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

Blog May 21, 2025 9 min to read

If earning money and perks while helping clients travel sounds like a dream, you might enjoy starting a travel agency. While many travelers rely on the internet to research and book their travel, more and more are looking for experienced agents to help them customize their trips and save money.

Now might be a great time to explore a career in travel.

A recent survey found that 47% of Americans used in-person or online travel agents to book holiday travel, and 38% of Millennials and Gen Z opted for traditional agents, compared to just 12% of Gen X and 2% of Boomers.
A whopping 73% of cruisers say travel advisors influence them, according to Cruise Lines International Association’s (CLIA) 2024 State of the Cruise Industry report.
Surveys show that 92% of Americans plan to travel in 2025, and 56% intend to travel more than they did in 2024, which could further increase demand for agents.

Travel agents can choose who they work for and what types of trips they want to offer clients. Deciding what business model you’ll follow is the first step. It impacts your training, commission structure, flexibility, and long-term profitability.

Your First Step to Starting a Travel Agency

If you want to work as a travel agent, you can choose to start your own business from the ground up, join a hosting agency, or invest in a franchise. No matter what path you choose, you must obtain an IATA number. This is a globally recognized ID that credits you whenever you book a hotel, cruise, or other travel-related product on behalf of a client. Individual agents can apply for an IATA number, but it requires time and money. That’s why many new agents prefer to sign on with a hosting agency or invest in a travel franchise.

Interested in Starting a Travel Agency? These Are Your Options

If you choose to work as an independent travel agent, you must pay for your training and certifications. You’ll also be responsible for creating and promoting your own website, investing in travel booking systems, and paying for insurance. Independent agents must generate all of their leads and manage all business operations. While you might enjoy greater flexibility under this model, building your own brand takes time away from serving clients.

Many new agents find it beneficial to affiliate with a hosting agency, an umbrella organization offering agents commissions, supplier access, and marketing and technology tools. If you decide to work as an independent agent affiliated with a hosting agency, you’ll need to decide what characteristics are most important to you. Do you want to be affiliated with a national firm? Is your hosting agency known for particular travel experiences (such as honeymoons) or do they specialize in cruises? How much commission can you expect to make? Peer reviews can help you get a flavor of what working for a specific hosting agency is really like, according to Host Agency Reviews.
Investing in a travel franchise is another way to build a career as a travel agent. Although joining a franchise requires paying a franchise fee and funding other start-up costs, it can provide instant brand recognition, access to proven marketing and lead generation programs, and well-supported booking and payments systems.

Hosting Agencies Vs. Franchises

While both hosting agencies and franchises offer support, training, and commissions, there are some distinct differences between the two. Before you make a decision, you should talk to agents from hosting agencies and travel franchises. It’s critical to better understand how commissions are paid out. Also, how much support you can expect from each, and what benefits you’ll be able to offer your customers.

Rodney George, a Cruise Planners franchise owner, started his travel career with a hosting agency before coming to Cruise Planners and found the switch significantly beneficial.

“I came from a host, and I gave up a percentage of my income to come to Cruise Planners,” George said. “But my income is five times greater now than it was four years ago, just because I don’t have to go out and reinvent all the stuff that just happens automatically with Cruise Planners. The marketing, the technology, the support – all that stuff is just done.”

Franchising vs. Going it Alone

Unlike hosting agencies, travel franchises provide comprehensive training, exclusive vendor relationships, and a network of like-minded agents. Most offer advertising and digital media support, operational systems, and business coaching. Others will give you the flexibility to build your business part-time while you work full time, but they do ask you to adhere to marketing standards and follow their prescribed business model.

Both franchises and opening your own agency carry unique risks. Franchising comes with less risk than a traditional startup, and offers franchisees an accelerated path to profitability with the support and encouragement of the franchisor. That’s because companies don’t begin franchising until they’ve fine-tuned their processes and procedures based on their own experience. If you prefer to build your own brand and adjust your strategy as you grow, then franchising might not be the best option for you.

Owning a franchise still gives you the freedom to be your own boss. After working for years in corporate America, Nick Pena said joining the Cruise Planners travel franchise gave him freedom and independence—and all the tools he needed to launch a successful travel business.

“While I’ve worked hard and taken a strategic approach to building my business, I know I wouldn’t be where I am today without the exceptional training, support, and technology provided by Cruise Planners,” he said. “I needed an environment where I could thrive—a place that offered structure and world-class training. Cruise Planners was the perfect fit, combining that professionalism with a family-like culture.”

A Successful Franchise Model

Cruise Planners was founded in 1994 by Michelle Fee and two other travel industry veterans in Coral Springs, Florida. Cruise Planners offers cruises, guided land tours, and all-inclusive resort vacations to customers throughout the United States. Its nationwide network of more than 2,500 home-based travel agents enjoy open territories and can sell travel to anyone in the United States.

When you invest in Cruise Planners, you get instant access to training and tools. Your franchise fee covers STAR University, a six-day in-person training in Fort Lauderdale. Each franchise owner also gets a personal business development coach. They provides ongoing, one-on-one coaching to help establish and grow your business.

You earn money helping your clients plan and book a variety of travel experiences and services, including cruises, hotels, car rentals, passport services, insurance and more. Your commission is paid to you by the travel provider after your client completes their vacation; your client is not required to pay a fee. As a franchise owner, you are expected to pay a royalty to Cruise Planners ranging from 1.5%-3% of gross commissionable sales, according to the company’s Franchise Disclosure Document.

Colleen and Nate Chapman embarked on a second career as Cruise Planners travel agents in the summer of 2024. Nate had previously worked with a hosting agency but decided to invest in Cruise Planners’ franchise model to scale their part-time business into something bigger.

“Joining a traditional hosting agency was a way to get in and understand how to book cruises and travel, but what I found quickly was there wasn’t a lot of support—you’re doing everything yourself, including your own marketing, and using your own contact relationship management and proposal tools,” Nate said. “I asked myself, how was I going to scale this? Instead, we decided to find a partner that could help our business grow—and you can’t get any bigger than Cruise Planners.”

The Perfect Work From Home Option

Besides incredible travel opportunities, here are some other perks Cruise Planners’ franchisees enjoy:

Work from anywhere. Cruise Planners supplies the technology you need to do your research and book your clients. You do not need to open a storefront, nor are you restricted to working from home. The company’s technology suite includes a booking platform, agent and client mobile apps, email automation platform, and Amazon Alexa compatibility.
Flexible work schedules. As a sole proprietor, you run the risk of having to forgo new business if you want to take time off. Cruise Planners agents can work as much as they like and team up with other agents to support each other’s clients.
Support from industry experts. The Cruise Planners corporate office does not compete with franchise owners. They exclusively provide training, marketing support, and one-on-one coaching as part of your franchise investment.
Affordability Cruise Planners is attainable for most people. New agents only need $10,995 in cash to get started. (Franchise owners with some experience in the retail travel industry may pay lower franchise fees.) Cruise Planners estimates an initial investment ranging from $2,295 and $23,465, depending on your experience level and administrative startup costs.

Make a Plan That’s Right for You

In 2025, Franchise Business Review named Cruise Planners a Top Low-Cost Franchise and a Top Franchise for Women. Their agents agree. In a recent survey:

97% of franchisees agreed that they enjoy operating this business.
99% of franchisees said they were likely to recommend this franchise to others.
97% of franchisees believed their franchisor acts with a high level of honesty & integrity.

If you have a business background and enjoy helping others make memories through travel, Cruise Planners might be worth exploring.

A travel franchise can offer you the roadmap you wouldn’t get building your business from scratch. However, you must research each franchise opportunity thoroughly before you make an investment. Carefully evaluate all costs, revenue potential, and your potential return on investment. Use the the company’s Franchise Disclosure Document, franchisee interviews, and franchise satisfaction surveys.