How To Start A Travel Agency From Scratch In 8 Steps (2025)

Are you passionate about travel and dream of turning that passion into a thriving business? If so, you’re not alone. According to recent statistics, the travel and tourism industry continues to experience steady growth, with billions of people embarking on adventures near and far each year.

But how do you transform your love for travel into a successful travel agency? Where do you even begin? As you contemplate the exciting journey ahead, these questions may be swirling in your head.

That’s why, in this little guide, we’ll take you through the essential steps and share some insights on how to start a travel agency from scratch.

Key Takeaways

• The three main types of travel agencies – home-based, brick-and-mortar, and franchise come with different cost structures. Home-based travel agencies are lower compared to franchise and brick-and-mortar.
• SEO is important for client acquisition. On-page SEO helps you focus on quality content and organic keyword integration. Technical SEO focuses on on-site optimization to help your visibility and marketing.
• Utilizing CRM, GDS, and metasearch engines allows you to streamline bookings, track your client’s preferences, and deliver your services more competitively and efficiently.
• Customer retention is more cost-effective than trying to get new clients. So, to retain customers, focus on personalized email marketing, discounts, customized offers, and incentives to maintain customer loyalty.
• Compliance with legal requirements and licensing is vital, as it will prevent legal issues, ensure trust, and protect consumer data.

Overview of the Travel and Tourism Industry

Understanding the travel and tourism industry before starting a travel agency is important. The industry is a powerhouse of the global economy, generating billions of dollars in revenue annually. In 2023, the World Travel and Tourism Council reported that the Travel and tourism sector contributed 9.1% to the global GDP, an increase of 23.2% from 2022 and only 4.1% below the 2019 level.

The Travel and Tourism Industry encompasses various services, including transportation, accommodation, food and beverage, and activities catering to leisure and business travelers.

The industry’s growth is fueled by consumer demand for unique travel experiences and the increasing accessibility of global destinations. This means one thing—there’s enough money to go around within the industry, and as a travel agent, you stand in a vantage position to take a portion of the gold mine.

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How to Start Your Own Travel Agency in 8 Easy Steps

If you are asking the million-dollar question, “How can I start a traveling agency in 2025?” You are in the right place. Here are the eight steps to start a profitable travel agency in 2025. 

Step 1: Research market trends

Before starting a travel agency, the first step is to research current trends and customer preferences regarding traveling. For instance, the rise of online booking platforms and social media has revolutionized how travelers plan and book their trips, making the process more convenient and tailored to individual preferences.

Also, online travel agencies OTAs such as Booking.com and Expedia allow customers to book flights, hotels, and other travel services directly from suppliers. This gives travelers greater control over their booking process and allows them to compare prices, read reviews, and make informed decisions. So, to compete favorably with these big players, you must know what exact problems your travel agency solves. For instance, you could start a travel agency that:

• Offer services to luxury travelers who don’t have the time to check a travel booking website.
• Serve clients who want to travel on a budget by making available shared trip opportunities.
• Sell pre-packaged tours like luxury vacations and adventure travel, including flights, accommodation, transportation, and activities.
• Provide guidance and assistance with visa applications and other travel documents and insurance.
• Assist couples in planning their dream honeymoon, including romantic destinations, accommodations, and activities.
• Sell travel adventure tours, such as trekking, hiking, scuba diving, and wildlife safaris.

The bottom line is that every travel agency is different, so you need to know the services you want to offer and research market trends within the market.

Read also: The Eight Best CRM Software for Travel Agencies

Step 2: Choose a niche and estimate the startup cost

Before you get into the nitty-gritty of the entire operation, you need to choose the type of agency you want to run: home-based, brick-and-mortar, or franchise agency. Then, estimate the cost involved in setting it up. Let’s look at some types of travel agencies and their cost breakdown.

#1. Home-based travel agency

Home-based travel agencies usually are the cheapest to start. As a home-based travel agent, you run your agency from home. In addition, according to a report, over 71% of travel agencies are home-based.

Not to mention, home-based travel advisors can join a host agency, which can further reduce costs, provide access to necessary licenses, offer training, and establish vendor partnerships. This is a great option if you have limited funds. The table below is a detailed breakdown of the cost of establishing and operating a home-based travel agency.

• Total initial setup costs: $1,550 – $4,400
• Monthly operating costs: $200 – $750

#2. Brick-and-mortar travel agency

Establishing a brick-and-mortar travel agency requires a more significant financial investment than a home-based setup. Coupled with the added expenses of leasing or purchasing office space, furnishing it, and managing higher operational costs. Below is a detailed breakdown of the costs of setting up and maintaining a brick-and-mortar travel agency.

• Total initial setup costs: $6,000 – $25,000
• Monthly operating costs: $4,000 – $16,000

#3. Franchise travel agency

Starting a franchise travel agency offers several benefits, including brand recognition, training, and ongoing support. However, it is significantly more expensive because it attracts extra costs with franchise fees and ongoing royalty payments.

If you decide to start your own travel agency, there are risks and rewards, such as flexibility and the challenge of building a business from scratch, making starting a franchise a better option. Here’s a detailed breakdown of the costs associated with establishing and operating a franchise travel agency

• Total initial setup costs: $14,000 – $40,000
• Monthly operating costs: $3,500 – $12,000 (plus royalty and marketing fees).

Step 3: Create a detailed business plan

Before you start a travel agency, it is important to create a detailed business plan that captures your business description, market research and analysis, financial projections, organizational structure, service offerings, and marketing and sales strategy.

Don’t roll your eyes at the thought of a business plan. See it as setting a roadmap for success in your travel agency business because it helps you define your direction and set clear strategies, highlight potential opportunities, attract potential investors, and ensure everyone within your team is working towards a common goal.

You must analyze each segment of your business plan in detail. For instance, your sales and digital marketing strategies will depend on the target market your travel agency niche serves (geographical location, age, income level). All this should be included in your business plan.

Read also: Travel Agency Marketing: Strategies for Success in the Digital World

Step 4: Fulfill licensing and legal requirements

Whether you are starting an online travel agency or starting a brick-and-mortar travel agency, it’s best to meet all licensing and legal requirements, especially for independent travel agents.

To start a travel agency in the U. S., register with the Secretary of State or obtain a business license from your local municipality. Also, if you want to work with international travel, you must apply for International Air Transport Association (IATA) accreditation. This allows you to sell airline tickets and makes booking and managing reservations easier for your clients.

It also makes sense to register your business. Most travel agencies prefer to register as a limited liability company for several reasons: your personal assets are shielded from business debts and liabilities, there are tax advantages, and you have a flexible ownership structure. Additionally, to open a business bank account and get your federal employer identification number, which is vital for payment, you need to register your business and meet essential licensing and legal requirements.

Step 5: Establish an online presence and build partnerships

To build a profitable travel agency, utilize social media platforms to build your online presence and have strong partnerships with travel suppliers, including hotels, tour companies, airlines, and cruise lines.

Partnerships with cruise lines are critical, as they provide attractive perks and discounted rates, enhancing the appeal of your agency. When you collaborate with established businesses, you gain access to their customer base and build your reputation as a trustworthy entity in the travel industry. This approach saves you money, enhances your brand image, and boosts revenue. Travel supplier training courses are a cool way to learn about their services and how to partner with them. It also makes sense to join travel associations and attend travel expos and industry events.

Partnership and networking strategy: how does it help?

Attending industry events is a good thing; the same goes for trade partnerships and long-term relationships. It’s safe to say that you might not know all that you can glean from alliances and events. Here’s a more detailed explanation:

Expansion and exclusive deals

Partnering with an airline, hotel, or other services within the same niche can open you to new markets and regions. This means that your offerings will also increase, capturing areas like camping and adventure that you were not offering before. Clients usually enjoy exclusive deals like discounts and promos on hotels or flights. A trade partnership is a good idea, but as we mentioned, you need to pinpoint the business you have in mind and present them with your offer.

Client retention and consistent revenue

Maintaining a good relationship with your partners will give you reliable services that allow you to focus on growth rather than seeking new partners. Your relationship with a client can also ensure a steady stream of recurring business. You will then be able to retain customers because they’ve come to trust and feel valued by your services.

Step 6: Double down on marketing and customer acquisition

Marketing is central to the success of your travel agency business. Without a well-thought-out marketing strategy, your business will be like a lamp hidden under a bushel, which defeats the purpose of starting a travel agency business in the first place. Thankfully, you don’t need a degree in marketing these days to plan an effective marketing strategy. 

The basic starter pack is to have a professional website where potential clients can make a query or book a consultation with you to plan their next trip, but beyond this, established agencies build a more robust online presence; here are some marketing strategies to employ for your travel agency business success.

#1. Search engine optimization

“Cheap” and “effective” are two adjectives rarely used to describe the same thing, but search engine optimization is a notable exception. It is an excellent travel agency marketing strategy to reach your customers cost-effectively.

Here is how it works.

People use search engines to find web pages that provide answers to their questions. They type keywords into the search bar on their favorite search engine (Google, Duckgogo, Yahoo) and receive a list of web pages that contain these keywords. These search engines have a way of determining the best web pages for each keyword, known as algorithms (Sets of rules for the search engine). The better you follow these rules, the more likely your web page will show at the top, where people will easily see them.

There are three different parts of an SEO strategy:

• On-page SEO: Here, the focus is on keywords, content quality, meta description, internal linking, title tags, etc.
• Off-page SEO: This includes backlink building, social media marketing, content marketing, local SEO, influencer outreach, forum engagement, and directory submissions.
• Technical SEO: This includes website speed optimization, mobile friendliness, crawlability and indexing, structured data markup (schema), canonicalization, HTTPS and site security, fixing broken links and 404 errors, URL structure, and an XML sitemap.

Common SEO strategies for travel agencies

Here are some common SEO strategies that you can employ today to provide value for your target audience and  grow your customer base:

Blogging 

This is a simple hack to generate traffic. For instance, do a quick search on ‘top travel vacation destination.’  What will you find? Travel agencies dominate the search results, meaning more visibility for their services. 

The principle of blogging as a business is to create value for your target audience and capture leads as they go through the different stages of the buyer’s journey. In line with this, you need to know what challenges your target audience has and how they use search engines to find answers to these questions. Once you have a clear idea, you should start writing down keywords they may use. Long-tail keywords are preferable because they are more specific and less competitive. 

Once you have written down these keywords, the next step is to find out how competitive they are. This involves checking web page rankings to see their content quality and authority. You can also use Ahref, Ubbersuggest, Yoast SEO, etc. Once you have an idea of the keyword to use and the content structure, you can write a blog post.

Local SEO

Local SEO, as the name suggests, involves optimizing your business to appear in search results when people in your locality search for your business type. This is achieved through strategies such as optimizing your Google My Business profile, building local citations, encouraging customer reviews, and incorporating location-based keywords.

#2. Pay-per-click advertisement

Pay-per-click (PPC) advertising is a digital marketing strategy in which you pay a fee each time your ad is clicked. It allows businesses to bid for ad placement on search engines, websites, or social media platforms, ensuring immediate visibility and targeted exposure to potential customers. This marketing strategy costs anywhere from a few thousand dollars to tens of thousands of dollars to get desirable results.

The success of your PPC ads depends on your deep understanding of your target audience. So, before you start a PPC campaign, you must collect as much data as possible on your target audience, including demographic, psychographic, and geographic data. Also, promote your travel company on travel booking platforms.

#3. Social media marketing 

Over 85% of the world uses social media to connect with friends, purchase products, discover new brands, and lots more. This presents an excellent opportunity for businesses that cater to the travel industry.

Social media marketing offers direct access to your customer base and helps you understand them more. The first step in setting up a social media marketing strategy is audience research. Your audience research will help you know your target audience, the kind of content they consume, and where you are likely to find them.

Once you have these details about your audience, the next step is to set up your social media accounts and start posting content. The content you post should align with your target audience’s needs. A hack for creating content that converts is to look at what your competitors are doing and what works for them. Once you know what works, you can improve on that to maximize engagement and conversion.

Social media marketing strategies like influencer marketing and user-generated content should also be considered. These tactics lend credibility to your brand and create the fear of missing out, prompting your target audience to convert faster. Other tactics include running ads, using hashtags, and collaborating with similar accounts.

#4. Remarketing

With remarketing, you can show targeted ads to clients who had visited your website previously but did not book a ticket, make a trip reservation, or do any of the desired actions you had in mind. How does it work?

When a client visits your website, a cookie is placed in their browser – it is a small piece of code that tracks their behavior and interactions. For example, you can visit Amazon or a smaller store with an online presence. However, when you leave the store to go to another website like YouTube or Forbes, you still get to see ads from Amazon, which makes it look weird because the ad is the exact thing you saw on the website moments ago.

With the cookie in place, remarketing allows you to show personalized ads to your clients. As a travel agency, when they visit your website to check out a travel package and leave, you can show them an ad with special incentives for the same package to entice them back. Remarketing is simply re-engagement.

#5. Guest blogging

Under common SEO strategies, we mentioned blogging, which is the same as guest blogging. The only difference is “guest”. According to statistics, 64.9% of link builders use guest blogging as their link-building strategy. The percentage shows that many people know about it, and it is one of the best ways to increase your authority within the travel industry.

What does guest blogging help you achieve?

With guest blogging, you can write on other websites, mainly the ones in the travel industry. For the blog posts and articles you publish on those websites, there’s usually a byline and a link that leads people back to your travel site. It’s more like writing about your services with a link that brings them to your website to see the complete package. 

For example, you can write a guest post about “Best practices for sustainable trips and tours in Europe” on a known blog and link the post back to your sustainable tour packages. By doing this, you will improve your credibility as a travel agency. 

#6. Influencer marketing

Influencer Marketing Hub says influencer marketing is a hybrid model of old and new marketing tools. How? It’s a fusion of digital tech and word-of-mouth advertising. The only difference is that the individual is famous, and the deal always ends up in a collaboration between your agency and the influencer.

Influencer marketing is a strategy that involves collaborating with individuals with a solid social media platform following. Think of it as using people liked and known by the public to promote your travel agency. It can be a top influencer on Instagram, Facebook, or YouTube. All they have to do is to share their experience with the services offered by your agency.

When they share their experiences online, they will indeed receive traction from their followers. Some people have explored opportunities and services just because their favorite individual or celebrity talked about them on a social media platform. This is because they consider influencers’ authentic voices and see the shared experiences as personal recommendations.

Read also: Tourism Marketing Strategies to Boost Your Business

Step 7: Utilize CRM and travel agency software

EngageBay CRM dashboard

Successful travel agencies have one thing in common—they maximize technology tools to attract clients, provide services, and nurture client relationships. For example, whether you have a physical office or run a purely online luxury travel agency, you will attract and retain more customers when you have online booking systems in place.

Another integral tool for business management is Customer Relationship Management (CRM) systems. They help manage your work and provide a better experience for your clients. Travel-specific CRM systems do more than keep track of contacts—they handle bookings, follow up with clients, and make it easy to personalize your service.

Besides CRM systems, you should consider using tools like Global Distribution Systems (GDS) and Metasearch Engines. Let’s look at how GDS and Metasearch Engines work.

#1. Global distribution systems (GDS)

Global distribution systems are large computerized networks that act as a hub, letting you quickly find the best options for your clients. Online booking platforms like Travelport and Amadeus connect you with various airlines, hotels, car rentals, and other travel services. In essence, they connect you to providers of these services, giving you access to up-to-date inventory and real-time pricing.

For example, if you need to fly from Texas to London, the GDS will show you available flights from different airlines and their pricing, seat availability, and schedules for comparison. The same thing works for hotels. When you use GDS, it simplifies the booking process and spurs you to offer competitive prices.

#2. Metasearch Engines Work

Metasearch engines gather travel services from different sources, helping you compare prices and options. Examples of metasearch engines are Google Flights, Skyscanner, and Kayak. They work differently, but from their operation, you can tell they have a similar purpose as the GDS.

Metasearch engines allow you to search for flights, hotels, and car rentals from different providers. The critical difference between GDS and metasearch engines is that metasearch engines are used by customers who are looking for a travel agency to work with. Both GDS and metasearch engines use APIs (Application Programming Interfaces) to aggregate the data they display. 

Choosing the right CRM and technology tools isn’t just about keeping up; it’s about staying ahead. These systems help you automate tasks, better understand your customers, and provide excellent service, making your travel agency more efficient and customer-friendly.

Step 8: Focus on customer retention and loyalty programs

To build a successful business, you must adopt customer retention strategies. It can cost five times as much to acquire a new customer as keeping an old one. A 5% improvement in client retention can boost profitability from 25% to 95%. Considering these facts, you must focus on keeping customers satisfied through impeccable service delivery and personalized loyalty programs. Loyalty programs are designed to incentivize repeated purchases. This could be in the form of a reward, a discount, or other special incentives.

Let’s look at some other strategies you can employ for customer retention and loyalty programs:

#1. Personalized incentives through email marketing

One approach to loyalty programs involves using email marketing to offer personalized incentives to customers. For example, you can set up a drip email campaign with rewards based on the particular service the customer paid for, the customer’s birthday, or any other important dates in their lives such as a wedding anniversary. 

When strategically planned, these campaigns can prompt customers to pay for your services. Another strategy is to offer time-bound offers that create the fear of missing out.

Finally, you can incentivize referrals by offering satisfied customers special bonuses when their family and friends use your service. Customers who are happy with your services are more likely to refer your services to their friends, and offering an incentive encourages them to do this faster.

#2. CRM integration

Using customer relationship management (CRM) software can enhance customer loyalty. CRMs are powerful, and you can utilize them to tackle the problem of personalization. How?

With a CRM, you can collect and analyze travel preferences, social media behavior, and past bookings. Understanding your customers’ patterns helps a lot. CRM also allows you to tailor make your offers presentable, ensuring that you retain your customers.

#3. Offer useful resources

Everyone who goes to a party stays at the party until they feel there’s nothing more to enjoy; that’s when they take their leave. The same goes for travel agencies. Customers can easily switch whenever they feel like you’re not offering enough.

Offering travel services is not enough. People need value, and you can retain your customers by providing insights that help them get the most out of their trips.

You can organize events where you share insights on how your customers can plan their travel well. If you have an online presence, such as a blog or website, you can create content to educate your customers with unique travel tips. This helps you engage your clients.

#4. Create a sense of exclusivity

Becoming an independent travel agent offers significant benefits and autonomy. It allows you to manage your own business with the freedom to set your own schedule and choose your level of engagement. Giving your customers what they can not get anywhere else increases how they perceive your agency and improves their loyalty.

Partnering with other brands in the travel sector is an excellent way to create a sense of exclusivity.

Customers will tell their friends and colleagues about their experience with an agency during a journey. Agencies offer exclusive deals like room upgrades and special tour rates to ensure that what they say is good. This will help you keep your existing clients and also attract potential clients to your agency.

Bonus step: Build customer service skills

To wrap up, exceptional customer service skills are the cornerstone of a successful travel agency. When you start your travel agency, strive to excel in communication, understand client’s needs and preferences, and provide personalized recommendations.

In addition to customer service, you must possess sound organizational and time management skills—the ability to juggle multiple bookings, manage requests simultaneously, and meet tight deadlines. This is where a CRM tool comes in.

Read also: Rejuvenate Your Spa Marketing With These 15 Proven Strategies

Examples of Travel Agencies That Made News

Let’s look at some examples of travel agencies and what we can learn from them.

Successful travel agencies and their strategies

It is essential to explore the inspiring stories of travel agencies that have thrived in the industry. Discover their innovative strategies, customer-centric approaches, and unique value propositions that set them apart.

For example, consider Wanderlust, a UK-based travel agency specializing in eco-friendly and sustainable travel.

They’ve successfully positioned themselves as a go-to choice for environmentally conscious travelers, offering curated trips that minimize their impact on the planet.

Lessons from failed travel agencies

We all learn from successes and setbacks, and the world of travel agencies is no exception.

From failed ventures like RoomsTonite and Hotels Around You, we see that funding and proper business planning are essential to keep a business alive and thriving.

By examining the experiences of failed travel agencies, we can gain valuable lessons to avoid similar pitfalls.

Essential Skills and Traits for Running a Travel Agency

Here are the essential skills and traits you need to run a travel agency.

Importance of customer service skills

Impeccable customer service skills are a cornerstone of the travel agency industry. Building strong relationships with clients, listening to their needs, and providing personalized assistance are essential.

Going above and beyond to exceed their expectations can lead to repeat business and positive word-of-mouth recommendations.

For example, imagine a travel agent who takes the time to understand a client’s preferences and surprises them with a personalized itinerary, including their favorite activities and special surprises.

Understanding of logistics and planning

A solid understanding of logistics and planning is another key skill. Coordinating complex travel arrangements, such as flights, accommodations, transfers, and tours, requires meticulous attention.

A travel agent with expertise in logistics can effortlessly navigate the intricacies of itineraries, ensuring seamless and hassle-free travel experiences for their clients.

Knowledge of destinations and travel arrangements

In-depth knowledge of destinations and travel arrangements is a must to become a successful travel agent. This includes being well-informed about popular attractions, local customs, visa requirements, and transportation options.

This expertise enables agents to provide valuable insights and recommendations tailored to their client’s interests and preferences.

For example, picture a travel agent who shares insider tips about the best local cuisine and off-the-beaten-path attractions. This will enhance clients’ travel experiences.

Business management skills

Strong business management skills in travel agency business include financial management, marketing strategies, and operational efficiency.

Effective business management ensures the agency remains competitive, profitable, and adaptable to changing market trends.

Ability to adapt to changes in the industry

The travel landscape constantly evolves, with new technologies, travel trends, and global events impacting the industry. Travel agents who embrace innovation, stay updated on industry developments, and proactively adapt their strategies can stay ahead of the curve.

For example, a travel agent who quickly adapts to new digital platforms, such as virtual reality experiences or online booking systems, is highly likely to stay relevant in the industry.

Wrapping Up: Build a Travel Agency With a Lasting Impact

In this article, we have explored the essential steps, skills, and strategies required to embark on this rewarding journey.

Starting a travel agency can be fulfilling and lucrative for those with a passion for travel, a knack for customer service, and strong business acumen. You can build a thriving travel agency with passion, dedication, and a customer-centric approach.

If you need a one-stop solution for marketing, CRM, and customer support for your travel agency, try the very affordable and highly-rated EngageBay. It’s got thousands of happy users, including travel agencies. 

Content updated for freshness and SEO by Okereke Daniella and Swastik Sahu.