To start a travel agency, pick a niche you can explain in one sentence and choose how you will work: on your own, with a host agency or as a franchise. Then register the business, check the licence and consumer protection rules where you sell, and buy the right insurance. Get access to suppliers, decide how you will charge, and build a simple website with a request form. Set up one system for requests, proposals and bookings, and win your first clients through people who already know you.
This guide takes each step in turn, with practical examples. Most people can do it in two to three months, part-time.
The 10 steps at a glance
- Pick a niche.
- Choose your business model.
- Register the business and open a business bank account.
- Check licences and consumer protection rules.
- Get the right insurance.
- Get access to suppliers.
- Decide how you will make money.
- Build a simple website with a clear request form.
- Set up one system for requests, proposals and bookings.
- Win your first clients.
Travel agency, tour operator or DMC?
These words get mixed up, and the difference matters for your licences and your margins. Decide which one you are before you go further.
| Type | What it does | Who it sells to |
|---|---|---|
| Travel agency | Plans and books trips using other companies’ services | Travellers |
| Tour operator | Designs its own trips and sells them as packages | Travellers or agencies |
| DMC (destination management company) | Runs ground services in one destination | Agencies and tour operators |
Many small agencies sit somewhere in between. A tailor-made agency that builds its own itineraries and sells them as one price is often a tour operator in the eyes of the law. If that sounds like you, also read our guide on how to start a tour company.
1. Pick a niche you can explain in one sentence
A niche makes everything easier. Your website, your supplier list and your marketing all get shorter. Travellers also trust a specialist more than a generalist.
Good niches combine a place, a type of trip and a type of traveller. Here are a few examples:
- Honeymoons in Tanzania and Zanzibar for UK couples.
- Multi-generation family trips to Italy.
- Walking holidays in Japan for people over 55.
- Ski trips for families with young children.
Pick something you know well, because that knowledge is what clients pay for. You can widen the niche later, once the first one works.
2. Choose your business model
You have three main options. Each one changes your startup costs, your supplier access and how much of each booking you keep.
| Model | How it works | Good for | Trade-off |
|---|---|---|---|
| Independent agency | Your own company, your own supplier contracts | People with industry contacts and some capital | More setup work and more responsibility |
| Host agency | You run your own business under a host’s supplier contracts and accreditation | New agents who want to start quickly | You share commission with the host |
| Franchise | You buy into an existing brand and its systems | People who want a ready-made playbook | Upfront fees and less freedom |
Host agencies give you access to suppliers, booking tools and training. In return, they keep part of your commission or charge a monthly fee. Ask each host for its exact terms in writing and compare at least three.
Most people starting alone choose a host agency or work from home as an independent. You can switch models later.
3. Register the business and open a business bank account
Register your company in the form that suits your country and your risk. Common choices are a sole trader, a limited company in the UK, or an LLC in the US. A limited company or LLC separates your personal assets from the business. An accountant can tell you which form fits your tax situation.
Open a separate business bank account from day one. Travel money moves in large amounts: deposits in, supplier payments out. Mixing it with your personal account makes tax returns hard and can break consumer protection rules. In some countries, client money must sit in a trust account or be protected in another way.
Also register for sales tax or VAT if your country requires it. Travel has its own VAT rules in Europe. The UK uses the Tour Operators’ Margin Scheme, and the EU has a similar special scheme for travel agents. Ask your accountant how they apply to you.
4. Check licences and consumer protection rules
There is no single worldwide travel agency licence. The rules depend on where your business is based, where your clients live and what you sell. Selling a package (two or more travel services at one price) usually brings more duties than selling a single hotel or flight.
Here are the main rules to know about:
- European Union. The Package Travel Directive (EU) 2015/2302 requires package organisers to protect travellers’ money if the business goes bust. Each country applies it through its own law and its own insolvency protection scheme.
- United Kingdom. If you sell packages that include flights, and some other flight bookings, you usually need an ATOL licence from the Civil Aviation Authority. The Package Travel Regulations 2018 also require insolvency protection for packages without flights. Membership of a trade body such as ABTA is voluntary, but many agencies join.
- United States. There is no federal licence. Some states require seller of travel registration, including California, Florida, Washington and Hawaii. Some also require a bond or a trust account. Check the rules for your state and the states where your clients live.
- Everywhere else. Many countries have a tourism ministry or licensing body for travel businesses. Search for it by name, then call them.
Rules change, and the details matter. Before you take your first deposit, check the rules for your own country with the official body or a travel lawyer. A one-hour call with a specialist costs far less than fixing a mistake later.
5. Get the right insurance
Insurance protects you when something goes wrong on a trip you sold. Talk to a broker who works with travel businesses. The main types to ask about are:
- Professional liability, also called errors and omissions (E&O) in the US or professional indemnity in the UK. It covers claims that you made a mistake, such as a wrong date or missed visa advice.
- Public liability, for injury or damage linked to your business.
- Cyber insurance, if you store client data and payment details.
- Insolvency protection, where the law requires it for packages.
If your host agency includes some cover, ask exactly what it leaves to you.
6. Get access to suppliers
Suppliers are the hotels, airlines, tour operators, DMCs and transfer companies you book for clients. You need a way to book them at trade rates or earn commission.
For flights, the direct route is accreditation. Outside the US, that means IATA accreditation. In the US, it is ARC. Both let you issue airline tickets yourself, and both come with financial requirements. Most new agencies skip this at first. They book flights through a host agency or a consolidator, a wholesaler that issues tickets for agencies.
For everything else, start with your niche. If you sell Tanzania honeymoons, you need a few good safari lodges, a ground operator in Arusha and a few beach hotels in Zanzibar. Contact them directly, explain what you sell and ask for trade rates and terms. Many tour operators and DMCs also have trade portals where agents can register.
Keep notes on every supplier: rates, commission, payment terms and cancellation rules. You will use these every time you price a trip.
7. Decide how you will make money
Travel agencies usually earn money in one or more of three ways:
- Commission. The supplier pays you a share of the price. The rate varies by supplier and by your agreement.
- Markup on net rates. The supplier gives you a net price. You add your margin and sell at one total price.
- Service or planning fees. The client pays you directly for your time, often as a fee that comes off the final price if they book.
Planning fees are worth considering for tailor-made trips. They filter out people who are only collecting ideas, and they pay you for real work. For example, an agency might charge a fixed planning fee for any trip over ten days and deduct it from the final invoice. Pick a number that fits your market and test it.
Write down your expected earnings per trip before you launch. Our travel agency business plan guide includes a simple worked example you can copy.
8. Build a simple website with a clear request form
Your website has one job at the start: turn the right visitors into requests. Five pages are enough. You need a home page, a few sample trips, an about page, a page on how you work and a request form.
Keep the request form short. Ask for travel dates or month, group size, rough budget, destination ideas and a phone number. Each answer helps you reply with something specific.
When a request comes in, reply fast. The first agency to reply with something useful often gets the first real conversation. Our guide on how to respond to travel requests faster covers reply times, first-reply templates and follow-up.
9. Set up one system for requests, proposals and bookings
Pick one system for requests, proposals and bookings from day one. It feels like overkill with three clients. With thirty, a mix of inbox, spreadsheet and documents starts to lose requests and miss payment dates.
Your system should handle a few things:
- Every request lands in one place, with its source.
- Follow-ups are scheduled, so no request goes quiet by accident.
- Proposals are built from a library of stays, activities and transfers you reuse.
- Each booking has a payment plan with deposit and balance dates.
- A checklist tracks what still needs confirming before departure.
OpenVoy is built for this. It covers request forms, a sales CRM with follow-up automations, an itinerary builder and booking management with payment plans and checklists. Whatever you choose, set it up before your first client, while there is nothing to move across.
For help with the proposal itself, read how to write a tailor-made travel proposal.
10. Win your first clients
Your first clients usually come from people who already know you. Tell your network what you do, in your one-sentence niche. Ask friends, former colleagues and past travel companions to pass your name on.
Then add a few channels that fit your niche. Here are a few examples:
- A honeymoon specialist partners with wedding planners and venues.
- A family ski agency joins school parent groups and local sports clubs.
- A Japan walking specialist writes detailed guides on routes and seasons.
Guides on your website that answer real traveller questions bring visitors for years. Each trip you deliver well also brings referrals, so ask happy clients for a review and an introduction.
Keep paid ads for later, once you know which trips sell and what a booking is worth.
Your first 90 days
Here is an example plan for someone starting part-time. Adjust the pace to your own time.
| Weeks | Focus |
|---|---|
| 1 to 2 | Niche, business model, host agency comparison |
| 3 to 4 | Company registration, bank account, licence checks |
| 5 to 6 | Insurance, supplier contacts, trade rates |
| 7 to 8 | Website, request form, booking system set-up |
| 9 to 12 | Tell your network, publish first guides, handle first requests |
Startup checklist
- Niche written in one sentence
- Business model chosen (independent, host or franchise)
- Company registered and business bank account open
- Licence and insolvency protection rules checked for every market you sell to
- Professional liability and public liability insurance in place
- Supplier list with rates, commission and terms
- Pricing model decided: commission, markup, fees or a mix
- Website live with a short request form
- One system for requests, proposals, payments and checklists
- First 20 people told about your new agency
Frequently asked questions
Do I need a licence to start a travel agency?
It depends on where you are and what you sell. In the UK, flight-inclusive packages usually need an ATOL. In the EU, package organisers need insolvency protection under the Package Travel Directive. In the US, states such as California, Florida, Washington and Hawaii require seller of travel registration. Check with the official body in your country before you take money.
How much does it cost to start a travel agency?
It depends on your model. A home-based agent with a host agency mainly pays for company registration, insurance, a website and host fees. An independent agency with its own accreditation and office needs much more capital. List every cost, then ask at least three providers for quotes.
Can I start a travel agency from home?
Yes. Many agencies run from home, especially those that work with a host agency. You still need a registered business, the right insurance and the licences your market requires. A good website and fast replies matter far more than an office address.
Do I need IATA accreditation?
Only if you want to issue airline tickets yourself. IATA accreditation, or ARC in the US, comes with financial requirements. Most new agencies book flights through a host agency or consolidator instead and apply for accreditation later, if their volume justifies it.
How do travel agents get paid?
Through supplier commission, a markup on net rates, service fees paid by the client, or a mix. Tailor-made specialists often charge a planning fee and deduct it if the client books. Write down what you expect to earn per trip before you launch.
Next steps
Once you know your niche and model, write it all down in a travel agency business plan. If you plan to design and run your own trips, read how to start a tour company as well.
Book an OpenVoy demo to see how one system can hold your requests, proposals and bookings from your first client.