If you’re contemplating starting how to start a travel business, you’re in luck. The beginning-up prices are relatively low and there are numerous opportunities for someone with the desire for selling travel. Using a host agency makes it a ‘plug-and-play’ exposure to very little 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 hired by a travel agency), about 50% go with a host, 50% chose to be on their own personal.
I’m an advocate of using a host agency for almost all agents a new comer to the business: The 50% that decide to go alone are nearly all experienced agents with large books of economic and established supplier relationships.
Now, if you’re asking ‘what is a host agency’ that’s an integral component to know. Start by reading our post covering that topic.
Next thing-understanding why you want a host agency. In summary, a host agency helps keep your costs down, assist you to earn higher commissions, do your back-end work like commission-tracking, and provide you with training and support. Some hosts even include Errors & Omissions insurance. (Our “7 Advantages of choosing a Host Agency” article goes into more depth about why you need to work with a host travel agency.)
By using a host agency, you don’t get the cost or need for getting your own ARC, CLIA, or IATA number. Underneath the umbrella of the host agency, you’ll have the ability to use their accreditation numbers. If you are an agency utilizing the GDS, the host will file the ARC report so that you don’t must track it, helping you save tons of filing time every week. Another bonus? You are going to save lots of moola by not having to become an ARC-appointed agency, and in some cases, you can generate more through their host’s exclusive airline contracts.
One final note on saving you money: Travel host agencies add a bit more change in your wallet by taking good 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 could possibly want to find out about travel agency franchises), co-op, or consortium. However, when you’re starting a travel agency from your own home, the ability to access a host agency’s higher commissions, experience, and tools is going to be extremely helpful. Beyond that, they have lower risks and investment while giving higher commissions.
About to Start Your Home Based Travel Agency
You might be excited to start your travel agency at home, but there are some things you should deal with before signing up with a host travel agency. We have a 7-Day Setup Travel Agency Challenge that may 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 is going to need to know your travel agency reputation for their records so have it ready. You’ll also require it for your documentation listed below. Read our “Tips for picking Travel Agency Names” for some 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 to your tax advisor to see where you’ll get the largest financial benefits. Most small agencies with few assets start with sole proprietor. When they get big enough, they’ll go on to an LLC. A very important factor to keep in mind is that identifying the very best fit out before hand is a great idea. You can think of the cost and paperwork essental to banks, their state, etc. if you legally change your company name.
Register DBA/your company with the state: DBA is definitely an acronym for “Doing Business As.” If you choose to be a sole proprietor, you may have to register it with your state being a DBA. The Little Business Administration (SBA) website shows the best way to register your company’s name by state. (Note: Its not all states require you file a DBA.) Should you be an LLC, the SBA even offers a state by state guide on the way to register your LLC.
Purchase an EIN (optional): Technically, you don’t need a company Identification Number (EIN) since you may use your social security number with certain business structures. However, Personally, i prefer not to hand out my social security number basically if i don’t must. In general, I might recommend getting an EIN for your travel agency. Also, make sure you sign in with the tax professional when it’s tax filing time-beyond doubt business structures, you could possibly still file within your SS# while you offer an EIN. Confusing, I know. That’s why you get to the pros! ??
Obtain a business checking account and credit card put in place: Again, you don’t need to have a business banking accounts or charge card, but you’ll have wished you’d had set one up come tax time. Having separate your personal account through the business account from the start makes accounting easier and will allow you to record 51dexqpky expense write offs. Lastly, if you’re anything beyond a sole proprietor, you want to make your money separate to reiterate towards the IRS that you and the business are separate entities for tax purposes!
Read our Home-based Tour Operator Resources page: I assembled a page with tons of links so that you don’t have to scour the net. Here she be, the Home Based Travel Agent Resources page. ??
Don’t worry in the event you didn’t do these matters yet, it’s not the end around the world. But you will should do them without delay. As soon as you start becoming a travel agent from home, you’ll have a great deal of other items that will demand your attention so laying the appropriate groundwork as soon as you can is to your advantage.