Saturday, November 15, 2014

How to Start a Group Travel Business

Leisure and Tourism | Small Business IdeasTourism is travel for recreation, leisure, religious, family or business purposes, usually for a limited duration. Tourism is commonly associated with international travel, but may also refer to travel to another place within the same country. The World Tourism Organization defines tourists as people "traveling to and staying in places outside their usual environment for not more than one consecutive year for leisure, business and other purposes".

Tourism has become a popular global leisure activity. Tourism can be domestic or international, and international tourism has both incoming and outgoing implications on a country's balance of payments. Today, tourism is a major source of income for many countries, and affects the economy of both the source and host countries, in some cases being vital importance.

Travel businesses offer a wide spectrum of services, with the intent of saving their clients time or money. Creating travel itineraries, mediating on behalf of a traveler if plans become disrupted, and serving as a subject matter expert on customs regulations, travel advisories, and exchange rates are just a few examples of the services that travel businesses provide.

Clients of travel businesses typically fall into one of three categories: independent leisure, business, or group travel.

The World Tourism Organization, which tracks travel trends internationally, estimates that by 2020 the number of persons traveling will reach 1.6 billion per year. Though the world's economy has slowed recently, The World Travel & Tourism Council forecasts a revenue growth in the travel industry to be on average 3.6% per year. Individuals seeking to open a group travel business will find that all-inclusive vacations and tours will be the most desired by economically conscious travelers.


Things You'll Need



Instructions:

Step 1

Choose a travel business model. Group travel business can be established in a number of ways. According to Plunkett Research, e-commerce plays an extremely important role in the travel sector, and consumers often seek out information and prices online. This makes a home-based Internet group travel business an excellent model for those who wish to keep operational costs down. Many companies offer online start-up group tour franchises and services.


Step 2

As with any new business venture, first understand the basics of starting a business, and then research the specifics that apply to your industry. To begin, follow these Steps to Starting a Business for more information on financing your business, hiring employees, and complying with tax obligations.


Step 3

You will need to decide how you will provide travel services to your clients. There are three common operation arrangements for travel service business: establishing your own agency, purchasing a travel agency franchise, or working as an independent contractor for another agency.


Step 4

Establish your own agency: If you decide to open your own brick-and-mortar agency, you will need to familiarize yourself with the legal and regulatory issues you'll encounter when selecting a business location, including zoning laws and commercial leases. Visit your state economic development agency to get help locating commercial office space and property. However, today many self-employed agents work from their home. Starting a home-based business still requires planning and attention to regulations, especially zoning ordinances.For resources to help you start, run and manage a home based business, visit Business.go;s Home Based Business Guide.


Step 5

Purchase a franchise: A franchise or business opportunity may sound appealing, especially if you have limited resources or business experience. If you opt to purchase a franchised travel business, you will have to follow the franchiso-s established business processes in exchange for the rights to use a successful business name and identity. Visit Business.go-s Franchise and Business Opportunity Guide for helpful advice on buying and evaluating a franchise and information on how to avoid common scams.


Step 6

Work as an independent contractor: If you work as an independent travel provider, you will likely be commissioned through a host agency. Independent contractors, also known as freelancers or consultants, are business owners, and are not employees of the host agency. Depending on your contract, a host agency may require a percentage of your sales or charge a transaction fee. Some travel providers that work as independent contractors work from the host agenc's office, while others are based out of their home. Read more about how to become an independent contractor at Business.gov.


Step 7

Depending on where your business located, you may need to register in your stat's travel sellers registration program. Not every state regulates travel agencies, but some, like California and Florida, do. Registration requirements vary, but you will likely need to pay a fee and file information about your business, and in some case you may need to acquire bonds or letters of credit. If you are unsure whether you will need to register as a seller of travel, contact your stat's business licensing office. Learn more and discuss seller of travel registration in the Business.gov Community.


Step 8

If your state regulates travel businesses, you may need to prove that you have experience in the industry to become a registered seller of travel. You may need to pass a state exam or show proof of your relevant work history. If your state does not regulate travel businesses, you may not need past experience in this field. However, you may still decide to obtain credentials for a competitive edge. Travel agent and tourism courses and programs are offered through universities, community colleges, and online programs. Additionally, travel and tourism industry associations, such as the American Society of Travel Agents, provide members with various resources and networking opportunities.


Step 9

Federal, state and local governments regulate different forms of advertising. Some states require that travel providers display their seller of travel registration number on promotional materials.


Step 10

Before starting a marketing campaign or even putting up sign in front of your store, you should familiarize yourself with some basic rules for advertising.


Step 11

The tourism industry is tied closely to the state of the economy. Travel businesses often find that they need to specialize in a niche market in order to stay profitable during an economic downturn. A niche market can focus on a particular type of traveler (retirees, honeymooners); market (budget, luxury); destination (Caribbean islands, safaris); or special interest (hobbyists, religious travel).Organized group travel is often an all-inclusive experience. Create a business plan. This is an important step in starting a group travel business. By going through the process of creating a business plan, aspiring owners will have a clear understanding of the financial, operational and marketing details needed to create a successful group travel business. For help in creating a business plan, contact the U.S. Small Business Administration (SBA). The SBA provides free support for business start-ups.


Step 12

Business owners with travel industry experience may wish to organize their own group trips as independent contractors or purchase a franchise such as Britain's Global Travel Group. An organization such as U.S. Tour Operators Association is a good place to start researching which business model is best for you.


Step 13

Take care of the details. After choosing the group travel business model, owners must attend to certain details. Conforming to government regulations at the federal, state and local level is important, and some state require travel agent licensing. Business insurance is highly recommended. The group travel business is a high liability risk for business owners. Accidents and mishaps can happen on trips, and the chances of being sued are higher. It is important for business owners to establish a corporation to protect their personal assets. If establishing a corporation, an attorney and a tax accountant are vital.


Tips

Given our close proximity to the Gower coast and West Wales we are well positioned to deliver astute commercial legal advice to businesses operating in the leisure and tourism sector. We have developed a large portfolio of clients operating in this sector, including:
  • Hotels
  • Pubs & Nightclubs
  • Restaurants & Cafes
  • Caravan & Camping Parks
  • Cinemas
  • Multi-purpose leisure projects

We have no typical client in this sector. Our clients range from owner-mangers to companies, investors, breweries, property companies and developers requiring advice on a range of legal issues.

Our teams provide a diverse range of services for this sector whether it a business sale or purchase or a licensing issue. Examples of recent instructions in this sector include:
  • Management Buy Out of a caravan distributor
  • Terms & Conditions for a Hotel
  • Licensing matters
  • Various property matters including sales, purchase and leases.



Reference

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