How to Start a Travel Agency: Key Steps to Launching Your Business

If you’ve ever wondered how to start a travel agency, this article is for you. It’s a comprehensive guide for aspiring entrepreneurs with tips to jumpstart your business today.
You’ll walk step-by-step through the essentials of starting your travel agency, including:
- Creating a business plan
- Understanding licensing and certifications
- Estimating start-up costs
- Setting up an online or physical presence
- Marketing your business
You’ll also get advice on managing clients and sending invoices. Plus, tips on setting up your accounting software to bill customers and generate revenue.
Let’s dive in.
Why Start a Travel Agency? Benefits and Opportunities

Starting your own travel agency has multiple benefits. First, it lets you work for yourself. You can generally keep your own hours and don’t have to report to a boss.
Many aspiring travel agents look at starting a travel agency from home so they don’t have to worry about commuting or managing a physical office.
You can also perform this job without a college diploma. However, business, geography, or foreign languages courses are a plus.
If you enjoy travel, being a travel agent will undoubtedly be interesting. You can learn more about different destinations and even get discounts for your own vacations.
For about a decade in the early 2000s, travel agents went out of vogue. This was due largely to the advent of the internet and self-booking flights and hotels. But eventually, that global interconnectedness resulted in a huge travel boom.
Now, travel agencies are making a huge comeback. Many people desire long, complex trips they can’t arrange for themselves. Or they want assistance should something go wrong. Think about things like canceled flights or overbooked accommodations.
According to the US Bureau of Transportation Statistics, 1.6% of US flights were canceled between January and September of 2024. Nearly 40% were delayed in the first half of the year.
Given some of the horror stories about travel problems, both in the US and internationally, there’s definitely a need for help rebooking. Fortunately, the outlook for travel agents is good, with employment expected to grow by 3% in the US over the next decade.
Creating a Travel Agency Business Plan
To start a travel agency, you should have a business plan like any other venture. A business plan will serve as your roadmap as your company takes off. It will also be required if you want business loans or lines of credit.
Business plans are all structured similarly. But the details are specific to your industry and company:
- Executive summary — an overview of your business and why you started it
- Market research — your typical clients and travel agent competition
- Company structure — if you have employees and how you incorporate
- Services offered — what you provide to customers and your pricing
- Financial projections — profit and loss statements
- Business goals — for starting out and for the next five years
Consult with a certified public accountant (CPA) when assembling the fiscal parts of the travel agency business plan. Your CPA can also be a lifesaver when filing your tax returns.
RELATED ARTICLE: Small Business Tax Returns: Everything Business Owners Need to Know
Licenses, Permits, and Start-up Costs for Travel Agencies

There are currently no travel agency licensing requirements in the United States. However, some states and municipalities require you to register as a travel agent.
Are you planning to sell travel packages in other English-language markets? You will need licensure and bonding in the UK and some Canadian jurisdictions. There is no licensing required in Australia. But accreditation is recommended, such as with the Australian Federation of Travel Agents (AFTA).
Similarly, travel agent certification and training are highly recommended in the US. Possible qualifications you may want to seek include:
- The Travel Institute
- Cruise Lines International Association
- Global Business Travel Association
- American Society of Travel Advisors
- United States Tour Operators Association
- US Travel Association
Do you plan to book international travel? If so, you should apply for International Air Transport Association (IATA) accreditation. This also gives you access to their Billing and Settlement Plan (BSP) to book airline tickets.
It’s worth noting that the above accreditations are a must if you want to operate as an independent travel agent. But you also have two other options:
- Travel agency franchise — part of an existing brand, which may or may not have its own accreditation
- Working with a host agency — an umbrella organization that has its own accreditation
Only you can decide which business model is best for you.
This is a good place to mention start-up costs for new travel agents. Depending on how you want to operate and where you are, you should think about these potential expenses:
- Licensing or registration fees
- Accreditation and coursework
- Business insurance (cyber, liability, etc.)
- Travel and itineraries software
- Customer relationship management (CRM) software
- Accounting and billing software
- Office equipment and supplies
- Accountant or attorney fees
- Incorporation fees
- Advertising
- Entertaining and socializing
- Physical space needs (rent, furniture, etc.)
- Answering service for off-hours contact
How to Build an Online or Physical Travel Agency Presence
To attract clients, you will need an online presence. You may also wish to have a physical location. Let’s talk about your online business first.
You should have a website that includes the following pages:
- Home page with general information about your company and your unique selling proposition (USP) or what makes you stand out
- About page with your background and qualifications
- Services page with a list of services you provide (pricing optional)
- (Optional) testimonials and reviews page from satisfied clients
- Contact page with information about how you can be reached
- (Optional) blog page to educate readers about travel
Be sure to fill the site with plenty of words your ideal customers would use when searching for a travel advisor online. This is called search engine optimization (SEO).
FROM ONE OF OUR PARTNERS: The Simple Guide to Building Your Small Business Website
You also want to have a social media presence. Rather than trying to manage accounts on all platforms, pick a couple where your customers are most likely to hang out. Set up a business profile or page rather than a personal one.
Don’t forget to set up accounts on a few review sites as well. A profile on Google Reviews or Yelp lets customers leave feedback to encourage more clients.
Finally, you may want to advertise online. Depending on where your customers are, that might include Google ads or Facebook ads, as well as advertisements in local media.
Having a physical location can be costly. But it may be worth it if you can generate a lot of foot traffic. For instance, having an office in a large office building or the center of town might pay off. Again, it’s all about being where your customers are.
The main goal with a physical presence is to let people know you’re there and what you do. Make sure you have signage identifying the business and make it attractive to customers. Beautiful travel posters, like in the 20th century, are still a great way to entice visitors!
Managing Clients and Sending Invoices
Your clients rely on you when traveling. Therefore, how you manage them is integral to your success and your reviews. Remember, reviews can bring you new business and more revenue.
Follow these tips for success in this area:
- Make sure you have a way for customers to reach you 24/7. Be aware that time zone differences may mean you occasionally get emergency calls in the middle of the night.
- Always follow up with client leads and existing client questions right away.
- Keep a file system on each client or group trip to stay organized and document everything.
- Use invoicing software like Invoice Simple to streamline billing. This is convenient for customers and increases prompt payments.
Tips for Marketing and Growing Your Travel Agency

Expect to do some marketing to grow your travel agency, especially when starting up.
Here are some expert travel agency marketing strategies you can use to attract new business:
- Decide what kind of customer you want to work with (general, business, families, seniors, etc.). Your background, location, and personal interests may affect this decision.
- Make connections where your customers are likely to be found. This can include churches, sports clubs, senior centers, and office parks.
- Consider where the most money in travel agency work comes from if this is your prime concern. Perhaps medical, luxury, or wedding travel is a good specialty for you to pursue.
- If your market spends little time online, consider using print marketing, like brochures.
- Offer a new customer discount, if possible, or rewards to existing customers for referrals.
First Steps to Starting a Travel Agency
Are you excited about starting your travel agency? Use these steps to get going today:
- Start by meeting any legal or official requirements. This includes licensing, registration, and incorporation. You may need to do this in conjunction with your business plan.
- Once your agency is formally established, open a business bank account. You want to separate your personal finances from your business ones.
- Think about areas where you could fill a niche in the travel industry. Do you speak a foreign language fluently or have experience working for hotels? Have you traveled extensively for hobbies like fishing, horseback riding, or photography? Use those special interests to find like-minded customers and solve their travel problems.
- Make connections in the industry with hotels, airlines, cruise lines, car rental companies, and the like. This will help you when a customer has an emergency or special request.
- Be sure to study the competition in your region or your niche. What are they doing right? What could you improve on?
- Try to automate as many administrative processes as possible with software. For example, your accounting software should let you create invoice templates so you aren’t creating new invoices for every customer.
RELATED ARTICLE: Travel Agency Invoice Templates
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