A travel agency business plan answers five questions. Who do you sell to? What do you sell? How will clients find you? How do you make money on each trip? And what do you need to get started? Write the answers down in ten short sections, then test them with simple numbers: trips per year, times average trip value, times your margin.
Below you will find a template with what to write in each section, a worked numbers example and a checklist. Most people can write a first draft in a weekend. The template also works for tour companies and DMCs.
Why write a business plan at all
A business plan helps you make decisions before they cost money. It forces you to pick a niche, set prices and see whether the numbers work. It also shows a bank, investor or business partner that you have thought it through.
Keep it short. Ten to fifteen pages is plenty for a small agency. A plan you read and update every few months is worth more than a long one that sits in a drawer.
If you have not yet chosen your niche or business model, start with our guide on how to start a travel agency. If you plan to design and run your own trips, read how to start a tour company.
The travel agency business plan template
Use these ten sections in order. Each one lists what to write, with an example line. The examples come from a made-up agency, Kopje Travel. It is a two-person agency in the Netherlands that plans tailor-made trips to Southern Africa.
1. Summary
Write this last. In half a page, say what the business does, who it serves, how it makes money and what you need. If a reader only sees this page, they should understand the plan.
Example: “Kopje Travel plans tailor-made trips to Botswana, Namibia and South Africa for Dutch and Belgian couples aged 45 to 70. We aim for 48 trips in year one, with an average trip value of €9,000.”
2. The business
Describe your business model and legal set-up. Are you an independent agency, part of a host agency, a franchise or a tour operator? Name the company form, the owners and where you are based.
Example: “Kopje Travel is a private limited company (BV) owned equally by the two founders. We act as package organiser and hold insolvency protection through a national guarantee fund.”
3. Who you sell to
Describe your ideal client in detail: age, location, budget, travel style and what they care about. One clear client type is better than five vague ones.
Example: “Couples who have travelled widely, want privacy and good guiding, and plan six to twelve months ahead. They value expert advice and will pay for it.”
4. What you sell
List your trip types, a typical itinerary and your price range. Explain how you earn money: commission, markup on net rates, planning fees or a mix.
Example: “Private self-drive and guided trips of 12 to 18 days. We buy at net rates from lodges and ground operators and sell at one package price. We charge a €250 planning fee, deducted from the trip price on booking.”
5. Market and competitors
Name five to ten competitors. For each one, note what they sell, their prices and where they are strong. Then write down how you will be different. Use real observations, such as their websites, brochures and reviews.
Example: “Three large Dutch operators sell Southern Africa from fixed brochures. Two small specialists sell tailor-made trips but reply slowly. We will offer tailor-made trips with a first proposal within 48 hours.”
6. How clients will find you
This is your marketing and sales plan. List your channels, what each one costs and how you will handle each request from first contact to booking.
Example: “Year one channels: our own guides on Botswana and Namibia, partnerships with two photography clubs, and referrals. Every request gets a personal reply within four working hours and follows a set follow-up plan.”
Be specific about the sales process. How fast will you reply, how will you follow up, and how soon will you send a proposal? Our guides on responding to travel requests faster and writing a tailor-made travel proposal can help you fill this part in.
7. Operations
Explain how you will deliver trips. Cover your main suppliers, payment terms, licences, insurance and the tools you will use.
Example: “Core suppliers: two ground operators, twelve lodges and one flight consolidator. Clients pay a 30% deposit on booking and the balance 70 days before travel. We use one system for requests, proposals, payment plans and booking checklists.”
On tools, pick one system from the start for requests, proposals and bookings. It keeps your numbers in one place, which makes this plan easier to update. OpenVoy is one option: it combines a travel agency CRM, an itinerary builder and booking management, with reports on requests and bookings.
Also note the rules you must follow. In the EU, the Package Travel Directive (EU) 2015/2302 requires package organisers to protect client payments against insolvency. In the UK, flight-inclusive packages usually need an ATOL licence. In the US, some states require seller of travel registration, including California, Florida, Washington and Hawaii. Check your own country’s rules with the official body or a travel lawyer.
8. Team
List who does what, and what experience each person brings. Note any freelancers or advisers, such as an accountant or a travel lawyer.
Example: “Founder one handles sales and proposals, with eight years as a safari consultant. Founder two handles operations and finance. We use a freelance accountant and a travel law firm for contracts.”
9. Financial plan
This is the core of the plan. Include a sales forecast, a list of costs, a break-even point and a cash flow view. The worked example below shows how to build each one.
10. Risks and what you will do about them
List the five biggest risks and your plan for each. Common ones in travel include a slow first year, a supplier failing, currency moves, a crisis in your destination and one founder falling ill.
Example: “Currency: lodges price in US dollars and we sell in euros. We review prices each quarter and include a currency clause in our terms.”
A worked numbers example
These numbers belong to the made-up Kopje Travel. They show the method. They are not market data. Replace every figure with your own.
Step 1: Forecast your trips
Start with requests and work forward. A forecast built from requests is easier to check than a guess at total sales.
| Line | Year one (example) |
|---|---|
| Requests per month | 40 |
| Requests per year | 480 |
| Share of requests that book | 10% |
| Trips booked per year | 48 |
If you have no history yet, make your best guess and label it as one. After three months of real requests, replace the guess with your own figures.
Step 2: Work out gross profit
Gross profit is what you keep from each trip after paying suppliers. It is your commission, markup and fees combined.
| Line | Year one (example) |
|---|---|
| Trips booked | 48 |
| Average trip value | €9,000 |
| Total bookings | €432,000 |
| Gross margin | 15% |
| Gross profit | €64,800 |
| Gross profit per trip | €1,350 |
Notice that total bookings are much larger than your income. Most of that money belongs to suppliers. Plan with gross profit, and keep the booking total for context.
Step 3: List your fixed costs
Fixed costs are what you pay whether you sell one trip or a hundred. Here are Kopje Travel’s example costs for year one, before paying the owners.
| Cost | Per year (example) |
|---|---|
| Website and hosting | €2,400 |
| Software | €3,600 |
| Insurance and insolvency protection | €2,000 |
| Marketing | €9,000 |
| Accountant and legal | €3,000 |
| Memberships and fees | €2,000 |
| Supplier visits | €4,000 |
| Phone, office and other | €2,000 |
| Total fixed costs | €28,000 |
Step 4: Find your break-even point
Break-even is the number of trips you need to cover your costs. Divide fixed costs by gross profit per trip.
€28,000 ÷ €1,350 = 20.7. So Kopje Travel needs 21 trips a year to cover its costs. That is before paying the founders anything.
Now add owner pay. Say each founder wants €40,000 a year. The total to cover becomes €28,000 + €80,000 = €108,000. Divided by €1,350, that is 80 trips a year.
That is the useful part of the example. At 48 trips, the agency covers its costs and leaves €36,800 for two founders. That is a fair first year. It is still short of a full salary for both. The plan should say how the business grows from 48 to 80 trips: more requests, a higher booking rate, a higher trip value or a better margin.
Step 5: Test what happens if you are wrong
Change one number at a time and see what happens. This shows which number matters most.
| Scenario (example) | Trips | Gross profit | After fixed costs |
|---|---|---|---|
| Base plan | 48 | €64,800 | €36,800 |
| Booking rate drops to 7% | 34 | €45,900 | €17,900 |
| Booking rate rises to 13% | 62 | €83,700 | €55,700 |
| Average trip value €11,000 | 48 | €79,200 | €51,200 |
In this example, the booking rate moves the result most. That tells the founders where to focus: reply faster, follow up better and send stronger proposals.
Step 6: Plan your cash flow
Travel cash flow is tricky. Clients pay deposits months ahead, and you pay suppliers on their own schedule. Most of a deposit belongs to your suppliers until the trip runs.
In many countries, package organisers must protect client money. That may mean a trust account, a bond or insurance. Even where it is not required, treat deposits as supplier money until the trip is delivered.
Make a month-by-month table for year one. Show money in from deposits and balances, money out to suppliers, and your fixed costs. Look for months where the balance runs low. Season matters too. If most of your clients travel in July to October, much of your gross profit arrives in those months, while costs run all year.
Mistakes to avoid
A few mistakes come up again and again in first plans.
- Counting total bookings as income. Plan on gross profit.
- Leaving out owner pay. Your plan should pay you.
- Guessing the booking rate high. Start low and update with real data.
- Ignoring cash timing. Deposits and supplier payments rarely line up.
- Writing it once. Review the plan every quarter against your real numbers.
Business plan checklist
- Summary written last, on one page or less
- Business model and company form stated
- One clear ideal client described
- Trips, prices and income model listed
- Five to ten competitors reviewed
- Marketing channels and sales process written down
- Suppliers, payment terms, licences and insurance covered
- Team roles and advisers listed
- Sales forecast built from requests and booking rate
- Fixed costs, break-even and owner pay calculated
- At least three “what if” scenarios tested
- Month-by-month cash flow for year one
- Top five risks with a plan for each
Frequently asked questions
How long should a travel agency business plan be?
For a small agency, ten to fifteen pages is enough. The summary should fit on one page. Keep the financial tables simple, so you can update them every quarter.
Do I need a business plan for a home-based travel agency?
Yes, even a short one. It helps you choose a niche, set prices and see how many trips you need to earn a living. A two-page version with the worked numbers above is far better than none.
What gross margin should I plan for?
It depends on your model, your suppliers and your pricing. Commission rates, net rates and fees vary a lot. Ask your suppliers and any host agency for their actual terms, then build your plan on those figures.
How do I forecast sales with no history?
Start with requests. Estimate how many requests you expect each month and what share will book. Use cautious figures and label them as guesses. Replace them with real data after your first three months.
Can I use this template for a tour company or DMC?
Yes. The sections are the same. A tour company or DMC adds more detail on trip costing, supplier contracts and the licences where it operates. Our guide on how to start a tour company covers those parts.
Next steps
Copy the ten sections into a document and fill in what you know today. Leave gaps where you need to check facts, then close them one by one. Once you have the numbers, track them every month: requests, booking rate, trip value and margin.
Book an OpenVoy demo to see how your requests, proposals and bookings can feed the numbers in your plan.