Becoming an independent travel agent

Becoming an independent travel agent is easier to start and harder to make a living from than most guides suggest. The barriers are low, which is precisely why the work is in the part nobody writes about.

What you actually need

In the United States and the United Kingdom, the list is shorter than people expect.

A host agency, almost always. They hold the ARC, IATA or CLIA accreditation that makes suppliers pay you, and getting your own on day one is not realistic. See what a host agency is for how the splits work.

Errors and omissions insurance. Sometimes included by the host, sometimes yours to buy. You want it before the first booking, not after the first complaint.

Seller of travel registration, if you sell to residents of certain US states. Four states register sellers of travel, and the rules follow the client rather than your address, so this can apply to you even if you are nowhere near them. The detail is in seller of travel registration.

A way to take money that is not your personal account, and a way to keep client funds separate where the law requires it.

In most of Europe the picture is the opposite: there is no host agency tradition, and instead there is licensing, financial guarantees and insolvency protection from day one. If that is where you are, our country guides cover it.

What you do not need

A travel agent licence, in most of the United States and the United Kingdom. There is no general licence to be a travel agent in either. The four US seller of travel states are the exception, not the rule.

A qualification. Supplier training is free, useful and not a requirement.

An office. Almost nobody has one now, and clients do not ask.

To be an expert on everywhere. The opposite, in fact, which is the next section.

The three decisions that matter

Pick a niche before you pick a host. "I book travel" competes with the entire internet. "I book multi-generational family trips to Japan" competes with almost nobody, and the people who want that will travel to find you. Specialising feels like shrinking your market and is the single most reliable way to make a living in this job.

Decide how you charge. Flights pay no commission, so an agent who refuses to charge fees is working the hardest hours for free. Deciding your fee structure before the first client is far easier than introducing it to clients you already have.

Understand when the money arrives. Commission on cruises, hotels and tours is usually paid after travel. A booking made in January for August can be paid in September. The first year is not short of bookings as much as it is short of cash, and that catches people who planned around the commission rate but not the calendar.

What the first year looks like

Honestly: slow. Most of the first year is supplier training, building a client base from people who already know you, and learning which suppliers are good when something goes wrong.

The agents who are still here in year three generally did three things: narrowed to a niche, charged fees without apologising, and sold everything a trip contains rather than only the expensive part. The last one is a bigger lever than it sounds, because the extras attach to a booking you already made and often pay faster than the booking itself.

Quick answers

Do I need a licence to be a travel agent?

In most of the United States and the United Kingdom, no. Four US states require seller of travel registration based on where your clients live. Most of Europe works differently and does require licensing and financial guarantees.

Can I be a travel agent without a host agency?

Technically yes, but without accreditation most suppliers will not pay you commission, so in practice almost everyone starts with a host.

How much do independent travel agents make in the first year?

Little, and later than expected. Commission on most products is paid after the client travels, so bookings made early in the year are paid late in it.

What is the most important decision when starting?

The niche. Competing on "travel" means competing with every online travel agency at once. A narrow specialism is what makes clients seek you out rather than compare you on price.