How To Start A Travel Agency in 2025

Starting a travel business is an exciting venture, but finding the right niche and understanding the industry can be daunting. For Brett Snyder, it all started with a simple frustration: navigating the challenges of air travel. In 2006, he launched Cranky Flier, a blog sharing critiques and insights about the airline business, with a particular focus on passenger comfort. His no-nonsense approach soon gained a loyal following.]

Noticing a gap in the market, Brett founded his successful travel agency, Cranky Concierge, in 2009 to offer live support to clients navigating air travel difficulties. That business has since evolved into a full-service agency, focusing on premium leisure travel.

If you’re looking to launch a similar business, here’s how to start a travel agency in 10 steps, plus expert advice to help you get your business up and running.

How to start a travel agency 

1. Establish business goals
2. Conduct market research
3. Find your niche
4. Create a travel agency business plan
5. Choose a host agency
6. Set up your business
7. Secure funding
8. Assemble your technology stack
9. Build your website
10. Market your travel agency

Becoming a travel agent lets you earn money by helping clients plan their dream vacations or business trips. The industry is growing (with a 15.6% compound annual growth rate (CAGR) from 2025 to 2033, according to Business Research Insights), and it’s a business that can offer significant flexibility (e.g., setting your own hours, working from anywhere).

Here’s how to start your own travel agency in 10 steps. 

1. Establish business goals

To focus your efforts when starting a travel agency, first set some goals. Use the SMART goal structure to make them useful, and consider long- and short-term outcomes. You might set a three-month goal to make your first sale, a one-year goal to generate a specific amount of revenue, and a long-term goal to scale your business, for example. Or perhaps your long-term goal is to earn a comfortable living and save for retirement on a 30-hour workweek. Either way, knowing what you want out of running a travel agency will help you structure your business. You can always revisit and revise your goals as your business grows.

2. Conduct market research

Like any business venture, starting a travel agency requires an understanding of your target market. This process is known as market research, and it involves studying the consumers and companies that make up a particular market to learn about audience needs and preferences, market gaps, and what works for existing businesses in the industry. Consider travel trends, such as the popularity of specific destinations or a desire for eco-friendly travel options, as well as economic and political factors that could impact travel choices.

You can use primary and secondary research methods to gather information. Primary research involves gathering your own information through interviews, focus groups, and surveys, while secondary research involves reading reliable sources like trade journals and industry or government reports.

3. Find your niche

Honing in on a specific niche can differentiate your travel agency in a larger market and help you connect with your ideal client base. Consider your interests, industry relationships, and knowledge base to brainstorm potential niches, and cross-reference that information with your market research findings to choose the right focus for your company.

Choosing a niche and studying your target market is a bit of a chicken versus the egg situation, so you can start with a list of potential niches and research each one. You can also move back and forth between the research and niche brainstorming phases until you’ve found an area of market demand that you’re uniquely positioned to serve.

If you’re a passionate birder who’s traveled the world in pursuit of rare bird sightings, you might investigate the demand for travel advisers with expertise in bird watching. Or, if you have regional expertise, perhaps you focus on that specific area. Rock Tours, for example, provides a series of day trips around Bosnia and Herzegovina departing from the Croatian city of Dubrovnik.

Other travel company niches to consider include:

• Food tours 

• Adventure sports

• History tours

• Family-friendly vacations

• Business travel

• Destination weddings

• Ecotourism 

For Brett, the niche was not a location or activity, but a service. “The niche began as air travel assistance—specifically, it was the idea of having a real live person who could help people get out of a jam,” Brett says. “That expanded into the idea that we could help with planning, booking, and monitoring flights. And now we’ve expanded into a full-service operation with an increasing emphasis on premium leisure travel.”

Like Brett, you can expand from your niche as you go, but having a niche is a solid way to build a brand in the early stages. 

4. Create a travel agency business plan

A business plan is a strategic document that outlines what a new company will offer, how it will operate, and how it will earn money. Drafting a plan is essential for validating your business model and helping you think through your funding and financials, staffing needs, and launch timeline.

Business plans typically contain the following elements:

• Executive summary

• Business overview

• Description of products or services

• Market research findings

• Marketing plan

• Logistics and operations plan

• Financial projections

Business plans follow a consistent structure, so use a business plan template to save time and create a professional final product. A formal business plan can also help you approach potential investors or loan officers, should you choose to pursue funding.

Creating a business plan early in your planning process is essential, as it provides a foundational road map for the rest of your business development. However, keep in mind that it’s a living document, so don’t hesitate to make adjustments as you learn more about the industry, the market, and your own business needs.

5. Choose a host agency

With your business plan in place, you’ll have a clearer understanding of your needs, including the right type of host agency to support your goals. A host agency is a larger business that contracts with independent travel agents who pay a fee in exchange for the host agency’s support.

Host agencies provide business, marketing, and bookkeeping support and the chance to network with other advisers. They also allow agents to work under the host agency’s accreditation number instead of pursuing separate credentials. Their main benefit, however, is in bargaining power.

“The hard part is getting access to the contracts that help you to offer the best-in-class options,” says Brett. “That generally means associating with a larger host agency.”

Because host agencies represent a large number of travel agents, they can negotiate with suppliers to provide small business owners access to lower-cost options and better commission rates. A good host agency can connect travel advisers with airlines, travel insurance companies, tour operators, cruise lines, and hotels, helping them offer the high-value travel perks and exclusive deals that earn repeat customers

Choosing the right host agency is key, according to Brett. “If you find a good host agency, they will help you to develop your knowledge and you can get started in no time,” he says. However, it’s also a challenge to select the right host for your business. “They all have very different personalities and will charge for their services in different ways,” says Brett.

You can conduct online research, read online guides, and use your network to vet potential host agency partners. “When we first started booking, it was a contact who offered to bring us on as a sub-agent,” says Brett. “I had no idea what I was getting into. So I just kept talking to people and eventually learned the lay of the land.” 

Brett also recommends against trying to operate independently, which he describes as a Herculean effort. “If you’re talking about skipping a host agency and starting from scratch, I would think twice.”

6. Set up your business

Form and register your business and apply for the necessary accounts and licenses. If you signed up with a host agency before officially organizing your business, it may be able to guide you through the business formation process.

Here’s a list of legal and organizational tasks:

• Choose your business structure. Sole proprietorships and limited liability companies (LLCs) are two popular legal structures for independent travel agents. Cranky Concierge chose to structure its business as an LLC, which involves a slightly more complex setup and higher fees than a sole proprietorship but affords more protection for the owner’s personal assets. 

• Research business insurance. To further protect your personal assets, you may want to consider purchasing professional liability insurance coverage or a business owner’s policy. Some host agencies cover affiliated travel agents under their policies.

• Register your business. Visit your state’s Secretary of State website to review the business registration and licensing requirements for travel agencies in your jurisdiction. Depending on your products, geographical location, client locations, and business structure, you might need to register your business at the state and local levels to operate legally. This will also entail choosing a unique and memorable business name.

• Request an employer identification number (EIN). Obtaining an employer identification number (EIN) from the IRS allows your business to open a business bank account and file taxes. It’s mandatory for those with employees and business structures besides sole proprietorships, but it’s a good idea for any business to obtain one. 

• Open a business bank account. A business bank account keeps your personal and business finances separate. If you’re a sole proprietor and you want your business name to differ from your name, you’ll register for a doing business as (DBA) so you can accept payments in your business name.

• Obtain a travel agent license (if applicable). Four states—California, Florida, Hawaii, and Washington—require travel agents to get a seller of travel license. Fees vary by state.

7. Secure funding

The cost of starting a travel agency varies widely depending on the type of business, niche, location, and other factors. You need to consider business formation fees, insurance premiums, marketing expenses, and investments in software and tools.

If you don’t have the resources to bootstrap your business, there are multiple ways you can raise the funds. Tourism-related grants may also be available from state and local governments, such as through the Market New York Tourism Grant Program. 

8. Assemble your tech stack

Your chosen host agency will shape your tech stack, so you can use your technology preferences to help guide your host agency decision. “The issue with a host agency is that you end up having to use the tools they use for certain things,” says Brett. “For booking travel, I had proficiency in Sabre, so I was looking for a host that used Sabre.”

For any needs not met by your host agency, look for tools that are easy to use, have the features you need, and integrate with the rest of your technology. Your exact needs will depend on your business model.

In addition to common business software—like accounting and project management software—some travel agencies rely on niche technology. Brett’s team built their own flight-monitoring system, for example. “We have an entire system we built to help us internally track and monitor flight status and delays in real time,” he says. 

His team also uses Google Workspace, Streak customer relationship management (CRM) software, and Text Blaze, a Chrome browser extension that automates repetitive typing. “We have so many other tools we use as well, often connected through Zapier, to create a coherent process,” says Brett.

9. Build your website

Next, set up a website that promotes your business, attracts your target market, and drives sales. Using a reliable website builder like Shopify, with built-in hosting, domain registration, robust analytics, and 24/7 customer support, can speed up the process and help you easily build a high-quality site for your travel agency.

Shopify integrates with multiple event booking apps, allowing you to create a site where customers can make and reserve their travel plans.

10. Market your travel agency 

Once your site is live, it’s time to put together a marketing strategy to find clients. Brett recommends using your existing relationships to get started. “The hardest part is finding your clients, but if you want to start an agency, you’re probably already helping friends and family informally today,” he says. Build your network by asking those people to spread the word about your services.

In addition, you can start to build out a marketing plan, prioritizing a few channels. Highly visual formats like Instagram and TikTok can be a good way to connect with travel enthusiasts. If you’re looking to build a community and share your expertise, a blog can be a valuable marketing tool. “I was lucky in that I had my built-in blog audience to be able to tap into at the beginning,” Brett says. “That was important.”

Argentinian travel agency Experience Baires also markets via its blog, which answers common questions about Argentina with search engine-friendly articles like “Buenos Aires vs. Buenos Aires Province” and “What to do in Buenos Aires during a layover.”

Brett also suggests pursuing networking opportunities and connecting with other travel professionals. “Over time, I learned it was a lot of relationships that made the difference,” he says. “I was brought on to the Condé Nast Top Travel Specialists list more than a decade ago, and we met a lot of [travel companies] there who don’t like dealing with air travel. We now handle it for their clients as a partner.”