HOW TO ESTABLISH A TRAVEL AGENCY?

Are you good at public dealing and negotiating? Are your problem-solving and research skills strong? Do you have a knack for traveling? If you have been answering positively, chances are great for you to become a successful travel agent or to start your own business.

Although it is said that the travel agency business is over, the statistics have been stating quite the opposite of that. The travel agency industry in the United States of America alone is an 18 Billion dollar revenue company. The profits have been surging since the last decade without a pitfall. According to a survey conducted in 2016 which comprised about 1200 travel agents, stated that about 78 % of their revenues are generated through commission and about 22% through service fees. No doubt there is a lot of scope for travel agencies but digital travel is a 200 Billion dollar industry, so you can well imagine the weight of competition.

Starting a travel agency would not cost you a lot of money compared to other start-ups. Also, your profits will be entirely yours as this venture can go ahead with a limited upfront cost and lesser staff. Just like any other industry, this field too has a fierce competition not only with your local travel agencies but also with the online big shots who have marked their territory through online travel packages and booking sites. Not only you have to work smart, but you also put extra effort when doing your market research and make your marketing and branding unique.

To set up a successful travel agent business you need to know your target market, their budget, their requirements, and expectations. The following basic steps will guide you through the entire process of starting your business venture and making your travel agency a success.

1. Research and Plan effectively

When it comes to setting up companies, the first step is to make a plan, which is only possible through good research. One should be aware of the current trends in the market. Know your target audience. Find your niche in this industry, aim at a position in the market. You would be surprised to know about the statistics on travel and tourism. The bigger company goals can be set only post-research, market analysis, and sales strategies.

2. Focus on funding and legal help.

This shouldn’t come as a surprise. You must acquire the required funds. In fact, some more for back up. Setting up a business requires a lot of energy and money. You need it for online and offline marketing, hiring staff, promotion, etc. More importantly, you should fulfill all the required legal formalities. Applying for a Federal Tax ID number a license is usually easy for a travel agent in the US but definitely after a quick research on the laws for travel agencies in your state.

3. Effective Branding exercise

This helps you in making your name in the industry. This is how the public and your competitors are going to perceive your company. The name should sell what you are promising to your clients. Get an impressive logo designed. Business cards and brochures need to be designed and printed as well. A brand message will help you prove to your clients about your uniqueness.

4. Social media promotion

It’s no more the 20th century where pamphlets and leaflets will do all the advertising. You need to be popular in the public eye by being a part of social media and actively participate. This is a great way to attract potential clients.

5. Pick the right location

Choosing an apt location will definitely bring you a lot of business. A little research will broaden the chances of your popularity. According to statistics, people aged 33–45 make use of travel agencies the most. You can dig a little deeper and choose your preferred location.

If you are aiming to become a travel agent and you consider yourself to be an ardent traveler and a wanderer, do not place your bets according to that assumption alone. You might have immense knowledge about the world and about your state, this might give you an extra edge over the other travel agents but won’t make you a mogul in the industry instantly. Follow the steps, using the right branding and marketing techniques. Keep working on your sales strategies with your team and things will work your way.