Start up travel agency from home

[emirates777]

I have been thinking of starting up a part-time travel business from home. Part-time in the sense it will be mainly weekend work and revolves around my normal full time job (accountant, mon-fri). Don't plan on hiring anyone and it will be mainly flight bookings (simple), it will just be myself. I have a interest in travel and have been posting flight deals that I find on my facebook page for friends/family only for some time now.

Just seeing if there has been any talk about this here in the forum and can it be done? From my preliminary research I need to complete a certificate III in Travel (which can be done online thankfully), set up a Business (ABN etc), get AFTA accredited, sign up with a ticket consolidator/or become IATA accredited yourself.
Sounds straightfwd.

Could there be a potential point of difference if one was iATA accredited and deal directly with the airline to source airline tickets? Thereby is it possible to undercut established agencies like Flight Centre and even compete or price match with the online ones too. I know my friends would prefer to deal with me than go with places such as expedia, cheaptickets etc if I can offer the same prices,

Question is, is it worth it? I see this as being a secondary income source.

 

[MEL_Traveller]

I'm not sure how many of the qualifications stated on the AFTA page are actually required to be a travel agent. I thought the law had changed recently and just about anyone could set up shop. Sure the AFTA is a 'nice to have', but I don't know how much is mandatory.

You might find it easier to set yourself up in partnership with an established (non-chain) agency. This way the payments are made direct to the agency and they do the booking for you in their systems. Your job is to find the right fare and routing, liaise with your clients, quote prices, do all the leg-work and field calls.

You could split the commission 50/50 with the agency. You won't make as much money, but it'll sure be a whole lot easier!

I understand agencies make somewhere in the region of 5% commission these days. On a $1000 fare to Europe, you'd need to sell a lot of those to make it worthwhile to do your qualifications and get accredited. Might be worthwhile if you focus on premium fares.

Agencies make a lot of money on tours, hotels and travel insurance. Travel insurance can be 20-30% (or more) commission.

 

[williamsf1]

Are you looking to do it as a hobby or a genuine business to make money?
If as a business – it is not something that you can really do part time, and the margins you make on tickets is not worth the stress or effort…. Booking travel for friends and family is one of the worst things you can do as a travel agent ,

 

[emirates777]

Are you looking to do it as a hobby or a genuine business to make money?
If as a business – it is not something that you can really do part time, and the margins you make on tickets is not worth the stress or effort…. Booking travel for friends and family is one of the worst things you can do as a travel agent ,

As a hobby. I dont expect to be doing many bookings. But say if I can do 5-10 bookings per week; I would be happy with that.

Is it possible to get access to a ticketing system and issue tickets and bypass a agency? Just means more commission.

 

[Deleted member 29185]

A friend of my +1 and I did as you suggest, in fact probably more so. We asked her to price some tix for us and to be brutally honest,they were about double what we could get as knowledgeable, but novice plebs. The unsaid animosity that followed our polite rejection was noticeable, as a lot of work goes into travel arrangement, even when it fails to produce a ticket. Luckily our long term friendship prevailed, but I'd caution you to think long and hard over what you want versus what you may lose.

 

[Cruiser Elite]

Is it worth it? IMHO it has disaster written all over it. But the decision is yours emirates so whichever way you decide good luck and I hope you brain it if you decide to proceed.

 

[RooFlyer]

I'd sorta agree with CE, sorry.

Are you prepared to sort out the messes when they occur? Will you do that 24/7, as required, or just during normal office hours? What takes priority - your accounting clients who you've promised their work today, or that couple stuck without a cruise and needing help, right now?

How experienced are yourself on travel and flights, round the world? I suggest "flight bookings" will not be simple - the simple ones people do themselves. You'd be expected to research, advise, enact and follow up on the more difficult ones.

You'd need to be prepared to do the research, do pricing, scheduling etc and then see the enquirer never again ... How many of those are you factoring in?

I doubt you could undercut Flight Centre, as they buy in bulk and pass (part of) the savings on.

Maybe your best strategy would be to get a contract with one of the shop front retail TAs (NOT FC or the like) as an overflow/emergency/holiday TA (once qualified) and see how that goes - if you could get a gig like that, you'd learn a lot, and would have back-up.

 

[williamsf1]

As a hobby. I dont expect to be doing many bookings. But say if I can do 5-10 bookings per week; I would be happy with that.

Is it possible to get access to a ticketing system and issue tickets and bypass a agency? Just means more commission.

With that amount of bookings no airline would bother with you- it’s all about volume and $$. Commissions are between 0 – 5% and are only higher where you can provide significant volume.

To make it at all possible you would need GDS access like Amadeus – they offer a web based service, but once again your volume they would not bother with you… then sales agreements with airlines + IATA or TIDS approval (and pay significant bonds etc)

I would strongly suggest keeping it as a dream …..

 

[Deleted member 29185]

Maybe your best strategy would be to get a contract with one of the shop front retail TAs (NOT FC or the like) as an overflow/emergency/holiday TA (once qualified) and see how that goes

This is excellent advice. My previously mentioned friend now does this and it works quite well for her as a supplementary income to the household. She acts as backup for others on leave (she took two phone calls during a "new year" lunch just a couple days ago) and it has given her not just confidence, but wonderful support.

 

[puppysparkes]

If anything I'd suggest working weekends at an established agency to satisfy your need for a hobby. I suspect you'll find a new hobby pretty quickly.

 

[emirates777]

Brutal but honest. Thanks for the feedback. Might put this one on the backburner for a bit.

 

[Flyer 777]

I would suggest you join with Go Tours Travel, they are based on the Gold Coast and are a family owned business for over 30yrs. Decent commission split, low monthly fee for system access and are a Helloworld member. If it does not work out it wont be cost you much.

 

[AviationNZ]

Another suggestion would be looking at joining specific home based agency networks. A couple that come to mind are TravelManagers, MTA and Travel Counsellors. However, they do interview people to ensure you'll fit with their business culture and are bringing something to the table, so part time weekend work might not tick the right boxes. Can't hurt asking tho.

 

[browski]

The legacy Travel Agent model is dead. Retail TA's have a diminishing market and have moved a large volume of their income to other areas such as package tours, cruises and hotel bookings.

Revenue from flights, especially Economy Class flights are not worth anyone's time (even international flights)
Business Class flights are desirable but most companies are already tied up with a corporate TA. This leaves Business Class leisure travel and you will find that this group are either retirees (rich, but time-wasters) or wealthier 40-60 year old travellers who may know more than you do.

You actually don't need any training or accreditation to setup as a TA. You just need access to a GDS and an arrangement with a Ticket consolidator. To establish an arrangement with a travel consolidator you will need to pony up significant funds. The reason that no qualification or accreditation is required to become a TA is because the airlines themselves became travel agents and sold tickets in markets that they are not based in. Since they could not be regulated, the government decided no-one needed to be regulated.

I would give the idea a wide berth. There are avenues to be disruptive in this space, but the airlines are already being disruptive themselves. You need to find a different service to deliver or a different way to deliver an existing service - some niche which is not currently being met. Of course that is easier said than done.

 

[Anna]

I know someone who has done this. I don't know what effect it may have had on her personal airfares, but she regularly gets upgraded to suites at hotels.

Have no idea how much work she actually does as an agent, or whether it's really all about getting great hotel rooms and then in return posting a favourable review on her website (which contains suspiciously little info about making actual travel arrangements other than how to contact her).