If you’re thinking about starting starting a travel agency, you’re lucky. The beginning-up costs are relatively low and there are numerous opportunities for somebody together with the desire for selling travel. Using a host agency will make it a ‘plug-and-play’ experience with very little risk or low up-front costs.
One thing you’ll want to do is start searching for a host agency. For independent agents (those not utilized by a travel agency), about 50% go with a host, 50% chose to go on their own.
I’m an advocate of utilizing a host agency for almost all agents new to the business: The 50% that decide to go by themselves are nearly all experienced agents with large books of business and established supplier relationships.
Now, if you’re asking ‘what is a host agency’ that’s an integral component to know. Start with reading our post covering that topic.
Next phase-understanding why you need a host agency. Simply speaking, a host agency can keep your costs down, enable you to 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 enters into more depth about why you would want to use a host travel agency.)
If you use a host agency, you don’t possess the cost or need for having your own ARC, CLIA, or IATA number. Within the umbrella of the host agency, you’ll have the capacity to use their accreditation numbers. In case you are an agency utilizing the GDS, the host will file the ARC report so you don’t ought to track it, helping you save a lot of filing time every week. Another bonus? You will save a great deal of moola by not needing to be an ARC-appointed agency, and in many cases, you can make more through their host’s exclusive airline contracts.
One further note on saving you money: Travel host agencies add a tad bit more change in your wallet by taking good care of a few of the required travel agency licensing.
It’s true, you don’t need a host agency. You can go completely independent or enroll in a franchise (we did a write of on everything you could possibly need to know about travel agency franchises), co-op, or consortium. However, when you’re starting a travel agency from home, the ability to access a host agency’s higher commissions, experience, and tools will be extremely helpful. Beyond that, they feature lower risks and investment whilst giving higher commissions.
Getting Ready to Start Your House Based Travel Agency
You may be excited to get started on your travel agency from your home, but there are some things you will need to take care of before registering with a host travel agency. We have a 7-Day Setup Travel Agency Challenge that will walk you through the steps you should take! But here’s a sneak preview:
Choosing your travel agency’s name: The host agency is going to want to know your travel agency term for their records so have it ready. You’ll also require it to the documentation listed below. Read our “Tips for Choosing Travel Agency Names” for several guidelines and make sure to buy the domain. Don’t forget to discover 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 have the largest financial benefits. Most small agencies with few assets start with sole proprietor. Once they get large enough, they’ll go on to an LLC. One thing to note is the fact determining the most effective fit out before hand is advisable. You can imagine the cost and paperwork required by banks, their state, etc. if you legally improve your business name.
Register DBA/your company using the state: DBA is undoubtedly an acronym for “Doing Business As.” If you decide to be a sole proprietor, you may want to register it along with your state as being a DBA. The Small Business Administration (SBA) website shows how to register your company’s name by state. (Note: Not all states require you file a DBA.) In case you are an LLC, the SBA also provides a state by state guide on how to register your LLC.
Have an EIN (optional): Technically, you don’t need a business Identification Number (EIN) since you may use your social security number with certain business structures. However, Personally, i prefer not to give out my social security number generally if i don’t must. On the whole, I might recommend getting an EIN to your travel agency. Also, make sure you check in together with your tax professional when it’s tax filing time-beyond doubt business structures, you could still file beneath your SS# while you offer an EIN. Confusing, I understand. That’s why you go to the experts! ??
Obtain a business banking accounts and credit card create: Again, you don’t need to have a business bank account or credit card, but you’ll have wished you’d had set one up come tax time. Having separate your individual account from your business account from the beginning makes accounting easier and can help you monitor 51dexqpky expense write offs. Lastly, if you’re anything beyond a sole proprietor, you want to keep the money separate to reiterate on the IRS that you and your business are separate entities for tax purposes!
Read our Home Based Local Travel Agent Resources page: I created a page with lots of links which means you don’t have to scour the internet. Here she be, the Home Based Local Travel Agent Resources page. ??
Don’t worry when you didn’t do these things yet, it’s not the conclusion around the globe. But you do should do them at the earliest opportunity. After you start home based travel consultant, you’ll have a great deal of other activities that can demand your attention so laying the proper groundwork once you can is in your best interest.