What is needed to open a travel agency?

Posted by Apichai Chomsing | 8:02 AM | 0 comments »

I would like to open a travel agency, I know that it is a small business and I know the requirements for that but not sure if I need to take classes. Do any of you know the procedures? Thanks for all your help!


I'm sorry to rain on your parade, but it's a very tough business.

How much do you know about travel agencies as opposed to small businesses in general? Travel agencies are a somewhat different animal. Unlike most businesses, you don't set the prices for all products. The suppliers frequently set them and you work on commission. (Airlines excepted - they set the price, pay you nothing, and then try to get your customers to buy directly from them). You don't have full control of your margins.

In order to sell airline tickets, you need to be accredited by the Airlines Reporting Corporation. There are a lot of requirements, including posting a bond and having someone on staff with prior industry experience. Take a look at the Industry Agents Handbook at www.arccorp.com. You'll need to know this very well.

A high tolerance for not making much money is also very helpful. The Internet is taking away a lot of sales from travel agents. Profits are very poor for small agencies.

I suggest that you investigate this very carefully and make sure that you really want to do it.

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