours, we will take you to the Hermitage, Peter and Paul Fortress, Faberge Museum and Orthodox Cathedrals. We’re sure you will love it!

If you have a few more days to spare, venture into the dreamy Russian countryside in Suzdal or Sergiev Posad. Suzdal is a small town with a population of about ten thousand people, situated on less than 15 square kilometres. This tiny area is home to 53 historic cathedrals, five monasteries and a kremlin. Church domes are visible like mushrooms from anywhere and everywhere in the town like in a fairy tale. No wonder Suzdal is called the ‘Town Museum”.  It is definitely worth visiting!

Just try any of Visit Moscow Tours’ tour packages or any individual city tour, and we promise that you will want to come back to Russia again.  Russia is huge with countless amazing places to visit. There are so many unique experiences to be had and energies to be felt that one tour is definitely not enough to explore this vast land. It is also a very safe destination to travel, and we have a tradition of warm hospitality. Our people adore and take care of visitors as our own guests, and even if they do not know your language very well, they still try to be helpful and hospitable.

Our guides will show you the most interesting attractions and historical places, taking you on a journey to the past to enjoy stories of medieval times, the Romanov monarchy, the Soviet Era. And of course, we will show you the contemporary life of our country through authentic local experiences.

We look forward to meeting you soon!

8 interesting facts about the Hermitage

COMMENTS

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    Grand Russia is DMC Travel Agency that offers full range of travel services in the entire country such as visa support letters (tourist invitation letter), transport services - from private vehicles up to 60 pax tourist coaches, professional tour guide assistance, domestic railway and airline tickets, hotel booking services, meals (of any preferences and rare food habits), tailor-made ...