If you decide to open a travel company, then you may have many questions that can only be answered by specialists with a sufficient level of knowledge and experience. Unfortunately, there are not so many experts in this industry. At the same time, it is very important that all issues related to organizing this business are resolved as quickly as possible with maximum accessibility and correctness. Otherwise, you will simply abandon your idea, since opening a travel agency from scratch is quite difficult without the necessary amount of information.
Collecting documents
Opening a business in the field of tourism services requires certain documents. What do you need:
- A statement that you have state registration.
- Charter of the company in two copies.
- Decision on establishment.
- Original document confirming that you paid for registration. This could be a receipt.
- The agreement on establishment, as well as a request that will allow you to receive a copy of the charter.
- Letter of guarantee from the owner of the premises at whose address the company is registered.
- An original document that confirms payment of the state fee for receiving a copy of the charter, as well as an agreement on establishment, for example, a payment order or receipt.
When thinking about how to open a travel agency from scratch, you should first collect all the listed papers. It must be remembered that the application for registration must be certified by a notary and signed by the applicant. After all, he is responsible for the correctness and reliability of all information.
If you open an IP...
If you decide to register as an individual entrepreneur, then you must provide:
Where is the best place to locate an agency office?
Not everyone decides to start their own business in this area. So, how to open a travel agency from scratch without high costs? You can't do this without outside help. Of course, it is not only money that plays a decisive role. It is also very important where exactly your company’s office will be located.
While all the documents are being prepared, you can start looking for premises. In order to open a travel company, you will need a premises of no more than 20 square meters. There should also be a personal line for connecting phones and the Internet. So, where is the best place to locate an office:
- City center. If you want to attract more clients by providing travel agency services, then the main street of the village may be the ideal place. The best option is a room located in a commercial or residential building on the ground floor. However, it should be remembered that the cost of renting such premises will be very high.
- Business center. Having an office in this building can also have a positive impact on your business. After all, in addition to outside visitors, business center employees can become your clients. The only negative is that you will not be able to place outdoor advertising and signboards.
- Shopping centers. If you decide to open your office here, then a large number of clients await you. However, renting a space in a popular shopping center can cost you a decent amount of money.
- Sleeping areas. Here, a new travel company may be one of a kind. Plus, you can save on rent. The only downside is that you will have to put in a lot of effort to get your agency noticed. You can use any marketing strategy for this.
We select the right personnel
Many entrepreneurs who decide to start their own business in this area often do not fully realize that personnel for such work must be carefully selected. After all, the human factor plays an important role in this matter.
The agency is based precisely on the well-coordinated work of the team. And for success, personnel must be selected with special attention.
Who do you need
- System administrator.
- Accountant.
- Sales Manager.
It is worth noting that the staff must gradually increase if the travel agency grows. Experts recommend hiring two sales managers. After all, they are the driving force of your activities. Managers promote your tourism product on the market. In addition, sales managers must be able to communicate with people. You should not hope that employment exchanges will offer you real masters. It is better to start searching for an available candidate on your own.
First steps on the path to success
So, the opening. A travel agency ideally requires a thorough study of the entire algorithm for creating a business plan. You don't have to be a professional in a particular industry. To begin with, you should carefully study the structure of this activity from the inside and analyze the real situation of organizations that have been providing similar services for many years.
To make everything clear to you, let's look at a diagram that contains all the components necessary to create a business plan and open a travel agency. It can be divided into several points that are interconnected. Moreover, each stage plays an important role at the very beginning of the activity. That is why you simply cannot skip any of the points.
Company concept
The business plan of a travel company begins precisely from this point. The company's concept must fully reflect the type of activity. For example, an organization may be or provide mixed services.
In addition, all documents must fully reflect all possible activities of the company. For example, the sale of tickets for railway and air transport, insurance for clients traveling on travel, visa processing, limousine booking, and transfer services.
We determine in advance the list of services
Before opening a travel agency from scratch, you need to decide on the list of services. At the request of clients, the company must provide an interpreter and a guide. The ideal option is an employee who speaks several foreign languages fluently and is able to serve as a tour guide. At the same time, the guide must know all the interesting places that vacationers should visit.
A travel agency can purchase everything you need for your trip. In this case, travel for tourists will be even more enjoyable. After all, they won’t have to think about purchases and try to predict all the little troubles. It is worth noting that representatives of travel companies very often practice such a service as booking tables in a restaurant. Vacationers can visit it immediately upon arrival.
Why is this necessary?
Those who have already started a tourism and hotel business must complete all the necessary documents if their client receives a foreign passport. In addition, they readily provide an accompanying person or a personal guide.
Very often a person who travels abroad does not know a foreign language. As a result, this can greatly complicate the vacationer’s communication with the local population. To prevent this from happening, many turn to a travel agency for help and hire a translator. It is worth noting that the company must provide a specialist in the field of foreign languages upon the first request of vacationers.
Scheme of all main stages
Before you open a travel agency from scratch, you need to clearly understand how it operates. Many did not fully work out their plan and, as a result, simply could not engage in this type of activity. Let's figure out how the technology for implementing, promoting and developing a tourism product is built using the example of a specific trip:
- To begin with, it is worth determining the supply and demand in the tourism services market.
- Create a detailed description of the service that the agency will offer to its clients.
- It is necessary to develop and design the content of all company service processes.
- Work out the route in detail.
- Create a general movement plan.
- It is imperative to draw up a list of services that the client can use immediately upon arriving at his vacation spot.
- A full survey of the route the tour will take should be carried out.
- After this, an analysis of the designed tour should be carried out.
- Then prepare all the documentation.
- Don't forget about control. It is better to choose the most effective method.
- After completing the development of the route itself and preparing all the documentation, you should start advertising, various marketing moves and promotion methods. This will make your product popular.
- It is important to choose the right sales method, as well as methods for receiving payment from clients.
- Of course, before selling, you should calculate the cost and final price of the tourism product.
- Only after all this does sales begin, and then control over the quality of services provided and the customer service process.
Travel agency from scratch: pros and cons
Anyone who wants to work in the field of tourism services is faced with a choice: start everything from scratch or purchase an existing business. At the same time, many people forget that both the first and second options have their drawbacks.
A travel agency created from scratch has greater advantages than a purchased company. You won't have to fight the old order and win your respect from your subordinates. In addition, many travel agencies for sale are unprofitable. Statistics show that 90% of those organizations that are put up for sale can be considered completely bankrupt. However, a business started from scratch also has disadvantages. First of all, you will have to spend a lot of effort and, of course, time to develop routes, settle into the new premises and develop a client base. In addition, you will need investors to open a business in this area.
How much do you need to invest?
Opening a travel agency from scratch is a business that requires large investments. So how much money will it cost? Let's calculate:
- First of all, you need to register as a legal entity - from 25 thousand rubles.
- To renovate the premises and purchase furniture - from 75 thousand rubles.
- Install computers and office equipment - from 60 thousand rubles.
- Develop your own corporate style and solve the issue of printing - from 10 thousand rubles.
- Create a company website - from 35 thousand rubles.
- For other expenses, as well as for connecting phones and the Internet - from 50 thousand rubles.
The result is a decent amount: about 255 thousand rubles. This is an approximate cost estimate for a travel company with three employees and an office in Moscow. In other regions the cost will be significantly lower. It is worth remembering that the specified amount will only be needed to get started. Starting a business in this area requires a lot of expenses. In addition, you will have to spend about 150 thousand rubles monthly. Therefore, initially you should have from 500 to 700 thousand rubles in reserve. The travel agency will begin to make a profit only after three months. If there is no such amount, then investors will help. To open a business in this area, it is imperative to have initial capital.
The Most Important Thing: Going to Market
The success of your company depends not only on a well-located office and professional employees, but also on advertising. You should invest a lot of money in this part. Only good advertising can attract potential clients to you. You need everyone to know about your travel agency. So, everything is ready and you celebrated the opening. The travel agency is ready for normal work. But where can you get clients?
Don’t expect a large flow of people wanting to relax right away. To develop a small tourist base, you need to spend a little time. If you approach the matter correctly, then they will soon start talking about you. As you know, people are more willing to believe their friends and acquaintances than advertising. That is why it is very important for you to treat your clients with attention at this stage.
There is another option. You can open an agency based on franchising. An already well-known brand does not require promotion, and it will be much easier for you. After all, it does not require much effort in terms of advertising. What should I do? It's up to you to decide.
The tourism business is considered one of the most profitable: even during a crisis, people want to have a good rest. Starting your own business is not difficult, however, like any field of activity, tourism has its own key features.
Features of working in the tourism business
From the client's point of view, the tourism sector is a complete paradise. When one hears the word “tourism” one imagines white beaches, fluffy palm trees, bright lights in bars...
From the inside, everything is completely different: the tourism business requires a responsible approach: the agent will be responsible for any trouble that happens in a foreign country.
In particular:
- The safety of clients is entirely the responsibility of the travel agency.
They must be warned about all possible problems: about the physical and mental stress of the tour, about the dangers that may threaten them, about how to behave in any emergency situation.All equipment used by tourists must be fully functional and comply with regulations.
Personnel must have excellent orientation and be able to find a way out in any scenario. - The information provided to clients must be completely reliable.
No silences or omissions: they must know about all possible risks, delays and discounts. - The ecology of the region where clients are traveling must be ideal.
The political situation should not interfere with their vacation.If something changes during the booking of a tour (a war breaks out, an accident occurs at a large enterprise, terrorist attacks become more frequent), clients must be notified about this in advance and, if they wish, they must be provided with similar vouchers to another place.
- The personnel working with clients must be well prepared, answer any question, not hide anything and be familiar with the life and customs of the countries where vouchers are provided, so as to easily resolve any difficulties that arise.
In addition, the tourism business is highly competitive: before starting to engage in it, you need to make sure that the company will find its niche and will be in demand. Otherwise, there is a high chance of burning out.
How much does it cost to open a travel agency in Russia?
Opening a business always costs money. In order to form a travel agency, you will need at least 200 thousand rubles - and possibly more.
This money will include:
- the premises in which the agency will be located;
- personnel who will serve customers;
- advertising that will attract them;
- vouchers on which clients will actually travel.
However, the investment may not be so large if the travel agency is opened at home and its entire staff consists of one person. This possibility also exists.
Starting a travel business: first steps
Before hiring staff and renting premises, you should take care of much more pressing matters, which boil down to working with documents.
It takes place in several stages, sequentially.
Market analysis
At this stage, you need to collect information about an existing offer and try to find a niche for your company. Perhaps no one takes tourists to China.
Perhaps it is in the selected market segment that there are no relatively cheap and well-known tours to Thailand. Perhaps people are showing interest in extreme sports, but there is no offer yet.
The main thing is to determine exactly what people need.
Drawing up a business plan
At this stage, you need to think through in detail what the company’s work will look like: not in general terms, but thoroughly.
In the tourism business, a plan is usually drawn up like this:
- Free cheese only comes in a mousetrap.
If an operator offers tours at prices that are significantly lower than those of his colleagues, this is not a reason to buy them all, this is a reason to be wary.It is quite possible that there is a catch in the tours: non-compliance with the stated conditions, complications, inconveniences, for which the agent will be primarily responsible, since it is from him that the tourist will buy the tour.
- The longer a company has been on the market, the higher the likelihood that it is reliable.
- Before concluding an agency agreement, you should read reviews on the Internet.
If there are a lot of complaints about a company, this is a wake-up call - it might be worth looking for someone else.
Choosing the Right Location
There are several options here:
- Center.
This option is for those who are not afraid of its main drawback: the high cost, as well as the difficulty of finding a building with a separate entrance.If this is not a problem, you can take full advantage of the advantages: place a creative sign that will attract customers from the street, increase the confidence of future tourists in the agency, and make it easier for them to find the right home.
- Business center.
This option is for those who are not afraid of the access system and the impossibility of placing a sign outside.There will be no flow of clients from the street, but you can get a newly renovated premises, an influx of tourists from other offices and increased confidence in such a reputable office.
- Shopping mall.
This option is for those who are not afraid to search for a long time for a suitable free place and pay high rent.Pros: a constant flow of people passing by, some of whom will definitely become interested in the company.
- Sleeping area, outskirts.
This option has the opportunity not to face high competition, not to pay high rent and to attract local residents who probably also want to go on vacation.However, the flow of customers will be limited and a lot of effort will be required in advertising and retaining regular users.
Design
The room, when it is removed, should be decorated accordingly. Cleanliness, gloss, shine and always things that make you think of other countries.
Photos or intricate souvenirs are something that will create an enticing atmosphere of adventure. And, of course, care should be taken to ensure that all staff are equipped with equipment, and that the office has telephone and Internet connections.
Recruitment
You should choose specialists who love their work, are savvy in its nuances and are focused on career growth. You can look for yesterday's excellent students, lure people away from competitors, or take on the temporarily unemployed - it all depends solely on taste.
You will need:
- At least two managers, since one cannot process all applications.
- An accountant who will be busy counting and settling accounts.
In the early stages, you can get by with a small staff: when the business expands and the client base grows, it will be possible to hire more people.
Advertising
Without the right PR company, even the best product will not be sold. Therefore, it is imperative to allocate enough money for these needs.
The main rule of the tourism business: honesty. Any lie will backfire: in the age of information technology, any discrepancies will become known on forums and no one will want to use the company’s services.
Therefore, if long and fruitful work is expected, it is better to immediately work conscientiously, without allowing yourself to be dishonest.
How to open a travel agency from scratch if there is no start-up capital
Start-up capital is a serious help in starting any business. However, in the case of tourism, you can make do with improvised materials, if you are not lazy and do not immediately count on fabulous profits.
You will need:
- A computer through which you can advertise, keep in touch with clients and create the appearance of a serious company.
- Some money to buy the very first tours.
- The ability to communicate with people and (optional, but very desirable) a wide circle of acquaintances.
- Availability of free time and ability to advertise.
The best people to start working without starting capital are people who have a huge number of friends and acquaintances who have the opportunity to use the services of an agent and recommend him to their acquaintances. And, of course, you can’t do without advertising: your own website, your own group on social networks, constant updates, possibly discounts.
It will not be possible to immediately reach the level of serious agencies. However, how quickly you can create a stable client base and start making a profit depends only on the agent’s abilities.
You can find out how a travel agency is from the video.
How to open a travel agency as a franchise
Working under a fanchise is, in fact, working under someone else’s name, which is perfect for those who are not confident in their knowledge, but are confident in their abilities. In this case, licensing and registration will also be required, but getting started will be much easier: to do this, you need to enter into an agreement with a large company that will allow the newcomer to use its brand for a share of the profits.
The contract may imply that the company provides not only a name, but also:
- Ready-made technologies, including online tour ordering systems and a website.
- Free training for employees.
- The ability to use brand and style for the benefit of all.
- Opportunity to receive comprehensive support.
- Ability to forward conflicts with operators to a senior firm.
In general, this option is suitable for learning how to work in this industry, but it is not suitable for starting to make a solid profit. Sooner or later you will have to go free swimming.
How to open an online agency
In order to create an online agency you will need a good programmer and an equally good designer.
Together they must create a website where the client can:
- read all the details about the tours that interest him;
- choose a specific tour and book a tour;
- pay for the tour and generate the necessary package of documents.
This approach has certain advantages: personnel costs become minimal, you can serve clients from anywhere in Russia, you don’t have to sit in the office all day, and registration is as simple and automated as possible.
However, the site can be hacked, and working with documents requires either the presence of the client or working with scans. The site will also require strong technical support.
Like any choice, this one may seem ambiguous.
Advertising, promotion and development methods
There are different ways to do this:
How to behave during the low season
The tourism business is obviously influenced by the seasons: in the summer people tend to go on vacation, the flow increases during school holidays and New Year holidays - the rest of the time the flow decreases and it can be difficult for a small company to stay afloat.
There are several secrets that will help you survive:
- You should set aside money for the “off season” in the summer so as not to end up bankrupt in the middle of winter.
- In the summer you can hire additional workers, but in the winter you can leave only the core.
- In the summer you can sell any tours - they will still be successful. In winter, you should pay attention to ski tourism and boarding houses inside Russia.
The main thing is to play it safe and provide yourself with a financial cushion in advance.
Profitability and payback of the tourism business
Is it profitable to open a travel agency? For an agency to start paying off, it needs to work efficiently and conscientiously so that clients come back and bring friends.
When the total sale of vouchers per month is 500, the income will be from 50,000 to 100,000 rubles.
To start earning more, you will need to expand your staff and attract new clients.
This is a simple law: the better the service, the higher the profit.
Conclusion
The tourism business has its own risks, pitfalls and problems.
However, if you approach it well, having studied the market and knowing your business perfectly, all this can be avoided.
The main thing is honesty and accuracy.
And, of course, reputation.
Find out how to open a travel agency from the video.
How to open a travel agency: market analysis + 5 steps for starting a business + detailed financial plan + calculation of business profitability.
Capital investments: from 425,000 rubles.
Payback period: from 8 months.
Do you have good knowledge of geography and excellent organizational skills? Or maybe you just want to give people joy and organize an unforgettable vacation that they will want to repeat? Or are you a quick learner and want to experience the joy of financial independence and start your own business?
Then information about how to open a travel agency, will be relevant for you. Today we will find out the intricacies of running this business, as well as how much money will be needed to start it.
Tour operator and travel agency: finding out the difference
Before moving on to the answer to the question of how to open a travel agency, let’s start with the fact that many still work with a tour operator. And knowing the difference between these two categories is useful not only for those who are going on vacation, but also for those who wish to enter this industry.
Firstly, it is the operator who “creates” the tour from start to finish: forms, promotes and sells. Its specialists book a hotel, pay for a flight ticket, select excursions, and provide transportation for tourists.
As for the implementation of the tour, he can do it independently or through agencies. The second one’s responsibilities include selling the ticket. The travel agency selects the necessary option for the client, informs him about all its nuances
Therefore, difference number one: a tour operator creates a tour, and a travel agency only implements it.
Secondly, to start the activity of a tour operator, it is necessary to register only as a legal entity that has certain financial security. While a travel agent can be either an individual entrepreneur or a legal entity.
Difference number two: a travel agency can be opened in any organizational and legal form, and it does not need to have financial security, since, unlike a tour operator, it does not pay insurance.
Thirdly, the tour operator is responsible for setting the price. That is, the agency sells a tour at a certain price. And his reward will be a commission, which is set by the company providing the trip.
Difference number three: a travel agent does not influence the cost of the tour; he works for a fee from the tour operator. In addition, sometimes in order to achieve large sales volumes, specialists can reduce the price, unfortunately to the detriment of their commissions.
Fourthly, by default, responsibility for a “failed” tour lies with the operator, who will be subject to claims from clients.
The travel agency is responsible only under the contract, and most often its responsibility is related to the fact that it must fully inform the client, pay for his trip and tell him about all his rights and obligations.
Therefore, difference number four: the tour operator is responsible for the quality of the tour, unless otherwise provided by the contract.
Typical scheme of a travel agency
When you decide to open a travel agency, you need to understand how it works:
- An existing travel agent is looking for trusted operators with whom it enters into a contract for further cooperation.
- A travel agent studies the tour operator's offers down to the smallest detail and begins to look for clients.
- If one is found, the travel agent enters into an agreement with him and submits an application to book services with the operator.
- The tour operator accepts the application and, which must subsequently be paid.
- After this, the funds received by the travel agent, minus the established commission (usually 10-15%), are transferred to the tour operator’s account.
- The tour operator transfers all the necessary documents to the agent, who subsequently provides all the information to the tourist.
- After the transaction is completed, the agency transmits the report to the operator, who prepares an invoice for it.
Note: if the client refuses the trip after payment, then you will be forced to pay the operator a fine. This “pitfall” must be taken into account if you want to open a travel agency according to this scheme.
The situation on the Russian tourism market
Opening a travel agency and not analyzing this industry is extremely reckless. Any business should begin by studying the market situation, finding out its strengths and weaknesses.
The Russian tourism market never ceases to develop. Even in small towns you can find travel agencies that offer their services. They are often approached by those who want to travel abroad for impressions.
But currently, under the influence of many factors (exchange rates, unstable situation in a number of foreign countries, etc.), domestic tourism has begun to be in demand. And this is not surprising, because our country is famous for many beautiful places, which also attract foreign tourists.
Therefore, when you decide to open a travel agency, look for operators who deal with such tours.
It is also worth noting that in 2017 the situation in the tourism market has improved significantly compared to the previous two years. And by the way, Russian tourists began to prefer more exotic countries rather than Europe. Therefore, opening a travel agency is now quite profitable due to the development of this area.
Special attention is paid to online sales. Nowadays, people buy more and more on the Internet, so creating your own website with the possibility of online booking and payment is mandatory.
As for the strengths of the business, everything will depend only on the quality and organization of your work.
Therefore, when deciding to open a travel agency, you need to bet on:
- providing a wide range of services;
- competent employees who are focused not only on the number of tours sold, but also on quality customer service;
- cooperation with proven and well-known tour operators.
Opening a travel agency involves risks that must be taken into account:
- Seasonality - it so happens that for the most part people like to travel abroad in the summer and for the New Year.
- High competition- the tourism business is a fairly filled niche; new players are constantly appearing on the market who can provide customers with something new and better quality.
- Lack of stability- exchange rate changes, the political and economic situation in the country, inflation affect the work of travel agencies, since as a result of these factors the purchasing power of clients may decrease.
Inability to accurately predict performance results- even with a detailed study and analysis of tour sales, it is impossible to accurately calculate the expected profit.
For this reason, you need to focus on advertising in order to attract as many customers as possible.
Step-by-step instructions on how to open a travel agency
When answering the question of how to open a travel agency, you need to understand that the main expenses will go to setting up an office, creating a website and, of course, promotion.
The process of opening a “tourist” business will consist of the following stages:
| Stage | 1 month | 2 month | 3 month | 4 month |
|---|---|---|---|---|
| Choosing a travel agency name | + | |||
| Business registration | + | |||
| Search for premises and its arrangement | + | + | ||
| Search for operators | + | |||
| Website creation | + | |||
| Recruitment | + | |||
| Advertising | + | |||
| Starting a business | + |
With well-coordinated and properly organized work, you can open a travel agency in 3-4 months.
Step 1. Choosing a name for the travel agency and registering the business
So, you have analyzed the market, assessed your capabilities and are sure that this business is for you. Now we need to start taking concrete actions. And the first step is for your travel agency. It should be simple, but memorable, and also evoke associations with relaxation.
You can come up with a sonorous name yourself, or you can use the services of specialists.
After this, you can begin registration. You can open a travel agency as an individual entrepreneur or a legal entity. It all depends on your ambitions, so if your plans include expanding your business and creating an entire network, or you want to start a business with a partner, then choose LLC.
When submitting an application for registration, do not forget to indicate the OKVED code. But remember that the classification is constantly changing. As of 2017, for the tourism business it looks like this:
As for the taxation system, according to the law “On the Fundamentals of Tourism Activities in the Russian Federation” it is allowed to use the simplified tax system: “Income” 6% or “Income-Expenses” 6-15%.
Step 2. Finding and arranging premises for a travel agency
A well-chosen location is the key point in how to open a travel agency. If you are planning to start your business in a small city, then do it only in the center.
In a big city, the choice of premises is more extensive:
- crowded places;
- residential areas where competitors are not yet operating.
The room itself should not be large, 25-35 sq.m. is enough. But at the same time, it must be carefully equipped with furniture, office equipment, and decorative items.
Approximate costs for repairs and arrangement of the premises will look like this:
| Name | Quantity, pcs. | Price, rub. | Total cost, rub. |
|---|---|---|---|
| Total: | - | - | 147,000 rub. |
| Worker table | 2 | 4 000 | 8 000 |
| Chairs | 4 | 1 000 | 1 000 |
| Sofa for clients | 1 | 10 000 | 10 000 |
| Rack | 1 | 10 000 | 10 000 |
| Laptops | 2 | 30 000 | 60 000 |
| MFP | 1 | 15 000 | 15 000 |
| Electric kettle | 1 | 1 000 | 1 000 |
| Modem | 1 | 2 000 | 2 000 |
| Telephone line | 2 | 15 000 | 30 000 |
| Internet | 1 | 3 000 | 3 000 |
| Decor items | 1 | 2 000 | 2 000 |
| Other expenses | - | - | 5 000 |
Step 3. Search for tour operators for cooperation
The next step in how to open a travel agency is to search for operators. This step must be approached with all responsibility, since if any inconsistencies arise, the client will remain dissatisfied with your work.
So, when choosing operators, pay attention to the following factors:
- time spent on the market;
- recognition;
- commission size;
- terms of cooperation.
The most popular tour operators in Russia:
Step 4. Recruiting staff to open a travel agency
The success of a business depends on the quality of staff work. And to begin with, you can hire only two sales managers, who will receive a salary and a percentage of the number of transactions completed.
The responsibilities of these specialists should include:
- selection and consulting of clients;
- monitoring attractive tours and their prices;
- concluding deals with tourists;
- booking tours and their registration with a tour operator;
- keeping up with new developments in the tourism industry.
If you decide to open a travel agency, then at the beginning, take the reins into your own hands. At the beginning of work, this will be correct and appropriate, since you will be able to fully control the process and instantly identify errors in the work.
Positions such as accountant, system administrator, and cleaner may not be on permanent staff. For this you can.
Step 5. Promotion and advertising for opening a travel agency
You can’t just open a travel agency and wait for clients...
No one will know about your services unless you introduce yourself. And you need to engage in active promotion on an ongoing basis, especially if you want to attract tourists not only during the summer and New Year seasons.
You can use advertising tools such as:
- sign at the entrance;
- handing out leaflets on the street;
- advertising in local publications;
- radio advertising;
- advertising on the city’s social networks and on the Internet.
How much does it cost to open a travel agency?
And now we have come to the culmination of the answer to the question of how to open a travel agency - the financial component.
So, capital investments will consist of the following expense items:
| Expense item | Amount, rub. |
|---|---|
| Total: | 425,000 rub. |
| Business registration | 25 000 |
| Payment for the first month of rent | 20 000 |
| Indoor renovation | 50 000 |
| Room equipment | 147 000 |
| Website development | 30 000 |
| Payroll for the first month of work | 40 000 |
| Outsourcing | 40 000 |
| Advertising expenses | 60 000 |
| Other expenses | 13 000 |
But opening a travel agency is not all. You need to constantly invest money in it.
Therefore, the approximate monthly costs of opening a travel agency will look like this:
Calculation of business profitability and payback period for investments in a travel agency
Having in hand the approximate costs of opening a travel agency and maintaining it, you can predict the level of profitability of the business.
Successful agencies with two managers can conclude up to 300 transactions per month. But most often such indicators are typical for a business that is already established in the market.
We will imagine that the average cost of one sold tour is 28,000 rubles (we take the current dollar exchange rate into account). The commission on the transaction is 10%. And in order for income to exceed expenses, you need to make at least 70 transactions per month (2-3 transactions per day):
70 * 28,000 * 10% = 196,000 rub. (with expenses of 175,000 rubles)
And with this progress, the profit will be pitiful:
196,000 - 175,000 = 21,000 rubles.
Profit after tax:
21,000 - 3,150 = 17,850 rubles.
But let’s assume that such indicators will only be in the first 3-4 months while you are making yourself known. And soon you will bring them to 120-140 transactions per month.
Then your projected income with the same expenses will be:
130 * 28,000 * 10% = 364,000 rub.
With such work, the profit will be: RUB 160,650
Based on such financial calculations, it can be assumed that investments in starting a business will pay off in 8-10 months.
The main emphasis is how to open a travel agency, you need to do advertising and, of course, cooperate only with trusted operators. Also, do not discount the motivation of specialists. Create rewards for a job well done. The simplest thing is to pay a percentage of tour sales.
How to open a travel agency from scratch?
From idea to first profit - in one video:
The tourism business itself is constantly evolving, so be sure to follow the latest developments in this area and fully devote yourself to the business, and then success will not be long in coming.
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People in the CIS countries, especially in Russia, Ukraine, and Belarus, love to fly abroad, travel around countries and relax, and you can make money on this by opening your own travel agency. But, if you are not a successful entrepreneur, how to open a travel agency from scratch? Step-by-step instructions with recommendations from established businessmen, clear advice and a financial plan in our article.
- First steps - choosing a concept
- First pitfalls
- Registration
- We prepare documentation
- We are looking for suitable premises
- We select a pleasant interior
- We select personnel
- We are looking for potential clients
- What are the expenses and income?
First steps - choosing a concept
You can find four options on the market for a long time:
- A private travel agency requires renting an office, hiring staff and concluding contracts with other companies, but you don’t have to depend on other people. This option is more suitable for those familiar not only with business, but also with the work of a tour operator.
- A home travel agency is the easiest way for a newbie in business to join this environment. You won’t need to rent an office and hire other people, but don’t expect much profit either. In this case, only a person with his own client base and skills in the marketing environment can burn out. Get ready that only the middle class of people will come to you.
- An online travel agency is a format of online shopping that is extremely popular with people, which can allow them to travel to different cities and countries, so the travel agency must not go under. The main thing is that the company’s website contains complete information about the company itself, about tours and offers, and is also really convenient for the average ordinary visitor. Include the ability to communicate with the operator, select changes to the trip and pay through online wallets for the convenience of the buyer.
- Franchising is the best format for a first-time entrepreneur, because a beginner is not yet ready to solve some problems on his own. The advantages of this option are that your new agency is opened under the leadership of a well-known network like “World of Discovery”; you do not remain without the attention and trust of potential buyers. You will also receive some equipment, free business training, a marketing campaign, and those necessary connections at the very beginning.
First pitfalls
The least popular period for tourism is the off-season period - several months winter-summer + several months autumn-winter. Of course, some bursts of activity are guaranteed, because someone has holidays, vacations or personal circumstances, but such periods must be taken care of in advance.
In the first year, it is important to intensively prepare to expand the customer base through discounts for the May holidays, unusual ideas for summer vacations and promotions for trips during non-vacation months.
Take care of planning your expenses in unprofitable months, and, most importantly, you should open a travel agency in early spring, so that you have time to increase your client base before the fall. During the “dead” seasons, your travel agency should offer the sale of air tickets, the services of a lawyer for obtaining a visa, as well as special domestic tours to the cities of the country.
Download a sample travel agency business plan as a template for your own.
Registration
There are two regulatory forms; you should choose based on your desires and aspirations, as well as initial capabilities.
- The first option is an LLC (legal entity). Registration of a legal entity requires a large financial investment, but makes it possible to open a whole network of travel agencies.
- The second option is an individual entrepreneur (individual). A beginner should start with this form, because the investment is quite small, and it’s easier for many to collect the documentation. True, situations arise when tour operators require mandatory registration of an LLC, but do not work with individual entrepreneurs.
We prepare documentation
Step by step instructions:
- Start by choosing the name of the travel agency. Think of something sonorous, memorable, appropriate in meaning, but quite serious. For example, “World of Discovery” is suitable.
- Choose a room. This is important for determining the company's registered address.
- It is important to choose the right type of activity in a travel agency according to the classifier.
- Pay the state fee.
- Notarize the signature of the application for company registration.
For a legal entity, it is also necessary to perform two more actions - to determine the authorized capital in the amount of at least 10 thousand rubles, and also for each of several founders to create a model of its share with its nominal value.
We are looking for suitable premises
You will need a small area located in an area with the greatest traffic of potential buyers. This is why travel agencies like to open in business centers.
Be guided by the name, because, for example, “Business Ocean” clearly says that there are many entrepreneurs and office workers in the building, and everyone has a vacation. Undoubtedly, it is important that the premises are located in the city center, even if these are small regional cities like Omsk or Samara.
We select a pleasant interior
Design a decent and comfortable client corner, where there will be a coffee table and a comfortable small sofa for several people. If you want your clients not to get bored, organize a small number of travel-themed magazines, preferably with a lot of photographs. The tourist model should be read throughout the office design - paintings, straw hats, photo wallpapers and other things reminiscent of tourism.
Don’t be afraid to express your own “wants” and creativity in design. Be original! Employees also need their own area. To ensure efficient work processes, organize desks, comfortable computer chairs and shelving with everything you need to work. You will also need space for a printer, copier and other important devices.
We select personnel
A travel agency as a business does not tolerate fraternization and forgiveness of mistakes, so never agree to hire relatives and friends.
Only hire those who show professionalism and the ability to accept criticism. It is very profitable to hire people with experience in tourism, but some personnel can show excellent work even without experience. Browse job candidates in the following categories:
- way and manner of speaking:
- competent construction of sentences and pleasant presentation of thoughts;
- the ability to identify what needs to be put in the foreground;
- ability to persevere, focus on a specific task;
- how seriously a person takes the tourism industry;
- the ability to present your personality to another person;
- relaxed, worry-free communication with strangers;
- what things interest him, breadth of outlook;
- proposed ways to resolve various conflict situations.
Therefore, the candidate must become an example of a person who is able to interest others in a purchase, who is able to work with people with money.
Are you planning a small project? Two or three customer service employees and a cleaner are enough for stable office operation. Later, it is worth hiring an accountant and programmer, with the expectation of expanding the business. As a salary for managers, offer a minimum payment, supplemented by a percentage of revenue, in order to motivate them to work more efficiently.
Choosing a reliable tour operator
In order not to make a mistake and reduce risks, enter into contracts with ten different operators at once, half of which must specialize in a particular area.
Choose a direction that is calculated by other companies as the most popular in your city or entire region, but do not forget about unusual options.
At first, you will not begin to receive much profit, but after the first tourists the percentage will begin to increase. If you start showing an excellent example of a business project with successful sales, more offers will come from more successful operators.
There is also a ready-made example of a search database for online tours and operators, which can slightly simplify the work of your travel company. The most popular database is the site tourindex.ru, where access to the database is obtained for a significant fee. For a year of service you will have to pay 26 thousand rubles, but whether it is profitable to remain without such reliable support is up to you to decide.
We are looking for potential clients
In order not to be left without clients, open your own company website so that its design and content are handled by a professional web designer and system administrator rolled into one.
You can still use other advertising methods:
- Making announcements in the media, including radio.
- Advertising the company on billboards and banners.
- By broadcasting advertising on TV in ad blocks.
- Hiring people to hand out leaflets.
- Motivating clients to write reviews about the agency to launch word of mouth.
Sometimes clients come to the office from an unknown source, so it is important to constantly adjust even a ready-made business plan, as well as keep a special journal about the channels of client receipt in electronic form. This will help you do regular analytics of statistics on attracting people to a travel agency. Don't forget about discounts, promotions and bonuses that perfectly motivate people not only to make purchases, but also to attract their friends and family.
Video: how to open a travel agency?
What are the expenses and income?
The profitability indicator is individual and depends on a variety of factors.
| Expense line | Amount of costs, thousand rubles. | |
| 1 | Initial rent for two months | 100 |
| 2 | Repair | 80 |
| 3 | Furniture | 50 |
| 4 | Public utilities | 10 |
| 5 | Paperwork | 5 |
| 6 | Manager's salary | 15 x 2 |
| 7 | Cleaner's salary | 10 |
| 8 | Marketing campaign | 15 |
| 9 | Taxes | 30 |
| 10 | Unforeseen expenses | 10 |
| Total: | 340 | |
The opening of a travel agency itself will cost about 300 thousand rubles or more, but you will also have to pay monthly rent for premises, taxes, employee wages, utilities, and much more.
The average payback is almost one and a half, or even two years. In the first year, it is important for a travel agency to simply survive and stay afloat in a sea of competition. This can be achieved through pleasant service, quality services, good service and competent advertising. Only after achieving a sales level of 500 trips annually, the project becomes an established business.
If you find an error, please highlight a piece of text and click Ctrl+Enter.
*Calculations use average data for Russia
A fragment of the book by Yulia and Georgy Mokhov “Travel Agency: where to start, how to succeed” by the publishing house “Peter. Published with permission from the publisher
Do I have enough money to open a travel agency? Should I risk my last savings or not? How long will it take for investments in the tourism business to pay off? How much will I earn? Create your own travel agency or buy a ready-made one? Or join a franchise network? Is it difficult to make a business plan for a travel agency? What are the requirements for a travel agency office? How many employees will you have to hire? Where to look for footage? Which tour operators to work with? Which countries do you sell tours to? Limit yourself to a narrow specialization or sell everything? Should we open air and railway ticket offices immediately or later? How to attract clients? How much to spend on advertising? Do tourists have many complaints? And yet...
SHOULD I OPEN A TRAVEL AGENCY OR NOT?!
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We will try to dispel all your fears and support your desire to open a travel agency. But we guarantee: everything that is written here is a real reflection of the state of affairs in the tourism business, without exaggeration or omission.
Development of a business plan for a travel company.
We offer for your reference a diagram that reflects the main parameters and cost items that can be used when drawing up a business plan for a travel company (agency).
1. Travel agency concept
Type of activity:
- travel agent;
- tour operator;
- mixed activity.
- sale of air and railway tickets;
- transfer services, ordering limousines;
- visa processing;
- insurance;
- preparation of documents for registration of foreign passports;
- services of an individual guide and accompanying person;
- translation services;
- sale of guidebooks;
- sale of related travel products;
- sale of gift certificates;
- booking and ordering tables in restaurants, tickets for events;
- rental of tourist equipment;
- car rental.
- by type of tourist destination;
- according to the cost of tours;
- by country;
- by type of tourism.
2. Organizational plan
Travel agency office location:
- center;
- outskirts;
- distance from the metro.
- rent;
- own premises;
- other.
- showcase office on the first line;
- in the business center;
- in the administrative office building;
- in a shopping center;
- on the first floor of a residential building.
- two jobs, three five jobs;
- one-room, two-room, three-room, more than three rooms;
- free layout (number of meters).
tables with reception places, chairs for employees, chairs for visitors, bedside tables with keys, rack for catalogues, wardrobe, hangers, hanger rack,
a board for information and special offers, a sofa for visitors, a coffee table, a safe, blinds, a mirror, dishes (for employees, for receiving visitors), frames for photographs and permits, plants.
Office equipment (cost calculation):
computers, telephones, fax, printers (minimum 2 pieces), scanner, copier, TV, CD and DVD player for showing films about countries and resorts, air conditioning, water cooler, first aid kit, clock, stationery, wall map of the world or globe.
Office design project:
- zoning of space;
- design of the premises according to the concept of the travel company;
- floor plan.
3. Competitive environment
Competitors in selected tourist destinations.
Competitors within the radius:
- buildings;
- district;
- cities;
- countries (if necessary).
4. Production plan
Staff:
- staffing schedule;
- wage formation policy;
- personnel training.
Tour sales technology:
- search and booking of tours;
- scheme of interaction with partners;
- processing payment for tours;
- document flow;
- delivery and issuance of documents.
- by season;
- by directions;
- by country;
- by price;
- by target audience.
Travel agency pricing policy.
Features of the tours sold.
Corporate identity development:
Ready ideas for your business
- contractor;
- list of required items;
- concept and functions of the site;
- contractor;
- cost and timing of work.
- signboard;
- pillar;
- signs;
- a sign with operating hours and company details.
- booklet;
- business cards;
- letterheads.
- budget size for 3 months, 6 months, 12 months;
- advertising media.
6. Legal aspects of opening a travel company
Legal form of a legal entity.
Tax system.
Drawing up a lease agreement.
Required permits depending on the type of tourism activity.
Trademark registration.
Purchase and registration of cash register equipment (if necessary).
Ordering strict reporting forms “Tourist voucher”.
Maintaining accounting records (independently, with the assistance of an accountant, consulting company).
Legal support of activities
7. Financial plan
Sources of funds.
Amount and duration of investment.
Initial expenses plan.
Fixed expenses plan.
Income plan.
Payback plan.
8. Conclusion
Long-term development plan.
9.Applications
Approximate costs for creating a travel agency in Moscow,
one-time:
Registration of a legal entity and preparation of necessary permits for travel agency activities: 20,000–25,000
Furniture and office preparation for sales: 50,000–100,000
Office equipment and communications 100,000–150,000
Development of corporate identity 15,000–25,000
Website development and registration 20,000–45,000
Trademark registration 50,000-100,000
Employee training 5,000–30,000
Additional possible costs
Ready ideas for your business
- Purchase of a ready-made tourism business, payment of legal services to support the transaction
- Payment for premises selection services
- Payment for recruitment services
- Payment for connection services
- Internet and additional telephone lines
- Payment for services of a consulting company
The cost of tours even in the same hotel category is different, and the choice of tourists does not always fall on the 3* level of accommodation. Therefore, in order to make an income plan, it is necessary to analyze season prices for selected destinations with data from 3*, 4*, 5* hotels and compare them with the expected amount of income
Approximate plan of monthly expenses of a travel company in Moscow (rub.)
Office and infrastructure
Wages
Rent of premises 25 m2 - 50,000
Communication services 3000
Internet 5000
Water (cooler) 500
Stationery 2500
Other administrative expenses 6000 Staff salaries
Advertising budget
- Director 35,000 +%
- Manager 19,000 +%
- Manager 16,000 +%
- Secretary-manager 12,000 +%
- Courier 16,000
- Accountant (outsourcing) 10,000
- Cleaning lady 3000
Unforeseen expenses RUB 10,000.
- Legal subscription service RUB 7,000. months
- Payment for the online booking and tour search system is 1200 rubles/month.
- Refilling cartridges 400 rub./month.
Total 241,500 rub. + percentage of salary
Selecting the status of a travel company. Tour operator or travel agent?
After the abolition of licensing for tour operator and travel agency activities in 2007, a mandatory state procedure was established only for tour operator activities. Any legal entity or individual entrepreneur can engage in travel agency activities. The only thing that determines the status of a travel agent today is the existence of an agreement with the tour operator, according to which the travel agent, on behalf of and at the expense of the tour operator, sells the tourism product generated by the tour operator. At the same time, the travel agent is obliged to comply with a number of requirements established by law, which we will discuss below.
But first of all, it is necessary to find out why it is so important to understand the difference between travel agency activities and tour operators and take the necessary legal actions in a timely manner. The fact is that the law establishes a mandatory requirement - all tour operators registered on the territory of the Russian Federation are required to have financial support. Financial security is a guarantee of the tour operator in case of non-fulfillment or improper fulfillment of the contract for the sale of a tour product, insurance of its civil liability to consumer tourists.
From financial support, injured tourists are compensated for the actual damage they suffered, for example, the cost of the tour if it did not take place, or the difference in cost if the vacation time was shortened. Financial security is provided by an insurance company or banker. The law establishes the minimum amount for which an insurance contract or a bank guarantee contract must be concluded; today it is 10,000,000 rubles. for international tourism (entry and exit) and 500,000 rubles. for domestic tourism.
The cost of servicing financial security averages 1–1.5% per year of the amount of security.
Ready ideas for your business
For example, from the minimum amount of financial support for international tourism of 10,000,000 rubles. the cost of insurance compensation will be 100,000–150,000 rubles. This is the amount that will need to be paid annually to the insurance company for the tour operator’s civil liability insurance contract.
The contractual scheme of a travel agent’s work when selling tours looks something like this:
- the tour operator enters into an agency (commission) agreement with the travel agent, according to which the agent is instructed to implement (sell) tours generated by the tour operator for a fee;
- a travel agent attracts a client (tourist) and enters into an agreement with him on the sale of a tourist product, receives the documents necessary to register the tour;
- the travel agent sends a request to the tour operator to book specific travel services for the client (tourist), indicating the dates, number and details of tourists, hotel, level of transportation, excursions and other components of the tour;
- the tour operator confirms the travel agent’s request and issues an invoice for payment;
- the travel agent provides the tour operator with the documents (or information) necessary to process the tour (for example, for a visa);
- the travel agent accepts the final payment from the tourist (if paying in cash, issues a cash receipt or a strict reporting form);
- the travel agent makes payment to the tour operator minus the remuneration due to him (by bank transfer or in cash to the tour operator's cash desk);
- the tour operator issues the travel agent with tour documents necessary for the tourist to travel;
- the travel agent issues the tourist documents for the tour and all the necessary information to the tourist;
- the travel agent reports to the tour operator - sends the agent’s report (act) indicating the amount of the tour sale and the amount of remuneration;
- the tour operator signs the agent's report and issues an invoice for the services provided under the agency agreement.
But it should be borne in mind that the presented scheme reflects only the ideal version of document flow.
In practice, a travel agent may face various surprises; firstly, the tour operator may refuse to enter into an agency agreement with you and will offer a purchase and sale agreement, as a result your legal status will change, it will be necessary to adapt accounting and document flow;
secondly, when making a payment under a tour operator agreement, you suddenly discover that the invoice has been issued for payment to
another company or, making payment through the tour operator’s cash desk, you will be given a cash receipt order for a physical
a person with a “paid” stamp without the organization’s seal.
Travel company staff
The optimal staff for a small travel company looks something like this:
- ¦ leader;
- ¦ manager1;
- ¦ manager2;
- ¦ secretary with an expanded range of responsibilities;
- ¦ courier;
- ¦ accountant and cashier;
- ¦ cleaning lady.
Director.
The head of a travel company is a key figure and resolves a large number of issues, both economic and strategic, but in addition to him, it is advisable to have at least two sales managers.
The manager can also be the chief accountant, cashier, sign documents and register the receipt of funds.
If the head of a travel agency is a hired employee, he must have at least two years of work experience; this is the minimum time during which a specialist can go through all the “seasons” of a travel agency’s work - high, low, “dead” - and learn how to manage a company. If the head - founder of a travel agency has no experience in tourism, this is not a tragedy. It is necessary to invite managers with work experience and, together with them, develop the strategy, assortment, and advertising policy of the company.
Travel company manager.
His responsibilities include: negotiating with clients and partners by phone and in the office, arranging tours with tourists, booking tours and processing documents with tour operators, monitoring the fulfillment of orders, price changes, requirements for documents provided, terms of cooperation, special offers.
A universal manager must maintain and improve his qualifications (master classes, seminars, advertising tours), work at exhibitions and workshops. Requirements for managers: higher education, experience in tourism, absence of bad habits, presentable appearance, competent Russian speech, communication skills , initiative, ability to resolve conflict situations, responsibility.
A manager without work experience should at least strive to work in tourism and have a specialized secondary or higher (incomplete higher) education, since this significantly affects the general level of culture. On
teaching someone who strives for knowledge is a rewarding task, but find out the long-term plans of this candidate so that
the invested effort and money were not wasted - perhaps he will use the knowledge gained in another travel agency.
Travel agency secretary
receives incoming calls, distributes them according to the specialization of managers, answers questions of a general nature (“How can I get to you?”, “What time do you work until?”), ensures timely ordering of the necessary office supplies, household goods, and monitors the courier’s work schedule , carries out instructions from the manager, receives visitors and guests of the office. You must understand that sometimes it is very difficult to do without the help of a secretary, especially in the high season - in the summer, when the phone is ringing at the same time and the client is sitting in the chair.
Secretaries are also tasked with filling out questionnaires, accounting and registering incoming and outgoing mail, and responding to corporate emails, ICQ, and Skype.
As a rule, a secretary is hired after several months of starting a travel company, when the phone is constantly ringing and clients demanding attention come to the office.
Courier
A very important and responsible position. With the strength (legs) of this person, money, passports, documents must get to the tour operator. Therefore, when choosing a candidate for this position, follow a simple rule: the person must be checked in all possible ways - call the previous place of work, confirm the correspondence of the place of registration and place of residence, call the home phone and communicate with relatives, ask for recommendations. These measures are not unnecessary. The problems that may arise due to the actions of the courier are, without exaggeration, catastrophic - loss of foreign passports and documents, theft of funds that the courier transports daily. The best option is a relative or acquaintance, but, unfortunately, such candidates are not always found.
Accountant-cashier,
certainly a necessary specialist, but the cost of his services is too high for a small travel agency (in Moscow from 30,000 rubles). Therefore, most travel agencies use the services of law firms or an external accountant. Such a personnel solution allows you to reduce accounting costs by at least three times.
Remuneration and bonus schemes in the tourism business
In the tourism business there is a general trend towards increasing wages. This is due to the existing personnel “hunger”. Specialists with experience move to another company, where they offer a slightly higher salary for the same full-time position, and this can happen every six months.
Options for calculating salaries for a tourism manager
The tour is considered sold when 100% payment is made.
1. Interest-free system: salary 22,000–30,000 rub.
2. Salary + interest:
Salary 10,000–15,000 rub. + 10% of tours sold by the manager.
Salary 15,000 + 10% after the implementation of tours for more than 150,000 rubles.
Salary 15,000 + 10% of revenue from sold tours, divided among all managers.
Salary 18,000–20,000 rub. + 5% of tours sold by the manager.
Salary 18,000–20,000 rub. + 10% of all tours sold, divided between all managers.
3. Planned system: fixed salary is paid when the plan is fulfilled; for example, from 50,000 rub. (this refers to the company's income, not the total cost of the tours). If the plan is exceeded by more than 50,000 rubles. + 10%, more than 100,000 rub. + 15%, over 250,000 + 20%.
During the low season (January, February, May, June) the plan is 50%. In this case, the previous fixed salary is paid.
If the plan is not met, with the exception of the low season, there is a system of fines.
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