Starting a travel agency franchise can be a lucrative and fulfilling career option but there are many steps you need to consider. If you are ready to take the leap and join hundreds of successful travel agency owners, here are the first seven steps you need to take:
1. Research which franchisor or travel host agency you want to align with. While there are many franchisors and host agencies out there to choose from that will help you start a travel agency, you want to make sure the company you partner with is an established company with a proven business model. They should offer training and education, and provide marketing vehicles that are easy to use and understand, along with efficient technology and accounting platforms. Ask to talk to their current franchise owners to get a feel for what the network can provide for your business.
2. Decide if a retail location or home-based office is the right fit for you. There are many factors to consider when deciding if you should open a retail travel office or start up your travel agency business from a home office. You will need to evaluate the possible pros and cons of each option such as the location of your proposed office, potential client base, cost to maintain, employees you may need to hire, and more. You may have found the perfect spot in a highly visible area in town where a retail location makes sense. Some people choose to start up their business in their home to save money and then move into a retail model after they have built up their client base. You need to do what makes sense for your unique business goals.
3. Apply for a business loan. While the start-up costs vary on opening a travel franchise, you may need to take out a small loan to help you get your business off the ground. You will need to factor in franchise fees, marketing and advertising expenses, and equipment purchases you might need to make to get started. Luckily, many franchisors include sales and marketing material costs within their franchise fee, and some even send out material to your clients for you on your behalf.
4. Choose your specialty. Now, it’s the fun part where you get to decide what area of the travel industry you want to specialize in. What clientele will you focus on – singles, families, couples, or business travelers? Will you specialize in a specific niche such as river cruising, group cruising, luxury cruising, honeymoon cruises or maybe choose to focus on a specific destination? You need to determine what group and/or specialty you are passionate about so you can focus your time and energy into becoming the best consultant you can be for your population of clients. While many consultants do service a number of diverse clientele, their specialty often helps them stand out from the crowd as an expert.
5. Attend training. Once you have a solid plan to start your travel agency in place, you need to learn everything you can about operating your business as well as the travel industry and your specialization. You will most likely be offered training courses through your franchise affiliation covering business operations, marketing, accounting, technology, specific cruise and land suppliers, and destinations. Many travel consultants even opt to go one step further and receive a specific designation for their specialty from industry associations such as ASTA, or CLIA.
6. Build your customer base. In order to start a thriving travel agency, you need to build a potential client list from everyone you know. Think of family, friends, neighbors, work colleagues, and even your hairdresser or parents you share carpool duties with. Next, think of any special groups, committees or associations you are members of such as church, PTA, rotary, book club, soccer league and more. You can add all of these people and groups into your initial list of potential cruise/travel customers.
7. Get out there. It’s time to let everyone know about your new business and specialty and how you can help them plan their next vacation. Many franchisors have a solid plan in place to help you introduce yourself and market travel opportunities to your contacts, as well as break into new groups to network and promote your services. The good thing is that once you have some satisfied customers, the word will spread and hopefully so will your business!
With the help of a reputable franchisor, starting a travel agency can be a fun and worthwhile career investment.
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