Travel Agent Finance Guide 2025: 3.4 Planning for Growth and scaling smartly

Part 3: Managing Money, Margins, and Growth in a Travel Business

3.1: Pricing Strategy and Profit Margins

• Why markup and commission are not the same

• Fee structures that work - planning, consultation, retainer, concierge

• How to price packages without undercutting your value

• Understanding COGS (cost of goods sold) in travel

• Examples of margin erosion: last-minute discounts, supplier rate changes

• Case examples: agents losing money on high-volume, low-margin bookings
  
  
  

3.2: Tracking Profitability and Business Health

• Net profit vs. gross commission and what actually matters

• How to calculate breakeven per month and per trip

• Why it’s dangerous to focus only on top-line sales

• KPIs that matter: average sale value, repeat booking rate, commission mix

• Monthly reporting rhythm: what agents should be reviewing

• How to catch cash flow issues before they snowball

3.3: Managing Client Money and Protecting Your Business

• Rules around client trust accounts (where required)

• Best practices for deposits, refunds, and cancellations

• What happens if a supplier collapses mid-trip

• Chargeback risks and dispute prevention

• Insurance: business interruption, cyber, professional liability

• Why you need clear written terms, and what to include

3.4: Planning for Growth and Scaling Smartly

• When to raise prices, and how to do it without losing clients

• Hiring: VAs, ICs, or full-time staff with financial implications

• Systems to scale: CRMs, payment links, workflow automation

• Growth traps: chasing volume instead of profitability

• Legal and financial issues when growing across states or markets

• How to build a business that can weather seasonality and economic shifts
  

Part 3.4 Planning for Growth and Scaling Smartly

(This section focuses on the structural and operational side of scaling your agency, such as pricing, staffing, systems, and compliance. Forecasting and financial modeling for growth are covered separately in Part 4.1)

References for Part 3.4 Managing Client Money and Protecting Your Business

Acknowledgements

Antravia would like to thank our consulting clients and industry partners who generously shared their time, insights, and real-world case studies. All client examples have been anonymized and edited for clarity, but they are based on true advisory engagements and reflect real decisions, challenges, and financial outcomes from across the travel industry.