business license for travel agent

How to Become a Travel Agent—Because, Believe It or Not, the Industry Is on the Rise

By Scott Bay

There’s a reason “how to become a travel agent” has been a continuously trending search phrase on Google—it is a career path that offers a flexible work environment and schedule, ample travel opportunities, and an immersion into a supportive world-wide industry. It's a surprise to some in 2023: Once the internet became widely available, it was largely believed that needing a travel agent was obsolete. However, even though the brick-and-mortar agencies with punny names in strip malls have vanished, the career is on-the-rise .

New software options are making it easier than ever for people to make money planning trips, either as a side hustle or as a full-time business. That’s why Cherikonda, India-based stay-at-home mother, Maya Kapoor-Miller, decided to enter the professional world as a travel agent this year, at 31. “I knew nothing about the travel industry prior to signing up,” says Kapoor-Miller, who decided to use San Francisco-based booking platform Dreamport to establish her online travel advisor business. “It is my first business in life, and the only one that you can start with no investment.”

But there's also a rise in demand. When people ventured back into the world after the pandemic, travel agents saw an overwhelming amount of business . And that momentum hasn’t stopped—when travel is complicated, like it was in 2020 and 2021, travelers turned to professional trip planners to create a seamless vacation. For better or worse, traveling has remained complicated and chaotic, with new rules being implemented (like Americans needing to pay a fee to visit Europe in 2024 ) and airline strikes and staffing issues. Offloading all of the nitty-gritty details to someone else is more appealing than ever.

For those entering the field, there's also the age-old motivator: a love of travel. 

Shelton Ellis, who is based in North Carolina, recently saw these opportunities and left behind more than 20 years in public relations and global advertising to turn his passion into a career. “I was born with a wanderlust that would wear Rick Steves out,” Ellis says. “I decided to take the leap and follow that lifelong yearning. Transitioning into this role was really about learning how to monetize what I'm passionate about.”

Whether you are looking for a new career path or a lucrative side-hustle—or simply curious about those taking the plunge—here’s how to become a travel agent, from the qualifications and education required, to anticipated earnings, according to those who have made the shift in the past year. 

What exactly does a travel agent do?

Travel agents, or travel advisors (the term is mostly interchangeable), manage everything that goes into a trip for their clients: the flights, car transfers, accommodations, restaurant reservations, and more—they even inspire the itinerary. The reason people turn to travel agents, aside from having a helping hand during any travel chaos , is also to tap into the travel agent’s first-hand knowledge of destinations, and their industry partnerships, which often lead to perks such as hotel upgrades, ideal airplane seats, and experiences that can’t be found on a search engine.

“You have to remember that as a travel agent, you will be a guide for people during their happiest moments—family reunions, weddings , baptisms, and once-in-a-lifetime experiences that people have dreamt of,” says Kapoor-Miller. “It has been one of the most rewarding aspects of being a travel agent. You navigate people, inform them, and help them choose.”

So, how do you become a travel agent?

There are many ways to become a travel agent, from joining an existing travel agency , to starting an independent business from the ground up. Others are opting for one of the buzziest start-ups in the travel industry, Fora . When it launched in 2021, the software company, which trains and provides search engine-optimized profile pages to advisors—at one point had a waitlist of over 30,000 people eager to begin a part-time gig. Travel photographer and Condé Nast Traveler contributor Amanda Villarosa is currently in the process of joining.

“I'm the person that friends and family come to for travel recommendations, tips and tricks, and general travel advice,” says Villarosa. “After discovering Fora and looking into it, I realized that it could be the perfect side-hustle, considering I'm already so involved in the industry.”

With additional flexibility, Villarosa was able to move from New York City to splitting her time between Denver and Los Angeles . She says that the sign-up was quite straightforward. “You're given a dedicated Fora email and have access to advising tools and fellow Fora advisors,” she says. “The training is in the form of Zoom meetings and videos, which you have the option to watch at your own pace. Once completed, you take a certification quiz and you're on your way to advising.”

The other ways in are slightly more involved. To begin an independent practice, you go about it like many other businesses. You will have to create an LLC, establish a business name, cultivate marketing materials, build a website, find clientele, and more.

Ellis found something in the middle, choosing to connect with an established travel agency. “Don't be afraid to reach out to an agency looking to take on new advisors and is willing to mentor," says Ellis. "I was fortunate to learn so much from Annie Chambers, the owner of Crafted Escapes , who has seven years in the business.” He now knows the ropes on everything from using itinerary-building software to destination-specific training, to the sales and marketing aspects of the trade.

Is there required education or qualifications?

Ellis says that there's no certification, per se, required to become a travel advisor, but there are countless training courses available like Departure Lounge ’s classes on navigating the industry through hotels and tour operators. He said it’s also important to stay on top of travel trends. Ellis recently completed travel agent training programs provided by premier cruise lines such as Virgin Voyages , Ritz-Carlton Yachts , and Cunard to help agents sell their products more accurately.

How much does a travel agent make?

What a travel agent earns depends on how many trips they successfully book for their clients. The entire model is commission-based, meaning agents earn a percentage of the total cost of the vacation they orchestrate. Many travel advisors choose to charge a flat-rate planning fee in addition to their commission, but balance is key—if you charge a high planning fee, it could lead to potential clients going elsewhere.

Harrison Pierce

Alex Erdekian

Charlie Hobbs

Fora ’s website states that “some of our full-time, expert advisors earn well into the six figures (or beyond).” So a lucrative career may be on the horizon, for those who are able to build a robust client base and excellent industry connections.

How much you make can also depend on where you live around the world. “I am being paid in dollars,” says India-based Kapoor-Miller. “So the currency fluctuations of the local exchange rate are not something I am worried about.”

What are the key skills required to become a travel agent?

“Travel agents need a mix of customer service, communication, destination knowledge, organizational, and problem-solving skills,” says Kapoor-Miller. “But I would say that adaptability, flexibility, curiosity, and cultural sensitivity top them all—you have to put yourself in other's shoes, and understand the requirements, hopes, and expectations of your clients along with any worries and questions they may have.”

It’s vital to have a passion for traveling, even the aspects of the process that aren’t as exciting, such as learning about new airline routes, train schedule updates, and industry news. “It can be an information-heavy hustle, and I believe it's important to be excited about it as that energy definitely transfers to your clients and partners,” Villarosa says.

Should travel advisors choose a specialization?

Many travel advisors have found success through becoming an expert in a few types of travel and destinations. “It's important to become an authority and learn as much as you can through personal experiences and continuing education,” says Ellis. “As a proud member of the LGBTQIA+ community , an avid snow skier, and scuba diver, I know not only the popular destinations but others that are off the beaten path, equally safe and adventurous for all travelers.” This helps travel agents establish a competitive edge, and hopefully convince potential clients to choose them for their expertise.

What are the benefits of being a travel agent?

“Flexibility tops them all,” says Kapoor-Miller. “And the ability to start without industry knowledge. If you worry that you are too old for this job, the good news is that this is a job you can enter and enjoy at any age.”

Another great perk is the "Familiarization trip,” says Ellis. “Tourism boards and hotels invite agents to visit and familiarize themselves with a particular country and its properties. After all, any accomplished salesperson should learn everything they can about their products first-hand...even if they're in Bora Bora.” It's hard work, but someone's got to do it. 

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An Overview On Travel Agent Licensing Requirements In The USA and Canada Go Back Button

You are considering becoming a professional travel agent, so you start doing your research on all the things you need to start selling travel. One of the things you may research or come across is licensing. Do you need licensing to start selling travel? The answer to that question is broken down below to hopefully provide you with the clarity you need to move forward.

Travel Agent Licensing Requirements For Travel Agents In The United States

The licensing requirements in the US for travel agents is not much of a licensing process. There are no testing, training or qualification process needed. All that is required is to complete a simple form, pay a small fee and just like that, you can start selling travel in the USA. There are certain states however that have their individual "Seller Of Travel Requirements." These states are California, Florida, Iowa, Washington and Hawaii. We will look at the individual licensing requirements for those later on in this article for those looking to trade in travel products and services in any of those 5 states. 

Travel Agent Licensing Requirements For Travel Agents In Canada

Selling travel legally in Canada is not so easy as in the US. This is especially so for those living in the province of Ontario. Anyone selling travel products and services in the Province of Ontario must be a registered member of the Travel Industry Council Of Ontario (TICO) or affiliated with a registered member of TICO. There are two different types of TICO registration requirements. If you are looking to start your own travel agency, you must complete the TICO application, qualification, training and registration process to obtain a TICO registration number. If you are looking to simply sell travel, you must first complete the TICO Exam then join a TICO registered travel agency.

So here are the requirements for Travel Agents and Agencies In Ontario

A) Travel Agency must be TICO registered with a TICO number to employ or host travel agents.

B) All members of that Travel Agency, selling or giving advice for travel services, must complete the TICO Exam.

To write the TICO Exam, you must first download and read the TICO education standard manual. This manual provides you with a list of rules, guidelines and etiquette you must follow when selling travel in the province of Ontario. Once you have completed the manual, which should take no longer than one to two weeks, you then need to register for exam at one of the approved centers. You can find a list of upcoming exams on the ACTA (Association Of Canadian Travel Agents) website. The course registration fee is only $35, and there are a few courses you can take. You can either take the Travel Counselors course of if you have and can show experience in the industry you can take the travel manager/supervisor course. The combined courses will cost you $50.

To run your own TICO registered travel agency is not as easy and cost friendly as completing the exam to sell travel through an agency that is already certified. If you are thinking of starting your own TICO registered travel agency, here are the list of requirements:

-   You will need to come up with an application fee of $3000 CDN

-   You must provide your tax returns to show proof of financial stability

-   You will need to show evidence of a minimum $5000 in working capital

-   You will need to provide a $10,000 bond that TICO will hold for two years

-   You will need to open a trust account where all funds you collect for travel must be held.

-   You will need to register your travel business with Service Ontario

TICO registration numbers are non-transferable, so there are no options to buy out an already existing TICO certified travel agency. Starting a travel agency in the province of Ontario is among the hardest if not the hardest in the industry, so if you are new to the business and you are living in Ontario, the easiest thing to do is work through a host agency that is already TICO certified.

British Colombia Travel Agency Licensing Requirements

To start a travel agency in British Columbia, Canada, you are required by the Insurance Council of British Colombian to take a travel insurance exam for a fee of $225 per year. That licensing will be tied to the Agency, and each agent will be required to take the exam once, and then maintain by taking a 2-hour course each year. A 2-year lapse or non-activity will require the agency to start the process all over again.

There are some additional fees and certification requirements for sellers of travel residing in British Columbia.

-   You must register with the BC Corporate Registry

-   You must register with Consumer Protection BC

If you are a hosted agent working under an Agency located in BC, you will need to apply for a branch location of your host agency in British Columbia.

Saskatchewan Colombia Travel Agency Licensing Requirements

Similarly to British Colombia, getting licensed to sell travel in Saskatchewan Canada is insurance based. The tow exams that’s required to be written and passed are the General Insurance Council of Saskatchewan (GICS)—the Qualifying Exam (online: $109 CAD + taxes) and the Travel Bylaw Exam (online: $55 CAD + taxes). The bylaw exam is an open book exam, so you do not need to worry too much about passing it.

US Travel Agency Licensing Requirements Per State

Even though getting your travel business up and running on the national level in the United States is pretty much hassle free, some states have implemented their own registration procedures that may make things a little bit more complicated. 5 States have their own Seller of Travel laws in place. Those states are California, Florida, Washington, Iowa, and Hawaii. These laws are what is called extraterritorial laws that do not just apply to those residing in the above-mentioned states, but those outside of the states selling travel to the residents of those states.

In the State of Delaware, if you plan on opening your travel agency there, you will need an occupational license that can be obtained for the nominal fee of $25. The same procedure is said to be in Lousiana but does not seem to be enforced. When it comes to Seller Of Travel licensing requirements, Louisiana and Delaware are hardly mentioned. It is the 5 primary states mentioned above that is worth paying close attention to.

Hawaii Seller Of Travel Requirements

Hawaii Seller of travel laws states that anyone acting as an intermediary between a person looking to buy travel products and services, and anyone that wishes sell travel products and services, must first register with the Hawaii Travel Agent Licensing Program. All travel agencies, chartered tour operators residing in Hawaii is required to register at the end of each odd-numbered year. The bi-annual registration fee is $140. For those living outside of the State of Hawaii but wish to do business in Hawaii, must apply for a Certificate of Authority to sell trade in travel products and services in the state of Hawaii. The registration cost is $25 per year. For full details of these and other requirements, contact the Department of Commerce and Consumer Affairs.

California Seller Of Travel Requirements

Anyone that sells, offers consultation, or offers travel products and travel-related services in the state of California or from n office located in California, is required to be registered as a California Seller Of Travel. This is also including anyone selling or distributing travel certificates, a coupon, vouchers, passes, are all required to comply with the California State Seller Of Travel Laws. Failing to register may result in penalties, a cease and desist order and the possibility of criminal charges.

There are two registration programs for travel businesses located in California. Once is the Travel Consumer Restitution Corporation which manages the handling of customer funds and the other is the California Seller Of Travel Program (CST) that is administered and upheld by the California Attorney General. Out of state agencies are only required to register for the CST. The California seller of travel law is strictly enforced and travel agencies conducting business are required to display their CST number on any marketing material promoting of offering travel services in the State of California.

Florida Seller Of Travel Requirements

In the sate of Florida, anyone seeking to sell travel products or travel related services must register with the Department of Agriculture of Consumer Services. The Seller Of Travel registration requirements applies to all persons offering pre-arranged travel packages, tourist related services, guided tours for Land, Air and Sea.

The state requires a bond of $50,000 and extensive disclosures in order to obtain a Seller Of Travel license. Independent travel agents are not required to post the bond but must meet the other mandatory requirements.

Iowa Seller of Travel Requirements

It is a requirement in the state of Iowa that all sellers of travel register with the department of Economic Development. This applies to anyone selling or offer consultation for travel products and travel-related services.

Washington Seller Of Travel Requirements

The State of Washington has a seller of travel registration requirement done through the Department of Licensing. There are also certain financial requirements and securities that needs to be in place. A travel business can become exempt from these fees is certain business standards are met and funds and consumer funds collected for travel are being held properly.

When looking to get licensing to sell travel, the best thing to do is thoroughly research the laws in your local area. This is another place where the value of a Host Agency comes in. By contacting a host agency, they will not only be able to save you time and money of the licensing and registration process; they will be able to provide you with a lot of the information you are looking for.

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Everything You Need to Know About Becoming a Travel Agent

Here's what you should know before becoming a travel agent.

If you're someone who spends your days scanning flights , loves hotel rewards points, and in general, is a fervent traveler, you've probably wondered how to become a travel agent.

And, while it's true that living in the age of Expedia means travel agents are not as vital as they once were, people use them a lot more than you might think. Just because travelers aren't calling up an agent every time they need to book a quick flight doesn't mean they don't want to consult an expert for a big trip. This holds especially true when it comes to honeymoons or experiential trips that have a lot of moving parts — coordinating tour companies , translators, or multiple resort stays, for example. It's often easier to leave the logistics to someone else: travel agents.

You don't need a specific employment background to become a travel agent, so if you're looking for a fresh career start, that's totally OK. You have to start somewhere on your path to becoming a travel agent, and the sooner you jump in, the sooner you'll build your client base. On the other hand, if you're hoping to parlay your experience in a semi-related industry, be it marketing or hospitality, that can help because you'll have even more context for your new gig. Either way, this can be a rewarding career path (with some fun perks), so here's what you need to know to become a travel agent.

Formal Training Needed to Become a Travel Agent

While some four-year colleges, community colleges, and trade schools offer tourism certifications, it is not a requirement for those trying to become travel agents. Certificates of tourism can be very helpful, but so can previous training in marketing, hospitality, or even event planning. Ultimately, your knowledge of destinations, sales, itinerary planning, and booking software will be crucial for your career as a travel agent.

In terms of the training time you need to put in before becoming a fully-fledged travel agent, it depends. You could start your career right after high school, or you could put in one to four years to earn a certificate, associate's, or bachelor's degree in tourism. Of course, you could also change course from a related job, and morph your experience as, say, a destination wedding planner into a career as a travel agent.

Training Programs Available

You could take classes with a company like The Travel Institute to earn your certification. Not only will they teach you the basics of planning itineraries, but they'll also make sure you're learning about new cultures, world geography, and experiences you can have all over the world. They'll also help you decide what business route you want to take.

How to Become a Travel Agent: The Logistics

Becoming a travel agent will likely mean starting your own business . On the plus side, it requires relatively little overhead. If you're becoming a small business owner by opening a yoga studio, for example, you will need to rent a space, deal with permits, buy supplies, build a website, and pay yoga teachers and someone to work the front desk. However, if you're starting a travel agent business, you can operate from your living room and there aren't nearly as many upfront costs.

You will have to think about what type of business you want to become. Do you want to incorporate or become an LLC? Would you rather be a sole proprietor? Incorporating takes the most effort, and is often the most expensive. Becoming an LLC is a good happy medium because it can help protect you as a business entity without having as many associated costs. Small business owners typically become an LLC to protect their personal assets. If you get sued as an LLC, someone can come after your business holdings, but can't come after your house, car, or personal savings.

If you choose to remain a sole proprietor (which doesn't require any fees or legwork), you are essentially a freelancer or independent contractor. You can be an LLC and an independent contractor, too — they aren't mutually exclusive. If you want to be an independent contractor, it likely means you're working as part of a larger host agency, which is smart to do when you're starting out as a travel agent. Down the road, you can also own a travel agency franchise. Owning a franchise might come with more overhead costs, and that would be a reason to incorporate.

If you're an independent contractor, you should know that your taxes aren't going to be as straightforward as a full-time employee's might be. You may have to start keeping track of your business expenses, as you might be able to write them off. You also might not get things like health benefits from your employer. As you plan your new career, consider sitting down with an established travel agent to ask them some logistical questions: Where do they get their health insurance? How do they keep track of their income and expenses? Do they use an accountant to do their taxes? While meeting with the travel agent, you can discuss the pros and cons of working for a larger agency, too. If you're not sure how to get in touch with other travel agents, consider using social media, like LinkedIn or even Instagram.

What to Think About When You Become a Travel Agent

Once you've secured work as a travel agent, you'll want to think about how you can earn more money and distinguish yourself from other agents. Here are three things to consider as you start your career.

Making Commissions: If you're working for a larger travel agency as an independent contractor, how do commissions work? Make sure you have this conversation early on before accepting the position. When you're starting out, you want to make sure the commission rate you're receiving is similar to the industry standard.

Growing Your Client Base: How do you make more money as a travel agent? Clients, clients, clients. You want happy customers who will return to you every time they want to book a travel experience. You'll want to keep your clients happy by finding them great deals, curating unbelievable experiences for them, and simply being great to work with.

Establishing a Niche: This is by no means a requirement for becoming a travel agent, but as you establish your career, you may want to consider focusing on a specific niche. For example, perhaps you're someone who focuses on honeymoon travel , luxury travel, or adventure travel . Your niche can help you attract clients, and it can be anything in the travel realm, as long as there's a need for it.

Travel Agency Registrations By State

Did you know that some states require you to register as a travel agent even if you don’t reside in that particular state? It’s true! States like Florida, California, Washington, Iowa, and Hawaii all require that you register your travel agency. If not, these states can issue a cease and desist letter, impose fines and fees, or worse. Keep reading to learn more about travel agent licensing by state.

Apply for your Travel Agency Registration today!

California defines a seller of travel as any person or entity that sells, provides, furnishes, contracts for, arranges, or advertises that it can or may arrange, wholesale or retail travel.

Does this sound like your business? If so, visit our California Seller of Travel License page to learn more about the state requirements.

Florida defines a travel agency as any resident or nonresident person, firm, corporation, or business entity that offers, directly or indirectly, prearranged travel or tourist-related services for individuals or groups, through vacation certificates in exchange for a fee, commission, or other valuable consideration. Further, the FLDACS indicates that any seller of travel that has a business location in Florida OR that offers to sell travel related services in Florida for individuals or groups is required to register with the state.

Are you selling travel in or to Florida? If so, learn more about the Florida travel agency licensing process .

Hawaii defines a travel agency as any sole proprietorship, organization, trust, group, association, partnership, corporation, society, or combination of such, which for compensation or other consideration, acts or attempts to act as an intermediary between a person seeking to purchase travel services and any person seeking to sell travel services.

Do you want to sell travel in Hawaii? Getting licensed in HI can be very difficult unless you live there. It requires a bank account at a local bank. Sounds easy right? Well, most of the banks on the islands won’t let you open a business account online. You must physically go to the bank, in person, to open the bank account. However, it makes a great excuse to go on a Hawaiian vacation doesn’t it? If you think so too you can apply online today !

Not only is it home to the Hawkeyes and Wartburg College but it’s also home to Iowa Code Chapter 9D. Iowa code requires travel agencies to register with the Iowa Secretary of State if the agency conducts the solicitation of an Iowa resident. Iowa defines a travel agency as a person who represents, directly or indirectly, that the person is offering or undertaking by any means or method, to provide travel services for a fee, commission, or other valuable considerations, direct or indirect.

Want to learn more about becoming a licensed, Iowa travel agent? If so, visit our Iowa Travel Agency Licensing page to learn more.

Washington defines a seller of travel as a person, firm, or corporation that transacts business with Washington consumers for travel arrangements or accommodations.

Have you sold or are you currently selling travel to a Washington State resident? Again, you probably need a license. Check out the exclusions, cost, and other important licensing information on our Washington Seller of Travel Licensing page.

How to Start a Travel Agency

Most travel agencies earn revenue through commissions. Consumers often choose agencies because they help cut down on time needed to research various locations and book accommodations. A popular trend in the industry is online agencies, which operate mostly or exclusively online.

Learn how to start your own Travel Agency and whether it is the right fit for you.

Ready to form your LLC? Check out the Top LLC Formation Services .

Start a travel agency by following these 10 steps:

• Plan your Travel Agency
• Form your Travel Agency into a Legal Entity
• Register your Travel Agency for Taxes
• Open a Business Bank Account & Credit Card
• Set up Accounting for your Travel Agency
• Get the Necessary Permits & Licenses for your Travel Agency
• Get Travel Agency Insurance
• Define your Travel Agency Brand
• Create your Travel Agency Website
• Set up your Business Phone System

We have put together this simple guide to starting your travel agency. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out other small business ideas .

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

What will you name your business?

• What are the startup and ongoing costs?
• Who is your target market?

How much can you charge customers?

Luckily we have done a lot of this research for you.

Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Travel Agency Name Generator

If you operate a sole proprietorship , you might want to operate under a business name other than your own name. Visit our DBA guide to learn more.

When registering a business name , we recommend researching your business name by checking:

• Your state's business records
• Federal and state trademark records
• Social media platforms
• Web domain availability .

It's very important to secure your domain name before someone else does.

Want some help naming your travel agency?

Business name generator, what are the costs involved in opening a travel agency.

While some sources suggest you can pay a host agency $400 to $1,200 to get started from home, there are host agencies that don’t charge you anything to use them as your host. A host agency basically takes care of all the regulatory and back office requirements and splits the commission with you as the business owner.

To start your own independent agency may cost you between $1,000 and $10,000, depending on the markets you serve and your existing book of clients.

What are the ongoing expenses for a travel agency?

Fortunately, expenses for this type of business are low and are limited to printed brochures and typical office paperwork. If you are working through a host agency, some or all of your advertising may be paid for.

Who is the target market?

Most clients and customers are people who want to travel to another country. While domestic agencies do exist, the market is really in international travel these days. The types of clients an agency might serve depend entirely on the current market place. Client needs range from simple vacations to corporate retreats to medical tourism.

How does a travel agency make money?

Commissions are the way in which travelling agencies have traditionally made the majority of their income. Airlines and hotels would pay agencies a certain fee for utilizing their companies when booking for a client. However, with the recent proliferation of booking technology, including Google Travel, travelling apps, and company websites, these businesses are more accessible to consumers and no longer rely on travelling agencies to promote their services. For this reason, airlines and hotels have largely stopped paying travel agencies commissions. As a result, travel agencies have been forced to adapt, focusing less on simple bookings and more on navigating complex itineraries and the legalities of travelling in specific regions or countries. They have shifted to charging flat rates for bookings and hourly rates for consulting services related to planning travels and navigating legalities.

Travel agents working independently typically charge $30 for booking a flight, $50 for sleeping accommodations in a single destination, and $100/hour for research and planning advice. If a travel agent manages to procure commissions from an airline or hotel, these will typically be around 10%.

How much profit can a travel agency make?

First-year income for a home-based agency is between $30,000 and $50,000. As the business expands, revenues can rise to over $100,000, but this usually requires hiring other agents and staff support.

How can you make your business more profitable?

Travel agencies that specialize tend to make more money. For example, according to the US Bureau of Labor and Statistics (BLS), travel agencies can bring in between $30,000 and $50,000 per year. General agencies or agencies that offer only leisure travel services make the least, while corporate and medical tourism specialties tend to make the most.

There are several types of specialties in the travel industry:

• Leisure Agent
• Corporate Agent
• International Agent
• Medical Tourism Agent

A leisure agent books primarily leisure and vacation travel. For example, this might include family vacations or sabbaticals.

Corporate agents primarily book travel for corporations. Usually, corporate clients are looking for business trips or retreats. Often, the corporate client needs special attention, including complex booking schedules that include both accommodations, local travel, and entertainment

Medical tourism is a highly specific niche segment of the industry. These agents research countries for medical patients who want treatments that are either not available or are too expensive in their home country. For example, a patient may be looking for an experimental cancer treatment which is only available in a particular country.

International agents book international travel plans. These could be for corporate clients but are typically for individuals. These individuals may be looking for universities abroad, a new country to buy property in, or even a new country to move to.

Want a more guided approach? Access TRUiC's free Small Business Startup Guide - a step-by-step course for turning your business idea into reality. Get started today!

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship , partnership , limited liability company (LLC) , and corporation .

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your travel agency is sued.

Form Your LLC

Read our Guide to Form Your Own LLC

Have a Professional Service Form your LLC for You

Two such reliable services:

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

Recommended: You will need to elect a registered agent for your LLC. LLC formation packages usually include a free year of registered agent services . You can choose to hire a registered agent or act as your own.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

You can acquire your EIN through the IRS website . If you would like to learn more about EINs, read our article, What is an EIN?

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil .

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Recommended: Read our Best Banks for Small Business review to find the best national bank or credit union.

Get a business credit card

Getting a business credit card helps you:

• Separate personal and business expenses by putting your business' expenses all in one place.
• Build your company's credit history , which can be useful to raise money later on.

Recommended: Apply for an easy approval business credit card from BILL and build your business credit quickly.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

State & Local Business Licensing Requirements

Fourteen states require a Travel Sellers Registration License to sell travel. A license can be obtained through an application, which typically involves a fee and supporting documents such as membership in a professional association. Here is a list of states requiring Travel Sellers Registration Licenses.

Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses .

Certificate of Occupancy

A travel agency is usually run out of a physical location. Businesses operating out of a physical location typically require a Certificate of Occupancy (CO). A CO confirms that all building codes, zoning laws and government regulations have been met.

• It is generally the landlord’s responsibility to obtain a CO.
• Before leasing, confirm that your landlord has or can obtain a valid CO that is applicable to an travel agency business.
• After a major renovation, a new CO often needs to be issued. If your place of business will be renovated before opening, it is recommended to include language in your lease agreement stating that lease payments will not commence until a valid CO is issued.
• You will be responsible for obtaining a valid CO from a local government authority.
• Review all building codes and zoning requirements for you business’ location to ensure your travel agency business will be in compliance and able to obtain a CO.

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance . This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance . If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

FInd out what types of insurance your Travel Agency needs and how much it will cost you by reading our guide Business Insurance for Travel Agency.

STEP 8: Define your brand

Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.

If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners , we'll give you helpful tips and advice for creating the best unique logo for your business.

Recommended : Get a logo using Truic's free logo Generator no email or sign up required, or use a Premium Logo Maker .

If you already have a logo, you can also add it to a QR code with our Free QR Code Generator . Choose from 13 QR code types to create a code for your business cards and publications, or to help spread awareness for your new website.

How to promote & market a travel agency

Most new agency owners come from an established agency and have a book of clients. If you don’t start with an established agency, you must advertise your services. The best source for clients are referrals.

How to keep customers coming back

Agencies that are the most successful are specialty shops. For example, a travel agency might specialize in medical travel or corporate travel. A general agency will find it difficult to compete in today’s market.

STEP 9: Create your business website

After defining your brand and creating your logo the next step is to create a website for your business .

While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.

Here are the main reasons why you shouldn’t delay building your website:

• All legitimate businesses have websites - full stop. The size or industry of your business does not matter when it comes to getting your business online.
• Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own.
• Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don’t need to hire a web developer or designer to create a website that you can be proud of.

Recommended : Get started today using our recommended website builder or check out our review of the Best Website Builders .

Other popular website builders are: WordPress , WIX , Weebly , Squarespace , and Shopify .

STEP 10: Set up your business phone system

Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.

There are many services available to entrepreneurs who want to set up a business phone system. We’ve reviewed the top companies and rated them based on price, features, and ease of use. Check out our review of the Best Business Phone Systems 2023 to find the best phone service for your small business.

Recommended Business Phone Service: Phone.com

Phone.com is our top choice for small business phone numbers because of all the features it offers for small businesses and it's fair pricing.

Is this Business Right For You?

This business is perfect for individuals who are passionate about travel, love learning about and visiting new places, and are very detail oriented. Travel agency owners have very flexible hours but usually only after they have an established book of clients.

Want to know if you are cut out to be an entrepreneur?

Take our Entrepreneurship Quiz to find out!

Entrepreneurship Quiz

What happens during a typical day at a travel agency?

Day-to-day activities of a travel agency owner include checking faxes, phone messages, and incoming emails. You may also meet with clients and book numerous client trips during the day.

What are some skills and experiences that will help you build a successful travel agency?

There is no formal education or certification required to become a travel agent, but some states require you to have a license to operate as an agency:

Aside from that, there are voluntary certification programs that may help you enhance your knowledge of the industry and of travel in general:

Certified Travel Associate (CTA)

To get the CTA, you must have 18 months experience in the industry. You must take 8 core classes and 4 electives. You can finish your course in 3-6 months, but you have up to 12 months to finish. Cost for this course and exam is $350 and $250 for the test only. To maintain this certification, you must complete 10 CE credits each year.

Certified Travel Counsellor (CTC)

You must have 5 years experience in the industry and a CTA designation. There are 10 courses to complete, including a 3,000 word “white paper” assignment (in which a complex issue is explained concisely in a report). You must finish in 12 months, but may finish in 9 months. Cost is $550 for the course and exam or $320 for the exam only. To maintain this certification, you must complete 10 CE credits each year.

Certified Travel Industry Executive (CTIE)

This designation is only for non-consumer sales roles. You must have 5 years experience. The course consists of 100 videos, each 10 to 15 minutes in length. You must also complete a 2,000 to 3,000 word “white paper.” It takes 18 months to complete the course. Cost is $550 for the course and exam or $320 for just the test. To maintain your certification, you must commit to the annual Travel Institute membership and take 10 CE credits each year.

What is the growth potential for a travel agency?

Most small travel agencies are started as home-based businesses. Larger agencies adopt a traditional office model. Agencies can be run as a single-owner business or as a multiple-employee organization.

TRUiC's YouTube Channel

For fun informative videos about starting a business visit the TRUiC YouTube Channel or subscribe to view later.

Take the Next Step

Find a business mentor.

One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.

Having a support network in place to turn to during tough times is a major factor of success for new business owners.

Learn from other business owners

Want to learn more about starting a business from entrepreneurs themselves? Visit Startup Savant’s startup founder series to gain entrepreneurial insights, lessons, and advice from founders themselves.

Resources to Help Women in Business

There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:

If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.

How and when to build a team

A travel agency can be built with a single owner. However, time is the limiting factor. Because this business carries a low overhead, your need for employees is limited by your time in the business. When it’s time to expand, most agency owners hire another agent or support staff so they can delegate responsibilities.

If you start with a host agency and want to move away from it, then you would expand by hiring administrative personnel to handle the regulatory and back office functions.

Useful Links

Industry opportunities.

• American Society of Travel Agents
• Franchise opportunity

Real World Examples

• Independent travel agency
• Large travel agency

Further Reading

• Courses and books on how to become a travel agent
• Description of different types of travel agents
• Advice on being a travel agent

Additional Sources

• Travel Institute
• Host Agency Reviews - How Much Do Travel Agents Make? A Travel Agent Salary
• Host Agency Reviews - Do You Need a Travel Agent License?

Have a Question? Leave a Comment!

Travel Agent Licensing Requirements

Get information on Travel Agent Training programs by entering your zip code and request enrollment information.

If you love to travel, being a travel agent can be a dream job.

It’s relatively easy to get started, and most states don’t require you to be licensed or have specific training requirements.

Despite this, or perhaps because of it, knowing exactly what licenses or certifications you need to be a travel agent can be confusing.

The good news is, you’ll find everything you need to know right here.

States That Require Travel Agent Licenses

Host agency vs. independent agent, host agency, independent travel agent, international air transport association, cruise line international association, computerized corporate rate association (true), what credentials are necessary to be a travel agent, do i need training to be a travel agent, how do travel agents make money.

First, let’s take a look at the four states that require travel agent licenses.

These are known as sellers of travel states and include California , Florida , Hawaii , and Washington .

You’ll need a license for the state if you plan to operate in the state or to sell travel to residents of these states, you’ll need to be licensed.

You may have noticed that three of these states are very popular travel destinations, so it’s difficult to make it as a travel agent without being able to sell trips in these states.

Not everyone needs to be licensed, however.

If you work with a host agency , you will use their license instead of getting your own.

These states have certain requirements that you must meet.

You’ll need to submit an application and pay the registration fee.

You may also be required to use a trust account or have a surety bond.

Several other states have some type of licensing requirement, including Delaware , Illinois , and Nevada .

The requirements vary by state, but you may be required to have an occupational license or pay a licensing fee.

When becoming a travel agent , you have two main options.

You can work with a host agency, or you can be an independent travel agent.

When you join a host agency, you’ll be using the agency’s credentials.

This can make it much easier to get started as a travel agent.

You’ll also have access to the agency’s network of suppliers, marketing materials, and exclusive discounts.

The downside of this is that you’ll need to comply with their regulations and procedures.

You’ll also need to pay a portion of the commissions you earn to the host agency.

However, it’s still possible to earn more with a host agency, despite giving them a percentage of your commissions.

As an independent travel agent, you’ll be able to run your business the way you want, as long as you are following all local and federal laws and regulations.

The downside is that you’ll need to get accreditations on your own, which requires time and money.

You may also need experience to get these accreditations.

It’s possible for you to begin your career as an independent travel agent .

However, it’s often easier to begin working with a host agency.

Then, you can transition to being an independent agent once you have experience.

Credentials

You may also need some credentials to be a successful travel agent.

These include the IATA (International Air Transport Association), CLIA (Cruise Line International Association), and TRUE (Travel Retailer Universal Enumeration).

If you are working with a host agency, you will probably use their credentials.

However, if you are an independent agent, you’ll need these credentials to book flights, cruises, and accommodations.

The IATA offers the IATAN accreditation for individuals and businesses in the U.S.

To become accredited, you’ll need to show that you have an established travel business.

You’ll also need to pay the registration fee and get errors and omissions insurance.

You’ll also need at least 2 years of experience.

You can forgo this requirement if you complete an approved training program .

The IATAN allows you to purchase airline tickets directly.

Without it, you’ll need to go through a third party, which means extra time and expense.

You’ll also have access to discounts, and credibility with hotels and other travel-related businesses.

You’ll receive an IATAN number and a physical and digital I.D. card.

In addition to booking discounts, you’ll get 50% off on training programs offered by the IATA.

Plan to book cruises?

You’ll need a CLIA number provided by the Cruise Line International Association.

If you work with a host agency, you can simply use their CLIA.

If you are an independent travel agent, you’ll need to get your own.

You can become a travel agent member or TAM.

You’ll pay a fee of $399.

You’ll also need to meet any federal and local regulations to qualify.

As long as you are running your business legitimately, you are covered here.

This is a booking credential and allows you to book with cruise lines and many other businesses, including hotels.

However, it doesn’t allow you to book with airlines.

Once you become a TAM, you can get an individual agent membership or IAM.

This is not a booking credential.

Instead, it gives you access to CLIA’s wide variety of training programs and the certifications that come with them.

If your business focuses on cruises, this is the way to go.

The training for these certifications is rigorous and can involve ship inspections and even taking a cruise trip yourself, along with completing the education modules.

You’ll need to take the introductory course, State of the Industry, to maintain your IAM status.

This course is free of charge with your membership.

TRUE (Travel Retailers Universal Enumeration) is another accreditation you should consider, particularly if you are a niche travel agent.

TRUE is similar to the above accreditations.

However, you’ll have access to different travel service providers.

Your TRUE code allows you to book with amusement parks, car rental companies, cruise lines, and tour operators.

To get this credential, you’ll need at least 6 months of experience as a travel agent.

You’ll also need to provide proof that you are meeting your state’s requirements as a seller of travel, and 3 business references

Frequently Asked Questions

Some states have certain requirements to operate or sell to residents of their state.

Beyond that, there are no hard and fast requirements.

However, credentials, including the IATAN, CLIA, and TRUE are very helpful.

Travel agent training isn’t required, but it’s generally a good idea.

In addition to travel agent training programs, training in marketing, tourism, and knowledge of booking software can give you the knowledge you need.

Most of the money travel agents earn is through commissions.

For example, when you book a trip with Carnival Cruise Lines, you’ll receive a percentage of the cost of the trip as a commission.

This also applies to airlines, hotels, and many other travel-based businesses.

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Travel Agency

Back to All Business Ideas

How to Start a Travel Agency

Written by: Carolyn Young

Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on December 13, 2021 Updated on April 11, 2024

Investment range

$2,150 - $10,600

Revenue potential

$78,000 - $300,000 p.a.

Time to build

0 – 3 months

Profit potential

$62,000 - $90,000 p.a.

Industry trend

Who doesn’t love to travel? But most of us do not love the endless research, planning, and booking required, which sometimes feels like it takes more time than the vacation itself. This is precisely why the $35 billion US travel agency industry has been booming of late, and why it offers a real opportunity for the travel-minded entrepreneur.

By starting your own online travel agency, you can shoulder travelers’ burden and ease their anxiety, allowing them to enjoy their holiday while you make a healthy profit. And thanks to the post-pandemic boost, now is a great time to get in on travel.

Of course, starting a travel agency will not be a vacation – it will take diligence, patience, and strong guidance. Thankfully, you’ve come to the right place, as this step-by-step provides all the information you need to develop and launch your new travel agency and give you a head-start on your entrepreneurial journey.

Step by Step Business values real-life experience above all. Through our  Entrepreneur Spotlight Series , we interview business leaders from diverse industries, providing readers with firsthand insights.

Uncover the secrets to building a thriving travel agency with our interview with Casey Halloran of Costa Rican Vacations .

Aspiring travel entrepreneurs will find valuable insights in our interview with Augustin Ndikuriyo on building a thriving African wildlife tour business .

Looking to register your business? A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple.

Form your business immediately using ZenBusiness LLC formation service or hire one of the Best LLC Services .

Step 1: Decide if the Business Is Right for You

Pros and cons.

Every business has its pros and cons, and a travel agency is no exception. You should weigh these carefully to decide if the business is right for you.

• Flexibility – Work from anywhere, even while traveling!
• Minimal Training – Get accredited for free online
• Travel Discounts – Travel agents get top deals and reduced prices
• Demanding Work – With clients around the world you’re on call 24/7
• Fierce competition – Top sites like Expedia, travel networks, advisors, and more

Travel agency industry trends

The US travel agency industry expanded an impressive 75% in the decade leading up to 2020, which saw a massive pandemic-driven downturn. 

In 2021, many travel agents saw a surge in business as travelers unsure of all the constantly changing Covid-19 rules and restrictions turn to them for help, rather than booking their own trips. Global travel advisor InteleTravel experienced a 35% increase in business, not from the disaster year of 2020, but from 2019, which had set records.(( https://www.nytimes.com/2021/04/14/travel/summer-vacation-travel-agents.html ))

Consumers are also turning more and more to online travel agencies, with a study by Expedia showing a 25% increase in the use of online agencies in 2020 alone. Brick-and-mortar agencies seem to be a dying breed, with British travel icon Thomas Cook closing in 2019.(( https://advertising.expedia.com ))

Industry size and growth

• Industry size and past growth – Market research firm IBISWorld values the industry at nearly $48 billion in 2022.(( https://www.ibisworld.com/industry-statistics/market-size/travel-agencies-united-states/ ))  
• Growth forecast – The industry is expected to grow further as the Bureau of Labor Statistics predicted a 5% annual growth through 2030 in the employment of travel agents.(( https://www.bls.gov/ooh/sales/travel-agents.htm )) 
• Number of businesses – More than 73,000 travel agencies are operating in the US.(( https://www.ibisworld.com/industry-statistics/number-of-businesses/travel-agencies-united-states/ ))
• Number of people employed – The industry employs more than 250,000 people.(( https://www.ibisworld.com/industry-statistics/employment/travel-agencies-united-states/ ))

Trends and challenges

Trends in travel agency industry include:

• Home-stay rentals like Airbnb(( https://stepbystepbusiness.com/business-ideas/start-an-airbnb-business/ )) outperformed hotels in 27 top markets during the pandemic
• Book-now-pay-later options, such as those offered by Expedia and Booking.com, are gaining popularity
• Travel agencies undergoing digital transformation in response to the growing demand for online services

Challenges in travel agency industry include:

• Rising gas prices are impacting travel behavior
• Compliance with global Covid-19 protocols
• Keeping up with digital marketing opportunities

What kind of people work in a travel agency?

• Gender – 76% of travel agency managers in the US are female, while 24% are male. (( https://www.zippia.com/travel-agency-manager-jobs/demographics/#gender-statistics ))
• Average level of education – 64% of travel agency managers hold a bachelor’s degree.(( https://www.zippia.com/travel-agency-manager-jobs/demographics/#degree-level-types ))
• Average age – The average age of a travel agency manager is 51 years old.(( https://www.zippia.com/travel-agency-manager-jobs/demographics/#age-statistics ))

How much does it cost to start a travel agency?

The startup costs for a travel agency range from about $2,000 to $10,000, with an average of around $6,000. The high-end includes the rental of office space and a larger marketing budget, but you could easily run your online travel agency from home to cut costs.

How much can you earn from a travel agency?

The commission paid to a travel agency by travel vendors such as airlines and hotels is generally about 10%. Some travel agents also charge a nominal consultation fee for each booking, typically between $30 and $50. Those will be your two revenue streams.

The average cost of a one-week domestic vacation is $1,500 per person. The profit margin for a home-based travel agency is usually about 80%. With an office and staff, your margin will likely drop to about 30%.

In your first year or two, you could work from home and sell five two-person vacations each week. At a 10% commission, this would mean $78,000 in annual revenue. You’d have about $62,000 in profit, assuming an 80% margin.

As your brand gains recognition, sales could climb to 1,000 two-person vacations a year. At this stage, you would rent an office and hire staff, reducing your profit margin to 30%. With expected annual revenue of $300,000, you would make about $90,000.

What barriers to entry are there?

There are a few barriers to entry for a travel agency. Your biggest challenges will be:

• Competition – Big and small online firms; self-booking travelers
• Client Acquisition – Time and marketing will be required to build a reputation

Related Business Ideas

How to Start an Airbnb Business

How to Start a Bed & Breakfast

How to Start a Glamping Business

Step 2: hone your idea.

Now that you know what’s involved in starting a travel agency, it’s a good idea to hone your concept in preparation to enter a competitive market.

Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.

Why? Identify an opportunity

As a travel agency, you need to find a way to differentiate yourself from the competition. Research online travel agents and booking platforms to see their offerings and prices, while keeping an eye out for something that might be missing.

Perhaps you could specialize in travel to an under-appreciated region, such as Southeast Asia, and build a network of relevant contacts and vendors. Or you could focus on finding travelers the most incredible home-stay rentals at the best prices.

You could specialize in family vacations, corporate retreats, or honeymoons. The potential niche options in the travel industry are nearly endless.

What? Determine your products or services

Travel can involve many facets, and you can handle some or all of them, in addition to flights, lodgings, and car rentals. These might include:

• Booking tours and excursions
• Dining recommendations/reservation
• Travel insurance
• Visa and emergency services

How much should you charge for travel agency services?

Travel vendors, such as hotels, airlines, and car rental firms, pay a commission to travel agents that’s generally about 10% of the booking. For instance, if you book a $1,200 flight on Turkish Airlines for your client, Turkish Airlines will give you, the travel agent, a $120 commission.

As a result, booking flights with a travel agent sometimes costs the traveler slightly more than booking directly with the airlines or through a travel site like Expedia or Orbitz. Thus, to attract customers and boost sales travel agents rely on discounted travel packages.

For instance, a return flight from Chicago to Cancun and a 6-day stay at a four-star all-inclusive resort, plus ground transport, might cost a traveler $1,000 or more to book directly. But travel agents get significant discounts from vendors because they place volume orders, so you’d be able to offer this trip as a $599 package deal.

Even after paying your commission, the traveler still saves a chunk of money by using your services, rather than booking themselves. And keep in mind, the discounts offered by vendors are likely to increase as you become a more established agent. You may be able to negotiate commissions from tour operators and excursion companies as well.

Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify your target market

Your target market will depend on the concept you’ve chosen for your agency. If you’ve decided to specialize in family vacations, you’ll be targeting parents. You might find them on sites like Facebook or LinkedIn, rather than Instagram or TikTok.

Where? Choose your business premises

In the early stages, you may want to run your business from home to keep costs low. But as your travel agency grows, you’ll likely need to hire workers and may need to rent out an office. You can find commercial space to rent in your area on Craigslist , Crexi , and Commercial Cafe .

When choosing a commercial space, you may want to follow these rules of thumb:

• Central location accessible via public transport
• Ventilated and spacious, with good natural light
• Flexible lease that can be extended as your business grows
• Ready-to-use space with no major renovations or repairs needed

Step 3: Brainstorm a Travel Agency Name

Your business name is your business identity, so choose one that encapsulates your objectives, services, and mission in just a few words. You probably want a name that’s short and easy to remember, since much of your business, and your initial business in particular, will come from word-of-mouth referrals.

Here are some ideas for brainstorming your business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better
• The name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “travel” or “bookings”, boosts SEO
• Choose a name that allows for expansion: “Wanderlust Adventures” over “Beach Bum Vacations” or “Honeymoon Haven Agency”
• Avoid location-based names that might hinder future expansion
• Use online tools like the Step by Step business name generator . Just type in a few keywords and hit “generate” and you’ll have dozens of suggestions at your fingertips.

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

Find a Domain

Powered by GoDaddy.com

Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that set your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create a Travel Agency Business Plan

Every business needs a plan. This will function as a guidebook to take your startup through the launch process and maintain focus on your key goals. A business plan also enables potential partners and investors to better understand your company and its vision:

• Executive Summary: Present an overview of your travel agency, highlighting its focus on providing personalized travel planning and booking services for various types of travelers.
• Business Overview: Describe the services of your travel agency, including custom travel itinerary planning, booking accommodations, flights, and special experiences.
• Product and Services: Detail the range of travel packages offered, such as luxury vacations, adventure tours, and corporate travel services.
• Market Analysis: Assess the current travel market, identifying target customer segments like families, honeymooners, or business travelers.
• Competitive Analysis: Compare your agency to others, focusing on your unique offerings like specialized destinations, personalized service, or exclusive deals.
• Sales and Marketing: Outline your strategy for attracting clients, using methods like online marketing, partnerships with travel providers, or attending travel expos.
• Management Team: Highlight the experience and expertise of your team in travel planning, customer service, and business management.
• Operations Plan: Describe the process of service delivery, from client consultation to trip execution and post-travel follow-up.
• Financial Plan: Provide an overview of financial aspects, including startup costs, pricing strategy, and anticipated income.
• Appendix: Include supplementary documents such as travel industry certifications, partnership agreements, or detailed client testimonials to support your business plan.

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business!

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you are planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to travel agencies.

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state.

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your travel agency will shape your taxes, personal liability, and business registration requirements, so choose wisely.

Here are the main options:

• Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• General Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company (LLC) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
• C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
• S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC , which just needs to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization , and answer any questions you might have.

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Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number , or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN.

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

The IRS website also offers a tax-payers checklist , and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you are completing them correctly.

Step 7: Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

• Bank loans : This is the most common method, but getting approved requires a rock-solid business plan and strong credit history.
• SBA-guaranteed loans : The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan .
• Government grants : A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
• Venture capital : Offer potential investors an ownership stake in exchange for funds, keeping in mind that you would be sacrificing some control over your business.
• Friends and Family : Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
• Crowdfunding : Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
• Personal : Self-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best options, other than friends and family, for funding a travel agency. You might also try crowdfunding if you have an innovative concept.

Step 8: Apply for Travel Agency Licenses and Permits

Starting a travel agency requires obtaining a number of licenses and permits from local, state, and federal governments.

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration ( OSHA ), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package . They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money you’ll need a place to keep it, and that requires opening a bank account .

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your travel agency business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account.

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

• General liability: The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business Property: Provides coverage for your equipment and supplies.
• Equipment Breakdown Insurance: Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation: Provides compensation to employees injured on the job.
• Property: Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto: Protection for your company-owned vehicle.
• Professional liability: Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP): This is an insurance plan that acts as an all-in-one insurance policy, a combination of any of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business.

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks.

You may want to use industry-specific software to manage bookings and scheduling, such as TravelPerk , TravelCEO , and TravelOperations .

• Popular web-based accounting programs for smaller businesses include Quickbooks , Freshbooks , and Xero .
• If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial.

Develop your website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.

You can create your own website using services like WordPress, Wix, or Squarespace . This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.

Your website should showcase your offerings, customer testimonials, and detailed information about destinations.

Your clients are unlikely to find your website, however, unless you follow Search Engine Optimization ( SEO ) practices. These are steps that help pages rank higher in the results of top search engines like Google.

Here are some powerful marketing strategies for your future business:

• Leverage Social Media : Use platforms like Instagram, Facebook, and Pinterest to share stunning travel imagery, customer stories, and travel tips. Engage with your audience through regular posts, stories, and responses to comments.
• Content Marketing : Start a blog or a YouTube channel providing valuable content like travel guides, tips, destination reviews, and travel trends. This not only helps in SEO but also establishes you as an expert in the field.
• Build Partnerships : Collaborate with local businesses in your chosen travel destinations, such as hotels, tour operators, and local attractions. This can lead to exclusive deals or packages that you can offer to your clients.
• Email Marketing : Collect emails through your website and social media channels and send out regular newsletters with travel tips, special offers, and new package announcements.
• Customer Reviews and Referrals : Encourage your clients to leave reviews on platforms like TripAdvisor or Google. Word-of-mouth referrals are powerful, so consider offering incentives for referrals.
• Attend Travel Expos and Events : Participate in travel expos, seminars, and networking events to build contacts and stay updated on the latest industry trends.
• Offer Personalized Services : Tailor your services to meet individual client needs. Personal touches can make a big difference in the travel industry.
• Utilize Paid Advertising : Invest in targeted ads on social media and Google to reach potential clients. This can be particularly effective when you have special offers or new packages to promote.
• Stay Informed and Flexible : The travel industry is dynamic, so it’s important to stay informed about global travel trends, destination updates, and customer preferences.
• Sustainable and Responsible Travel : With growing awareness about environmental and cultural impacts, promoting sustainable and responsible travel practices can set your agency apart.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that set it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your travel agency meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire.

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your travel agency could be:

• Travel to Asia’s best secret destinations
• The best local insights and insider adventures
• Vacations for the whole family, from grandma to the baby!

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a travel agency, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in travel agencies for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in travel. You’ll probably generate new customers or find companies with which you could establish a partnership. Online businesses might also consider affiliate marketing as a way to build relationships with potential partners and boost business.

Step 12: Build Your Team

If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a travel agency would include:

• Travel Agents – sales and bookings
• General Manager – scheduling, accounting, staff management
• Marketing Lead – SEO strategies, social media, other marketing

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need.

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed , Glassdoor , or ZipRecruiter . Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent.

Step 13: Run a Travel Agency – Start Making Money!

Owning a travel agency means sharing the joy of travel for a living. What could be more fun? It’s also a huge, high-growth industry that you could tap into and grow a profitable business. Startup costs are low, and all you need is a simple accreditation — there’s no real training required. You just need a good concept for your agency and a great marketing plan. Having a strong online presence in this digital age is also an absolute must.

You’ve started off on the right foot by reading this guide, and now you’re ready to begin your trip to entrepreneurial success!

• Travel Agency Business FAQs

If you run your online travel agency from home, you could have profit margins of up to 80%. Costs to run your travel agency are very low, and you’re paid around a 10% commission on everything that you book. As a home-based, one-person show, you could make $60,000 per year to start, and much more once you’re established.

Consumers are turning to online travel agencies more and more, which you could easily run from home. If your business grows fast and you need to add staff, you may want to have an office.

Some consumers prefer the personal service of a smaller online agency that can offer more local, personal insights about travel destinations. The key is to differentiate yourself in some way. You could specialize in certain locations, a specific type of lodgings, such as cabins, or in a type of vacation such as corporate retreats.

Travel agencies engage in activities such as providing travel advice, booking travel arrangements, managing logistics, and offering specialized services tailored to clients’ needs.

Effective marketing strategies for a travel agency include building a strong online presence, targeted advertising, content marketing, collaborations and partnerships, and leveraging customer referrals and reviews.

Running a travel agency can have challenges due to intense competition, evolving industry dynamics, regulatory considerations, seasonal fluctuations, and the need for customer satisfaction and crisis management. 

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• Decide if the Business Is Right for You
• Hone Your Idea
• Brainstorm a Travel Agency Name
• Create a Travel Agency Business Plan
• Register Your Business
• Register for Taxes
• Fund your Business
• Apply for Travel Agency Licenses and Permits
• Open a Business Bank Account
• Get Business Insurance
• Prepare to Launch
• Build Your Team
• Run a Travel Agency - Start Making Money!

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How to Become a Travel Agent in North Carolina

Get information on Travel Agent Training programs by entering your zip code and request enrollment information.

It is easy to start your own business as a travel agent in North Carolina, a popular and growing business that begins with a few basic steps that will be outlined here.

The good news is it does not take a lot of documentation to get set up as a travel agent in the state, but there are a few things you need to know.

Travel agents go beyond the basic online services that many people use to book their travel.

They are expert advisors to travelers about destinations, travel specials, visitor restrictions, and trip planning.

After consulting with clients, a travel agent can create customized travel itineraries.

They handle all of the travelers’ details and can help solve problems that may arise, such as booking problems at hotels, resorts, and airlines.

Travel agents can also negotiate discount rates.

They can book accommodation at times when a destination may show no availability.

For international travel, a travel agent can handle obtaining visas for clients, arrange any necessary health or vaccination screenings, and ensure there are no relevant travel restrictions or advisories that may affect the trip.

Article Table of Contents

• 1 Travel Agent Licensing Requirements in North Carolina
• 2 Travel Agent Training in North Carolina
• 3.1 Regional Salary in North Carolina
• 4.1 What is the cost of licensing and business permits to become a travel agent in North Carolina?
• 4.2 Do I have to submit reports or other information regularly to a state or local agency as a travel agent?
• 4.3 What special training do I need to work as a travel agent in North Carolina?

Travel Agent Licensing Requirements in North Carolina

In North Carolina, there are no specific licensing requirements to operate as a travel agent.

All that is needed in the state is a basic business license if the operation is set up as a limited liability company, according to the North Carolina Department of State.

There may be local business license requirements, too, in North Carolina, depending on where you operate the business.

Check local business requirements for that information.

There are more than 1,000 travel agents employed in North Carolina, according to the U.S. Bureau of Labor Statistics.

Travel Agent Training in North Carolina

While there are no training courses required to become a travel agent in North Carolina, there are programs available to provide guidance for novices and voluntary certification by professional groups for agents who want more credentials.

Travel agents often learn on the job from a more experienced agent.

But some technical and community colleges offer courses and programs that provide training.

Students learn basic business principles, travel planning, customer service, airline pricing and ticketing systems, and itinerary planning, in addition to training about specific travel destinations.

• Fayetteville Technical Community College : Travel Agent Training course provides the basics needed to work in the travel and tourism industry as an agent. The course focuses on information needed for domestic and international travel destinations, and marketing and customer service training. The online course is a self-paced program that can be completed within a six-month period. It costs $1,995.
• University of North Carolina Wilmington : The travel agent online training course offered here covers the basics needed to work in travel and tourism. The self-paced course focuses on information needed for domestic and international travel destinations, and marketing and customer service training. The course can be completed any time within a six-month period. It costs $1,995.
• Wake Technical Community College : This 12-week course is taught online by an American Society of Travel Advisors instructor. This course offers the basics for serving as a travel agent in North Carolina. The subjects covered include working with clients, cruises, group travel, niche travel, and business training, in addition to courses about traveling to Mexico, Europe, and South America. The course costs $1,995.

Average Travel Agent Salary in North Carolina

The average salary for a travel agent in North Carolina is $36,904, but annual pay can range between $33,624 and $42,977, according to data from Salary.com’s website.

Salary ranges vary widely depending on the city and many other important factors, including education, certifications, additional skills, the number of years worked in the profession.

Regional Salary in North Carolina

Frequently asked questions, what is the cost of licensing and business permits to become a travel agent in north carolina.

Because there is no requirement to obtain a license in North Carolina as a travel agent, the cost of licensing and permits is limited.

There may be associated expenses if you have an interest in creating your own business to work as a travel agent, but those are more general business costs not tied to working as a travel agent.

Do I have to submit reports or other information regularly to a state or local agency as a travel agent?

There are no requirements that travel agents must submit quarterly or annual reports about their work to any government agency in North Carolina.

However, if a business is established to provide the services of a travel agent, there may be requirements to submit updated annual corporate reports, according to the North Carolina Secretary of State’s Office.

What special training do I need to work as a travel agent in North Carolina?

You can work as a travel agent in North Carolina with no specific training required.

However, you may want to take special courses to learn about the business.

Read the full guide: How to Become a Travel Agent

Travel Agent License by State

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Business license definition

Types of business licenses, how much is a business license, how to get a business license in 4 steps, how long does it take to get a business license, how to get a business license in every state.

When you're starting a business, one of the crucial steps in your process will be securing any and all business licenses you need to operate your business legally.

Business licenses and permits are intended to keep consumers safe and operations transparent. The U.S. Small Business Administration regulations include that virtually every small business needs some sort of license or permit from state officials, but requirements and fees vary based on the type of business, where it’s located and which government regulations apply.

To help you sort through the process, we've compiled this small-business license guide. We'll discuss types of business licenses, potential costs and explain how to get a business license, depending on the state in which you do business.

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First, what is a business license? The reason it can be so difficult to determine how to obtain a business license is that the term "business license" is wide-ranging and can refer to many different types of licenses and permits.

A business license is a document issued by a government agency that grants you permission to operate your business in the geographic region that that agency governs.

Therefore, the term business license may refer to something like a local business operating license, which allows you to conduct business within your town, or it could also refer to a seller's license, which gives you permission to sell a particular product in your area.

The specific type of small-business license you need will ultimately depend on your industry and business location, meaning that you may need to obtain separate business licenses at the state, city and county levels.

Additionally, if a board, commission or association regulates your industry, you may be required to present a certification from those bodies before receiving business licensing in a state or county. You’ll need to be sure to check if your local government has specific license policies related to your business.

On top of that list, you’ll need to get a federal license if a federal agency regulates your business activities. If you run a business in one of the following industries, the SBA says you’ll need to apply for a federal business license or permit:

Agriculture.

Alcoholic beverages.

Firearms, ammunition and explosives.

Fish and wildlife.

Commercial fisheries.

Maritime transportation.

Mining and drilling.

Nuclear energy.

Radio and television broadcasting.

Transportation and logistics.

Just as the specific licenses you'll need vary by industry and state, your business license cost will also vary based on these factors. Generally, however, you can expect to pay a processing or filing fee for your license, as well as the cost of the license itself. Licenses may cost anywhere from $50 to hundreds of dollars depending on your business and location. Additionally, if the license you need has an expiration date, you'll have to pay any associated costs to renew when your license expires.

As an example, to apply for business licensing in Alaska, it will cost $50 for your one- or two-year license, and once that license expires, you'll have to pay the same $50 fee to renew. On the other hand, if you're getting a business license to start a child care center in New Jersey, you'll need to pay a three-year licensing fee that ranges from $110 to $250 depending on the size of your center; after your license expires, you'll need to pay the same fee to renew.

Because of the variable nature of business license costs and licensing requirements overall, the SBA advises that you check with the appropriate issuing agency to know exactly what you’ll need to do and pay to obtain your license.

Here are a few general steps you can expect to follow to obtain a business license:

Research the regulations in your area (state, city and county) to determine the type or types of business licenses you'll need. If you're unsure of what government regulations apply to your business, contact your state's governing agency for assistance.

Submit your application with any necessary business license requirements (like your entity paperwork). You may need to pay a processing or filing fee to submit your application.

Depending on your state, you may have to wait to find out if your application has been approved. Once you're approved, you'll receive your business license, which will allow you to legally operate in your area.

If your license expires, you'll have to renew it according to the regulations in your state, city or county.

It could take anywhere from a few days to a few weeks to get your business license. This will depend on a number of factors, namely your state and the specific license you need.

For example, if you're applying for a local operating license for your retail store, it's very likely that this process will be faster than applying for a federal or state liquor license .

While it's difficult to estimate how long it'll take to get a business license, there are a few things you can do to expedite the process. To start, if your state or city offers online applications, apply for your business license online. This will be faster than mailing an application or filling one out in person. Plus, an online application will be easier for the respective government agency to review.

Next, you can ensure that you follow all directions completely and correctly and submit any and all required documents with your application. If there are errors on your application, it will take much longer to process.

We've combed through all of the state resources out there so you'll be able to easily access the resources you need to determine how to get a business license in your state. As you'll see, each state is unique; some states only have local business license requirements, whereas others have industry and statewide requirements as well.

How to get an Alabama business license

If your business is based out of Alabama, check out AtlasAlabama , a statewide website established to help start and expand small businesses in the state. You can find information here about which businesses need occupational licenses, how to obtain a business tax number and many other useful resources.

How to get an Alaska business license

Alaskan small-business owners should consult the Alaska Department of Commerce , which offers a clear breakdown of what you need to license your business. You should also check its list for businesses that don’t require a license in Alaska. You can easily file for a new license, or renew, online.

How to get an Arizona business license

Pretty much everything you need to know about how to get a business license in Arizona can be found on the Arizona Department of Revenue's website. This website is designed to help Arizona businesses comply with the state’s basic tax and licensing requirements. Check out this agency's licensing guide , which shows you where to go to find a state transaction privilege tax; regulatory, professional and special licensing or permits; and local business and occupational licenses or permits.

How to get an Arkansas business license

Use the Arkansas.gov Owning a Business website for a comprehensive guide on all things related to starting and legally running a business in the state, including getting a license. The site also includes resources on registering a new business, how to apply for an employer identification number, filing for workers' compensation insurance and more.

How to get a California business license

If you need to know how to get a business license in California, use CalGold as your go-to resource. Simply select your city or county, enter your business type and follow the instructions from there.

How to get a Colorado business license

The Colorado Business Express is the Centennial State's online portal small-business owners should use to apply for a business license either online or manually.

How to get a Connecticut business license

Small-business owners in Connecticut should consult the state’s New Business Checklist for a step-by-step guide on the appropriate way to start and register their businesses. Skip ahead to step 5 if you just need to know whether your business needs special licenses and permits, and where to get a license in the state.

How to get a Delaware business license

To register or renew a Delaware business license, go to the state’s One Stop business registration website. Through this online portal, a questionnaire will lead you to the appropriate forms to obtain the licensing you need.

How to get a D.C. business license

All businesses in Washington, D.C., are required to have a license. Use the wizard tools on the D.C. Business Center online guide to determine exactly which license you need to start your business. Read their Basic Business License guide to find out how to apply for a business license online, in person or through the mail.

How to get a Florida business license

You can get information on how to get a business license in Florida on the state’s Department of Business and Professional Regulation website, which features a dedicated online small-business license portal. Simply click on your business type from the available list and follow the instructions from there.

How to get a Georgia b usiness license

Many businesses in Georgia can now apply for business licenses online, so check the state’s online licensure applications list to find out whether your business makes the cut. Then, you can submit an application for a new license in Georgia through the online portal. Take a look at Georgia’s business licenses webpage for a simple overview of your business’s licensing needs.

How to get a Hawaii b usiness license

Hawaii’s Business Express portal automates the process of registering your business online. All you need is your eHawaii.gov account information, then follow the questions to figure out which licenses and permits you need, as well as how to apply for any business licensing that you end up needing.

How to get an Idaho b usiness license

Take a look at Idaho.gov’s licensing, permitting and regulations webpage to search for regulation information and apply for licenses online. Note that Idaho doesn’t have a state license (all business licenses are issued locally), so only the businesses that need special licensing can apply through the online portal. You can also search Idaho.gov’s online services by your business type for any related information on how to get a business license through your local institutions.

How to get an Illinois b usiness license

If you’re just about to start your new business in Illinois, take a look at the Illinois Department of Commerce’s First Stop Business Info Center to access resources for writing a business plan, setting up your legal structure, registering your business and more. Then, find out how to get a license through its registration, license and permit applications resources.

How to get an Indiana business license

Indiana doesn’t have a single, comprehensive business license, but every business that operates in Indiana will need to fulfill regulatory requirements, potentially at several state levels. Seems complicated, but the state’s Business Owner Guide is a great online business licensing resource to sort out the information you need, according to your industry.

How to get an Iowa business license

Iowa doesn’t require general business licensing. Rather, licensing requirements are based on the nature of your business or profession. You can search the Iowa Business License Information Center database to determine which licenses your specific business needs.

How to get a Kansas business license

To register a business in Kansas, use this guide to decide how you’d like to legally structure your business. Then you can visit the Kansas Business Center for information on how to obtain a license in your state.

How to get a Kentucky business license

Kentucky doesn’t have a single, statewide license for all businesses, but certain businesses will need special permits or licenses. Check out the Kentucky One Stop Business Portal for information on starting and running your business, and head to their page on the occupational licenses and permits that apply to your business.

How to get a Louisiana business license

Visit Louisiana’s Business Services page to start the process of obtaining your required licenses for the state. You’ll need to create a GeauxBiz account to access their startup services, which includes a business license checklist.

How to get a Maine business license

All business licenses in Maine are operated at the town or city level, so you’ll need to contact your local town office directly to find out what your business needs. Visit the Maine.gov Local Government portal for the contact information you'll need.

How to get a Maryland business license

The Maryland Department of Commerce has compiled an online database so that you can perform a statewide and county-level Maryland business license search and determine what license you might need to operate your business. You can also consult the Department of Labor, Licensing, and Regulation’s directory of services to contact the licensing agent that applies to your industry.

How to get a Massachusetts business license

Take a look at Massachusetts state’s Starting a New Business guide for advice, resources and information about legal requirements you need to get your business off the ground. Jump to its Business Licenses and Permits page to find out if your business or profession needs special business licensing or permits to legally operate in the state.

How to get a Michigan business license

Not every business in Michigan is required to be licensed by the state. Business licenses are required for certain vocations or occupations that may be conducted within a business, and local governments may also require business licenses. Find out if your new venture could require a state license or permit through the online business licensing search . Also, check out the state’s guidebook and step-by-step outline for how to start a business in Michigan.

How to get a Minnesota business license

Some types of businesses may operate in Minnesota without any special licenses, but others require certain licensing and permits. You can use the Minnesota online business license tool to search for required licenses by topic, agency or index.

How to get a Mississippi business license

Mississippi doesn’t license all businesses at a state level. Depending on your business activities, though, you might need state and local permits to legally run your business. Take a look at the Mississippi secretary of state's website for more information.

How to get a Missouri business license

The Missouri Business Portal lets you register your business with the secretary of state and Department of Revenue simultaneously. This resource also provides a list of occupations that require licensing. It suggests you contact your county or city government to learn more about local licensing requirements.

How to get a Montana business license

The state of Montana provides professional licensing and licenses for industries that specifically require state regulations. All other business licensing in Montana is handled at a local level. Check out this list of Montana state licenses by industry . For more information, consult Montana’s Small Business Development Center Network business licensing page.

How to get a Nebraska business license

The Nebraska Licensing Division oversees collection agencies, debt management agencies, credit services organizations, private detectives, truth and deception examiners, athlete agents and non-recourse civil litigation funding companies. If your business encompasses any of these activities, follow the links on its website to get your required business licensing. Whether or not your business is any of the above, check with your local government to see if you’ll need additional licenses.

How to get a Nevada business license

If you’re a small-business owner in Nevada, check out the SilverFlume Business Portal . This statewide business portal has a step-by-step online guide to starting your business in Nevada and how to secure the appropriate business licensing in the state.

How to get a New Hampshire business license

You’ll need to contact your local city or town clerk’s office to find out about local requirements to run a business in New Hampshire. For information on how to get a business license or permit, visit the New Hampshire Department of Revenue Administration licensing FAQ webpage.

How to get a New Jersey business license

The New Jersey Business Action Center is the online NJ business license resource that makes it easy for you to find the licenses and permits you need. You can also browse through the New Jersey License and Certification Guide , which alphabetically lists all businesses and occupations that require permits, certifications or licensing, plus the government agency you’ll need to contact to obtain that requirement.

How to get a New Mexico business license

Business licensing requirements in New Mexico vary according to your county or municipality, so it’s best to contact your local city or town clerk’s office directly. If your business requires a special license or permit from the state, you can apply for a business license online . Take a look at the New Mexico Economic Development business development page for more information on starting your business in this state.

How to get a New York business license

Looking to answer the question: "How do I get a business license in New York?" Start with the Business Wizard to determine which New York State licenses are necessary to get your business up and running, and how to obtain a business license that you need.

How to get a North Carolina business license

The State of North Carolina doesn’t issue general business licenses, but your business might be subject to state, city, county or federal requirements. You also may need a special license if your business requires occupational licenses. The state also provides business counselors whom you can call if you’d like personalized advice on how to get a business license.

How to get a North Dakota business license

If you’re running a North Dakota-based small business, you can find information on the small-business licenses you might need on the North Dakota New Business Registration’s licensing information webpage.

How to get an Ohio business license

Step one in the Ohio Small Business Development Center ’s guide to starting a business informs you of the legal structure variations involved in business licensing. All businesses are also required to register with the Ohio secretary of state.

How to get an Oklahoma business license

Oklahoma doesn’t require general business licensing, but there are a few industries that need special licensing to operate in this state. Check out the Oklahoma Department of Commerce Business Licensing and Operating Requirements page for a list of the types of licenses you’ll need by industry, as well as other employer requirements (like workers’ compensation insurance).

How to get an Oregon business license

Consult the Oregon secretary of state’s webpage on starting a business in Oregon for a state-specific game plan on opening up shop. Skip to step six if you’re mostly interested in learning about the licenses, permits or certifications you need in Oregon; it’ll direct you to Business Xpress License Directory , an online portal that lets you search for information on how to get a business license in the state.

How to get a Pennsylvania business license

The Bureau of Professional and Occupational Affairs in Pennsylvania offers an online business licenses portal called the Pennsylvania Licensing System , or PALS, where you can easily apply for a business license, renew an existing license or take any other licensing action you may need to operate your business in Pennsylvania.

How to get a Rhode Island business license

You can find forms for business licenses in Rhode Island through the Rhode Island Department of Business Regulation webpage. Here, you can look up types of licenses according to industry, register for a new license online or renew an existing license online. Even before that, though, take a look at the start or qualify to do business in Rhode Island page to make sure you’re following all the necessary steps to legally opening up a business in this state.

How to get a South Carolina business license

There’s no single South Carolina state license requirement, but almost every city and town requires its own types of business licenses. Go to the state’s official webpage on licenses, permits and registration in South Carolina to find the link that’ll instruct you how to get a license according to your business type and needs. You can also head over to South Carolina Business One Stop to access portals on starting, running, expanding and doing business in the state. (You can find licensing information inside the “starting” portal.)

How to get a South Dakota business license

Take a look at South Dakota's Start Your Business webpage, where you’ll find links to various guides and checklists encompassing all the information you need to know to operate your business. It also provides a PDF on licensing and registering your business in South Dakota, which lists licensing requirements for common departments. Certain departments may require additional licenses, however, so it’s best to inquire directly with your relevant agency.

How to get a Tennessee business license

According to the Tennessee Department of Revenue, if you’re subject to the Tennessee business tax, you’ll need to obtain a business license from your county clerk. And if you operate an in-state business that generates more than $3,000 in sales, you must obtain either a “minimal activity license” or a “standard business license” from your county or municipal clerk. There are a few caveats within those requirements, too, so be sure to carefully read the Tennessee business registration and licensing webpage.

How to get a Texas business license

The Texas secretary of state’s website directs users to the SBA’s page on applying for licenses and permits in Texas .

How to get a Utah business license

To get your business license in Utah, visit the state's OneStop Online Business Registration System . It explains that you'll need to head to your local municipality to apply for a license.

How to get a Vermont business license

Visit the Vermont professional regulations page, where you can consult a list of professions that require Vermont licenses and access the state’s online licensing portal.

How to get a Virginia business license

Learn how to apply for a Virginia business license on this Virginia.gov page .

How to get a Washington business license

You can consult the State of Washington online business licensing service to access several resources on searching and applying for a Washington state business license. You can also receive a customized licensing solution through the Washington business licensing wizard .

How to get a West Virginia business license

If you’re a West Virginia small-business owner, your best bet is to visit the state's online business portal to search for a WV business license according to category or word search. Then, you’ll be directed to the specific agencies that administer the licenses, permits, registrations and other authorizations you’ll need to operate your business. (You’ll need to register for an account to access the portal.)

How to get a Wisconsin business license

Visit the wisconsin.gov business portal to access pretty much every resource you’ll need to properly run and expand your business in this state. But for licensing concerns specifically, scroll down to the Licenses and Permits link under the page’s Government Resources section. From there, you’ll be directed to the Wisconsin Department of Agriculture, Trade and Consumer Protection license list , which lists industries alphabetically and provides the phone number you can contact to apply for or renew your license.

How to get a Wyoming business license

The Wyoming business permitting and licensing online guide tells you everything you need to know about permit requirements. You can also contact the Wyoming Business Outreach Coordinator directly if you have more questions.

Other resources to getting a business license in your state

Despite each state's individual requirements, you should always feel welcome to consult the SBA for assistance. Visit the SBA small-business resources page and enter your zip code to find a detailed list of requirements you need to start a small business in your area. You can also search for statewide requirements through the SBA’s online portal.

Overall, no two states issue business license requirements in exactly the same way. After you complete an online search — whether that’s through the SBA or the resources we’ve listed for your state — contact your town clerk’s office directly to make sure all your bases are covered.

This article originally appeared on JustBusiness, a subsidiary of NerdWallet.

On a similar note...

Starting a Travel Business: How to Become a Travel Agent

Briana Morgaine

17 min. read

Updated March 18, 2024

Free Download:  Sample Travel Agency Business Plan Templates

If you’re someone who loves travel, meticulous planning, and helping others have great experiences, consider starting a travel business and becoming a travel agent.

After a sharp drop in international and domestic travel during the COVID-19 pandemic, air travel demand has returned to pre-pandemic levels.

Pent-up demand from families who put off trips is driving tourism activity even as fewer travelers cite the pandemic as a major concern. Those tourists are forecast to drive solid long-term growth in the worldwide travel and tourism industry – and plenty of business opportunities for those who can make vacation planning less stressful.

Becoming a travel agent can be fairly inexpensive, as business ventures go, and you can often get away with limited staff and little upfront cost.

That being said, success largely depends on finding the right niche in a fiercely competitive market, given the rise in online direct-to-consumer travel booking sites. So, if you want to be successful, you’ll want to focus a lot of your effort on your market research , branding, and marketing. You’ll need to know who needs your services—your target market—and what they’ll be willing to pay. 

If this sounds right up your alley, keep reading. I’ve interviewed several founders of successful travel agencies for their advice on everything you need to get started, and I’ve also included plenty of links and resources to help you work through the process of starting your own travel business.

• 1. Create a plan for your travel business

Make no mistake: No matter what industry you’re in, a business plan is essential. You may not need a formal business plan if you’re not seeking a loan or investment funding for your business, but don’t skip it. Write a one-page business plan instead.

You can do it in less than an hour. Writing a business plan is scientifically proven to help you grow faster , so don’t skip this step. 

What kind of travel agent are you interested in becoming? If you’re planning to be a home-based travel agent, you’ll want to look into finding a host travel agency where you’ll essentially be an independent contractor. If this is the type of travel business you’d like to start, the business planning process should be fairly straightforward.

However, if you’re looking into starting your own travel business from the ground up, you’ll be looking at a much more lengthy planning process—but you’ll also have more flexibility to build a business that’s all your own.

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A case for starting early

“In starting ADDISON Yacht Charters , we began market analysis and business planning efforts a full year before we launched the company in November 2013,” says owner Scott Bessette.

“During that period, we attended industry events such as regional yacht shows in the Virgin Islands, Antigua, Florida, and Monaco to acquire as full an understanding as possible with regards to what products and services were being delivered to the market, who was delivering those products and services, and who was purchasing those products and services,” he explains.

Starting the planning process early helped Scott hone in on his vision for his business. “In this manner, we determined what our market niche could be, and established whether or not we could compete in the existing market, and what it would take to succeed,” he says.

Scott was able to get a clear sense of where he wanted to take it, and how to tailor his business to best suit the market needs.

What kind of travel agent business plan will you need?

The kind of travel agency business plan you’ll need will vary depending on what kind of funding you’re looking for.

Are you hoping to eventually run a large travel agency, and interested in seeking a loan, or maybe investment from angel investors? You’ll want a formal business plan for a travel agency that contains all the necessary information on your business. Are you more interested in becoming a travel agent using your own savings, without seeking outside investment or loans? A more lightweight one-page plan might be a perfect fit for your business.

Even if you do intend to pitch your business idea to lenders and investors, you can start with a Lean Plan, and flesh out the rest of the info later on.

Whatever your specific reason for writing a business plan for your travel business, the most important thing is that you write one, period. The travel industry is fragmented , and having a clearly defined niche and a plan will help you stand out. Writing a business plan for your travel agency will help you narrow in on what your goals are, and establish a clear, focused vision going forward.

We’ve covered nearly every aspect of writing a business plan here on Bplans, so be sure to check out the links below when you’re ready to get started. We also have several travel industry business sample plans, which will give you an idea of what your business plan should look like.

Resources to help you create a business plan for a travel agency:

• How to Write a Business Plan
• Travel Agency Sample Business Plan
• 2. Conduct market research and find your niche

What kind of travel agency do you plan on starting? Moreover, what kind of travel business does the industry or your local community actually need?

“When you launch a travel business, the most important thing to do is to provide a valuable service,” says Jacquie Whitt, owner of Adios Adventure Travel .

This means doing some market research to find out what kind of travel agent or travel business the market really needs. Is there a niche you can fill? Maybe there’s an opening in the travel market to provide destination adventure honeymoons for young couples who would rather go backpacking than relax on the beach. Think about the people in your local community too—do they need something specific?

“In a saturated luxury travel market, Urbane Nomads had to distinguish itself from more seasoned players from the get-go,” says founder Hajar Ali. “The dual elements of adventure and luxury was an unexplored niche which we filled very well.”

Hajar says of Urbane Nomads: “It was conceived as the kind of travel company that would remain relevant in the age where most travel-related bookings are made online. We specialize in the sort of experiences that can’t be booked online—adventurous trips to non-mainstream destinations, lodges that can’t be booked online—or indeed, by non-travel professionals—and special experiences and access to personalities that would have been impossible without the personal connections.”

What niche are you filling? Start by researching the travel market in general. Find out who the major players are that you’ll be competing against, determine who your ideal customer is, and define what they want.

Resources to help you do market research and determine your niche:

• Practical Market Research Resources for Entrepreneurs
• How to Do Market Research
• How to Create a Unique Value Proposition
• How a Buyer (or User) Persona Can Improve Your Business
• What Is Target Marketing?
• 3. Develop a brand as a travel agent

Once you’ve determined what the market looks like and what specific niche you’ll be filling, it’s important to get down to the nitty-gritty of creating a strong brand image .

As the travel industry is so competitive, having a well-developed brand will help your business stand out. How do you want your customers to feel when they visit your website, view your advertising, or use your services?

Lorne Blyth, Founder and Director of Flavours Holidays, had a very specific vision for her brand. “[At Flavours Holidays], we have been specializing in cooking, Pilates, painting, photography, and language holidays in Italy since 1998,” she says. Lorne’s vision was to create a brand that “gave guests a true taste of Italy.”

“I use that as part of my branding, as we would like to perceive ourselves as being experts on all things Italy,” says Lorne. “That is why our tagline is ‘Passionate, Inspiring, Authentic.’”

Why should customers use your services, rather than just book a trip themselves? What experience can you provide that others can’t?

Do you offer unique services, such as partnerships with the locals of your travel destinations, that customers wouldn’t have access to otherwise? Is your selling point the ease of having someone else plan your trip for you, down to the last detail? Are you all about personal touches and a great customer service experience?

This is the first step to determining your travel business’s brand strategy— determining who you are. We’ve gone in-depth on how to build a memorable brand for your business, so check out the articles below for more information on branding.

Resources to help you brand your travel business:

• The Definitive Guide to Building a Brand
• Your Brand’s Tone of Voice: Why It Matters and How to Craft It
• 4. Deal with the legal side

A travel business is, for the most part, a fairly simple one to set up. Unlike starting a brewery or starting a dispensary , there isn’t a lot of legal red tape when it comes to becoming a travel agent and starting a travel business. 

Determining if you’ll require licensing

In most locations, you won’t need any specific licenses or certifications, but licensing requirements will vary by state and country.

For the U.S. in general, there is no specific license needed to start a travel business; however, state laws vary . In California, Washington, Hawaii, Iowa, and Florida, you’ll need a Seller of Travel license. Canada also has licensing requirements that vary by location, and in the U.K., you’ll need an Air Travel Organiser’s License .

Choosing the structure of your travel business

Beyond specific licenses, there are general licenses that you’ll need before you start any type of business.

First off, choose your business structure . Scott Bessette, owner of ADDISON Yacht Charters, started his travel agency as an LLC , which he says suited his business needs. “Before we considered starting our agency, we determined that a Limited Liability Company was the appropriate structure for what we were trying to achieve.”

Why was an LLC the best choice? “We had no intention of going public, or having to secure formal investment,” he says. “Further, we had a very simple organization structure, so ease of governance and compliance drove our choice of corporate structure.”

However, the business structure you choose will depend largely on your plans for your business, and how you intend to fund it. If for example, you plan to seek outside investment, you may want to look into starting your business as a corporation .

Naming your business and applying for a Federal Tax ID number

You’ll also want to formally name your business (even if it’s just you, becoming a travel agent!), which involves filing a DBA , or a “doing business as.” You’ll also need to apply for a Federal Tax ID number , otherwise known as a Federal Employer Identification Number (EIN or FEIN). We’ve covered these topics in plenty of detail, so be sure to check out the links.

Scott also adds that setting up the legal end of things was fairly simple.

“Establishing the legal and licensing requirements was one of the easiest aspects of starting the business,” he explains. “All said, conception and gestation of ADDISON Yacht Charters was long-term, but she was born after only two days of hard labor.”

Resources to help you determine the legal structure and name for your business, as well as other legal considerations:

• The Complete Guide to Choosing Your Business Structure
• The Complete Guide to Registering Your Business Name
• Resources and Tools to Help You Name Your Business
• How to Apply for a Federal Tax ID Number
• How and Where to Obtain Business Licenses and Permits
• Keep Your Startup Safe from Legal Trouble
• 5. Determine your funding strategy

How do you plan to fund your new travel business?

Luckily, your starting costs should be fairly low: You won’t have expensive equipment to buy, and you probably won’t need extensive space in the beginning. If you’re hoping to become a travel agent working out of your own home, you may not even need office space at all. 

However, be sure to have a plan in place for how you will obtain funding. You’ll need funds for marketing materials at the very least; both online, such as your business website , and offline, such as flyers, posters, business cards, and more . Your initial funding budget will also likely go toward any branding or advertising, and you may eventually also decide to rent office space and hire employees, which is a fairly large expense.

Unlike many businesses, there isn’t one tried-and-true path for funding a travel business. From personal funds to venture capital funding, it’s all a possibility.

Many travel agencies are self-funded since they have low initial overhead and can be started fairly easily (though face stiff competition to stand out). “I didn’t get any funding at all, apart from $2,000 borrowed from my dad for the website,” says Brady Hedlund, founder of Life Before Work.

Looking into loans and a line of credit is also a good first move. “We developed banking and relationships with firm lines of credit and support, to ensure that as we started to deliver, funds were available to spend before the client paid the bill,” says Scott of ADDISON Yacht Charters. “ Cash flow is critical to the appearance of a business’s success.”

However, when it comes to financing your travel business, angel investment, and even venture capital funding isn’t completely out of the question. “We formed an LLC to start Project Expedition and closed a $300k seed round in January 2015 to help drive the development of our MVP (minimum viable product),” explains founder Jeremy Clement.

Don Halbert, owner of Costa Rica Vacations , also funded his travel agency through venture capital. “Funding for this venture came from a venture capital company which would later become one of our primary partners,” he explains.

Resources to help you with the funding process:

• How to Get Your Business Funded
• 35 Great Ways to Fund A Small Business
• What Do Venture Capital Firms Want?
• 10 Tips for Finding Venture Funding
• 6. Choose a location and hire employees

Next, you’ll want to make a plan for the logistics of opening your travel business to the public. If you’re starting a travel agency and require office space, this section will likely be more relevant than if you plan to work as a travel agent out of your home. 

How many employees will you need to hire? You may not need any to start, until you decide to expand your operations.

You might also want to look into remote employees , suggests Mike Liverton, CEO and founder of Leavetown Vacations . “While many company employees live and work as home-based ‘Destination Experts,’ our main headquarters are downtown Vancouver,” he says.

Additionally, you’ll want to determine your business location . While foot traffic will likely not be a primary motivator in choosing a business location, you’ll want to pick somewhere that accommodates your space needs as well as reflects your desired brand image.

However, as with employees, you’ll find that a physical location isn’t always an absolute necessity. “We have never booked a client from our hometown,” says Scott.

“We’re a 24/7 business, that cannot be limited to when I am in the office, or more importantly, marginalized when I am not,” he explains. “The ADDISON staff has families, conflicts, and important events in their lives. We constructed and positioned our business to be virtual in nature; to be operational anywhere, anytime. I’ve conducted business from Europe, the Caribbean, from multiple states, and during my children’s sporting events.”

“We didn’t choose our business location, we chose a virtual location,” he adds. Whether or not you choose to go this route will depend on your specific niche and brand; however, it’s certainly an option to consider.

Resources to help you set up your travel business and hire employees:

• How to Choose a Business Location
• 13 Out of the Ordinary Ways to Find the Perfect Business Location
• How to Hire Your First Employee
• A Comprehensive Guide to Creating a Business Website
• 7. Market and launch your travel business

Marketing will likely be where the majority of your initial funding budget goes, as it’s an important area to focus on when becoming a travel agent and starting a travel business. In fact, it’s a good idea to come up with a marketing plan as soon as possible.

For Don, the idea that you must spend money to make money drove the marketing strategy behind Costa Rica Vacations.

“Our ‘lesson learned’ in starting up our agency was primarily the realization that your Google Adwords budget can single-handedly determine your success when starting out in this normally competitive market,” he says.

Don’t make the mistake of thinking that all your advertising efforts should revolve around paid advertising, however. Plenty of your focus should go into social media marketing and guerrilla marketing tactics.

“I started out eight years ago running backpacking trips to Thailand, advertising using only lean, guerrilla marketing tactics,” says Brady Hedlund of Life Before Work. “I created an itinerary and website and hit the streets of western Canada to promote my new company.” Since his target demographic was 18-30-year-olds looking for an ‘adventure party tour,’ he went to university campuses and handed out flyers and posted signs advertising his travel agency.

“I didn’t get a single call for over a year,” he explains. “I honestly had no idea what I was doing at the time, but eventually, the business picked up and began to grow at an exponential rate. Flash forward eight years, and we now have a team of 35 full-time staff operating in 18 countries.”

Your marketing strategy will, as with all aspects of starting a travel business, be largely dependent on your specific niche, the demographic you are after, your budget, and your bandwidth as a business. That being said, combining both paid advertising with other guerrilla tactics (both online and offline) will likely serve you well.

Resources to help you market and launch your travel business:

• How to Write an Effective Marketing Plan
• 20 Marketing Tools Every Small Business Owner Should Try
• A Beginner’s Guide to Google AdWords for Small Business
• How to Have the Best Opening Day Ever
• Words of advice: Final tips from entrepreneurs who have started successful travel businesses
• “We searched for quite some time to find an underwriter that would provide us with general liability insurance, due to the amount of risks involved in adventure travel…This is a tricky product when it comes to insurance, but it’s obviously a very important piece of the pie.” – Brady Hedlund, Life Before Work
• “From the beginning, I have built up relationships with various individuals in Italy to help recruit staff for the villas used during our vacations. This varies from local cooks to tour guides to drivers. The little touches along the way, from booking flights for guests to getting the transport back to the airport, all adds up as every little bit helps to create the perfect experience for my guests.” – Lorne Blyth, Flavours Holidays
• “It’s important that your business partners share your values. I work with people in South America who are now my friends. We’re not in it for the money; we enjoy our jobs and if we can ‘eke’ out a living, all the better.” – Jacquie Whitt, Adios Adventure Travel

Business plan template and travel agency resources 

By now it should be clear that starting a travel agency requires a strategic approach and lots of planning. But don’t worry if it feels overwhelming. At Bplans, we have a full library of business planning resources to help you get started. You can browse through our free collection of over 500 real business plan examples , or download our free business plan template to help your travel business take flight. 

Clarify your ideas and understand how to start your business with LivePlan

Bri Morgaine is a seasoned content marketing leader with a decade of experience in copy editing, social media operations, and content strategy— having honed her skills at industry giants like Palo Alto Software and Andreessen Horowitz.

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Become a Travel Agent

• Travel Agent Requirements: Education & Licensing

Becoming a travel agent sounds like a dream job—meeting interesting people, visiting exotic locations, bringing joy to others who share your love of traveling. This exciting career opportunity can help you achieve all of these things.

However, it is important to be prepared for some hard work and creative planning. You should also be aware of the travel agent requirements before diving in, so you can be sure you do everything right the first time.

Is It Hard to Become a Travel Agent?

No. There are efficient routes you can take to becoming a travel agent, whether you start off part-time, or if it is your full-time business and career. You will be running a business, so any past experience, education, and training you can bring with you will be beneficial.

That doesn’t mean you need to be an expert in the travel industry before you begin, in fact most people who start a travel agency business have no past travel agent experience. Skills in business, finance, organization, marketing, event planning, and other areas can help in becoming a successful travel agent, however it is important that you love working with people and have a passion for the travel industry.

What Is Required to Become a Travel Agent?

Travel agent requirements will vary depending on where you live, what services you provide, and whether you are working alone, for a company, or with a franchise. With a home-based franchise model, there is a successful system in place with a proven track record, and the franchise will help you with any rules and regulations to be aware of in addition to certifications and training.

If you are affiliated with an established travel agency franchise, ask them for information about what is required and expected of you, as well as what additional achievements will help you advance. Be sure to ask about the travel business laws for your city and state.

The information below will help you gain a broad understanding of common travel agent requirements and how to get started.

Is Becoming a Travel Agent the Right Choice for You?

Fortunately, you do not need to enroll in a lengthy college program or earn a degree from a university to become a travel agent.

Certainly there are a few higher education opportunities available that may help you, so don’t rule out college as an option. You can also advance your skills and increase your knowledge of the industry with training and classroom learning.

As a travel agency franchise owner, full training, certifications and ongoing educational opportunities will be provided as part of your ongoing support the franchisor provides you with.

Formal Education

When it comes to education for a job in the travel industry, there are various levels, including certifications, associate’s degrees, and bachelor’s degrees. Your university may offer degree programs such as Tourism & Hospitality Management or Travel & Tourism. You can also opt for a degree in business or marketing and focus that knowledge into a travel agent business when you graduate.

You can also take individual classes or include valuable courses as electives in your degree program. Some classes may include travel management, hospitality management, business accounting, tourism marketing, or event planning.

Whether you choose to earn a degree before becoming a travel agent or not, there are also training options available to help enhance your skills. It is wise to continue to seek learning opportunities even after completing a degree and/or starting your business. Industry standards and trends may change over time, and it is great to stay up to date, as well as refresh your memory from time to time.

You may also have on-the-job training or an assigned mentor if you work in conjunction with a larger travel company. If you work independently, you may still be able to set up a partnership with a mentor, which can be highly beneficial when starting a new business endeavor. Someone who has recently done the same thing can help you avoid many of the mistakes they made and provide answers to your questions when you get stuck.

Do You Need a Certificate to Become a Travel Agent?

Travel agent requirements do not necessarily include certifications, so if you want to get started without one, it is absolutely possible. However, there are certificate programs you can enroll in that provide valuable training and accreditation, which helps build trust with your clients. If you have the time and financial resources to enroll in a certificate program, it is highly unlikely you will regret it.

In most cases, earning a certificate means passing a fairly difficult exam and proving you have specific experience. If you become a travel agent with a franchise, they will provide training that includes company certificate programs. These will help you prepare for the job and advance in the future.

Do You Need a License to Become a Travel Agent?

Obtaining a travel agent license takes some time and is not always necessary. However, you will most likely need some type of business license or employee identification number.

Travel Agent License vs. Business License

Fortunately, starting a travel agency often means working from home, which means the startup costs are minimal. However, you will still become the owner of a business and are responsible for the legal obligations associated with running that business. Some of the options for legally operating a business include a sole proprietorship, an LLC, and a corporation.

You may want to research the pros and cons of each of these to make sure you are choosing the right one for you. If you are working with a franchise travel agency that is already a corporation, find out what the requirements are for owning a franchise.

One of the biggest reasons businesses become LLCs is to protect the owner from losing personal assets. If you end up with an extremely unhappy customer who wants to sue the company, they are limited to the assets of the company and cannot come after you personally.

What Skills Do You Need to Be a Successful Travel Agent?

As a travel agent, you will need to do so much more than book hotels and airfare for people who know exactly what they want. You will be in the unique position of helping them plan the majority of details for the perfect vacation.

You will need to be familiar with a variety of vacation products, such as resorts, tours, cruises and more, as well as destinations across the globe. Each type of vacation has varying price ranges and varying amenities. For example, some resorts have family-friendly activities while others cater to couples and adults.

You will also need to know about excursions, tours, and landmarks. It helps if you can get your clients into the popular activities as well as recommend unique experiences and “secret” spots.

Looking After Overlooked Details

Other details that are often overlooked include educating your clients about local transportation and how to get where they need to. You may even help them arrange to be picked up and dropped off for different activities.

It also helps if you can recommend the best places to eat in the area that meet their specifications, such as family-friendly, romantic, or budget-conscious. Don’t forget to learn the best times of year to visit, when the weather is best and the crowds or prices are lower.

The Business Side of Things

In addition to a familiarity with the destinations you offer, you will need to know how to run your business successfully. This means you are capable of marketing your business and bringing in enough clients to stay in business year-round. It also means understanding accounting and taxes for your business.

You will need to know the logistics of booking, such as researching availability, finding promotional offers, putting together travel packages, and how to get in touch with all of your contacts that provide these services.

Skills to Invest In

If you lack experience and training as a travel agent and want to determine whether this is a good career for you, there are other skills and traits to consider. Below are just a few of the skills and interests that can help you.

• Customer service
• Computer skills
• Problem-solving
• Salesmanship
• Accounting and bookkeeping
• Working within a set budget
• Researching
• Communication (both with clients and vendors)
• Ability to make applicable recommendations

Dream Vacations Franchise

Dream Vacations Franchise can help you become a travel agent by providing you with all the resources you need, including travel license options and ongoing training. You’ll also have access to web-based technology systems for booking reservations, keeping track of customers, and more. Plus, you’ll have continuous support from helpful and experienced members of the travel industry. And of course, there are always the travel perks that make it easier for you to get out and see the world, rather than just sending your customers.

Learn more  about Dream Vacations Franchise  and how you can  get started with your own franchise  today.

Register for Free Webinar

Further Reading

This article is part of our  How to Become a Travel Agent: The Complete Guide  series:

Benefits of Being a Travel Agent

• How Do Travel Agents Make Money?
• Home-Based Travel Agent Tax Deductions

Sharpening Your Travel Agent Skills

• Travel Agent Skills
• Travel Agent Training
• What Tools Do Travel Agents Use?
• How to Find Clients As A Home-Based Travel Agent

The Travel Agent Experience

• How A Former Office Manager Became a Travel Agent
• How I Started My Travel Agent Career

Travel Agency & Franchise

• How to Start a Travel Agency from Home
• How to Become a Home-Based Franchise Owner
• A Complete Marketing Guide for Travel Agencies
• A Day in the Life of a Dream Vacations Franchise Owner

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How to Get a Travel Agency License

• Small Business
• Business & Workplace Regulations
• Get a License
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How to Open a Driving School Business

Differences between travel agencies & travel services, how to remove quickbooks update agent.

• How to Get a Massage License
• Do You Have to Have a Retailer's License to Sell Crafts?

The role of travel agents has changed radically in recent decades, primarily owing to the empowerment that technology has granted consumers to go online and literally write their own tickets. To be taken seriously by your clientele and service providers, however, learning how to get a travel agency license is recommended.

Given the startup costs and overhead of brick-and-mortar companies, aspiring agents may be attracted to running a home-based business upon completion of their training. Unlike many other professions, the U.S. travel industry does not require state licensing. Below are a few things to consider when getting a travel agency license.

Travel Agent Training School

In addition to traditional classrooms, courses are offered online to accommodate students whose employment, family commitments or logistics would otherwise preclude them from attending classes. Certification can also be obtained from the American Society of Travel Agents, the International Airline Transport Association and The Travel Institute. The Travel Institute offers three levels of certification – certified travel associate, certified travel counselor and certified travel industry executive – which are based on scope of service and years of experience.

Travel Seller License

Research whether your state requires you to have a travel sellers license. The following states regulate travel sales by individual consultants and agencies and require you to have to be registered regardless of where the agency is located: California, Florida, Hawaii, Iowa, Nevada, and Washington.

Submit a seller of travel registration application if your state is one that requires it. This form is most likely available through your state's department of justice or department of consumer affairs. In addition to an application fee, you will be asked to post a performance bond or establish a trust account and to meet a filing deadline no later than 10 days before you intend to go into business. If your state doesn't require a travel sellers license, you can still become a home-based travel business or work under the umbrella of a host agency that can enhance your credibility.

• Each state differs in its requirements for travel agents to set up shop. Registration requirements may include posting a bond or paying into a restitution fund.

Even if you are running a travel business out of a spare room in your home, you need a business license, a federal taxpayer ID number, a business bank account and – if you have set up a fictitious name for your company – registration with your state registar's office.

• For access to industry support and resources, you may want to join a recognized host agency. Following payment of a membership fee, the host agency then takes either a percentage of your travel sales or charges a flat transaction fee.
• "Home-Based Travel Agent"; Kelly Monaghan; 2006
• Anolik Law Group: TRAVEL LAW
• State of California Department of Justice: SELLER OF TRAVEL
• Florida Department of Agriculture and Consumer Services: Sellers of Travel FAQ
• HomeBasedTravelAgent.com: FAQ
• HomeBasedTravelAgent.com: Host Agencies
• American Society of Travel Agents
• AAA Travel Agent Training Center: FAQ
• The Travel Institute
• Even if you are running a travel business out of a spare room in your home, you need a business license, a federal taxpayer ID number, a business bank account and -- if you have set up a fictitious name for your company -- registration with your state registar's office.

Ghostwriter and film consultant Christina Hamlett has written professionally since 1970. Her credits include many books, plays, optioned features, articles and interviews. Publishers include HarperCollins, Michael Wiese Productions, "PLAYS," "Writer's Digest" and "The Writer." She holds a B.A. in communications (emphasis on audience analysis and message design) from California State University, Sacramento. She also travels extensively and is a gourmet chef.

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Tips For Independent Travel Agents On Tax Filing

T here are several tax filing considerations that you as an independent travel agency need to keep in mind. You are considered self-employed, which means you must handle your own taxes, which is one of the most crucial things to keep in mind since, in contrast to conventional workers, you are.

In order to maximize their tax savings and file their taxes, independent contractors like travel agents may run into problems. When selling hotel reservations, vacation packages, and other travel-related goods, many travel agents operate on a project-basis and make money. Because of the possibility of seasonal employment, revenue fluctuations may sometimes occur. The 1099 tax rate and form (and/or a  w2 template  if you find yourself working as an employee with any business), quarterly tax calculator, and self-employment tax calculator are thus essential tools that may assist you in making wise tax choices.

For independent travel agencies paying taxes, consider these suggestions:

1. Learn the tax regulations

In order to file taxes as an independent travel agency, you must first get familiar with the tax regulations that relate to your industry. Read the IRS publication on small enterprises and self-employed persons to learn how to record your income, deductions, and credits.

For independent travel brokers, it’s important to remember the following tax regulations:

-Unless you request an extension, you must submit your yearly tax return by April 15th and pay any taxes that are required.

– You are required to record all revenue you get from your travel agency, including 1099-style payments.

– Self-employment taxes, also known as Social Security and Medicare taxes, are due by self-employed people and now represent 15.3% of their net income. These taxes cover both the employer and employee components of Social Security and Medicare.

2. Recurring business costs should be monitored

Being a self-employed travel agent has several advantages, including the ability to deduct numerous company expenditures from taxable income, which may reduce your tax burden. You may write off certain costs, such as:

– Costs associated with running an office, such as rent, utilities, and supplies.

– Costs associated with traveling, such as lodging and rental vehicles.

– Marketing expenditures, including web hosting and advertising.

– The cost of your phone, camera, and computer equipment.

Maintaining precise records of all your company expenditures is crucial to ensure you don’t overlook any deductible costs. This is especially important because these agencies are exempt from some taxes, and you can  learn more about the tour operators margin scheme  if you live in Britain, for example. You may maintain a record of your expenditures in a spreadsheet or notepad, or you can use accounting software to manage your costs automatically.

3. Calculate the tax rate on your 1099 form

You get 1099 forms from your customers when you work as a self-employed travel agent, which implies that taxes are not deducted from your salary. Taxes on your income must be paid by you instead. Using a 1099 tax rate calculator is a fantastic idea to make sure you are allocating the right amount of money for taxes.

Based on your income and deductible costs, the calculator will help you establish your tax obligation. In order to assist you avoid underpayment penalties, it will also figure out the projected tax owed for each quarter.

4. Calculate the self-employment taxes

The self-employment taxes, which include Social Security and Medicare taxes, must be paid by self-employed people, as was previously noted. Use a self-employment tax calculator to get a rough idea of your taxes for being self-employed.

With the help of the tool, you can determine how much money you’ll need to put aside for self-employment taxes and an estimate of your tax liabilities depending on your net income. Remember that the self-employment tax rate is presently 15.3%, which includes 12.4% for Social Security and 2.9% for Medicare.

5. Maintain your tax payments on time each quarter

Quarterly anticipated tax payments are necessary if you anticipate owing more than $1,000 in taxes for the whole year. Penalties and interest fees may be assessed if these payments are not made.

Using a quarterly tax calculator to calculate your estimated tax bill for each quarter is crucial to ensuring that you pay your taxes on time and avoiding underpayment penalties. When the time comes to submit your taxes, this will help you prevent any surprises.

For independent travel brokers, handling taxes may be a huge hassle. But you can reduce the stress and increase your tax savings by being informed with tax laws, keeping track of your company spending, utilizing a 1099 tax rate calculator, calculating self-employment taxes, finding tax deductions and staying on top of quarterly tax payments. You can make sure you are remaining in compliance and choosing wisely when it comes to taxes for your travel company by heeding the advice in this guide.

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