Tour operator or travel agent? Turkey or Indonesia? Spring or autumn? These questions are asked by every newcomer who decides to invest in the tourism business.
Starting your business in the travel industry, but don’t know how to write a travel agency business plan? Consider the main points that will help you with this.
Where to begin?
There are two types of firms operating in the market: tour operators and travel agents.
Tour operators are engaged in booking places in transport, hotels, i.e. everything that a tourist may need on a trip.
Travel agents also offer services prepared by tour operators — package tours. The travel agent sells the ticket, and then the tour operator fulfills its part specified in the contract.
Therefore, you need to start by choosing your niche.
Travel agency business plan: the pros of this business idea
In general, this business will be of particular interest to those who like to travel a lot. Having tried the services of various tour operators, it will be easier to decide on a partner and reduce the level of risks in the future.
The main advantage of this business is that your job is to find a client and sell the finished service, and everything else has already been done for you.
Another important plus is the lack of licensing for this type of activity.
You can read more about the travel agency business idea here .
Travel Agency Business Plan: Key Implementation Steps
The following steps should be included in the business plan of the travel agency:
Step 1. Preparation of documentation, registration
Step 2. Choosing partners among tour operators
These should be reliable companies that provide quality rest. Moscow hosts the main tourist exhibition of the country twice a year, where you can get acquainted with existing tour operators and conclude an agreement.
Step 3. Rent a well-equipped office in a well-located location
Step 4. Promotion of the service on the market:
- attention-grabbing sign;
- publishing house of a brochure, bulletin, special issue of a newspaper;
- creating a website, using other people’s Internet resources, free newspapers;
- street advertising, near the office of the travel agency.
In order to prepare for sales, you need to conduct market research .
Step 5. Recruitment
It is worth saying that the correct organization of work, the passage of all procedures and registrations, the selection of experienced and reliable personnel is the basis for minimizing risks.
However, in the course of the company’s activities, you will repeatedly have to meet with the tax police, the fire inspectorate, and the sanitary doctor.
There are also risks that can be calculated when drawing up a business plan for a travel agency. This is the seasonality of the business. You need to be prepared for the flow of customers before the May and New Year holidays, during the holiday season (July-August), Indian summer (September), and in October and January-February for possible office downtime.
Travel Agency Business Plan: Costs of Starting a Business
$300,000 — $400,000 will be enough to start a business.
In the business plan of the travel agency, lay down the costs for the following items:
- Registration of a legal entity, opening an account — $10,000;
- Furniture and office equipment — $150,000-250,000;
- Website development – $55,000
- Cash Register — $10,000
- Other expenses — $50,000
Monthly expenses (1st month):
- Employee salary — $40,000;
- Room rental, 25m2 — $30,000;
- Advertising — 20,000-40,000 dollars;
- Communication services — $3,000;
- Internet — $3,000;
- Stationery — $3,000;
- Staff training — $3,000-5,000;
- Others — $10,000;
In total, on average, you will have to spend 100-120 thousand dollars per month