How to start a travel agency: costs, legal steps, tools and your first 90 days

To start a travel agency, first pick a model: host agency, independent or franchise. Then form your business, get an EIN, register as a seller of travel where your state requires it, and carry errors and omissions insurance. After that, set up your booking, payment and client tools, get trained, and book your first trips. You can start under a host agency and accredit later.

Here is each step in order, what it involves, and a 90-day plan to go from idea to first bookings. If you're becoming an advisor rather than starting an agency business, start with how to become a travel agent.

What does it mean to start a travel agency?

A travel agency sells trips on behalf of suppliers: airlines, hotels, cruise lines and tour operators. You plan the trip, book it, and get paid by the supplier, the traveler, or both.

The Bureau of Labor Statistics (BLS) notes that while most travel agents work for agencies, many are self-employed. Self-employed agents also handle recordkeeping, managing staff and marketing on top of selling travel.

Host agency, independent or franchise: which model fits?

Your first decision is how much of the business you build yourself. A host agency lends you its accreditation and supplier deals. Going independent means you own all of it. A franchise sells you a ready-made brand.

Pick a host if you're new and want to sell within weeks. Go independent once you qualify for your own accreditation. Host agency vs independent compares costs and break-even, and what a host agency is covers the basics. For how splits are structured, see commission split models.

Consider a franchise only after reading its Franchise Disclosure Document. The FTC says you must receive it at least 14 days before you're asked to sign any contract, and advises talking to current and former franchisees, an accountant and a lawyer.

What legal steps do you need to start a travel agency?

The legal setup is the same as for most small businesses, plus travel-specific rules in a few states. This is a summary, not legal advice.

1. Choose a business structure

Your structure decides your liability and which income tax return you file.

• Sole proprietorship. The default if you do business without registering. It's simple, but you can be held personally liable for business debts.
• Limited liability company (LLC). An LLC protects you from personal liability in most instances. By default, the IRS treats a single-member LLC as disregarded from its owner and a multi-member LLC as a partnership.

Most states have you register with the Secretary of State or a similar office. Trading under another name may also need a DBA ("doing business as") registration.

2. Get an EIN

An Employer Identification Number (EIN) is your business's federal tax ID. You need one to hire employees or run a partnership or corporation.

It's free. The IRS says you never have to pay a fee for an EIN, and an approved online application gets the number immediately. Skip sites that charge for it. Once you pay advisors or staff, you also need the right tax forms. See W-2 vs 1099 for travel agents.

3. Get a local business license

Licensing depends on your business activities and location, and local governments set their own rules, so check your city and county websites. IATAN also asks for a current business license in your company's legal name when you accredit later.

4. Register as a seller of travel, where required

Some US states have Seller of Travel laws. They decide whether you register, post a bond, or hold traveler money in trust.

Iowa's travel agency law was repealed in 2020. Rules can apply based on where your travelers live, not only where you work. For how these laws affect the money you hold, see how travel agencies collect payments.

5. Get errors and omissions (E&O) insurance

E&O is professional liability insurance that covers losses from negligent acts, mistakes or failures to perform professional duties, like a wrong date on a booking. It doesn't cover intentional misconduct, fraud or criminal acts.

IATAN asks for E&O insurance, or a waiver backed by two years of experience, and Maryland's 2026 law sets $1,000,000 in coverage in the bill text. If you join a host, ask whether its policy covers you before you buy your own. Travel agent E&O insurance covers what a policy includes and costs.

Do you need IATA accreditation to start?

No. You can book under a host agency's number and accredit later. In the US, IATAN gets you recognized. ARC gets you ticketing.

Getting your own takes time and money. IATAN asks home-based or new agencies for $10,000 in available or invested capital and two years of experience for your manager. ARC ticketing adds a bond of at least $20,000.

For fees, timelines and alternatives, read IATA codes explained and how to sell flights without an IATA code. What is a GDS? explains the global distribution systems agencies book through.

How does a travel agency make money?

Through supplier commission and service fees from travelers. How do travel agents get paid? covers how each one reaches you and when. BLS says earnings for many travel agents depend on commissions and service fees.

Supplier commission. Hotels, cruise lines and tour operators pay you a share of what the traveler spends. Not all of it counts: the American Society of Travel Advisors (ASTA) explains that non-commissionable fares exclude a portion of the total cruise fare from your commission base. For when each supplier type actually pays, see supplier commission.

Service fees. Airlines cut standard commissions sharply in the mid-to-late 1990s, according to ASTA. Delta, American and Continental then stopped paying base commission on US and Canadian tickets in 2002, so air tickets often pay the agency nothing. ASTA says service fees compensate for trip planning, research, customization, and ongoing support.

What this means for new agencies: price your time from day one. A planning fee covers the work commission doesn't, like flights and complex itineraries. Travel agent service fees shows how to set one. For what advisors earn by source and experience, see travel agent income.

What does it cost to start a travel agency?

There is no reliable industry-wide figure, so build your own budget. The SBA suggests counting at least one year of monthly expenses. Budget for these lines.

• Formation. LLC filing, a DBA if needed, and a local license.
• Seller of Travel. Registration fees and bonds where your state requires them.
• Insurance. E&O, plus general liability if you have an office.
• Host or accreditation. Host fees and split, or IATAN and ARC fees.
• Training, tools and marketing. A course, a CRM, booking and payment tools, and a website.
• Professional help. An accountant and, for contracts, a lawyer.

EINs are free. IATAN, ARC and state figures are in the sections above, and host agency vs independent puts numbers on both paths.

What tools does a new travel agency need?

Four tools cover most of the work.

1. A CRM. One record per traveler with preferences, passports, past trips and every message. See what a travel CRM must track.
2. Booking access. Hosts usually provide it. Independents need supplier portals or a booking platform. Travel booking APIs explains what each type offers, and travel agency software compares the full tool stack.
3. Payments. Stripe lists travel reservation services among businesses that require additional due diligence, so expect questions. Never store card security codes after authorization: PCI rules forbid it.
4. A website. Your niche, contact details and, where required, your seller of travel number. Say clearly how you differ from online travel agencies (OTAs). To get past trips and reviews found on Google, see travel agency SEO without a blog. Travel agent website covers what to put on the site.

Do you need a certification to become a travel agent?

No certification is required, but BLS says employers may prefer candidates with relevant certification. Prices below are as of October 2026.

IATAN counts certificates like the CTA toward its experience requirement, so the course can pay off twice.

How do you find your first clients?

Start with people who already trust you. Then narrow down.

• Pick a niche. Honeymoons, family cruises, group trips or a region you know well. A niche makes you easier to describe and refer.
• Tell your network. Friends, family and coworkers are your first bookings. Ask each happy traveler for a referral and a review.
• Show your work. Share real itineraries you planned, with the traveler's permission.
• Get listed. Claim the directory listings you already qualify for, such as association and supplier finders.
• Answer fast. Reply to every inquiry quickly, with a clear next step. AI itinerary tools can draft the first plan, if you check every detail.

Your first 90 days: a step-by-step plan

1. Days 1–7: choose your model. Compare hosts, read their contracts, and decide.
2. Days 1–14: set up the business. Form your LLC or DBA, get your EIN, open a business bank account and apply for a local license.
3. Days 7–21: check state rules. Register as a seller of travel where required and confirm your E&O coverage.
4. Days 14–30: start training. Enroll in TRIPKIT, the CTA or your host's program, plus supplier training for your niche.
5. Days 21–45: build your tools. Set up your CRM, booking access and payments, and publish a simple website.
6. Days 30–60: tell people. Announce your business, post sample itineraries, and ask for referrals.
7. Days 45–75: book and deliver. Quote trips, collect deposits, and over-communicate.
8. Days 75–90: review. Check what sold and where your time went, then set your service fee and next-quarter goals.

If you join a host and later want a better fit, see switching host agencies.

What is the job outlook for travel agents?

Steady, with regular openings. These BLS figures cover travel agents in general, not agency owners, and the pay figure excludes self-employed agents.

BLS expects people to continue relying on travel agents for advice on popular or unique destinations and help with travel issues.

Running your agency day to day

Once you're booking, a few routines keep the money and the team in order.

• Access. Give each person only what their job needs, with clear roles and permissions for admins, advisors and analysts.
• Bookkeeping. Record client deposits, commission and advisor pay correctly in QuickBooks or Xero.
• Month-end. Reconcile payouts, trust money and commission with a month-end close checklist.
• Advisor pay. Pay advisors more when they find their own clients, with agent-sourced lead bonuses.
• Unpaid bookings. Cancel unpaid refundable bookings before penalties start, with auto-cancellation.
• Advisors. Make honest offers when recruiting travel advisors, then work on what drives advisor retention.
• Ground transport. Add black car and airport transfers to itineraries, after checking the operator's licensing and insurance.

Start your agency with Tripdash

Tripdash is the host agency platform that certifies travel advisors, sends qualified leads, automates follow-ups, and includes flight and hotel booking systems. IATA accreditation, E&O insurance and supplier access come with it. The commission split is 80%+ to the advisor. See how Tripdash works for advisors.

Sources

1. U.S. Bureau of Labor Statistics. Occupational Outlook Handbook: Travel Agents, 2025–35 edition, last modified August 27, 2026.
2. Internal Revenue Service. Get an employer identification number, reviewed October 16, 2026. Business structures, reviewed October 3, 2026. Limited liability company (LLC), reviewed October 10, 2026.
3. U.S. Small Business Administration. Choose a business structure, Register your business, Apply for licenses and permits, Calculate your startup costs.
4. Federal Trade Commission. A consumer's guide to buying a franchise, September 2020.
5. American Society of Travel Advisors. The history, economic impact and future of non-commissionable fares, May 2026. Roadmap to becoming a travel advisor.
6. The Travel Institute. Certified Travel Associate (CTA) and Start your travel career: TRIPKIT, October 2026.
7. Legal Information Institute, Cornell Law School. Errors and omissions.
8. IATA/IATAN. IATAN accreditation requirements, December 2025. ARC. Become an ARC-accredited travel agency, 2020.
9. State sources: California Attorney General, Cal. Bus. & Prof. Code § 17550.15, Florida FDACS, RCW 19.138.140, Washington DOL, HRS § 468L-5, Hawaii DCCA, Hawaii DCCA TA-00 application, Maryland HB 994 (2026), Maryland Department of Labor, Iowa Code ch. 9D.
10. Stripe. Prohibited and restricted businesses. PCI Security Standards Council. Can card verification codes be stored for card-on-file or recurring transactions?, 2017.
11. HostAgencyReviews. Travel agency accreditation options, August 2024.
12. Travel Planners International on HostAgencyReviews (sponsored). The real costs of starting a home-based travel agency, March 31, 2025.
13. Waybird. 9 questions to ask a host agency before you join, August 19, 2026.
14. Aviation Week. AA, CO follow Delta in cutting commissions, March 19, 2002.