tour and travel agency business plans

Travel Agency Business Plan Template

Written by Dave Lavinsky

Travel Agency Business Plan

You’ve come to the right place to create your Travel Agency business plan.

We have helped over 10,000 entrepreneurs and business owners create business plans and many have used them to start or grow their travel agencies.

Below is a template to help you create each section of your Travel Agency business plan.

Executive Summary

Business overview.

My Itinerary Travel Agency is a new travel agency located in Boca Raton, Florida. The company is founded by Sandra Rodriguez, an experienced travel agent who has gained valuable knowledge on how to run a travel agency during the past ten years while working at Fun Destinations Travel Agency. Now that Sandra has experienced managing a travel agency, she is ready to start her own company, My Itinerary Travel Agency. Sandra is confident that her organizational and communication skills, combined with her understanding of business management, will enable her to run a profitable travel agency of her own. Sandra is recruiting a team of highly qualified professionals to help manage the day-to-day complexities of running a travel agency – sales and marketing, vendor relationships, customer relationship management, budgeting, and financial reporting.

My Itinerary Travel Agency will provide a full suite of travel planning services for individuals nationwide through its sophisticated online platform and accompanying customer app. My Itinerary Travel Agency will be the go-to travel agency for personalized service, convenience, and expertise of its travel agents. The company will be the ultimate choice for customer service while offering the best travel accommodations available.

Product Offering

The following are the services that My Itinerary Travel Agency will provide:

• Airline travel bookings
• Tour and travel package sales
• Accommodation reservations and bookings
• Cruise bookings
• Car rental reservations
• Travel ticket sales and reservations
• Tour ticket sales and reservations

Customer Focus

My Itinerary Travel Agency will target individuals nationwide who are looking for personalized and convenient travel planning services. The company will target vacationers, tourists, and business travelers who are seeking the best deals on premium accommodations. No matter the customer, My Itinerary Travel Agency will deliver the best communication, service, and the best prices.

Management Team

My Itinerary Travel Agency will be owned and operated by Sandra Rodriguez. Sandra is a graduate of Florida University with a degree in business. She has over ten years of experience working as a travel agent for another local agency. Sandra will be the company’s chief executive officer. She will oversee the travel agency staff, manage customer relationships, and build vendor relationships.

Sandra has recruited sales and marketing expert, Sara Anderson, to be the company’s chief marketing officer and help oversee travel agency’s sales and marketing activities. Sara will handle all branding, marketing, advertising, and outreach for the company. She will also create and maintain the company’s online and social media presence. Sara has a Master’s degree in Marketing and has nearly ten years of experience working as a marketing director for a leading travel industry corporation.

Success Factors

My Itinerary Travel Agency will be able to achieve success by offering the following competitive advantages:

• Skilled team of travel agents combined with the latest technology in the industry will allow the company to provide its clients with personalized service and modern convenience to make planning their trip easy and efficient.
• The members of the leadership team have long standing relationships with a large pool of vendors, allowing them to provide clients with the best deals possible on premium accommodations.
• The company offers a variety of modes of communication to better serve more clients’ preferences. Customers can speak with a travel agent in person, via telephone, video call, email, or chat through the website or app. Support is available 24/7 to ensure all clients’ questions and concerns are promptly attended to.

Financial Highlights

My Itinerary Travel Agency is seeking $290,000 in debt financing to launch its travel agency. The funding will be dedicated towards securing the office space, and purchasing office equipment and supplies. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff and marketing expenses. The breakout of the funding is below:

• Office build-out: $110,000
• Office equipment, supplies, and materials: $70,000
• Three months of overhead expenses (payroll, utilities): $90,000
• Marketing costs: $10,000
• Working capital: $10,000

The following graph below outlines the pro forma financial projections for My Itinerary Travel Agency.

Company Overview

Who is my itinerary travel agency.

My Itinerary Travel Agency is a newly established travel agency in Boca Raton, Florida. My Itinerary Travel Agency will be the first choice for anyone seeking a personalized approach, 24/7 support, and streamlined technology to make trip planning easy. The company will serve customers nationwide from their headquarters in Florida.

My Itinerary Travel Agency will be able to guarantee the best deals possible thanks to the leadership team members’ long standing relationships with a large network of vendors in the hospitality, transportation, and entertainment markets. The company’s team of highly qualified travel agents will provide personalized service to each client, removing the uncertainty and hassles associated with finding and booking the right accommodations.

My Itinerary Travel Agency History

My Itinerary Travel Agency is owned and operated by Sandra Rodriguez, an experienced travel agent who has gained valuable knowledge on how to run a travel agency during the past ten years while working at Fun Destinations Travel Agency. Now that Sandra has experienced managing a travel agency, she is ready to start her own company, My Itinerary Travel Agency. Sandra is confident that her organizational and communication skills, combined with her understanding of business management, will enable her to run a profitable travel agency of her own. Sandra is recruiting a team of highly qualified professionals to help manage the day-to-day complexities of running a travel agency – sales and marketing, vendor relationships, customer relationship management, budgeting, and financial reporting.

Since incorporation, My Itinerary Travel Agency has achieved the following milestones:

• Registered My Itinerary Travel Agency, LLC to transact business in the state of Florida
• Has identified the ideal location for the company’s office and is in the process of securing a lease
• Reached out to numerous contacts to include transportation, hospitality, and entertainment companies to begin securing vendor contracts
• Began recruiting a staff of accountants, travel agents, and other office personnel to work at My Itinerary Travel Agency

My Itinerary Travel Agency Services

• Airline travel comparisons and bookings

Industry Analysis

The U.S. travel agency industry is valued at $48.5B with more than 90,600 businesses in operation and over 318,600 employees nationwide. Factors currently driving industry growth include an increase in domestic tourism and travel for overnight trips, vacations, and business purposes. More domestic travel typically results in more consumers using travel agencies to book their trips. The travel agency industry can be segmented by brick-and-mortar establishments or online businesses. The global market size for the online travel agency segment reached $432B last year and is expected to rise as more people use the internet to book their trips. The travel agency industry relies heavily on the use of technology. Industry operators must stay up-to-date on the latest travel technology in order to remain competitive in the market.

One of the most significant hurdles for travel agency operators is attracting customers in the age of do-it-yourself booking. Now that customers are able to book many of their travel accommodations themselves, travel agents must be able to demonstrate why booking with them is a better option. Some ways industry operators can add value are by providing personalized services, promotional discounts, and helpful information about accommodation options.

Customer Analysis

Demographic profile of target market.

My Itinerary Travel Agency will target individuals nationwide who are looking for personalized and convenient travel planning services. The company will target vacationers, tourists, and business travelers who are seeking the best deals on premium accommodations. No matter the customer, My Itinerary Travel Agency will deliver professional communication, service, and the best prices.

The precise demographics for Boca Raton, Florida are:

Customer Segmentation

My Itinerary Travel Agency will primarily target the following customer profiles:

• Individuals and families planning a vacation
• Business travelers
• Individuals and families in need of accommodations for events such as weddings, reunions, or conventions

Competitive Analysis

Direct and indirect competitors.

My Itinerary Travel Agency will face competition from other companies with similar business profiles. A description of each competitor company is below.

Fun Destinations Travel Agency

Fun Destinations Travel Agency is one of the largest and oldest travel agencies in Florida. The company was founded in 1958 in Boca Raton with one small office location. Now, the company has over 50 locations throughout multiple states. Fun Destinations specializes in booking accommodations for family vacationers. The company books accommodations near key family destinations such as theme parks, resorts, and tourist attractions. Fun Destinations is family owned and operated so the founders are familiar with the hassles associated with planning a family vacation. For this reason, Fun Destinations focuses on booking the best family-friendly accommodations so its clients can relax and enjoy the family fun.

Best Fit Vacations Travel Agency

Best Fit Vacations Travel Agency is a small travel agency catering to Boca Raton locals from its central office and nationwide clients via its online booking platform. The company was established in 1995 with the mission of providing vacation accommodations that will be “the best fit” for every client. Best Fit Vacations is owned and operated by industry professionals that have extensive experience working with vendors to negotiate the best deals for clients. The company strives to get the lowest prices for every booking and regularly finds additional savings and discounts other agencies might not know about.

Trustworthy Travel Agency

Trustworthy Travel Agency is a Boca Raton, Florida-based travel agency that provides superior service to its consumers. The company is able to provide a wide variety of travel accommodation bookings for customers in the area. Trustworthy Travel Agency has three locations throughout the state and operates an online booking platform for nationwide travelers. Customers can book online or over the phone at their convenience. The company uses an algorithm that finds the lowest prices on travel, lodging, and other accommodations across the country.

Competitive Advantage

My Itinerary Travel Agency will be able to offer the following advantages over their competition:

Marketing Plan

Brand & value proposition.

My Itinerary Travel Agency will offer the unique value proposition to its clientele:

• My Itinerary Travel Agency offers the best deals through its extensive vendor network.
• The company offers personalized customer service, a variety of communication modes, and 24/7 support.

Promotions Strategy

The promotions strategy for My Itinerary Travel Agency is as follows:

Social Media Marketing

The company’s chief marketing officer will create accounts on social media platforms such as LinkedIn, Twitter, Instagram, Facebook, TikTok, and YouTube. She will ensure My Itinerary Travel Agency maintains an active social media presence with regular updates and fun content to get customers excited about traveling.

Professional Associations and Networking

My Itinerary Travel Agency will become a member of professional associations such as the Travel Agency Association, American Travel Agents Society, and the Florida Travel Industry Association. The leadership team will focus their networking efforts on expanding the company’s vendor network.

Print Advertising

My Itinerary Travel Agency will invest in professionally designed print ads to display in programs or flyers at industry networking events. The company will also invest in professional ads to place in travel magazines and local publications.

Website/SEO Marketing

My Itinerary Travel Agency’s chief marketing officer will design the company website. The website will be well organized, informative, and list all the services that My Itinerary Travel Agency is able to provide. The website will also list testimonials from happy customers.

The chief marketing officer will also manage My Itinerary Travel Agency’s website presence with SEO marketing tactics so that when someone types in a search engine “best travel agency” or “travel agency near me”, My Itinerary Travel Agency will be listed at the top of the search results.

The pricing of My Itinerary Travel Agency will be on par with (and often lower than) competitors so customers feel they receive value when purchasing the company’s services.

Operations Plan

The following will be the operations plan for My Itinerary Travel Agency.

Operation Functions:

• Sandra Rodriguez will be the chief executive officer for the company. She will oversee the travel agents, vendor relationships, and customer relations. Sandra has spent the past year recruiting the following staff:
• Sara Anderson – chief marketing officer who will oversee all marketing strategies for the company and manage the website, social media, and outreach
• Tom Brown – accountant who will provide all accounting, tax payments, and monthly financial reporting for the company
• Christopher Jones – lead customer support manager who will directly oversee all customer support activities

Milestones:

My Itinerary Travel Agency will have the following milestones complete in the next six months.

12/1/2022 – Finalize contract to lease the office

12/15/2022 – Finalize personnel and staff employment contracts for the My Itinerary Travel Agency management team

1/1/2023 – Begin build-out/renovation of the office, and purchase office equipment and supplies

1/15/2023 – Begin networking at industry events and implement the marketing plan

2/15/2023 – Finalize contracts for initial vendors

3/15/2023 – My Itinerary Travel Agency officially opens for business

Financial Plan Business Plan FAQs

Key revenue & costs.

The revenue drivers for My Itinerary Travel Agency are the commissions earned as a percentage of bookings from vendors and fees charged to customers for consultations and services.

The cost drivers will be the overhead costs required in order to staff a travel agency firm. The expenses will be the payroll cost, utilities, greenhouse equipment and supplies, and marketing materials.

Funding Requirements and Use of Funds

Key assumptions.

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

• Average accommodations booked per month: 9,000
• Average commissions per month: $15,000
• Overhead costs per year: $640,000

Financial Projections

Income statement, balance sheet, cash flow statement, what is a travel agency business plan.

A travel agency business plan is a plan to start and/or grow your travel agency business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your travel agency business plan using our travel agency Business Plan Template here .

What are the Main Types of Travel Agencies?

There are a number of different kinds of travel agencies , some examples include: independent agency, host agency or franchise.

How Do You Get Funding for Your Travel Agent Business Plan?

Travel agencies are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.  This is true for a travel agent business plan and a tour and travel business plan.

What are the Steps To Start a Travel Agency Business?

Starting a travel agency business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Travel Agent Business Plan - The first step in starting a business is to create a detailed business plan for your travel agency  that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.  

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your travel agency business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your travel agency business is in compliance with local laws.

3. Register Your Travel Agency Business - Once you have chosen a legal structure, the next step is to register your travel agency business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options - It’s likely that you’ll need some capital to start your travel agency business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Travel Agency Equipment & Supplies - In order to start your travel agency business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your travel agency business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful travel agency business:

• How to Start a Travel Agency Business

How to write a business plan for a travel agency?

Writing a business plan for a travel agency can be an intimidating task, especially for those just starting.

This in-depth guide is designed to help entrepreneurs like you understand how to create a comprehensive business plan so that you can approach the exercise with method and confidence.

We'll cover: why writing a travel agency business plan is so important - both when starting up, and when running and growing the business - what information you need to include in your plan, how it should be structured, and what tools you can use to get the job done efficiently.

Let's get started!

In this guide:

Why write a business plan for a travel agency?

• What information is needed to create a business plan for a travel agency?
• What goes in the financial forecast for a travel agency?
• What goes in the written part of a travel agency business plan?
• What tool can I use to write my travel agency business plan?

Having a clear understanding of why you want to write a business plan for your travel agency will make it simpler for you to grasp the rationale behind its structure and content. So before delving into the plan's actual details, let's take a moment to remind ourselves of the primary reasons why you'd want to create a travel agency business plan.

To have a clear roadmap to grow the business

It's rarely business as usual for small businesses. The economy follows cycles where years of growth are followed by recessions, and the business environment is always changing with new technologies, new regulations, new competitors, and new consumer behaviours appearing all the time...

In this context, running a business without a clear roadmap is like driving blindfolded: it's dangerous at best. That's why writing a business plan for a travel agency is essential to create successful and sustainable businesses.

To write an effective business plan, you will need to take stock of where you are (if you are already in business) and where you want the business to go in the next three to five years.

Once you know where you want your travel agency to be, you'll have to identify:

• what resources (human, equipment, and capital) are needed to get there,
• at what pace the business needs to progress to get there in time,
• and what risks you'll face along the way.

Going through this process regularly is beneficial, both for startups and existing companies, as it helps make informed decisions about how best to allocate resources to ensure the long-term success of the business.

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To get visibility on future cash flows

If your small travel agency runs out of cash: it's game over. That's why we often say "cash is king", and it's crucial to have a clear view of your travel agency's future cash flows.

So, how can you achieve this? It's simple - you need to have an up-to-date financial forecast.

The good news is that your travel agency business plan already includes a financial forecast (which we'll discuss further in this guide). Your task is to ensure it stays current.

To accomplish this, it's essential to regularly compare your actual financial performance with what was planned in your financial forecast. Based on your business's current trajectory, you can make adjustments to the forecast.

By diligently monitoring your travel agency's financial health, you'll be able to spot potential financial issues, like unexpected cash shortfalls, early on and take corrective actions. Moreover, this practice will enable you to recognize and capitalize on growth opportunities, such as excess cash flow enabling you to expand to new locations.

To secure financing

Whether you are a startup or an existing business, writing a detailed travel agency business plan is essential when seeking financing from banks or investors.

This makes sense given what we've just seen: financiers want to ensure you have a clear roadmap and visibility on your future cash flows.

Banks will use the information included in the plan to assess your borrowing capacity (how much debt your business can support) and your ability to repay the loan before deciding whether they will extend credit to your business and on what terms.

Similarly, investors will review your plan carefully to assess if their investment can generate an attractive return on investment.

To do so, they will be looking for evidence that your travel agency has the potential for healthy growth, profitability, and cash flow generation over time.

Now that you understand why it is important to create a business plan for a travel agency, let's take a look at what information is needed to create one.

Need inspiration for your business plan?

The Business Plan Shop has dozens of business plan templates that you can use to get a clear idea of what a complete business plan looks like.

Information needed to create a business plan for a travel agency

Drafting a travel agency business plan requires research so that you can project sales, investments and cost accurately in your financial forecast, and convince the reader that there is a viable commercial opportunity to be seized.

Below, we'll focus on three critical pieces of information you should gather before starting to write your plan.

Carrying out market research for a travel agency

Carrying out market research before writing a business plan for a travel agency is essential to ensure that the financial projections are accurate and realistic.

Market research helps you gain insight into your target customer base, competitors, pricing strategies and other key factors which can have an impact on the commercial success of your business.

In particular, it is useful in forecasting revenue as it provides valuable data regarding potential customers’ spending habits and preferences.

You may discover that travelers are increasingly interested in seeking out cultural experiences on their trips, such as visiting local art galleries or participating in cooking classes. Additionally, you could find that there is a growing demand for eco-friendly travel options, such as accommodations that have taken steps to reduce their environmental footprint.

This information can then be used to create more accurate financial projections which will help investors make informed decisions about investing in your travel agency.

Developing the sales and marketing plan for a travel agency

Budgeting sales and marketing expenses is essential before creating a travel agency business plan.

A comprehensive sales and marketing plan should provide an accurate projection of what actions need to be implemented to acquire and retain customers, how many people are needed to carry out these initiatives, and how much needs to be spent on promotions, advertising, and other aspects.

This helps ensure that the right amount of resources is allocated to these activities in order to hit the sales and growth objectives forecasted in your business plan.

The staffing and equipment needs of a travel agency

Whether you are at the beginning stages of your travel agency or expanding its horizons, having a clear plan for recruitment and capital expenditures (investment in equipment and real estate) is vital to ensure your business's success.

To achieve this, both the recruitment and investment plans must align coherently with the projected timing and level of growth in your forecast. It is essential to secure appropriate funding for these plans.

A travel agency might incur staffing costs such as salaries for agents, administrative staff, and customer service representatives. They might also need to invest in equipment such as computers, printers, and other office machines. Additionally, they may need to pay for travel-related software licenses, websites, and advertising in order to effectively promote their business.

To create a financial forecast that accurately represents your business's outlook, remember to factor in other day-to-day operating expenses.

Now that you have all the necessary information, it's time to dive in and start creating your business plan and developing the financial forecast for your travel agency.

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What goes into your travel agency's financial forecast?

The financial forecast of your travel agency will enable you to assess the profitability potential of your business in the coming years and how much capital is required to fund the actions planned in the business plan.

The four key outputs of a financial forecast for a travel agency are:

• The profit and loss (P&L) statement ,
• The projected balance sheet ,
• The cash flow forecast ,
• And the sources and uses table .

Let's take a closer look at each of these.

The projected P&L statement

Your travel agency forecasted P&L statement enables the reader of your business plan to get an idea of how much revenue and profits your business is expected to make in the near future.

Ideally, your reader will want to see:

• Growth above the inflation level
• Expanding profit margins
• Positive net profit throughout the plan

Expectations for an established travel agency will of course be different than for a startup. Existing businesses which have reached their cruising altitude might have slower growth and higher margins than ventures just being started.

The forecasted balance sheet of your travel agency

The projected balance sheet of your travel agency will enable the reader of your business plan to assess the overall financial health of your business.

It shows three elements: assets, liabilities and equity:

• Assets: are productive resources owned by the business, such as equipment, cash, and accounts receivable (money owed by clients).
• Liabilities: are debts owed to creditors, lenders, and other entities, such as accounts payable (money owed to suppliers).
• Equity: includes the sums invested by the shareholders or business owners and the profits and losses accumulated by the business to date (which are called retained earnings). It is a proxy for the value of the owner's stake in the business.

Analysing your travel agency projected balance sheet provides an understanding of your travel agency's working capital structure, investment and financing policies.

In particular, the readers of your plan can compare the level of financial debt on the balance sheet to the equity value to measure the level of financial risk (equity doesn't need to be reimbursed, while financial debt must be repaid, making it riskier).

They can also use your balance sheet to assess your travel agency's liquidity and solvency:

• A liquidity analysis: focuses on whether or not your business has sufficient cash and short-term assets to cover its liabilities due in the next 12 months.
• A solvency analysis: takes and longer view to assess whether or not your business has the capacity to repay its debts over the medium-term.

The cash flow forecast

A projected cash flow statement for a travel agency is used to show how much cash the business is generating or consuming.

The cash flow forecast is usually organized by nature to show three key metrics:

• The operating cash flow: do the core business activities generate or consume cash?
• The investing cash flow: how much is the business investing in long-term assets (this is usually compared to the level of fixed assets on the balance sheet to assess whether the business is regularly maintaining and renewing its equipment)?
• The financing cash flow: is the business raising new financing or repaying financiers (debt repayment, dividends)?

As we discussed earlier, cash is king and keeping an eye on future cash flows an imperative for running a successful business. Therefore, you can expect the reader of your travel agency business plan to pay close attention to your cash flow forecast.

Also, note that it is customary to provide both yearly and monthly cash flow forecasts in a business plan - so that the reader can analyze seasonal variation and ensure the travel agency is appropriately funded.

The initial financing plan

The initial financing plan - also called a sources and uses table - is an important tool when starting a travel agency.

It shows where the money needed to set up the business will come from (sources) and how it will be allocated (uses).

Having this table helps understand what costs are involved in setting up the travel agency, how the risks are distributed between the shareholders and the lenders, and what will be the starting cash position (which needs to be sufficient to sustain operations until the business breaks even).

Now that the financial forecast of a travel agency business plan is understood, let's focus on what goes into the written part of the plan.

The written part of a travel agency business plan

The written part of the business plan is where you will explain what your business does and how it operates, what your target market is, whom you compete against, and what strategy you will put in place to seize the commercial opportunity you've identified.

Having this context is key for the reader to form a view on whether or not they believe that your plan is achievable and the numbers in your forecast realistic.

The written part of a travel agency business plan is composed of 7 main sections:

• The executive summary
• The presentation of the company
• The products and services
• The market analysis
• The strategy
• The operations
• The financial plan

Let's go through the content of each section in more detail!

1. The executive summary

The executive summary, the first section of your travel agency's business plan, serves as an inviting snapshot of your entire plan, leaving readers eager to know more about your business.

To compose an effective executive summary, start with a concise introduction of your business, covering its name, concept, location, history, and unique aspects. Share insights about the services or products you intend to offer and your target customer base.

Subsequently, provide an overview of your travel agency's addressable market, highlighting current trends and potential growth opportunities.

Then, present a summary of critical financial figures, such as projected revenues, profits, and cash flows.

You should then include a summary of your key financial figures such as projected revenues, profits, and cash flows.

Lastly, address any funding needs in the "ask" section of your executive summary.

2. The presentation of the company

As you build your travel agency business plan, the second section deserves attention as it delves into the structure and ownership, location, and management team of your company.

In the structure and ownership part, you'll provide valuable insights into the legal structure of the business, the identities of the owners, and their respective investments and ownership stakes. This level of transparency is vital, particularly if you're seeking financing, as it clarifies which legal entity will receive the funds and who holds the reins of the business.

Moving to the location part, you'll offer a comprehensive view of the company's premises and articulate why this specific location is strategic for the business, emphasizing factors like catchment area, accessibility, and nearby amenities.

When describing the location of your travel agency, you could focus on the potential reach of the agency. It could be situated in an area that is well-connected to other parts of the country, making it easy for customers to access. Additionally, the area could be in close proximity to many attractive tourist destinations, enticing customers to book trips to explore more of the area. Finally, the area could have a vibrant cultural scene, providing another draw to customers looking for unique experiences.

Lastly, you should introduce your esteemed management team. Provide a thorough explanation of each member's role, background, and extensive experience.

It's equally important to highlight any past successes the management team has achieved and underscore the duration they've been working together. This information will instil trust in potential lenders or investors, showcasing the strength and expertise of your leadership team and their ability to deliver the business plan.

3. The products and services section

The products and services section of your business plan should include a detailed description of the offerings that your company provides to its customers. 

For example, your travel agency might offer customers the ability to book a vacation package that includes flights, a hotel, and car rentals. It could also offer insurance to cover the cost of a trip in the event of an emergency or illness. Additionally, your agency could provide customers with personalized itineraries and detailed travel advice to ensure a successful and enjoyable vacation.

When drafting this section, you should be precise about the categories of products or services you sell, the types of customers you are targeting and how customers can buy them.

4. The market analysis

When presenting your market analysis in your travel agency business plan, you should detail the customers' demographics and segmentation, target market, competition, barriers to entry, and any regulations that may apply.

The goal of this section is to help the reader understand how big and attractive your market is, and demonstrate that you have a solid understanding of the industry.

You should start with the demographics and segmentation subsection, which gives an overview of the addressable market for your travel agency, the main trends in the marketplace, and introduces the different customer segments and their preferences in terms of purchasing habits and budgets.

The target market section should follow and zoom on the customer segments your travel agency is targeting, and explain how your products and services meet the specific needs of these customers.

For example, your target market might include young couples that desire luxurious experiences. They would be looking for a high-end experience that is tailored to their individual needs. They would be willing to pay a premium for the perfect vacation.

Then comes the competition subsection, where you should introduce your main competitors and explain what differentiates you from them.

Finally, you should finish your market analysis by giving an overview of the main regulations applicable to your travel agency.

5. The strategy section

When writing the strategy section of a business plan for your travel agency, it is essential to include information about your competitive edge, pricing strategy, sales & marketing plan, milestones, and risks and mitigants.

The competitive edge subsection should explain what sets your company apart from its competitors. This part is especially key if you are writing the business plan of a startup, as you have to make a name for yourself in the marketplace against established players.

The pricing strategy subsection should demonstrate how you intend to remain profitable while still offering competitive prices to your customers.

The sales & marketing plan should outline how you intend to reach out and acquire new customers, as well as retain existing ones with loyalty programs or special offers. 

The milestones subsection should outline what your company has achieved to date, and its main objectives for the years to come - along with dates so that everyone involved has clear expectations of when progress can be expected.

The risks and mitigants subsection should list the main risks that jeopardize the execution of your plan and explain what measures you have taken to minimize these. This is essential in order for investors or lenders to feel secure in investing in your venture.

1. Your travel agency could face risks from natural disasters. For example, an earthquake or hurricane could disrupt travel plans and cause financial losses. 2. Your travel agency might also face risks from changes in technology. For example, new travel booking sites and apps may lead to a decrease in customers booking through your agency.

6. The operations section

The operations of your travel agency must be presented in detail in your business plan.

The first thing you should cover in this section is your staffing team, the main roles, and the overall recruitment plan to support the growth expected in your business plan. You should also outline the qualifications and experience necessary to fulfil each role, and how you intend to recruit (using job boards, referrals, or headhunters).

You should then state the operating hours of your travel agency - so that the reader can check the adequacy of your staffing levels - and any plans for varying opening times during peak season. Additionally, the plan should include details on how you will handle customer queries outside of normal operating hours.

The next part of this section should focus on the key assets and IP required to operate your business. If you depend on any licenses or trademarks, physical structures (equipment or property) or lease agreements, these should all go in there.

You may have key assets such as customer information and booking records. This information contains important details such as customers' travel preferences, contact information, and credit card information. It could also include intellectual property such as the company's brand and logo, which may be used to market the company's services. Additionally, the company might have proprietary software that helps them manage bookings and customer relationships.

Finally, you should include a list of suppliers that you plan to work with and a breakdown of their services and main commercial terms (price, payment terms, contract duration, etc.). Investors are always keen to know if there is a particular reason why you have chosen to work with a specific supplier (higher-quality products or past relationships for example).

7. The presentation of the financial plan

The financial plan section is where we will include the financial forecast we talked about earlier in this guide.

Now that you have a clear idea of the content of a travel agency business plan, let's look at some of the tools you can use to create yours.

What tool should I use to write my travel agency's business plan?

In this section, we will be reviewing the two main options for writing a travel agency business plan efficiently:

• Using specialized software,
• Outsourcing the drafting to the business plan writer.

Using an online business plan software for your travel agency's business plan

The modern and most efficient way to write a travel agency business plan is to use business plan software .

There are several advantages to using specialized software:

• You can easily create your financial forecast by letting the software take care of the financial calculations for you without errors
• You are guided through the writing process by detailed instructions and examples for each part of the plan
• You can access a library of dozens of complete business plan samples and templates for inspiration
• You get a professional business plan, formatted and ready to be sent to your bank or investors
• You can easily track your actual financial performance against your financial forecast
• You can create scenarios to stress test your forecast's main assumptions
• You can easily update your forecast as time goes by to maintain visibility on future cash flows
• You have a friendly support team on standby to assist you when you are stuck

If you're interested in using this type of solution, you can try The Business Plan Shop for free by signing up here .

Hiring a business plan writer to write your travel agency's business plan

Outsourcing your travel agency business plan to a business plan writer can also be a viable option.

These writers possess valuable experience in crafting business plans and creating accurate financial forecasts. Additionally, enlisting their services can save you precious time, enabling you to concentrate on the day-to-day operations of your business.

It's important to be mindful, though, that hiring business plan writers comes with a cost. You'll be paying not just for their time but also for the software they use, and their profit margin.

Based on experience, a complete business plan usually requires a budget of at least £1.5k ($2.0k) excluding tax, and more if revisions are needed after initial meetings with lenders or investors - changes often arise following these discussions.

When seeking investment, be cautious about spending too much on consulting fees. Investors prefer their funds to contribute directly to business growth. Thus, the amount you spend on business plan writing services and other consulting services should be negligible compared to the amount you raise.

Another aspect to consider is that while you'll receive the output of the business plan, you usually won't own the actual document. It will be saved in the consultant's business plan software, which will make updating the plan challenging without retaining the consultant on a retainer.

Given these factors, it's essential to carefully weigh the pros and cons of outsourcing your travel agency business plan to a business plan writer and decide what best suits your business's unique needs.

Why not create your travel agency's business plan using Word or Excel?

I must advise against using Microsoft Excel and Word (or their Google, Apple, or open-source equivalents) to write your travel agency business plan. Let me explain why.

Firstly, creating an accurate and error-free financial forecast on Excel (or any spreadsheet) is highly technical and requires a strong grasp of accounting principles and financial modelling skills. It is, therefore, unlikely that anyone will fully trust your numbers unless you have both a degree in finance and accounting and significant financial modelling experience, like us at The Business Plan Shop.

Secondly, relying on spreadsheets is inefficient. While it may have been the only option in the past, technology has advanced significantly, and software can now perform these tasks much faster and with greater accuracy. With the rise of AI, software can even help us detect mistakes in forecasts and analyze the numbers for better decision-making.

And with the rise of AI, software is also becoming smarter at helping us detect mistakes in our forecasts and helping us analyse the numbers to make better decisions.

Moreover, software makes it easier to compare actuals versus forecasts and maintain up-to-date forecasts to keep visibility on future cash flows, as we discussed earlier in this guide. This task is cumbersome when using spreadsheets.

Now, let's talk about the written part of your travel agency business plan. While it may be less error-prone, using software can bring tremendous gains in productivity. Word processors, for example, lack instructions and examples for each part of your business plan. They also won't automatically update your numbers when changes occur in your forecast, and they don't handle formatting for you.

Overall, while Word or Excel may seem viable for some entrepreneurs to create a business plan, it's by far becoming an antiquated way of doing things.

• Using business plan software is a modern and cost-effective way of writing and maintaining business plans.
• A business plan is not a one-shot exercise as maintaining it current is the only way to keep visibility on your future cash flows.
• A business plan has 2 main parts: a financial forecast outlining the funding requirements of your travel agency and the expected growth, profits and cash flows for the next 3 to 5 years; and a written part which gives the reader the information needed to decide if they believe the forecast is achievable.

We hope that this in-depth guide met your expectations and that you now have a clear understanding of how to write your travel agency business plan. Do not hesitate to contact our friendly team if you have questions additional questions we haven't addressed here.

Also on The Business Plan Shop

• How to write a business plan to secure a bank loan?
• Key steps to write a business plan?
• Top mistakes to avoid in your business plan

Do you know entrepreneurs interested in starting or growing a travel agency? Share this article with them!

Founder & CEO at The Business Plan Shop Ltd

Guillaume Le Brouster is a seasoned entrepreneur and financier.

Guillaume has been an entrepreneur for more than a decade and has first-hand experience of starting, running, and growing a successful business.

Prior to being a business owner, Guillaume worked in investment banking and private equity, where he spent most of his time creating complex financial forecasts, writing business plans, and analysing financial statements to make financing and investment decisions.

Guillaume holds a Master's Degree in Finance from ESCP Business School and a Bachelor of Science in Business & Management from Paris Dauphine University.

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How To Write a Travel Agent Business Plan + Template

Creating a business plan is essential for any business, but it can be especially helpful for travel agency businesses who want to improve their strategy and/or raise funding.

A well-crafted business plan not only outlines the vision for your company, but also documents a step-by-step roadmap of how you are going to accomplish it. In order to create an effective business plan, you must first understand the components that are essential to its success.

This article provides an overview of the key elements that every travel agency business owner should include in their business plan.

Download the Ultimate Business Plan Template

What is a Travel Agency Business Plan?

A travel agency business plan is a formal written document that describes your company’s business strategy and its feasibility. It documents the reasons you will be successful, your areas of competitive advantage, and includes information about your team members. Your business plan is a key document that will convince investors and lenders (if needed) that you are positioned to become a successful venture.

Why Write a Travel Agency Business Plan?

A travel agency business plan is required for banks and investors. The document is a clear and concise guide of your business idea and the steps you will take to make it profitable.

Entrepreneurs can also use this as a roadmap when starting their new company or venture, especially if they are inexperienced in starting a business.

Writing an Effective Travel Agency Business Plan

The following are the key components of a successful travel agency business plan.

Executive Summary

The executive summary of a travel agency business plan is a one to two-page overview of your entire business plan. It should summarize the main points, which will be presented in full in the rest of your business plan.

• Start with a one-line description of your travel agency
• Provide a short summary of the key points in each section of your business plan, which includes information about your company’s management team, industry analysis, competitive analysis, and financial forecast among others.

Company Description

This section should include a brief history of your company. Include a short description of how your company started, and provide a timeline of milestones your company has achieved.

If you are just starting your travel agency, you may not have a long company history. Instead, you can include information about your professional experience in this industry and how and why you conceived your new venture. If you have worked for a similar company before or have been involved in an entrepreneurial venture before starting your travel agency firm, mention this.

You will also include information about your chosen travel agency business model and how, if applicable, it is different from other companies in your industry.

Industry Analysis

The industry or market analysis is an important component of a travel agency business plan. Conduct thorough market research to determine industry trends and document the size of your market. 

Questions to answer include:

• What part of the travel agency industry are you targeting?
• How big is the market?
• What trends are happening in the industry right now and, if applicable, how do these trends support the success of your company?

You should also include sources for the information you provide, such as published research reports and expert opinions.

Customer Analysis

This section should include a list of your target audience(s) with demographic and psychographic profiles (e.g., age, gender, income level, profession, job titles, and interests). You will need to provide a profile of each customer segment separately, including their needs and wants.

For example, a travel agency’s customers may include individuals, families, or corporate clients.

You can include information about how your customers make the decision to buy from you as well as what keeps them buying from you.

Develop a strategy for targeting those customers who are most likely to buy from you, as well as those that might be influenced to buy your products or travel agency services with the right marketing.

Competitive Analysis

The competitive analysis helps you determine how your product or service will be different from competitors, and what your unique selling proposition (USP) might be that will set you apart in this industry.

For each competitor, list their strengths and weaknesses. Next, determine your areas of competitive differentiation and/or advantage; that is, in what ways are you different from and ideally better than your competitors?

Marketing Plan

This part of the business plan is where you determine and document your marketing plan. Your plan should be clearly laid out, including the following 4 Ps.

• Product/Service : Detail your product/service offerings here. Document their features and benefits.
• Price : Document your pricing strategy here. In addition to stating the prices for your products/services, mention how your pricing compares to your competition.
• Place : Where will your customers find you? What channels of distribution (e.g., partnerships) will you use to reach them if applicable?
• Promotion : How will you reach your target customers? For example, you may use social media, write blog posts, create an email marketing campaign, use pay-per-click advertising, launch a direct mail campaign. Or you may promote your travel agency via word of mouth or PR.

Operations Plan

This part of your travel agency business plan should include the following information:

• How will you deliver your product/service to customers? For example, will you do it in person or over the phone only?
• What infrastructure, equipment, and resources are needed to operate successfully? How can you meet those requirements within budget constraints?

The operations plan is where you also need to include your company’s business policies. You will want to establish policies related to everything from customer service to pricing, to the overall brand image you are trying to present.

Finally, and most importantly, in your Operations Plan, you will lay out the milestones your company hopes to achieve within the next five years. Create a chart that shows the key milestone(s) you hope to achieve each quarter for the next four quarters, and then each year for the following four years. Examples of milestones for a travel agency include reaching $X in sales. Other examples include adding new products/services, hiring new employees, and so on.

Management Team

List your team members here including their names and titles, as well as their expertise and experience relevant to your specific travel agency industry. Include brief biography sketches for each team member.

Particularly if you are seeking funding, the goal of this section is to convince investors and lenders that your team has the expertise and experience to execute on your plan. If you are missing key team members, document the roles and responsibilities you plan to hire for in the future.

Financial Plan

Here you will include a summary of your complete and detailed financial plan (your full financial projections go in the Appendix). 

This includes the following three financial statements:

Income Statement

Your income statement should include:

• Revenue : how much revenue you generate.
• Cost of Goods Sold : These are your direct costs associated with generating revenue. This includes labor costs, as well as the cost of any equipment and supplies used to deliver the product/service offering.
• Net Income (or loss) : Once expenses and revenue are totaled and deducted from each other, this is the net income or loss

Sample Income Statement for a Startup Travel Agency

Balance sheet.

Include a balance sheet that shows your assets, liabilities, and equity. Your balance sheet should include:

• Assets : All of the things you own (including cash).
• Liabilities : This is what you owe against your company’s assets, such as accounts payable or loans.
• Equity : The worth of your business after all liabilities and assets are totaled and deducted from each other.

Sample Balance Sheet for a Startup Travel Agency

Cash flow statement.

Include a cash flow statement showing how much cash comes in, how much cash goes out and a net cash flow for each year. The cash flow statement should include:

• Cash Flow From Operations
• Cash Flow From Investments
• Cash Flow From Financing

Below is a sample of a projected cash flow statement for a startup travel agency.

Sample Cash Flow Statement for a Startup Travel Agency

You will also want to include an appendix section which will include:

• Your complete financial projections.
• A complete list of your company’s business policies and procedures related to the rest of the business plan (marketing, operations, etc.).
• Any other documentation which supports what you included in the body of your business plan.

Writing a good business plan gives you the advantage of being fully prepared to launch and/or grow your travel agency. It not only outlines your business vision but also provides a step-by-step process of how you are going to accomplish it. This will give you a much better chance at success than going into business blindly.

While it may seem like a daunting task, if you take it step-by-step and include all of the necessary information, you will be well on your way to having a successful travel agency.  

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Step-by-step guide to creating a tour operator business plan [template included]

By Kevin Tjoe — 13 Jan 2022

Business plan   Business set-up

Updated July 2023 – Ready to take the plunge and launch that tour company or adventure travel business you’ve been envisioning? Before you start welcoming guests, the best first step is always to build a detailed business plan. 

A tour operator business plan is more than just a formality; it is the compass that will navigate your business’s journey. A well-structured business plan for a tour operator provides the framework for transforming your vision into a thriving and sustainable business. It will help you clarify your goals, streamline your operations, and make informed decisions.

Let’s explore the immense value of a clear tour operator business plan as well as the most important elements to consider in this comprehensive document. 

Why create a business plan?

Crafting a business plan allows you to lay the groundwork for your tour operator business effectively. Whether you plan to help travelers make travel plans or to provide amazing tourism experiences, your business plan will serve a couple of key purposes:

• You can hit the ground running with a plan in place, and goals to work towards in the long term.
• You’ll have a quality business case to use if you’re applying for loans or grants.
• You can point your start-up resources, such as cash flow and staff, where they’ll provide the most benefit. This is particularly important if you’re starting with a tight budget.
• You’ll also have a ‘roadmap’ to help you navigate through the inevitable challenges, obstacles, and surprises in business!

Key elements of a tour operator business plan

In order to understand how to set up a tour operator business, you’ll first need to learn the key elements of a tour operator business plan.

1. Business overview

This section of your tour operator/ tour agency business plan provides a holistic snapshot of your company, offering readers a clear understanding of your business’s identity. Ideally, it should include the following:

• Business Name: Your business name should resonate with your target audience, conveying the essence of your offerings and the unique experiences you promise to deliver. Ensure it is memorable, evocative, and future-proof.
• Location: Detail the physical location of your tour operator business. Your location can influence your target market and the types of tours you can offer. Be specific about your base of operations and, if applicable, mention any satellite offices or future expansion plans.
• History: Describe the story behind your tour company’s inception. Share the passion and inspiration that sparked your journey into the travel and tourism industry, and ensure that it aligns with your brand values. 
• Ownership Structure: Clarify the legal structure of your tour operator business. Are you a sole proprietorship, a partnership, a limited liability company, or a corporation? Describe the ownership arrangement and highlight the key stakeholders involved in the venture. 
• Assets and Debts: Provide an overview of your company’s assets and debts. This includes tangible assets such as vehicles, equipment, and office space, as well as intangible assets like intellectual property and brand equity. If applicable, disclose any outstanding debts or financial obligations that may impact your business’s financial health and ability to grow.

2. Market analysis

Start by defining your target market. Are you catering to adventure-seeking travelers, history enthusiasts, or nature lovers? Consider their demographics, interests, and spending behavior. Research industry trends and analyze competitors to gain insights into their strengths and weaknesses. This will help you identify opportunities and potential gaps in the market that your business can fill.

In addition, study the external factors that could impact your business, such as seasonal fluctuations, economic conditions, and any regulatory requirements specific to the tourism industry.

3. Tour offerings

Crafting compelling and diverse tour offerings is at the heart of your tour operator business. Consider the unique experiences and attractions your target market seeks. Develop a range of tour packages that cater to different preferences and budget levels.

Your tours should not only showcase the best of the destination but also provide memorable and immersive experiences. Whether it’s organizing guided city tours, thrilling adventure expeditions, or cultural explorations, your offerings should reflect your passion for travel and your commitment to creating unforgettable memories for your customers.

Use your tour operator/ tour agency business plan to emphasize what sets your tours apart from the competition. Whether it’s exclusive access to hidden gems, knowledgeable guides, or sustainable practices, highlight the value that customers will gain from choosing your services.

4. Marketing strategy

Successful businesses have strong brands, so your business plan should set out branding guidelines . Consider the following key elements when coming up with a strategy that will guide how you should start marketing your tour business:

• Branding Guidelines: Outline your branding guidelines, including your brand’s visual identity, mission statement, core values, and brand voice. Emphasize consistency across all touchpoints, from your website and social media platforms to your tour brochures and customer interactions. 
• Advertising Channels: Identify the advertising channels that best align with your target audience and budget. Consider a mix of online and offline channels to reach potential customers effectively. Online channels may include pay-per-click (PPC) advertising, display ads, and sponsored content on travel websites. Offline channels could involve partnering with local travel agencies, and tourism boards, or participating in travel trade shows and events. 
• Social Media Channels: Social media is a powerful tool for connecting with travelers and building a loyal community around your brand. Engage users with captivating visual content, compelling storytelling, and interactive posts that evoke a sense of wanderlust. Utilize platforms like Instagram, Facebook, Twitter, and YouTube to share breathtaking photos, behind-the-scenes glimpses, and testimonials from satisfied customers.
• Customer Reviews and Testimonials: Encourage satisfied customers to share their stories and feedback on platforms like Google Reviews, TripAdvisor, and your website. Positive reviews build credibility and serve as powerful social proof, enticing potential travelers to choose your tours with confidence. Respond promptly and graciously to all reviews, demonstrating your commitment to customer satisfaction.

• Content Marketing: Create valuable and informative content that educates travelers about your destination, highlights unique aspects of your tours, and offers travel tips and insights. Utilize blog posts, videos, podcasts, and downloadable guides to establish your tour operator business as a trusted authority in the travel industry.
• Partnerships and Collaborations: Consider strategic partnerships with complementary businesses in the travel and hospitality industry. Collaborate with local hotels, restaurants, and activity providers to create enticing package deals that appeal to travelers seeking a holistic experience. This is especially important if you are considering creating an international travel agency business plan, as collaborations can help broaden your reach.

5. Operations and management

The operations and management section of your tour operator business plan delves into the practical aspects that keep your business running smoothly and efficiently. This nitty-gritty exploration ensures that every aspect of your tour company is well-organized, legally compliant, and focused on delivering exceptional experiences to your customers. 

Here are the key components to include in this section:

• Business and Legal Structure: Clearly outline your chosen business and legal structure. Whether you are operating as a sole proprietorship, a partnership, a limited liability company (LLC), or a corporation, this information provides a framework for your business’s governance and responsibilities.
• Risk Management and Workplace Health & Safety Plans: As a tour operator, the safety and well-being of your guests are paramount. Detail your risk management procedures and workplace health & safety plans to mitigate potential hazards and ensure a secure experience for travelers. Assess the risks associated with different tours and activities, develop contingency plans, and implement safety protocols that align with industry best practices.
• Terms and Conditions: Craft comprehensive and transparent terms and conditions for your tour offerings. Clearly communicate cancellation policies, refund procedures, and any limitations or requirements for participants. 
• Staff Scheduling and Training: Outline your staff scheduling procedures to ensure smooth operations and optimal customer service. Consider investing in staff training programs that equip your team with the knowledge and skills to offer insightful commentary, excellent customer care, and handle unforeseen situations professionally. Furthermore, you can optimize the utilization of Full-Time Equivalent (FTE)  tool to help you gauge the potential productivity of your staff and business.
• Reservation System: In the digital age, a robust and secure reservation system like Rezdy is vital for streamlining your booking process for both you and your customers. Invest in a reliable booking software that allows real-time availability updates, secure payment processing, and automated customer confirmations.

• Distribution Channels and Partnerships: Consider the distribution channels that will help grow your bookings and expand your market reach. Will you collaborate with online travel agencies (OTAs) or travel agents to promote your tours? Explore partnerships with local businesses, such as hotels and restaurants, to create enticing package deals. 
• Customer Relationship Management (CRM): A well-organized CRM system enables you to build lasting relationships with your customers. Implement CRM software to keep track of customer interactions, preferences, and feedback. Personalize your marketing efforts and start building customer loyalty through targeted promotions and personalized offers.

6. Financial plan

The financial plan is a key component of your tour operator business plan. It outlines your revenue streams, costs, and projected financial performance over time. A well-structured financial plan demonstrates the viability of your business and helps you secure funding if needed.

Start by estimating your startup costs, including equipment, licenses, marketing, and initial staff training. Calculate the expected cash flow, factoring in the seasonality of the tourism industry. Identify the pricing strategy for your tours, ensuring that it covers your expenses while remaining competitive in the market.

Create financial projections for at least the first three to five years, considering both conservative and optimistic scenarios. This will enable you to anticipate potential challenges and make informed decisions that will help you with growing your tour business.

Remember to regularly review and update your financial plan as your business progresses. Monitoring actual financial performance against projections will help you make timely adjustments and stay on track towards achieving your business goals.

Ready to start building your business plan as a tour operator?

Download the free all-in-one checklist for easy reference.

Getting your tour business off the ground

Now that you have an effective business plan in place, it’s important to ensure your business has the right software.

Online booking software for tour operators like Rezdy is designed to equip your business for success. It includes multiple features integrated into the system, which allows you to reduce your overall admin duties. Some of these tools include real-time availability to avoid double bookings, automatic customer updates and reminders, and secure payment processes.

Furthermore, Rezdy also offers a channel manager platform that connects your business to thousands of resellers instantly. Joining Rezdy Marketplace is as simple as listing your products and setting your commission rates. From there, you can let resellers on the platform promote and sell your services to their customers.

Set your business up for success with Rezdy

Set your business up for success with a FREE 21-day trial or alternatively, book a demo to learn more about Rezdy and our products!

If you enjoyed this article then make sure to follow the Rezdy blog . There are a lot of marketing tools and tour operator tips designed with businesses like yours in mind.

Enjoy a 21-day free trial to take a look around and see if we are a good fit for your business.

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Travel Agency Business Plan Template & Guidebook

Whether you are looking to start a travel agency from the ground up or simply update your current business plan, the #1 Travel Agency Business Plan Template & Guidebook provides a comprehensive resource for entrepreneurs. The intuitive step-by-step guidebook walks through the process of creating and organizing a business plan that will make launching and running a successful travel agency easier than ever before. With expert tips, financial analysis templates, and more, this Travel Agency Business Plan Template & Guidebook provides all the tools necessary to create the perfect business plan.

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• How to Start a Profitable Travel Agency Business [11 Steps]
• 10+ Best & Profitable Travel Agency Business Ideas [2023]

How to Write a Travel Agency Business Plan in 7 Steps:

1. describe the purpose of your travel agency business..

The first step to writing your business plan is to describe the purpose of your travel agency business. This includes describing why you are starting this type of business, and what problems it will solve for customers. This is a quick way to get your mind thinking about the customers’ problems. It also helps you identify what makes your business different from others in its industry.

It also helps to include a vision statement so that readers can understand what type of company you want to build.

Here is an example of a purpose mission statement for a travel agency business:

Our mission at [Travel Agency] is to provide customers with the hassle-free and cost-effective travel experience that best meets their individual needs and exceeds their expectations. We strive to make travel an enjoyable and memorable experience for each and every one of our customers.

2. Products & Services Offered by Your Travel Agency Business.

The next step is to outline your products and services for your travel agency business. 

When you think about the products and services that you offer, it's helpful to ask yourself the following questions:

• What is my business?
• What are the products and/or services that I offer?
• Why am I offering these particular products and/or services?
• How do I differentiate myself from competitors with similar offerings?
• How will I market my products and services?

You may want to do a comparison of your business plan against those of other competitors in the area, or even with online reviews. This way, you can find out what people like about them and what they don’t like, so that you can either improve upon their offerings or avoid doing so altogether.

3. Build a Creative Marketing Stratgey.

If you don't have a marketing plan for your travel agency business, it's time to write one. Your marketing plan should be part of your business plan and be a roadmap to your goals. 

A good marketing plan for your travel agency business includes the following elements:

Target market

• Who is your target market?
• What do these customers have in common?
• How many of them are there?
• How can you best reach them with your message or product?

Customer base 

• Who are your current customers? 
• Where did they come from (i.e., referrals)?
• How can their experience with your travel agency business help make them repeat customers, consumers, visitors, subscribers, or advocates for other people in their network or industry who might also benefit from using this service, product, or brand?

Product or service description

• How does it work, what features does it have, and what are its benefits?
• Can anyone use this product or service regardless of age or gender?
• Can anyone visually see themselves using this product or service?
• How will they feel when they do so? If so, how long will the feeling last after purchasing (or trying) the product/service for the first time?

Competitive analysis

• Which companies are competing with yours today (and why)? 
• Which ones may enter into competition with yours tomorrow if they find out about it now through word-of-mouth advertising; social media networks; friends' recommendations; etc.)
• What specific advantages does each competitor offer over yours currently?

Marketing channels

• Which marketing channel do you intend to leverage to attract new customers?
• What is your estimated marketing budget needed?
• What is the projected cost to acquire a new customer?
• How many of your customers do you instead will return?

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4. Write Your Operational Plan.

Next, you'll need to build your operational plan. This section describes the type of business you'll be running, and includes the steps involved in your operations. 

In it, you should list:

• The equipment and facilities needed
• Who will be involved in the business (employees, contractors)
• Financial requirements for each step
• Milestones & KPIs
• Location of your business
• Zoning & permits required for the business

What equipment, supplies, or permits are needed to run a travel agency business?

To run a Travel Agency business, you will need the following equipment, supplies, and permits:

• Computer and/or laptop with internet access
• Printer/copier/scanner
• Travel Agency Software
• Stationery Supplies (envelopes, notepads, pens, etc.)
• Business cards
• Business License/Permit from your local government
• Travel Accreditation (IATA / CLIA)

5. Management & Organization of Your Travel Agency Business.

The second part of your travel agency business plan is to develop a management and organization section.

This section will cover all of the following:

• How many employees you need in order to run your travel agency business. This should include the roles they will play (for example, one person may be responsible for managing administrative duties while another might be in charge of customer service).
• The structure of your management team. The higher-ups like yourself should be able to delegate tasks through lower-level managers who are directly responsible for their given department (inventory and sales, etc.).
• How you’re going to make sure that everyone on board is doing their job well. You’ll want check-ins with employees regularly so they have time to ask questions or voice concerns if needed; this also gives you time to offer support where necessary while staying informed on how things are going within individual departments too!

6. Travel Agency Business Startup Expenses & Captial Needed.

This section should be broken down by month and year. If you are still in the planning stage of your business, it may be helpful to estimate how much money will be needed each month until you reach profitability.

Typically, expenses for your business can be broken into a few basic categories:

Startup Costs

Startup costs are typically the first expenses you will incur when beginning an enterprise. These include legal fees, accounting expenses, and other costs associated with getting your business off the ground. The amount of money needed to start a travel agency business varies based on many different variables, but below are a few different types of startup costs for a travel agency business.

Running & Operating Costs

Running costs refer to ongoing expenses related directly with operating your business over time like electricity bills or salaries paid out each month. These types of expenses will vary greatly depending on multiple variables such as location, team size, utility costs, etc.

Marketing & Sales Expenses

You should include any costs associated with marketing and sales, such as advertising and promotions, website design or maintenance. Also, consider any additional expenses that may be incurred if you decide to launch a new product or service line. For example, if your travel agency business has an existing website that needs an upgrade in order to sell more products or services, then this should be listed here.

7. Financial Plan & Projections

A financial plan is an important part of any business plan, as it outlines how the business will generate revenue and profit, and how it will use that profit to grow and sustain itself. To devise a financial plan for your travel agency business, you will need to consider a number of factors, including your start-up costs, operating costs, projected revenue, and expenses. 

Here are some steps you can follow to devise a financial plan for your travel agency business plan:

• Determine your start-up costs: This will include the cost of purchasing or leasing the space where you will operate your business, as well as the cost of buying or leasing any equipment or supplies that you need to start the business.
• Estimate your operating costs: Operating costs will include utilities, such as electricity, gas, and water, as well as labor costs for employees, if any, and the cost of purchasing any materials or supplies that you will need to run your business.
• Project your revenue: To project your revenue, you will need to consider the number of customers you expect to have and the average amount they will spend on each visit. You can use this information to estimate how much money you will make from selling your products or services.
• Estimate your expenses: In addition to your operating costs, you will need to consider other expenses, such as insurance, marketing, and maintenance. You will also need to set aside money for taxes and other fees.
• Create a budget: Once you have estimated your start-up costs, operating costs, revenue, and expenses, you can use this information to create a budget for your business. This will help you to see how much money you will need to start the business, and how much profit you can expect to make.
• Develop a plan for using your profit: Finally, you will need to decide how you will use your profit to grow and sustain your business. This might include investing in new equipment, expanding the business, or saving for a rainy day.

Frequently Asked Questions About Travel Agency Business Plans:

Why do you need a business plan for a travel agency business.

A business plan for a travel agency is essential for a number of reasons. It will help you to define your objectives and strategies, identify your target market, and assess the potential profitability of your business. It also serves as a roadmap for establishing key relationships with vendors, creating operational structures, and setting budgets. A business plan can also be used to demonstrate your commitment to potential investors or lenders, showing them that you have taken the time to understand the industry and create a realistic plan for success.

Who should you ask for help with your travel agency business plan?

You should ask a professional business consultant or accountant for help with your travel agency business plan. They will be able to provide the knowledge and experience necessary to develop a successful plan that meets your goals and objectives.

Can you write a travel agency business plan yourself?

Yes, it is possible to write a travel agency business plan yourself. Writing a business plan requires in-depth research, a clear understanding of your industry and the ability to articulate your strategies and objectives. This includes creating an executive summary, market analysis, details on the services you offer and a financial forecast. Additionally, you need to clearly define your travel agency’s mission statement and list out any unique features or goals. Once you have researched your industry and developed these key elements of the plan, you may be able to create an effective business plan on your own. However, it may be beneficial to consult with an expert in the field or hire someone to assist in the process.

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I'm Nick, co-founder of newfoundr.com, dedicated to helping aspiring entrepreneurs succeed. As a small business owner with over five years of experience, I have garnered valuable knowledge and insights across a diverse range of industries. My passion for entrepreneurship drives me to share my expertise with aspiring entrepreneurs, empowering them to turn their business dreams into reality.

Through meticulous research and firsthand experience, I uncover the essential steps, software, tools, and costs associated with launching and maintaining a successful business. By demystifying the complexities of entrepreneurship, I provide the guidance and support needed for others to embark on their journey with confidence.

From assessing market viability and formulating business plans to selecting the right technology and navigating the financial landscape, I am dedicated to helping fellow entrepreneurs overcome challenges and unlock their full potential. As a steadfast advocate for small business success, my mission is to pave the way for a new generation of innovative and driven entrepreneurs who are ready to make their mark on the world.

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Free Travel Agency Business Plan Template

Okay, okay. I know you’re crazy thrilled that you’ve found a free travel agency business plan template for your agency! I promise we’ve got a super razzly-dazzly one that will help you craft THE BEST travel agency business plan out there. So we’ll have you download your free travel agency business plan template in just a second, and then we’ll walk you through the different pieces of the business plan in the article.

Sound like a (business) plan?!

What Is the Purpose of a Travel Agency Business Plan?

Here's a sneak preview of what you can expect from HAR's business plan below. (Need no convincing? Download it here .)

Business plans got their start as a way for banks to vet new businesses before deciding to give them a loan. After all, people that have thought long and hard about their business and taken the time to painstakingly write down all the steps and intricacies have a higher likelihood of success.

Now when it comes to travel agencies, you may think having a business plan is overkill or outdated. Sure, if you’re opening a storefront agency or a franchise you may need some capital from the bank/investor so a business plan may be a necessity. But now that most agencies are home-based, the median start-up cost for a non-franchise travel agency is $1,000 . If you’re not getting a loan, do you really need a business plan?

If you’re starting a travel agency, here’s a few reasons why creating a travel agency business plan might be helpful to you:

• Practical: it will help you feel prepared and confident as you make important business decisions.
• Inspirational: it will help remind you what it is that inspired you to start a travel agency and what kind of impact you hope to have on your clients. The kinds of things that will remind you why you started all these shenanigans when logistical tasks like taxes get boring or complicated.

The other thing a travel agency business plan can do? It will help you describe your agency—the service you provide (do you have a niche?), the market in which you’re operating, the money you need to get started and keep going, and the people you need to help you get there (accountants? Sub agents? Bookkeeper? Web Developer?) In short, it can help you feel prepared and confident, and our free travel agency business plan is going to help you with that!

Download HAR’s Free Travel Agency Business Plan Template

We have a handy dandy (and free) travel agency business plan template for YOU, dear reader! Yay, it is the companion to this article.

We’re offering our travel agency business plan template free (no catch) because we want your new business to be off to the best start possible!

Alright, now you’ve downloaded our free travel agency business plan template, great! We’ve already filled it out for our fictional travel agency, Corona Travels , and now we need to work on personalizing this business plan to your travel agency.

To update your personal business plan template with your brilliant ideas, all you'll need to do is delete the sample description provided in the template and add in your own material! In the next section, we walk you through each part of the business plan. I recommend that as you read through the article, you compare the sections of the travel agency business plan template. That way, you'll have an explanation for each part with an example.

Let’s jump in and start tailoring the business plan template to your travel agency!

Hold up. Still need to get your agency set up? We have just the thing.

Now, a business plan template may feel like you're getting ahead of yourself if you haven't named and/or registered your business yet! If you still need to take strides to get your agency off the ground (your agency, name, niche, registration, host affiliation etc.) we have a course that will fast-forward that process.

Check out HAR's 7 Day Set Up Accelerator course to get your agency set up faster so you can start monetizing sooner! The course is written and taught by HAR Founder, Steph Lee, and professional Educator, Bridget Lee. It includes nine chapters with 70+ instructional videos, course quizzes, peer accountability, and monthly meet-ups with HAR members and industry experts.

Now, let's go over the business plan!

Travel Agency Business Plan, Part 1: Overview

The overview is like an executive summary that briefly summarizes all aspects of your travel agency business plan. You can think of this as the “elevator pitch” of your travel agency business plan. Oddly enough, I like to do these summaries last, since then you’ll have all the info at your fingertips that you'll need to summarize.

So what details are you filling out in this first part of the travel agency business plan?

• Name of Your Business: Not sure what your travel agency name is yet? We can help you with that .
• Location: Is it your house? A PO box? A storefront? Your sister’s basement?
• Your Travel Niche: Specializing as a travel agent is more important than ever. Selling travel is about much more than booking. It’s also about bringing knowledge, expertise, access, and resourcefulness to the table—all the qualities that help separate you from an OTA (online travel agency).
• Your Target Client: Luxury? Families? LGBTQ? Cruisers? Boomers or Millennials? Honeymooners? Foodies? Who do you imagine your client to be and how will this shape the way you develop your travel agency?
• Your Competition: Another way to look at this is, who are your industry peers? What might your customers consider if they don’t use you as a travel agent? (Try to think beyond OTAs like Expedia.)
• The expertise of Management Team: Okay, so your management team might be you and the office dog (we know who’s the alpha in the office!). But even if that’s the case, this section is an opportunity to reflect on your strengths as a travel agency owner.
• Financial Projections: Unless you’re coming into the industry with a book of business, this might seem intimidating. It’s hard to know what to expect right? But the good thing is we have an amazing resource for you: “ Travel Agency Startup Costs and Earnings: What to Expect ” Wow! Who knew?!
• Travel Agency Mission Statement: This will help you remember why you did this in the first place, and remind you what kind of impact you hope your business will have on others! Warm fuzzies, right?!

And hey, we’re done with Part 1!! Just like that. ;)

I know you can barely contain your excitement to start reading about our next section, business foundations !

Travel Agency Business Plan, Part 2: Business Foundations

This section of your travel agency business plan provides background information on your agency. If you’re brand-spanking new, much of this information will be provided in the overview. If your business has roots, it may be a little more complex.

This section can include:

• Legal Structure : What type of business is your agency? LLC? Sole Prop? S Corp? Has it changed over time?
• Agency Founders and Their Role in the Formation of Your Travel Agency : Who are the founders and what are their roles?

Ah, that was a nice and easy section, wasn’t it? Now we need to start getting real. Yes, folks, the well-loved travel agency business plan template goes OCD in the next section!

Travel Agency Business Plan, Part 3: Product or Service

This section is where the rubber hits the road with your niche and will help you begin to think about developing preferred supplier relationships with your travel agency.

• Products/ Services Provided: This may seem obvious—you sell travel! But if you’re considering providing other services (even if it’s a future goal), it will be important to consider that too. In addition to planning and booking travel, this may include: Coaching clients to book their own trips; trip consultations; wedding planning; providing education, training or mentorship to other agents; facilitating educational webinars (etc.); speaking at industry events.
• Sales Projections: This is hard if you haven’t booked any travel yet. But consider what kind of travel you want to sell. How many clients are you booking? How many trips do you aim to sell weekly/monthly/annually?

This is a good opportunity to make financial goals for your travel agency. What kind of annual income are you aiming for? How much would you have to sell in one year to reach that?

If you are providing multiple services as a part of your travel agency business, what is the breakdown among those different services?

• Industry Projections for Your Travel Services: We’ve done a lot of legwork for you on this one in our travel agency business plan template. But, if you want to add more, imagine this as describing the industry viability to someone who is not within the industry. What influences demand for your travel services? How is the health of the travel industry overall? Check out HAR's latest income survey results !

Now that you’ve dug into the details in this section, let’s move into the next section of your travel agency business plan that doesn’t tax your brain. It’s about management structures and it’s equal parts easy and boring (#honest).

Travel Agency Business Plan, Part 3: Management Structures

This will be a very fast exercise if you are opening your agency alone :). If you’re working for yourself, you may also want to consider outside organizations that influence your business:

• If applicable, which host agency/franchise do you belong to?
• If you or your host belongs to a consortium, which one?
• What travel organizations are you a part of? (i.e. ASTA, IGLTA, PATH, CCRA etc.)
• Since you are an independent agent, these outside organizations won’t have a direct stake in your business, but they may influence your day-to-day operations in some way.

If you're flying solo, you can probably stop here! But if you have or want to take on sub agents or employees you’ll want to do the above, and you’ll also need to go into more depth with your travel agency management structure below:

• If applicable, create an organizational chart of your travel agency. You can think of this as a business version of a family tree. This will help you visualize who the players are and what roles they serve to your agency.
• What value do the different management positions add to your travel agency?
• What are the responsibilities of their positions?
• Describe other ICs or employees/ positions and their responsibilities. How will they complement what you do for your agency? (i.e. Sell a different type of travel under your brand? Work on sales? Bookings only? Administrative assistant?)
• If you have sub agents or employees, break down overall payroll expenses. What is their compensation? A commission split? A base salary? A combination of the two? Will you provide any bonuses or benefits if you have employees?
• Do you anticipate future additions to your staff?

Phew! That was a long one. Well, you certainly nailed it. Kudos!

Travel Agency Business Plan, Part 3.2: Who Is Your Office Mascot?

This is probably the most important factor in building a business plan. How the heck are you going to get up and work every morning without a dog pushing their cold nose into your face, or a cat trying to use your neck as their personal radiator?

Still with me? Okay, no more goofing off. Just wanted to throw in a fun interlude . . . I’ll get back to business now.

Travel Agency Business Plan, Part 4: Marketing Strategy

This section of your travel agency’s business plan will help you clarify some of your marketing goals in the long term.

• Who are your major clients? Include names, location, and what kind of travel they prefer. What was the sales volume for each customer? Have they provided referrals for your business?
• Who are prospective clients? Who might be other potential travel clients for you? Parenting class members? Your yoga class? Regulars at your favorite bookstore? Do you have a way to informally see how they might respond to your travel services?

Marketing Plan

What is your marketing plan? Consider things such as:

• Your pricing. For example, if you want to charge fees.
• How do you want to market to clients? Online, at wedding expos, in line at the grocery store?
• What region do you want to target and if you want to target clients outside your locale, how do you plan to do so?
• What is the flow of your services during planning, travel and post-trip? How do you plan on getting feedback from your customer once the travel is complete?
• What are your marketing priorities ? Networking? Referral? Online? Social media?
• Sales Strategy: Now that you have a list of potential clients and a marketing plan, how will you reach out to prospective clients? Host a cocktail hour? Send a mailing? Go to networking meetings? Do you need to outsource or delegate any tasks to help you with your sales efforts?

Are you ready to head on over to that travel agency business plan template you have a love-hate relationship with? Good, because you’re gonna read all about Corona Travels marketing strategy and how they plan on closing the leads they get . . . and maybe you can steal some of Sol’s ideas for your agency. :)

Travel Agency Business Plan, Part 5: Technology

What kind of tech do you need to help your agency get up and running, and what technology will you need to keep your travel agency machine humming? You don’t need everything at once, but you’ll want to have an idea of what you need to reach some travel agency milestones you’re going for.

You might want to consider things like:

• Travel Agency Website
• Read up on different website options for agencies
• Customer Relations Management (CRM):
• ClientBase Online
• Online Scheduling Tools:
• Itinerary Builders:
• Axus Travel App
• IT Explorer
• Payment Processing (for fees)
• Quickbooks Payments (use this link for 50% off first SIX months -- normally it's 3 months)
• TESS (built into CRM)
• Travel Joy (built into CRM)
• WixPayments
• Bookkeeping and Accounting
• Google Sheets ( part of Google Workspace )
• Mac Numbers
• Quickbooks Online / Quicken (use this link for 50% off first SIX months -- normally it's 3 months)
• Quickbooks Online (use this link for 50% off first SIX months -- normally it's 3 months)
• Booking tools
• Google Workspace : We have an exclusive 10% off promo code for Google Workspace! Just fill out the form and we'll send you the code.
• Office equipment
• Fax: FaxZero
• Scanner: Scanner Pro ($3.99 in Apple App Store)
• Scanner: Tiny Scanner (Google Play Store)
• Business Card Scanner: CamCard (Free on Apple App Store | .99 on Google Play Store )
• Forms / E-signatures*
• JotForm (free plan allows e-signatures)
• RightSignature
• Email Automation
• Sendinblue (that's what we currently use, and I highly recommend it!)
• Active Campaign
• Constant Contact
• Online Meetings / Video Conferencing
• Google Meet (part of Google Workspace )
• Secure Password Manager (also known as The Handiest Thing Ever )
• Mileage Tracking
• MileIQ (Free but if you ever decided to upgrade, use this link for 10% off paid plans)

Just because it’s technology, it doesn’t mean it has to be state of the art or über fancy. You can pick and choose where you want to allocate your financial resources on tech: I’ve spoken with several travel agents who swear by a combination of sticky notes, physical calendars, and Excel spreadsheets.

Think about which of these technologies you really need. If you go with a host agency or consortium, which of these technologies do they provide? Looking forward as your business grows, which technologies do you anticipate you’ll want to phase in?

Choosing those technologies was fun, wasn’t it? But now we need to iron out how you’re going to run the agency. So let’s move into the next section of your travel agency’s business plan template and make sure you’re running a tight ship!

Travel Agency Business Plan, Part 6: Operations

Developing a plan for travel agency operations will help you understand how to ensure your business runs smoothly, in addition to understanding the capacity of your travel agency. For this section of your travel agency business plan you’ll want to consider:

• What is your sales volume compared to your sales capacity? How much travel can you actually sell in the time you want to spend working to sell travel?
• Who are your preferred suppliers? Who are your host or consortium’s, preferred suppliers? How do these suppliers (and your host) disburse commissions and on what timeline? How does this impact your bookkeeping and workflow?
• If you are booking groups, plan ahead. Are there any special cruise sailings or new ships you want to block space for? Is a resort opening a new property that you’re excited about and might be in high demand? Is there a new exciting product coming up that you want to get ahead of?
• In order to find out about some of these opportunities, what travel publications do you want/ need to subscribe to? (*Ahem* Make sure HAR is one of them!!) How are you utilizing your host or consortium resources to stay ahead?

OMG. OMG!!! That’s right, keep that grin plastered on your face because we’re entering the final leg. You did it!

Travel Agency Business Plan, Part 7: Administrative Support

As a business owner, there will be a lot of external organizational support as you go. First, we’ll focus on financial logistics. What are the business names (or contacts) and addresses of some of your administrative support? This may include:

• Your bank/ banker
• Accountant and/or Bookkeeper
• Host agency or consortium
• Legal counsel/ lawyer

Congratulations. You Have a Travel Agency Business Plan!

Seriously, that was INTENSE. Give yourself a huge pat on the back. Creating a business plan for your travel agency ain’t for the faint of heart, but you did it.

Go ahead and tell us about your process. Was our free travel agency business plan template helpful? Did it help to think things through and write a business plan for your agency? Was it a waste of time? Most importantly, what kind of office pet do you have and what sort of moral support do they provide?

Comment below!

*Editor's Note: This article was originally published on April 16th, 2019. We updated it on the publish date listed on the article!

About the Author

Mary Stein has been working as a writer and editor for Host Agency Reviews since 2016. She loves supporting travel advisors on their entrepreneurial journey and is inspired by their passion, tenacity, and creativity. Mary is also a mom, dog lover, fiction writer, hiker, and a Great British Bake Off superfan.

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Here is a free business plan sample for a travel agency.

Have you ever envisioned launching your own travel agency but feel overwhelmed about where to start? You've landed in the perfect spot.

In the following paragraphs, we will guide you through a comprehensive sample business plan tailored for a travel agency.

As an aspiring entrepreneur, you're likely aware that a meticulously developed business plan is crucial for achieving success. It serves as a roadmap, outlining your vision, objectives, and strategies for your venture.

To craft an effective plan swiftly and with ease, you can utilize our travel agency business plan template. Additionally, our specialists are on hand to provide a free review and refinement of your plan.

How to draft a great business plan for your travel agency?

A good business plan for a travel agency must reflect the unique aspects of the travel industry.

To start, it is crucial to provide a comprehensive overview of the travel market. This includes up-to-date statistics and identifying emerging trends in travel, as illustrated in our travel agency business plan template .

Your business plan should then articulate your vision clearly. Define your target market (such as adventure travelers, luxury vacationers, corporate clients, or budget backpackers), and establish your travel agency's unique value proposition (specialized tours, personalized itineraries, eco-friendly travel, etc.).

Market analysis is the next important section. This requires a thorough understanding of the competitive landscape, travel trends, and consumer behavior.

For a travel agency, it is essential to detail the services you plan to offer. Describe your range of travel products - package tours, custom itineraries, travel insurance, booking services - and explain how they cater to the preferences and requirements of your target customers.

The operational plan is also vital. It should outline the location of your agency, the structure of your customer service and booking system, partnerships with travel providers, and the logistics of trip planning.

For a travel agency, it is important to highlight your expertise in destination knowledge, customer service excellence, and the ability to handle travel disruptions.

Then, delve into your marketing and sales strategy. How will you attract and retain clients? Consider promotional tactics, customer loyalty programs, and cross-selling opportunities (such as travel insurance or add-on excursions).

Embracing digital strategies, like maintaining a robust website or an active social media presence, is also critical in the digital age.

The financial plan is another crucial component. This should include your startup costs, revenue projections, operating expenses, and the point at which you will break even.

In a travel agency, margins can vary widely depending on the type of service, so precise financial planning and a solid understanding of your profit centers are essential. For assistance, refer to our financial forecast for a travel agency .

Compared to other business plans, a travel agency's plan must pay special attention to global travel trends, currency fluctuations, and the impact of international events on travel.

A well-crafted business plan will not only help you clarify your strategy and vision but also attract investors or secure loans.

Lenders and investors are looking for comprehensive market research, realistic financial projections, and a clear operational strategy for managing a travel agency.

By presenting a thorough and substantiated plan, you showcase your professionalism and dedication to the success of your travel agency.

To achieve these goals while saving time, you can complete our travel agency business plan template .

A free example of business plan for a travel agency

Here, we will provide a concise and illustrative example of a business plan for a specific project.

This example aims to provide an overview of the essential components of a business plan. It is important to note that this version is only a summary. As it stands, this business plan is not sufficiently developed to support a profitability strategy or convince a bank to provide financing.

To be effective, the business plan should be significantly more detailed, including up-to-date market data, more persuasive arguments, a thorough market study, a three-year action plan, as well as detailed financial tables such as a projected income statement, projected balance sheet, cash flow budget, and break-even analysis.

All these elements have been thoroughly included by our experts in the business plan template they have designed for a travel agency .

Here, we will follow the same structure as in our business plan template.

Market Opportunity

Market data and figures.

The travel industry is a dynamic and lucrative sector with significant growth potential.

Before the pandemic, the global travel and tourism market was valued at approximately 9.25 trillion U.S. dollars. While the industry faced a downturn due to COVID-19, it is expected to recover and grow in the coming years, driven by pent-up demand and increased consumer confidence.

In the United States alone, the travel and tourism industry contributes substantially to the economy, with millions of international and domestic travelers spending billions annually.

These figures underscore the travel industry's resilience and its critical role in global economic development.

The travel industry is experiencing a transformation, with current trends shaping the future of how people explore the world.

Sustainable travel is becoming increasingly important, with travelers seeking eco-friendly options and destinations that prioritize conservation and community impact.

Personalization and unique experiences are also in high demand, as travelers look for tailor-made itineraries and off-the-beaten-path adventures.

Technology plays a pivotal role, with virtual reality previews, mobile booking, and AI-powered personal assistants enhancing the travel experience.

Health and wellness tourism is on the rise, with destinations offering retreats and activities focused on physical and mental well-being.

Lastly, the demand for flexible booking options and comprehensive travel insurance has grown, as travelers seek security in uncertain times.

These trends highlight the evolving preferences of modern travelers and the need for travel agencies to adapt and innovate.

Success Factors

The success of a travel agency hinges on several critical factors.

Exceptional customer service is paramount, as personalized attention and expert advice can differentiate an agency in a crowded market.

Offering a diverse range of high-quality travel packages and services that cater to various preferences and budgets is also essential.

A strong online presence, with an intuitive booking platform and engaging content, can attract and retain customers in the digital age.

Strategic partnerships with reputable service providers, such as hotels and airlines, can enhance the value proposition and provide competitive pricing.

Lastly, the ability to adapt to industry changes and embrace new trends, such as sustainable travel and wellness tourism, is crucial for long-term success.

The Project

Project presentation.

Our travel agency project is designed to cater to the needs of modern travelers who seek unique and personalized travel experiences. Situated in a convenient location with a strong online presence, our agency will specialize in crafting tailor-made itineraries for individuals, families, and groups. We will focus on providing exceptional travel packages that include gluten-free dining options, ensuring that travelers with dietary restrictions can enjoy their journeys without compromise.

We aim to offer a seamless travel experience, from the planning stage to the return home, with an emphasis on customer satisfaction and attention to detail.

Our travel agency is set to become a go-to resource for those who value health-conscious travel options, as well as for adventurers looking to explore the world with the assurance of their dietary needs being met.

Value Proposition

The value proposition of our travel agency is centered around delivering personalized and health-conscious travel experiences. We understand the challenges faced by travelers with dietary restrictions and are dedicated to providing gluten-free solutions as part of our travel packages.

Our commitment to customization, combined with our expertise in identifying gluten-free friendly accommodations and restaurants, offers peace of mind and an enjoyable travel experience to our clients.

We are dedicated to creating travel itineraries that not only meet the dietary needs of our customers but also enrich their lives through cultural immersion and adventure.

Our agency strives to be a leader in the niche market of health-conscious travel, offering innovative solutions and educational resources that empower our clients to travel freely and safely.

Project Owner

The project owner is a seasoned travel professional with a passion for exploring the world and a deep understanding of the challenges faced by travelers with dietary restrictions.

With years of experience in the travel industry and a personal commitment to healthy living, the owner is well-equipped to guide the agency in providing top-notch, gluten-free travel experiences.

Driven by a vision to make travel accessible and enjoyable for all, regardless of dietary needs, the owner is dedicated to building a travel agency that stands out for its personalized service, health-conscious options, and commitment to customer satisfaction.

With a blend of industry knowledge and a personal touch, the project owner is the driving force behind this innovative travel agency, aiming to transform the way people with dietary restrictions experience the world.

The Market Study

Market segments.

The market segments for this travel agency are diverse and cater to various customer needs.

First, there are adventure seekers looking for unique and off-the-beaten-path travel experiences, who value personalized itineraries.

Next, there are luxury travelers who desire premium, all-inclusive vacation packages with high-end accommodations and exclusive services.

The market also includes budget-conscious travelers who seek affordable yet memorable trips, often in groups or as solo travelers.

Finally, corporate clients represent a significant segment, requiring professional travel arrangements for business trips, conferences, and team-building retreats.

SWOT Analysis

A SWOT analysis of this travel agency project highlights several key factors.

Strengths include a knowledgeable team with expertise in travel planning, strong partnerships with service providers, and a commitment to customer satisfaction.

Weaknesses might involve the volatility of the travel industry, dependency on economic factors, and the challenge of maintaining competitive pricing.

Opportunities can be found in the growing trend of experiential travel, the potential for digital marketing to reach a global audience, and the ability to offer niche travel packages.

Threats include unpredictable global events affecting travel, such as pandemics or political instability, and the intense competition from online travel agencies and direct booking platforms.

Competitor Analysis

Competitor analysis in the travel agency sector indicates a highly competitive landscape.

Direct competitors include other local and online travel agencies, as well as larger travel companies with extensive marketing budgets.

These competitors strive to capture the attention of various traveler demographics by offering deals, loyalty programs, and comprehensive travel services.

Potential competitive advantages for our agency include personalized customer service, unique travel packages, expertise in niche markets, and strong relationships with reputable service providers.

Understanding the strengths and weaknesses of competitors is crucial for crafting strategies that emphasize our unique selling propositions and foster customer loyalty.

Competitive Advantages

Our travel agency's competitive edge lies in our personalized approach to crafting travel experiences that resonate with individual client preferences.

We offer tailored travel solutions, from adventure tours to luxury getaways, ensuring that each trip is a perfect fit for our clients' desires and budgets.

Our dedication to customer service excellence allows us to build lasting relationships with our clients, securing repeat business and referrals.

We also pride ourselves on our insider knowledge of destinations, which enables us to provide exclusive experiences not readily available through other channels.

You can also read our articles about: - how to start a travel agency: a complete guide - the customer segments of a travel agency - the competition study for a travel agency

The Strategy

Development plan.

Our three-year development plan for the travel agency is designed to cater to the evolving needs of modern travelers.

In the first year, we will concentrate on building a robust online presence and developing personalized travel packages that cater to niche markets, including eco-tourism and adventure travel.

The second year will focus on establishing partnerships with airlines, hotels, and tour operators to offer exclusive deals and expanding our service offerings to include corporate and group travel.

In the third year, we aim to enhance our customer service with the introduction of a mobile app for itinerary management and real-time travel assistance, as well as exploring the possibility of opening branch offices in key cities.

Throughout this period, we will remain dedicated to providing exceptional travel experiences, maintaining strong customer relationships, and staying ahead of industry trends.

Business Model Canvas

The Business Model Canvas for our travel agency targets a diverse range of customers, from solo travelers and families to corporate clients and adventure seekers.

Our value proposition is centered on delivering tailor-made travel experiences, exceptional customer service, and competitive pricing.

We offer our services through a user-friendly online platform, complemented by personalized consultation from our travel experts.

Key activities include travel planning, booking management, and customer support.

Our revenue streams are generated from service fees, commission from partners, and premium travel package sales, while our costs are associated with marketing, technology infrastructure, and staff salaries.

Find a complete and editable real Business Model Canvas in our business plan template .

Marketing Strategy

Our marketing strategy is built on creating memorable travel experiences and establishing a reputation for reliability and customer satisfaction.

We plan to engage with our target audience through storytelling and sharing travel success stories across various digital platforms.

Partnerships with travel influencers and the use of targeted advertising will help us reach a wider audience.

We will also offer loyalty programs and referral incentives to encourage repeat business and word-of-mouth recommendations.

Lastly, attending travel expos and networking events will allow us to build industry relationships and stay connected with market trends.

Risk Policy

Our risk policy focuses on mitigating risks associated with travel disruptions, customer satisfaction, and industry volatility.

We will offer flexible booking options and comprehensive travel insurance to protect our clients against unforeseen events.

Regular training for staff on the latest travel advisories and safety protocols will ensure informed and safe travel planning.

Prudent financial management and maintaining a diversified portfolio of travel products will help us navigate economic fluctuations.

We will also secure liability insurance to cover any potential travel-related disputes, prioritizing the safety and satisfaction of our clients.

Why Our Project is Viable

We are committed to launching a travel agency that adapts to the dynamic preferences of today's travelers.

With our focus on personalized experiences, customer care, and strategic partnerships, we are poised to capture a significant share of the travel market.

We are enthusiastic about making travel planning seamless and enjoyable, contributing to memorable journeys for our clients while growing a successful business.

We are flexible in our approach and ready to adapt to the ever-changing travel landscape, looking forward to a bright future in the travel industry.

You can also read our articles about: - the Business Model Canvas of a travel agency - the marketing strategy for a travel agency

The Financial Plan

Of course, the text presented below is far from sufficient to serve as a solid and credible financial analysis for a bank or potential investor. They expect specific numbers, financial statements, and charts demonstrating the profitability of your project.

All these elements are available in our business plan template for a travel agency and our financial plan for a travel agency .

Initial expenses for our travel agency include securing a prime location for our office, investing in robust travel booking software, creating an engaging website for online reservations, obtaining the necessary licenses and insurance, training staff on various travel destinations and customer service excellence, as well as costs related to brand creation and launching targeted marketing campaigns to reach our ideal clientele.

Our revenue assumptions are based on a thorough analysis of the travel market, considering trends in tourism, consumer vacation spending habits, and the unique value proposition of our personalized travel planning services.

We anticipate progressively increasing sales, starting modestly and growing as the reputation of our travel agency strengthens and our customer base expands.

The projected income statement indicates expected revenues from our travel booking commissions, service fees, and customized travel packages, minus the costs of operations (staff wages, office rent, marketing, utilities, etc.).

This results in a forecasted net profit essential for assessing the long-term viability of our travel agency.

The projected balance sheet reflects assets specific to our business, such as office equipment, software, and prepaid travel inventory, and liabilities including debts and anticipated operational expenses.

It shows the overall financial health of our travel agency at the end of each fiscal period.

Our projected cash flow budget details incoming and outgoing cash flows, allowing us to anticipate our financial needs at any given time. This will enable us to manage our finances effectively and maintain a healthy cash reserve.

The projected financing plan lists the specific financing sources we plan to use to cover our startup expenses, such as business loans, investor capital, or personal savings.

The working capital requirement for our travel agency will be closely monitored to ensure we have the necessary funds to finance our daily operations, including marketing efforts, office expenses, and staff salaries.

The break-even point specific to our project is the level of sales needed to cover all our costs, including startup expenses, and begin generating a profit.

It will indicate when our business is expected to become financially sustainable.

Performance indicators we will track include the profit margin on our travel packages, the customer satisfaction rate to gauge service quality, the liquidity ratio to assess our ability to cover short-term obligations, and the return on investment to measure the efficiency of our capital invested in the agency.

These indicators will help us evaluate the financial health and overall success of our travel agency.

If you want to know more about the financial analysis of this type of activity, please read our article about the financial plan for a travel agency .

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How to Start a Travel Agency

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How To Start a Travel Agency

How to start a travel agency faqs, helpful slideshows, videos & images.

• Additional Resources in the Travel Agency Industry

Starting a travel agency can be very profitable. With proper planning, execution and hard work, you can enjoy great success. Below you will learn the keys to launching a successful travel agency.

Importantly the most important step in starting a travel agency is to complete your business plan. To help you out, you should download Growthink’s Ultimate Business Plan Template here.

Download our Ultimate Business Plan Template here

17 Steps To Start a Travel Agency

• Decide Which Type of Travel Agency To Open
• Choose the Name for Your Travel Agency
• Develop Your Travel Agency Business Plan
• Choose the Legal Structure for Your Travel Agency
• Secure Startup Funding for Your Travel Agency (If Needed)
• Secure a Location for Your Business
• Register Your Travel Agency With the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Insurance for Your Travel Agency
• Buy or Lease the Right Travel Agency Business Equipment
• Develop Your Travel Agency Marketing Materials
• Purchase and Setup the Software Needed to Run Your Travel Agency
• Start Building Partnerships
• Hire Employees (If Needed)
• Open for Business

1. Decide Which Type of Travel Agency You Want To Open

There are a few decisions to make when choosing which type of travel agency you want to open. You might want to consider starting a specialty travel agency focused on business travel or another specific niche market, or a more general agency that works with all types of travelers.

You will also need to decide if you want to operate an independent agency or join a host agency or franchise.

An independent agency will give you the most freedom and flexibility when it comes to running your business and is a popular choice for travel agents who work from home but can be more challenging to get off the ground.

A host agency is a business that works with independent agents and can provide them with resources, partnerships, and clients. You will often have to pay a fee to join a host agency.

Finally, joining a franchise will give you access to more training and support, but will also require fees to join and may limit how you run your business. If you choose to go the franchise route, be sure to check with your desired franchise to determine what they provide before completing steps like picking a name or building a website.

Deciding whether or not to join a host agency or franchise really depends on how much training and support you need, and whether or not you feel that the fees that a host agency or franchise will charge are worth it to you.

2. Choose the Name for Your Travel Agency

The next step to starting a travel agency is to choose your business’ name.

This is a very important choice since your company name is your brand and will last for the lifetime of your business. Ideally, you choose a name that is meaningful and memorable. Here are some tips for choosing a name for your travel agency:

• Make sure the name is available. Check your desired name against trademark databases and your state’s list of registered business names to see if it’s available. Also check to see if a suitable domain name is available.
• Keep it simple. The best names are usually ones that are easy to remember, pronounce and spell.
• Think about marketing. Come up with a name that reflects the desired brand and/or focus of your software company.

3. Develop Your Travel Agency Business Plan

One of the most important steps in starting a travel agency is to develop your travel agency business plan . The process of creating your plan ensures that you fully understand your market and your business strategy. The plan also provides you with a roadmap to follow and if needed, to present to funding sources to raise capital for your business.

The following are the key elements of a business plan :

• Executive Summary – this section should summarize your entire business plan so readers can quickly understand the key details of your travel agency.
• Company Overview – this section tells the reader about the history of your travel agency and what type of travel agency you operate. For example, are you a business travel agency or a special interest travel agency?
• Industry Analysis – here you will document key information about the travel industry. Conduct market research and document how big the industry is and what trends are affecting it.
• Customer Analysis – in this section, you will document who your ideal or target customers are and their demographics. For example, are they in a specific income bracket?
• Competitive Analysis – here you will document the key direct and indirect competitors you will face and how you will build competitive advantage.
• Marketing Plan – your marketing plan should address the 4Ps: Product, Price, Promotions and Place.
• Product : Determine and document what products/services you will offer
• Prices : Document the prices of your products/services
• Place : Where will your business be located and how will that location help you increase sales?
• Promotions : What promotional methods will you use to attract customers to your travel agency? For example, you might decide to use pay-per-click advertising, public relations, search engine optimization and/or social media marketing.
• Operations Plan – here you will determine the key processes you will need to run your business operations. You will also determine your staffing needs. Finally, in this section of your plan, you will create a projected growth timeline showing the milestones you hope to achieve in the coming years.
• Management Team – this section details the background of your company’s management team.
• Financial Plan – finally, the financial plan answers questions including the following:
• What are your travel agency startup costs?
• How will your travel agency make money?
• What are your projected sales and expenses for the next five years?
• Do you need to raise funding to launch your business?

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4. choose the legal structure for your travel agency.

Next you need to choose a legal business structure for your travel agency and register it and your business name with the Secretary of State in each state where you operate your business.

Below are the five most common legal structures:

A sole proprietorship is a business entity in which the owner of the travel agency and the business are the same legal person. The owner of a sole proprietorship is responsible for all debts and obligations of the business. There are no formalities required to establish a sole proprietorship, and it is easy to set up and operate. The main advantage of a sole proprietorship is that it is simple and inexpensive to establish. The main disadvantage is that the owner is liable for all debts and obligations of the business.

2) Partnerships

A partnership is a legal structure that is popular among small businesses. It is an agreement between two or more people who want to start a travel agency together. The partners share in the profits and losses of the business. The advantages of a partnership are that it is easy to set up, and the partners share in the profits and losses of the business. The disadvantages of a partnership are that the partners are jointly liable for the debts of the business, and disagreements between partners can be difficult to resolve.

3) Limited Liability Company (LLC)

A limited liability company, or LLC, is a type of business entity that provides limited liability to its owners. This means that the owners of an LLC are not personally responsible for the debts and liabilities of the business. The advantages of an LLC for a travel agency include flexibility in management, pass-through taxation (avoids double taxation as explained below), and limited personal liability. The disadvantages of an LLC include lack of availability in some states and self-employment taxes.

4) C Corporation

A C Corporation is a business entity that is separate from its owners. It has its own tax ID and can have shareholders. The main advantage of a C Corporation for a travel agency is that it offers limited liability to its owners. This means that the owners are not personally responsible for the debts and liabilities of the business. The disadvantage is that C Corporations are subject to double taxation. This means that the corporation pays taxes on its profits, and the shareholders also pay taxes on their dividends.

5) S Corporation

An S Corporation is a type of corporation that provides its owners with limited liability protection and allows them to pass their business income through to their personal income tax returns, thus avoiding double taxation. There are several limitations on S Corporations including the number of shareholders they can have among others. Once you register your travel agency, your state will send you your official “Articles of Incorporation.” You will need this among other documentation when establishing your banking account (see below). We recommend that you consult an attorney in determining which legal structure is best suited for your company.

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5. Secure Startup Funding for Your Travel Agency (If Needed)

In developing your travel agency plan, you might have determined that you need to raise funding to launch your business.

If so, the main sources of funding for a travel agency to consider are personal savings, family and friends, credit card financing, bank loans, crowdfunding and angel investors. Angel investors are individuals who provide capital to early-stage businesses. Angel investors typically will invest in a travel agency that they believe has high potential for growth.

6. Secure a Location for Your Business

Operating a travel agency gives you some flexibility in where you do business. If you plan to work from your own home, then you will not need to find an office space to rent or buy. Even if you hire other team members, you can still all work remotely if you choose. You can meet with clients virtually from home, or have them come into an office location.

If you do want to find another physical location for your travel agency, consider:

• Driving around to find the right areas while looking for “for lease” signs
• Contacting a commercial real estate agent
• Doing commercial real estate searches online
• Telling others about your needs and seeing if someone in your network has a connection that can help you find the right space

7. Register Your Travel Agency With the IRS

Next, you need to register your business with the Internal Revenue Service (IRS) which will result in the IRS issuing you an Employer Identification Number (EIN).

Most banks will require you to have an EIN in order to open up an account. In addition, in order to hire employees, you will need an EIN since that is how the IRS tracks your payroll tax payments.

Note that if you are a sole proprietor without employees, you generally do not need to get an EIN. Rather, you would use your social security number (instead of your EIN) as your taxpayer identification number.

If you’d like to quickly and easily complete your business plan, download Growthink’s Ultimate Business Plan Template and complete your plan and financial model in hours.

8. Open a Business Bank Account

It is important to establish a business bank account in your travel agency’s name. This process is fairly simple and involves the following steps:

• Identify and contact the bank you want to use
• Gather and present the required documents (generally include your company’s Articles of Incorporation, driver’s license or passport, and proof of address)
• Complete the bank’s application form and provide all relevant information
• Meet with a banker to discuss your business needs and establish a relationship with them

9. Get a Business Credit Card

You should get a business credit card for your travel agency to help you separate personal and business expenses.

You can either apply for a business credit card through your bank or apply for one through a credit card company.

When you’re applying for a business credit card, you’ll need to provide some information about your business. This includes the name of your business, the address of your business, and the type of business you’re running. You’ll also need to provide some information about yourself, including your name, Social Security number, and date of birth.

Once you’ve been approved for a business credit card, you’ll be able to use it to make purchases for your business. You can also use it to build your credit history which could be very important in securing loans and getting credit lines for your business in the future.

10. Get the Required Business Licenses and Permits

Every state, county and city has different business license and permit requirements.

Nearly all states, counties and/or cities have license requirements including:

• General Business License – This license is required for most any business operating in the United States.
• Seller of Travel License – A Seller of Travel License allows you to legally sell travel services such as airline tickets, hotel rooms, and car rentals.
• Permits To Sell Insurance – Some states may require travel agents to obtain a special license to sell travel insurance.

Licenses and permits required for travel agencies vary from state to state, so be sure to check your state and local guidelines to determine exactly what you need.

11. Get Business Insurance for Your Travel Agency

Business insurance is important for any business, and a travel agency is no exception. There are several types of insurance that a travel agency should consider, including:

• General Liability Insurance – This insurance protects your agency from lawsuits alleging bodily injury, property damage, personal injury, and advertising injury that occur on your premises or because of your business operations.
• Professional Liability Insurance – This insurance protects your agency from claims arising out of errors or omissions in the performance of professional services.
• Product Liability Insurance – This insurance protects your agency from claims arising out of injuries or damages that occur because of a defect in a product that your agency sells or rents.
• Errors and Omissions – This insurance protects your agency from claims alleging that you have failed to provide the services that you promised to provide, or that you have provided those services in a substandard way.

Find an insurance agent, tell them about your business and its needs, and they will recommend policies that fit those needs.

12. Buy or Lease the Right Travel Agency Business Equipment

Most travel agencies don’t need much equipment to start. All you really need is a computer, business phone line, printer, and fax machine. If you are operating from a location outside of your home with additional employees, you might also need to provide basic office equipment and reception furniture.

13. Develop Your Travel Agency Marketing Materials

Marketing materials will be required to attract and retain customers to your travel agency.

The key marketing materials you will need are as follows:

• Logo – Spend some time developing a good logo for your travel agency. Your logo will be printed on company stationery, business cards, marketing materials and so forth. The right logo can increase customer trust and awareness of your brand.
• Website – Likewise, a professional travel agency website provides potential customers with information about the products and/or services you offer, your company’s history, and contact information. Importantly, remember that the look and feel of your website will affect how customers in your target market perceive you. Make sure to optimize your website so that you rank well on search engines.
• Social Media Accounts – Establish social media accounts in your company’s name. Accounts on Facebook, Twitter, LinkedIn and/or other social media networks will help customers and others find and interact with your travel agency. Social media is also a great place to run promotions and generate new business.

14. Purchase and Setup the Software Needed to Run Your Travel Agency

Travel agencies require software that can do a few things.

First, you will need software for booking and making reservations. Popular options include Rezdy and TravelPerk.

Next, you will want accounting software to handle invoicing, commissions, and any bookkeeping tasks. You can use more general software like Quickbooks or FreshBooks.

Having software like TripActions or TripCreator that can quickly create itineraries for your clients is also very helpful.

Lastly, a good customer relationship management tool will help you stay in touch with existing customers and bring them back in for more services. Many businesses use options like HubSpot and ActiveCampaign.

Be sure to check the features of any software that interests you as some might do more than one of these things. Research the software that best suits your needs, purchase it, and set it up.

15. Start Building Partnerships

Before you start your own agency, it’s important to have industry relationships in place. You’ll need a travel wholesaler, as well as preferred supplier agreements with airlines, hotels, car rental companies, and tour operators. These partnerships will give you access to the best rates and products so that you can offer your clients top-notch service.

You can start building relationships by attending trade shows and other networking events, joining online communities for travel industry professionals, and simply reaching out. If you decide to join a host agency or franchise, you may already have access to some partnerships.

Another great way to find support is to join one of the popular travel associations. Groups like the American Society of Travel Advisors require some fees to join but give you access to training and other helpful resources.

16. Hire Employees (If Needed)

If you plan to run a small travel agency by yourself, then you will not need to hire additional travel agents or other team members. A larger travel agency will need a few different types of employees. You might need a sales team to book trips and sell products, customer service representatives to assist clients, and marketing professionals to promote your company and generate new leads.

If you do need additional employees, consider posting job openings in the local community or online. Make sure that your candidates’ backgrounds are a good fit for the job descriptions you create and that the individual is a good match for the brand you want to build.

17. Open for Business

You are now ready to open your own travel agency. If you followed the steps above, you should be in a great position to build a successful business and know everything you need about how to start your own travel agency. Below are answers to frequently asked questions that might further help you.

How to Finish Your Travel Agency Business Plan in 1 Day!

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With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

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Where Can I Download a Travel Agent Business Plan PDF?

You can download our travel agent business plan PDF template here. This is a business plan template you can use in PDF format.

How Can I Start a Travel Agency With No Experience?

One of the first things you should do is research the travel industry and important travel agency trends. You can also speak with travel agents and travel agency owners to get their insights and helpful tips. In addition to degrees from 2 and 4-year colleges that focus on travel and tourism, there are also a number of shorter online training programs for getting a travel agent certificate.

What Type of Travel Agency Is Most Profitable?

There is no definitive answer as to which type of travel agency is most profitable. However, many experts agree that the most successful travel agencies are those that can offer a comprehensive range of services. This may include everything from booking airfare and hotel reservations to arranging car rentals and guided tours. By being able to provide a one-stop shopping experience for their clients, travel agents can increase the likelihood of completing a sale and improving customer satisfaction.

How Much Does It Cost To Start a Travel Agency?

In order to start a travel agency, you will need to invest money in licenses, marketing, and travel software. The cost of starting a travel agency can range from a few thousand dollars to over $100,000, so it's important to do your research before getting started.

One of the biggest expenses you'll incur when starting a travel agency is the cost of purchasing or licensing travel software. This software is essential for managing your reservations and bookings, so it's important to choose a reputable provider. Other costs you'll need to consider include website development and design, marketing materials, and employee salaries (if you're not doing all the work yourself).

Before starting a travel agency, be sure to do your research and crunch the numbers to make sure it's the right decision for you. There are many things to consider before making such a large investment.

Is It Hard To Start a Travel Agency?

Generally speaking, starting a travel agency is not difficult. Your biggest early challenges when starting your own travel business will most likely be developing industry relationships, generating clients, and funding your launch. Following the steps we have outlined will help you get started successfully.

What Are the Ongoing Expenses for a Travel Agency?

There are a few key things to keep in mind when it comes to the expenses of running a travel agency. The three main areas of ongoing costs will be staffing, marketing, and operations. Staffing costs can vary greatly depending on the size of your agency and the number of travel agents and other employees you have. Marketing costs can range from online advertising and website development to tradeshows and print advertising. And finally, operational costs can include everything from licensing and insurance fees to office supplies and rent. By understanding these three areas of expense, you can create a budget for your travel agency that is realistic and sustainable.

S ome key costs to keep in mind include:

• Wages – 35.4% of the industry’s revenue is allocated to wages.
• Depreciation – Only 0.4% of the industry revenue is accounted for depreciation.
• Other – Advertising and marketing costs account for 4.3% of revenue.

How Does a Travel Agency Make Money?

There are numerous ways for a travel agency to make money. The most common way is through commissions on airline tickets, hotel rooms, and other travel-related services. Travel agencies can also charge a fee for their services. Some agencies may also sell souvenirs or other travel-related products.

Is Owning a Travel Agency Profitable?

Owning a travel agency can certainly be profitable, but how much profit your business earns will depend on a variety of factors, including the size and location of the business, the type of services offered, and the level of competition in the area.

How Much Do Travel Agency Operators Make?

A travel agency manager's salary ranges from $30,000 to $78,000 per year.

Why Do Travel Agencies Fail?

A travel agency can fail for a number of reasons. One reason is that they may not be able to generate enough business. This could be due to a poor marketing strategy, or because the agency is not offering appealing products or services. Another reason a travel agency might fail is if they are not well managed. This could lead to financial instability and a loss of customers. Finally, an agency might fail if it is not properly organized and lacks clear goals. Without a strong plan in place, it can be difficult to succeed in the travel industry.

How Big Is the Travel Agency Industry?

There are 11,108 travel agencies in the U.S. and they generated $34.0 billion in revenue last year. This represents an annual growth rate of 2.5% over the last five years.

What Are the Key Segments of the Travel Agency Industry?

Travel agencies are segmented by their bookings. The main segments of the industry are tour and packaged travel bookings, followed by cruise bookings and International and domestic airline bookings. Accommodation bookings and other bookings account for the remainder of the industry’s revenue.

What External Factors Affect the Travel Agency Industry?

A number of factors affect the performance of the travel agency industry. These drivers include:

• International Trips By US Residents - A lot of international trips by US residents are made through travel agencies. This year, international trips are expected to increase as well as the travel agency industry.
• Consumer Spending - Travel spending is counted as a consumer expense. An increase in the consumer’s tendency to spend money affects the industry positively.
• Domestic Trips By US Residents - Domestic trips are also booked through travel agencies. The travel agency industry is affected by domestic trips in the US in the same way as international trips.
• Percentage of Services Conducted Online - Availability of online travel arrangements reduces the number of consumers booking their travels in actual offices of travel agencies. This year, there’s been an increase in services conducted online.
• Consumer Confidence Index - High consumer confidence index also means that consumers have a higher tendency to spend on travel.

What Are the Key Customer Segments in the Travel Agency Industry?

Leisure travelers are, by far, the top key customer segment for the travel agency industry. Corporate travelers make up the next largest segment of the market and other travelers account for just 4%.

Social Media Tip for Travel Agents

Tips for Finding a Good Travel Agent

Travel Tips & Jobs: How Do Travel Agencies Work?

Top 5 Trends Shaping the Travel Industry Today

21 Tips for Marketing Your Travel Company Online

For additional information on the travel agency market, consider these industry resources:

• US Census Bureau: www.census.gov
• Office of Travel & Tourism Industries: www.tinet.ita.doc.gov
• Travel Pulse: www.travelpulse.com
• American Society of Travel Agents: www.asta.org
• Travel Agency Mavericks

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Travel Tour Agency Sample Business Plan

Start-up your travel tour agency with a business plan similar to this detailed example..

Related Topics

Car wash business plan, event planning sample business plan, coffee shop business plan.

Starting your own travel tour agency but don’t know how to compile your business plan? Here’s an example of a dummy company’s business plan to get you thinking about how to create yours.

Travel Tour Agency Business Plan

1. executive summary.

The tourism industry has undergone rapid growth of unsurpassed nature over the last several decades. This has mainly been due to the advent of a ‘borderless’ world and increased information dissemination about the majestic sceneries throughout the world, with the southern African region being no exception.

We are on the brink of penetrating a lucrative market in a rapidly growing industry. The current trend towards an increase in the number of tourists entering the country presents an opportunity for Sephats Tours to penetrate the market.

An opportunity for Sephats Tours’ success exists because the national tourism industry is growing at a rapid pace annually.

Sephats Tours is poised to take advantage of this growth and moderate competition in the city travel portion of the industry, with a dedicated and experienced staff, excellent networking, and effective management and marketing. Sephats Tours intends to provide travel and adventure packages to tourists primarily in the Southern region, but also the whole of Botswana.

Services and products provided by Sephats will initially include pre-arranged tours, custom packages according to clients specifications, travel consultation, and as time progresses making reservations for lodging amongst other related services. Sephats Tours seeks to differentiate itself as the premier adventure mobile operator in the greater Gaborone area.

Our services will be positioned very carefully: They will be of extremely high quality, comfortable, informative and tailored to the clients needs such that they will enable individuals to have a greater appreciation of the natural environment and its intricacies.

Our marketing strategy will be based mainly on ensuring customers know about our existence and the service(s) we fulfill. Hence our intention is to make the right information available to the right target customers. This will be done through implementing a market penetration strategy that will ensure that we are well known and respected in the tourism industry.

We will ensure that our prices take into consideration peoples’ budgets, that these people appreciate the service(s), know that it exists, and how to contact us. The marketing will convey the sense of quality in every picture, every promotion, and every publication.

Our promotional strategy will involve integrating advertising, events, personal selling, public relations, direct marketing and the Internet, details of which are provided in the marketing section of this plan.

It is important to recognise that we do not intend to just take individuals on sightseeing excursions, but also to ensure that they appreciate nature through informative briefings on objects’ origins.

This element will assist in differentiating us from our competitors and contribute towards the development of a sustainable competitive advantage.

Hence we need to engage the right people in the right place at the right time if we are to ensure optimum growth. We intend to develop our team so that our people can grow as the company grows – a mutually beneficial relationship.

We project sales to increase from more than P350,000 (Botswana Pula [P]) the first year to more than P556,500 the second, and P630,000 in the third year.

In a nutshell, we do not just intend to market and sell our service, but to market and sell travel solutions and a total-quality environment. This will ensure we establish a reputable corporate image.

1. Objectives

Our business strategy will revolve around the need to provide quality service to our various target customers, in the process fully satisfying their needs. This shall be undertaken through recruitment of a professional team and the provision of good quality custom-designed travel packages, catering to the client’s particular needs.

With time our marketing campaign will increase the awareness of our services in the various market segments we shall be targeting. This is particularly so with the organisation looking at establishing a clear advantage(s) in an increasingly competitive market.

We will provide clients with the opportunity to focus on their core activities whilst their transportation side needs are fully satisfied. Marketing material shall be professionally done so as to be reflective of our intended image and reputation.

We shall position ourselves as a quality commercial transportation operator that provides customer-need fulfillment, enjoyment, reliability and a good image. We intend to establish a good rapport with all the relevant stakeholders, especially hotels and travel agents.

We also intend to have well-designed brochures and other promotional material that will enable clients to have an understanding of the types of services we offer and advantages of utilising them.

In addition well-done, informative brochures, fact sheets and business cards often have a triggering effect on clients contemplating utilising our services. Hence this will undoubtedly generate increased sales of our service.

In summary we intend to attain the following objectives:

• Continuously provide enjoyable quality excursions/trips on time and on budget.
• Develop enthusiastically satisfied customers all of the time.
• Establish a market presence that assures short-term and long-term profitability, growth and success.
• We are fully committed to supporting growth and development in the tourism and overall economy of Botswana.
• Contribute positively to our communities and our environment.

Internally we intend to create and nurture a healthy, exuberant, respectful, and enjoyable environment, in which our employees are fairly compensated and encouraged to respect the customer and the quality of the service we intend to provide.

In addition follow-up will be mandatory so as ensure customer satisfaction and make any improvements as recommended by the customers in future.

We seek fair and responsible profit, enough to keep the company financially healthy for the short and long term, and to fairly remunerate employees for the work and effort.

3. Keys to Success

The keys to Sephats Tours success will undoubtedly be effective market segmentation through identification of several niche markets and implementation strategies.

Along these lines the company intends to implement advertising, personal selling and direct marketing strategies to the target markets.

Our personal selling marketing strategies will rotate around keeping in touch with hotels and travel agencies for major customers, and advertising for more individual customers.

Hence our key success factors will include the following:

• Excellence in fulfilling the promise: We intend to offer completely enjoyable, comfortable and informative travel excursions that will ensure that travelers are thoroughly satisfied and appreciative at the end of their trip.
• Timely response to customers’ requests: We cannot afford to delay our clients for whatever reason, as this will have a negative bearing on our image and reputation, including future business. Hence we need to be continually communicating with the client, including hotels and lodges so as to ensure that we are constantly available to the client meeting their expectations.
• Solid and fruitful strategic alliances : Considering the nature of our services and our relative infancy on the market, we realise the importance of establishing and maintaining fruitful strategic alliances with various stakeholders, including hotels, lodges, and travel agencies, amongst others, so as be assured of a constant flow of customers, fulfilling their needs at every opportunity.
• Marketing know-how: As a relatively new company on the market there will be a need to aggressively market our business and the services we provide so as to be continuously at the top of our prospective clients minds. This will also act as a temporary deterrent for companies contemplating entering our market. Advertising shall be undertaken on a regular basis.

2. Company Summary

Sephats Tours intends to provide individual and group travel to leisure clients.

Services and products provided by Sephats will initially include pre-arranged tours, custom packages according to clients specifications, travel consultation, and as time progresses making reservations for lodging amongst other related services.

Sephats Tours seeks to differentiate itself as the premier adventure travel company in the greater Gaborone area.

As it grows it will take on people and expand into related markets and services. It will also look for additional leverage by establishing relationships and representations with appropriate strategic allies.

1. Company Ownership

Sephats Tours is a Private Limited company incorporated at the Registrar of Companies through the foresight and vision of Mr. X and Mrs. Y. It is a 100% wholly owned Botswana firm.

2. Start-up Summary

Thus far the directors have contributed one hundred and sixty seven thousand pula (P167,000) to purchase a Mercedes Benz mini bus currently in its possession and P30,000 for cash expenses. Total start-up expenses covered (including legal costs, business plan compilation, license costs and related expenses) come to approximately P5,000.

3. Company Locations and Facilities

At present the company offices are located at Plot Number 28338, Block 3, Belabela road opposite Gaborone Television Station, near Hill Crest Primary School.

However, as time progresses the intention is to move into more accessible and attractive offices in a prime area. This regardless of the fact that our type of business is not too dependent on office location and size.

3. Services

Sephats Tours is a travel company that intends to deliver leisure travel excursions to customers. Sephats intends to guide customers in selecting a trip(s) based on pre-defined vacation criteria. This analysis will be based on user profiles, set by the consumers, which includes preferences such as:

• Activities sought
• Destination, and
• Time of Travel

A traveler will hence be able to select areas of interest based on their preferences and subsequently identify destinations to visit.

The intention is to provide customers with access to exclusive travel destinations, service to fully appreciate destinations through information packages, not just sight-seeing, and access to special interest travel according to the group’s/individual’s preferences.

1. Competitive Comparison

There are presently few competitors offering services similar to ours. However considering the pace of change and current growth rate of the tourism industry luring many companies into the sector, this may be short-lived.

Hence there will be a need to not only firmly establish ourselves on the market, but also strongly differentiate ourselves from these other businesses. However on a broader scale our competition comes in several forms:

The most significant competition are hotels and travel agencies offering travel excursions to their clients. They undertake this service in order to establish a competitive advantage over their competitors.

However, instead of directly competing with them we intend to establish good working relationships in the form of strategic alliances such that we are able to offer the service for their clients and thus enabling them to concentrate on their core activities whilst ensuring customers are fully satisfied.

Our key advantage in this regard will be our specialty of the service and hence wide knowledge ensuring customer satisfaction at all times as well as flexibility in providing the service. Existing hotels, lodges and travel agencies may identify the opportunity to diversify into our intended services utilising their current client database.

Naturally, existing clients will be inclined towards utilising these familiar companies due to the fact that a good relationship may have already been nurtured over the years during their business dealings.

This presents a potential challenge to us, as we need to aggressively market our services and expertise in the field. Existing safari operators that mainly focus on the remote environs such as Maun and Kasane are at times able to compromise, offering excursions in and around Gaborone, though very rare. Hence we intend to focus on this market. An analysis of competition is provided in the Market Analysis section of this plan.

2. Service Description

Sephats Tours intends to offer the service and knowledge a discerning leisure traveler seeks whilst on vacation, with the intention of seeing and appreciating the numerous sights in the area.

Keeping in mind the comforts of a tourist, our fleet shall be very well maintained and designed as per customer standard and expectations. However not wanting to limit ourselves we intend to be open to special hire by churches, organisations, groups, schools and sports teams, amongst other related groups.

The game reserves and lodges that we intend to be our main destinations are:

• Mokolodi Nature Reserve
• Goborone Game Reserve
• Gaborone Dam
• The Oodi and Mochudi Craft Villages
• Kolobeng and Thamaga
• Khutse Game Reserve

Below is a briefing of several places of interest and their various attractions.

• Mokolodi Nature Reserve: Set in a wide valley just 10 minutes drive from the city, this scenic reserve offers a well-developed network of game drives and stone and thatch chalets overlooking a water hole. Mokolodi also offers the rare opportunity to track rhino or to walk through the bush with young elephants. These excursions offer excellent photographic opportunities. Evening drives can include a bush braai giving visitors the chance to see the more unusual nocturnal creatures.
• Gaborone Game Reserve: This 550 hectare reserve provides an ideal get-away for tourists who can see a remarkable range of wildlife in the park including rhino, eland, zebra, gemsbok, wildebeest, kudu, ostrich and impala, all on well-maintained bush roads that are designed for easy access. Bird watching in the Gaborone Game Reserve is excellent, particularly along the eastern edge, bounded by Notwane River, and it typifies the incredible diversity of bird life to be found throughout the Gaborone area.
• Gaborone Dam: On the south bank a remarkably rich variety of bird and wildlife can be seen, including herds of impala, kudu and scuttling families of warthog. New picnic sites, which are currently under development will also provide places of interest. The Gaborone Yacht Club is the main attraction on the dam with its swimming pool, bar and wide verandah overlooking the water off a rocky koppie in the middle of the dam which often becomes an island in the wet season.
• The Oodi and Mochudi Craft Villages: In Oodi the main attraction will be the Lenstwe-la-Oodi weavers. In Mochudi apart from traditionally decorated Setswana architecture, the tourists will find the most southerly baobab trees in Botswana and traditional crafts including the Ithuteng Tin Workshop and Ikgabiseng handmade jewelery. The Phuthadikobo Museum in Mochudi will also be an attraction site.

Other sites will include Matsieng Foot Point, Gemsbok National Park, Mabuasehube Game Reserve, Legaga la ga Kobokwe, Central Kgalagadi Game Reserve, Nxaii Pan and Khama Rhino Sanctuary.

Integrating the above places of interest into our tours we intend to be offering the following tours:

• “Capital Crusade” – City Tour: This will be a professionally guided tour around the city centre including visits to the Main Mall, Finance Mall, National Museum, City Council Library, Gaborone Station, and House of Parliament including others. These tours shall be eye opening in terms of the normal Botswana town folk life style providing knowledge and information throughout the guided tour. Included in this package will be refreshments and information folders detailing the main sites and history of Gaborone. This tour will cover approximately 50 kilometers taking about half a day to complete. Cost: PX per person.
• “Cultural Enrichment” – Cultural Tour: This shall involve tours to the main historical and cultural sites in and around Gaborone including Mokolodi Nature Reserve, Oodi and Mochudi Craft Villages, including the cultural dances. This tour shall reveal the ‘Kgotla’ – cultural villages, traditional paintings and art, as well as the traditional lifestyle. Obviously baobabs will make for good viewing. The tour package will include an information folder, guided tour and refreshments. This tour will cover approximately 200 kilometers taking the whole day to complete. Cost: PY per person.
• “The Essence: Past & Present” – City & Cultural Tour: This will be a combination of the cultural tour and city centre excursion. This will be marketed as a “total package” enabling tourists with very little time to appreciate the Botswana lifestyle, both in the present and past. This tour will invariably take the whole day and cover approximately 250 kilometres. The tour package will include the information folder, guided tour, refreshments and a picnic lunch. Cost: PZ per person.

3. Macro-environment

At a large scale research demonstrates that tourism is undergoing a rapid growth of unsurpassed nature. Generally there is a trend towards shorter stays but increased visits, as individuals strive to experience as many cultures as possible, including seeing as many attractions as possible.

Increasingly Botswana is being marketed as “one of the few places in Africa where game sanctuaries have remained completely unspoiled.

A destination that unlocks the mystery of nature – an oasis in a wilderness which is an ideal escape for nature lovers. Very little of this fascinating country has seen human habitation – this is true Africa in all her remoteness and authenticity.

With such marketing in place the number of tourists entering the country is bound to increase, presenting a larger potential market for ourselves. This potential market is what we seek to tap.

4. Sales Literature

The business will begin with a general corporate brochure establishing its position on the market. This brochure will be developed as part of the start-up expenses including the business cards and Company Profile, mainly for the large organisations that often recommend services to potential customers.

Compliment slips are also intended so as to raise awareness of the company and its services. We also intend to have information pamphlets that will provide information on our various tour packages. Literature and mailings for the initial market forums will be very important.

5. Fulfillment

The key fulfillment and delivery will be provided by the employees of the company. The real core value will be professional expertise, provided by a combination of expertise, experience, hard work, and education (in that order). Hence we intend to ensure that the work we undertake is always thorough and relevant to the clients’ needs.

We will turn to reputable companies for supplying the necessary individuals and groups for our services. Hence the need to establish good relationships with our strategic allies.

6. Technology

Sephats Tours will strive to ensure that it contains the latest, or extremely recent personal computer including relevant software so as to ensure that the company is continuously at the forefront in our market arena.

The one certainty in our industry is that technology will continue to evolve and develop, changing what we market as well as how we market it. Our aim will be to be aware of the implications of this new technology and utilizing it in our existing framework where possible. However it should be noted that as we are new on the market it will take some time before we have in place our own website and other multimedia presentations.

With time we also intend to have the latest and most efficient software in place to enable smooth operations.

7. Future Services

In putting the company together we have attempted to offer enough services to allow us to always be in demand by our customers and clients. The most important factor in developing future services/products is market need.

Our understanding of the needs of our target market segments shall be one of our competitive advantages. It is critical to our effort to develop the right new services. In the future, Sephats Tours intends to broaden its coverage by expanding into additional markets.

One of the main services it aims at providing is to become a destination management company that brings alive the magnificence of this country to the traveler. This will be done by co-coordinating the traveler’s entire experience from hotel bookings, safaris and tours, greeting and porter services, and to tour packages and incentives. However in doing so we will strive to ensure that it is compatible with the existing products and company personnel.

As time progresses the intention will to provide a Southern Africa tour package covering the whole of southern Africa.

4. Market Analysis Summary

We are today experiencing a rapid growth in the economy of unsurpassed nature. This has been brought about by, amongst other things, the relaxation of foreign exchange policies and macroeconomic policies geared towards attracting foreign investors into the country.

The fiscal and monetary policies of the government geared towards maintaining growth with social justice have largely contributed towards this, evidenced by our economy averaging a growth rate of 7% since 1990 – very high by international standards.

The current drive and emphasis by the government on diversification of the industrial base away from the minerals sector presents an opportunity for Sephats Tours to make a valuable contribution towards achieving this goal. Having undertaken a thorough and comprehensive research of the market we realized that there was a need for a tourist transport company that focuses on providing leisure excursions to tourists.

Though there are mobile operators currently on the market, some of whom have been in existence for a relatively long period of time, we believe that there is a market need for one that specializes on providing comfortable and enjoyable transport to tourists and visitors.

This, also considering the fact that, potentially Botswana’s richest natural resource, the tourism industry is becoming an increasingly important player in the economy and may in the long term prove even more valuable than mineral resources in earning foreign exchange.

Aware of the fact that operating in such a market is largely dependent on good networking, we intend to establish networks and strategic relationships with various hotels, lodges and travel agents to ensure a steady stream of clients.

However in so doing we intend to ensure that the service we provide is of extremely high quality and comfortable. Our initial overall target market share shall be 10% of the market, mainly focusing on the greater Gaborone area and southern Botswana.

We appreciate that entering such a market is not a ‘bed of roses’ and will require us establishing strong links with strategic partners as outlined previously. Hence we intend to implement an aggressive marketing strategy, well supported by the other business functions.

The above prognosis influenced our decision to enter the tourist transport industry.

1. Market Segmentation

We will be focusing on those foreign tourists seeking leisure travel and excursions whilst on vacation in Botswana, with the intention of letting them see and appreciate the numerous attractions in our country.

Though we realise that the majority of our tourists come from South Africa we shall be mainly targeting those from Europe and the Americas who often do not have transport or adequate knowledge about the country, unlike their South African counterparts who often do. Hence we shall be mainly targeting those who are not that mobile but wanting to see as many sites as possible.

These people often do not want to waste their money on hiring vehicles to move about by themselves, but instead want to be escorted around places of interest by a reliable source. Hence the need to professionally market ourselves and the services we provide, offering a service of uncompromised nature.

2. Target Market Segment Strategy

Our marketing strategy will be based mainly on making the right service(s) available to the right target customer. We will ensure that our services’ prices take into consideration organisations’ and peoples’ budgets, and that these people know that we exist, appreciate the value of our services, and how to contact us.

The marketing will convey the sense of quality in every picture, every promotion, and every publication. Our intension will be to target those individuals and groups looking for leisure activities and places to visit.

We realise the need to focus our marketing message and our service offerings. We need to develop our message, communicate it, and make good on it. The decision to establish strategic alliances with several hotels, lodges and travel agencies is aimed at tapping our target market effectively and efficiently.

2.1. Market Needs

Though the tourism sector has undergone rapid growth over the last decade the vast majority entering this sector have rushed to the North where we have the Okavango Delta, Chobe National Park, and other sites as attraction points.

Very few have focused on south and central Botswana. With this in mind we intend to exploit the untapped market in this area so as to provide our customers with a good service and realize our business objectives.

We understand that our target markets need more than just being shown the areas of interest but also to be informed about their significance and origins. Hence we don’t just intend to provide a service(s), but to provide one of unparalleled nature relative to the market.

2.2. Market Trends

Of all the uncertainty surrounding this industry, one fact is certain: tourism is here to stay. The only question is how large the industry will become and whether it can sustain, if not exceed, its current growth rate. However large the market ultimately becomes, the company strongly believes that travel will be an important component of this market place. Tourism statistics provide a reliable guide as to the size of the market.

According to the latest tourism statistics total arrivals for 1998 amounted to 1,351,798 representing an increase of approximately 12.65% from the previous year. Of the total arrivals in 1998 205,146 (15.2%) were holiday/tourists whilst 319,440 (23,6%) were visitors, both groups of which constitute our target market, totaling approximately 524,586 individuals.

Source: Tourism Statistics 1998 – Central Statistics Office .

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Travel Agency

Back to All Business Ideas

How to Start a Travel Agency

Written by: Carolyn Young

Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on December 13, 2021 Updated on April 11, 2024

Investment range

$2,150 - $10,600

Revenue potential

$78,000 - $300,000 p.a.

Time to build

0 – 3 months

Profit potential

$62,000 - $90,000 p.a.

Industry trend

Who doesn’t love to travel? But most of us do not love the endless research, planning, and booking required, which sometimes feels like it takes more time than the vacation itself. This is precisely why the $35 billion US travel agency industry has been booming of late, and why it offers a real opportunity for the travel-minded entrepreneur.

By starting your own online travel agency, you can shoulder travelers’ burden and ease their anxiety, allowing them to enjoy their holiday while you make a healthy profit. And thanks to the post-pandemic boost, now is a great time to get in on travel.

Of course, starting a travel agency will not be a vacation – it will take diligence, patience, and strong guidance. Thankfully, you’ve come to the right place, as this step-by-step provides all the information you need to develop and launch your new travel agency and give you a head-start on your entrepreneurial journey.

Step by Step Business values real-life experience above all. Through our  Entrepreneur Spotlight Series , we interview business leaders from diverse industries, providing readers with firsthand insights.

Uncover the secrets to building a thriving travel agency with our interview with Casey Halloran of Costa Rican Vacations .

Aspiring travel entrepreneurs will find valuable insights in our interview with Augustin Ndikuriyo on building a thriving African wildlife tour business .

Looking to register your business? A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple.

Form your business immediately using ZenBusiness LLC formation service or hire one of the Best LLC Services .

Step 1: Decide if the Business Is Right for You

Pros and cons.

Every business has its pros and cons, and a travel agency is no exception. You should weigh these carefully to decide if the business is right for you.

• Flexibility – Work from anywhere, even while traveling!
• Minimal Training – Get accredited for free online
• Travel Discounts – Travel agents get top deals and reduced prices
• Demanding Work – With clients around the world you’re on call 24/7
• Fierce competition – Top sites like Expedia, travel networks, advisors, and more

Travel agency industry trends

The US travel agency industry expanded an impressive 75% in the decade leading up to 2020, which saw a massive pandemic-driven downturn. 

In 2021, many travel agents saw a surge in business as travelers unsure of all the constantly changing Covid-19 rules and restrictions turn to them for help, rather than booking their own trips. Global travel advisor InteleTravel experienced a 35% increase in business, not from the disaster year of 2020, but from 2019, which had set records.(( https://www.nytimes.com/2021/04/14/travel/summer-vacation-travel-agents.html ))

Consumers are also turning more and more to online travel agencies, with a study by Expedia showing a 25% increase in the use of online agencies in 2020 alone. Brick-and-mortar agencies seem to be a dying breed, with British travel icon Thomas Cook closing in 2019.(( https://advertising.expedia.com ))

Industry size and growth

• Industry size and past growth – Market research firm IBISWorld values the industry at nearly $48 billion in 2022.(( https://www.ibisworld.com/industry-statistics/market-size/travel-agencies-united-states/ ))  
• Growth forecast – The industry is expected to grow further as the Bureau of Labor Statistics predicted a 5% annual growth through 2030 in the employment of travel agents.(( https://www.bls.gov/ooh/sales/travel-agents.htm )) 
• Number of businesses – More than 73,000 travel agencies are operating in the US.(( https://www.ibisworld.com/industry-statistics/number-of-businesses/travel-agencies-united-states/ ))
• Number of people employed – The industry employs more than 250,000 people.(( https://www.ibisworld.com/industry-statistics/employment/travel-agencies-united-states/ ))

Trends and challenges

Trends in travel agency industry include:

• Home-stay rentals like Airbnb(( https://stepbystepbusiness.com/business-ideas/start-an-airbnb-business/ )) outperformed hotels in 27 top markets during the pandemic
• Book-now-pay-later options, such as those offered by Expedia and Booking.com, are gaining popularity
• Travel agencies undergoing digital transformation in response to the growing demand for online services

Challenges in travel agency industry include:

• Rising gas prices are impacting travel behavior
• Compliance with global Covid-19 protocols
• Keeping up with digital marketing opportunities

What kind of people work in a travel agency?

• Gender – 76% of travel agency managers in the US are female, while 24% are male. (( https://www.zippia.com/travel-agency-manager-jobs/demographics/#gender-statistics ))
• Average level of education – 64% of travel agency managers hold a bachelor’s degree.(( https://www.zippia.com/travel-agency-manager-jobs/demographics/#degree-level-types ))
• Average age – The average age of a travel agency manager is 51 years old.(( https://www.zippia.com/travel-agency-manager-jobs/demographics/#age-statistics ))

How much does it cost to start a travel agency?

The startup costs for a travel agency range from about $2,000 to $10,000, with an average of around $6,000. The high-end includes the rental of office space and a larger marketing budget, but you could easily run your online travel agency from home to cut costs.

How much can you earn from a travel agency?

The commission paid to a travel agency by travel vendors such as airlines and hotels is generally about 10%. Some travel agents also charge a nominal consultation fee for each booking, typically between $30 and $50. Those will be your two revenue streams.

The average cost of a one-week domestic vacation is $1,500 per person. The profit margin for a home-based travel agency is usually about 80%. With an office and staff, your margin will likely drop to about 30%.

In your first year or two, you could work from home and sell five two-person vacations each week. At a 10% commission, this would mean $78,000 in annual revenue. You’d have about $62,000 in profit, assuming an 80% margin.

As your brand gains recognition, sales could climb to 1,000 two-person vacations a year. At this stage, you would rent an office and hire staff, reducing your profit margin to 30%. With expected annual revenue of $300,000, you would make about $90,000.

What barriers to entry are there?

There are a few barriers to entry for a travel agency. Your biggest challenges will be:

• Competition – Big and small online firms; self-booking travelers
• Client Acquisition – Time and marketing will be required to build a reputation

Related Business Ideas

How to Start an Airbnb Business

How to Start a Bed & Breakfast

How to Start a Glamping Business

Step 2: hone your idea.

Now that you know what’s involved in starting a travel agency, it’s a good idea to hone your concept in preparation to enter a competitive market.

Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.

Why? Identify an opportunity

As a travel agency, you need to find a way to differentiate yourself from the competition. Research online travel agents and booking platforms to see their offerings and prices, while keeping an eye out for something that might be missing.

Perhaps you could specialize in travel to an under-appreciated region, such as Southeast Asia, and build a network of relevant contacts and vendors. Or you could focus on finding travelers the most incredible home-stay rentals at the best prices.

You could specialize in family vacations, corporate retreats, or honeymoons. The potential niche options in the travel industry are nearly endless.

What? Determine your products or services

Travel can involve many facets, and you can handle some or all of them, in addition to flights, lodgings, and car rentals. These might include:

• Booking tours and excursions
• Dining recommendations/reservation
• Travel insurance
• Visa and emergency services

How much should you charge for travel agency services?

Travel vendors, such as hotels, airlines, and car rental firms, pay a commission to travel agents that’s generally about 10% of the booking. For instance, if you book a $1,200 flight on Turkish Airlines for your client, Turkish Airlines will give you, the travel agent, a $120 commission.

As a result, booking flights with a travel agent sometimes costs the traveler slightly more than booking directly with the airlines or through a travel site like Expedia or Orbitz. Thus, to attract customers and boost sales travel agents rely on discounted travel packages.

For instance, a return flight from Chicago to Cancun and a 6-day stay at a four-star all-inclusive resort, plus ground transport, might cost a traveler $1,000 or more to book directly. But travel agents get significant discounts from vendors because they place volume orders, so you’d be able to offer this trip as a $599 package deal.

Even after paying your commission, the traveler still saves a chunk of money by using your services, rather than booking themselves. And keep in mind, the discounts offered by vendors are likely to increase as you become a more established agent. You may be able to negotiate commissions from tour operators and excursion companies as well.

Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify your target market

Your target market will depend on the concept you’ve chosen for your agency. If you’ve decided to specialize in family vacations, you’ll be targeting parents. You might find them on sites like Facebook or LinkedIn, rather than Instagram or TikTok.

Where? Choose your business premises

In the early stages, you may want to run your business from home to keep costs low. But as your travel agency grows, you’ll likely need to hire workers and may need to rent out an office. You can find commercial space to rent in your area on Craigslist , Crexi , and Commercial Cafe .

When choosing a commercial space, you may want to follow these rules of thumb:

• Central location accessible via public transport
• Ventilated and spacious, with good natural light
• Flexible lease that can be extended as your business grows
• Ready-to-use space with no major renovations or repairs needed

Step 3: Brainstorm a Travel Agency Name

Your business name is your business identity, so choose one that encapsulates your objectives, services, and mission in just a few words. You probably want a name that’s short and easy to remember, since much of your business, and your initial business in particular, will come from word-of-mouth referrals.

Here are some ideas for brainstorming your business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better
• The name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “travel” or “bookings”, boosts SEO
• Choose a name that allows for expansion: “Wanderlust Adventures” over “Beach Bum Vacations” or “Honeymoon Haven Agency”
• Avoid location-based names that might hinder future expansion
• Use online tools like the Step by Step business name generator . Just type in a few keywords and hit “generate” and you’ll have dozens of suggestions at your fingertips.

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

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Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that set your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create a Travel Agency Business Plan

Every business needs a plan. This will function as a guidebook to take your startup through the launch process and maintain focus on your key goals. A business plan also enables potential partners and investors to better understand your company and its vision:

• Executive Summary: Present an overview of your travel agency, highlighting its focus on providing personalized travel planning and booking services for various types of travelers.
• Business Overview: Describe the services of your travel agency, including custom travel itinerary planning, booking accommodations, flights, and special experiences.
• Product and Services: Detail the range of travel packages offered, such as luxury vacations, adventure tours, and corporate travel services.
• Market Analysis: Assess the current travel market, identifying target customer segments like families, honeymooners, or business travelers.
• Competitive Analysis: Compare your agency to others, focusing on your unique offerings like specialized destinations, personalized service, or exclusive deals.
• Sales and Marketing: Outline your strategy for attracting clients, using methods like online marketing, partnerships with travel providers, or attending travel expos.
• Management Team: Highlight the experience and expertise of your team in travel planning, customer service, and business management.
• Operations Plan: Describe the process of service delivery, from client consultation to trip execution and post-travel follow-up.
• Financial Plan: Provide an overview of financial aspects, including startup costs, pricing strategy, and anticipated income.
• Appendix: Include supplementary documents such as travel industry certifications, partnership agreements, or detailed client testimonials to support your business plan.

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business!

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you are planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to travel agencies.

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state.

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your travel agency will shape your taxes, personal liability, and business registration requirements, so choose wisely.

Here are the main options:

• Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• General Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company (LLC) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
• C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
• S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC , which just needs to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization , and answer any questions you might have.

Form Your LLC

Choose Your State

We recommend ZenBusiness as the Best LLC Service for 2024

Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number , or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN.

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

The IRS website also offers a tax-payers checklist , and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you are completing them correctly.

Step 7: Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

• Bank loans : This is the most common method, but getting approved requires a rock-solid business plan and strong credit history.
• SBA-guaranteed loans : The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan .
• Government grants : A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
• Venture capital : Offer potential investors an ownership stake in exchange for funds, keeping in mind that you would be sacrificing some control over your business.
• Friends and Family : Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
• Crowdfunding : Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
• Personal : Self-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best options, other than friends and family, for funding a travel agency. You might also try crowdfunding if you have an innovative concept.

Step 8: Apply for Travel Agency Licenses and Permits

Starting a travel agency requires obtaining a number of licenses and permits from local, state, and federal governments.

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration ( OSHA ), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package . They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money you’ll need a place to keep it, and that requires opening a bank account .

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your travel agency business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account.

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

• General liability: The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business Property: Provides coverage for your equipment and supplies.
• Equipment Breakdown Insurance: Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation: Provides compensation to employees injured on the job.
• Property: Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto: Protection for your company-owned vehicle.
• Professional liability: Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP): This is an insurance plan that acts as an all-in-one insurance policy, a combination of any of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business.

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks.

You may want to use industry-specific software to manage bookings and scheduling, such as TravelPerk , TravelCEO , and TravelOperations .

• Popular web-based accounting programs for smaller businesses include Quickbooks , Freshbooks , and Xero .
• If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial.

Develop your website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.

You can create your own website using services like WordPress, Wix, or Squarespace . This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.

Your website should showcase your offerings, customer testimonials, and detailed information about destinations.

Your clients are unlikely to find your website, however, unless you follow Search Engine Optimization ( SEO ) practices. These are steps that help pages rank higher in the results of top search engines like Google.

Here are some powerful marketing strategies for your future business:

• Leverage Social Media : Use platforms like Instagram, Facebook, and Pinterest to share stunning travel imagery, customer stories, and travel tips. Engage with your audience through regular posts, stories, and responses to comments.
• Content Marketing : Start a blog or a YouTube channel providing valuable content like travel guides, tips, destination reviews, and travel trends. This not only helps in SEO but also establishes you as an expert in the field.
• Build Partnerships : Collaborate with local businesses in your chosen travel destinations, such as hotels, tour operators, and local attractions. This can lead to exclusive deals or packages that you can offer to your clients.
• Email Marketing : Collect emails through your website and social media channels and send out regular newsletters with travel tips, special offers, and new package announcements.
• Customer Reviews and Referrals : Encourage your clients to leave reviews on platforms like TripAdvisor or Google. Word-of-mouth referrals are powerful, so consider offering incentives for referrals.
• Attend Travel Expos and Events : Participate in travel expos, seminars, and networking events to build contacts and stay updated on the latest industry trends.
• Offer Personalized Services : Tailor your services to meet individual client needs. Personal touches can make a big difference in the travel industry.
• Utilize Paid Advertising : Invest in targeted ads on social media and Google to reach potential clients. This can be particularly effective when you have special offers or new packages to promote.
• Stay Informed and Flexible : The travel industry is dynamic, so it’s important to stay informed about global travel trends, destination updates, and customer preferences.
• Sustainable and Responsible Travel : With growing awareness about environmental and cultural impacts, promoting sustainable and responsible travel practices can set your agency apart.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that set it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your travel agency meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire.

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your travel agency could be:

• Travel to Asia’s best secret destinations
• The best local insights and insider adventures
• Vacations for the whole family, from grandma to the baby!

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a travel agency, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in travel agencies for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in travel. You’ll probably generate new customers or find companies with which you could establish a partnership. Online businesses might also consider affiliate marketing as a way to build relationships with potential partners and boost business.

Step 12: Build Your Team

If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a travel agency would include:

• Travel Agents – sales and bookings
• General Manager – scheduling, accounting, staff management
• Marketing Lead – SEO strategies, social media, other marketing

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need.

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed , Glassdoor , or ZipRecruiter . Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent.

Step 13: Run a Travel Agency – Start Making Money!

Owning a travel agency means sharing the joy of travel for a living. What could be more fun? It’s also a huge, high-growth industry that you could tap into and grow a profitable business. Startup costs are low, and all you need is a simple accreditation — there’s no real training required. You just need a good concept for your agency and a great marketing plan. Having a strong online presence in this digital age is also an absolute must.

You’ve started off on the right foot by reading this guide, and now you’re ready to begin your trip to entrepreneurial success!

• Travel Agency Business FAQs

If you run your online travel agency from home, you could have profit margins of up to 80%. Costs to run your travel agency are very low, and you’re paid around a 10% commission on everything that you book. As a home-based, one-person show, you could make $60,000 per year to start, and much more once you’re established.

Consumers are turning to online travel agencies more and more, which you could easily run from home. If your business grows fast and you need to add staff, you may want to have an office.

Some consumers prefer the personal service of a smaller online agency that can offer more local, personal insights about travel destinations. The key is to differentiate yourself in some way. You could specialize in certain locations, a specific type of lodgings, such as cabins, or in a type of vacation such as corporate retreats.

Travel agencies engage in activities such as providing travel advice, booking travel arrangements, managing logistics, and offering specialized services tailored to clients’ needs.

Effective marketing strategies for a travel agency include building a strong online presence, targeted advertising, content marketing, collaborations and partnerships, and leveraging customer referrals and reviews.

Running a travel agency can have challenges due to intense competition, evolving industry dynamics, regulatory considerations, seasonal fluctuations, and the need for customer satisfaction and crisis management. 

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• Decide if the Business Is Right for You
• Hone Your Idea
• Brainstorm a Travel Agency Name
• Create a Travel Agency Business Plan
• Register Your Business
• Register for Taxes
• Fund your Business
• Apply for Travel Agency Licenses and Permits
• Open a Business Bank Account
• Get Business Insurance
• Prepare to Launch
• Build Your Team
• Run a Travel Agency - Start Making Money!

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How to create a tour operator business plan in 8 steps

Preparing to Write a Business Plan

Tour operator business plan template, tips and tricks for a strong tour operator business plan.

Wondering how to turn your tour operator idea into a real business? The first step to launching a startup and getting investors onboard is to develop a formal proposal called a business plan . Whether you want to start a travel agency, a walking tour company, or an adventure travel business, you will use a business plan to communicate exactly how you plan to make your idea come to life. 

Creating a tourism business plan might sound daunting; in this article, we’ll show you how to do one and offer lots of advice for first-time founders. You’ll be able to use this article as a tour operator business plan template to write your own sample business plan (as an exercise) or to create the real thing.

To more clearly illustrate how to create a tour operator business plan, we’ll use a sample business as we go through each section. Our sample business is a small tour operator startup that specializes in ecotourism in Thailand.

Before you start to create your official business plan, it can be helpful to think through several aspects of your business so that you are fully prepared to address each topic in the business plan template. One excellent preparation exercise is to complete a Business Model Canvas for your company. 

The Business Model Canvas encourages you to think critically about your customers, cost structure, revenue streams, marketing strategy, and more. It’s the perfect warm-up for your business plan because you’ll incorporate your Business Model Canvas notes into the actual business plan document. We recommend that you do this exercise with your co-founders, if you have any, and with a whiteboard – you’ll probably make lots of changes as you go!

You can find a printable Business Model Canvas template here .

Your tour operator business plan should contain at least seven sections: an executive summary, a company overview, a description of your services, an analysis of your market, an implementation plan, a team summary, and a financial plan. You might have one or more appendices at the end, if you have additional relevant information to include. The finished product should be formatted nicely and incorporate your company’s logo and branding.

Executive Summary

As the first component of your business plan, the executive summary is arguably the most important section. If you’re pitching your idea to investors, they’re likely very busy people, so you want to grab their attention from the beginning. The executive summary should contain a concise outline of your tour operator company’s objectives and goals, your mission and/or vision statements , your key success factors, and a clear description of your value proposition. 

Company Overview

Think of this section as what you would post on the “About” section of your tour operator company’s website. The company overview should explain who your company’s key leaders are, how and when the business started, what the ownership structure looks like (if you have investors, for example), where your office is located, and an outline of your current assets and debts. If you’re in the early stages of your business, this section might be quite short.

Operations Plan

The operations plan is where you describe exactly what your company will offer. What kinds of tours will you sell? Where exactly will you operate? This is the type of information you would list on your website for potential customers or guests to read – but without too much of a sales pitch. 

In this section, it can also be helpful to include a description of the full “ life cycle ” of your business. What happens before, during, and after a tour? What steps does the guest complete, and what happens behind the scenes at your company’s office?

Thinking about our Thai ecotourism company, we might illustrate how someone could book a tour perhaps six months in advance on our website. Between booking and arrival, we coordinate accommodation, meals, and transportation with partner providers. When the tour concludes, we offer transportation back to the airport and follow up with a special offer to book another tour with us at a discount. 

Market Analysis

This section explores your specific niche within the tourism industry and the geographic location(s) where you plan to operate. Who are your target clients or guests? Who are your main competitors? What trends exist in this facet of the industry? Is the amount of visitors to your location increasing or decreasing? 

Try to include statistics from reputable sources whenever you can. Destination marketing organizations, tourism bureaus, and air traffic data, just to name a few, can provide valuable insight and add credibility. This section should leave no stone unturned so that your reader can truly understand your market conditions.

In our ecotourism business in Thailand, for example, we would include information about travel trends in Thailand (like the most popular feeder markets), new air routes, economic trends, the number of new hotels being built, etc. We would also explore the ecotourism market; are more people choosing eco-friendly travel options today compared to five years ago? What companies are the current ecotourism market leaders globally and in Thailand?

Implementation

Now that you’ve explained your business idea and described the market in which you plan to operate, it’s time to outline exactly how you will bring your tour operator business to life. This section should include a SWOT analysis , details about your marketing and pricing strategies, and a sales projection. 

In the SWOT analysis , you will explore your company’s strengths, weaknesses, opportunities, and threats. What does your company offer that nobody else in the market does? What are some potential challenges that you will need to face? Using our ecotourism company example, a threat could be natural disasters – if there are floods or mudslides, our business cannot operate. On the other hand, an opportunity is that more people are interested in eco-friendly travel options. 

Your marketing and pricing strategies should be very specific. How will customers find your company? Which online channels will you use? Will you work through travel agents or directly with your customers? 

Your pricing strategy should include the exact rates you plan to charge for at least a year in advance. For example, our ecotourism company in Thailand might charge $699 for a package during low season, $899 during high season, and $999 over holiday periods, with rates increasing 5% each year. 

We might also offer a 10% discount for advance purchase bookings made at least 6 months in advance and charge a 50% cancellation fee for any reservations cancelled within 3 months of the tour departure date. Based on your pricing strategy, you can create a sales projection that will estimate your company’s sales performance, preferably over the next three years.

Team Summary

After your reader understands what your tour operator business will do, they’ll wonder who is going to make it happen. And if you’re planning to launch a full-fledged tour operator business, you’re probably not going at it alone. The Team Summary section should include a thorough plan for your company’s organizational structure, key leaders, employees, and training processes. 

Do you already have a management team in place, or will you need to hire additional leaders? How many employees will you need, and how much will you pay them? And how will you train and develop your employees? The Team Summary should answer all of these questions and provide enough information for potential investors to understand exactly how you plan to staff your business, pay your employees, and ensure all team members are trained properly. 

Financial Plan

The financial plan is extremely important to potential investors because they will want to maximize the return on their investment. Your financial plan is essentially a projection of your revenue streams and cost structure for your company’s first five or so years of operation. It will include not only revenue from ticket sales and costs from employee salaries, but also details like tour-operator software costs, insurance, taxes, marketing spend, depreciation of assets, interest on loans, and more. 

If you don’t have a finance background yourself, it may be helpful to seek assistance from an accountant or someone who knows the ins and outs of financial modeling. 

Additional Information

In an appendix, you can include supporting information or statistics that may be helpful for potential investors, but not essential to your business plan. For instance, you could include a full report on air traffic trends that you used in your Market Analysis section.

Download Your Tour Operator Business Plan Template

Now that you know what a Tour Operator Business Plan should include, below we provide the one we have specially created for you.

Writing a business plan is certainly not an easy task. It’s time consuming and requires a lot of thought, but a well written business plan can lead to significant growth for your company. As you complete your business plan, keep these pieces of advice in mind:

• Conduct thorough research on your market . When you pitch your company to investors, you want to be seen as an expert, so learn as much as you can about your competitors and market trends.
• Simplify your words and descriptions whenever possible . A business plan is not the place to wow your reader with flowery language – instead, you want your reader to easily grasp your value proposition. Think about writing so that a fifth-grader can understand it. The last thing you want is for your reader to be confused about what your company actually does.
• Don’t be afraid to make changes . As you work on your business plan, you might discover that some aspects of your business need to be adjusted for the greater good of the company. After all, the companies that are the most adaptable are the ones that survive!
• Get a second opinion (or a third or a fourth). A good test of your business plan’s readability and clarity is to let someone outside your industry read it, like a family member or friend. If they have a lot of questions, you might need to adjust your descriptions or more clearly explain your plans.
• Proofread ! Your business plan is a reflection of your company’s values. If your formatting is sloppy and your text is full of typos, your reader might question whether you have the attention to detail necessary to run a successful business.

Now that you have all the tools to create a great tour operator business plan, it’s time to get to work!

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Adrienne Fors is the founder of Strategic Stays, a consultancy specializing in tech solutions and copywriting for short-term rental businesses and boutique hotels. She was previously a Market Manager at Expedia, and she graduated from the School of Hotel Administration at Cornell University. Adrienne is originally from Minneapolis, Minnesota and enjoys traveling and playing tennis.

Mize is the leading hotel booking optimization solution in the world. With over 170 partners using our fintech products, Mize creates new extra profit for the hotel booking industry using its fully automated proprietary technology and has generated hundreds of millions of dollars in revenue across its suite of products for its partners. Mize was founded in 2016 with its headquarters in Tel Aviv and offices worldwide.

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