So you think you want to open a Travel Agency? What you need to know first

So You Think You Want to Open a Travel Agency?

The Financial Reality of Starting from Scratch

There’s a reason you keep hearing people talk about becoming a travel agent. It looks like the dream. Flexible hours, destination perks, your own business, and clients who love to book with you. And on the surface, it seems simple enough. Choose a name, get a logo, sign up with a host agency, start selling.

But if you’ve ever run a business before, or even just managed your own household budget, you know that’s not the full picture. Starting a travel agency takes more than passion. It takes strategy, structure, and a very real financial plan.

At Antravia, we work with travel agents who want to make this a career, not just a hobby. If you’re thinking about starting your own agency, here’s what you need to know before you leap.

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You Will Spend Before You Earn

Let’s start with the simple truth. You will need to spend money well before you make any. Whether you’re joining a host agency or going fully independent, expect to pay out for:

• Website and email setup

• Booking system or CRM

• Liability insurance or E&O insurance (if required in your country)

• Business registration fees

• Marketing software, Canva Pro, or similar tools

• Training, certifications, or trade memberships

• A decent laptop and backup drive

• Possibly your own FAM trip if you want first-hand experience

For most serious travel advisors, the first-year outlay is somewhere between $1,000 and $5,000. That depends on your market, your host agency structure, and how fast you want to grow. But it’s very rare that you can set up properly for free. Anyone telling you otherwise probably hasn’t done it seriously.

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Host Agencies Are Not Free

Many new agents think choosing a host agency will remove the need to plan financially. That’s not quite true. While a host agency can handle licensing, accreditation, and sometimes training, they usually take a percentage of your commission. Some hosts charge a flat fee per month. Others keep a portion of each sale.

If your split is 70/30, that means you’re only earning 70 percent of the commission. If the client books a $5,000 trip with 10 percent commission, that’s $500 in total. On a 70/30 split, you take home $350. And that’s before payment processor fees, FX losses, or client refund risk.

You also need to ask:

• Are you allowed to keep commission on supplier bonuses or overrides?

• Do you need to hit a sales target to keep your split?

• Will you lose your split if you don’t meet volume thresholds?

This matters more than people realise. One poorly structured host contract can cost you thousands over the course of a year.

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You Need a Financial Buffer

Even if you start selling on day one, you may not get paid until months later. Most suppliers only pay after the client travels. That means you could make a sale in January and not receive commission until April, May, or even later.

If you’re planning to make this your full-time job, you need to factor in that delay. You’ll need cash flow to cover your expenses in the meantime. This includes your own living costs, especially if you’re leaving a salaried job to start your agency.

We recommend having three to six months of living expenses saved, plus a separate amount earmarked for business costs. If you’re not sure how to calculate that, we can help you map it out.

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You Will Spend Hours on Admin and Learning

Running a travel business involves far more than just choosing destinations. You’ll need to track invoices, set up bank accounts, file taxes, update supplier terms, and respond to clients in every time zone.

You’ll also need to stay current with visa changes, airline policies, cruise commission terms, loyalty program changes, and supplier booking portals. All of that is unpaid time unless you treat it as part of your business operations.

It’s also worth considering how you’ll manage:

• Payment systems

• Client deposits

• Refund requests

• Chargebacks

• Supplier disputes

• Travel insurance questions

• Post-sale support if something goes wrong mid-trip

If you don’t have a clear way to handle these, your time will get swallowed up fast.

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You Need a Business Structure and a Tax Plan

If you’re serious about growing a travel agency, you need to treat it like a real business. That means registering properly, tracking income and expenses, and preparing for tax.

Depending on your country, you may want to:

• Register as a sole proprietor or LLC - see our blog on this here

• Get a business bank account and payment gateway

• Register for VAT or sales tax if you cross thresholds

• Separate business and personal expenses

• Keep receipts, invoices, and booking confirmations for tax purposes

The rules change depending on where you live and where your clients are. For example, U.S.-based agents selling to international clients may have state-level tax exposure. Agents in Europe may need to register for TOMS or VAT schemes. If you’re selling in multiple currencies, FX accounting becomes a real consideration.

At Antravia, we help new agents get this right from the start. The earlier you do it, the easier it is to scale.

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You Must Choose a Niche With Your Head, Not Just Your Heart

Many agents start by focusing on what they personally love — Disney, Europe, honeymoons, cruises. That’s fine, but the best agents choose their niche based on what they can sell well and scale.

Ask yourself:

• Are there enough suppliers who pay commission in this space?

• Do I have access to product inventory and training?

• Can I build a referral base or partnership network?

• Does this niche offer repeat business or high ticket value?

If the answer is no, you might enjoy the bookings, but you won’t build a viable business.

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Final Word

Becoming a travel agent can be deeply rewarding, but it’s not easy. It takes structure, cash flow planning, product knowledge, and more than a few spreadsheets. If you treat it like a real business from day one, you’ll give yourself a real chance of success.

At Antravia, we specialize in helping agents set up strong foundations. If you’re serious about turning your passion for travel into a long-term business, we’d love to help you do it the right way.

👉 Contact Antravia