How to Start a Travel Agency

When you know the travel niche you want to go into, make sure you have a compelling and unique tourism proposition. Your USPs set you apart from competitors and encourage customers to come to you.

Having competitors is a good thing as it shows there’s a market, but if there are too many, you’re likely to struggle without a really good unique selling point. See how many other tourism experts operate in your chosen niche.

Clearly identify exactly who your vacation and travel customers are likely to be, where they hang out and how you’re going to reach them. This will be essential to your marketing, communications, sales and customer support.

Speak with potential vacationers to understand what they want from your travel and tourism services. Ask about what they need from you to plan the perfect vacation or getaway.

Get involved with business communities and discussion groups

Many new tourism entrepreneurs choose to be work-from-home travel agents. In almost all cases this is the right choice, as you will be able to prove out your travel agent business model before investing in separate or shared office space. Don't forget that if you work from home, you can write off part of your utility and housing costs against your taxes.

You will need a separate business bank account for your travel agency business. You might also want to consider a business credit card. Additionally, you will also need to keep careful bookkeeping records and file business and personal taxes. Here at Bizee we can even help you file your taxes.

Marketing is everything to a travel agent, and you will want the right mix of marketing channels to target your specific niche. Email, social media and your travel agency website are the most popular channels for travel agents, although newsletters, community events and local networking are also useful ways to reach new customers.

The right software and processes will make running your travel agency business much easier. See our list of the best apps and software at the end of this guide. You may also want to look into specialized travel agency software that can integrate with major tourism providers and make planning your itineraries and bookings that much easier.

The equipment needed to run a travel agency business is likely to just be a computer and a smartphone. Of course, you will also need to invest in good travel agency software that will make administering your tourism business that much easier.

To begin with, you probably won’t need to hire anyone else for your travel agency business, especially if you’re a good administrator.

Depending on the state you’re located in, you will probably have to file a report every year. This report tells the state about any major changes to your business, and we can file your Annual Report on your behalf.

You will be expected to pay estimated taxes on what you plan to earn in the current business year. Typically, you will need to pay estimated taxes in April, June, September and January (of the following year).

Your federal, state, regional and city licenses and permits may need to be renewed on a regular basis, typically once a year.

You will need to file your taxes once a year.

If applicable, you will need to make payroll and sales tax payments on a regular basis.

You will need to work with your accountant to prepare all the taxes you need to pay.