How to Start a Travel Agency

Are you obsessed with travel? Do family and friends ask for your travel advice and recommendations? If you are looking at a career path in the travel industry, starting your own travel agency business is a rewarding vocation that can bring good income and flexibility.

While COVID-19 has brought the momentum of the travel industry to a halt, It’s worth remembering that even with the current challenges, the sector was breaking records just over a year ago. It is safe to say that travel is one of the world’s most irrepressible industries and even though it is not clear when people will be able to travel as they once did, we know that it is only a matter of time. There are around 241 thousand businesses in the UK travel industry , and for those travel agents that can adapt to the industry trends, things are definitely looking up.

Wondering how to start a travel agency? Find out what skills you need, the important considerations to keep in mind and how to legally establish your business.

What Does a Travel Agency Do?

It isn't always clear what tour operators and travel agencies do. Basically, one organises the holiday and the other sells it.

The main focus of a tour operator is to deal with the operational side of the holiday. This involves bringing each element of the holiday (travel, accommodation and tours) into one package. However, there are also tour operators that act as middlemen by selling holidays to travel agencies while also dealing with customers.

A travel agency should take the client’s requirements into account when selling and administering packages. Being independent and impartial, the agents themselves will get in touch with a range of tour operators to secure the best possible deal for their client, taking into account the cost and the total holiday experience.

Part of the agent’s job is also to sell the different elements that make up a holiday, including hotel rooms, flights and entry to attractions.

What Type of Travel Agency Should You Start?

Here are a few options to help ensure that your travel agency will be a success.

1. Independent Travel Agency — If you decide to start up an independent travel agency, you will have complete control of the day-to-day operations. All decisions on staffing, branding and clients, will also be yours.
2. Travel Consortium — This is a group of independent agencies and travel agents that work together because they realise they have more power collectively to negotiate, purchase and take commissions for their clients. A larger group can better negotiate upgrades, extra facilities and special offers, which the independent traveller may struggle to get.
3. Work from Home — If you are the sort of person who likes the flexibility and independence of working from home, Travel Counsellors , Holiday Franchise Companies and InteleTravel are the types of companies that would suit how you want to work. These companies can offer you the support and the tools that working from home requires.

How to Start a Travel Agency

If you want to create a travel agency, you’ll need to create a solid business plan. A unique plan and niche will enable you to stand out from the crowd amongst the many different branches of the travel industry. With a clear business plan, concentrating on your established goals, you can focus on progressing towards your target.

Here are several aspects to consider when writing your business plan:

• Conduct Market Research and Find Your Niche — Market research is essential so you can recognise a gap in the market to exploit. Thinking outside the box, you might find today's travellers are looking for something different from their holidays. For example, some honeymooners may want a backpacking adventure rather than a luxury resort stay.
• Brand Development — A strong brand image is the key to success after you have discovered your niche. The travel industry is competitive, so a well-developed brand will enable you to get noticed. Think about how you want your customers to feel when they visit your website, view your advertising or use your services.
• Understand the Legal Side — A travel business is — for the most part — a fairly simple one to set up. Licences aren't always needed in some countries, but an Air Travel Organiser’s Licence is required in the UK.
• Develop a Funding Strategy — Initially, costs may not be high since there isn't a great need for large amounts of space or expensive equipment. Working from home is possible, but you will need to plan how you will acquire your funding. Basic funding should cover marketing materials and there will also be branding and advertising to consider. Thinking of the future, you may need to consider the greater expenses of office space and staff.
• Travel Agency Marketing — It is beneficial to plan your marketing strategy as early as possible, as this is where most of your budget will go as an essential part of starting up a successful travel agency.

Other aspects to consider for your business plan are your business model and legal structure. You’ll also need to consider where you will offer your services, set prices for those services and design your recruitment strategy for hiring employees.

Ready to Form Your Travel Agency Company?

If you are ready to start a travel agency business, it’s time to form your company. You can form a limited company or go the sole-trader route . Deciding and completing your company formation can be the most challenging part of starting a business, but it’s crucial to your success.

Are you ready to start a travel agency business? At Mint Formations , we help you form your limited company or self-employed business and take away the stress of starting a business. We’ll secure your brand name and get your company registered fast so you can start doing what you love.

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