How to effectively start your own travel agency and what the costs are

The most important instrument of an organization or company is the underlying plan. That is why it is a good first step to develop a business plan for yourself if you start your own travel agency. When drafting, always try to view your plans from various perspectives and angles. Also think about the less pleasant things. You then have a solid business plan for your travel organization that you can always fall back on and that can grow with you.

When drawing up your business plan, take into account the conditions that you must draw up and apply. It is therefore wise to adopt the industry standards and, if necessary, adapt them to your own interpretation. O.a. the Association of Small-scale Travel Organizations (VVKR) has standard travel conditions available that you can use. For example, you record how you handle down payments or cancellations.

Research the industry if you’re starting your own travel agency.

When you start drawing up a business plan, you may notice that your knowledge of the travel industry is not yet that great. This is the perfect time to delve deeper into it. The better you do your research, the better your chances of survival will be when you start your own travel agency. Moreover, you will immediately get a feel for the costs associated with starting an online travel agency.

There are a number of important parties within the travel industry that can help you start your travel agency, such as trade associations and guarantee funds.

Because as a travel organization you must meet certain conditions in order to join them and use their logos, you increase the reliability of your travel agency to potential customers. And the more your website visitors trust you, the more likely they are to book with you and the more successful you will be when you start your own travel agency.

Costs for becoming a member of a trade association

For example, if you can use the logo of the Association of Small-scale Travel Organizations (VvKR) or the General Dutch Association of Travel Agencies (ANVR), this will create trust among your travelers. The costs of joining such a trade organization with your travel organization vary greatly: for example, the costs of membership for the VvKR are much lower (approximately 100 euros per year) than the costs for membership of the ANVR (approximately 1200 euros). per year). This is because the VvKR really specializes in supporting small travel organizations, while ANVR has more large parties affiliated with it.

Joining a guarantee fund for travel agencies

In addition to the VvKR and ANVR, Stichting Garantiefonds Reisgelden (SGR), STO Garant, GGTO and other guarantee funds are interesting parties to explore. These guarantee funds provide security for your travelers, because if you as a travel organization go bankrupt or have other financial problems that mean you can no longer continue a trip, a guarantee fund ensures that the trip is still carried out or that people get their money back.

What does it cost to connect your travel agency to a guarantee fund?

The costs of joining a guarantee fund as a travel agency differ depending on your choice. For example, STO guarantee is a special ‘third party compensation scheme’ that is (financially) accessible and has been specially developed by VVKR and STO for small-scale travel organizations. Such an escrow account means that the travel sum is kept safely with the guarantee fund until the trip has actually been carried out and only then is it transferred to you as a travel agent. SGR and GGTO are a bit more expensive to join and are therefore more popular with larger tour operators.

Another point of attention is any insurance that you may need to take out. The costs for this depend on the providers and your wishes. For example, it is common to take out at least professional liability insurance (BAV). With this insurance you prevent high costs if something happens to a traveler during a trip or excursion they have booked with you.

Prevent headaches in the future

Take the time to consider how you want to insure yourself and against what. By planning this carefully first, you can save yourself quite a few headaches in the future. Be realistic: make sure you insure yourself for the important things. The costs can quickly add up, especially with insurance. Since you are not sure whether starting a travel agency yourself will turn out well, it is important to make conscious choices here. Liability insurance is an example of insurance that you should consider for your travel organization: for example, you must have it mandatory if you want to become a member of a trade association such as the Association of Small-scale Travel Organizations.

Another aspect where you can be cost-conscious if you start your own travel agency is purchasing your product, namely airline tickets and travel. You can choose to use the channels that are also available to consumers, but then you are not very cost-conscious. There are also parties that purchase large numbers of tickets and then resell them to start-ups and starters like you. These parties are called consolidators. In other words, if you purchase airline tickets and travel from consolidators, it will be cheaper for you.

Finally, we would like to emphasize that a good website can also make the difference between success and failure. With the right website you can easily attract many leads and customers when you start your own travel agency. But many starting travel organizations make a mistake here and have their first website built without knowing what a good website for a travel agency should meet. Ultimately, you will then run into all kinds of unexpected costs for adjustments and problems that you did not know you had to pay attention to or make agreements about.

That is why it is wise to think carefully in the beginning before investing. There are actually two options to ensure that you only invest your money in a good travel agency website; one that will actually get you bookings:

Option 1 – invest in having a good travel agency website built: only work with a website builder who has experience in the travel industry:
Only have your travel agency website built by a website builder who has real experience in the travel industry. Someone who not only technically knows how to build a website, but who also has experience with really strong marketing websites for selling travel online: websites with convincing texts and good SEO and user-friendly design, specifically for small-scale travel organizations like you who are about to start up. . Because a travel agency website is completely different from the website for a hairdresser or a webshop or other local company.

For example, at reisbureauwebsite.nl we have years of experience in designing and building websites that actually generate bookings. We know all the ins and outs when it comes to a good travel agency website. And once your site is live and your business is up and running, you’ll recoup those costs in no time!

Option 2 – invest in your own knowledge about websites and online sales in the travel industry before you build it yourself or have it built by someone else:
Do you really have no budget for a website builder with experience in the travel industry who also understands marketing and design? And do you choose to build your website yourself, or have it done by someone you know through acquaintances? In that case, option 2 is better suited to you: before you actually build your website, first invest in your own knowledge about online sales in the travel industry and website design!!

Otherwise you really run the risk of incurring costs for a website that will only give you unpleasant surprises and costs afterwards: a website with a standard WordPress theme that is not flexible enough for the type of travel you want to offer, a site that is technically does not work properly, which turns out to need all kinds of adjustments afterwards or during the construction process, or a website with which you cannot be found in Google, etc. etc.

We have developed an online course (especially for people who are just starting their travel agency and may not be able to incur too high costs), in which we help you with everything needed to have a good travel agency website built right from the start of your travel organization. start selling trips via your own website.

Find more information here about the course ‘A website that produces online bookings’, especially for starting travel entrepreneurs with a smaller budget, who still want a successful start for their travel agency at not too high costs.

In short, there are various costs if you start your own travel agency. The exact costs can vary widely. There are various aspects where you can be cost-conscious. Below you will find a small overview of what will cost money if you start your own travel agency:
● Register with the Chamber of Commerce
● Insurance (including professional liability insurance)
● Membership with organizations within the travel industry (think of VvKR, ANVR, SGR, STO-Garant and others)
● Use a booking system or an affiliate that uses such a system (not always necessary for small-scale travel organizations, but not immediately at the start)
● Purchasing airline tickets and travel
● Travel agency website built
● Take a course on marketing and online sales

Do you want to save costs when starting your travel agency? Then start with the free options below to get information about strong marketing and websites:
• Download the free marketing handbook for small-scale travel organizations
• Find free tips and training via the Facebook Community for Small-scale Travel Organizations
• And schedule a free website consultation via this form, so that we can think along with you about a good website solution for your travel agency.