Business Idea

Start An Online Travel Agency

About

Starting an online travel agency requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell travel services, or selling travel services online, you can use this page as a guide for everything you'll need to know.

Want to learn more? You can check out our full guide on how to start an online travel agency ➜

Key stats

market size
$596B
starting costs
$29.7K
gross margin
20%
avg product price
$200
time to build
9 months
growth
SEO
time investment
Full time

About

Starting an online travel agency requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell travel services, or selling travel services online, you can use this page as a guide for everything you'll need to know.

Want to learn more? You can check out our full guide on how to start an online travel agency ➜

Key stats

market size
$596B
starting costs
$29.7K
gross margin
20%
avg product price
$200

 

time to build
9 months
growth
SEO
time investment
Full time

Startup Costs

Min Startup Costs Max Startup Costs
Office Space Expenses $35 $3,250
Employee & Freelancer Expenses $0 $5,500
Equipment & Supply Expenses $500 $5,000
Website Costs $232 $6,500
Business Formation Fees $5,600 $20,400
Software Expenses $150 $3,044
Advertising & Marketing Costs $0 $8,050
Other Expenses $0 $800
Specific Industry Expenses $0 $300
Total Startup Costs $6,517 $52,844

Successful Businesses

Business URL Rank
Priceline priceline.com #2,495
Webflow.IO webflow.io #4,406
Travelgenio travelgenio.com #37,676
Your 360º travel partner bedsonline.com #72,322
PHPTRAVELS phptravels.com #114,707
Book cheap holidays: flights, hotels and car hire opodo.co.uk #117,355
VAX VacationAccess vaxvacationaccess.com #135,159
Otrams otrams.com #180,905
TravelStore travelstore.com #200,851
Amy amybd.com #220,414
aRes Travel arestravel.com #259,980

Pros & Cons

Pros Description
Flexibility You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own.
Rewarding work Starting a online travel agency can be really rewarding work. After all, you are solving an immediate issue for your customer and you're working on something you truly care about.
Scalable With businesses and processes changing daily, there will always be demand for new features, products and services for your business. Additionally, there are several different business models and pricing tiers you can implement that will allow you to reach all types of customers.
Traffic to your website A online travel agency gives people a reason to visit your website and to keep coming back to you!
No overhead costs To get your online travel agency started, there are no costs associated with overhead, storage, packaging, etc. This will save you a lot of time and money!
Meaningful business connections You never know who you will meet as a online travel agency. This could be the start of an incredible business opportunity!
Cons Description
Longer Sales Process A online travel agency can be a big time and money investment for your customer, so it's important you plan and predict a longer conversion funnel and stay in communication with potential customers.
Security Issues With any Saas business, data loss and security issues may arise throughout your process of building your product. It's critical that you understand exactly what you're responsible for and how to avoid potential issues down the road.
Low margins The gross margins for your online travel agency are typically around 20%, which can make it more challenging to incur new expenses and maintain profitability.
Taxes As a online travel agency, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it.
Niche Market A niche business is not necessarily a bad thing, in fact, it can be the key to your success. However, it can be more challenging and time consuming to find the perfect niche market and target audience.
You may need to charge sales tax If you are selling your products in various states, you may be required to charge sales tax. Although this may not impact your financials specifically, it can be a headache to create a process and procedure for this. To learn more about sales tax, check out [this article](https://www.thebalancesmb.com/do-i-need-to-collect-sales-taxes-in-my-state-398913)

Marketing Ideas

  • 1

    Word of mouth

    The most tried and true way to grow a online travel agency is through word of mouth - some entrepreneurs would say it's more important than all social media.

  • 2

    Advertising on social media

    Social media advertising is one of the leading ways to get the word out when it comes to online travel agency.

    There are various different Social Media platforms available to you. Some may be more critical for your marketing efforts than others, however, it's important to have an understanding of what's out there and available to you.

    Learn more about advertising on social media ➜

  • 3

    Outsourcing

    If you can afford to hire someone to help support your online travel agency, outsourcing is a great way to save you time and energy.

    Most importantly, outsourcing can help you focus on the core growth of your business, versus spending your time on day to day tasks that other people can do just as well!

    If you do plan to outsource your work, it's important to be hyper-familiar with the actual work involved.