If you are an experienced traveler and have a background in sales and/or travel booking and if you want to start a business from home, try opening your own travel agency. While the travel industry is a strong sector of the economy, booking travel is an activity that many individuals often engage in. In managing a travel agency from home, you will come across a series of challenges and things to deal with. Therefore, before you start, make sure this business is the right activity for you to do.
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Part 1 of 3: Starting a Business
Step 1. Check local laws and regulations
Before you start a travel agency from home, check all the laws and regulations related to home businesses and travel bookings. Most likely, you will have to file legal documents in order to start a home-based business and be recognized by the local government.
Check your business zoning laws, or your local Spatial Detail Plan (RDTR) regulations
Step 2. Develop a business plan
Not only does it contain a detailed plan for management, a business plan will also help you to get funds from investors if you need additional capital to start a business. If you want financial support, then your business plan will have to include a lot of information about financial plans and projections. For tips and how to prepare a business plan, read How to Write a Business Plan (in English).
Don't forget to include your certifications, diplomas, abilities, qualifications, and other information that you would normally include on your resume. In order to obtain funding assistance (if needed), you will have to show potential investors that you have the ability to take responsibility for your business
Step 3. Identify the target market
Do some online research to determine and plan to attract specific demographic categories that will be interested in your services. You should use the target consumers you have identified as a tool to find out how to market your business. For example, if you are targeting retired people, you should not only promote through social networks.
- Analyze demographic information in your area. Usually, this data can be found on the official city or local government office or website.
- Look up travel statistics for your area of specialization and find out how many people in your area match the target demographic of your business.
- Use this data to calculate the running of the business during the period and the amount of profit that can be obtained.
Step 4. Anticipate initial needs
Make a detailed list of the things you will need (equipment, supplies, staff, etc.) to start a business. Include the reasons that justify the need for each item on the list and the estimated costs. This information should also be included in your business plan.
- Since your business will be managed from home, most of the items needed may be readily available (eg office supplies). However, you should keep your personal belongings separate from business supplies for tax reasons.
- Keep invoices for all the items you will use for your business so you can show them for tax deductions.
Step 5. Calculate the projected cash flow
Think of all the financial obligations that must be met, such as insurance, business certification, and taxes. Then, also calculate the projected income based on the latest tourism market data and the presence of local target demographics. Apart from being an important component in your business plan, this information will also help you determine the viability of your travel agent.
- Make sure you do thorough research; do not overestimate income.
- Don't forget to factor in non-recurring and/or emergency expenses. For example, a number of expenses that you made in the first month of running the business will not be repeated again.
Step 6. Open two bank accounts
One account will be used for business and functions to manage expenses and income. The other account serves to receive payment for your client's orders which will be allocated, specifically, to cover expenses related to travel management.
- Choose a bank that has special offers for small businesses (such as interest or discounted annual fees).
- To make tracking and sending funds easier (if needed), create both accounts at the same bank.
- For tax and legal reasons, do not combine your business account with a personal account.
Step 7. Choose a travel specialization
Consider whether you are going to open a general or specialized travel booking agency. You can run your business by directing clients to bigger companies (and get paid for it) or you can focus on booking and selling specialized travel packages. Now, many options are available and you can choose from.
- As a home travel agent, you can focus on cruises, vacation homes, luxury tours, or standard tours with a specialization in booking flights and lodging.
- Consider specializing in a specific geographic area. For example, you may be able to provide a unique service or offer that you won't find anywhere else by doing repeat business with a small number of tourist attractions.
- Use your personal experience or expertise in choosing a specialization. Selections made based on things you know will give good results.
Part 2 of 3: Creating Office Space at Home
Step 1. Check local regulations
In order to receive customers into your home on business, you will have to comply with several health, safety, and building regulations related to your home office. Perhaps, you can't even make an office at home without having a separate entrance for the office and the availability of a certain area of space. Check the regulations in detail on city and local government websites.
- You may also have to comply with local disability laws. If so, then you must ensure that your office is accessible to, for example, customers with wheelchairs.
- Some safety regulations will also be required such as the presence of smoke detectors and/or fire extinguishers in the office space.
Step 2. Determine a specific room to work in
At home, your office should be located in a special area that is used only for business purposes. This act will convey professionalism to customers, who may not want to have your child's toys scattered in front of them. If possible, choose a room in your home that is located near the entrance of the building so customers don't have to pass through other parts of your house to reach it.
- Even if your local laws don't require it, having a separate entrance for your office is a great feature to separate your home life from your office and keep your family private.
- Install a lock on the door that connects the home part to the office part to prevent children, house guests, and other uninvited people from entering your workspace.
Step 3. Buy a table
You will need a desk in your home office space to work and serve customers. In addition to adding to the professional impression, a desk is also a major functional requirement because you will carry out various transactions which include signing documents, giving out flyers, and checking brochures with clients.
- Make sure your desk is big enough to work with and small enough to keep your office space free. A desk that is too big will make your office feel cramped and make customers feel uncomfortable.
- Look for an executive-style flat table with no extras on the top that can be positioned between you and the customer. Your office must look presentable in the eyes of customers.
- While a desk is an essential office equipment, you should still leave room for other items such as cupboards and chairs for customers.
Step 4. Put on some nice decorations
You can put up paintings and displays, but not too many. As a travel agent, you can decorate your office with landscape paintings of places that will be the location of the tourist destinations that you offer.
- Leave room on the wall to post any diplomas or certificates you've received, especially those related to your job as a travel agent. Frame the certificates and then hang them on the wall behind your desk or next to the customer's seat.
- Put some plants in the office to make it feel comfortable and inviting. The presence of plants will add color and freshen the air; however, choose plants that are not too large.
Step 5. Keep the office space clean and orderly
Perhaps the most important thing you can do for your office is maintain a professional image by making sure everything is kept clean and organized. This means that you have to tidy up, sweep, vacuum and take out the trash regularly.
- Prioritize the cleanliness of your office. Most people wouldn't mind watching their house fall apart after being left out for a long time to take care of busy work. However, customers will always expect cleanliness and tidiness from an office, even if the office is in someone's home.
- Customers who find your workspace looking cluttered and disorganized will be hesitant to entrust their travel arrangements to you. Professionalism is very important to run a business.
Part 3 of 3: Maximizing Business and Profit
Step 1. Create a website
This is an important point for running a home travel agency business because the majority of your business (including first contact with clients) will be done via the internet. In addition, having a well-managed website will reflect professionalism and is the best way to get your business discovered by interested potential customers.
You can create a site for free using various online services, including OnlineAgency.com
Step 2. Look for referrals
Contact a large, established travel company to negotiate a package deal that you can offer your clients. Some large companies will allow you to operate privately as a contractor if and only if you comply with the regulations and licenses they provide. In addition, also ask how much referral commission you can get by referring consumers to these companies.
- If you choose to operate under a parent agency, find out about your possibilities of having additional referral relationships with other companies.
- Referrals are a great option because you can offer customers a large number of travel options and give you the opportunity to increase your profits.
- Contact several companies and try to form a network of relationships with all of them. The more companies you can work with, the more business opportunities you can get.
Step 3. Join a professional travel agency organization
The organization can expose you to more consumers and increase your credibility as an agent. You can join the Association of Indonesian Tours and Travel Agencies (ASTINDO), the Association of the Indonesian Tours and Travel Agencies (ASITA), or the International Air Transport Association (IATA). If possible, join all three to give your business a strong boost.
- Usually, professional organizations like the ones mentioned above can give you access to certain things, for example: online seminars, online discussion forums and annual conferences that you can attend to learn about the latest developments in the travel industry.
- Some organizational sites display the names of their members alternately and periodically on the front page, so that (if your name appears) your visibility as an agent will increase.
- Certain clients tend to look for agents who are members of these organizations because of the guarantee of professionalism.
- Make sure your name and contacts can be found on the organization's website database. If your name cannot be found on it, then your membership will not significantly increase your visibility.
- Most professional organizations require you to pay an annual membership fee. Therefore, include these costs in your business plan if you plan to join one of them.
- Find out the requirements needed to register for membership (eg nominations from existing members) and other matters by visiting the organization's website.
Step 4. Consider taking some business courses to learn how to open and manage your travel agency more effectively
Look for these courses at your local university or on the internet. The fees you pay to attend courses related to operating your business are tax deductible.
- You can also find specialized courses related to managing travel agents.
- Even if you have some education or business experience, re-participation in a course can be very helpful, especially in learning about the latest laws and regulations.
Step 5. Do the promotion
Promotion can be done in a variety of ways and should be based, at a minimum, on the target demographic and customer habits. However, most modern marketing is done online; therefore, start your business as a travel agent via the internet-especially since the majority of your business will be conducted online.
- Use social media. Create a profile on LinkedIn, Facebook, Instagram, Twitter, or other social media that is widely used. Post a status periodically containing package and service offers from your business. This will help you in attracting customers.
- Create a YouTube or Vimeo channel. Post videos for resorts or attractions that your customers have visited recently. Also share the video link to your social media accounts.
Step 6. Create a customer incentive program
To get more customers through word of mouth, offer gifts to clients who refer new customers to you. The gift can be a simple coupon to get a discount on the next transaction, to be redeemed at a local shop or restaurant, or any other item that you can choose from.
- If you're not sure what type of incentive will appeal to customers, offer more than one type of reward for successful referrals. You can also conduct surveys of customers to find out the preferences of the majority and use the resulting data to design your incentive program.
- If you can define an incentive system in advance, incorporate it into your business plan.
