How to Start a Travel Agency From Home

Co-authored by Greg Guiteras

Last Updated: March 17, 2023 References Approved

If you are an experienced traveler with a background in sales or travel booking and you are looking for opportunities to work from home, you may be interested in starting a travel agency. Tourism is a strong economic sector, but travel booking is also a service many people would rather perform themselves these days. Still, running your own travel agency from home comes with a unique set of perks, so before jumping in, make sure it's the right move for you. If you want to know more about how to start a travel agency, we’re here to help.

Part 1

Part 1 of 3:

Getting Started

1
Check local and state laws. Before you start working as a home-based travel agent, you need to make sure you comply with all applicable laws concerning home-based business and travel booking. Depending on where you live, you may have to file paperwork to legally work from home. You will also likely need to file appropriate paperwork to become established as a recognized business in your state.
- Look for your state's business zoning laws online.^{[1]
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2
Develop a business plan. Not only will this provide you with a clear plan for running your agency, but it will help you secure funding from investors if you need additional capital to start your business. If you want to get financial backing for your agency, your business plan will need to include a great deal of information about your plans and projected financial information. For tips on how to create a business plan, check out How to Write a Business Plan.
- Don't forget to state your personal licenses, degrees, skills, and qualifications in your business plan. This information should include essentially anything you would put in a resume. For purposes of obtaining financing (if needed), you will need to show your potential lender that you are capable of assuming responsibility for your business.
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3
Identify a target audience. Do some online research to figure out what demographic is likely to be most interested in your services and plan to target them specifically.^{[2]
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Research source} You should use your target audience to help you figure out how to market your business. For instance, if you are targeting retirees, you should probably not rely solely on social media for advertising.
- Analyze demographic information for your area, which can be found at your city or county auditor's office or website.
- Find travel statistics for your proposed specialty area and also find out what proportion of people near you fit your target demographic.
- Use these data to estimate your anticipated business over a given period and what your profit might be.
4
Anticipate start-up needs. Create a detailed list of what you require (equipment, supplies, employees, etc.) in order to begin business operations. For each item in your list, include a justification for its need and its estimated cost. This information should also go into your business plan.
- Since your business will be run from your home, you may find that you already have many of the items or materials you will need to operate your travel agency (such as basic office supplies). However, you might wish to keep your personal and business materials separate for tax reasons.
- Keep receipts for everything you purchase for your business so you can include them as tax write-offs.
5
Calculate projected cash flow. Consider all your likely financial obligations; this might include insurance premiums, business licensure, and applicable taxes. Then consider your projected income, which should be based on current travel market data and on the presence of your local target demographic. This sort of information will be a critical component of your business plan, but will also help you figure out whether your home travel agency will be viable.^{[3]
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- Be sure to do your homework on this so you don't overestimate your likely earnings.
- Don't forget to account for one-time and/or emergency expenses. For example, perhaps some of your expenses during the first few months of operation will not recur.
6
Open two bank accounts. One account is for your business and will serve the purpose of handling business expenses and receiving all income. The other account is for holding all your client booking funds, which will be allocated specifically to covering the expenses associated with your clients' travel arrangements.
- It is a good idea to select a financial institution that has special deals for small businesses (such as rewards or waived annual account fees).
- For ease of tracking and transferring funds when necessary, have both bank accounts be through the same banking institution.
- For tax and legal reasons, do not combine your business accounts with your personal checking or savings accounts!
7
Choose a travel specialty. Consider whether you'd rather operate a general travel booking agency or have a more specialized business niche. You can do business by referring others to bigger companies (thereby earning a referral fee), or you can focus on booking and selling specialized travel packages. There are tons of options here!
- As a home travel agent, you could focus solely on cruises, vacation homes, luxury travel, or standard travel specializing in booking flights and hotels.^{[4]
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- Consider whether you wish to specialize in a certain geographical area. You might be able to offer unique services or deals not found elsewhere by doing repeat business with a handful of resorts (for example).
- Draw from your personal expertise and/or experience in choosing a specialty. Going with what you know is often a solid decision.

Part 2

Part 2 of 3:

Creating a Home Office Space

1
Check regulations in your area. In order to have customers visit your home for business purposes, you may have to comply with certain health, fire, and building codes pertaining to your home office. It is even possible that you will not be able to establish a home office without a separate entrance for your office and a minimum square footage for your space.^{[5]
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Trustworthy Source
U.S. Small Business Administration
U.S. government agency focused on supporting small businesses
Go to source} Check your city and state government websites for specific information.
- You may also have to comply with Americans with Disabilities Act (ADA) regulations for your home office, which could include making your home office accessible to wheelchairs.
- Certain safety precautions may be required for your office space, such as having a smoke detector and/or a fire extinguisher in the room.
2
Designate a room for work only. Your home office should be a dedicated area within your home that is used solely for business purposes. This conveys professionalism to your customers, who probably don't want to see your kids' toys strewn across the floor of your office. If possible, select a room in your home close to the building entrance so your customers don't have to trek through your house to get there.
- Whether or not your local or state building codes require it, having a separate entrance for your office space is a great feature, as it helps keep your home and work spaces separate and preserves your family's privacy.
- Put a lock on the door that lead from your home into your office. This will keep children, house guests, etc. from getting into your workspace when they shouldn't.
3
Purchase a desk. You will need to have a desk in your home office that you can sit behind while working with customers. In addition to appearing professional, this is a functional necessity as your transactions will involve document signing and possibly pamphlet or brochure material viewing.
- Make sure your desk is large enough to be useful, yet small enough to fit comfortably in your office. Cramming an enormous desk into a tiny room will make the area feel too small and could create awkward experience for your customers.
- Get a flat-top executive-style desk with no built-in pieces on top that would be positioned between you and your customers. You want your office space to seem as uncluttered as possible.
- While a desk is an important office accessory, you should also leave room for additional essentials, such as a filing cabinet and chairs for your customers.
4
Decorate tastefully. While a minimal amount of artwork and knick-knacks are acceptable, try not to overdo it when decorating your home office. As a travel agent, it might be a good idea to decorate with photos or paintings of picturesque landscapes of places to which you offer travel arrangements.
- Reserve some wall space for any diplomas or certificates you have received (especially those relevant to your work as a travel agent). Frame these and hang them on the wall behind your desk or next to where your customers will be seated.
- Add some plants to your office to make your office feel more comfortable and inviting. Plants add color and help freshen the air; just be sure they don't get so big they encroach on your workspace.
5
Keep it clean and organized. Perhaps the most important thing you can do for your home office to maintain an image of professionalism is to ensure that it is well-organized and clean. This means tidying up regularly, dusting and vacuuming at least every few days, and emptying trash bins at the end of each work day.
- Make your office a cleaning priority; most of us occasionally allow our homes to fall into disarray when we are busy or overworked, but customers expect to see cleanliness and order in a professional office, even if it is in someone's home.
- A customer who finds your workspace to be cluttered and disorganized may be hesitant to entrust you with their travel arrangements; professionalism is the name of the game here!

Part 3

Part 3 of 3:

Maximizing Your Business and Profit

1
Create a website. This is essential for the successful operation of an at-home travel agency, because the majority of your business (including most of your initial contact with clients) will be conducted online. Additionally, having a well-maintained website conveys professionalism to potential clients and is the best way to have your business discovered by interested customers.
- You can create a website for free using a number of services, including OnlineAgency.com. ^{[6]
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2
Look into referrals. Contact large, well-established travel companies to negotiate package deals that you can offer to your clients. Some large companies will allow you to operate privately as a contractor, but only if you comply with their regulations and licensure. While you're at it, ask what kind of referral commissions you can earn by sending customers their way.
- If you choose to operate under a "host agency," you may have to check with them regarding your freedom to have a referral relationship with other companies.^{[7]
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- Referrals are a good option to keep open because it can both offer your clients a wider range of travel options and give you more chances to increase your profits.
- Contact multiple companies and try to establish relationships with all of them. The more companies you work with, the more business you will likely see!
3
Join professional travel agent organizations. These organizations can increase your visibility to consumers and your credibility as an agent. You can join the American Society of Travel Agents (ASTA), the National Association of Commissioned Travel Agents (NACTA), or the International Air Transport Association (IATA). If possible, join all 3 to give your business the biggest boost.^{[8]
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- Professional organizations such as these allow you access to educational materials such as webinars and online discussion forums and hold annual conferences you can attend to learn about new developments in the travel industry.
- Some organization websites have cycling membership features, which (should you be featured) would be massively helpful for increasing your visibility as an agent.
- Some particularly shrewd customers might look for agents who belong to these memberships so they know they are dealing with a vetted professional.
- Check to make sure that your name and business contact information can be found online in organization databases. If your name can't be found on the organization website, then being a member won't increase your visibility much.
- Most professional organizations require an annual membership fee, so build this into your financial projections/business plan if you intend to join any.
- Determine whether you need to meet additional requirements for organization membership (such as nomination by a current member) by visiting the organization website(s).
4
Consider taking a few business courses so you can learn more about how to start and maintain your travel agency most effectively. Search the course offerings at your local community college and online. Any fees paid to enroll or participate in courses related to the operation of your business are tax deductible.
- You may be able to find training courses specific to running a travel agency.
- Even if you have previous business education or experience, a refresher course can be very helpful, especially for learning up-to-date laws.
5
Promote your business. This can be done in a number of ways and should depend at least in part upon your target demographic and their consumer habits. However, much of modern marketing is online, and this is where you should start as a home-based travel agent -- especially since the majority of your business will likely be conducted online!
- Use social media! Create a profile page on LinkedIn,^{[11]
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  Research source} Facebook,^{[12]
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  Research source} or some other widely-used social media site. Post often about offers and services. This should help you attract business through visual exposure.
- Create a channel on YouTube or Vimeo and showcase destinations or resorts with whom your customers have recently booked. You can link the videos to your social media accounts.^{[15]
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6
Establish a customer incentive program. In order to get more business via word-of-mouth, offer rewards to clients who refer additional customers to you. These can be in the form of a simple voucher for discounted future services, gift certificates to local restaurants or stores, or just about anything else you choose.
- If you aren't sure what sorts of incentives your customers are most likely to be interested in, offer a range of rewards for successful referrals. You can also survey customers to discover majority preferences and use this to design your incentive program.
- If you can figure out an incentive system early enough, incorporate this into your business plan.

Community Q&A

Question

How do I start a travel agency from home?

Community Answer

Follow the advice in this article.
Question

What is the cost of starting a travel agency from home?

Tom De Backer

Top Answerer

There is no specific number because it depends on what exactly you need. Large travel organizations often supply brochures for free, so all you need is office supplies and furniture. Depending on what you already have and what you want, this can be anywhere between $300 and $3,000. If you will have to rent office space or employ personnel, that amount will, of course, go up significantly.
Question

Do I need registration?

Community Answer

Yes. If you would like to start a travel agency, you should start simple and then grow out to be bigger. No matter what you do, though, you will need government approval.

Warnings

Be careful not to violate zoning laws in your area; this could result in fines and the dismantling of your business.

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