If you’re considering launching a Travel Agency Business from the comfort of your home, you’re stepping into a thriving sector. The investment to become a travel agent is notably modest, presenting abundant prospects for individuals passionate about travel sales. Moreover, establishing a home-based travel agency has emerged as the most favored path to become a travel agent in today’s market.
“Home-based independent advisors continue to dominate the travel agency landscape, accounting for 72% of travel advisors.” – Phocuswright, US Travel Agency Landscape 2023
According to Phocuswright’s US Travel Agency Landscape 2023, home-based independent advisors are the driving force in the travel agency sector, representing a significant 72% of all travel advisors.
Are you ready to take the plunge and establish your own travel agency business?
Venturing into any business requires dedication, but having reliable guidance can significantly ease the journey. We are here to support you, providing answers and direction as you embark on your entrepreneurial adventure in the travel agency business!
P.S. *Before diving headfirst into starting your own travel agency business, ensure you understand ‘what travel agents do‘. Familiarize yourself with the role to solidify your commitment.* 🤗
10 Essential Steps to Launching Your Home-Based Travel Agency Business
Below is a summary of crucial steps to start your travel agency business from home. If you’ve already addressed some of these, feel free to jump directly to the most relevant step for you!
Starting a travel agency business can seem overwhelming, but these steps are designed to boost your confidence and preparedness by a significant margin (yes, 10,000% is not a typo!). Let’s explore the essential preliminary steps for launching your travel agency business.
Here are the steps to take to start your travel agency business from home:
1. Define Your Travel Agency Business Niche
A niche is invaluable for your travel agency business. When you start your home-based travel agency, a specialized niche will help define your brand, inspire your travel agency business name, and concentrate your marketing efforts. Launching a travel agency business without a niche is akin to navigating without a compass. Will you specialize in a particular destination? Perhaps you’ll emulate Andres Zuleta, an expert in Japan tours:
Or perhaps you’ll concentrate on a travel style, similar to Deb Fogarty, a cruise specialist:
Or maybe you resonate with Will Medina’s passion for destination weddings and honeymoons:
Alternatively, the corporate travel sector, like Karen Hurlbut’s focus, might appeal to you:
Identifying your niche is the foundational challenge when starting your travel agency business! We offer a complimentary brainstorming exercise to help you pinpoint niches that align with your passion.
Explore our free brainstorming exercise to develop your niche here!
2. Select Your Travel Agency Business Name
Vendors require a travel agency business name for their records, so finalize one before you start selling travel services.
Whether you partner with a host agency or operate independently, a name for your travel agency business is essential. Vendors—hotels, cruise lines, airlines, etc.—will need a travel agency business name for their records before you can begin selling travel. Having a defined niche will greatly assist in deciding on your travel agency business’s name.
Launching your travel agency business (whether from home or elsewhere) demands significant effort. The last thing you need is a legal notice for trademark infringement just as your travel agency business opens. We guide you through the critical considerations when choosing a name for your agency. Are there competitors with similar names that might affect your search engine rankings? Are the desired URLs available? Are there any copyright issues? Is the name concise enough for marketing materials? We delve into these aspects and more.
Discover the key considerations when choosing your travel agency business name!
3. Determine Your Travel Agency Business Structure
Your business structure can be adjusted as your travel agency business evolves.
A fundamental step in starting a travel agency business from home is choosing a business structure. Several factors influence the best structure for you. Do you need to protect personal assets like your home or car? What’s your budget for setup costs?
We help you understand the various business structure options for your new travel agency business: sole proprietorship, partnership, LLC, S Corp.
When you are starting your travel agency business, the low setup cost of a sole proprietorship might seem appealing. However, it’s important to know that you can modify your business structure as your needs and your travel agency business grow.
As your travel agency business expands and booking volume increases (and with it, potential liability), you can transition to a structure offering greater personal liability protection, such as an LLC. While more expensive initially, and potentially not feasible for everyone starting a travel agency business, the asset protection provided by an LLC becomes crucial as your business matures.
And what exactly is an S Corp? We’ll provide the details and clarify when this structure becomes relevant for your travel agency business.
We’ll guide you through choosing the right business structure for your travel agency business here.
4. Develop Your Travel Agency Business Plan
The next critical step in starting your travel agency business? A comprehensive business plan!
While not strictly mandatory to launch a travel agency business, a business plan is highly recommended. Although I didn’t create one when starting this website, I possessed extensive knowledge in online marketing, SEO, and the travel industry. I also had established industry connections. Most individuals starting a travel agency business from home lack experience in either business startups or the travel sector. This is where a business plan proves invaluable.
A business plan compels you to thoroughly consider each facet of your business and formulate a strategy. Will you adhere to it perfectly? Unlikely. But it serves as a vital reference and helps organize your thoughts. Dedicate substantial time to this process; it’s not something to rush.
Furthermore, we’ve simplified the process with our free 15-page travel agency business plan template! Simply download and adapt it to your travel agency business.
Travel Agency Business Plan
Click to explore the details of creating a travel agency business plan (and download your free copy)! While I didn’t write a business plan for Host Agency Reviews, I did create a very detailed travel agency business plan specifically for you. 🙂 It’s fully completed with a fictional travel agency business, providing a useful resource with data and ideas for your own plan.
Here’s a preview of the business plan. Note that this version is not editable! To access the editable version, download the travel agency business plan template (an editable version of the one shown below).
That’s valuable, right? Now, let’s proceed to the logistical aspects of setting up your government paperwork.
5. Register Your Travel Agency Business with State and Federal Agencies
You’re progressing wonderfully!
Starting a travel agency business from home isn’t as daunting as initially perceived, is it? A clear roadmap simplifies the startup process significantly.
State Registration for Your Travel Agency Business
Now that you have:
- Defined your niche,
- Chosen your name,
- And decided on your business structure.
The next step is to officially inform your state government about your new travel agency business. The Small Business Administration (SBA) website offers guidance on how to register your business name by state. If you are forming an LLC, the SBA also provides a state-by-state guide on LLC registration.
Important note: When operating under a DBA, your businesses, despite different names, are legally considered the same entity.
State registration is crucial as proof of registration is required to open a business bank account and for other essential business operations (like running business ads or securing loans). File these certificates safely as they will be vital legal documents for your travel agency business.
Initially, you might register your travel agency business as “Adventure Travel.” However, as your focus evolves, perhaps towards becoming a local expert in family vacations, “Adventure Travel” might seem less fitting. You might want a brand that better reflects family travel, such as “Family Getaways,” for this specific clientele and branding.
Do you need to inform the state about this new brand, even though it’s still your original travel agency business? Yes.
You’ll need to file for a DBA with the state. DBA stands for “Doing Business As,” also known as a fictitious name, trade name, or assumed name.
Your DBA essentially declares, ‘My legal business name is Adventure Travel, but I also operate as Family Getaways.’
To understand the advantages and disadvantages of a dual-brand strategy, consider Andrey Zakahrenko’s agency evolution into two distinct brands. (Note: This was our inaugural podcast episode, so please excuse the initial sound quality!)
Key takeaway about DBAs: They do not create a separate legal entity. DBAs simply allow you to legally conduct business under multiple names.
A word of caution: With a DBA, all your businesses under different names are legally one entity. If “Family Getaways” faces a lawsuit, “Adventure Travel” is also liable, as they are legally the same travel agency business.
Federal Registration with the Financial Crimes Enforcement Network
Let’s also discuss federal requirements. To combat money laundering, which can occur through businesses, you’ll need to complete some federal paperwork.
You’ll need to fill out the Beneficial Ownership Information (BOI) form to ensure compliance.
Don’t worry, despite the intimidating name of the overseeing body—Financial Crimes Enforcement Network—the process is not overly complicated.
6. Obtain a Federal Employer Identification Number (FEIN) – Recommended
A Federal Employer Identification Number (FEIN), similar to a social security number for your travel agency business, identifies your business for tax purposes and is also known as an EIN.
Technically, a sole proprietor or single-member LLC without employees isn’t required to have an FEIN, as they can use their social security number for tax filing.
However, for security and organizational reasons, obtaining an FEIN is highly recommended from the outset of your travel agency business.
It’s free to obtain an FEIN and takes just a few minutes online. A significant advantage of getting one early in your travel agency business setup is that if you later transition to a business structure requiring an FEIN, you won’t need to change your SS# to an FEIN across legal documents, bank accounts, etc.
Also, consult with your tax advisor during tax season, as certain business structures might still allow filing under your SS# even with an FEIN.
It can be complex, which is why professional advice is invaluable! 😊
7. Establish Your Travel Agency Business Financial Accounts
Similar to FEIN, a separate business bank account and credit card aren’t strictly necessary for sole proprietors starting a travel agency business. However, they become incredibly beneficial, especially during tax preparation!
Separating your personal and business finances from the start simplifies accounting and helps track business expense deductions.
Wondering what travel expenses are deductible for a travel advisor? We have resources for that as well. 🙂
Important note: If you choose a business structure that offers personal liability protection, like an LLC, maintaining separate business and personal accounts is mandatory. Mixing funds and paying personal expenses from business accounts (or vice versa) can negate your personal liability protection.
The rationale is that if you’ve structured your travel agency business as an LLC to protect personal assets, but you’re mixing finances, the legal separation between the business and owner becomes blurred. If they’re indistinguishable financially, personal assets may be considered business assets in legal terms.
Financial management is a critical aspect of running a successful travel agency business.
Don’t worry, we provide comprehensive guidance on all financial aspects of your travel agency business:
- Considerations when choosing a bank,
- Required documents for bank account setup,
- Best business credit cards,
- Common bookkeeping software for travel agencies, and
- How to find a bookkeeper for your agency.
setting up travel agency financials
Find more information on setting up your travel agency business financials! Looking for a step-by-step guide to organize your travel agent financials? We have just the resource!
8. Evaluate if a Host Agency is Right for Your Travel Agency Business
We mentioned host agencies earlier. As our site name suggests, we strongly advocate for host agencies for those starting a travel agency business… though they aren’t universally suited for every agency model.
Our travel advisor research reports consistently show that most new advisors opt for the host agency route.
Your next step involves significant research: Determine whether to affiliate with a host agency, franchise, or operate independently.
Key questions to consider:
Don’t feel overwhelmed; we have answers to all these critical questions. 🙂
Start by reading our article, “The Top 10 Benefits of Using a Host Agency.” If it resonates with you, proceed to our guide on choosing a host agency and explore our best host agencies of 2024.
We also offer a helpful tool in our host agency selection article: a spreadsheet designed to narrow down your top host agency or travel franchise choices! 😊
9. Explore Our Home-Based Travel Agent Resources Page
We’ve compiled a dedicated page packed with useful links to save you extensive web searches. Here it is: the Home-Based Travel Agent Resources page. 😊
Furthermore, connecting with host agencies, travel franchises, and consortia is now easier than ever! You can directly visit a host’s profile and message them using Host Agency Reviews’ Q&A feature. This platform also allows many agents to benefit from the questions asked and answers provided!
How to ask a host agency a question
Just starting to narrow down hosts? Begin by posing the same key questions to each in their profile’s Q&A section.
10. Enroll in HAR’s 7 Day Setup Accelerator Course
That list might seem a bit daunting, right?
Setting up a travel agency business involves considerable groundwork. Wouldn’t it be beneficial to have an experienced guide, someone who has assisted over 10,000 agencies, to lead you through the setup process?
We offer just that with our 7 Day Setup Accelerator course.
But don’t just take our word for it. Hear from our students about the value of concise instructional videos, a supportive community, and direct access to the HAR team:
This course is developed and taught by HAR Founder, Steph Lee, and professional Educator, Bridget Lee. It features nine chapters with over 70 instructional videos, course quizzes, peer accountability, and monthly meet-ups with HAR members and industry experts. Explore the HAR 7DS Accelerator course below!
7 Day Setup Accelerator Course
As you can see, there are numerous aspects to consider when you start a travel agency business from home. But we’re here to provide extensive resources and support.
Take a deep breath, and we’ll tackle it step-by-step together!
Once you launch your travel agency business from home, many other demands will arise, making early groundwork crucial for smart business management.
Starting a Travel Agency Business from Home: Time Expectations
Generally, it takes several years for your agency to become fully established. This is typical for most entrepreneurial ventures, especially in the travel agency business.
Our travel advisor research reports consistently indicate that it usually takes about three years to generate a sustainable income from a travel agency business.
Here’s why building cash flow can take time when starting a travel agency business:
- Building a client base and establishing your brand takes time.
- Commission payments from bookings are typically received after client travel completion (or after final payment with some vendors). For instance, bookings made in January for travel in November mean revenue might be delayed, affecting first-year financials.
- Travel is often an infrequent purchase, one to two times a year for most. Building a consistent business in the travel agency business can take longer compared to industries with more frequent customer interactions.
Starting a Travel Agency Business from Home: Financial Expectations
And finances – you’re likely curious about the financial aspects of starting a travel agency business from home, right? 😊
Realistically, there’s no single, definitive financial forecast. It depends on numerous variables. However, to address this curiosity, we surveyed hundreds of new travel agents about their income in the initial years of their travel agency business.
Here’s concrete data on travel agent income and startup costs in the first five years of business!
Curious about what to financially expect when starting a travel agency business from home? Read “Travel Agency Start Up Costs and Earnings: What to Expect.“
Additional Travel Agent Income Insights
Want deeper insights into travel agent income data? Here’s a recommended reading list to provide a clearer picture of potential earnings when starting a travel agency business:
HAR’s Research Papers + Archive: These articles are essential for understanding travel agent earning potential.
How do Travel Agents Make Money: This article explores the various revenue streams in the travel agency business. 😊
Travel Agent Commissions: How do travel agent commissions operate? This article provides a comprehensive breakdown of commission structures in the travel agency business.
A Travel Agent’s Salary: This offers a perspective on earnings across different travel agent types (employees, home-based, corporate, leisure, etc.) within the travel agency business.
Are You In?
There are numerous exciting aspects of a travel agent career. Attend our annual (free) event, Host Week, to get a feel for what awaits you once you decide to start a travel agency business.
The travel industry offers opportunities to travel to beautiful destinations, enhancing your professional expertise. You’ll have access to FAM trips, ship inspections, and site inspections. As your sales grow, you’ll qualify for travel agent rates.
However, remember that being a travel advisor requires work. You’ll just have significantly more enjoyment doing it than most! 🙂
Questions? Ask Away.
Having grown up in the travel industry and worked with thousands of aspiring travel agency business owners, I am deeply passionate about this field. And it’s not just me.
The entire HAR team is dedicated to assisting you in starting and growing a thriving travel agency business. Ask questions in the comments, email us, or reach out on social media. We are enthusiastic about welcoming new individuals to our incredible industry! 🤗
Editor’s Note: This article was originally published in July 2021. We updated this resource and republished it on the publish date above.
