How to Start a Travel Agency: An Introductory Guide

Starting a travel agency can be a fun, fulfilling and profitable career. There is no doubt travel agencies have evolved over time, but even with the rise of online booking sites, travel agents are continuing to see a growth in sales as travelers seek a higher level of service to plan custom-tailored trips.

With the number of resources available today, anyone with a passion for travel can become a travel agent, even if you don’t have prior professional travel experience. The following guide will show you how you can start a travel agency and earn money in a career you love.

Steps for starting a travel agency

Why start a travel agency?
Find a franchise or host
Learn the products you're selling
Establish an online presence
Find clients
Market your travel agency

Why start a travel agency?

The Travel Industry is one of the largest in the World! Most of us don’t realize how big it is due to the many segmented categories that contribute to its overall breadth and depth. We usually just think of hotel, tour, cruise, transportation, excursion, and resort companies, though there are so many more.

In fact, according to the World Travel & Tourism Council, last year travel and tourism grew 3.9 percent, above global GDP growth of 3.2 percent and contributing a record $8.8 trillion and 319 million jobs to the world economy. The report also found that the travel and tourism industry generated 10.4 percent of all global economic activity last year. The U.S. travel and tourism industry generated $1.9 trillion in economic output; supporting 9.5 million American jobs and accounted for 2.9% of U.S. GDP!

The Travel Industry Is Resilient and Demand Is At An All-Time High

One thing we know is the travel industry is incredibly resilient. Despite setbacks and pauses in worldwide travel, the demand and fervor to get back out and explore are at an all-time high and the numbers reflect that. Travel revenue has already matched or is set to surpass 2019, making 2022 and beyond, banner years for travel.

Not only is the demand for travel up, but the demand for luxury accommodations and bucket-list destinations has been moved to the forefront. There’s no better time than now for travel advisors to position themselves to catch this wave.

The Value of a Travel Agent is at an All-Time High

Being a travel advisor is more than just knowing the trendiest travel destinations. Advisors protect their clients’ travel investments. When travel restrictions went into effect, travel agents advocated for their clients to get them home safely and get refunds or credits for future travel. Travelers who opted to book without a travel professional often found themselves on hold for hours and with limited options.

Even as the world opens back up, travelers will need to navigate a web of guidelines that will vary from destination to destination. Travel agents will play a critical role in providing guidance on safe destinations and activities and protecting travelers’ investments.

Capitalize on the Demand in Travel that is to Come

Getting a new business up and running doesn’t happen overnight. If you are considering starting a travel agency, now is a good time to establish the foundation of your business, to receive training, and to learn the ins and outs of the industry so you can be in a position to capitalize on the surge in travel that is to come.

Starting a travel agency with a franchise or host

Whether you are a seasoned pro or you are new to the industry, starting a travel agency with a franchise or host agency can make things a lot easier and minimize risk. By aligning yourself with one of these larger entities, you can tap into an established vendor network and gain access to enhanced buying power.

With a franchise, you own and operate your own travel agency business while leveraging the power of an established brand. The franchisor will provide you the systems, training, marketing and infrastructure to start and grow your travel agency.

A host is simply a membership organization. The collective buying power of the group allows members access to better rates from travel providers compared to an independent operator. As a member of the host, you may have access to limited training, marketing and support, but it will not be nearly as robust as what you would receive from a franchise.

When deciding if a franchise or host is right for you when starting your travel agency, there are a few things to consider:

Tools & Support: With a franchise, you will get robust technology tools, marketing programs and ongoing training and business development coaching to help you start and grow your travel agency. With a host agency, technology, marketing and personalized training are limited, if they are provided at all. You may have to seek outside sources and programs for training and back-end support.
Cost: A franchise will typically have a higher upfront cost than a host, but that includes all the tools and support mentioned above. Although you may pay less upfront with a host, over time, the cost of paying for the tools and support you need can add up.
Commissions: With most franchises, you will pay a royalty. This is a small percentage of your total sales. Host agencies typically utilize commission splits, with the amount varying from host to host.
Brand Recognition: A franchise typically has an established and recognizable brand, which helps bring you instant credibility when starting a travel agency. A host does not provide a recognizable brand and you will be required to build brand awareness on your own.

[Watch] What advice would you give to a new travel agent?

Andy started his travel agency in 2013 and grew his business incrementally with the help of a franchise. See what advice he gives to new travel agents who are just starting out.

Start learning the products you’ll be selling as a travel agent

The travel world is huge, and you’re never going to know everything, but if clients are going to be entrusting you with their hard-earned dollars, you should probably know what you’re talking about, or at least know where to turn if there is something you don’t know. Fortunately, there are lots of resources available to help you learn about the many travel options, so you can help your client find the trip that is perfect for them.

Enroll in travel supplier training courses

Almost all the major travel supply companies, from cruise lines to all inclusive resorts, offer travel agent training programs at no cost. Simply put, the travel providers want you, as a travel agent, to sell more of their products. The more you know about their products, the better you can sell them.

These trainings are often online, so you can complete them at your own pace. When you’re just starting your travel agency, it’s a great idea to enroll in a few of the major company’s training courses. Having a base knowledge of the of the most popular products available and how they compare will be highly beneficial. As you define your niche (more on that to come) you can be more selective about the trainings that are most relevant to you.

Talk to your BDM

In addition to training courses, almost all major travel suppliers also have Business Development Managers (BDMs). One of the main jobs of a BDM is to establish and grow travel agency business. Remember, travel companies want you to sell their products! That means BDMs are there to help you learn about the travel offerings they provide and help you with any questions that may arise when you are working with a client.

Most BDMs cover regional territories. It is a great idea to figure out who your BDM is for any travel provider you plan on selling and reach out to them personally. Establishing that relationship early on can go a long way in helping you gain valuable knowledge and can pay dividends down the road.

"Show initiative," said Dan Jemez, BDM for Florida, Mississippi and Louisiana for AIC Hotel Group (Hard Rock Hotels) at Travel Weekly's CruiseWorld. "If I see that you're trying, that's the kind of person I'm going to invite on a [familiarization trip], that's the kind of person I want to help grow their business."

Start traveling!

It’s one thing to take an online course or talk to a BDM about a river cruise down the Danube. But when you think about it, there’s no better way to gain knowledge about a product or destination than to travel there and experience it yourself.

One of the great perks of being a travel agent is you can travel at greatly reduced rates or even for free. Many travel suppliers offer exclusive travel agent rates and familiarization (FAM) trips. FAMs are free or deeply discounted trips offered exclusively to travel agents (and sometimes your guests) so you can experience a product or destination firsthand. Have we mentioned yet that travel suppliers want you to sell their product?

It may sound too good to be true, but traveling is one of the best things you can do when opening a travel agency.

Establish an online presence for your travel agency

As with any new business, when starting a travel agency, it is important to establish an online presence. Ultimately, this is will play a key part in your marketing efforts and influence how clients find you. Before you can start marketing though, you need to establish a few online basics.

Set up your website

In today’s digital age, a website is the lifeblood of nearly every business. If you are working with a franchise or host, they will likely help you set up and maintain your website. If you’re doing it on your own, there are plenty of great resources available to help you design a website, or you can hire a web development company. There are a few key things to consider when setting up your website

Pick a short, easy to remember and easy to spell URL
Make your site easy to use and easy to navigate
Make sure your site is mobile friendly
Make your site informative and provide value to anyone who visits

Create a Google My Business account

With a Google My Business account, you can create a free business listing that includes pictures, information about your business, links to your website and a link to call you directly. Your business profile will be visible in Google searches that match certain terms. This is an easy and free way to drive more traffic to your business.

Set up social media profiles

Your customers probably don’t want to know about your cat’s new sweater, but they do want to know about a sale on cruises to the Western Caribbean. When starting a travel agency, it’s a good idea to create social media profiles for your business that are separate from your personal profiles. Most platforms, like Facebook, allow you to create a business profile so you can include information about your business and links to your website.

Social media continues to be one of the leading ways to connect with customers, but it can be overwhelming. Rather than spreading yourself thin posting to five or six different platforms, start by focusing on just one or two sites. It’s a good idea to pick the social platforms your customers are most likely to use.

Make a Yelp business listing

Reviews play a huge role in the consumer decision making process, and Yelp continues to be a leading site for reviews. By creating a business profile with Yelp, you will make your business more visible to potential customers searching for travel agent services. Like with a Google business profile, a Yelp business page allows you to include photos, links to your website, and other important information about your business. Yelp business listings are free to create with the option to pay for enhanced advertising options.

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Stay on track and get helpful tips about all the steps needed to start your own home-based business like creating a business plan, getting your tax ID number, setting up your home office and marketing your business. Download the free checklist today.

Finding clients when starting a travel agency

Perhaps the most important step when opening a travel agency is finding clients. Without clients, you don’t have a business. But how do you go about finding customers?

Start with family and friends

The best place to find clients is closer than you may realize. Ask yourself:

Do I have neighbors that recently went on vacation?
How about friends that love travel?
Have I ever gone on a trip with family?

Your family and friends are already traveling. Why not get them to book their travel through you? Starting with family and friends not only lets you get your feet wet with a more forgiving audience, it helps you establish credibility and start building a referral network. Word of mouth continues to be one of the best ways to expand any business. By providing exceptional service to your family and friends, they are like to refer you to other people.

Focus on a niche

The travel world is enormous and knowing every detail about every resort and cruise ship is impossible. By focusing on a specific niche, you can become an expert in a particular area and build a loyal group of customers interested in your niche. It is ideal if you can find a niche you are passionate about or already involved with. This allows you to build meaningful relationships with potential clients and expand your customer base through an already established network. There are all sorts of niches you can focus on:

Family travel
Luxury river cruising
Adventure travel
There are even crocheting travel groups

Tap into your local community

Tapping into your local community is another great way to find clients. Customers still like supporting local businesses owned by people they know and trust. Joining the local chamber of commerce, getting involved with parent-teacher associations, participating in local Business Network International (BNI) chapters or sponsoring a youth sports team can go a long way in establishing your presence in the community and growing a strong network of potential clients.

[Watch] How a new travel agency owner grew her business

Laura used to work in finance for a multinational construction company before starting her own travel agency. Her first client was a former colleague who was thrilled with the service he received. Watch how Laura’s business quickly grew through her personal network from there.

Marketing your new travel agency

Marketing is key to getting your name out there when starting a travel agency. It helps build brand awareness and provide information about the services you offer. You don’t have to be a marketing expert though. Sometimes, simple things can go a long way, especially when you’re just starting out.

Let your family and friends know

One of the best things to do when you first open your travel agency is to announce it to your family and friends. Create a post on your personal Facebook or LinkedIn page or send an email to your personal contacts explaining your new travel agency business. As we stressed earlier, your personal network is one of the best ways to grow your business.

Think local

Unfortunately, you probably won’t have a marketing budget the size of Apple’s to create international campaigns. That’s ok. As we talked about above, tapping into your local community can go a long way in building brand awareness.

Focus on finding interesting local events and having a presence there. Set up a booth at a local farmers market or sponsor a holiday parade. Getting your name in front of the people in your immediate community builds trust and familiarity with potential clients.

Run a contest

Contests are a great way to engage potential customers and capture valuable information when building up your database. One idea is a photo contest. Ask people to submit their best travel photos for a chance to win a $100 travel gift certificate (or whatever value you feel comfortable with).

To enter, they must provide their name, email, and phone number. Not only are you engaging your potential customers in a fun way, you are also collecting valuable information you can use to market to them in the future. Beyond just their contact info, you can also see what type of travel they like based on the pictures they submit.

Stay top of mind with email

As you start to grow your database, it’s important to stay top of mind with your customers. Email is a great way to do this. Try sending a weekly email newsletter promoting different specials and promotions. As you start to segment your contacts, you can even have multiple newsletters based on specific types of travel, so you are sending the right deals to the right people.

When you are just starting your travel agency, it can be tempting to spread your dollars thin on a variety of marketing efforts. Try focusing on a few things to start. Once you start growing your database a little bit, you can begin expanding your efforts.

Start a travel agency with Cruise Planners

Starting a travel agency can be a fun, fulfilling and profitable career, and with the number of resources available today, anyone with a passion for travel can start a travel agency. That said, as with any new business, there is a substantial amount of work needed to get your travel agency off the ground.

Cruise Planners is the largest home-based travel agency franchise company in the nation, and we have been helping people from all backgrounds start and grow successful travel agencies for over 25 years. We provide proven systems and processes which require less start-up capital and reduce the risk of failure compared to a traditional new business.

With Cruise Planners, you’ll receive comprehensive training and ongoing business development coaching to help you grow your business. Our award-winning marketing will help you get your name in front of potential customers, and our industry-leading technology lets you work seamlessly from anywhere in the world. Cruise Planners offers a low-cost franchise opportunity that is very affordable compared to many traditional franchises.

Take the first step to being your own boss with an amazing home-based business opportunity. You can work from anywhere and travel the world. Download our digital guide to see how you can start a travel agency with Cruise Planners.