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The travel industry is worth hundreds of billions of dollars, and starting a travel agency is not as difficult as it may appear. Many small-scale travel agency owners work from the comfort of their homes, and travel agents make an average of $45,000. With little to no experience working for a travel agency, you can start your own with some basic steps. All the necessary procedures involved in creating this venture, including how to maintain a successful travel agency, will be disclosed in this article.

Merits of starting a travel agency

A travel agency is relatively one of the less complicated businesses to start. It has a host of advantages that will make you feel like you should have started earlier. Here are some of the benefits:

Discounts on travels

If a travel agent cannot get discounts on travel, then who can? Anyone who is getting discounts on travels and other purchases should know that their agent is enjoying double. The first and most common reason for this is as a result of travel agents’ knowledge of the market. Always looking out for and instigating these discounts make them more informed about the freebies than others.

Another interesting thing to note is that some of these companies that are associated with the travel industry purposely give agents discounts. These companies can either be hotels or resorts in tourist centers, airlines, and even banks. They usually go after the more successful travel agencies and offer their reps a good discount on their services so that they can recommend their businesses to travel clients. This marketing strategy works for both parties because they will be getting adverts while you will be enjoying first-class privileges.

Working remotely

Another advantage of running such a business is the freedom to choose where to set up your office. The average new travel agency entrepreneur launches its business from home. Even though with time, there might need to be a change and a proper office will be required, yet it won’t be necessary at the early stages. This side of the business gives you room to start with ease, comfort, and less expenditure. You won’t need to pay rent for office space since you could be working from your bed, literally. If your house has a study, that could be set aside for an office space. And if working from home is not appealing to you, you can choose to use the outdoors. Parks can be relatively tranquil depending on the time of the day and location; use them. Libraries are probably your best bet, especially if you won’t be making many calls, since they will be quiet.

Traveling with ease

The chances of a travel agency’s owner being a frequent traveler are high. Knowing all the basics of traveling processes to some of the best destinations in the world will make traveling enticing. As a travel agent, it would cost you less to travel as a result of the knowledge you have gained in the business. This knowledge will make traveling more manageable and you will take the bait every once in a while. Having firsthand experience of the destinations you are selling your clients will help you sound more convincing to them. Many travel agents started as travel enthusiasts before setting up their agency.

Getting connected

A traveler can be anyone, from medical practitioners to business executives, students to top politicians. In this industry, you’ll find yourself placing orders and making reservations for some mighty people. Celebrities and other famous figures could one day seek your services. This business exposes you to influential people who can prove to be valuable to you and your venture. Making connections would come easier compared to other vocations outside of the hospitality or tourism industry. If you offer them excellent service and build an equally impressive customer relationship with them, they could become regular users of your service. Besides during the process of making reservations for top individuals in different fields, you can make connections outside of work. Since running a travel agency increases your likelihood of traveling frequently, you could make friends at exotic destinations. Make links even though your reason for wanting to befriend these esteemed individuals is born out of promoting your agency.

Demerits of starting a travel agency

Stiff Competition

Travel agencies have come a long way, and some have been in existence for decades. Many of these top companies are still making it in this market, and they are calling the shots in a way. They already have all the connections in the industry and politics, including the financial strength to run the business. Compared to a starter, they are matchless. The earlier you realize that you have competitors breathing down your neck, the better it will be for your agency in the long run. Apart from the renowned travel agencies in the land, some individuals own small travel businesses and are doing well. The level of competition is somewhat unfair because it can make customers feel like you’re dispensable. That feeling will make some customers take travel agencies for granted just because they know there are other agencies out there. The desperation and inexperience of fellow newbies like you in the market can affect your business negatively. Some competitors make life difficult for others in the industry by undercharging for their services.

Fluctuations in foreign exchange rates

Foreign exchange rates are never stable. Your new business will be affected by the fluctuations in Forex, and that could be a disadvantage sometimes. Every destination in different countries has its currency exchange rates, which can be affected by the world’s present economy. These exchange rates could come as a disadvantage to you if your specialized destinations are affected negatively by it. For instance, if a country that is famous for tourism is perhaps the one that brings you the most income experiences inflation, it could discourage travelers. Even if the decrease in patronage only lasts a few weeks, you would have made a lot less than what you would have at that time. The fluctuations will almost certainly make your services more expensive, and that will also cause patronage to decrease. The sad part is that you cannot control foreign exchange rates; instead it determines what happens to your firm.

Skills you need to start a travel agency

Resourcefulness

A travel agency must have answers to almost every question a client throws at them. Clients expect travel agencies to know everything, and they want to sit back and relax while everything is being sorted out. In fairness to them, that’s what they paid for. However, things don’t always go according to plan, and sometimes it’s not your fault. Your ability to find solutions to problems will be beneficial. It could save your business and then take it to greater heights.

Organizational skills

The role of a travel agency involves getting information from numerous clients about their preferred travel destinations. The data will contain details of the specific preferences of each client, including accommodation information, flight date, and time, among others. It would be a catastrophe to mix up these details; it could cause your clients a lot of discomforts and that would harm your company. A successful travel agency owner must be the type who is organized, one who can manage the information of multiple persons without problems.

Salesmanship

As a travel agency owner, you have a lot of selling to do. You will not only be marketing your agency’s services (and other products, if there are any), but you will also be selling those of others. Many travel agencies are affiliated with other companies that profit from the travel industry, and they help sell their products and services. The more you sell these ideas and products to your clients, the more you get paid extra. This commission can be quite significant, which is why there is a need for you to know how to sell. Sell even when your customers don’t deem such services or products a priority. A good salesman who specializes in travel niches that are different from what a particular client wants can easily convince them to try it. Good salesmanship will help your business prosper, and you will make more money on the side.

How to start a travel agency

The first practical step to launching your travel agency is to have it all planned out and documented. That is what a business plan is. It will serve as a guide and keep you grounded throughout the business. Besides a business plan, there are a few other steps to take to get your business running.

Register your business

Running an unregistered business- especially in this venture -can bring about dire legal consequences. An unregistered company cannot guarantee the authenticity of the services a customer would be paying for. For this reason, the government takes the registration of a travel agency seriously. Different states or regions have unique laws and processes involved in registering a business. Enrollment also depends on the type of business you choose to start. Before your business gets registered, you must have had your business plan, business name and trademark, business bank details, and other essential documents sorted out. Once your business is registered, and you are given license to operate, you are good to go.

Understand the travel industry

The travel market is vast, it was estimated to be worth $213 billion in 2020 (before coronavirus), and it will only increase with time. The industry is about moving people and their goods from one destination to another; a lot of things are involved. There is the traveler, the destination, the merchandise, the transit facilitators, and others. Your success rests on the factors that will most likely affect these vital pieces. A proper understanding of the traveler and their needs, their preferred destination and its accessibility, the merchandize and its security, and the way transit facilitators operate, will guide you.

Be familiar with government regulations

Be conversant with government laws or restrictions in terms of traveling. The destination your clients want to visit –whether it’s their hometown or not- has a government in place. The government decides who goes out or comes in, and there could be times when going there would not be allowed. Sometimes, there are partial restrictions that could also affect both your business and clients; therefore being in the know will prepare you. Even if you cannot change the state of affairs of the country, knowing what’s going on will make you look for other options. Being up-to-date on political affairs will bolster your resourcefulness, and in the end, your alternative plan could work like a charm.

Choose a path

If you’re just starting a business, you certainly want to begin with as little issues as you can. In the travel industry, there are various types of niches that one can get into. The most successful travel agencies can afford to take on any or every area of the business, but a beginner shouldn’t dare. These established companies have all the contacts, human resources, and finances to hire experts in every possible area of the business. On the other hand, a greenhorn in this market will be biting off more than he or she can chew if they attempt it. To be on the safe side, observe the industry, find what appeals to you the most, and focus on it. The reason why you must find a niche or two is so that you can be an expert in the area. It is much more rewarding to be a specialist in an area, and your clients can bet on that than be average in all the places you offer services. A path you understand the most will be easier for you to succeed in. You will learn more for fun, have contacts quickly, and know almost everything relating to an area you choose to specialize in.

Define your business

You can start a travel agency by running it online or offline. This decision is vital to the progression of your agency. For established travel agencies, taking these two options will not be a problem because they have all the resources to make it happen. On the other hand, it would be in the best interest of a starter to choose one of the two options. The cost of running both an online travel agency full-time and an offline travel agency alongside can be demanding. It will cost quite a lot of money, and you’ll need to hire workers immediately you start the business. The cheaper, more convenient, and safer option is starting an online travel agency.

If you have what it takes to secure proper office space for your new establishment, pick a good location. The location must be accessible, and there must be several people working with you to attend to customers. For a physical office, you will consider doing some extra branding. Prepare to distribute hard copies like fliers, banners, and complimentary cards.

Liaise with other businesses in the industry

Your travel agency will offer only a fraction of all that the average traveler would need throughout their travel. Seeing that you don’t own the hotel, the sights they’ll be seeing, or the airline they’ll be flying, you should find a way to work with them. There are lots of benefits your business will gain by being in partnership with these companies. They have the goods and services they offer, and they would like to advertise them. Since your job entails providing a relevant travel experience for your client, clients will easily buy whatever extra product you sell. By doing business with these companies, you get paid extra, and you get better rates for your customers. The discounts you receive will make your services more affordable; this will attract more clients. Make your findings, get in touch with companies that sell products or offer services related to the industry, and partner with them.

Look for clients

There are different reasons for traveling; business, pleasure, relocation, health-related issues, sports, schooling, and more. Knowing these diverse motives for traveling will move you closer to discerning, who exactly your client should be. Since you know what areas potential clients would need assistance in, the next thing is to look for these people. Liaise with universities and colleges to be the go-to agents they’d recommend for students. Follow expatriates online and offline; join their communities so that you can advertise more effectively. Sports clubs and associations also tend to travel frequently, meet with them, and form a partnership.

Offer excellent customer service

Since this industry is all about catering to people’s needs, you must offer outstanding customer service. This business is a competitive one, and it is not the easiest of feats getting a new customer. Travel agencies pamper their clients, and they even go the extra mile in making them feel comfortable. Top-notch customer service involves not allowing your customer to lift a finger from the moment they choose to go with your firm. One unsatisfied customer could make you lose a lot more. Think of losing one customer as losing ten because words travel fast- slander travels even more quickly.

Good customer service starts when the primary responsibilities of the agent towards the client are performed expertly. Doing the simple things well is the first step to customer satisfaction. If they need to book a flight and a hotel before they arrive at their destination, simply do it well. That act of professionalism is the most important service you can render. After that, customers will judge you by how you attend to them, converse with them, and resolve issues for them.

Build a lasting customer relationship

It is one thing to have a customer use your agency, but it’s another thing to keep that customer loyal to your business. Every business has a few clients who only use their services or products once, but successful companies have loyal customers. Sports companies or institutions, for example, rate the success of their ticket sales based on regular, and most importantly, season ticket holders. Think of building a lasting customer relationship with your clients as making a new critical friend. Make customers feel like they’re essential to the business and show interest in their interests. Encourage them to give you tips on how to serve them better and listen to them. You could ask for details about them that are not in violation of their privacy to show you support them. You will do well to celebrate their birthdays, anniversaries, and other celebrations they’re having. Simple gestures like that on social media will ensure a bond between your clients and your company.

Prepare for the unknown

Anything can happen in the travel business. It is typically a fun business to run, but sometimes the unknown can be overwhelming. You are preparing for the unknown means to make sure that a setback doesn’t spell the end for your business. There will be situations that you can control, and others will be out of your control. Both conditions can be dealt with properly with a good plan in place. To not disappoint clients, make sure you have an alternative destination that would rival the most popular destinations. Have some extra money saved somewhere in case you need to make an instant refund. Sometimes, getting a refund on order can take more time than expected, but to make customers happy, you could reimburse them from your wallet. By the time the refund is available, you get your money back.

Conclusion

Starting a travel agency has a lot of benefits, and it can be reasonably easy to create. As long as you have a place to stay, a computer, a fast internet connection, and you love attending to customers; you are ready. To make your work easier, get some useful software that will help you take orders, place orders, and manage clients’ information. Keep learning, don’t stop looking for a Plan-B just in case, and the rest will not be so hard.

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