Monday, January 30, 2012

How do you go about starting an online travel booking agency?

I have a lease on the building already and I'm doing taxes, immigration, and other services. What do I need to expand in order to also offer my clients travel packages?How do you go about starting an online travel booking agency?Since you already have a physical location, you are probably better off having a "physical" travel agency.



I would advise following the strategies to become a "home-based" agent. There's nothing to say you can't do it out of an office!



Essentially, that means forming a *business* relationship with an existing, bonded travel agency (preferably not one in your town) to be one of their outside agents. (There is a way to become a completely separate, independent agency in your own right, but I don't recommend it to beginners.)



You would operate under your own business name but funnel bookings through your "host agency," which would then split the commission with you. You do the marketing and selling, they handle all the "back office" tasks. Commissions splits range from 50% to 70%. Deals that offer "100% of commission" come with fees that effectively reduce your actual share of the commission to about 70%.



I would recommend that you start small, by offering a few highly targeted products, like tours that you know will appeal to your existing clientele or cruises out of a port that your customer can drive to. DON'T start out trying to do anything and everything. In case you don't know already, there are no commissions paid for airline tickets.



I don't recommend an "online" strategy. You are up against BIG companies with DEEP pockets and you can't compete. There are outfits that will give you "your own branded web site" (for a monthly fee), but very few people make any significant money this way. Most don't come anywhere close to covering the monthly fees.
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