7 Things You Need Before Starting a Travel Agency

Starting a Travel Agency

Even though it was hit by recent events, and most of all the pandemic, the tourism industry is one of the world’s biggest economic drivers, so much so that it’s crucial in the development of many countries. With all of its many variations, it’s obvious how important it is in the creation of new businesses trying to make a profit by satisfying the demand for different touristic services. Operating a business in this ever-growing industry can be very profitable, which is why it’s a great idea to start a travel agency.

Travel agencies facilitate people’s travels, helping them organize their trips to different destinations. They offer various services including transport, accommodation and food services. They also create plans and itineraries, and sometimes tourist products.

1. Create a Brand

Before starting your agency, you need to create a brand that will represent your business. Your brand will help you stand out from your competition. A strong name, an eye-catching logo, and a catchy slogan will make you memorable, and they will give your business identity. Make sure that your brand represents your travel agency perfectly.

2. Start Your Business Plan

It’s best to start building your travel agency business plan as soon as possible. This so-called living document can be edited and updated, so you can perfect it along the way. Starting a business always takes a lot of planning and strategizing, and creating this document will help you stay more organized, predict potential issues and challenges, avoid mistakes and start your business equipped with knowledge.

3. Choose Your Services

There are countless opportunities for business in tourism, and many travel agencies decide to cover many niches to achieve higher sales. Nevertheless, that’s not always a great idea, especially for new businesses. Choosing a niche means competing with a smaller number of experienced companies. It will allow you to provide more complete solutions, as a business specialized in the particular service you want to offer, which will also make you stand out and build a great reputation. Some of the options you have include organizing holiday trips, vacation packages, hiking, adventure tourism, cultural tours, religious tourism, and so on.

4. Carry Out the Necessary Legal Procedures

To start any type of business many different legal procedures must be carried out. Typically, you start with formally creating the company, and in different areas, there might be different procedures. How simple or complicated starting a travel agency may be will greatly depend on the state you are starting your company in, as well as the business structure you choose.

Next, you will need to get various permits and licenses to be able to operate legally. These will also differ from state to state, so it’s very important to learn everything you can about the legal requirements for starting a traveling agency. You will also have to obtain a state tax ID, and an EIN (Employer Identification Number), get insurance, and so on.

5. Create a Budget

To start a travel agency, you will have to plan the initial investment budget, as well as contemplate all the operating and potential expanses of maintaining the business during the first few months, until you eventually start making a profit.

The initial investment for opening a travel agency includes covering all the legal procedures, renting or buying a property for an office, decorating, creating a website, developing a sales and promotion strategy, purchasing business software, etc. The ongoing costs include maintenance costs, utilities (water, electricity, internet), rent, staff salaries, etc. Additionally, you should take into consideration taxes, insurance, paying your suppliers, and so on.

6. Develop a Complete Marketing Strategy

A complete marketing strategy that relies on different channels, including traditional ones and digital ones is crucial for the success of your travel agency. Invest in a rich and powerful online presence to raise brand visibility and reach a large audience. Travel agencies can benefit greatly from an effective Instagram promotion since this social media platform is based on visual content, and nothing can attract travelers more than beautiful images and videos. Make sure your website offers a superb personalized user experience and valuable content, and that visitors can find any information they need easily.

7. Focus on Customer Service

Good customer service is important in any business but in tourism it’s critical. For this type of business, reputation is everything, and reviews and testimonials play a huge role in this. And everything that can contribute to a great customer experience is key. Apart from providing excellent services, you should also make sure that your customer service is seamless. And your well-trained employees are crucial for this.

However, you should also keep in mind that more and more people decide to purchase services online, so take advantage of technologies such as AI-based software to provide a personalized experience to your website visitors. Finally, you can also invest in customer relationship management (CRM) software to take your customer experience to the next level.


Not many things are certain in this world. However, one thing we can count on is that people’s longing for new places and cultures will never end. So even though creating a travel agency can be challenging, with the right tools, it can also be a great investment opportunity. This guide can get you prepared for this great adventure and make the journey ahead easier.