If you’re considering starting start a travel agency, you’re in luck. The start-up prices are relatively low and there are many opportunities for an individual with the adoration for selling travel. Utilizing a host agency causes it to be a ‘plug-and-play’ knowledge about hardly any risk or low up-front costs.
One thing you’ll might like to do is start searching for a host agency. For independent agents (those not employed by a travel agency), about 50% go along with a host, 50% chose to be on their particular.
I’m an advocate of making use of a host agency for almost all agents unfamiliar with the marketplace: The 50% that choose 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 actually a host agency’ that’s an important component to learn. Begin with reading our post covering that topic.
Next step-understanding why you need a host agency. The bottom line is, a host agency will keep your costs down, enable you to earn higher commissions, do your back-end work like commission-tracking, and provide training and support. Some hosts even include Errors & Omissions insurance. (Our “7 Benefits of Using a Host Agency” article is put into more depth about why you would like to utilize a host travel agency.)
By using a host agency, you don’t hold the cost or hassle of having your own ARC, CLIA, or IATA number. Under the umbrella of a host agency, you’ll be able to use their accreditation numbers. When you are an agency making use of the GDS, the host will file the ARC report therefore you don’t need to track it, saving you a great deal of filing time every week. Another bonus? You can expect to save lots of moola by without having to become an ARC-appointed agency, and perhaps, you can make more through their host’s exclusive airline contracts.
A final note on helping you save money: Travel host agencies add a tad bit more change in the bank 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 want to find out about travel agency franchises), co-op, or consortium. However, when you’re starting a travel agency from your own home, having access to a host agency’s higher commissions, experience, and tools will probably be extremely helpful. Beyond that, they offer lower risks and investment while giving higher commissions.
About to Start Your House Based Travel Agency
You may be excited to start out your travel agency from home, but there are certain things you will want to take care of before registering with a host travel agency. There exists a 7-Day Setup Travel Agency Challenge that 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 want to know your travel agency good name for their records so get it ready. You’ll also require it for your documentation listed here. Read our “Tips for Choosing Travel Agency Names” for a few guidelines and make certain to purchase the domain. Don’t forget to identify a travel niche prior to deciding to name your travel agency.
LLC or Sole Proprietor or Corporation: You’ll want to talk to your tax advisor to see where you’ll obtain the largest financial benefits. Most small agencies with few assets begin with sole proprietor. When they get large enough, they’ll proceed to an LLC. One important thing to keep in mind is figuring out the best fit out ahead of time is a good idea. Imaginable the expense and paperwork essential to banks, the state, etc. when you legally alter your company name.
Register DBA/your organization with all the state: DBA is an acronym for “Doing Business As.” If you choose to develop into a sole proprietor, you may have to register it with your state as a DBA. The Small Business Administration (SBA) website shows the best way to register your company’s name by state. (Note: Not every states require you file a DBA.) In case you are an LLC, the SBA also provides 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, I personally prefer not to hand out my social security number should i don’t have to. Generally, I would personally recommend getting an EIN for your travel agency. Also, be sure to check in together with your tax professional when it’s tax filing time-for several business structures, you could possibly still file under your SS# even though you come with an EIN. Confusing, I know. That’s why you go to the experts! ??
Get yourself a business banking account and bank card put in place: Again, you don’t want a business bank account or credit card, but you’ll have wished you’d had set one up come tax time. Having separate your own personal account in the business account from the start makes accounting easier and will assist you to keep track of 51dexqpky expense write offs. Lastly, if you’re anything beyond a sole proprietor, you would like to make your money separate to reiterate towards the IRS that your business are separate entities for tax purposes!
Read our Home Based Local Travel Agent Resources page: I assembled a page with plenty of links so you don’t must scour the net. Here she be, your home Based Local Travel Agent Resources page. ??
Don’t worry should you didn’t do these matters yet, it’s not the end on the planet. But you do have to do them as quickly as possible. When you start work from home travel agent, you’ll have lots of other activities that will demand your attention so laying the proper groundwork when you can is beneficial for you.