If you’re contemplating starting start a travel business, you’re in luck. The beginning-up costs are relatively low and there are several opportunities for an individual with all the desire for selling travel. Utilizing a host agency can make it a ‘plug-and-play’ exposure to hardly any risk or low up-front costs.
The first thing you’ll want to do is start looking for a host agency. For independent agents (those not used by a travel agency), about 50% go along with a host, 50% chose to go on their own personal.
I’m an advocate of utilizing a host agency for pretty much all agents unfamiliar with the market: The 50% that choose to go independently 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 important component to comprehend. Start with reading our post covering that topic.
Following step-understanding why you want a host agency. The bottom line is, a host agency could 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 Benefits of Using a Host Agency” article goes into more depth about why you would like to work with a host travel agency.)
By using a host agency, you don’t hold the cost or need for obtaining your own ARC, CLIA, or IATA number. Beneath the umbrella of any host agency, you’ll be capable of use their accreditation numbers. When you are an agency utilizing the GDS, the host will file the ARC report so that you don’t must track it, saving you a lot of filing time per week. Another bonus? You may save a great deal of moola by lacking being an ARC-appointed agency, and perhaps, you can generate more through their host’s exclusive airline contracts.
A final note on helping you save money: Travel host agencies add a bit more change in the bank by caring for several of the required travel agency licensing.
It’s true, you don’t need a host agency. It is possible to 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 at home, having access to a host agency’s higher commissions, experience, and tools is going to be extremely helpful. Beyond that, they feature lower risks and investment whilst giving higher commissions.
About to Start Your Property Based Travel Agency
You could be excited to begin your travel agency from home, but there are certain things you should care for before signing up with a host travel agency. We have a 7-Day Setup Travel Agency Challenge which will take you step-by-step through the steps you need to take! But here’s a sneak preview:
Choosing your travel agency’s name: The host agency will probably need to know your travel agency good name for their records so already have it ready. You’ll also require it for that documentation listed below. Read our “Tips for selecting Travel Agency Names” for several guidelines and make certain to buy the domain. Don’t forget to find a travel niche before you decide to name your travel agency.
LLC or Sole Proprietor or Corporation: You’ll want to speak with your tax advisor to find out where you’ll receive the largest financial benefits. Most small agencies with few assets get started with sole proprietor. If they get big enough, they’ll go on to an LLC. One important thing to remember is the fact that figuring out the ideal fit out ahead of time is a good idea. You can imagine the cost and paperwork essential to banks, the state, etc. whenever you legally make positive changes to company name.
Register DBA/your company with all the state: DBA is surely an acronym for “Doing Business As.” If you decide to become a sole proprietor, you may have to register it together 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: Not all states require you file a DBA.) When you are an LLC, the SBA also offers a state by state guide on the way to register your LLC.
Purchase an EIN (optional): Technically, you don’t need an Employer Identification Number (EIN) since you may use your social security number with certain business structures. However, Personally, i prefer never to share my social security number basically if i don’t need to. In general, I might recommend getting an EIN for the travel agency. Also, ensure that you sign in along with your tax professional when it’s tax filing time-for certain business structures, you could still file below your SS# even though you have an EIN. Confusing, I know. That’s why you visit the professionals! ??
Get yourself a business checking account and bank card set up: Again, you don’t need to have a business checking account or visa or mastercard, but you’ll have wished you’d had set one up come tax time. Having separate your personal account through the business account in the first place makes accounting easier and can help you keep track of 51dexqpky expense write offs. Lastly, if you’re anything beyond a sole proprietor, you need to make your money separate to reiterate to the IRS that both you and your business are separate entities for tax purposes!
Read our Home Based Travel Agent Resources page: I assembled a page with lots of links therefore you don’t have to scour the net. Here she be, the property Based Local Travel Agent Resources page. ??
Don’t worry if you didn’t do these things yet, it’s not the final around the globe. But you will need to do them as soon as possible. As soon as you start become a travel agent from home, you’ll have a lot of other things that will demand your attention so laying the correct groundwork as soon as you can is in your best interest.