How to Start a Travel Agency Business From Home: A Comprehensive Guide

If you’re dreaming of starting a travel agency from home, the timing is opportune. The cost to become a travel agent is generally accessible, and the opportunities abound for those with a passion for selling travel experiences. Furthermore, establishing a travel agency from home has become the most favored pathway to become a travel agent.

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.”

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Inspired to join this growing trend and launch your own travel agency business?

Starting any business presents challenges, but having a clear path and expert advice can significantly ease the journey. We’re here to support you and address your questions as you embark on this new entrepreneurial endeavor!

PS: If you’re unsure about what do travel agents do, we recommend familiarizing yourself with that first before fully committing to starting your own travel agency.

10 Essential Steps to Starting Your Travel Agency From Home

Here’s a summary of the steps required to successfully launch your home-based travel agency business. If you’ve already tackled some, feel free to jump ahead using the links!

It’s understandable to feel overwhelmed by the process. But if you’re aiming to start a travel agency from home, following these steps will equip you with significantly more confidence. What are the crucial preliminary steps for beginning your travel agency business? Let’s delve in.

Here is a breakdown of the steps to take when starting your travel agency from home:

1. Find Your Travel Agency Niche

Embracing a niche is key to success. When you initiate your home-based travel agency, a specific niche will be instrumental in defining your brand, selecting your travel agency name, and focusing your efforts effectively. Starting a travel agency business without a niche is akin to navigating without a compass (or, realistically, a smartphone today). Will your focus be on a particular destination? Perhaps you’ll follow the example of experts specializing in tours to specific regions, like Japan.

Alternatively, you might concentrate on a type of travel, such as cruising holidays.

Maybe your passion lies in areas like destination weddings and honeymoons, catering to romantic getaways.

Or perhaps you are drawn to the corporate sector, aiming to book business travel for companies.

Whatever your area of interest, identifying your niche is the foundational problem to solve when you’re starting your travel agency business! We provide a free exercise designed to help you brainstorm niches that align with your passions.

Try out our free brainstorming exercise to help you develop your niche here!

2. Choose Your Travel Agency’s Name

Vendors will require your travel agency name for their records, so ensure you have one decided before you begin selling travel services.

Whether you opt to work with a host agency or operate independently, selecting a name for your agency is a necessary step. Industry suppliers (hotels, cruise lines, airlines, etc.) will need your travel agency name for their booking and commission records, meaning you need a name finalized before you can start selling travel. Having your niche already defined can greatly assist you in deciding on your travel agency’s name.

Starting your travel agency (whether home-based or otherwise) involves considerable effort. The last thing you want upon opening is a notification of trademark infringement! We guide you through essential considerations when choosing your agency’s name. Are there competitors with similar names that could hinder your visibility in search results? Are the relevant website URLs available? Are there any existing copyrights? Is the name too long to fit neatly on marketing materials? We cover these points and more to help you make an informed decision.

Here’s what to consider when choosing your travel agency’s name!

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3. Choose a Travel Agency Business Structure

You have the flexibility to adjust your business structure as your needs change and your agency evolves.

A fundamental step in starting your travel agency business from home is determining its legal structure. Several factors influence the best choice for you. Do you possess personal assets, such as a home or vehicle, that you need to protect? What is your budget for setup costs?

We help you understand the various business structure options available for your new travel agency business: Sole proprietorship, partnership, LLC, and S Corp.

As you are beginning your travel agency business, a sole proprietorship’s lower cost might seem most appealing. It’s important to understand that your business structure can be updated as your operational needs evolve.

As your business grows and you handle more bookings (which increases potential liability), transitioning to a structure offering greater personal liability protection, such as an LLC, is a prudent option. While typically more expensive, an LLC provides crucial protection for your personal assets as your business expands, making it a valuable consideration even if not feasible initially.

And what exactly is an S Corp? Don’t worry, we explain the details and when this structure might be relevant for your situation.

We’ll guide you through choosing a business structure for your travel agency business here.

4. Create Your Travel Agency Business Plan

The next crucial step in starting your travel agency business is developing a business plan!

While not strictly mandatory to start an agency, creating a travel agency business plan is highly recommended. For individuals starting a travel agency from home who may lack extensive experience either in launching a business or in the travel industry itself, a business plan serves as an invaluable tool.

The primary benefit of a business plan is that it compels you to systematically consider every aspect of your business and formulate a strategic approach. While you won’t necessarily adhere to the plan rigidly at all times, it provides a valuable reference point and helps organize your thoughts. Dedicate substantial time to this process, as it requires careful consideration.

To make this process easier, we’ve developed a free 15-page travel agency business plan template! Simply download our template and customize it for your agency’s specific goals and operations.

Travel agency business plan template previewClick to learn more about how to create a travel agency business plan (and get your free download)!

We offer a completely filled-out example business plan for a fictional travel agency within the template. This example is useful as it provides concrete data and ideas that you can adapt for your own travel agency’s business plan.

That covers the planning stage. Now let’s move on to the necessary governmental paperwork.

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

You’re making great progress!

Starting a travel agency from home might feel less daunting than you initially thought, especially with a clear roadmap to follow through the startup process.

Registering with the State

With your foundational decisions made:

• You’ve identified your niche.
• You’ve chosen your agency name.
• You’ve decided on a business structure.

The next step is formally notifying the state government about your business formation. The Small Business Administration (SBA) website provides guidance on how to register your company name by state. If you’ve chosen an LLC structure, the SBA also offers a state-by-state guide on how to register your LLC.

A word of warning: When operating under a DBA, your business names are legally considered part of the same entity, even though they differ in appearance.

Registering your company with the state is a critical step, as this proof of registration is often required to open a business bank account and for various other business activities as your agency grows (e.g., running business advertisements, applying for loans). It’s wise to keep your registration certificates readily accessible in a file dedicated to your company’s legal documents.

When you initially start your travel agency business, you might register it under one name. However, over time, this could change or expand.

For example, perhaps you become known as the local expert for destination weddings. While your original name works, you might desire a more romantic brand for these specific clients and different marketing. So, you establish a new brand, perhaps “Beach Romance,” specializing solely in destination weddings.

Do you need to inform the state about this new brand, even though it’s fundamentally the same underlying company? Yes, you do.

You would need to file a DBA (Doing Business As) with the state. A DBA is also sometimes referred to as a fictitious name, trade name, or assumed name.

Your DBA filing essentially declares, ‘My formal business entity is [Your Registered Name], but I also operate under the name [Your DBA Name].’

One key point about DBAs is that they do not create a separate legal entity. DBAs simply allow you to legally conduct business under different names.

A word of warning: When using a DBA, your businesses, despite having distinct names, remain legally the same entity. This means if your “Beach Romance” brand faces a lawsuit, your primary registered company is also included in that legal action, as they are considered one entity.

Registering with the Financial Crimes Enforcement Network

Let’s briefly touch upon federal requirements. The federal government is actively working to combat money laundering. As money laundering can occur through businesses, you will need to complete some paperwork.

You will need to file the Beneficial Ownership Information (BOI) form to ensure compliance.

This process is generally straightforward, despite the somewhat intimidating name of the governing body—the Financial Crimes Enforcement Network.

6. Get an FEIN (Optional, but Recommended)

A Federal Employer Identification Number (FEIN), also known as an EIN, functions like a Social Security Number for your business, serving as a unique identifier.

Technically, an FEIN is not required if you operate as a sole proprietor or a single-member LLC without any employees, as you can use your personal Social Security Number for tax purposes.

However, many prefer not to use their SSN unnecessarily. It’s also beneficial to have all your business identification ducks in a row from the outset.

It’s free to obtain an FEIN and typically takes only a few minutes online. A significant advantage of getting one early when starting a travel agency is that if you later change to a business structure that mandates an FEIN, you won’t have to go through the hassle of updating legal documents, bank accounts, etc., from your SSN to the FEIN.

Always consult with your tax professional when preparing your taxes—depending on your business structure, you might still file under your SSN even if you have an FEIN.

This might seem confusing, which is why consulting professionals is always recommended!

7. Set Up Your Travel Agency Financials

Similar to the FEIN, when you’re starting a travel agency business, a separate business bank account and credit card aren’t strictly required if you’re a sole proprietor. However, you will undoubtedly appreciate having them when tax season arrives!

Establishing separate personal and business bank accounts from the beginning simplifies accounting and makes it easier to track business expenses for potential write-offs.

Curious about what travel expenses you can write off as a travel advisor? We have a resource covering that topic as well.

Important Note: If you choose a business structure that provides personal liability protection, such as an LLC, maintaining strict separation between your business and personal finances is mandatory. Mixing funds, like paying personal bills from your business account or vice versa, can potentially jeopardize your personal liability shield.

The legal reasoning is that while an LLC structure is intended to protect personal assets, commingling funds suggests the business and owner are not truly separate entities. If they are treated as one, then personal assets could be considered business assets in the event of legal action.

There is much to consider when it comes to your travel agency’s financials and laying a solid foundation.

Rest assured, we guide you through all aspects related to your travel agency’s financials:

• Factors to consider when selecting your bank.
• The necessary documents required by the bank.
• Recommendations for the best business credit cards.
• Common bookkeeping software utilized by travel agencies.
• How to find a bookkeeper for your agency.

Guide to setting up travel agency financialsFind more info on setting up your travel agency financials!Looking for a step-by-step guide to getting your travel agent’s financials in order? Conveniently, we have one available!

8. Decide if a Host Agency Is Right for You

We introduced the concept of host agencies at the beginning. And you might have noticed the name of the original source site. We are proponents of host agencies, especially for individuals starting a travel agency business, though this model isn’t suitable for every agency.

Nonetheless, our travel advisor research reports consistently demonstrate that new advisors overwhelmingly opt for the host agency route.

Your next step involves considerable research. You need to determine whether aligning with a host agency or franchise is best for you, or if you prefer to operate completely independently.

You might have questions such as:

Don’t be concerned; it’s natural to feel overwhelmed, but we have answers to all these questions.

To begin, explore our article, “The Top 10 Benefits of Using a Host Agency.” If after reading that you feel a host agency aligns with your goals for starting your travel agency, proceed to our guide on choosing a host agency and review our list of the best host agencies of 2024.

Additionally, we offer a helpful tool within our article on choosing a host agency or travel franchise. It’s a convenient spreadsheet designed to assist you in narrowing down your top host agency choices!

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9. Utilize Home-Based Travel Agent Resources

We have compiled a dedicated page packed with valuable links and resources to save you from extensive searching. You can find it here: the Home-Based Travel Agent Resources page.

Furthermore, connecting with host agencies, travel franchises, and consortia is made easy! You can visit a host’s profile directly and use the Q&A feature provided by the original platform. A great advantage of this approach is that numerous other agents can also benefit from your questions and the resulting answers.

Asking questions in a host agency Q&A forumJust starting to narrow down hosts? Begin by asking them each the same question in the Q&A section of their profile.

10. Consider a Travel Agency Setup Accelerator Course

Admittedly, going through this list of steps might feel a bit overwhelming.

The reality is that a significant amount of groundwork is necessary when starting a travel agency business. Wouldn’t it be beneficial to have guidance from experienced professionals who have helped thousands of agencies get started?

We offer an option for that too! It’s called the 7 Day Setup Accelerator course.

But don’t just take our word for it. Hear testimonials from students about the value they found in bite-sized instructional videos, a supportive community, and access to experienced teams:

The course content is developed and taught by industry experts. It includes comprehensive chapters with instructional videos, quizzes, peer accountability features, and opportunities for monthly meet-ups with industry members and experts. Explore the details of the 7 Day Setup Accelerator course below!

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Screenshot of 7 Day Setup Accelerator course materialsAs you can see, starting a travel agency business from home involves numerous tasks. However, we are committed to providing a wealth of resources and support to assist you.

So, take a deep breath, and approach it step-by-step with the available guidance!

Once your home-based travel agency is established, various other aspects will demand your attention. Therefore, laying a proper foundation as early as possible is a smart business practice.

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

Generally, it typically takes a few years for your travel agency business to gain significant traction. This timeframe is common for nearly all entrepreneurial ventures.

Our travel advisor research reports consistently indicate that it usually takes approximately 3 years for a home-based travel agent to start generating a sustainable income.

Here’s why it can take time to achieve positive cash flow when starting your travel agency business:

• Building a client base and establishing your brand requires time and consistent effort.
• Even after securing your first bookings, commissions are typically not paid until after the client has completed their travel, or sometimes after final payment is received from the vendor. If you make several bookings early in the year for travel scheduled much later, your initial year’s income might be limited.
• Travel is often an infrequent purchase for clients (typically 1-2 trips per year). Compared to businesses with more frequent transactions, building a steady stream of income through referrals and repeat clients can take longer.

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

And regarding finances, you likely want to know what to anticipate when it comes to the monetary aspects of starting that travel agency business from home!

There’s no single, simple answer, as income varies based on numerous factors. However, we sought to answer this question directly by surveying hundreds of new travel agents about their earnings in their initial years of business.

Here is concrete data on travel agent income and travel agency startup costs within the first 5 years of operation!

Curious about the financial outlook when starting a travel agency business from home? Read “Travel Agency Start Up Costs and Earnings: What to Expect.“

Even More Travel Agent Income Data

Want to explore travel agent income data in greater depth? Here’s a valuable reading list that provides insights into potential earnings when starting a travel agency business:

HAR’s Research Papers + Archive: These articles are essential reading to understand how much travel agents typically earn.

How do Travel Agents Make Money: This article specifically details the various ways travel agents generate income.

Travel Agent Commissions: How exactly do travel agent commissions function? This article provides a general explanation of the commission structures in the travel industry.

A Travel Agent’s Salary: This resource offers a picture of earnings across different types of travel agents (e.g., employees, home-based agents, corporate, leisure).

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Ready to Begin?

There’s much to look forward to in a travel agent career. Consider attending the (free) annual event, Host Week (referencing the original source’s event), to get a sense of what you can expect once you decide to start a travel agency business.

The travel industry offers opportunities to visit beautiful destinations, which can enhance your ability to serve clients. You’ll have chances to participate in FAM trips, ship inspections, and site inspections. As your sales volume increases, you may gain access to beneficial travel agent rates.

However, it’s crucial to recognize that you still need to work diligently as a travel advisor—the key difference is that you often have the enjoyment of doing so while engaging with travel (a significant upside)!

Questions? Ask Away.

Having grown up around the travel industry and worked with thousands of individuals looking to start a travel agency, this is a topic of deep expertise. And it’s not just my area of focus.

The entire team behind the original resource is dedicated to helping you start (and grow) a successful travel agency business. Feel free to ask questions in comment sections (referencing the original platform’s features), reach out via email, or connect on social media. Supporting new entrants into this fantastic industry is something we value greatly!

Editor’s Note: This article was originally published in July 2021 and updated on the publish date shown above.