How to Start a Travel Agency in 2026: A Step-by-Step Guide

How to Start Your Own Travel Agency in 2026

Travel agencies aren’t extinct. Sure, it’s probably been a while since you’ve sat down in a mom-and-pop agency to book a flight with someone’s help, but the internet has allowed other types of travel agencies to flourish in their own ways. Any time you’ve planned a vacation using Expedia, KAYAK, or another cost comparison site, you’ve used a travel agency.

If you’re interested in starting your own agency, there are a few different directions you can head. You could launch a business from the ground up, work underneath a host agency, or join an established franchise. Whichever direction you choose, there’s a lot you need to know before you officially get started.

We wrote this article to dive a little deeper into how travel agencies work, the types you’ll run into, the different paths you can take as a prospective business owner, and the steps to launching your own travel agency. As we explore the ins and outs of opening a business, we’ll take a look at Slash, a finance platform built for the modern travel industry.¹ Slash was built to help users manage their customer deposits, access global payments, and gain complete control over multi-region operations on a single dashboard.

What is a Travel Agency?

A travel agency acts as an intermediary between travelers and the suppliers who provide travel products. “Travel product” in this context, refers to airlines, hotels, cruise lines, tour operators, car rental companies, and travel insurers. When agents are involved in this process, they earn commission from those suppliers when a client books. From the consumer’s point of view, they often get access to lower prices and expertise that they wouldn’t have gotten from a few Google searches about their travel destination.

The role of the travel agency looks a lot different than it did a few decades ago. Brick-and-mortar storefronts filled with travel brochures were the norm until the mid-to-late 2000s, when web-based agencies began to take over. Today, most new travel agents work from home, running their businesses entirely online with access to professional booking systems. These systems are often provided by their host agency or franchise, but some entrepreneurs build their own in the hopes of starting their own independent business.

As of 2024, 40-45% of global travelers use travel agencies or advisors to help book their trip. The same survey found that 80% of corporate travel bookings pass through a managed agency. Since business trips usually involve large teams, modern companies often find it easier to let professionals handle the fine details.

Different Types of Travel Agencies

When referring to a “travel agency” you could be talking about three different structures. Nowadays, these include:

Traditional travel agencies, which operate out of physical storefronts and typically serve local clients through in-person visits. Customers who prefer a face-to-face experience often choose these types of agencies, especially if they’re trusted within the community. While traditional agencies are still around, they’re endangered; only 12% of consumers prefer to book through in-person agencies, compared to 72% who prefer online avenues.
Online Travel Agencies (OTAs) like Expedia, Booking.com, and Priceline. These are digital platforms that allow travelers to search and book directly without human assistance. While traditional agencies help customers plan their trips step-by-step, most large online travel agencies are built to compare the prices of dozens of flight and hotel options. Some online outlets can help travelers plan in a more detailed way, but the main players are third-party price comparison and booking sites.
Host agencies, which are umbrella organizations that independent travel agents work under. A host agency holds accreditations, maintains supplier relationships, and provides booking tools with back-office support. Independent agents get to access these resources in exchange for a commission split, typically in the range of 70/30 or 80/20 in favor of the agent. Lots of new travel agents start their careers under host agencies, even if they plan on starting their own businesses down the road.

How to Become a Travel Agent

One of the foundational steps to opening your own travel agency is, well, becoming a travel agent. Unlike in the cases of some industries, you don’t need a national license or certification to start working as a travel agent. However, there are a few important guidelines to follow:

Complete training through a host agency or organization: Before starting your travel career, the best thing you can do is go through training. Most host agencies provide training programs as part of their onboarding process, but if you’re not heading in that direction, organizations like the American Society of Travel Advisors (ASTA) and the Travel Institute offer additional certification programs that can improve your credibility and knowledge.
Obtain an IATA number: An IATA (International Air Transport Association) number is the globally recognized identifier used to earn commission when booking hotels, cruises, and flights. As an individual starting your own business, you can get fully accredited by the IATA online for a $247 application fee. If you partner with a host agency, you can get one for free.
Check state-level Seller of Travel requirements: Four states (California, Florida, Hawaii, and Washington) require Seller of Travel registration for anyone selling travel to their residents, regardless of where the agency is based. Interestingly, Maryland has a similar law going into effect in October 2026, meaning the list is about to expand to five.
Get errors and omissions (E&O) insurance: Errors and omissions insurance protects you if a client claims you made a booking error or gave bad advice. Along with travel agents, financial advisors and real estate agents can also pick up this insurance. It’s not a legal requirement, but it’s a good idea.

Different Options for Travel Agents

As a travel agent, you can either work as a regular employee within an agency, or run a business with some level of autonomy. If you’re interested in the latter, you have three main options:

Partnering with a host agency

If you join a host agency, you aren’t technically their employee. You’re allowed to operate under your own brand and use your own business name and LLC. However, the host takes a cut of your commissions, typically around 20-30%. This is in exchange for the IATA number, supplier relationships, and booking technology you get access to as a member of their agency. Overall, this is a low-cost, straightforward entry point for most new agents.

Joining a franchise

A somewhat similar approach is to join a franchise, such as Cruise Planners or Dream Vacations. You also get access to marketing systems, supplier agreements, and training, but you don’t get to create and use your own company name and image. On the plus side, you do get the brand recognition of partnering with a known organization.

Just like franchises in other industries, you’ll pay an upfront franchise fee and ongoing royalties. Home-based franchise models generally range from $10-$20k in total initial investments, while retail-storefront models like Expedia Cruises can run owners over $100,000 in their first year due to higher fees and a physical footprint. Overall, franchises suit those who want a more structured path with built-in support and don't mind the higher upfront cost.

Operating independently

Going fully independent means obtaining your own IATA accreditation, negotiating supplier contracts directly, and building your own booking and software infrastructure. While this gives you the most flexibility, it also involves the most complexity and cost. This is worth considering if you’re an experienced agent with an established client base, or if you have the capital and investors to start an innovative travel agency from scratch.

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Starting Your Own Travel Agency

If you want to join a host agency or partner with a franchise, the blueprint to success lies with that organization. If and when you’re ready to go it alone, the pathway can be a bit harder to figure out. Here are the steps you should take to start your own travel agency:

Step 1: Choose a niche or region

Picking a specific travel method, destination continent, or customer base often leads to more success than casting a wide net over all types of travel. Perhaps you specialize in cruises to the north Atlantic, or you provide access to remote South American hikes that are otherwise hard to find. As we learned in an earlier statistic, tailoring your offerings to business trips also has moneymaking potential. All in all, a focused niche can make your marketing more targeted and your area of knowledge more exclusive.

Step 2: Decide on a business structure

Lots of new agents begin as sole proprietors, especially if they work under a host agency. As your bookings grow, though, you may want to consider changing your business structure to an LLC or a corporation. LLCs are ideal if you simply want to separate your personal assets from your business liabilities, while a corporation (namely a C corp) is best if you have your sights set high and you want investors on board. Either way, you’ll also need an Employer Identification Number (EIN) from the IRS, which is free and only takes a few minutes to get online.

Step 3: Develop a business plan

Despite its name, a business plan isn’t just a “plan for your business”. It’s a formal document that can be around 15 pages, covering everything from the opportunity in your market to your team/ownership structure. In the realm of travel, it will include what your niche is, how you'll price your services, how many bookings you need to cover your costs, and what your marketing approach will be.

Step 4: Know the Legal Requirements and Costs

To become a travel agent and start your own agency, you’ll often need these four things:

Seller of Travel registration in California, Florida, Hawaii, and Washington. These cost a couple hundred dollars per year, and may come with a separate fee upon first registration. It’s important to note that these apply whenever you sell to residents of those states, not just if your business is based there.
Business registration with your state, which is typically $50 to $500.
An IATA number, which costs about $250
E&O insurance, at around $600 to $1,200 per year.

If you’re home-based and you work through an agency, you may be able to get off the ground for only a few thousand dollars in total startup costs. For those launching their own businesses, the cost of developing a proprietary service/software can be a lot higher, especially if you’re pairing it with a storefront.

Step 5: Set Up Your Financials

No matter what sort of agency you run, you’ll want to open a separate business bank account. Not only does a business account keep your books clean, but some account providers also offer tools based around the workflow of a busy travel agency.

As you handle commissions, supplier payments, client refunds, service fees, and general operating expenses, you’ll be sending money in all sorts of directions. With a platform like Slash, each of your transactions are visible in real time on an integrated financial dashboard. If you routinely make payments overseas (which most travel agencies do), Slash supports international payments via global ACH, wire, stablecoins, and virtual cards.⁴

Land Your First Customers

Acquiring your first client can be the toughest part of the whole process. If possible, start with your personal network, since your friends and family are just as likely to travel as anyone else. You may also want to consider offering referral bonuses, especially if you’re targeting corporate business trips.

Fortunately, travel agencies usually don’t operate on the same ticking financial clock as other startups do. If you’re operating independently, you don’t have inventory to stock, employee wages to send, or office rent to pay. While working to get your first customers, spend time fine tuning your website and learning about email marketing. Landing your first big fish takes patience, so we wish you luck.

How Slash is Purpose-Built to Help Travel Agencies

Once your travel agency is up and running, you’ll be ready to send clients all over the world. You’ll need to send your money just as far. As you book hotels, events, and experiences on behalf of customers, you have to be able to transfer money to other countries consistently and quickly. This isn’t easy without a solution like Slash.

Slash is an all-in-one finance platform built for exactly the kind of complexity that comes with opening a travel agency. With support for global ACH, wire, and virtual cards, you can make payments to international businesses and suppliers without having to log in to separate systems for certain rails. For especially urgent payments, Slash also comes with built-in stablecoin on/off ramps so you can convert, send and receive USDC and USDT. Unlike traditional rails, stablecoins can transfer and settle in minutes.

For domestic payments, the Slash Visa® Platinum Card has you covered. Eligible business expenses made with the Slash Card can earn users up to 2% cash back, meaning valuable capital can be put right back in your pocket as you get your travel agency going. Each purchase can also be auto-categorized and synced with accounting solutions like QuickBooks Online, NetSuite, Sage Intacct, and Xero, saving you time on end-of-month reporting.

Along with these features, Slash offers:

Global USD: The Slash Global USD Account is designed as an alternative for foreign founders who want access to USD without forming a US entity.³ Balances are backed by Slash’s USDSL stablecoin, which is designed to maintain a one-to-one value with the US dollar.
Working capital financing: Access short-term financing with flexible 30-, 60-, or 90-day repayment terms to help bridge cash flow gaps.⁵
High-yield treasury: Earn up to 3.81% annualized yield on idle funds with money market investments from BlackRock and Morgan Stanley, managed directly within your Slash account.⁶
AI-powered finance: Our platform comes with Twin, a built-in AI agent that can be prompted with natural language to complete complex tasks. Users can ask it to create cards, pay invoices, review your cash flow, and much more.
Separate virtual accounts: Create multiple business bank accounts to silo cash flows by project, department, or client with real-time analytics across each of them.

As you grow your travel agency, Slash is built to scale right with you. Set sail, take flight, or get on the road with Slash today.

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Frequently Asked Questions

Do you need a license to start a travel agency in the United States?

No, there's no federal travel agent license in the U.S. However, if you’re looking to add clients in California, Florida, Hawaii, or Washington, those states require a Seller of Travel registration. Maryland has a similar law going into effect in late 2026.

What's the difference between a host agency and a travel franchise?

A host agency is an umbrella organization that lets independent agents work under its accreditation in exchange for a commission split. Importantly, those agents build and operate their own brands. A travel franchise also provides things like accreditation and software, but you’ll be working under their recognized brand name.

What business structure is best suited for a travel agency?

If you don’t plan on hiring employees or partnering with another agent anytime soon, forming a sole proprietorship is a good choice. When it comes time to expand, an LLC is a popular choice for an average agency, but you may also become a C corp if you’re looking to add a wide range of investors.