If you’re considering starting start travel agency, you’re in luck. The start-up costs are relatively low and there are plenty of opportunities for someone together with the desire for selling travel. By using a host agency will make it a ‘plug-and-play’ knowledge about minimal risk or low up-front costs.
The very first thing you’ll might like to do is start searching for a host agency. For independent agents (those not used by a travel agency), about 50% choose a host, 50% chose to go on their own.
I’m an advocate of employing a host agency for almost all agents unfamiliar with the industry: The 50% that choose to go by themselves are virtually all experienced agents with large books of economic and established supplier relationships.
Now, if you’re asking ‘what is actually a host agency’ that’s a key component to understand. Start by reading our post covering that topic.
Next thing-understanding why you require a host agency. The bottom line is, a host agency helps keep your costs down, assist you to earn higher commissions, do your back-end work like commission-tracking, and give you training and support. Some hosts even include Errors & Omissions insurance. (Our “7 Advantages of choosing a Host Agency” article explores more depth about why you would like to utilize a host travel agency.)
If you use a host agency, you don’t have the cost or need for getting the own ARC, CLIA, or IATA number. Underneath the umbrella of any host agency, you’ll be able to use their accreditation numbers. When you are an agency while using GDS, the host will file the ARC report therefore you don’t must track it, saving you a great deal of filing time weekly. Another bonus? You can expect to save lots of moola by not having to become an ARC-appointed agency, and perhaps, you can earn more through their host’s exclusive airline contracts.
A final note on saving you money: Travel host agencies add a little bit more change in the bank by taking care of several of the required travel agency licensing.
It’s true, you don’t need to have a host agency. You may go completely independent or enroll in a franchise (we did a write of on everything you may want to find out about travel agency franchises), co-op, or consortium. However, when you’re starting a travel agency from your home, having access to a host agency’s higher commissions, experience, and tools is going to be extremely helpful. Beyond that, they offer lower risks and investment as well as giving higher commissions.
Getting Ready to Start Your House Based Travel Agency
You could be excited to get started on your travel agency from home, but there are some things you will want to take care of before registering with a host travel agency. There exists a 7-Day Setup Travel Agency Challenge which will take you step-by-step through the steps you have to take! But here’s a sneak preview:
Choosing your travel agency’s name: The host agency will almost certainly want to know your travel agency reputation for their records so already have it ready. You’ll also require it for that documentation further down. Read our “Tips for selecting Travel Agency Names” for a few guidelines and make certain to get the domain. Don’t forget to find a travel niche prior to deciding to name your travel agency.
LLC or Sole Proprietor or Corporation: You’ll want to speak with your tax advisor to see where you’ll receive the largest financial benefits. Most small agencies with few assets start out with sole proprietor. Once they get big enough, they’ll go on to an LLC. Something to keep in mind is the fact that determining the ideal fit out beforehand is a good idea. Imaginable the cost and paperwork needed by banks, the state, etc. once you legally change your company name.
Register DBA/your business together with the state: DBA is surely an acronym for “Doing Business As.” If you decide to be a sole proprietor, you may want to register it together with your state as a DBA. The Tiny Business Administration (SBA) website shows the way to register your company’s name by state. (Note: Not all states require you file a DBA.) If you are an LLC, the SBA also provides a state by state guide on the way to register your LLC.
Purchase an EIN (optional): Technically, you don’t need a business Identification Number (EIN) since you may use your social security number with certain business structures. However, I personally prefer never to give away my social security number generally if i don’t need to. Generally, I might recommend getting an EIN for your travel agency. Also, make sure to check in with your tax professional when it’s tax filing time-beyond doubt business structures, you might still file under your SS# even though you have an EIN. Confusing, I am aware. That’s why you visit the pros! ??
Obtain a business checking account and visa or mastercard set up: Again, you don’t need to have a business checking account or charge card, but you’ll have wished you’d had set one up come tax time. Having separate your individual account in the business account from the beginning makes accounting easier and will help you keep track of 51dexqpky expense write offs. Lastly, if you’re anything beyond a sole proprietor, you need to make your money separate to reiterate on the IRS that both you and your business are separate entities for tax purposes!
Read our Home Based Travel Agent Resources page: I assembled a page with tons of links so you don’t need to scour the net. Here she be, the property Based Travel Agency Resources page. ??
Don’t worry when you didn’t do these matters yet, it’s not the final around the globe. But you do have to do them at the earliest opportunity. Once you start how to be a travel agent from home, you’ll have plenty of other items that can demand your attention so laying the correct groundwork as soon as you can is in your best interest.