Wednesday, December 10, 2014

The Best Tips to Start a Travel Agency

Travel Agency | Small Business IdeasA travel agency is a private retailer or public service that provides travel and tourism related services to the public on behalf of suppliers such as airlines, car rentals, cruise lines, hotels, railways, and package tours. In addition to dealing with ordinary tourists most travel agencies have a separate department devoted to making travel arrangements for business travelers and some travel agencies specialize in commercial and business travel only. There are also travel agencies that serve as general sales agents for foreign travel companies, allowing them to have offices in countries other than where their headquarters are located.


If you're an experienced traveler and enjoy helping people, you might consider starting your own travel agency. You can operate a travel agency out of an office location or even from your own home. It is important to keep in mind that the success of a travel business depends heavily on the strength of the economy, so you can expect to experience ups and downs. Some tips can help you launch your travel agency.

Even travel sellers who feel at ease when talking to clients one-to-one can tense up when their agency needs to address a group of clients or prepare presentations on destinations, tours, cruises or other products. 


Types of Agencies

There are three different types of agencies in the UK: multiples, miniples, and independent agencies. Multiples comprises a number of national chains, often owned by international conglomerates, like Thomson Holidays, now a subsidiary of TUI AG, the German multinational. It is now common for the large mass market tour companies to purchase a controlling interest in a chain of travel agencies, in order to control the distribution of their product. The smaller chains are often based in particular regions or districts.

Four different types of agencies exist in the United States: independent, consortium, regional, and mega agencies. American Express and the American Automobile Association (AAA) are examples of mega travel agencies.

Independent agencies usually cater to a special or niche market, such as the needs of residents in an upmarket commuter town or suburb, or a particular group interested in a similar activity, such as sporting events, like football, golf, or tennis.

Travel agencies choose between two approaches. One is the traditional, multi-destination, outbound travel agency, based in the traveler's originating location; the other is the destination focused, inbound travel agency, that is based in the destination and delivers an expertise on that location. At present, the former is usually a larger operator while the latter is often a smaller, independent operator.


Here are some quick tips for organizing group presentations for current and future clients:

1. Have a purpose or goal and stick to it... For every presentation you do, you should have a specific defined purpose and then a singular focus on achieving this goal. If we use the example of a presentation on a trip to Japan, everything you do, from the second the client arrives to the next day’s follow-up, has to relate to booking travel to Japan.

2. Research the audience... You want to have the right people at the presentation, so you must be crystal clear about the agenda. You also must search your database to identify clients who have expressed an interest in the featured destination, traveled to similar destinations or expressed interest in a new and exciting alternative. 

(This is where niche market notations in the client file pays dividends. Someone interested in culinary travel may be interested in a shopping-and-cooking experience, or learning about a tea ceremony or having a behind-the-scenes visit to a famous restaurant.) 

3. Entice them to attend... The invitation to attend should impart a feeling of exclusivity and specializes that makes the client feel important. This strategy also tends to lower no-show and regrets rate.

4. Create the ambiance... Agencies that emote travel by crafting an atmosphere of far-away places, excitement, exploration, relaxation, getting away from it all and more tend to be most successful. They do this with displays of posters, statues, masks, costumes and other decorations. This helps to create a three-way relationship between the client, the destination and the agency. 

5. Get attendees involved and invested... Audience interaction will make a presentation more meaningful. The challenge is to encourage participation without alienating the introverts in the room. To get them involved and invested, consider a simple get-to-know-you questionnaire or ask people to list all the countries they’ve visited. Hand out a blank map at the beginning of the presentation and ask each person to add in certain locations. Or ask simple questions, such as: name three foods you would eat in Japan. At the end of the presentation, you can have a drawing for a prize.

6. Watch your watch... Choose a time that is comfortable for your clients to attend, whether this is in the afternoon or evening. Strictly adhere to a set time to start and end the presentation. Time parameters help you to plan, while at the same time, showing the audience that you respect their time. 

7. Remove any barriers to attendance... Address issues of accessibility so that clients of all physical abilities are able to attend. Likewise, arrange for easy parking – free if possible – to create a more welcoming atmosphere.

8. Involve all the senses... Just think how you react when you walk by a bakery and are tempted by the smell of fresh cookies and cakes! This is the same atmosphere that successful presentations achieve. 

In travel you can play to all the senses by: 
  • serving refreshments and snacks when the clients arrive
  • providing a taste of the destination during or after the presentation (indigenous food and drink)
  • playing music from the destination
  • allowing the audience to touch and smell the destination by passing around souvenirs or artifacts, perhaps even sand or exotic fruit.
  • featuring quality in-focus maps, photos and videos.

9. Ensure the speaker conveys positivity and energy... Nothing kills a presentation like a poorly prepared speaker. Longevity or position in a company is no guarantee that the speaker will excite the audience through positive intonation and body language. Interview the speaker beforehand. Ensure that s/he knows the audience and knows the information. Avoid speakers who only know a packaged presentation and refuse to divert from it — or those who tend to deliver a commercial ad for their product without addressing the topic of the presentation.

10. Create excitement... Contests, giveaways, discounts, early booking incentives, etc., add excitement to a presentation. It may be a bottle of champagne in the client’s suite or it may be something more immediate, such as a gift card. This is where you involve partners such as a tour wholesaler, bookstore, luggage shop, ethnic restaurant etc. It’s one of those cross-marketing win-win-win opportunities.

11. Take the next step... Too many presentations end with the host bidding the clients a safe drive home, rather than creating next steps in the sales/booking procedure. You can keep the momentum going in a number of ways. Hand out personalized booking forms for a credit card deposit. Distribute a list of niche market activities or tour options. Indicate that you will personally call attendees in the next day or so to chat about their upcoming trip. Provide brochures to remind clients about the advantages, features and benefits of destination. And remember to provide your own contact information and a reminder about the experience and expertise you bring to the travel satisfaction equation.

12. Make follow-up a priority...  Just as you said you would, contact all attendees (or the group leader) to gauge their feelings and ensure that all their questions and concerns are addressed as well as to provide guidance on how to proceed with the booking.

13. Consider Working From Home... If you want to start a travel business but don't have a lot of money, consider basing the business out of your home as a way to keep overhead to a minimum. If you have an Internet connection, you have access to items such as airline schedules and travel packages, and you can help clients make travel arrangements over the phone of via email. However, if you intend to focus on corporate travel, a brick-and-mortar building will give you a more professional presence.

14. Find Niche... Plunkett Research indicates that 80 percent of travel consists of leisure travel as opposed to corporate, making it a more likely point of entry, according to the Entrepreneur website. Within the leisure industry, you focus on developing a niche. A niche can help you become known as an expert in a particular area and can lead to referral business. Possibilities include arranging tours for seniors or trips to a specific destination.

15. Consider Franchise... If you're new to the travel industry or are a first-time entrepreneur, consider purchasing a travel franchise. With a franchise, you gain access to a proven business model and established brand that helps reduce some of the risk associated with starting a business. You can find additional information about travel agency franchises at FranchiseOpportunities.com.

16. Registration... Some states may require that you register as a seller of travel services in that particular state, according to Business.gov. This can involve paying a fee and possibly acquiring a bond. To find the registration requirements for your state, contact your state's business licensing office.

17. Get Certified... Even if your state does not require you to register as a travel seller, it can still be a good idea to obtain professional certification. This will help establish you as a travel professional, which can give you a competitive edge over non-certified travel agents. Certification can be obtained by completing courses of study offered by organizations such as the American Society of Travel Agents (ASTA.org).

18. Assume That ... As my grandmother used to say, "Never assume, as you can make an 'ass' out of 'u' and 'me.'" Just because your travel agent assumes something doesn't mean it's true. Get all the details, terms and conditions of your trip in writing.

19. You'll Love It Well ... maybe or maybe not. Yes, your travel agent and a host of his or her clients might love a particular destination, hotel or restaurant, but it's not a given that you will, too. Do some of your own research about your agent's recommendations to be sure they fit with your picture of a dream vacation.

20. They Take Credit Cards.. Even in this technology-driven age, credit cards aren't accepted everywhere. What's more, using your cards abroad can result in all kinds of fees. Research which credit cards offer the best terms, and plan on having them as part of a mix that includes a few U.S. dollars, a little of the local currency, some travelers checks and your ATM card.

21. Everyone Speaks English... Everyone? Really? Probably not. If you're traveling abroad, it never hurts to brush up on a few niceties in the local language. Or get with the 21st century by downloading iTranslate, a free app available at the iTunes Store and Google Play. It automatically translates whatever you say into your smartphone.

22. It's Perfectly Safe... Famous last words. Check out what the U.S. Department of State has to say before you travel. Its website will give you up-to-date information on safety, crime, health and other concerns.

23. There's No Need to Reserve a Hotel Room... If you're traveling in the high season or during local holidays or major events, you could be left out in the cold. Plus, you're not likely to get the best rates, regardless of when you travel. Research — or have your travel agent research — hotels and rates, and book ahead of time.

24. It's Included in the Price... Oh really? This ties in with Bad Tip No. 1 (Assume That ... ). Have your travel agent verify and clarify what is and isn't included in your itinerary. Get what is included in writing, and bring a printed copy with you.

25. It's Cheap to Travel There... Sure, you might get a good deal on airfare or an air/hotel package. But what's the exchange rate, and how much do things cost? To get a better sense of the total vacation price tag, research tipping protocols and the prices of things like a cup of coffee, a hamburger, cab or public transportation fares, and museum admissions.

26. Your Health Insurance Will Cover You If You're Sick or Hurt... Did you know that your Medicare (and Medicare supplement) isn't recognized in some countries? Find out from your health insurance carrier what is covered. If needed, get a medical travel insurance policy.

27. See and Do as Much as Possible... Though your agent might think that he or she is simply encouraging you to get your money's worth, packing in too much is a fatal mistake. Slower-paced itineraries allow for downtime and the chance to linger somewhere if you like.Of course, this is not the end of relationship-building with the client. Even if they don’t travel to a featured destination, the skill with which the presentation was conducted will impress on the client the need (yes –the need!) to keep the name of your agency front and center. The presentation investment you make will come back to reward you.


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