800FUND.COM’s Take on Travel Agencies
Research by the Travel Industry Association of America (TIA) indicates that the travel and tourism industry generates $1.3 trillion in economic activity in the U.S. every year. That’s equivalent to $3.4 billion a day, $148 million an hour, $2.4 million a minute and $40,000 a second. No wonder the opportunities for aspiring travel service business owners are considerably endless.
If you’re someone who loves travel, loves the planning process, and enjoys helping others have great experiences, you may have considered starting a travel agency. A travel business can be fairly inexpensive to start. You won’t have expensive equipment to buy and probably won’t need extensive space in the beginning. You can also get away with limited staff and little upfront cost. The industry continues to enjoy robust activity despite challenges that are enough to send other industries into tailspins. No doubt, that’s because people will always want or need to go places, whether it’s to a business meeting or conference, to spend the holidays with family in another state, or just to enjoy some much deserved vacation time. The travel agency is huge. Downturns in the economy can’t stop it. Weather conditions can’t shut it down-at least, not for long.
Below you will find the two types of travel service businesses to get you started.
Home-based: If you want to keep your overhead low and your profits high, this could be the type of business for you. Thanks to the internet, home-based agents have at their command all the same tools that used to be available only at a traditional brick-and-mortar travel agency.
Independent contractor: If you like working in a traditional travel agency but love the freedom of being your own boss even better, then working as an independent contractor in the travel industry could be the right move for you. Independent contractors make their own hours (with the needs of the travel agency in mind, of course), build their own client list, and are solely responsible for paying their own way at tax time. At the same time, they benefit from having a physical office where they can meet with clients, pick up walk-in business, and drop the name of an established agency when they make cold calls or follow up on leads. That gives you the type of credibility that can be very valuable when you’re just starting out on your own.
Be sure to have a plan in place for how you will obtain funding. You’ll more than likely need additional funds for marketing materials at the very least; both online, such as your business website, and offline, such as flyers, posters, business cards, and more. Your initial funding budget will likely go toward any branding or advertising, and you may also decide to rent office space and hire employees, which is a fairly large expense. You can truly benefit from a Merchant Cash Advance when in need for additional working capital.