Welcome to this blog, You will learn about what are the requirements for setting up a travel agency and various sources of income for a travel agency, in detail. so stay tuned to this blog.
Setting up a travel agency and Sources of income for the travel agency
Requirements of a Travel Agency
For starting up a travel agency, there are some requirements as follows:-
- Research – Before starting up a travel agency you need to research the travel and tourism industry and decide in what niche or specification you have to deal with, and how big this market is, You have to analyze your competitors and see the future growth that demand will increase or decrease. You need to create a business plan, write down your business plan, and set your goals and targets.
- Capital is the most necessary and important thing that you need for setting up a travel agency. You can also say that capital is the main ingredient for setting up a travel agency.
- License – The owner should register himself either as a Sole Proprietorship which means individual he is the owner and alone he will handle and look after the business or a Partnership which means he will run the business with any of the second people and both will handle and look after the business, so they should have the proper license to run the business legally and appropriately. Other important licenses can include licenses from airlines, hotels, cruise, DMC, passport office, reserve Bank of India, etc. And they should also proper recognition from the Ministry of Tourism and the India Tourism Office.
- Office setup and Location – for setting up a travel agency the owner has to choose a good location for the office setup from where the employees can join and customers can come for their booking. Before choosing the location one thing has to be kept in mind the infrastructure structure should be good and accessible so the employees and customers can easily contact and connect and reach the office it would be comfortable for them.
- Approval from the concerned organization – A travel agency should be legally approved by the government and concerned organization. For example – IATA, ITDC, TAAI, etc. Even approval from a concerned organization creates trust in people as in today’s world there are a lot of scammers who are making their fake agencies and fooling the customers.
- Hiring and training- The owner of a travel agency also has to hire selected candidates to work in his company. The job roles include – ticketing department, travel consultant, visa department, insurance, office work, sales team, MICE, etc. He also has to provide training so that they are clear about their work and even doubts are cleared so that they can perform well.
- Marketing and Branding- To promote the tourism product marketing and branding are very important. To reach a wide range of audiences there are various sources like social media, content marketing, website, Twitter, app development, email marketing, influencer, and collaboration.
- Customer Service – It is important to give good customer service to provide satisfaction to the customer. Likewise, If there is any problem related to any service and you are not responding or are not able to find the conclusion then you might lose the customer and his trust, so customer service also plays an important role.
Here are some equipment that you need in the office:-
- Computer/laptops
- Furniture
- Telephone
- Fax machines
- Printer
- Office stationery
- Internet connection
- Maps
- Travel Brochures
- Catalogs
- Visiting card
- Cameras
Sources of Income for a travel agency
Airlines – Travel agencies do earn commissions from airlines. For example, when an agency gets a booking of MICE tourism, lots of people travel and their flight has to be booked and then the agency gives this business to airlines and earns huge commissions from them.
Hotels – The travel agency provides accommodation service to the client and to provide this service, As it has many tie-ups with the hotels and gives bookings to the client and earns commission from them and even from the client as well.
Tour package – A travel agency offers a complete tour package to his client or makes a tour package according to his needs and budget. And while he makes tour packages for the client he adds certain markup and then offers to the client.
Service – Travel agencies do take charges for giving additional services to the client which might include pickup and drop from the airport, guides, escorts, or any other miscellaneous services.
Visa and Travel Insurance – If there a only specific requirements for visa and travel insurance then the agency asks the Client to submit the necessary documents and asks him to fill out the forms and then the travel agency has ties up with various DMcs and organizations and ask them for visa and travel insurance and this service they ask charges from the client.
Affiliate Marketing – Nowadays various websites give commissions on promoting and selling travel and tourism-related products. So travel agency promotes those products to its target audience and earns commission from them. This is the newest and trendiest method in which agencies earn lots of commission.
Advantages and Disadvantages
| S.no | Advantages | Disadvantages |
| 1. | Profitable business | High Competition |
| 2. | Flexibility | Liability and Responsibility |
| 3. | Multiple income streams | Commission-Based Model |
| 4. | Knowledge and expertise | Seasonal Income |
| 5. | creation beautiful travel memories | High Operating Costs |
Steps to start a travel agency business from home
- Research about the travel and tourism industry.
- Specialize and decide in which segment you want to deal with MICE, adventure travel, cruise, etc.
- Develop a business plan
- Make sure to properly register and licensed
- Choose a business name and logo
- Build tourism connections with travel suppliers, DMCs, wholesalers, hotels, cruise, airlines, etc.
- Create and design your travel website
- Develop online booking capabilities
- Do Tourism Marketing
- Take the help of new technologies and social media
- Provide exceptional customer service
- Stay updated with the tourism industry
- Take some necessary certifications like IATA, CTA, ACC, etc.
- And last but not least give your 100% to your travel business with full hard work and dedication.
You may like this:-
| S.no | Topics (click on this link) |
| 1. | Significance of tourism |
| 2. | Steps to start a travel agency business from home |
| 3. | 5 Characteristics of Tourism Products |
| 4. | What is tourism and types of tourism |
| 5. | What is a travel agency and what types of travel agency |
FAQs
How can a person be successful in travel agency business?
A person be successful in travel agency business may depend on various factors such as niche selection, experience, marketing, branding, networking, and customer service.
What is the travel agency start-up cost?
Travel agency start-up costs will be around 5 lacks to 10 lacks.
Is there any profit in a travel agency ?
Yes, there is profit in a travel agency, as usually, a travel agency makes a profit margin of around 80%.
Who is the richest travel company?
According to the recent updates Booking com is the richest travel company
Conclusion
This post is all about setting up a travel agency and what the requirements needed. Setting up a travel agency is key to promoting the tourism industry. While setting up a travel agency proper planning should be done and some considerations should be executed properly such as proper legal registration, approval from the government, tie-up with tourism vendors and DMCs, good networking, and excellent customer service to the customer. So if you are planning to start a travel agency business then must go through this blog as it will provide you with all the information which are required for setting up a travel agency.