If you’re contemplating starting how to start a travel business, you’re in luck. The start-up expenses are relatively low and there are numerous opportunities for someone using the adoration for selling travel. Utilizing a host agency can make it a ‘plug-and-play’ experience with hardly any risk or low up-front costs.
One thing you’ll might like to do is start trying to find a host agency. For independent agents (those not utilized by a travel agency), about 50% go along with a host, 50% chose to go on their particular.
I’m an advocate of utilizing a host agency for pretty much all agents a novice to the market: The 50% that decide to go independently are virtually all experienced agents with large books of business and established supplier relationships.
Now, if you’re asking ‘what can be a host agency’ that’s a vital component to know. Begin by reading our post covering that topic.
Next phase-understanding why you want a host agency. In summary, a host agency helps keep your costs down, help you earn higher commissions, do your back-end work like commission-tracking, and provide you training and support. Some hosts even include Errors & Omissions insurance. (Our “7 Benefits of Using a Host Agency” article goes into more depth about why you wish to work with a host travel agency.)
If you use a host agency, you don’t possess the cost or need for getting the own ARC, CLIA, or IATA number. Within the umbrella of your host agency, you’ll have the ability to use their accreditation numbers. If you are an agency making use of the GDS, the host will file the ARC report therefore you don’t ought to track it, saving you tons of filing time weekly. Another bonus? You will save a lot of moola by not having to be an ARC-appointed agency, and in some cases, you can make more through their host’s exclusive airline contracts.
A final note on helping you save money: Travel host agencies add a little more change in your pocket by looking after a few of the required travel agency licensing.
It’s true, you don’t need a host agency. It is possible to go completely independent or enroll in a franchise (we did a write of on everything you may need to know about travel agency franchises), co-op, or consortium. However, when you’re starting a travel agency from your own home, having access to a host agency’s higher commissions, experience, and tools will be extremely helpful. Beyond that, they provide lower risks and investment while also giving higher commissions.
Getting Ready to Start Your Own Home Based Travel Agency
You might be excited to start out your travel agency at home, but there are certain things it is advisable to deal with before registering with a host travel agency. We have a 7-Day Setup Travel Agency Challenge that can walk you through the steps you need to take! But here’s a sneak preview:
Choosing your travel agency’s name: The host agency will almost certainly want to find out your travel agency good name for their records so have it ready. You’ll also require it to the documentation listed here. Read our “Tips for Choosing Travel Agency Names” for several guidelines and make sure to acquire the domain. Don’t forget to locate a travel niche before you decide to name your travel agency.
LLC or Sole Proprietor or Corporation: You’ll want to speak to your tax advisor to discover where you’ll have the largest financial benefits. Most small agencies with few assets start with sole proprietor. If they get big enough, they’ll move to an LLC. Something to note is identifying the best fit out beforehand is advisable. You can imagine the expense and paperwork essental to banks, the state, etc. if you legally improve your business name.
Register DBA/your company with the state: DBA is undoubtedly an acronym for “Doing Business As.” If you wish to turn into a sole proprietor, you might need to register it along with your state being a DBA. The Small Business Administration (SBA) website shows how to register your company’s name by state. (Note: Not all the states require you file a DBA.) If you are an LLC, the SBA even offers a state by state guide on the way to register your LLC.
Get an EIN (optional): Technically, you don’t need an Employer Identification Number (EIN) since you should use your social security number with certain business structures. However, Personally, i prefer never to share my social security number should i don’t must. Generally, I would recommend getting an EIN for your travel agency. Also, ensure that you sign in along with your tax professional when it’s tax filing time-beyond doubt business structures, you might still file below your SS# even if you provide an EIN. Confusing, I understand. That’s why you go to the pros! ??
Get a business banking accounts and charge card setup: Again, you don’t want a business bank account or charge card, but you’ll have wished you’d had set one up come tax time. Having separate your individual account from the business account from the beginning makes accounting easier and will allow you to keep track of 51dexqpky expense write offs. Lastly, if you’re anything beyond a sole proprietor, you want to keep your money separate to reiterate on the IRS that both you and your business are separate entities for tax purposes!
Read our Home-based Tour Operator Resources page: I come up with a page with loads of links so you don’t need to scour the net. Here she be, your home Based Travel Agency Resources page. ??
Don’t worry in the event you didn’t do these things yet, it’s not the conclusion around the world. But you do have to do them without delay. Once you start how to be a travel agent from home, you’ll have a lot of other things that may demand your attention so laying the appropriate groundwork once you can is in your best interest.