How to Start a Travel Agency

If you’re the kind of traveler who obsesses over every detail of a trip then you already have most of what it takes to start a travel business. And as you research how to start a travel agency, you’ll discover that there’s a fairly low barrier to entry. Travel agency start-up costs tend to be reasonable, a degree isn’t necessary, and in the U.S. few states require that you register your business. All you need to become an independent travel agent is to take on your first customer.

That said, you might be confused about the best way to structure your business. And you’ll want to make sure you collect the proper commissions on your sales. Don’t worry, this step-by-step guide covers all that as it walks you through the process of how to open a travel agency. 

If you’re an aspiring travel agency owner, an independent travel advisor, or an existing travel professional looking to expand your business or formalize your operations, you’ll get an inside look at things like understanding the market, choosing a niche, registering your business, and coming up with a great website.

What is a travel agency?

The concept of a travel agency has changed quite a bit over the last few decades. Travelocity, the first online travel agency, opened for business in 1996. Other online travel agencies like Expedia and Priceline soon entered the market, and the number of bricks-and-mortar travel agencies fell by 61%, dropping from 34,000 locations to just 13,000 locations.

But independent travel agencies never really went away. Many travelers still prefer working with an expert who can offer advice on the best flights, make suggestions for different destinations, and handle any problems along the way. 

Today’s travel agencies aren’t just hanging on. In fact, in many significant ways, travel agencies are making a comeback.

Types of travel agencies

Today’s travel agencies fall into three categories:

• Traditional agencies: These are the closest to the original concept of a bricks-and-mortar travel agency, usually operating out of a storefront in an urban or suburban neighborhood. Often operating as franchises of well-known companies, they are one-stop shops that offer a broad range of services. 

• Independent travel advisors: Many modern travel agents have rebranded themselves as independent travel advisors focusing on designing custom packages for clients. Rather than opening brick-and-mortar shops, they most often work from home in order to keep their overhead down.

• Niche travel consultants: The keyword here is “niche,” which speaks to specialization. These boutique agencies focus on one type of travel, such as safaris to Africa, hiking trips in the Andes, or scuba diving adventures in the Great Barrier Reef. They might also plan specific types of trips like destination weddings or family reunions.

Types of services

Almost all travel agents provide basic services like trip planning, booking for transportation and accommodations, and access to popular vacation packages. But many agencies, especially independent travel advisors and niche travel consultants, offer a much wider range of other options.

• Itinerary design: Many agents create detailed daily itineraries for travelers who don’t want to leave anything to chance.

• Multidestination or remote trips: The more complicated a trip becomes, the more travelers rely on travel agents with plenty of experience.

• Logistics management: When travelers are arriving from more than one location, agents can coordinate arrivals and sync up local transportation.

• Access to perks: Travel agents can unlock perks not found online, such as room upgrades, priority boarding, and reservations at popular restaurants.

• Trip troubleshooting: Things go wrong on even the best-planned trips, and many travel agents offer 24/7 support for their customers.

Revenue models

Back in the day, travel agents were compensated by the airlines, hotels, cruise lines, tour agencies, and other travel companies. But the revenue models have changed over the years.

• Commissions: Most of a travel agent’s income is still generated through commissions. Airlines have largely eliminated fees to travel agents, but hotels and resorts, tour agencies, and even trip insurance companies still pay commissions.

• Planning fees: Some travel agents charge planning fees to compensate them for the time spent researching and booking a vacation. These fees are often paid in advance and function like a deposit.

• Service packages: More and more, travel agents are offering different tiers of service. These range from basic tiers for booking a flight or hotel to premium tiers for putting together complicated itineraries or providing concierge services.

Understanding the travel agency landscape

Despite multiple challenges—the continued popularity of online booking platforms, the increase in the cost of transportation, and a slower-than-expected rebound in the travel market after the pandemic—opportunites for travel agents have increased over the past few years. In fact, LinkedIn recently ranked travel agents among the 25 fastest growing roles in the country. 

Many industry experts believe that’s because today’s travelers are experiencing trip-planning fatigue. The sheer number of customer reviews, influencer testimonials, and “best of” roundups they encounter while researching an upcoming trip makes it harder, not easier, to make decisions. Data from Expedia shows on average travelers view 141 pages of travel content in the 45 days prior to booking a trip. Many travelers are now looking for ways to outsource that work.

They also want assistance when the inevitable problems arise. If a tour guide doesn’t show up, or if a flight is cancelled at the last minute, they want someone on call who can solve the issue right away. 

Because of all this, many travelers—especially younger ones—are no longer willing to leave things to an algorithm. According to the Los Angeles Times, Millennial and Gen Z travelers are turning more and more to travel agents. They have begun to realize that if they want a unique experience, an off-the-beaten-path adventure, or just the best deal, they need help from a seasoned professional. 

An industry on the upswing

According to experts, there appears to be plenty of opportunity for growth in the travel industry. The Wall Street Journal reported that the total number of travel agencies increased by 63% between 2024 and 2025.

Much of this growth seems to be fueled by smaller travel agencies. People with experience in administration, sales, and customer service are the ones most often researching how to become a travel agent. They say they are drawn to this field because it offers increased flexibility and an opportunity for growth. 

As we mentioned, the barrier to entry has never been lower. Going into an office usually isn’t required, making this field ideal for those who want or need to work from home. 

And the rise of technology-focused travel platforms like Fora Travel and Travel Planners International have made it easier for industry newcomers to access the tools for the job. These host agencies provide access to training and marketing materials. But most importantly, they allow agents who pay an annual fee to access their credentials for the International Air Transport Association. This lets agents collect commissions.

Define your niche

One of the first things you should do when you’re brainstorming travel business ideas is decide on a niche market. Yours might be a type of trip, such as family reunions, adventure travel, or destination weddings. What you’re selling isn’t just a trip, but your expertise.

Your niche might be defined in these ways:

Destination: You might focus on national parks, wine regions, or river cruises. By limiting your offerings to a specific destination or group of destinations, you are emphasizing your specific experience for that area or subject. 

Travel style: Think wellness retreats, eco-tourism, or adventure travel. People who prefer a certain type of travel are willing to pay a premium for a travel agent who can recommend a once-in-a-lifetime trip.

Demographics: This includes LGBTQ travelers, woman-only groups, and solo travelers. Traditional travel agents don’t always have the knowledge to book trips that are focused on specific groups.

Handling the business basics

As you begin putting together your travel agency business plan, there are a few things you need to consider right away. 

Creating a business plan

If writing a business plan sounds like a slog, don’t worry. The length doesn’t matter, as long as it gives you a solid sense of the direction you want to take your travel agency. Cover all the bases: your niche market, the services you will provide, your target audience, your pricing model, your projected costs, and how you plan to find your first clients. 

Your startup costs are likely to be minimal, which is part of the appeal of a travel agency. If you’re working from home, you might be able to start off with the equipment you already have. Some of the more substantial costs you shouldn’t forget are licensing fees, liability insurance, and any costs associated with incorporating. Make sure to factor in fees charged by a host agency that provides the credentials necessary to get commissions. 

After you tally all your expenses, figure out what you need to earn each month to cover your costs and pay yourself. 

Choosing a business structure

There are lots of different ways to structure your newly founded travel agency—some very simple, a few extremely complicated—but these three types account for nearly all of those opened each year in the United States. (Note, categories below do not apply to international sellers, which have their own business needs.)  

Sole proprietorship

It’s no surprise that the most common business structure is the one that’s the simplest to implement and the easiest to manage. A sole proprietorship is what is known as a “pass-through entity.” That means that any profit or loss is "passed through" to you, and you report them on your personal income tax return. 

Partnership

When you go into business with a colleague, you’re forming what’s known as a partnership. A partnership is slightly more complicated than a sole proprietorship, since you are required to submit a form detailing its profits and losses to the IRS. But in most other ways the structure is similar.

LLC

When your travel agency is a little established, consider putting together a limited liability company. This type of hybrid business structure combines the simplified pass-through taxation of a sole proprietorship with the personal asset protection of incorporation. 

Other business structures

As your travel planning business grows, the way you originally structured things might no longer meet your needs. Make sure to investigate the different types of business structures that are available.

Registering your business name 

Coming up with the right business name is crucial when you’re launching a travel agency. Make sure it’s short, simple, and easy to remember. If possible, hint at the niche market you are targeting.

When you're operating under a name other than your own, you'll need to register as a DBA ("doing business as") in your state or county. If you’re still brainstorming the right name, Squarespace's free AI-powered Business Name Generator is the ideal place to start.

Sort out your licenses and permits

The good news is that the federal government doesn’t issue licenses for travel agencies. Just five states—California, Florida, Hawaii, Washington and Iowa—have “seller of travel” laws that require you to register with a state agency. Each has different requirements, so do your research.

If you join a host agency like Fora Travel, they usually take care of the SOT registration and any associated fees. Again, do your research in advance.

Set your pricing

For newcomers to the travel advisor business, commissions will make up the bulk of their income. As a rule of thumb, agents make 10% to 15% of the total cost for most hotel rooms and tours. Specialty tours and luxury hotels can pay 20% or more.

Commissions are highest on products like travel insurance. They can frequently be as high as 25% or 30%. 

More than half of all travel agents now also charge planning fees. These fees, usually paid at the beginning of the planning process, compensate agents for their time and expertise. They can be a flat fee based on the type of a trip, or a tiered fee that includes more services at higher levels. 

It’s never too early to start thinking about how you’ll manage money. Squarespace Payments lets you accept credit cards, track transactions, issue refunds, and manage payouts all in one place. For clients who aren't purchasing directly through your website, Pay Links let you send a checkout link via email or text so they can pay you online.

Building your brand and online presence

Create a strong visual identity

Your brand is your first impression. A polished, consistent visual identity signals to potential customers that they should consider you to help them with their travel needs. Choose a color palette and typography that communicates your niche market. For example, shades of green could reflect your eco-friendly travel focus.

Don’t forget to put together a logo that you can deploy across platforms. Squarespace's free logo maker helps you create a crisp, professional logo, even if you don’t have a background in design. You can download it in formats that work across your website, social profiles, and printed materials.

Build your website

Your website is often the first place clients will encounter your business. It needs to be clear, professional, and easy to move through—especially on a phone, since many people will look you up on mobile. Blueprint AI can generate website layouts tailored to your business type, giving you a solid foundation to build. 

Your first step should be securing your web domain. You can use Squarespace's free Domain Name Generator to uncover options that work well with your business name. From there, make sure that your website has the functionality that you need to connect with customers. 

Consider using Acuity Scheduling to automate appointments with customers and send them helpful reminders. For your cancellation terms, Squarespace's free Cancellation Policy Generator helps reduce uncomfortable conversations when a client needs to change their plans.

Once you have your website, creating content doesn’t have to be a slog. AI writing tools help you draft service descriptions and about pages that you can shape in your own voice.

Creating a strong client experience

Simplify online bookings

The key to successfully selling your services is to make it as easy as possible for customers to take the next step. A scheduling tool like Acuity Scheduling, which integrates directly with Squarespace, lets them check your availability and book a consultation with you on their own time. 

Connect to your audience

Not every visitor to your website is ready to book their dream trip. Creating an email newsletter gives you the opportunity to stay connected to past clients and pursue new ones. Keep your travel agency top of mind by posting features on irresistible destinations, travel tips that will resonate with your audience, and highlights from the trips of recent clients. 

Reward loyalty

Travelers who are thrilled with their most recent trip are your best source of referrals. A simple thank-you note, a follow-up email, or a referral incentive can help transform a one-time client into someone who returns to you again and again. Consider offering a loyalty discount for repeat clients.

Bring it all together

Building a travel agency means you’ll always be evolving. Continue looking to the future, focusing on long-term sustainability and innovative strategies for growing your business. But with a clearly defined niche, a professional online presence, and content with an authentic voice, you are on track to build a travel agency that's both rewarding to run and valued by your customers.