travel agent business how it works

How to Become a Travel Agent—Because, Believe It or Not, the Industry Is on the Rise

There’s a reason “how to become a travel agent” has been a continuously trending search phrase on Google—it is a career path that offers a flexible work environment and schedule, ample travel opportunities, and an immersion into a supportive world-wide industry. It's a surprise to some in 2023: Once the internet became widely available, it was largely believed that needing a travel agent was obsolete. However, even though the brick-and-mortar agencies with punny names in strip malls have vanished, the career is on-the-rise .

New software options are making it easier than ever for people to make money planning trips, either as a side hustle or as a full-time business. That’s why Cherikonda, India-based stay-at-home mother, Maya Kapoor-Miller, decided to enter the professional world as a travel agent this year, at 31. “I knew nothing about the travel industry prior to signing up,” says Kapoor-Miller, who decided to use San Francisco-based booking platform Dreamport to establish her online travel advisor business. “It is my first business in life, and the only one that you can start with no investment.”

But there's also a rise in demand. When people ventured back into the world after the pandemic, travel agents saw an overwhelming amount of business . And that momentum hasn’t stopped—when travel is complicated, like it was in 2020 and 2021, travelers turned to professional trip planners to create a seamless vacation. For better or worse, traveling has remained complicated and chaotic, with new rules being implemented (like Americans needing to pay a fee to visit Europe in 2024 ) and airline strikes and staffing issues. Offloading all of the nitty-gritty details to someone else is more appealing than ever.

For those entering the field, there's also the age-old motivator: a love of travel. 

Shelton Ellis, who is based in North Carolina, recently saw these opportunities and left behind more than 20 years in public relations and global advertising to turn his passion into a career. “I was born with a wanderlust that would wear Rick Steves out,” Ellis says. “I decided to take the leap and follow that lifelong yearning. Transitioning into this role was really about learning how to monetize what I'm passionate about.”

Whether you are looking for a new career path or a lucrative side-hustle—or simply curious about those taking the plunge—here’s how to become a travel agent, from the qualifications and education required, to anticipated earnings, according to those who have made the shift in the past year. 

What exactly does a travel agent do?

Travel agents, or travel advisors (the term is mostly interchangeable), manage everything that goes into a trip for their clients: the flights, car transfers, accommodations, restaurant reservations, and more—they even inspire the itinerary. The reason people turn to travel agents, aside from having a helping hand during any travel chaos , is also to tap into the travel agent’s first-hand knowledge of destinations, and their industry partnerships, which often lead to perks such as hotel upgrades, ideal airplane seats, and experiences that can’t be found on a search engine.

“You have to remember that as a travel agent, you will be a guide for people during their happiest moments—family reunions, weddings , baptisms, and once-in-a-lifetime experiences that people have dreamt of,” says Kapoor-Miller. “It has been one of the most rewarding aspects of being a travel agent. You navigate people, inform them, and help them choose.”

So, how do you become a travel agent?

There are many ways to become a travel agent, from joining an existing travel agency , to starting an independent business from the ground up. Others are opting for one of the buzziest start-ups in the travel industry, Fora . When it launched in 2021, the software company, which trains and provides search engine-optimized profile pages to advisors—at one point had a waitlist of over 30,000 people eager to begin a part-time gig. Travel photographer and Condé Nast Traveler contributor Amanda Villarosa is currently in the process of joining.

“I'm the person that friends and family come to for travel recommendations, tips and tricks, and general travel advice,” says Villarosa. “After discovering Fora and looking into it, I realized that it could be the perfect side-hustle, considering I'm already so involved in the industry.”

With additional flexibility, Villarosa was able to move from New York City to splitting her time between Denver and Los Angeles . She says that the sign-up was quite straightforward. “You're given a dedicated Fora email and have access to advising tools and fellow Fora advisors,” she says. “The training is in the form of Zoom meetings and videos, which you have the option to watch at your own pace. Once completed, you take a certification quiz and you're on your way to advising.”

The other ways in are slightly more involved. To begin an independent practice, you go about it like many other businesses. You will have to create an LLC, establish a business name, cultivate marketing materials, build a website, find clientele, and more.

Ellis found something in the middle, choosing to connect with an established travel agency. “Don't be afraid to reach out to an agency looking to take on new advisors and is willing to mentor," says Ellis. "I was fortunate to learn so much from Annie Chambers, the owner of Crafted Escapes , who has seven years in the business.” He now knows the ropes on everything from using itinerary-building software to destination-specific training, to the sales and marketing aspects of the trade.

Is there required education or qualifications?

Ellis says that there's no certification, per se, required to become a travel advisor, but there are countless training courses available like Departure Lounge ’s classes on navigating the industry through hotels and tour operators. He said it’s also important to stay on top of travel trends. Ellis recently completed travel agent training programs provided by premier cruise lines such as Virgin Voyages , Ritz-Carlton Yachts , and Cunard to help agents sell their products more accurately.

How much does a travel agent make?

What a travel agent earns depends on how many trips they successfully book for their clients. The entire model is commission-based, meaning agents earn a percentage of the total cost of the vacation they orchestrate. Many travel advisors choose to charge a flat-rate planning fee in addition to their commission, but balance is key—if you charge a high planning fee, it could lead to potential clients going elsewhere.

Fora ’s website states that “some of our full-time, expert advisors earn well into the six figures (or beyond).” So a lucrative career may be on the horizon, for those who are able to build a robust client base and excellent industry connections.

How much you make can also depend on where you live around the world. “I am being paid in dollars,” says India-based Kapoor-Miller. “So the currency fluctuations of the local exchange rate are not something I am worried about.”

What are the key skills required to become a travel agent?

“Travel agents need a mix of customer service, communication, destination knowledge, organizational, and problem-solving skills,” says Kapoor-Miller. “But I would say that adaptability, flexibility, curiosity, and cultural sensitivity top them all—you have to put yourself in other's shoes, and understand the requirements, hopes, and expectations of your clients along with any worries and questions they may have.”

It’s vital to have a passion for traveling, even the aspects of the process that aren’t as exciting, such as learning about new airline routes, train schedule updates, and industry news. “It can be an information-heavy hustle, and I believe it's important to be excited about it as that energy definitely transfers to your clients and partners,” Villarosa says.

Should travel advisors choose a specialization?

Many travel advisors have found success through becoming an expert in a few types of travel and destinations. “It's important to become an authority and learn as much as you can through personal experiences and continuing education,” says Ellis. “As a proud member of the LGBTQIA+ community , an avid snow skier, and scuba diver, I know not only the popular destinations but others that are off the beaten path, equally safe and adventurous for all travelers.” This helps travel agents establish a competitive edge, and hopefully convince potential clients to choose them for their expertise.

What are the benefits of being a travel agent?

“Flexibility tops them all,” says Kapoor-Miller. “And the ability to start without industry knowledge. If you worry that you are too old for this job, the good news is that this is a job you can enter and enjoy at any age.”

Another great perk is the "Familiarization trip,” says Ellis. “Tourism boards and hotels invite agents to visit and familiarize themselves with a particular country and its properties. After all, any accomplished salesperson should learn everything they can about their products first-hand...even if they're in Bora Bora.” It's hard work, but someone's got to do it. 

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Travel Agency Business Model: What It Is and How it Works

In 1758, Cox & Kings became the first travel agency in modern history. Since then, the traditional travel agency model has grown and evolved into a $149 billion industry while the new online traveling agency model generates over $400 billion. It’s clear that this is a business model that has withstood the test of time. Let’s take a look at this business model , its advantages and disadvantages, how it makes money, and a few examples.

The Travel Agency Business Model

The travel agency business model is a framework that travel agencies use to provide travel-related services to customers. At its core, this model involves acting as an intermediary between clients and various travel service providers, such as airlines, hotels, and tour operators.

Travel agencies understand customer needs, preferences, and budgets to create personalized travel experiences. They leverage their expertise and industry connections to access information and deals not readily available to the public. Typically, travel agencies earn their income through commissions from the service providers they book with, service fees charged to clients, or a combination of both.

However, technology has expanded how this model works and how it generates revenue. No longer are commissions the only method by which agencies make money. As the world has changed, so has this model and its income-generating capabilities. Let’s take a look at a few different ways to make money from this model.

How Travel Agencies Make Money

Traditionally, the way travel agents generate revenue is the same way other businesses using the agency model make their money: through commissions. When an agent or agency recommends a hotel, cruise, or airline, they receive a commission from those entities. The size of the commission usually depends on the type of service purchased. For example, hotels typically offer a 10% commission per booking. 

On the other hand, c ruises offer up to 18% commission to agencies for vacation packages sold. 

• Commission from bookings : Earn a percentage from bookings for hotels, airlines, cruise lines, and tour operators.
• Service fees: Charge for personalized services like itinerary planning, booking assistance, and on-trip support.
• Travel insurance: Sale of travel insurance to clients for additional income and enhanced customer service.
• Exclusive tours and packages: Organizing and selling their own tours and packages for higher profit margins.
• Travel-related merchandise: Selling merchandise related to travel.
• Strategic partnerships: Leveraging partnerships for mutual promotions and additional revenue.

Types of Travel Agencies

Traditional brick-and-mortar agencies.

Traditional brick-and-mortar travel agencies are physical establishments where clients can walk in and consult with travel agents face-to-face. These agencies offer a personal touch, with experienced agents providing customized travel planning services.

They are particularly valuable for complex travel arrangements, like multi-destination trips, cruises, or group travel. Traditional agencies often build strong local customer bases and can provide a level of detail and customer care that is hard to match online. They are ideal for customers who prefer in-person interactions and seek expert guidance and reassurance throughout the booking process.

Online Travel Agencies (OTAs)

Online Travel Agencies, or OTAs, operate strictly on the internet. Travelweb.com and Expedia were among the first online travel agencies that helped visitors find hotels and flights without working with a human agent. Sites like Travelocity and Orbitz soon followed. Eventually, those agencies were acquired by Expedia Group. 

OTAs provide the advantage of easy comparison shopping, allowing customers to quickly compare prices and options for flights, hotels, car rentals, and more. They often offer competitive pricing and are accessible 24/7. However, they may offer less personalized service compared to traditional agencies. OTAs often make money using different pricing models.

Here are some examples of the different pricing models used by OTAs:

• Airbnb – Peer-to-Peer Model
• TripAdvisor – Advertising Model
• Booking.com – Agency and Merchant Model
• Travelocity – Merchant Model

Airbnb, which was once known as a rental company has pivoted into a travel agency. 

Specialty Travel Agencies

Specialty travel agencies focus on particular types of travel or destinations. These agencies create a unique selling point by offering expert knowledge and specialized services. This category includes agencies that specialize in areas like luxury travel, adventure tours, eco-tourism, or specific regions of the world.

They cater to niche markets and provide in-depth knowledge and unique experiences tailored to their clients’ interests. For example, an agency specializing in safari tours would have detailed knowledge about various African destinations. They would also know the best times to visit and any unique accommodations. These agencies are ideal for travelers with specific interests or who are seeking an extraordinary travel experience.

Corporate Travel Agencies

Corporate travel agencies specialize in handling the travel needs of businesses and organizations. They manage business trips, conferences, and other travel-related needs for companies. These agencies are adept at navigating the complexities of business travel, such as corporate rates, expense management, and travel policy compliance.

They offer services like 24/7 support, travel risk management, and detailed reporting. Corporate travel agencies are essential for companies looking to streamline their travel processes, ensure the safety and comfort of their traveling employees, and control travel-related expenses. AMEX GBT and TravelBank are a few examples of the leading corporate travel agencies out there.

Pros of the Travel Agency Business Model

The travel agency business model, despite its challenges, offers several advantages that make it a viable and often preferred choice for many travelers. These benefits not only help travel agencies attract and retain customers but also provide them with unique opportunities to stand out in a competitive market.

Personalized Customer Service

One of the primary strengths of travel agencies is their ability to offer personalized customer service. However, this is true for brick-and-mortar agencies. OTAs have very few personalized services other than those recommendations offered by the site’s algorithms or targeting cookies.

Unlike online booking platforms, retail travel agents can provide a high level of personal attention. They understand that individuals have different preferences, needs, and budgets.

This personal touch allows them to craft travel experiences that are tailored specifically to each client. This can be particularly valuable for complex itineraries, special occasions, or for travelers with specific needs. The ability to offer bespoke travel planning and problem-solving during trips creates a customer experience that automated services simply cannot match.

 Diverse Revenue Streams

One of the major advantages of the travel agency business model is the potential for diverse revenue streams. Travel agencies can earn income through various channels such as commissions from travel providers (like airlines, hotels, and tour operators), service fees for specialized itinerary planning, and the sale of travel insurance. This diversification allows agencies to maintain a steady income even if one particular source declines.

High Client Retention Rate

Travel agencies often enjoy a high client retention rate. In the hospitality and travel sectors, the typical client retention percentage ranges around 55%. By providing personalized service, expert advice, and hassle-free travel planning, agencies can build a loyal client base. Satisfied customers are likely to return for future travel needs and recommend the agency to others, which is invaluable for long-term business growth.

Scalability in the Travel Agency Business

Scalability is a standout advantage in the travel agency business model. Initially, a travel agency can start small, focusing on a niche market or a specific type of travel service. As the business gains a foothold, it can incrementally expand what it has to offer. This could include adding new destinations, diverse travel packages such as luxury tours, budget trips, or adventure travel, and broadening the range of services including corporate or group travel management.

Importantly, the scalability of a travel agency does not necessarily require a proportional increase in overhead or resources. This aspect allows for sustainable growth. As a result, travel agencies can scale up (or down) in response to market trends or economic conditions. This also means that they can pivot because of consumer preferences. 

For example, in the 1990s Acapulco was a highly desired destination. However, in the 2020s travelers are flocking to Dubai for their getaways. Travel agencies can quickly pivot in order to give clients travel options while not needing to change their business operations.

Cons of the Travel Agency Business Model

Increased competition.

One of the most formidable challenges facing travel agencies today is the heightened level of competition. With the advent of online booking platforms, such as Expedia and Booking.com, and direct booking options offered by airlines and hotels, traditional travel agencies find themselves competing in an increasingly crowded market.

These online platforms often provide customers with a convenient way to compare prices and book travel services directly, bypassing the need for an intermediary. Additionally, they are typically available 24/7, offering a level of convenience that traditional agencies struggle to match.

This shift has not only squeezed the market share of traditional travel agencies but also put downward pressure on their pricing and service fees.

Dependence on External Factors

One notable disadvantage of this model is the high level of exposure to external factors. Their operations and profitability are closely tied to global and regional dynamics. As most know, these can be unpredictable and highly impactful. Geopolitical events, such as political unrest, terrorism, or diplomatic tensions, can abruptly make destinations less appealing or even inaccessible. When these things happen, it can lead to a significant drop in bookings and revenue. Similarly, economic downturns can quickly change travel patterns, with people cutting back on discretionary spending like vacations, directly affecting travel agency sales.

Natural disasters, health pandemics, and environmental concerns also play a major role in influencing travel decisions. For example, during the first year of the COVID-19 pandemic, global road travel and commercial flight activity decreased by 50 percent and 60 percent . 

Also, currency fluctuations and changing visa regulations can impact international travel trends. A strong currency in a key market can deter travelers. On top of that, stricter visa regulations can reduce the number of inbound tourists. These elements make planning and forecasting exceptionally challenging for travel agencies, requiring them to be adaptable and resilient in the face of constant change.

Low-Profit Margins

The travel agency business is characterized by relatively low profit margins, a significant con in its operational model. This challenge stems from several factors, including intense competition with online travel platforms and direct booking options offered by airlines and hotels, which often feature lower prices and more direct control over the customer experience. In order to remain competitive, traditional travel agencies are often compelled to offer compelling deals, which can further compress their profit margins.

Commission-based income, which is a primary revenue source for many travel agencies, presents its own set of challenges. These commissions, often a percentage of the total booking cost, can be modest, especially with suppliers increasingly reducing commission rates. Furthermore, the growing trend of suppliers offering the same or lower rates directly to consumers further exacerbates the pressure on profit margins.

Time-Intensive Operations

The operation of a travel agency is often a time-intensive endeavor, which can be a significant downside of this business model. Crafting personalized travel experiences, which is a key selling point for many agencies, requires meticulous planning, extensive research, and constant communication with clients and suppliers. This level of customization and attention to detail is labor-intensive and time-consuming, especially when catering to clients with specific or complex travel needs.

Furthermore, the nature of the travel industry demands that agencies remain responsive to client needs around the clock, especially for clients who are actively traveling. Dealing with last-minute changes, addressing travel disruptions, and providing support across different time zones can be demanding and reduce the time available for other business activities.

For small or independent travel agencies, where resources are limited, this time commitment can be particularly challenging. Balancing the need to provide high-quality, personalized service to existing clients while simultaneously engaging in marketing efforts, business development, and administrative tasks can stretch resources thin. This time pressure can limit the agency’s ability to scale up, as acquiring new clients and expanding services requires additional time and effort that may not be readily available.

As we mentioned before, it appears that this is a business model that is here to stay. The travel agency model has many traditional elements of a successful business model but has also integrated modern methods with the advancement of technology. Entrepreneurs and business owners considering this model should take the time to understand the benefits as well as the risks involved.

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Ralph is the Managing Editor at StartUp Mindset. The StartUp Mindset team consists of dedicated individuals and is designed to help new, seasoned, and aspiring entrepreneurs succeed.

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What is a Travel Agency? Types, Purpose, Function, Services

Home » Blog » What is a Travel Agency? Types, Purpose, Function, Services

The travel agency business is now something that most people want to do.

The main purpose of a travel agency is to make planning a trip easier and more useful for their customers by giving them information and making reservations .

Flights, hotels, transportation, trips, and other events can all be booked through the travel company.

If you learn about tour-related ideas and get knowledge from these articles, you’ll be able to start your travel agency in the travel industry. 

Table of contents

What is a travel agency, 1. traditional travel agencies, 2. online travel agencies, 3. corporate travel operators, 4. consolidators, 5. franchise travel services, 1. convenience, 2. expertise and advice, 3. access to deals and discounts, 4. risk management, 5. customer services, 1. travel planning, 2. booking services, 3. customized itineraries, 4. travel documentation, 5. emergency support, 6. customer services, services offered by travel agency, 1. booking services, 2. information and advice, 3. customer services, 4. negotiation and coordination, differences between travel agency and travel agent.

A travel agency is a business that helps people and groups choose, plan, and book travel-related services . Flights, hotels, rides, trips, sports, and other things can be a part of these services.

Most travel companies know about a lot of different trips that their clients can take that fit their wants and budgets.

A lot of travel and tour operators also hire people called tour agents who know a lot about important things like visa rules, places to visit, and travel trends. 

They plan and organize everything so that their clients’ trips are as easy, fun, and stress-free as possible.

Explore the beginner’s guide to launch your travel agency

Types of Travel Agency

Several types of travel agencies meet the wants and tastes of different travelers.

These are the most common travel agencies related to the travel industry:

These agencies are physical office companies where customers can go and talk to the tour planners. They give specialized services and often a wide range of trip needs.

Online Travel Agencies(OTAs) run the online trip business, where their websites or mobile apps provide tourists with book flights, rooms, rental cars, and other trip services. Expedia and Booking.com are some examples.

The corporate travel service makes trip plans for companies and groups. They take care of bookings for businesses, make deals, and offer services like keeping track of costs.

Consolidators buy a large number of plane tickets at a discount, they sell them at a lower price to travel companies or directly to customers.

Franchise companies work under a bigger brand name and use marketing, technology, and support systems in the travel industry that have already been set up. 

Within the franchise network, owners of travel companies get the training and tools they need to run their businesses.

Purposes of Travel Agency

The main purpose of travel agencies is to facilitate and enhance the tour experiences for individuals and groups. 

Travel companies try to make planning a trip easier by letting people book flights, hotels, transportation, events, and other services related to travel all in one place. 

Trip planners hire knowledgeable agents who can offer expert advice and recommendations based on their suggestions of different places or destinations.

Similarly, travel agents shared their experiences of various destinations, travel trends, visa requirements and more.

Explore this article “How To Start A Travel Agency In Australia? (8 Steps)”

Airlines, hotels, ship lines, tour operators, and other travel companies often offer deals, discounts, and packages that only travel agencies can get.

They can help customers get the most for their money and save money on their trip costs by taking advantage of deals.

Travel agencies help mitigate risks associated with travel by giving travelers information or knowledge on safety, health issues, and security in different places.

Travel agencies or companies make sure their clients are happy by giving each one of them high-quality service and individual care.

Overall, the travel company’s main goal is to make planning a trip easier, more fun, and less stressful for their costumes by giving them advice, making things easier.

What does Travel Agency do?

Many services travel agencies offer to make it easier and better for people and groups to trip.

One of the things that a travel agency does is the following:

Travel agencies support the client in planning their trips by talking about their tastes, hobbies, income, and any special requirements they may have.  

These companies are called travel agents that help people book flights, hotels, rental cars, airport transfers, trips, events, and other services related to travel. 

They can use online tools and scheduling systems to get reservations for their clients.

Most tour operators make personalized trip plans based on what their clients want and what they’re interested in. 

It supports you on trip documents like passports, visas, travel insurance, and any other paperwork that is needed is available from travel companies. 

Before a client leaves on a trip, they make sure that all of their paperwork is in order.

Travel companies are there to help their customers in case of accidents or other problems that come up during their trip. 

In this case, they might rebook flights, arrange alternative accommodations, or give advice on medical help or legal issues.

Tour Operators prioritize customer happiness first by giving each client great services and individual care.

There are a lot of services travel agencies provide to meet the news and preferences of travelers. 

Trip planner aims to ease the trip planning process, provide expert advice and support, and ensure a smooth and enjoyable travel experience for their clients.

These are some common services provided by travel agencies.

• Flight Booking
• Accommodation Booking
• Transportation Services
• Tour Packages
• Cruise Booking 
• Travel Insurance
• Visa Assistance
• Destination Recommendations
• Emergency Assistance

Overall, the travel agency’s purpose is to ease the trip schedule process, deliver expert advice and support, and provide smooth and enjoyable trip experiences for their customers.

Let’s launch your travel booking website today

Functions of the Travel Agency

The main function of a travel agency revolves around assisting and arranging various parts of travel and people and groups. 

The purpose of a travel agency is to ease the trip planning process, provide expert advice and support, and improve the entire trip experience for their customers.

Here’s an overview of the key tasks of a travel agency:

Travel agencies handle the planning process for flights, lodgings, transportation, trips, events, and other travel-related services.

Most travel agency provides guidance and formation on different parts of the travel, visa requirements, and health and safety measures. 

Travel companies put customer happiness first by giving each client great service and individual care.

The travel agencies deal with tour operator suppliers, including airlines, trip suppliers, and hotel and tour operators to secure good terms and rates for their clients.

A trip agency is a business company that offers other-related services, while a trip agent is a person hired by or connected with a tour operator who helps clients with their trip planning and bookings. 

These are some key differences between a travel agency and a travel agent:

In summary, travel agencies may have multiple trip agents working under their umbrella to help the clients, while a tour agent may work separately as a part of a bigger company.

Travel companies are essential businesses in the travel industry, acting as intermediaries between tourists and travel providers. They offer a range of services to ease trip planning and booking.

These companies can take the form of standard brick-and-mortar businesses, or online-based platforms. 

Each type of service responds to different tastes and wants, providing accessibility to a wide range of travel-related customers. 

Regardless of their form, the primary goal of travel companies stays consistent: to provide ease, knowledge, and support throughout the trip process. 

They give personalized systems to help, access to exclusive deals, and 24/7 assistance before, during, and after the trip.

By offering personalized solutions and reducing travel risks, travel companies play a crucial role in allowing enjoyable and stress-free travel experiences for individuals and groups.

There are two types of agencies, retail tour operators and wholesale travel agencies.  These travel companies, as well as tour providers, operate as intermediaries. The main goal is the buying and selling process in the travel business.

The global market size of the travel agency industry is estimated at nearly 296 billion U.S. dollars as of January 2024. ( Source )

Overall, roughly 589 thousand travel companies operated in the tourism industry, with employment reaching approximately three million.

Yam Bahadur Chhetri is a content writer and vivid contributor to the WordPress community and a WordPress enthusiast with an experience of 7+ years in the relative field. He also loves to develop WordPress Themes, Plugins, and custom WordPress development for clients.

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Starting a Travel Business: How to Become a Travel Agent

Briana Morgaine

17 min. read

Updated March 18, 2024

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 one-page 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.

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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.

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.

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
• 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:

• 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
• 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
• 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
• 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. 

Bri Morgaine is a seasoned content marketing leader with a decade of experience in copy editing, social media operations, and content strategy— having honed her skills at industry giants like Palo Alto Software and Andreessen Horowitz.

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How to Start a Travel Agency: Everything You Need to Know

Learning how to start a travel agency can result in a lucrative career. 3 min read updated on February 01, 2023

How to Start a Travel Agency

Learning how to start a travel agency can result in a lucrative career. According to data from the Travel Industry Association of America (TIA), more than $1.3 million is generated from travel and tourism in the U.S. You can leverage this lucrative market by providing convenient, valuable services to businesses, individuals, and travel groups.

What Is a Travel Agent?

A travel agent is a professional who offers a range of travel-related services. Some of the most common areas of expertise include:

• Comprehensive arrangement of all travel details, including itineraries that fulfill the client's areas of interest
• Obtaining the best prices on travel and lodging
• Making airline reservations, cruise tickets, accommodations, and other arrangements
• Creating specialized tour packages
• Planning destination weddings, conventions, and other business and social events
• Selling travel insurance
• Consulting with the client about passport and visa requirements for their destination, as well as travel advisories, required vaccinations, and other details
• Advocating for clients if travel-related problems arise
• Providing outstanding, detail-oriented customer service

Travel agents earn money through service fees charged to the client as well as commissions paid by the bookings you make for your clients. Many travel agents work from home, while others work in an office location. You'll need to have good software knowledge, extensive customer service skills, and rich and varied travel experience. You can decide to become an independent consultant for a travel agency, own a franchise of an established agency, or start an independent agency. 

Consultants and franchise owners may be limited in the services they can provide, while starting your own agency allows you more freedom and often, higher profit. However, starting your own agency requires more extensive planning and higher start-up costs associated with a home office set-up and initial marketing services as you work to build a clientele, as well as software costs and setting up a website.

Independent agents will also need to apply for an IATA number with the International Air Transport Association . This will allow you to book flights on behalf of your clients.

Advantages of Travel Agents

Clients often choose to use a travel agent since professionals can access supplier and vendor portals that are not open to individual customers. They may also be able to get special promotions and perks that can be passed along to their clients thanks to their close relationships with these suppliers and vendors. If something goes wrong during a client's vacation, the agent will often be able to fix the problem quickly and effectively.

Plan Your Travel Agency

A business plan is the essential first step when starting your own business in any industry. The specific type of plan you'll need depends on the amount of funding you plan to seek. A formal business plan with plenty of detail is required if you're seeking capital from an angel investor or venture capital firm. Opt for a lean business plan if you are starting a business with your own savings. You can also start with a lean plan and add more detail as time goes on. Because the travel industry is quite fragmented, choose a specific niche to help distinguish your new agency from the competition. Writing a business plan can help you establish and work toward your vision. 

Conduct Market Research and Find Your Niche

A thorough examination of the market will help you decide what type of agency is missing, leading you to your niche. This will then help you create a brand, choose a name, and develop other aspects of your fledgling business. Know who your major competition will be and develop a persona that describes the wants and needs of your ideal customer. 

Brand Your Travel Agency

Once you understand your customer, competition, and niche, it's time to develop a strong brand. This will tell your desired customer who you are and help you get a foot in the door of this competitive industry. Choosing a name is an important aspect of your brand, whether you're setting off on your own or working as an independent consultant with a host agency. You'll also need a logo and other marketing materials.

If you need help with the legal aspects of starting a travel agency, you can  post your job  on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.

Hire the top business lawyers and save up to 60% on legal fees

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Travel Agency

Back to All Business Ideas

How to Start a Travel Agency – Learn from Real Entrepreneurs

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 July 3, 2024

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 .

Aspiring travel entrepreneurs will find valuable insights in our interview with Augustin Ndikuriyo on building a thriving African wildlife tour business .

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/ ))

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

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 ))

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.

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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13 Steps to Start an Airbnb Business

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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.

You could specialize in family vacations, corporate retreats, or honeymoons. The potential niche options in the travel industry are nearly endless.

What? Determine your services and travel offerings

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

Step 3: Brainstorm a Travel Agency Name

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”
• A location-based name can help establish a strong connection with your local community and help with the SEO but might hinder future expansion

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

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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

Here are the key components of a business plan:

• 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.

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.

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

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We recommend ZenBusiness as the Best LLC Service for 2024

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.

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.

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!

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.

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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Everything You Need to Know About Becoming a Travel Agent

Here's what you should know before becoming a travel agent.

If you're someone who spends your days scanning flights , loves hotel rewards points, and in general, is a fervent traveler, you've probably wondered how to become a travel agent.

And, while it's true that living in the age of Expedia means travel agents are not as vital as they once were, people use them a lot more than you might think. Just because travelers aren't calling up an agent every time they need to book a quick flight doesn't mean they don't want to consult an expert for a big trip. This holds especially true when it comes to honeymoons or experiential trips that have a lot of moving parts — coordinating tour companies , translators, or multiple resort stays, for example. It's often easier to leave the logistics to someone else: travel agents.

You don't need a specific employment background to become a travel agent, so if you're looking for a fresh career start, that's totally OK. You have to start somewhere on your path to becoming a travel agent, and the sooner you jump in, the sooner you'll build your client base. On the other hand, if you're hoping to parlay your experience in a semi-related industry, be it marketing or hospitality, that can help because you'll have even more context for your new gig. Either way, this can be a rewarding career path (with some fun perks), so here's what you need to know to become a travel agent.

Formal Training Needed to Become a Travel Agent

While some four-year colleges, community colleges, and trade schools offer tourism certifications, it is not a requirement for those trying to become travel agents. Certificates of tourism can be very helpful, but so can previous training in marketing, hospitality, or even event planning. Ultimately, your knowledge of destinations, sales, itinerary planning, and booking software will be crucial for your career as a travel agent.

In terms of the training time you need to put in before becoming a fully-fledged travel agent, it depends. You could start your career right after high school, or you could put in one to four years to earn a certificate, associate's, or bachelor's degree in tourism. Of course, you could also change course from a related job, and morph your experience as, say, a destination wedding planner into a career as a travel agent.

Training Programs Available

You could take classes with a company like The Travel Institute to earn your certification. Not only will they teach you the basics of planning itineraries, but they'll also make sure you're learning about new cultures, world geography, and experiences you can have all over the world. They'll also help you decide what business route you want to take.

The Worst Mistakes You Can Make When Booking a Hotel, According to Experts

How to become a travel agent: the logistics.

Becoming a travel agent will likely mean starting your own business . On the plus side, it requires relatively little overhead. If you're becoming a small business owner by opening a yoga studio, for example, you will need to rent a space, deal with permits, buy supplies, build a website, and pay yoga teachers and someone to work the front desk. However, if you're starting a travel agent business, you can operate from your living room and there aren't nearly as many upfront costs.

You will have to think about what type of business you want to become. Do you want to incorporate or become an LLC? Would you rather be a sole proprietor? Incorporating takes the most effort, and is often the most expensive. Becoming an LLC is a good happy medium because it can help protect you as a business entity without having as many associated costs. Small business owners typically become an LLC to protect their personal assets. If you get sued as an LLC, someone can come after your business holdings, but can't come after your house, car, or personal savings.

If you choose to remain a sole proprietor (which doesn't require any fees or legwork), you are essentially a freelancer or independent contractor. You can be an LLC and an independent contractor, too — they aren't mutually exclusive. If you want to be an independent contractor, it likely means you're working as part of a larger host agency, which is smart to do when you're starting out as a travel agent. Down the road, you can also own a travel agency franchise. Owning a franchise might come with more overhead costs, and that would be a reason to incorporate.

If you're an independent contractor, you should know that your taxes aren't going to be as straightforward as a full-time employee's might be. You may have to start keeping track of your business expenses, as you might be able to write them off. You also might not get things like health benefits from your employer. As you plan your new career, consider sitting down with an established travel agent to ask them some logistical questions: Where do they get their health insurance? How do they keep track of their income and expenses? Do they use an accountant to do their taxes? While meeting with the travel agent, you can discuss the pros and cons of working for a larger agency, too. If you're not sure how to get in touch with other travel agents, consider using social media, like LinkedIn or even Instagram.

What to Think About When You Become a Travel Agent

Once you've secured work as a travel agent, you'll want to think about how you can earn more money and distinguish yourself from other agents. Here are three things to consider as you start your career.

Making Commissions: If you're working for a larger travel agency as an independent contractor, how do commissions work? Make sure you have this conversation early on before accepting the position. When you're starting out, you want to make sure the commission rate you're receiving is similar to the industry standard.

Growing Your Client Base: How do you make more money as a travel agent? Clients, clients, clients. You want happy customers who will return to you every time they want to book a travel experience. You'll want to keep your clients happy by finding them great deals, curating unbelievable experiences for them, and simply being great to work with.

Establishing a Niche: This is by no means a requirement for becoming a travel agent, but as you establish your career, you may want to consider focusing on a specific niche. For example, perhaps you're someone who focuses on honeymoon travel , luxury travel, or adventure travel . Your niche can help you attract clients, and it can be anything in the travel realm, as long as there's a need for it.

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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:

• 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.

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.

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.

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.

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.

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 does a travel agency do?

What does a travel agency do? You will almost definitely have heard of travel agencies if you have ever booked a holiday or have an interest in the tourism industry. But what exactly is a travel agency, and what do they do?

What is a travel agency?

Independent travel agents, online travel agencies , visitor information centres, other types of travel agency, what can a travel agency book, big names in the travel agency industry, travel agency business model, a brief timeline of travel agencies, further reading.

A travel agency is essentially the ‘middle man’ between travel companies and the general public i.e consumers. They book all sorts of travel-related experiences for customers on behalf of larger companies.

The main aim of a travel agency is to make the booking process simpler for the public, who might lack the time or confidence to book trips themselves.

Types of travel agencies

So what does a travel agency do? It mostly depends on what type of travel agency you’re looking at. This can be broken down into the following types…

An independent travel agent is the type you’ll see on Instagram or with their own Facebook pages, their feeds full of snaps from Amsterdam, Bali , or New York City. They tend to partner with a ‘host agency’, who will take a portion of the agents’ commission themselves in exchange for letting them use the company software and access their commission. Travel agents are also able to recruit other people, and in turn get a cut of their commission too. In this way, independent travel agencies tend to be a type of multi-level marketing scheme.

Online travel agencies are much more consumer-focused. They allow individual customers to book their own travel, but as a package or with the added protection from ATOL and ABTA. They act as a broker, allowing you to input your dates, desired destination(s), what board basis you wish to travel and so on. The site then pulls together a package deal, allowing you to book everything in one go with access to booking details so you can make amendments and keep up to date with any changes.

While these don’t offer flights and hotels generally, visitor or tourist information centres are found within cities or tourist destinations. They provide advice, maps, discounts and booking services for tours and excursions such as open top bus tours. These are usually run by local or national governments, or specific tourist boards. They are great for recommendations when travelling somewhere new!

Hotel concierge services work in this same way, often getting commission for booking trips for guests.

I won’t go into too much detail here, but there are other types of travel agencies too. You can learn more in this post about the different types of travel agents .

Overall, what does a travel agency do?

A travel agency does a multitude of things. During non-peak times, they will mostly spend their days researching new or upcoming tourist destinations and what makes them so great, advertising them as somewhere people can book future holidays to.

Travel agencies are also required to keep up to date with safety information for various destinations. They do plenty of research meaning they can tell customers about the best places to go, what they can do while they’re there, what documents they need and so on. This is particularly important now, as travel advice is ever-changing with regards to political conflicts and public health.

But during peak times and in the run-up to these times, travel agents will be busy actually booking trips. Nowadays they mostly do everything via the computer, using the internet to put holiday packages together which include at least the basics – flights and accommodation – for one price. However, they also call travel companies directly in order to get better deals or to see if there are rooms or seats available which might not be showing online for whatever reason. Because of this, travel agencies and agents tend to have great relationships with particular brands.

Travel agents can book much more than just flights and accommodation. Not all of them can book all of these experiences or features, but it is definitely worth asking if you are using a travel agency to book your next vacation.

• Flights – short haul, long haul, & various classes
• Accommodation – hotels, apartments, and villas
• Airport transfers
• Executive airport lounges
• Airport parking
• Cruises – river and ocean
• Car rentals
• Travel insurance
• Excursions and tours
• Taxi services
• Currency exchange
• Train tickets
• Theme park & water park tickets e.g Disneyworld and Universal in Orlando, Florida

They will also advise on public transport services and timetables, as well as arranging for medical items to be delivered and any access requests you have.

Most travel agencies are actually online, and many of us use them regularly. There are still some in-store travel agencies, but with the impact of both modernisation and the Covid-19 pandemic the majority are online now. Below are some big names within the industry which you will likely recognise.

Expedia – founded by Microsoft in 2001

Cruise.com – specifically for booking cruises

American Express Travel – allows you to earn & use points when booking

Audley Travel – the largest operator in tailor-made travel

loveholidays – a British company founded in 2012

Lastminute.com – offering cheaper travel when you book last minute

Kiwi.com – specifically for booking air and ground transport

Booking Holdings – these are a travel technology company who own Booking.com, Cheapflights, OpenTable and more

Now we’ve looked at the question of ‘ what is a travel agency’, let’s take a look at the generic business model. Generally, travel agencies work in one of two ways. The first way is by receiving commission from the companies they book experiences with for customers. For example, if you were to use a travel agency to book your next holiday which included flights, a hotel stay and a transfer to and from the airport this is three separate components which will be booked through three different companies. The travel agency will receive commission from each of the three companies. There may be other benefits and incentives offered by the travel companies. Commission rates and these benefits mean that travel agencies are more likely to use some companies more so than others who might offer them less in exchange.

Alternatively, travel agencies will charge a fee for their services. This makes it more expensive for consumers to book trips through travel agents and agencies than it would to book themselves. However, as some people don’t feel confident booking themselves, many are happy to pay this additional cost. Holidays booked through travel agencies often come with the added benefit of being ATOL and ABTA protected.

• Cox & Kings were the first travel agency, was established in 1758
• Abreu Agency was the first public travel agency, was established in 1840
• Thomas Cook , one of the most famous travel agencies, was founded in 1841
• Brownwell Travel, the first travel agency in the US, was established in 1895
• Nippon Travel Agency was the first travel agency in Japan, established in 1905
• Intourist became the official state travel agency of the Soviet Union in 1929
• The first travel agency in Australia which went on to become Helloworld Travel, was established in 1951
• Henderson Travel Service became the first Black-owned travel agency, taking Black tourists to various African countries, in 1955
• American Airlines’ Sabre unit created a direct-to=consumer booking tool for flights, hotels and cars in the early 1980s
• Mode Tour became the first travel agency in South Korea, established in 1989
• Hotel Reservations Network, which went on to become Hotels.com, was established in 1991 – at this point, hotels didn’t pay a lot of commission so it didn’t take off
• Travelweb.com, the first online hotel directory, launched in 1994
• The Internet Travel Network sold the first airline ticket online in 1995
• Expedia launched in 1996, funded by Microsoft, and are now one of the biggest travel agencies 
• In 2007, as the iPhone was released, more bookings were made online because mobile apps were now in use
• Airbnb was established in 2008
• HotelTonight, specifically for instant same-day hotel room bookings, was launched in 2011

If you enjoyed this article explaining what does a travel agency do, then I am sure you will enjoy these articles too-

• What is a tour operator and how does it work?
• The 3 types of travel and tourism organisations
• 150 types of tourism! The ultimate tourism glossary
• The 9 types of tourist destinations
• 50 fascinating facts about the travel and tourism industry

The Journal

Travel Advisor Resources

The Outlook of a Travel Agent Career: Fora’s Full Guide

The Modern Travel Agency

Fora Travel

https://www.foratravel.com/the-journal/travel-agent-career

A love for all-things travel, solid communication skills, self-starting ambition — these are the makings of a great travel agent career. If you’re considering this path, you’re in the right place. We have details on all the education and experience requirements, daily tasks, salary info and more — all with the aim of helping you decide if a career as a travel agent is right for you. 

Don’t take it exclusively from us, we polled a few of our top earners to see why they love being a travel advisor. 

Fora Advisor Diana Morales said, “I love the flexibility that it gives me. I love that I get to be in charge of my own schedule and can work from anywhere in the world. It is truly such a gift to have both of those things.”

If you’re ready to try your hand at a travel advisor career, apply to become a Fora travel advisor . We’ll set you up with everything you need to start and run a successful travel advisor business, from training to tech, community, partnerships and more. 

• South America ,
• Luxury Travel

First, what do travel agents — or travel advisors — do?

You can check out our full guide to what travel agents do if you’re completely new to travel planning, but here’s the short version. 

Travel agents — or travel advisors (the terms are interchangeable) — plan and book trips for their clients. These trips can be for leisure, business (or both).

How do travel agents make money? Who pays them?

Travel agents earn money by selling and booking trips. As a travel advisor, you’ll build a network of clients and earn money through the trips you book for them. 

There are two common ways that advisors earn money: from commissions and planning fees. 

Commissions

Many people don’t know this, but commissions are already baked into the prices of most hotels and many travel experiences already. When travel advisors book accommodations, cruises, rental cars, etc,  the travel partner pays a small percentage of the sale. Commissions range depending on the travel partner, but can typically range from 10-15% (and are sometimes as high as 25%). To earn commission, you’ll also need access to an IATA number to cover the legal framework. When you become a Fora Advisor, you’ll get access to our IATA number (and we also cover all of the commission tracking and payments for you). 

“Because Fora handles commission tracking & payments, I can focus my energy on other parts of my business, " noted Fora Advisor Alexandra Vigilante Chamberlin . “Starting a new business is stressful, so Fora saves me time and takes a significant burden off my to do list by handling commissions.”

• Boutique Travel ,
• Couples Travel ,
• Food & Wine ,

Planning fees

In addition to commissions, travel advisors can also earn money through planning fees. Many travel advisors also charge their clients to build more complicated itineraries, make group bookings (find out why group bookings are great ) or provide other related services. 

Diana explained, “Fora just makes everything easier for advisors, but specially commission payments. We don't have to go chasing suppliers for our commission because Fora takes care of that. They make sure that we are paid fairly and on a reasonable time frame.”

(If you’re wondering how much travel agents make or how travel agents get paid , see our guides.)

Related Article: Travel Agent Commissions

Do travel agents work for themselves?

Fora Advisor Nadiah Ford offered an excellent point, noting, “I recently had a ski accident and broke my wrist. Unlike my corporate job, I was able to navigate and continue to work on my own terms and schedule.”

• Family Travel ,
• Adventure ,
• New Zealand

Generally, yes. Most people who work in the field are independent travel agents who belong to a travel agent host agency (such as Fora). Through this relationship, advisors are provided a variety of benefits. At Fora, our advisors get access to our preferred partnerships — which allow advisors to unlock VIP perks for their clients — as well as advanced booking software like our travel advisor booking platform and the ability to operate under the agency’s licenses, among other benefits depending on the agency.

Fora Advisor Diana Morales shared her take here, as well. “My favorite part about being my own boss is that I get to prioritize time with my family and I get to be available if I am needed.” She added, “I am about to become a mom for the first time, and I am so glad that I get to take a maternity leave and make it as long as I need to make it instead of thinking that I need to be back in an office when my baby is six weeks old. That alone is a huge blessing to me already, but there have been many other times when I have been able to put work aside for the moment in order to dedicate time to my family.”

What does the career path of a travel agent look like? (Hint: it can depend on their niche)

Not every travel agent career looks the same. Flexibility and variety are built into the role, and most travel advisors approach their craft differently — especially depending on their niche (learn about different travel agent jobs ). 

For example, luxury travel advisors book elite hotels in premier destinations, like the top hotels in Downtown NYC or the ritziest hotels in Tokyo . They may devote much of their time to researching bespoke experiences for their discerning clientele. Disney travel agents know all the ins and outs of the brand, and typically focus on booking family vacations to Disney properties around the world (learn how to become a Disney travel agent ). Similarly, cruise travel agents may exclusively book ocean-bound voyages for their clients while staying up to date on the latest offerings from brands like Virgin Voyages and Royal Caribbean . 

What travel agent niches exist?

The list of potential niches is long, and at a host agency like Fora, you’re free to carve out any specialization you choose. 

It’s also worth noting that a career as a travel advisor is flexible. You can work part-time or full-time (or, start part-time and work your way to full-time as you build your book of business). If you want to work part-time, make sure you’re choosing an agency that doesn’t have minimum bookings or sales quotas. (At Fora, we have neither). Becoming a travel advisor is a great opportunity to build a career on your own terms. 

Alexandra said, “As a Fora advisor, I love that I have the flexibility to take my business with me anywhere in the world. Tech focused training and tools enable access on the go so I can meet my clients needs from anywhere.”

How do I start a travel agent career?

On one hand, learning how to become a travel agent isn’t overly complicated, at least not compared to some jobs in the travel industry (like pilots or cruise directors). On the other hand, starting a travel agent career does take patience and dedication.

Join a host agency 

As an independent travel advisor, you’ll likely want to partner with a travel agent host agency (like Fora) to launch your travel advisor business. A host agency gives you the support and resources to build and scale your business.  

Notably, your host agency will give you access to an IATA number , a system that is used to verify that a travel agency or agent is legitimate. It’s the thing that allows you, the travel agent, to earn money for booking hotels and other reservations.

The best host agencies also provide a multitude of other tools for you to run your business. Fora is a modern host agency that gives you everything you need to kickstart your career in travel, including training, community and technology. 

Participate in travel agent training to learn the skills & knowledge you need to be successful

It’s hard to sell travel without knowing the industry: the fundamentals of how it all works, the latest intel on destinations and properties around the world, how bookings and commissions work, best practices for client relationships…  There’s a lot to know. 

We offer a comprehensive travel agent certification program at Fora that will arm you with the foundational knowledge you need to get started. The travel agent classes offered by Fora are all online and you can take them at your own pace. We offer both live and recorded trainings. 

Fora’s training covers everything from the basics (how to book a hotel) to more advanced concepts, like planning multi-leg trips in destinations with destination management companies . 

Diana explained, “before joining Fora, I was with another host agency and it was not going well. I joined the travel industry without any prior knowledge. I was a brand new agent who needed a lot of support and a lot of training, but at my old host agency, I was not getting that.

“When I found Fora, it was their emphasis on training that drew me to them. I knew that I wanted to be at a place where I could work through my questions and have answers for them, she adds. “I was not disappointed. Not only were their trainings short, concise, and easy to understand, but often there were Q&A sessions that I could join if I had a question.

“Once I felt like I actually knew what I was doing, I pushed myself to get out of my comfort zone and start talking to people about my business.”

Related article: How to Be a Successful Travel Advisor: Insider Tips from the Pros  

Start booking

Once you’ve got a grasp on how to run your business, you’ll want to start booking (and earning!). We’re firm believers that people learn best by doing, and so our training program is complemented by opportunities to start booking as you’re learning about the role. We offer Booking Bootcamps, live sessions where Fora HQ team members will be available to discuss and brainstorm how you can move from learning about the travel industry to locking in your first bookings.

We also offer tips and tricks on how to build your book of business because we understand that garnering clients can be one of the toughest parts of the job. We do recommend starting booking with friends and family (it’s much easier to build confidence by booking for your sister-in-law, for example, than it is to arrange a trip for a stranger from the internet). When you’re ready, we have plenty of other resources to help you grow your clientele. At Fora, we teach travel advisors how to build up a client base early in our training program (you can also check out our guide to how travel agents get clients ).

For the bookings themselves, Fora Advisors use tools like our in-house booking platform that dramatically reduces the amount of time it takes to place hotel reservations. They can also use the Vault , a secure system that stores client information, and Forum , our community app that connects advisors so they can easily share tips and intel.

What does a typical day look like as a travel advisor?

One of the best parts about being an independent travel agent is that you’ll be able to set up your work schedule in a way that works best for you. Every agent has a different approach. Still, there are common elements. Successful travel advisors tend to split their time between marketing, staying up-to-date with the latest industry trends and of course, the actual travel planning itself.

Marketing is an integral part of any successful travel agent’s career. Without putting yourself out there, your potential clients won’t know that they can book with you, after all. Marketing can take many forms, but it doesn’t have to be overly complicated to run a successful business (don’t worry if you don’t feel like you’re a marketing guru). 

We recommend starting with friends and family to start the foundation of your clientele — and this means that “marketing” can be as easy as an email blast with your family bcc:ed, a message to your fave group chat or a post on social media. There are many successful travel agents who run their entire book of business based on their personal network. 

If and when you’re ready for more advanced marketing tactics, your time might be spent building and maintaining a website, cultivating a social media presence, running email campaigns and more. It’s not unusual for new and experienced travel agents alike to invest a solid chunk of their time marketing themselves. 

How Fora helps you market yourself

At Fora, we’re here to make marketing seamless and easy for you. We provide all Fora Advisors with a customizable profile page on our website, as well as unlimited content creation opportunities on our website to create travel guides that peacock your knowledge. We also have social media and email templates to make sharing the latest travel trends a breeze. Plus, we offer many classes (both live and recorded)  dedicated to teaching Fora Advisors how to market themselves. 

Diana noted, “The marketing assets are another area where Fora makes life easier for travel advisors. I love that we get a variety of content. This allows us advisors to pick and choose what we want to post about and it means that we are not all posting about the exact same thing.”

Researching industry topics

Staying in-the-know is critical to maintaining a competitive edge. Your clients rely on you for the latest intel on what’s trending in travel, so you’ll want to invest time in ongoing education about what’s happening in the industry. 

The exact amount of time spent researching new openings, attractions and so on will vary by travel advisor and niche. Disney travel agents, for example, need to stay on top of the brand’s constant stream of new hotels, rides and experiences so they’re constantly looking for inspiration from  Disney’s newsletters and press releases. 

You’ll also spend a good amount of time researching specifically for clients’ trips. This will likely include finding and comparing accommodations, recommendations and so on to provide a tailored report for clients. 

How Fora helps you stay up to date with travel 

We’ve got plenty of offerings to make it easy for you to keep up-to-date with the latest industry trends. We have weekly training sessions with debriefs on destinations around the world, as well as partner spotlights. You’ll also have access to Forum , our all-in-one community app where you can search and filter through posts from fellow Fora Advisors and industry insiders. 

Travel planning with clients

Of course, your role ultimately comes down to planning and booking travel with clients. Every booking is a little different: sometimes it will be a one-night staycation with a straightforward hotel booking, and other times, it will be a more complex itinerary like a multi-generational trip or honeymoon to a far-flung destination. Many clients will provide a loose idea of what they want out of their trip, and it’s up to their agent to shape it into an unforgettable experience. 

Your role doesn’t stop at the booking itself… You will communicate with the partner to make sure everything is squared away for the trip, and also check on your clients during and after their trip to ensure everything is going well.

Start your travel agent career: become a Fora Advisor

If you have a passion for travel and an entrepreneurial mindset, a travel agent career could be a great fit for you. As your own boss, you’ll be able to dictate your schedule, choose a niche (if you want to) and perhaps above all, help your clients build amazing memories with the trip plans you create.

When you’re ready to get started, apply to become a Fora Advisor today .

Travel agent career FAQs

Below, we’ve collected answers to a few common questions about travel agent careers.

Will a travel agent career take you around the world? 

A travel agent career certainly can take you around the world, especially as you become more successful and partners work with you more. It’s certainly a job where you can travel – as long as you have a Wi-Fi connection, you can work from wherever you want. 

Fora Advisor Beth Kaczka loves the flexibility that a remote role as a travel advisor offers her. 

“Picture me sitting ​at a breakfast table under an umbrella, overlooking the sparkling Aegean Sea, with the scent of olive trees and Mediterranean herbs lingering in the air​. It's the kind of setting that ignites the soul and fuels the imagination. Here I am, ​mobile phone in hand, soaking in the warmth of the Greek sun while orchestrating a luxurious ​Switzerland escape for a discerning client,” Beth said. “As I hit send on the final details, I can't help but marvel at the wonders of modern technology, which allow me to seamlessly blend work and wanderlust in such an idyllic setting. It's moments like these that remind me why I fell in love with being a travel advisor in the first place — the ability to turn dreams into reality, no matter where in the world I may find myself.”

Is a travel agent career stressful? Is it fun?

Like any profession, it can be both stressful and fun. Yes, it can be a little stressful to get your travel agent career off the ground or when a situation goes wrong when your client is abroad. (Learn more about how to deal with a travel snafu ). At the same time, travel planning is, well, fun. For one, you get to research exciting destinations, hotels and attractions for a living. Second, you’re selling people happiness and excitement: vacations are often among people’s fondest memories. Both aspects can be extremely rewarding, especially for those with an insatiable wanderlust. 

Do you have to make travel planning a career? Can you plan travel part-time instead?

Some host agencies may require full-time commitments, minimum sales quotas or set schedules. Fora does not: you can pursue a full-blown travel agent career or a part-time endeavor. Or, you can also start part-time and work your way up to full-time as you build your business. It’s whatever works best for you. 

Ultimately, flexibility is one of the best reasons to become a Fora Advisor (and also makes travel planning one of the best remote jobs for moms and dads, if you’re interested).

How many hours do successful travel agents work?

It depends on how you define success! You can have a fulfilling career both part-time and full-time — the choice is yours. 

In terms of revenue earned, it is a commission-based business, so keep in mind that how much you book will also dictate how much you earn. Learn more about how travel agents get paid . 

How quickly can I start my travel agent career? 

Part of the beauty of a career as a travel advisor is that there are many ways to dive right in. As a Fora Advisor, you’ll have access to training as well as resources to make bookings from day one. When you’re ready to get started, apply to join today . 

For more in-depth intel, check out our guide to how long it takes to become a travel agent .

How lucrative is a career as a travel agent?

How much you earn is dependent on how much you book. Learn more about how Fora Advisors get paid . 

It’s worth noting that some domains, like luxury or corporate travel agent niches, tend to be among higher-earning travel agent jobs . As you might expect, these niches tend to have demanding clients (who are willing to pay more for the white glove service).

What kind of overhead do travel agents have? Are there monthly fees? How about licensing fees?

A travel advisor’s overhead — the cost they pay to maintain their business — varies. Every advisor sets up their business a bit differently, and you may decide to make different investments than other agents (for example, you might opt for a coworking space, or you might decide you don’t need one). 

At Fora, our membership cost covers everything you need to run your travel advisor business. 

Fora’s membership currently costs $299 annually or $49 monthly. With it, Fora Advisors receive access to our expansive network of partners , our in-house booking platform (which dramatically cuts down on booking times), expert-led training, professional marketing tools and more. 

To learn more, read our guide to how much it costs to become a travel agent , which compares joining Fora to the industry at large.

Overall: is a travel agent career worth it?

We think so! If you love travel, working with people and researching awesome destinations and sights, a career as a travel agent can be a great fit for you. If you’re on the fence, we have a guide that presents the pros and cons of being a travel agent .

More travel agent resources

Check out the travel advisor resources below for more guides:

How to Become a Luxury Travel Agent: the 2023 Guide  

How Much Do Travel Agents Make Per Booking?  

How to Market Your Travel Business Like a Pro: Tips from the Experts  

5 Types of Bookings You Can Make as a Fora Advisor (That Aren’t Hotels!)  

How to Become a Cruise Travel Agent (It's Easier Than You Think)  

What Does It Take to Become a Travel Agent?

Debunking 3 Myths about Becoming a Travel Advisor

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What is a Travel Agent?

A travel agent assists individuals or groups in planning, organizing, and booking various aspects of their travel arrangements. They act as intermediaries between travelers and travel suppliers, such as airlines, hotels, car rental companies, and tour operators. Travel agents have in-depth knowledge of different destinations, travel options, and industry trends, which they leverage to provide personalized recommendations and advice to their clients.

One of the primary roles of a travel agent is to help clients navigate the complex world of travel. They listen to their clients' preferences, budget constraints, and desired experiences, and then work towards creating a tailored itinerary that meets their needs. Travel agents handle tasks such as booking flights, accommodations, ground transportation, and excursions, ensuring that all the necessary arrangements are made smoothly. They can also provide valuable insights on visa requirements, travel insurance, and local customs, helping travelers make informed decisions and avoid potential pitfalls.

What does a Travel Agent do?

Travel agents possess extensive knowledge and expertise in the travel industry, including destinations, transportation options, accommodations, and activities. This expertise allows them to provide valuable advice and guidance to travelers, helping them make informed decisions and create well-planned itineraries that meet their specific needs and preferences. They also have access to a wide range of resources and tools that enable them to efficiently search for the best deals, discounts, and promotions available. They can often secure exclusive rates and packages, saving their clients both time and money.

Duties and Responsibilities Here are some common tasks and responsibilities associated with being a travel agent:

• Client Consultation: Travel agents engage in thorough consultations with clients to understand their travel preferences, requirements, and budget. They ask relevant questions to gather necessary information and provide personalized recommendations based on the client's needs.
• Itinerary Planning: Based on client preferences, travel agents create detailed travel itineraries that include destinations, transportation options, accommodations, and activities. They consider factors like travel dates, budget constraints, and any specific requests from clients.
• Reservation and Booking: Travel agents handle the booking process for flights, hotels, rental cars, and other travel-related services. They ensure that all bookings are made accurately and efficiently, securing the best available rates and deals for their clients.
• Travel Documentation and Logistics: Travel agents assist clients in obtaining necessary travel documents such as passports, visas, and travel insurance. They provide guidance on the documentation process and ensure that clients have all the required paperwork in order. Agents also handle logistical aspects like seat assignments, baggage allowances, and transportation arrangements.
• Knowledge of Destinations: Travel agents possess extensive knowledge about various destinations, including popular attractions, local customs, weather conditions, and safety considerations. They provide valuable information and recommendations to clients, enabling them to make well-informed decisions about their travel plans.
• Customer Service: Travel agents offer exceptional customer service throughout the entire travel process. They address client inquiries, resolve any issues or concerns that may arise, and provide support during the trip. Agents act as a point of contact for emergencies and assist clients in making alternative arrangements if necessary.
• Stay Up-to-Date with Industry Trends: To provide the best service to clients, travel agents stay updated with the latest industry trends, travel regulations, and changes in travel technology. They attend industry conferences, participate in training programs, and conduct research to ensure their knowledge is current.
• Sales and Marketing: Some travel agents engage in sales and marketing activities to attract new clients and promote travel packages and services. They may participate in trade shows, develop promotional materials, and utilize online platforms to reach a wider audience.
• Financial Management: Travel agents handle financial transactions related to travel bookings, including processing payments, issuing refunds, and managing invoices. They maintain accurate records of financial transactions and ensure compliance with accounting procedures.
• Continuous Learning: Travel agents continuously enhance their skills and knowledge by staying updated on travel industry trends, new destinations, and emerging technologies. They actively seek opportunities for professional development to provide the best possible service to their clients.

Types of Travel Agents There are various types of travel agents, each specializing in different aspects of travel and catering to specific clientele. Here are some common types of travel agents and what they do:

• Leisure Travel Agents: Leisure travel agents focus on organizing vacations and leisure trips for individuals, families, or groups. They assist clients in planning and booking all aspects of their leisure travel, including flights, accommodations, tours, and activities. Leisure travel agents may specialize in specific types of travel, such as beach vacations, cruises, adventure travel, or luxury travel.
• Corporate Travel Agents: Corporate travel agents primarily cater to business travelers and companies. They handle the complex travel needs of corporate clients, including booking flights, arranging accommodations, managing itineraries, and coordinating travel logistics. Corporate travel agents are familiar with business travel policies, negotiated rates, and preferred vendors to ensure cost-effective and efficient travel arrangements for their clients.
• Group Travel Agents: Group travel agents specialize in organizing travel for large groups, such as family reunions, weddings, school trips, or corporate retreats. They handle group bookings for flights, accommodations, transportation, and activities, negotiating group rates and coordinating logistics to accommodate the specific needs and preferences of the group.
• Tour Operators: Tour operators design and operate pre-packaged tours and travel itineraries. They create comprehensive tour packages that include transportation, accommodations, guided tours, and activities. Tour operators often work with travel agents to sell their tour packages, providing them with a ready-made product to offer their clients.
• Destination Specialists: Destination specialists focus on specific regions, countries, or cities. They have in-depth knowledge of the destination's culture, attractions, local experiences, and logistical considerations. Destination specialists provide expert advice and create customized itineraries for travelers seeking in-depth exploration of a particular destination.
• Online Travel Agents (OTAs): Online travel agents operate through internet platforms and websites, offering a wide range of travel services. They allow customers to search, compare, and book flights, hotels, rental cars, and other travel services online. Online travel agents may also provide customer support and assistance through online chat or call centers.
• Niche Travel Agents: Niche travel agents specialize in specific types of travel, catering to niche markets or specialized interests. Examples include adventure travel agents, luxury travel agents, honeymoon specialists, culinary travel agents, or eco-tourism experts. These agents have extensive knowledge and expertise in their niche area, curating unique experiences and tailored itineraries for clients with specific interests.

Are you suited to be a travel agent?

Travel agents have distinct personalities . They tend to be enterprising individuals, which means they’re adventurous, ambitious, assertive, extroverted, energetic, enthusiastic, confident, and optimistic. They are dominant, persuasive, and motivational. Some of them are also conventional, meaning they’re conscientious and conservative.

Does this sound like you? Take our free career test to find out if travel agent is one of your top career matches.

What is the workplace of a Travel Agent like?

The workplace of a travel agent can vary depending on their specific employment arrangement. Some travel agents work in traditional brick-and-mortar travel agencies, which may be part of a larger travel company or operate independently. In these settings, travel agents typically have a physical office space with workstations, computers, and travel industry resources such as brochures, destination guides, and reservation systems. They may have a reception area to welcome clients and conduct in-person consultations.

With the increasing prevalence of remote work and online booking platforms, many travel agents now have the flexibility to work from home or in virtual offices. They utilize technology, such as laptops, smartphones, and high-speed internet, to communicate with clients, access travel resources, and make online bookings. Virtual travel agents often communicate with clients via phone, email, or video conferencing, offering the convenience of remote consultations.

Travel agents also frequently visit destinations, attend industry conferences, and participate in familiarization trips organized by travel suppliers. These opportunities allow them to gain firsthand experience, build relationships with suppliers, and stay updated on the latest travel trends. While travel agents spend a significant amount of time working at their desks, they also have the chance to explore and experience the destinations they recommend to their clients.

In terms of work hours, travel agents may have a standard office schedule, working weekdays during regular business hours. However, they may also need to be flexible, accommodating clients in different time zones or assisting with emergency situations outside of regular office hours. The workload of travel agents can vary throughout the year, with peak periods during holiday seasons or when there are significant events or festivals happening in popular destinations.

Frequently Asked Questions

Pros and cons of being a travel agent.

Being a travel agent can be an exciting and rewarding career for individuals who are passionate about travel and enjoy helping others create memorable experiences. However, like any profession, there are pros and cons to consider.

• Travel Opportunities: One of the major advantages of being a travel agent is the exposure to diverse travel opportunities. Travel agents often have the chance to visit destinations, experience different cultures, and explore new places as part of their job. This firsthand experience not only enhances their knowledge but also allows them to provide valuable insights and recommendations to clients.
• Personal Satisfaction: For individuals who are passionate about travel and helping others, being a travel agent can be personally fulfilling. The ability to create personalized itineraries and witness the joy and excitement of clients as they embark on their dream trips can be highly rewarding.
• Knowledge and Expertise: Travel agents develop a deep understanding of destinations, travel products, and industry trends. They stay up-to-date with the latest information, including visa requirements, safety advisories, and emerging travel destinations. This expertise allows them to provide valuable advice and recommendations to clients, ensuring they have well-planned and memorable travel experiences.
• Building Relationships: Travel agents have the opportunity to build strong relationships with clients, travel suppliers, and industry professionals. They can establish a network of contacts that can enhance their business and open doors for collaboration and future opportunities.
• Industry Changes and Competition: The travel industry is constantly evolving, with new technologies, online booking platforms, and dynamic pricing models. Travel agents must stay updated with these changes and adapt their business practices accordingly. The rise of online travel agencies and self-booking options has increased competition, requiring travel agents to differentiate themselves and provide added value to their clients.
• Workload and Time Management: The travel industry can be demanding, especially during peak travel seasons. Travel agents may need to work long hours, including evenings and weekends, to accommodate client needs and handle emergencies. Proper time management skills are essential to balance the workload and maintain a healthy work-life balance.
• Pressure for Exceptional Customer Service: Travel agents are expected to deliver outstanding customer service consistently. They must handle client inquiries, resolve issues, and manage expectations throughout the travel process. This level of customer service can be challenging, particularly when dealing with unforeseen circumstances or dissatisfied clients.
• Commission-Based Income: While some travel agents receive a salary or hourly wage, others rely on commission-based income. This means their earnings are directly tied to the bookings they secure for clients. It can take time to build a client base and establish a steady income stream, especially in the early stages of a travel agent's career.

Travel Agents are also known as: Travel Consultant

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10 Steps to Starting a Travel Agency from Home

If you're thinking of starting a travel agency from home, you're in luck. The cost to become a travel agent is relatively low and there are plenty of opportunities for someone with the passion to sell travel. Not only that, but starting a travel agency from home is becoming the most popular route to become a travel agent .

"Home-based independent advisors continue to dominate the travel agency landscape, accounting for 72% of travel advisors." -Phocuswright

According to Phocuswright's US Travel Agency Landscape 2023 , "Home-based independent advisors continue to dominate the travel agency landscape, accounting for 72% of travel advisors."

Want to throw your hat into the ring and start your own travel agency?

Starting any business is no walk in a park, but it certainly helps if you have someone to advise you and lay out a path. We're here to help support you and answer your questions as you start out on your new entrepreneurial journey!

PS: If you can't answer the question ' what do travel agents do ', let's have you read up on that first before you go all in on starting your own travel agency. 🤗

10 Steps to Starting Your Travel Agency From Home

Here's a summary of the steps to start your travel agency from home. If you've already completed some of the steps, you can click on the link to shortcut which step is best for you!

• Find your travel agency niche: Finding a travel agency niche is a great way to hone in on what about travel you're most passionate about. If you develop a niche, you'll be building your travel agency business on a strong foundation of your strengths, interests, and personal networks. Not only that, it will help you give direction as you start (and grow) your agency!
• Choose your travel agency name: This is often a step advisors struggle with, but don't skip it! Travel vendors need a travel agency name for their records. Make sure you have one ready so you can start selling travel.
• Choose a Travel Agency Business Structure: Most new-to-industry advisors will be choosing between a sole proprietorship or a Limited Liability Corporation (LLC). It's a matter of balancing host requirements (if you go with one), business protections, your agency model, and your budget.
• Create a Travel Agency Business Plan: A travel agency business plan is a document that will help you cat herd all your amazing ideas for your business. It helps you define your mission and goals, helping you think through the process on how to get there. Best yet? We have a free 15-page travel agency business plan template you can use!
• Register Your Travel Agency with the State + Feds : This is a critical step so to legitimize your travel agency. You can register your LLC through the Small Business Administration (SBA) resource to find the steps to get registered with your specific state. This will enable you to do other fun steps like starting a business bank account.
• Get an FEIN : This is optional but recommended, here's why: It's free to get an FEIN, takes just a few minutes and if you move to a business structure that requires an FEIN in the future it will save you a few steps!
• Set Up Your Travel Agency Financials : Separating your business bank account from your personal account is required if you set up an LLC. But frankly, we recommend setting up business financials regardless of your agency model.
• Choose Between a Host Agency, Travel Franchise, or Your Own Accreditation: There are a lot of choices in which direction to go with your travel agency. Do you have your own vendor relationships and want to get your own travel accreditation? Do you want to partner with a host agency under your own brand so you take advantage of their aggregate sales volume? Do you want a turnkey agency option with a franchise? This will help you choose.
• Check Out Host Agency Reviews' Resources Page : Our resources page gives you tips on how to optimize our site to help start your travel agency from home.
• Sign Up for 7 Day Setup Accelerator Course: Within each of these steps, there are many many many other steps to starting a travel agency from home. (Yes, just like nesting dolls.) Our course gives you the tools and knowledge you need to go from the seed of an idea to hanging the shingle out for your travel agency!
• Bonus: Read up on what you can expect in terms of income potential as well as time and financial investment.

I know. It can be totally overwhelming. But if you're starting a travel agency from home, these steps will help prepare you to feel 10,000% (no those extra zeros are NOT typos!) more confident. What are the preliminary steps you need to take when starting a travel agency? Funny you should ask . . .

Here are the steps to take to start your travel agency from home:

1. Find a Travel Agency Niche

A niche is your friend. When you start your home-based travel agency, a niche will help you establish your brand, create your travel agency name, and allow you to focus your energies. Starting a travel agency without a niche is like traveling without a compass (or, let's be honest, a smartphone). Are you going to be focusing on a destination? Maybe you'll be like Andres Zuleta, who specializes in Japan tours:

Or maybe you'll focus on a type of travel, like Deb Fogarty, who specializes in cruising:

Or maybe you're like Will Medina and have a love for destination weddings and honeymoons:

Or maybe you're more attracted to the corporate world and aim to book travel for corporations like Karen Hurlbut:

Whatever your niche, it's the first problem to solve when you're starting your travel agency! We have a free brainstorming exercise to help you find niches that you're passionate about.

2. Choose Your Travel Agency's Name

Vendors will need a travel agency name for their records so have one ready before you start selling travel.

Whether you go with a host agency or choose to go independent, you're going to need a name for our agency. The vendors (hotels, cruise lines, airlines, etc) will need a travel agency name for their records so have one ready before you can start selling travel. Having a niche already picked out can help you as you decide on your travel agency's name .

Starting your travel agency (from home or otherwise) is a lot of work. The last thing you want as your travel agency opens its doors is a letter saying you've infringed on someone else's trademark! We help you through the things you need to consider when choosing a name for your agency. Are their any competitor's with similar names that will make it harder for you to pull up at the top of the search engines? Are the URLs available? Are their any copyrights? Is it too long to neatly fit on marketing materials? We go through this and a whole lot more, so dig in!

3. Choose a Travel Agency Business Structure

You can change your business structure as your needs evolve.

A base step in starting your travel agency from home is deciding on a business structure. There's a lot that goes into what is the best fit for you. Do you have personal assets like a house or car that you want to make sure are protected? How much money do you want to spend?

We help you understand the different business structure options for your new travel agency : Sole proprietor, partnership, LLC, S Corp.

As you're starting your travel agency, you may feel like the low cost of a sole proprietor makes the most sense for you. It's important to know that you can change your business structure as your needs evolve.

As your business grows and you're making more bookings (which exposes you to more liability), you can always move to a structure that gives you more personal liability protection, like the LLC. While it's more expensive, and may not be feasible for everyone as they're starting their travel agency, the protection it offers to your personal assets is incredibly important as your business grows.

And what the heck is an S Corp anyhow? Don't worry, we'll give you the scoop and let you know when that should be a consideration for you.

4. Create Your Travel Agency Business Plan

Next step in starting your travel agency? A business plan!

While a travel agency business plan isn't technically required to start an agency, it is something I highly recommend. I didn't write a business plan when I started this site but I also knew online marketing, SEO, and the travel industry front and back. I also had the industry connections to make it work. Most people starting a travel agency from home either don't have experience in starting a company or they don't have experience in travel. This is where a business plan can help.

What a business plan does for you is it forces you to think through each different area of your business and come up with a plan. Will you stick to that plan 100%? Definitely not. But it gives you something to refer back to and helps you organize your thoughts. Plan to take a chunk of time to work on it as it's not something you want to do willy-nilly.

Not only that, but we made it really easy with our free 15-page travel agency business plan ! All you need to do is download our template and adapt it to your agency.

While I didn't write a business plan for Host Agency Reviews, I did write a VERY detailed travel agency business plan for you. :) It's completely filled out with a fictitious travel agency. That's helpful because you can use some of the data and ideas in there on your travel agency's business plan.

Here's a peek of the business plan. Just to note, this version is not editable! To get the editable version, download the travel agency business plan template (an editable version of the one below).

That was good stuff, right? So let's move on to some more logistics, getting your government paperwork in place.

5. Register Your Travel Agency with the State ... and Feds!

You're doing great!

Starting a travel agency from home isn't as tough as you thought, is it? When you have a road map, it's easier to navigate the start-up process.

Registering with the State

Ok, now that you've:

• nailed down your niche,
• come up with your name,
• and settled on a business structure.

The next step is letting the state government know you've got a company. The Small Business Administration (SBA) website shows   how to register your company's name by state . If you are an LLC, the SBA also has a state-by-state guide on how to register your LLC .

A word of warning: When doing a DBA, your business, even though they have different names, are still legally considered the same entity.

Registering your company with the state is an important step because you will need this proof to open a business bank account and other random things (running FB business ads, getting a loan) as your business grows. Do yourself a favor and when those certificates come in, keep them handy in a file for your company's legal documents.

When you start your travel agency, you may have registered it as Margarita Travel. But over time, that might change.

Let's say you fell into becoming the local destination wedding expert that everyone turned to. Margarita Travel works, but you want to have a more romantic name for those clients and different branding. So you create a new brand, Beach Romance , that specializes in destination weddings.

Do you need to let the state know about this new company, even though it's really your same company? Yuppers.

You'll need to file a DBA with the state. DBA is an acronym for "Doing Business As." It's also sometimes referred to as a fictitious name, trade name, or assumed name.

Your DBA is essentially saying, 'My formal company is Margarita Travel, but I also go by Beach Romance.'

To help you get a feel for the pros/cons of a dual-brand, listen to Andrey Zakahrenko's story of how his agency evolved into two brands: (This was our first ever podcast so please forgive the horrible sound quality!)

The one thing to know about DBAs is that they don't create a separate entity. DBAs just allows you to legally operate under different names.

A word of warning: When doing a DBA, your businesses, even though they have different names, are still legally considered the same entity. That means if someone sues Beach Romance for a honeymoon gone wrong, Margarita Travel is also being sued since it's the same company.

Registering with the Financial Crimes enforcement network

And can we talk about the Feds for a moment? They're doing their part to cut down on money laundering. (Score!) And... since money laundering happens through businesses, you're going to have to do a little paperwork with them. (Boo!)

You'll fill out the Beneficial Ownership Information (BOI) form to make sure you're on the up and up. :)

Don't worry, it's not too painful despite the fact the they name of the government org in charge—Financial Crimes Enforcement Network—sounds like they're going to send a SWAT team into your home at any moment.

6. Get an FEIN (Optional, but Recommended)

A Federal Employer Identification Number (FEIN) is like a social security number for your company. It's a number to identify your business and is sometimes referred to as an EIN.

Technically, you do not need an FEIN if you're a sole proprietor or a single-member LLC with no employees since you can use your social security number to file taxes.

However, I personally prefer not to give out my social security number if I don't have to. :) I also like to get my pencils lined up from the get-go.

It's free to get an FEIN and takes just a few minutes. A huge plus in getting one right off the bat when starting a travel agency is that if you move to a business structure that requires an FEIN, you won't have to worry about changing out your SS# for an FEIN on legal documents, bank accounts, etc.

Also, make sure to check in with your tax professional when it's tax filing time—for certain business structures, you may still file under your SS# even though you have an FEIN.

Confusing, I know. That's why you go to the professionals! 😊

7. Set Up Your Travel Agency Financials  

Like the FEIN, when you're starting a travel agency, you don't need a separate business bank account or credit card if you're a sole proprietor, but you'll have wished you'd had set one up come tax time!

Separating your personal bank account from the business account from the start makes accounting easier and will help you keep track of business expense write-offs.

Wondering what travel expenses you can write off as a travel advisor ? We've got a resource for that too. :)

Important to note: If you choose a business structure that offers personal liability protection, like an LLC, you need to keep your business and personal money separate. If you are mixing finances and paying personal bills out of your business account, or vice versa, that opens you up to personal liability.

The argument is that, yes, when you started your travel agency you chose an LLC structure, which protects your personal assets. BUT, clearly, the business and the owner are not separate entities because the owner is making business payments out of their personal bank account (or vice versa). And if you're one and the same, then your personal assets are also the business's assets.

There's a lot to consider when it comes to travel agency financials and getting the foundations laid.

Don't worry, we walk you through all things having to do with your travel agency's financials :

• what to consider when choosing your bank,
• the documents you need to have ready for the bank,
• what business credit cards are best,
• the most common software travel agencies use for their bookkeeping, and
• how to find a bookkeeper for your agency

8. Decide if a Host Agency Is Right for You

We mentioned host agencies at the very beginning of the article. And maybe you noticed the name of our site. We're big fans of host agencies for people starting a travel agency . . .but it's not for every agency out there.

That said, our travel advisor research reports continually show that new advisors almost always choose the host agency route.

Your next step is going to take a lot of research. You need to decide if you want to go with a host agency, franchise, or go independent.

Questions you might have:

• How do you know if you should go with a host agency, travel agency franchise , or if you should be independent and get your own accreditation ?
• How do you decide which travel consortium to join if you are independent?
• How do you choose a host agency when there are 200+ listed on the site ?

Don't you worry, little bird, it's easy to feel overwhelmed, but we have answers to all these questions. :)

To start, check out our article, " The Top 10 Benefits of Using a Host Agency . " If you read that and decide a host agency is a good fit for you, you'll move on to our article on choosing a host agency and take a look at our best host agencies of 2024 .

Oh, and we've got a great tool for you to help narrow down your list of host agencies and/or travel franchises in our choosing a host agency article. It's a nifty spreadsheet to help you narrow down your top host agency picks ! 😊

9. Read our Home-Based Travel Agent Resources Page  

We put together a page with loads of links so you don't have to scour the web. Here she be, the Home-Based Travel Agent Resources page. 😊

Not only that, connecting with host agencies, travel franchises and consortia couldn't be easier! You can go directly to a host's profile to write them via Host Agency Reviews' Q&A feature. The beauty of this is that tons of agents will also get to learn from your question too!

10. Sign up for HAR's 7 Day Setup Accelerator Course

Phew. That was list was a little overwhelming, wasn't it?

The fact is that there's a lot of groundwork that needs to take place in order to start a travel agency.  Wouldn't it be nice if someone with tons of experience who's helped over 10,000 agency get started could walk you through the setup?

We've got an option for that too! It's called our 7 Day Setup Accelerator course .

But don't take our word for it. Hear from some of our students on the value of bite-sized instructional videos, a supportive community, and access to the HAR team:

The course is written and taught by HAR Founder, Steph Lee, and professional Educator, Bridget Lee. It includes nine chapters with 70+ instructional videos, course quizzes, peer accountability, and monthly meet-ups with HAR members and industry experts. Check out HAR's 7DS Accelerator course below!!

As you can see, there are lots of things to do as you start a travel agency from home. But we're here to offer you a TON of resources and support.

So take a deep breath and we'll do it step-by-step together!

Once you start your travel agency from home, you'll have lots of other things that will demand your attention so laying the proper groundwork as soon as you can is smart business. 

Starting a Travel Agency from Home: What to Expect Time-Wise

In general, it will take a few years to get your agency off the ground.  This is the case with nearly all entrepreneurial endeavors.

Our travel advisor research reports continually show that it typically takes about 3 years to really start generating a sustainable income.

Here's why it can take time to see the cash flow when you starting a travel agency:

• It takes a while to build a client base and develop your brand
• Even when you do make your first bookings, you're not paid commission until after your client completes their travel (or after final payment for some vendors). So, if you make 7 bookings in January but the clients aren't traveling until November, you can see how your first-year money might be tight.
• Travel is something most people only do 1-2 times a year. Even with referrals and repeat clients, it can take a lot longer to build a steady business compared to a new restaurant or other service industries. 

Starting a Travel Agency from Home: What to Expect Money-Wise

And money. You probably want to know what you can expect when it comes to money and starting that travel agency from home, huh?! 😊

I hate to admit it but there is no one set answer. It depends on soooo many factors. The good news is that we were so curious to answer this question that we asked a few hundred new travel agents about their income in the first years of starting a travel agency.

Here's some hard data on travel agent income and travel agency start up costs in the first 5 years of business!

Even more travel agent income data

Want to dig into travel agent income data even more? Here's a great reading list that will give you an idea of what you might expect to earn when starting a travel agency: 

There's a lot of things to look forward to when it comes to a travel agent career . Check out our (free) annual event, Host Week , to get a flavor of what you can expect once you decide to start a travel agency.

The travel industry opens possibilities of traveling to beautiful places to help you do your job better. You'll get to attend things like FAM trips , ship inspections and go on site inspections. When you sell enough, you'll have access to travel agent rates .

All that said, it's important to understand that you still have to (*ahem*) work if you're a travel advisor- --you just get to have a lot more fun doing it than most people (yay)! :)

Questions? Ask Away.

I grew up in the travel industry and have I've worked with thousands of agents looking to start a travel agency. It's totally my jam. And it's not just my jam.

The entire HAR team is here to help you start (and grow) a successful travel agency. Ask us questions in the comments, drop us a line via email, or reach out to us on social. We love helping bring new people into our amazing industry! 🤗

Editor's Note: This article was originally published in July 2021. We updated this resource and republished it on publish date above.

About the Author

Steph grew up in the travel industry, helping on and off with her mom's homebased travel agency. She has worked with thousands of agents in her role as a former host agency director before leaving in 2012 to start HAR. She's insatiably curious, loves her pups Fennec and Orion, and -- in case you haven't noticed -- is pretty quirky and free-spirited.

If you’re looking for Steph, she leaves a trace where ever she goes! You can find her on Facebook, Instagram, LinkedIn (her fav) and Pinterest as 'iamstephly'. 🙂 You can also catch her on her Substack, Bumblin' Around, where she writes on things outside the world of HAR.

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BUSINESS CAREER GUIDES

Travel Agent Career

What is a travel agent.

A travel agent is a highly organized professional who is passionate about travel and helping others. They are focused on creating the best possible experiences, directly catered to their clients. They work with hotels, airlines, and other vendors to create travel packages and experiences that their clients will love. Travel agents can work with large groups, individuals, families, professional organizations, and others to help create seamless travel experiences that help create memories.

RESPONSIBILITIES

What Does a Travel Agent Do?

The primary role of a travel agent is to help people make travel arrangements, which might include booking flights, hotels, sightseeing tours, and making dining recommendations. A travel agent assesses each customer’s unique needs, preferences, and budget to ensure their trip goes as smoothly as possible. 

Here are the core day-to-day responsibilities you’ll typically find yourself performing as a travel agent:

• Meeting with clients to discuss upcoming travel plans and gather information regarding travel dates, transportation, and budget. This may be done face-to-face in a brick-and-mortar setting or online.
• Planning the travel itineraries for clients and arranging transportation, lodging, and activities throughout the trip.
• Advising clients on important aspects of their travel plans. This may include providing information on passports, visas, customs, insurance, vaccinations, and trip cancellation policies.
• Keeping accurate records of client bookings, such as payments, travel dates, flight numbers, and hotel check-in and check-out dates
• Handling any travel issues that arise, including flight or hotel cancellations, delays, conflicts, and refunds.

Due to the customer-focused nature of travel agent jobs, it’s ideal to be passionate about and/or have experience in hospitality. Those who make the best travel agents tend to be versatile and have a friendly personality where they’re concerned with keeping clients happy, comfortable, and safe. 

EDUCATION & BEST DEGREES

How do i become a travel agent.

Travel agents are key professionals dedicated to helping individuals and families create memories that will last a lifetime. Through their expertise, research, and services, individuals can plan vacations or trips that are directly catered to their wants and needs. Planning a dream vacation can be stressful for an individual or a family, and having a travel agent can make the process much easier.

If you’re passionate about travel, organization, and helping others, a career as a travel agent can be a great fit.

What Education Does a Travel Agent Need?

A bachelor’s degree in business management  is a great starting place for those interested in becoming a travel agent. This type of degree will give you experience and knowledge in finances, marketing, organization, and strategy. This is key for those who are working with multiple clients, vendors, handling budgets, and marketing themselves to clients. A bachelor’s degree can help you stand out from other candidates in working for larger companies and organizations as well.

Best Degrees for a Travel Agent

Hone your business acumen and garner added respect:...

Hone your business acumen and garner added respect:

• Time: 61% of graduates finish within 19 months
• Tuition:  $3,755 per 6-month term
• Courses : 40 total courses in this program

Skills for your résumé this program will teach you include: 

• Business communication
• Product development
• Decision making models
• Project management strategies
• Budgeting for business

This online degree program is an excellent choice for kick-starting your organizational management career.

Leadership Certificate – School of Business

Enhance your résumé and take a step in your educational journey with the...

Enhance your résumé and take a step in your educational journey with the help of a leadership certificate from the School of Business.

• Time: 4 months from start to finish.
• Cost:  $2,250 for the certificate.
• Courses: 3 courses total in this program.

This program is for emerging leaders, however this program does not require a bachelor’s degree, and provides transferable credit towards a WGU degree program.

Whether you aspire to work for a Fortune 500 organization, a government agency, a non-profit organization, or a fast-paced start-up, this certificate can give you the keys to success in a variety of industries, including:

• Finance and Banking
• Manufacturing

How Much Does a Travel Agent Make?

Several factors determine travel agent salary, including location, level of education, certifications, years of experience, and the specific company they’re working for. Top earners in this industry, according to ZipRecruiter, make as much as  $64,500 per year , while the lowest earners make closer to $20,500. In terms of median pay, recent data from the U.S. Bureau of Labor Statistics (BLS) put it at  $42,350 in 2020 , which comes out to $20.36 per hour. 

What Is the Projected Job Growth?

Admittedly, the job outlook in the near future is lower than in other industries. Research from the BLS states that from 2020-2029, there’s  expected to be a 26% decline  in the job outlook, which translates into a drop of 21,300 jobs. This is largely due to the rising popularity of travel booking sites like Priceline and Kayak, where a growing number of people are booking trips online themselves. However, according to the BLS, the growth in business management is expected to grow 4% in the next 10 years.

What Skills Does a Travel Agent Need?

A career in this industry requires a travel agent to have a definitive skill set, with some of the key skills being:

• Interpersonal skills.  Travel agents will constantly be interacting with clients in-person, over the phone, and through email. In turn, they need to be strong verbal and written communicators, empathetic, and understanding of the individual needs of each client.
• Organization.  Because they may be juggling trips for several clients at a time, travel agents must be highly organized and capable of effectively managing a high volume of booking information.
• Problem-solving.  Travel logistics are inherently complex where issues can pop up at any given time. Great travel agents have a knack for handling incidents and quickly resolving problems while maintaining their poise.
• Attention to detail.  It’s easy to mix-up things like flight departure and arrival times, hotel check-ins, and transportation rentals, which is why travel agents need to be detail-oriented.
• A firm understanding of technology.  This career is heavily reliant on technology like travel booking platforms and appointment scheduling software. Travel agents not only need to have a firm grasp of this technology but be willing to continually learn about new developments and iterations. 

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How does the travel industry actually work?

You may be new to the travel industry, investigating a career in travel or just trying to research a bit about the industry ahead of your next adventure. There’s a mass of information out there and it can be overwhelming to wrap your head around. Lucky for you, our team of travel experts have been hard at work to give you a bird’s eye view of the travel industry as a whole .

The travel industry has gone through many evolutions with a variety of external factors contributing to who has access to travel, where they are travelling to and what the travel industry looks like overall.

A few important travel industry statistics

Let’s start by setting the scene…the travel industry is HUGE and the numbers certainly prove it .

Source: Statista

A brief history of the travel industry

We are fortunate to live in a globalised world meaning that travel is reasonably accessible. At the press of a button, most people are able to book a flight and jet off to wherever our wallets will take us. 

But, it hasn’t always been so easy. To help you understand how the industry has developed to the point it has today and where it might head in the future, here is a travel industry timeline.

Before the mid 20th century, travel was reserved for the extremely wealthy. It was expensive and it was time-consuming (can you imagine having to travel on a boat for 3 weeks…. or 3 months!). The concept of a ‘travel industry’ had not yet formed; it was more a collection of hotels, restaurants and coachlines who all operated independently from one another.

1950 – 2000

After the Second World War, travel suddenly started to become accessible for many more people due to the development of commercial airlines. Although they were originally still very expensive,  costs started to reduce over the years and more people were able to invest in seeing the world.

The industry grew and grew, and many saw a gap in the market for people wanting to travel but not having the knowledge, or time to organise it themselves – travel agents and tour operators started to establish themselves!

2000 – 2019

The travel industry has undoubtedly boomed, and the way that people travel is almost unrecognisable from the early 20th century. With smartphones, we now have unlimited apps at our fingertips, specifically designed to make every aspect of travel easier. 

For travellers, there are websites and apps to help them plan their travel, help them while travelling and to give them inspiration for their next trip! For travel agents and tour operators, itinerary software has streamlined much of their processes, from itinerary planning to customer relationship management. Now all this technology is amazing, and helps our lives in many ways, but has also resulted in fragmentation of the travel industry with travellers choosing to plan and manage their trips themselves or online increasingly.

 2020 and the future of travel

Due to the pandemic and the pause in travel, both countries and travellers worldwide re-evaluated travel and how it should be conducted. Countries who experienced over-tourism considered ways to encourage more sustainable travel in their destinations . For travellers, Covid triggered them to start thinking about their bucket list destinations and working with travel designers to plan and book them. This resulted in tourism returning with a significant rise in 2022, although the industry is indicating it might be plateauing in 2023/2024 .

How does the industry actually work?

You may be thinking to yourselves, how does travel actually function as an industry . How does it all fit together? You are not alone, it’s a complex industry notorious for its jargon, terminology and abundance of acronyms!

As you can see there are a few key players to remember:

Tourism Boards and Government organisations: Usually run or overseen by local or national governments. These boards set in place regulations for the other players in the industry. They also market countries or cities as tourist destinations for potential travellers

Suppliers/Vendors: Suppliers (or Vendors) are the hotels, the restaurants and the activity providers that travellers eat, stay and partake in on their travels. Travellers may liaise with and purchase from suppliers directly if they are organising their own travels, or communications with suppliers may be managed entirely by a middle-man (AKA, the tour operator, travel agent, travel wholesaler or DMC).

Tour Operators: Tour Operators design itineraries, often tailor made, for their customers, liaising with suppliers to organise and book the travel itinerary (partially or start to finish)

Travel Agents: Travel agents liaise with tour operators to book packages and tours for their clients. As such, tour operators will often focus on a certain destination or market area, whereas travel agents can focus on selling the whole world – with a comprehensive list of suppliers in their books

Destination Management Companies (DMC’s) : Organisations that specialise in offering tours, logistics, and planning services for a particular destination. They often re-sell their services to tour operators

Ground Handlers : A ground handler takes care of some day to day operations and tour management such as picking customers up from the airport and arranging sightseeing tours

Associations and Memberships: These organisations exist to provide support, promotion, and opportunity to other players in the travel industry. All of them operate with a slightly different mission, whether it’s to promote sustainable business practices, celebrate the luxury travel market or to connect travellers with LGBTQ friendly travel businesses

Travellers: Arguably the most important cog in the wheel. Everyone in the tourism industry sets out to meet travellers’ needs – to ensure they keep coming back for more!

The beauty of the travel industry supply chain is how all of these key players work together creating one of the worlds biggest industries.   

 Interested to learn more?

The ultimate A-Z glossary for the Travel industry. Understand the different terms, jargon and acronyms.

For a taste of the luxury end of travel, explore our list of Exclusive luxury travel communities

To discover more about sustainable tourism, download our ebook focusing on how to elevate travel design with sustainability.

Travel designers- meet the influencers you should work with.

Understand the role travel influencers play in the industry and why tour operators should be following, interacting and collaborating with them. Explore eight global travel influencers who are inspiring travellers daily.

Tourism news websites you can trust

In the tourism industry it can be hard to differentiate the reliable travel news sources from the not-so-trustworthy ones. In this blog we summarise the top travel news websites that tour operators, travel agencies and DMC’s should pay attention to.

How to set your team up for success when introducing new software

Making changes happen is hard. Especially when it is something that will create a significant impact on the way you work, like new software. We discover what change management is and how it can assist you, your leaders and your team in creating new processes that will make you more successful in the long run. Is it time for a change?

How can tour operators contribute to sustainable tourism?

Sustainability is a key pillar of tourism, with a growing number of people interested in travelling responsibly and sustainably. We explore the easy ways in which your tour operator business can make a positive change. You can help to encourage economic growth and protect our environment whilst also watching your business flourish… could it get better?

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How to Start a Successful Independent Travel Agency

If you love travel and you’ve ever thought about what it would be like to use your knowledge and skills to help others enjoy traveling as well, these are some terrific ideas on how to become a travel agent :

Connect with a Host Agency

One of the best tips is to connect with a host travel agency to begin a career as an independent travel agent. Host agencies provide valuable information and training programs that are critical for becoming a mobile travel agent and getting an agency started.

Host agencies provide independent travel agents with many of the travel agency marketing tools they need to get started in the business, including easy-to-use customer management platforms as well as booking tools and innovative travel agency software  (including robust  travel agency back office software technology ) that can help the new agent grow their business quickly. In addition, they offer training and support from experts in the field, which can be invaluable to a new agent just starting out.

Make Sure You Get the Necessary Training

In some states, mobile travel agents must complete accredited training in order to work independently as an agent. Courses may be offered at local community colleges or through online sources, and they include information on computerized reservation centers, laws regarding travel sales and information on booking vacation packages.

Develop a Niche Market

People who travel today are looking for individualized customer service and often they prefer niche vacations that are different from the traditional travel destinations most people seek. Independent, mobile travel agents that specialize in specific types of travel or destinations set themselves apart from other agents, and especially from the online, do-it-yourself, one-size-fits-all travel websites. Types of niche markets include snorkeling or scuba vacations, golf trips, all-inclusive Caribbean resorts and many other specific activity trips.

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Become the Expert

In addition to creating a niche travel agency, independent travel agents need to become experts on the areas where they are sending clients. If a client is traveling to Belize, the agent should know all there is to know about the culture, the events occurring during the client’s travel and unusual activities available to make the vacation more unique. An independent agent often offers to book tours and excursions prior to the client’s arrival so their vacation is worry-free and relaxed, with no concerns other than getting to the activity on time.

Give Your Customers the Service You Want for Yourself

One of the most important things to remember as a mobile travel agent is that good customer service will grow your business faster than anything else. Being available for your clients and being on top of the great deals is a must.

Getting to know your clients and the types of travel that interests them most will allow you to match them with travel deals when they become available. This is a win-win for both agent and traveler!

Your best bet to a great start in the travel industry is to find the right hosting agency that can provide invaluable information and the right tools to help you develop a successful career in the travel industry. Find out how you can connect with a top host travel agency .

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Is a travel agent worth it the pros and cons.

Travel experts agree there are several advantages to hiring a vacation planner.

The Pros & Cons of Using a Travel Agent

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A travel agent can save you money and time.

Need to pivot your trip plans but don't want to deal with the extra time, money and hassle of rebooking flights and accommodations on your own? That's just one area where a knowledgeable travel agent (also commonly known as a travel advisor) can help. Read on to discover the other benefits – as well as the downsides – of using a travel agent, so you can confidently decide whether or not a travel agent is worth it for your next trip.

The Pros of Using a Travel Agent

Travel agents can save you money – and get you other perks.

"In some cases, you'll actually get a better  deal by working with a travel agent," says Jackie Steele, travel expert at MagicGuides . "This could be in the form of a cruise onboard credit (free spending money to use on the ship), access to special agency/group rates, or even just learning about a discount you qualify for but weren't aware of." The best agents will even keep an eye on new discounts as they're announced and apply them to your trip even after you've booked, he notes.

Travel agents handle all the details

Hotel room? Booked. Dinner reservations? Made. Tour tickets? Ready to go. A travel agent handles every detail of your vacation itinerary. "The traveler still gets to be involved in the fun part of dreaming up ideas and providing their travel wishes, while we take and perfect them," says Jessica Parker, founder of Trip Whisperer .

Molly McShea, owner and travel advisor at McShea Travel , points out that travel agents can also help with timing logistics. "Travel agents know how many days should be spent in each destination, which tours go together, and how many things you should do in a day," she says, adding that crafting an itinerary can be challenging if it's not something you regularly do. Additionally, travel agents can help you choose the best time to visit your preferred destination(s) based on seasonality and your budget, and sift through travel insurance policies to find the best option for your needs.

Travel agents can provide local expertise

"A travel advisor's industry connections and relationships provide added value to their clients," says Valerie Edman, a luxury travel advisor and agency owner at Cultured Travel LLC. She says when working with a travel agent, travelers gain access to a global network of connections including:

• In-destination specialists who work exclusively with travel advisors and can connect travelers with unique, off-the-beaten-path experiences they wouldn't otherwise know about
• Exclusive experiences not available to the general public

You'll avoid surprise fees

When deciding if a travel agent is worth it for you, remember this: A reputable agent can guarantee you won't encounter any surprise fees on accommodations and activities once your trip is booked.

You'll have someone to troubleshoot unexpected travel issues

A travel advisor is essentially your personal vacation concierge. "Because they've been around for so long, agents really know what to look for," says Christopher Elliott , a consumer advocate and journalist. "Travel agents are among the first to know about flight cancellations and delays , making it easy for them to rebook itineraries right away." 

The Cons of Using a Travel Agent

It might not be your cheapest option.

There are some instances when it makes more sense to plan your own trip. "If you're planning a quick flight from New York City to Los Angeles, it's easy enough to book it yourself online directly or through a third-party booking site," says Elliott. "If you're planning a once-in-a-lifetime trip or bucket list honeymoon , that's when you call the experts."

You'll have less flexibility in your itinerary

The upside of working with a travel agent is having someone plan an epic vacation for you based on industry knowledge and local expertise. But this can also be a downside in the event you discover an activity you'd like to do or a restaurant you'd like to try that isn't on your pre-planned itinerary. If you alter your plans, you risk losing money; plus, the time it takes for you and your travel agent to coordinate your change of plans may not be worth the hassle.

You still have to do some research

It's important to find an agent you can trust, which means you still have to do some of the vacation planning. For this part, Parker recommends picking up the phone. "Lots of people avoid or don't pick up the phone as much anymore," she says. "That's where you get the high-touch service, tone of voice, excitement or concerns to manage." She advises to look for the following red flags:

• No fees: " Travel advisors are charging planning fees more now or increasing them, so the client knows more confidently than ever, we work for them, not the suppliers with the best commissions," Parker explains. "There are a lot of things that are non-commissionable and the advisor's time and expertise shouldn't be given away for free, either. That's the best way to show an advisor takes their business seriously."
• Limited options: If you work with someone who is inexperienced or has an incentive to book you with a certain supplier, they may not be prioritizing your best interests. "It's important to check if they are with a larger consortia, accreditations and network, typically listed on their website and signatures," says Parker. "That level of mindshare doesn't come with a lone advisor unless they have many, many years of experience."
• Slow response times: If communication is delayed, that's a sign they may be too busy to plan your trip – but again, this is something you can avoid by having the right conversations early on.

Edman suggestes starting your search with the American Society of Travel Advisors . "ASTA-verified travel advisors are committed to the highest industry standards and have verifiable industry knowledge so consumers can feel confident in working with them," she says.

You might also be interested in:

• Is Travel Insurance Worth It?
• First-Time Cruise Tips
• Carry-on Luggage Sizes by Airline
• What to Pack in Your Carry-on Bag
• The Best Luggage Brands

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5 ways to boost your travel agency’s sales

No one knows about reinventing yourself like a travel agent. As technology advances and self-booking becomes more popular, the agency market has learned the hard way that the only way to keep a competitive edge is to evolve.

This article is for travel agents who are ready to do just that. We’ll look at important statistics that every agent living in 2024 should know and offer five tips to help you become the best in your niche.

1. Niche down and sell experiences

Today, when almost anybody can book a basic trip, the role of a travel agent is shifting to offering niche expertise to smaller target audiences who want to save time on planning. 

Here are a few ways to choose the best travel niche:

• Focus on a particular destination. Look for cities or regions your audience might be interested in that other travel agencies don’t specialize in. For example, your theme might be islands, trips to your home country, a particular continent, and so on.
• Focus on your target audience. This might mean specializing in budget travel, luxury tourism, trips for senior couples, honeymoon vacations, etc. And for many audiences, the standard flight-and-room package doesn’t do it anymore. For example, one study shows that almost 70% of high-income tourists prefer experiences over hotels.
• Offer custom packages. Personalized experiences mean higher revenue for travel agents and help build loyal audiences. To understand customer wants, ask open-ended questions such as “What is your ideal vacation?” or “What do you remember most about your last trip?” Creativity in crafting unique adventures will mark you as a true pro. 

2. Grow your online presence

You can start by joining relevant groups and communities on Facebook, Quora, Medium, and niche forums. Sharing tips and tricks from your professional experience can help build meaningful conversations and, in the long run, promote your brand.

But socials aren’t enough – it’s even more important to create your own website or blog. This allows you to promote your brand and be there for your customers wherever they need information.

3. Offer new online services on your website 

Opt for new services that won’t require much time or effort to implement. For example, you can launch a custom flight or hotel search so clients can find flights or hotels in your key destinations without having to click away.

This can benefit your business in several ways, by:

• Keeping you relevant in the age of self-booking
• Attracting a new audience across the globe
• Retaining visitors who just want flights, not travel packages
• Generating passive income from affiliate commissions 
• Providing clients with prices lower than those offered by GDSes
• Turning your website into a one-stop travel platform

One of the quickest ways to make this happen is with white label solutions. They don’t require effort or money and operate on the commission model, meaning you earn a percentage on each booking made through your website.

For example, in just 30 minutes, you can set up the low-code solution by Travelpayouts, which equips your website with a custom-branded metasearch function featuring flights and hotels from 250K travel companies worldwide. If you don’t have a website yet, it also allows you to launch a brand-new flight and hotel search site from scratch.

Check out this video overview of metasearch functions you can build with White Label Web.

4. Build a loyal audience

People buy from people. Understanding your audience and establishing yourself as a trustworthy expert can go a long way toward building a loyal following that will refer even more customers in the future. 

• Monitor your agency’s reputation online . If someone starts talking negatively about you, social sentiment tools will inform you, so you can respond quickly and show your credibility.
• Gather as many positive reviews as possible . As only 6% of travelers do not trust testimonials, publishing inspiring customer reviews is crucial. Fortunately, 80% of customers are eager to leave a review if asked to do so. 
• Develop a loyalty program . Think of ways you can reward repeat customers: discounts, exclusive deals, price alerts, etc. 

5. Develop a personal touch

Even as basic travel planning becomes easier and easier, people still prefer travel agencies to ensure security and convenience for more complex or unfamiliar experiences and remote trips. 

Soulless corporations are sooo 2019. Nowadays, people appreciate businesses that don’t feel like chatbots. That’s why it’s important to look for ways to enhance your customer relationships with a human touch. For instance:

• Offer last-minute bookings . If someone decides to take a trip tomorrow, you can swoop in to save them a lot of stress and decision-making.
• React promptly . A fast response to a client request makes a huge impression.
• Pay attention to your writing . Invest in improving your communication skills. The goal is to get things across clearly in a way that makes you sound confident and smart. This will help build a professional image and make customers feel reassured.

Future-proof your travel agency

With growing interest in off-beat and remote travel experiences, this might be a great time to invest in your travel agency. The tips above will help you stay competitive, grow together with the travel market, and secure your target audience. A great way to start is to integrate a White Label on your website and earn affiliate rewards while helping travelers book their trips.

Now we’ll turn things over to you. What are the best ways to grow a travel agency these days? Are you following any of the trends above, or do you have a better solution you want to share? 

• The Inventory

Meet the travel agent who only works with clients earning $100 million a year

When jaclyn sienna india founded sienna charles, her boutique travel concierge, in 2008, she was determined to fake it until she made it.

When Jaclyn Sienna India founded Sienna Charles , her boutique travel concierge, in 2008, she was determined to fake it until she made it.

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“My husband thought I was the dumbest person in the world because we would get calls from people saying, ‘Oh, I saw your article. I’d love to go to Disney,’ or, ‘We’re going to New Jersey for the weekend,’” she told Business Insider . “And I was like, ‘Oh, I’m sorry, we’re so busy, we’re really sold out this season with high-net-worth people.’ But I had no clients.”

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Sixteen years later, however, faking it has paid off. India can now count multiple world leaders, including former President George W. Bush, and celebrities like Mariah Carey as clients. Her services are reserved for clientele making in excess of $100 million a year – in other words, people who already have everything. So what does India provide that her clients can’t get on their own?

“My clients are way more powerful than me, they know so many people. But that’s not what gets things done. It’s care. It’s leading from the heart,” she explains. “I was a server for five years before I started my business. I understand what makes people tick. And paying attention and caring about those people is paramount.”

Sienna Charles boasts a “black book” of more than 2000 of India’s relationships across the hospitality industry – including yachts, hotels and high-end restaurants. This same relationship building that enables India to connect with people working in the hospitality industry also has allowed her to create unique travel and dining experiences for her clients.

“[My clients] are explaining what they’re looking to achieve, because they already see it. They just don’t have the tools, the time, the access and the creativity to be able to fulfill that,” India said. “One of my gifts has been understanding that vision with only a few words, and then delivering that to them.”

But her goal for her clients isn’t simply getting them into the most glamorous or exclusive venues – it’s also ensuring the end experience is genuinely worthwhile.

“I don’t think French Laundry in Napa is really that exciting,” India said, referring to the three-Michelin star California restaurant. “So I don’t sell it,” she continued. “Could we get somebody in there? Sure we can. But I think what they’re doing at Single Thread Farms down the road is far more interesting.”

While India stresses that her focus is on giving her clients the best individual experience – not simply the most luxurious – what she delivers is frequently a one of a kind event. On one occasion, she arranged a candlelight dinner in Versailles. In another instance, her client ate brunch on the Arc de Triomphe.

“We also like to pair meals in with meeting great personalities,” India explained. “We’ve done breakfast with the Hermes family. We’ve done lunch with the Fendi family in Rome.

But sometimes what her clients want is more simple. When Bush traveled to Ethiopia, she ensured that he had the comforts of home – peanut butter and non-alcoholic beer. The former president was also greeted by dozens of children wearing Texas Rangers baseball caps.

“I genuinely care about people,” she explains. India says that she spends her day speaking with everyone from her cab driver, to restaurant employees, to find the most interesting options for her clients. “The world is not just luxury. The world is not just fancy experiences. It’s everything and [my clients] want authentic experiences.”

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How much can you claim on tax without receipts? Here's a breakdown

No-one likes keeping receipts, so we often throw them away.

But this can be an issue when tax time arrives.

That raises the question, can you still claim tax deductions without a receipt?

Here are the expenses you can claim without a receipt and the maximum allowable amount.

What is the most you can claim on tax without a receipt?

According to the Australian Taxation Office (ATO), if your total work-related expenses are $300 or less , you are not required to provide a receipt.

The $300 deduction limit for work-related expenses doesn't apply to claims for:

Car expenses

• Meal allowances
• Award transport payments allowance
• Travel allowance expenses

But keep in mind that the ATO may still ask you to explain what it is you're claiming, how you paid for it, and how it's related to your work.

What expenses can you claim without a receipt?

Claiming expenses without a receipt can be risky because the ATO is always watching for false claims.

But in some cases, it's okay to claim without a receipt. 

Although, you'll likely need to keep some form of record, such as a diary.

We've put together a quick guide of what you can claim on tax without a receipt, but keep in mind that this is quite wide-ranging. 

Check out the ATO website for more details and, if you're looking for individual advice, you can pay a tax agent to help .

Eligible people earning $60,000 can also use the ATO's free service Tax Help Program , where volunteers help people lodge their tax returns online. 

Here's what you can claim on tax without a receipt:

If your total claim for laundry expenses is $150 or less (excluding dry cleaning), you can claim a deduction without written evidence .

But you must be able to show how you spent the money and how you calculate the amount of your claim if the ATO comes asking.

Even if your deduction for work expenses is more than $300, you can still claim a deduction for laundry expenses up to $150 without written evidence.

However, the $300 limit for work expenses still applies, this exception doesn't increase the $300 limit for work expenses to $450.

For more information on what constitutes occupation-specific, protective clothing and distinctive uniforms, head to the ATO website .

Small expenses

You don't have to keep receipts for work-related expenses that are $10 or less , as long as the total claim doesn't exceed $200 .

But the ATO does want you to keep a record of all the small expenses.

It must be written in English and it should show:

• What you purchased
• Where you got the item from
• How much you spent
• The date of purchase
• The date the record was made

Hard to get receipts

If you incur expenses where it's hard to get a receipt, the ATO says you can make a record of the expenses instead of getting a document from the supplier.

The expenses can be more or less than $10 and there is no total limit .

In your records, you must show the:

• Name of the business/supplier
• Amount of the expense
• Nature of the goods or services
• Date of purchase
• Date the record was made

But remember, the ATO uses industry averages as a tool to help them spot suspicious claims.

If you're over claiming (especially without receipts), you may be headed for an audit — which is where the ATO does an in-depth investigation of your tax affairs. 

If you're eligible to claim car expenses and use the cents per kilometre method , you don't need to provide any receipts for proof.

But you'll need to show how you calculate your work use, so you may want to consider keeping diary records or using the myDeductions tool in the ATO app.

You'll be able to claim up to a maximum of 5,000 kilometres for work-related use.

How many kilometres can you claim on tax without receipts?

If you're using the cents per kilometre method , you can claim up to 5,000km without receipts for work-related vehicle travel.

You don't need receipts or written evidence to show how many kilometres you travelled.

But, the ATO may ask you to show how you worked out your business kilometres — which is where diary records will come in handy. 

The 2023-24 cents per kilometre rate is 85 cents.

It covers all car expenses including:

• Decline in value
• Registration
• Maintenance

Here's an example to consider:

Once per week, Tim makes a 32-kilometre round trip in his own car from his head office in the city to meet with clients. When Tim consults his diary at the end of the financial year, he works out he was at work for 48 weeks. But he did miss two weekly meetings as he was sick. He works out his work-related kilometres as: Number of weekly trips x distance of weekly trip = total weekly trip kilometres 46 x 32 = 1,472 kilometres Tim works out his deduction for the 2023-24 income year as: 1,472 x 0.85 = $1,251

What if I don't have a receipt?

You may be able to submit bank statements and income statements .

But this is at the discretion of the ATO — they have to be satisfied the records are good.

One way to do this is to check the bank/income statement contains all of the following information:

• Name of the supplier
• Date the expense was paid
• Date of the document

The ATO may also want you to provide supplementary evidence such as a written record (e.g. in a diary) and other documents that outline the nature of the goods or services.

What can I claim on tax?

There are many work and non-work-related expenses that you can claim on your tax return.

Deductions can include:

• Cars, transport or travel
• Working from home expenses
• Tools, computers and items you use for work
• Education, training and seminars
• Memberships, accreditations, fees and commissions
• Meals, entertainment and functions
• Personal grooming, health and fitness
• Gifts and donations
• Investments, insurance and super
• Cost of managing tax affairs

But there are very strict rules about what you can and can't claim.

So check out the ATO website for the full details before filling out your tax return.

Why is my tax refund so low in 2024?

If you've logged into the ATO's portal to have a look at your tax refund estimate, you might have been puzzled to find it doesn't meet your expectations.

There could be a few reasons for this, according to the ATO:

• Your refund could have been offset against other debt you have
• There could be a difference between the details in your tax return and the pre-fill information data
• Your income and deductions are different from last year
• The discontinuation of the low and middle income tax offset (LMITO)
• X (formerly Twitter)

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1. Understanding your finances

2. effective budgeting strategies, 3. reducing everyday expenses, 4. smart financial habits, 5. making extra money, 6. utilizing savings tools, how to save money effectively: 6 smart savings strategies.

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• To save money, evaluate your expenses and see if there are areas where you can limit spending.
• Consider whether your money is in the right place and review interest-earning bank account options.
• If you're saving for a specific purpose, set practical guidelines for goals.

Whether you're beginning to put away money for an emergency fund or ready to save for a down payment on a house , reviewing your savings habits can be integral to reaching your financial goals. 

There are several key steps and strategies to use when saving. You need to understand your finances, create a budgeting plan, start reducing spending, build an emergency fund , and practice other smart financial habits. You should also understand what tools are available to you, from investing, budgeting, and banking tools to side hustles and other ways of making additional money.

Here are six steps and strategies to saving money.

Assessing your income and expenses

To start saving money, you first have to look at where your money is going. 

"Oftentimes, people find it difficult to save because they try to do that after they take care of a lot of spending — after they pay their mortgage , rent, car payment, their groceries, etc. They find that they may have nothing left. I always suggest tracking your spending because that helps you identify money that can be saved," says Patrina Dixon, CFEI and founder of It'$ My Money .

Evaluate your spending to see if there are any specific categories where you can make some monthly adjustments.

Setting realistic financial goals

Maybe you want to save for particular savings goals , like a vacation or new car.

To help make your goal more tangible, Scott Stanley, CFP and founder of Pharos Wealth , says you can estimate expenses for your goal and set a timeframe. Then, you can review your budget and see how much you can save each month to make the goal more tangible. 

If you realize it's becoming challenging to save for your goal, consider resetting your expectations by extending your timeline or selecting something with a more practical cost.

The role of budgeting in saving money

Budgeting can help you identify how much money you have to spend, as well as what expenses you should spend that money on. Some expenses will be necessary to cover every month, like rent or utility bills; these are considered essential expenses .

Nonessential expenses are things you don't necessarily need to pay every month and are dependent on your wants, like entertainment and eating out. Your budget will help you determine what nonessential expenses you can afford, and which ones you need to cut back on or get rid of entirely.

Creating a monthly budget

There are a few common budgeting tips you can use to structure your spending when you're learning how to budget .

One example is the 50/30/20 budget rule . In this budgeting strategy, you spend 50% of your income on your necessities, like housing, transportation, and utilities, 30% on nonessentials, and 20% on savings, investments, and debt repayments. This is a flexible rule you can tweak to fit your situation, but it might not work for every circumstance, especially if you live in an area with high cost of living.

Another common budgeting strategy is the 70/20/10 budget rule . With this strategy, you'll spend 70% of your income on essential and nonessential expenses, 20% on savings and investments, and 10% on debt payments or donations. Like the 50/30/20 rule, this is a flexible rule that doesn't require you to keep careful track of every expense. If you want to focus on debt repayment, or if donating part of your income each paycheck is important to you, this might be a good strategy for you.

If you've kept up with a consistent budget, check in on your progress. If something doesn't go to plan, you can always modify it. You'll also want to make adjustments if you recently received a raise or bonus. 

Identifying areas to cut costs

Once you've decided on a budgeting strategy, you can identify places you might be overspending.

Reducing non-essential expenses doesn't necessarily mean you have to eliminate things that bring you joy. Instead, Dixon recommends reducing how frequently you're making that particular purchase.

For example, let's say you are a gourmet coffee aficionado. If you buy gourmet coffee from a cafe every day, you could alternatively go once or twice a week and contribute more to your savings.

Budgeting tools and apps

There are lots of budgeting tools, such as money saving apps and personal finance software programs , that can help you build your budget. If you don't want to use online apps or software, you can always use a notebook to track your expenses.

Using a budgeting app can help you keep track of your expenses without having to do it all manually. Budgeting apps can also help show you areas where you might be overspending. Depending on what app you use, you might also have access to other features, like monthly bill reminders, savings goals planning, and more.

If you would like to track your progress toward a specific financial goal, you might like a savings account with budgeting tools . Some high-yield savings accounts let you label and track progress for goals. Another option is to open a secondary savings account to track your progress.

Saving on groceries

If you're looking for ways to curb your spending on groceries, Dixon suggests planning out shopping trips beforehand to make you get everything you need all at once. This could also be helpful with saving gas if you would normally make frequent grocery trips or don't live near grocery stores.

Cutting utility costs

There are several ways to cut utility costs, although some of them require upfront expenses. 

One way to cut utility costs is to bump your heat down a few degrees in the winter, or raise your thermostat by a few degrees in the summer. You can also consider turning your heater or air conditioner off or down at night, if the temperatures in your area permit it. 

If you're interested in saving money long-term and don't mind spending some money, consider investing in energy-efficient appliances or solar panels.

Lowering transportation expenses

If your area offers public transit, using that might be less expensive than paying for the gas you would use to get somewhere — especially if your city's public transit system is robust enough to get rid of your car entirely. If your city is bikeable, replacing your car with a bike might provide similar savings.

While this option definitely isn't possible for everyone, being able to avoid car payments, expensive maintenance fees, and gas costs can save you a lot over time. Using public transit or biking might also help you avoid using ridesharing apps, which can get very expensive over time. 

The benefits of an emergency fund

Having an emergency fund is vital for financial security. If you lose your job or have a surprise medical bill , an emergency fund can keep you from going into debt or having to dip into money you were saving for something else. It can also help ease money-related stress, since you know you have funds to fall back on.

You should keep roughly three to six months' worth of expenses in your emergency fund. You might want to keep more than that saved to budget for healthcare costs or other emergencies if you're more likely to run into them.

Putting your emergency fund in a high-yield savings account can also help you earn extra money off of your emergency fund.

Prioritizing high-interest debt repayment

Debt, especially debt with a high interest rate like credit card debt, can build up over time. If you're not paying off your debt fast ,  you could end up just paying the debt's interest without touching the principal, or the original money you borrowed. If this happens, you won't make any progress towards being debt-free. Make sure to budget enough money for debt repayment to avoid this, and try to pay off debts as fast as you can to avoid paying too much in interest.

If you have several debts, consider prioritizing repaying the ones with the highest interest first. This is a debt repayment strategy called the "avalanche method," and it can help you save money in the long run. You could also use the "snowball method," where you pay off your smallest debts first. Analyze your debts to decide whether the avalanche method or the snowball method is the better choice for you.

Investing in your future

It's important to start saving for retirement as soon as possible, and investing can be a great way to do that. Contributing regularly to something like a Roth IRA can ensure that you have money to depend on later in life. Not only will you have the money you put into the Roth IRA, but you'll also have whatever money you made off of investing, too.

You can also use investing to pay for long-term financial goals, like buying a house. Just be aware that investing comes with risk, and it's possible that you'll lose money.

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Side hustles

Finding ways to make money outside of your job can help make sure you always have some money coming in. There are several ways to find fast cash , including money-making apps, freelancing, or using gig economy apps.

While you're unlikely to earn lots of money from them, money-making apps can help you earn some money, and the tasks they offer don't usually require much from you except for time.

Freelancing is more likely to provide a strong extra income stream, but can be inconsistent and might require more investment from you. There are several online freelancing platforms you can use to get started, like Fivver and Upwork. Similarly, gig economy apps like Uber or TaskRabbit could provide an extra income stream, but also frequently require you to provide your own equipment.

Selling unused items

You can use apps like Depop, Poshmark, or Facebook Marketplace to sell things you already have but don't need. Keep in mind that apps like this sometimes charge a fee to use them.

If selling your stuff online doesn't appeal to you, you could throw a garage sale to get rid of things you don't need anymore.

High-yield savings accounts

High-yield savings accounts are similar to regular savings accounts that you'd find at brick-and-mortar banks, but they offer more competitive interest rates. Putting your money in a high-yield savings account is a great way to make money off of your savings without risk.

The best savings account option for you will likely depend on when you'll need to access your money. Savings accounts typically have a cap on how many times you can withdraw your cash per month, although some don't. While it can be inconvenient to not have access to your money at any time, this can also be a perk if you don't want to be tempted to dip into your savings.

For money you need access to more regularly, a checking account is a better choice. You probably won't get as good an interest rate — most checking accounts don't earn interest at all — but you'll have much easier access to your money.

"The majority of your direct deposits may go into there so that you can pay your car payment, rent, mortgage, whatever the various bills that you need to pay," explains Dixon. 

• Certificates of deposit

Like high-yield savings accounts, CDs are all interest-earning bank accounts that can help grow your money.

CDs are different from high-yield savings accounts in two key ways. First, you generally can't withdraw money from your CD after you put it in. CDs last for a specific length of time, referred to as its "term length," and you generally only get access to your money again at the end of that term length. Second, while savings accounts have a variable interest rate that can change at any time, CD rates are generally fixed, and will stay the same for however long your term length is.

Certificates of deposit are great for saving for specific long-term goals, especially if you know how long you want to save for. They're also good for ensuring you keep a good interest rate for a long time. However, if interest rates rise after you open a CD, you might be stuck with a worse interest rate than you would have with a savings account.

Automated savings plans

Automating your savings can be a great way to ensure you're always making progress on your savings goals. Stanley recommends setting up an automatic transfer from your checking account to a high-yield savings account after each paycheck. That way, you won't forget and accidentally overspend money you were planning on saving.

By assessing your income and expenses, making and sticking to budget, and making use of different financial tools, you'll be able to save money and start building towards your financial goals. If you follow these tips, you can start saving for the future, even if you don't think you have much money to set aside.

Saving money tips FAQs

The amount you should save will vary based on your income, expenses, and financial goals. One common budgeting strategy is the 50/30/20 rule, where 20% of your income goes to savings and debt repayment. This number can be adjusted to fit your needs; the goal is to start with a manageable amount and increase it when you can.

Start by reviewing your expenses and identifying any nonessential items that can be reduced or eliminated, as even small cuts can add up over time. If you can, consider treating savings as a non-negotiable expense by automating a small money transfer to a savings account each payday.

Look for an account with a high interest rate, low fees, and good customer service. Online banks often offer higher interest rates than brick-and-mortar banks. Also consider whether you want your money to be easily accessible, or whether you want it to be a little harder to get access to.

Yes, investing can be a form of saving, especially concerning retirement plans or other long-term financial goals. Investing often earns you a higher return than a savings account, but comes with a higher risk. 

Making clear, specific financial goals can help you stay motivated to save money. Examples of clear goals are saving to buy a house, go on vacation, or build an emergency fund. Make sure to track your progress and celebrate milestones along the way.

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How to Find the Best Travel Insurance

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Table of Contents

What travel insurance covers

How much does travel insurance cost, types of travel insurance, how to get travel insurance, what to look for in travel insurance, best travel insurance comparison sites, which insurance company is best for travel insurance, when to skip travel insurance, travel insurance, recapped.

Travel insurance can cover medical expenses, emergencies, trip interruptions, baggage, rental cars and more.

Cost is affected by trip length, pre-existing medical conditions, depth of coverage, your age and add-ons.

You can get it through credit cards or third-party companies, & can shop on travel insurance comparison sites.

Before buying, evaluate risks, know existing coverage, obtain quotes online and review policy details warily.

Skip it if you buy flexible airfare and hotels, already have coverage or only book refundable activities.

Booking travel always carries some degree of uncertainty. Travel insurance provides a safety net so you can step out with confidence. You may not need travel insurance for inexpensive trips, but it can provide a sense of security when you prepay for pricey reservations, a big international trip or travel during cold and flu season, which can be unpredictable.

According to insurance comparison site Squaremouth, travelers in 2023 spent an average of $403 for comprehensive coverage, compared to $96 for medical-only policies. Comprehensive plans typically cost between 5% and 10% of the insured trip cost.

Since that price tag is no small amount, it helps to know how to shop smart for travel insurance. Here's how to find the right travel insurance plan for you and your next adventure.

Depending on the type of coverage you’re looking for, the chart below will help you determine what to look for when selecting a policy:

Depending on the policy, travel insurance reimburses you or offers services when something goes awry. There’s even coverage for the worst-case scenario: if you die in an accident while traveling. Accidental death coverage pays your beneficiary a lump sum in that case.

Before you buy, take a little time to get familiar with different types of travel insurance products, how it’s priced, and what it covers and excludes. If you’re traveling during these uncertain times, you’ll want to make sure that the policy you select covers coronavirus-related emergencies. Usually, the more thorough the coverage, the more it will cost.

Travel insurance costs vary depending on:

Length and cost of the trip: The longer and more expensive the trip, the higher the policy cost.

Cost of local health care: High health-care costs in your destination can drive up the price of trip insurance.

Medical conditions you want covered: Conditions you already have will increase the cost of travel insurance coverage.

Amount and breadth of coverage: The more risks a policy covers, the more it will cost.

Your age: Generally the older you are, the higher the price.

Any optional supplement you add to your policy : Cancel For Any Reason , Interrupt For Any Reason and more.

Keep these factors in mind when considering different travel insurance options.

You’ll find a wide selection of travel protection plans when you shop for a policy.

Typically, travel insurance is sold as a package, known as a comprehensive plan, which includes a variety of coverage.

Here are seven of the most common types of travel insurance:

Travel medical insurance

These plans provide health insurance while you’re away from home. Although in some ways these policies work like traditional health plans, generally you cannot use travel health insurance for routine medical events. For example, a routine medical checkup is usually not covered. In addition, these policies often include limitations on coverage and exclusions for pre-existing conditions.

Although most travel insurance plans cover many recreational activities, such as skiing and horseback riding, they often exclude adventure sports, such as skydiving or parasailing, or competition in organized sporting events. You may need to buy a special travel policy designed for adventure or competitive sports.

International travel insurance

Most likely, your U.S.-based medical insurance will not work while you’re traveling internationally, and Medicare does not provide any coverage once you leave the United States outside of a few very specific exemptions. If you plan on traveling abroad, purchasing travel medical insurance could make a lot of sense.

» Learn more: Travel medical insurance: Emergency coverage while you travel internationally

Trip cancellation, interruption and delay

Trip cancellation coverage reimburses you for prepaid, nonrefundable expenses if the tour operator goes out of business or you have to cancel the trip for one of the covered reasons outlined in the policy, such as:

Your own illness.

The illness or death of a family member who’s not traveling with you.

Natural disasters.

Trip interruption insurance covers the nonrefundable cost of the unused portion of the trip if it is interrupted due to a reason outlined in the policy.

Trip delay coverage reimburses you for expenses such as lodging and meals if you’re delayed during a trip (e.g., your flight gets canceled due to weather ).

Many package policies cover all three. These policies are different from the cancellation waivers that cruise lines and tour operators offer, the Insurance Information Institute says. Waivers are cheap, ranging from $40 to $60, and often include restrictions. For example, according to the institute, waivers might not refund your money if you cancel immediately before departure. Waivers are technically not insurance policies.

Some companies offer additional layers of coverage at extra cost. “Cancel For Any Reason” coverage will reimburse a large part of the trip cost, no matter why you back out. And some companies let you pay extra to cover pre-existing conditions if you cancel for medical reasons.

Some insurers and comparison sites let you customize a policy by choosing types of coverage a la carte. For example, TravelInsurance.com is a comparison site that provides quotes from different providers.

Baggage and personal belongings

How does lost luggage insurance work? This coverage reimburses you for baggage and personal belongings that are lost, stolen or damaged during the trip. Some plans also reimburse you for extra expenses if you experience a baggage delay for more than a certain period, such as 12 hours.

Your renters or homeowners insurance may cover personal belongings while you are traveling. It’s best to review your homeowners insurance policy to determine the level of coverage it provides so you do not end up paying for a benefit you already have.

» Learn more: Baggage insurance explained

Emergency medical assistance, evacuation and repatriation

This coverage pays medical expenses if you get sick or injured on a trip . Medical evacuation coverage pays for transporting you to the nearest hospital, and medical repatriation pays for flying you to your home country.

» Learn more: Can I get travel insurance for pre-existing medical conditions?

24-hour assistance

This service is included with many package plans. The insurer provides a 24-hour hotline that you can call when you need help, such as booking a flight after a missed connection, finding lost luggage, or locating a doctor or lawyer.

Generally, travel insurance companies do not cover sports or any activity that can be deemed risky. If you’re thinking of incorporating adventurous activities into your vacation, choose a plan that includes adventure sports coverage.

Most travel insurers cover a wide array of services, but the specific options vary. Some plans include concierge services, providing help with restaurant referrals, tee time reservations and more. Many services also offer information before the trip, such as required vaccinations. The only way to know what’s included is to read the policy.

» Learn more: Should you insure your cruise?

Accidental death and dismemberment insurance

This coverage pays a lump sum to your beneficiary, such as a family member, if you die in an accident while on the trip. Accidental death and dismemberment insurance policies also pay a portion of the sum to you if you lose a hand, foot, limb, eyesight, speech or hearing. Some plans apply only to accidental death in a plane.

This coverage may be duplicative if you already have sufficient life insurance, which pays out whether you die in an accident or from an illness. You may also already have accidental death and dismemberment insurance through work, so it's best to check your policies to ensure you’re not overpaying.

» Learn more: NerdWallet's guide to life insurance

Rental car coverage

Rental car insurance pays for repairing your rental car if it’s damaged in a wreck, by vandals or in a natural disaster. The coverage doesn't include liability insurance, which pays for damage to other vehicles or for the medical treatment of others if you cause an accident and are held responsible.

Ask your car insurance company whether your policy will cover you when renting cars on the trip. U.S. car insurance policies generally don’t cover you when driving in other countries, except Canada.

Car insurance requirements are complex because they vary among countries. You can usually purchase liability insurance from the rental car company. Learn about car insurance requirements by searching for auto insurance by country on the U.S. Embassy website .

» Learn more: Best credit cards for rental car coverage

A note about single vs. long-term policies

Single trip insurance plans are a great option for those going on a single trip for a specific length of time (e.g., a two-week vacation) and then returning home. The price of the policy is usually determined by the cost of the trip.

Long-term travel policies cover you for multiple trips, but there are limitations to how long you can be away from home, if you can return home during your travels and how many trips you can take. In addition, trip cancellation and interruption coverage is either not offered or capped at a dollar amount that can be significantly below the total cost of all the trips taken during the covered period.

Long-term travel insurance plans — often called 'multi-trip' or 'annual travel insurance' — are a suitable option for those who travel often and are satisfied with the amount of trip cancellation coverage for all the trips they take over the duration of the policy.

» Learn more: How annual (multi-trip) travel insurance works

Below, we include how to obtain travel insurance, along with the pros and cons of each option.

Some credit cards offer trip cancellation and rental car insurance if you use the card to book the trip or car.

When you book a trip with your credit card, depending on the card you use, you may already receive trip cancellation and interruption coverage.

» Learn more: 10 credit cards that provide travel insurance

Here are a handful of credit cards that offer varying levels of travel insurance coverage for purchases made with the card.

on Chase's website

on American Express' website

• Trip delay: Up to $500 per ticket for delays more than 12 hours.

• Trip cancellation: Up to $10,000 per person and $20,000 per trip. Maximum benefit of $40,000 per 12-month period.

• Trip interruption: Up to $10,000 per person and $20,000 per trip. Maximum benefit of $40,000 per 12-month period.

• Baggage delay: Up to $100 per day for five days.

• Lost luggage: Up to $3,000 per passenger.

• Travel accident: Up to $500,000.

• Rental car insurance: Up to $75,000.

• Trip delay: Up to $500 per ticket for delays more than 6 hours.

• Travel accident: Up to $1 million.

• Rental car insurance: Up to the actual cash value of the car.

• Trip delay: Up to $500 per trip for delays more than 6 hours.

• Trip cancellation: Up to $10,000 per trip. Maximum benefit of $20,000 per 12-month period.

• Trip interruption: Up to $10,000 per trip. Maximum benefit of $20,000 per 12-month period.

Terms apply.

Pros: Coverage is free.

Cons: You can’t customize the insurance to meet your needs. Most credit cards offer secondary car rental insurance, which pays for the costs not covered by your regular car insurance plan.

Travel agents and travel reservation sites

You can buy travel insurance when you book your flight, hotel and car rental.

Pros: Buying is as quick and easy as clicking “yes” when you book reservations. Coverage is inexpensive.

Cons: You can’t customize the coverage.

» Learn more: Airline travel insurance vs. independent travel insurance

Travel insurance comparison sites

You can compare different policies and review quotes at once based on the trip search criteria you’ve input into the search form. Examples include marketplaces like Squaremouth or TravelInsurance.com.

Pros: You can choose a policy that fits your needs and compare policies and pricing in one place.

Cons: Comparing multiple policies takes time.

Travel insurance companies

You can purchase travel insurance directly from an insurance provider.

Pros: You can choose a policy that fits your needs. Many travel insurer websites also offer information to help you understand the coverage.

Cons: You’ll need to go to multiple websites to compare coverage and pricing.

» Learn more: The best travel insurance companies right now

Keep these tips in mind when you’re considering a trip insurance policy.

Evaluate the financial risks you face when traveling. Can you bear those costs yourself, or do you want insurance?

Examine what coverage you already have: Does your credit card offer travel insurance? Do you have renters or homeowners insurance to cover belongings? What is the deductible? Will your health plan cover you in all the locations where you travel?

Get quotes for trip insurance online. Choose a package of the benefits you need and compare prices for similar coverage among carriers.

Narrow your choices and then read the policy fine print to understand what’s covered, what’s excluded and the limits on coverage. You may find that the lowest-priced policy is too restrictive and that paying a little more gets you the coverage you need. Or you might find that the cheapest, most basic policy fits the bill.

If you don’t know which provider to go with, it makes sense to browse a list of plans on a travel insurance comparison site. These online marketplaces will often include plans from the best travel insurance companies along with customer reviews.

Squaremouth

Compare plans from more than 30 providers.

Over 86,000 customer reviews of insurers.

Under its Zero Complaint Guarantee, Squaremouth (a NerdWallet partner) will remove a provider if any customer complaint isn't resolved to its satisfaction.

Has a filter option to see policies that provide COVID-coverage.

TravelInsurance.com

Compare plans from 13 providers.

See good and poor customer ratings and reviews for each insurer when you receive quotes.

“Learning Center” includes travel insurance articles and travel tips, including important how-to information.

Quotes provided from each provider include a link to COVID-19 FAQs, making it easy for customers to review what’s covered or not.

InsureMyTrip

Compare plans from more than two dozen providers.

More than 70,000 customer reviews.

“Anytime Advocates” help customers navigate the claim process and will work on behalf of the customer to help with appealing a denied claim.

Includes a link to plans that offer COVID coverage.

Compare plans from 11 providers.

Search coverage by sporting activity, including ground, air and water sports.

Many types of plans available for students, visiting family members, new immigrants, those seeking COVID quarantine coverage and more.

Compare different insurance plans from 35 providers.

Over 5,600 customer reviews on Trustpilot, with an average 4.9 stars out of five.

Formerly known as AardvarkCompare, AARDY includes a “Travel Insurance 101” learning center to help customers understand various policies and benefits.

Quote search results page includes COVID-coverage highlighted in a different color to make it easier for customers to review related limits.

Whether you’re looking for an international travel insurance plan, emergency medical care, COVID coverage or a policy that includes extreme sports, these providers have you covered.

Our full analysis and more details about each organization can be found here: The Best Travel Insurance Companies Today .

Allianz Global Assistance .

Travel Guard by AIG .

USI Affinity Travel Insurance Services .

Travel Insured International .

World Nomads .

Berkshire Hathaway Travel Protection .

Travelex Insurance Services .

Seven Corners .

AXA Assistance USA .

There are a few scenarios when spending extra on travel insurance doesn't really make sense, like:

You booked flexible airline tickets.

Your hotel room has a good cancellation policy.

It's already included in your credit card.

You haven't booked any nonrefundable activities.

» Learn more: When you don't need travel insurance

Yes, especially for nonrefundable trips and travel during the COVID-era. Whether you purchase a comprehensive travel insurance policy or have travel insurance from your credit card, you shouldn't travel without having some sort of travel protection in place to safeguard you and your trip. Travel insurance can protect you in case of an unexpected emergency such as a canceled flight due to weather, a medical event that requires hospitalization, lost luggage and more.

There are many good travel insurance policies out there and a policy that may be great for you may not be good for someone else. Selecting the best plan depends on what coverage you would like and your trip details.

For example, World Nomads offers a comprehensive travel insurance policy that has excellent coverage for adventure sports. Allianz provides coverage for trips of varying lengths of time through its single trip plans and multi-trip plans. Some providers offer add-on options like Cancel For Any Reason travel insurance. If you’re not sure which plan to go with, consider looking at trip insurance comparison sites like Squaremouth or Insuremytrip.

Yes, you can. However, it's better to purchase it sooner rather than later, ideally right after booking your trip because the benefits begin as soon as you purchase a policy.

Let’s say you’re going on a trip in a month and a week before departure, you fall and break your leg. If you’ve purchased a travel insurance policy, you can use your trip cancellation benefits to get your nonrefundable deposit back.

Most comprehensive travel insurance plans offer trip cancellation, trip interruption, emergency medical and dental, medical evacuation, trip delay and lost luggage coverage. Many plans offer COVID coverage, but you’ll always want to check to ensure that the policy you choose provides that benefit if you’re traveling during these times. Some plans may also allow you to add features like Cancel For Any Reason travel insurance.

It depends which credit card you have. Premium travel cards like the Chase Sapphire Reserve® and The Platinum Card® from American Express offer travel insurance benefits if you book a trip using your card or points.

However, the coverage provided by the credit cards is usually lower than if you purchased a standalone policy. Review the travel insurance benefits on your credit card and check that the limits are adequate before foregoing from purchasing a separate plan.

Let’s say you’re going on a trip in a month and a week before departure, you fall and break your leg. If you’ve purchased a travel insurance policy, you can use your

trip cancellation benefits

to get your nonrefundable deposit back.

It depends which credit card you have. Premium travel cards like the

Chase Sapphire Reserve®

The Platinum Card® from American Express

offer travel insurance benefits if you book a trip using your card or points.

Unpredictability is one of the mind-opening joys of travel, but travel insurance should contain no surprises. The time you spend to understand your options will be well worth the peace of mind as you embark on your next adventure.

Whether you’re seeking a single or a long-term policy, each travel insurance option offers different strengths and weaknesses. Choosing the right policy depends on your trip needs, your budget and how important various benefits are to you.

Keep reading

If you want to dig in deeper to world of travel insurance, these resources will point you in the right direction.

What is travel insurance?

How much is travel insurance?

Is travel insurance worth it?

What does travel insurance cover?

Does travel insurance cover COVID?

Insurance Benefit: Trip Delay Insurance

Up to $500 per Covered Trip that is delayed for more than 6 hours; and 2 claims per Eligible Card per 12 consecutive month period.

Eligibility and Benefit level varies by Card. Terms, Conditions and Limitations Apply.

Please visit americanexpress.com/benefitsguide for more details.

Underwritten by New Hampshire Insurance Company, an AIG Company.

Insurance Benefit: Trip Cancellation and Interruption Insurance

The maximum benefit amount for Trip Cancellation and Interruption Insurance is $10,000 per Covered Trip and $20,000 per Eligible Card per 12 consecutive month period.

Insurance Benefit: Baggage Insurance Plan

Baggage Insurance Plan coverage can be in effect for Covered Persons for eligible lost, damaged, or stolen Baggage during their travel on a Common Carrier Vehicle (e.g., plane, train, ship, or bus) when the Entire Fare for a ticket for the trip (one-way or round-trip) is charged to an Eligible Card. Coverage can be provided for up to $2,000 for checked Baggage and up to a combined maximum of $3,000 for checked and carry-on Baggage, in excess of coverage provided by the Common Carrier. The coverage is also subject to a $3,000 aggregate limit per Covered Trip. For New York State residents, there is a $2,000 per bag/suitcase limit for each Covered Person with a $10,000 aggregate maximum for all Covered Persons per Covered Trip.

Underwritten by AMEX Assurance Company.

Insurance Benefit: Car Rental Loss & Damage Insurance

Car Rental Loss and Damage Insurance can provide coverage up to $75,000 for theft of or damage to most rental vehicles when you use your eligible Card to reserve and pay for the entire eligible vehicle rental and decline the collision damage waiver or similar option offered by the Commercial Car Rental Company. This product provides secondary coverage and does not include liability coverage. Not all vehicle types or rentals are covered. Geographic restrictions apply.

Underwritten by AMEX Assurance Company. Car Rental Loss or Damage Coverage is offered through American Express Travel Related Services Company, Inc.

How to maximize your rewards

You want a travel credit card that prioritizes what’s important to you. Here are some of the best travel credit cards of 2024 :

Flexibility, point transfers and a large bonus: Chase Sapphire Preferred® Card

No annual fee: Bank of America® Travel Rewards credit card

Flat-rate travel rewards: Capital One Venture Rewards Credit Card

Bonus travel rewards and high-end perks: Chase Sapphire Reserve®

Luxury perks: The Platinum Card® from American Express

Business travelers: Ink Business Preferred® Credit Card

1x-10x Earn 5x total points on flights and 10x total points on hotels and car rentals when you purchase travel through Chase Travel℠ immediately after the first $300 is spent on travel purchases annually. Earn 3x points on other travel and dining & 1 point per $1 spent on all other purchases.

60,000 Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $900 toward travel when you redeem through Chase Travel℠.

1x-5x 5x on travel purchased through Chase Travel℠, 3x on dining, select streaming services and online groceries, 2x on all other travel purchases, 1x on all other purchases.

60,000 Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $750 when you redeem through Chase Travel℠.

1x-2x Earn 2X points on Southwest® purchases. Earn 2X points on local transit and commuting, including rideshare. Earn 2X points on internet, cable, and phone services, and select streaming. Earn 1X points on all other purchases.

50,000 Earn 50,000 bonus points after spending $1,000 on purchases in the first 3 months from account opening.

Advertisement

Photo Appears to Capture Path of Bullet Used in Assassination Attempt

Michael Harrigan, a retired F.B.I. special agent, said the image captured by Doug Mills, a New York Times photographer, seems to show a bullet streaking past former President Donald J. Trump.

• Share full article

By John Ismay

Reporting from Washington

• Published July 14, 2024 Updated July 15, 2024

Follow the latest news on the Trump assassination attempt .

In documenting the Pennsylvania campaign rally on Saturday afternoon that turned into an attempt on a former president’s life, Doug Mills, a veteran New York Times photographer, appeared to capture the image of a bullet streaking past former President Donald J. Trump’s head.

That is the assessment of Michael Harrigan, a retired F.B.I. special agent who spent 22 years in the bureau.

“It absolutely could be showing the displacement of air due to a projectile,” Mr. Harrigan said in an interview on Saturday night after reviewing the high-resolution images that Mr. Mills filed from the rally. “The angle seems a bit low to have passed through his ear, but not impossible if the gunman fired multiple rounds.”

Simple ballistic math showed that capturing a bullet as Mr. Mills likely did in a photo was possible, Mr. Harrigan said.

Mr. Mills was using a Sony digital camera capable of capturing images at up to 30 frames per second. He took these photos with a shutter speed of 1/8,000th of a second — extremely fast by industry standards.

The other factor is the speed of the bullet from the firearm. On Saturday law enforcement authorities recovered an AR-15-type semiautomatic rifle at the scene from a deceased white man they believe was the gunman.

“If the gunman was firing an AR-15-style rifle, the .223-caliber or 5.56-millimeter bullets they use travel at roughly 3,200 feet per second when they leave the weapon’s muzzle,’’ Mr. Harrigan said. “And with a 1/8,000th of a second shutter speed, this would allow the bullet to travel approximately four-tenths of a foot while the shutter is open.”

“Most cameras used to capture images of bullets in flight are using extremely high speed specialty cameras not normally utilized for regular photography, so catching a bullet on a side trajectory as seen in that photo would be a one in a million shot and nearly impossible to catch even if one knew the bullet was coming,” he said.

In Mr. Harrigan’s last assignment, he led the bureau’s firearms training unit and currently works as a consultant in the firearms industry.

“Given the circumstances, if that’s not showing the bullet’s path through the air, I don’t know what else it would be,” he said.

John Ismay is a reporter covering the Pentagon for The Times. He served as an explosive ordnance disposal officer in the U.S. Navy. More about John Ismay

Our Coverage of the Trump Rally Shooting

The Investigation : F.B.I. officials told Congress that the 20-year-old gunman who tried to kill Donald Trump used his cellphone and other devices to search for images of Trump and President Biden .

Security Blind Spots : Even as investigators continue to examine what happened at the Trump rally, it is already clear that there were multiple missed opportunities to stop the gunman  before the situation turned deadly.

The Gunman : In interviews, former classmates of the suspect described him as intelligent but solitary , someone who tried to avoid teasing by fellow students.

Secret Service Director : Kimberly Cheatle  returned in 2022 to lead the agency she had served for nearly 30 years. Now, the assassination attempt on Trump has thrown her tenure into uncertainty .

Fears of What’s Next : Among voters, there is growing anxiety that America’s political divide is nearly beyond repair, and the shooting only made things worse .