How to become a travel agency owner
As a result of the crisis caused by Covid-19, one of the most affected sectors around the world has been tourism. According to Bryce Conway, founder of 10xTravel, an international travel portal, future projections indicate that it will not be until 2022 before air travel reaches pre-pandemic levels.
But, despite the estimates, travel is one of the activities that everyone in the world misses the most, so no doubt, the full revival will be very fast and at a very high volume. So today is the perfect time to start planning a foray into this industry and prepare to open the doors as soon as global tourism recovers.
One way to establish a business in tourism, without having to buy transportation vehicles, real estate to provide lodging services, or rent a space to work in the food and beverage business, is a travel agency. This service is characterized by subcontracting companies and providing the client with the best costs, packages, and experiences to travel.
Nowadays, few people have the necessary capital to start a company in any line of business since savings have had to be used to face this pandemic. For that reason, turning to the most effective small business financing will allow you to get the necessary liquidity to buy office equipment, pay licenses and start working to establish your ideal business. Here’s a little manual on how to set up a travel agency to meet the post-pandemic demand.
Keys to establishing a travel agency
As in any business, it is necessary to have a lot of discipline and order during development, but above all, at the time of operation. Although this type of business does not require millionaire investments, you will have to pay brand registrations, licenses, taxes and have technological equipment to manage and sell.
Find your target
From the very beginning of your idea, you must know who you are going to sell to. In many cases, a good thermometer to understand the behavior of the market is your close circle, how many people travel, what kind of trips they make, what qualities, and the value proposition they require from a travel agency.
Through research on the web, you will know the trends and needs of today’s travelers. Within the travel market, there are many niches and sub-niches; it is necessary to understand them all in order to offer a comprehensive product.
Generate a business plan
Making a business plan is not currently a mandatory requirement, but it will serve as a guide to set the direction of your business, the areas of opportunity, but above all, as a way to give order to the initial development of your company.
For this purpose, you can use the Canvas Business Model to clarify your ideas in areas such as customers, supply, infrastructure, and economic viability. In case you need any financial product, presenting this document will open the doors to get the ideal small business financing for you.
Find your sales channels.
Until a few years ago, we could not imagine a business without a physical location. Since the use of technology has boomed and modern changes have been accelerated by the pandemic, a number of companies tend to have gone digital (perhaps with the help of a digital transformation agency or through other methods) and found online channels an excellent way to sell.
If your market is not quite ready for a fully digital shopping experience, you can opt for a hybrid model, which combines face-to-face and remote actions. Find the one that best suits your needs and, above all, those of your target market.
To give your travel agency an identity, establish a commercial name and register with the Small Business Administration (SBA), so you can access loans, grants, or subsidies to start or grow your business. In case you do not find support in this type of institution, look for the best small business financing in alternative companies. Also, look out for the rules and regulations of the region in which you are planning to operate. For instance, if you have decided to start your agency in the UK, you may be required by law to opt for GDPR and prove your compliance with the government (you can learn more here, at this site). No matter the size of the firm, it is important to regulate yourself to such guidelines. Therefore, doing thorough research might be satisfactory enough while you are venturing to start your own business.
The core business of travel agencies is focused on obtaining commissions, amounts for advance reservations, or consulting services. For these reasons, it is essential to achieve alliances with tourism service providers such as airlines, ground transportation companies, tourist destinations, and independent suppliers.
The greatest differentiator in the tourism sector will always be the quality of the experiences. Remember that content is king, but the experience is queen. Focus on pampering your customers and make the journey start from the first approach with your company. Lean on small business financing to achieve the entrepreneurship of your dreams.
Currently, the tourism sector is hit hard and requires assistance. If you start gradually, working with restrictions, it will allow you to know the current needs, and you will better understand future trends to achieve a strengthened business in post-pandemic times.
Make your passion for travel the business of your life, offer your clients what you would like to receive when traveling, and create an agency with the best reputation in the market.