Start Your Own Business in the Travel Industry
In the modern marketplace, setting up and running a successful and profitable travel business is a highly challenging task. There are a number of ways to enter the travel industry. If you have a love of travel and are planning to have a career in this industry, investing in your own business is a good option.
Contents
Steps
Starting a Franchise Travel Agency
- Understand the travel industry. First you need to familiarize yourself with different aspects of travel industry. Get as much information as possible about air travel, rail travel, cruises, hotels and vacation destinations. Also learn about what type of travel packages are popular among customers and so on.
- You can search the internet or find books at the local library to help you research the many facets of the travel industry. Additionally, you can directly contact companies in the travel industry, such as cruise ship companies or hotels.
- You may want to consider a niche market depending on your specific location or interests. A niche market is a focus on a specific product or sector of an industry.
- Some niche markets to consider are: cruises, local tours, a specific destination, corporate travel, or travel packages of interest to specific groups of people.
- Analyze your requirements. A travel franchise business has many benefits. However, each franchiser will have specific requirements, and remember that you will have to split your profits with the franchiser. Each franchiser will provide potential franchisees with their specific requirements.
- There are many different travel agency franchises. Make sure you compare them and their requirements to find the right fit for you and your business. There are many websites and books available to help you learn more about and compare the different franchises available.
- Franchises typically require an initial monetary investment to purchase a franchise. This can be as much as tens of thousands of dollars.
- Get a franchise license. Obtain travel franchise business licenses and permits of the reputed travel company you chose. The franchise company you choose will provide you with these legal documents. Sign the franchise agreement after proper analysis. Review all the points mentioned in the agreement and ask the franchiser any questions you may have.
- Consider hiring an attorney to review any legal documents included in this process.
- Check with local government agencies for any additional licenses or permits that may be needed.
- Look for a suitable location. Analyze the location requirements provided by the franchiser and start looking for a location as per those requirements. You will need a good location where clients can come and meet with you. You office must have ample space to house your computers and other essential equipment.
- A real estate agent or website can help you find the right location. If available in your area, try to find a real estate agent who specializes in commercial property.
- The location you choose should be highly visible and traveled by those customers you wish to target.
- Hire consultants and employees. Like all business ventures, for a travel franchise business you will need to hire an accountant or business consultant to draw up a business plan if you need a loan to get your business started. An accountant will help you to manage your finances effectively. Additional employees may be needed depending on the size or your franchise and the business plan.
- You can find and research professionals, such as accountants, on the internet, in a local phone directory, or through local organizations, such as a chamber of commerce.
- Local staffing agencies or advertisements in local papers can help you find the right employees to make your business a success.
- Develop marketing strategies: In a franchise travel business, the franchiser will definitely carry out the major advertising and marketing work. However, you will need to do some marketing within your territory to make people aware of your newly established business.
- Consider joining local organizations for business owners, such as a chamber of commerce.
- Compare mass marketing alternatives, including print, radio, and television advertisements, for your target market.
- Include internet and social media marketing in your marketing strategies.
- Build strong relationships with organizations in your industry, such as airlines, cruise ship companies, hotels, and car rental companies. Joint marketing opportunities may be possible.
- Find Proper payment methods: As in any business, your customers will need to make payments through cash, cheques or credit cards, and you need to make the required arrangements.
- You should open business banking accounts and acquire a credit card that can be used to pay all business related expenses.
- Compare local banking institutions and take advantage of any small business incentives available.
- Follow franchisor guidelines. Always follow the requirements and guidelines of the franchisor to more effectively achieve your goals. Handle customers efficiently and give importance to the unique selling proposition (USP) of the company.
- The franchisor will provide all of the guidelines and other operating requirements that you need to follow.
- Remember that the franchisor's success depends on the success of its franchisees. Therefore, they are there to help you succeed.
Starting a Home-based Travel Agency
- Check your state and local guidelines to start a home travel agency. Depending on where you live, you may have to file paperwork to legally work from home. You'll also need to file the appropriate paperwork with your local government to become a business.
- You can visit your local government offices to find out more information about these requirements.
- Online research and your local library are other locations to find more information about legal requirements for a small business.
- Choose the type of home travel agency you want to run. You can do business by referring others to bigger companies, earning a referral fee, or you can do business by booking and selling various travel packages.
- You can search the internet or find books at the local library to help you research the many facets of the travel industry. Additionally, you can directly contact companies in the travel industry, such as cruise ship companies or hotels.
- Contacting other small travel agencies may help you to learn more about the type of agency you want to start.
- Write a business plan. This will provide you with a solid foundation, and will help you secure funding from investors if you need additional capital to start your business.
- You can find help developing business plans online.
- A business consultant can also help you to develop a solid business plan.
- Set up banking. You will want to open two separate accounts. One account should be for your business as an independent travel agent, where you track funds coming in to and going out of the business. The other account should hold all the money your clients provide to book their trips.
- Compare local banking institutions and take advantage of any small business incentives available.
- Aquire a credit or debit card to help pay for business expenses as well.
- Contact various travel companies. Building relationships with vendors can help you negotiate package deals to offer to your customers.
- Dealing with more than one company can give you more to offer your clients, and it could also provide you with additional money.
- Having strong relationships in the industry can also help your marketing efforts.
- Market your business. As opposed to franchisees or independent contractors, home-based travel agencies need to perform all of their own marketing.
- Consider joining local organizations for business owners, such as a chamber of commerce.
- Compare mass marketing alternatives, including print, radio, and television advertisements, for your target market.
- Include internet and social media marketing in your marketing strategies.
- Consider partnering with other travel agencies that can serve as your connection between the airlines, cruise lines, and accommodations. With these connections, you can have additional time to make more connections in the industry.
Becoming and Independent Contractor in the Travel Industry
- Research different host agencies. Independent contractors in the travel industry may have the best of both worlds. They have the independence of their own business with the backing and security of a host agency, which pays a commission to the contractor.
- There are many different host agencies. Make sure you compare them and their requirements to find the right fit for you and your business.
- You can search the internet or find books at the local library to help you research different host agencies in the travel industry.
- Some host agencies require an initial monetary investment to become an independent contractor. However, the cost is typically much less than purchasing a franchise.
- Host agencies handle much of the back office work, such as calculating and paying commissions, providing training, and handling some marketing.
- Licensing and certification are typically handled by the hosting agency, allowing the independent contractor to focus on finding customers and making sales.
- Sign a contract agreement with the selected host agency. The host agency will provide you with the legal documents. Review the agreement thoroughly before signing. Ask the host agency any questions you may have.
- Consider hiring an attorney to review any legal documents included in this process.
- Check with local government agencies for any additional licenses or permits that may be needed.
- Consider your business location. Independent contractors are not employees of the host agency. They are their own business owners. Some host agencies do provide office space for their contractors. You may also consider a home-based office or a traditional store front office.
- A real estate agent or website can help you find the right location. If available in your area, try to find a real estate agent who specializes in commercial property.
- The location you choose should be highly visible and traveled by those customers you wish to target.
- Follow host agency guidelines. Be sure to understand and follow any requirements from your host agency. As much as possible, take advantage of any training offered by the host agency, as this will help you meet their expectations and achieve your own goals.
- The host agency will provide all of the guidelines and other operating requirements that you need to follow.
- Remember that the host agency's success depends on the success of its independent contractors. Therefore, they are there to help you succeed.
Tips
- Network with other people in the travel industry to establish strong relationships with your vendors.
- Contact franchise owners, home-based agents, or independent contractors to get feedback of their first hand experience in the travel industry.
- Consider taking a few business courses so you can learn more about how to start and maintain your business more effectively. These courses can be found nationwide at local community colleges and online. Any fees paid to enroll or participate in the course are tax deductible as a business expense.
- Join societies and organizations specifically for travel agents. These organizations can increase your visibility to consumers as well as 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.
- While not required, consider becoming certified. Each country has their own national certification boards for travel agencies. If you are looking to be a travel consultant in the United States, seek certifications from IATA and The American Society of Travel Agents.
Warnings
- As with any business, it takes time to become profitable. Make sure you are prepared financially until revenue exceeds expenses.
- Before you start a travel business, research the competitors within your locality.
Things You'll Need
- Money to Invest
- List of travel franchisers
- Good location
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