How much does it cost to start a travel agency?

Are you planning to start a travel agency, if so you might want to know some crucial facts about starting a travel agency. One of the thing you must know is how much does it cost to start a travel agency. This is very important to know so lets focus on this question!

How much does it cost to start a travel agency?

before I can give you the real facts you have to answer a question. Do you want to start a home based travel agency or do you want a store front travel agency? The dicision you make will truly influence that amount of starting capital you need. Let`s display both options here.

How much does it cost to start a home based travel agency?

In this part I will show you the facts and figure of a home based travel agency. The cost of a home based travel agency is extremely low. It might be even shocking. What do you need for a home based travel agency? Most often you already have a desk or table and a chair where you can work on! I also assume you have a decent internet connection and a computer or laptop to work on.

Many people when they start a home based travel agency they will spend too much even before they make a penny. I understand you need a work space. You probably plan to buy a decent working desk and get that expensive “executive” chair.  I will tell you stop getting expensive office equipment that you think you need. You do not need anything expect 3 things:

  • A decent laptop or computer (does not have to be fancy as long as it works)
  • An internet connection that is average speed (for P 999 you can get one)
  • A printer to print out documents and tickets in case you will meet customers face to face

What about the office equipment of the home based travel agency?

A fancy office chair is not needed, and neighter is a office desk! Do you have a dining table and a dining chair? Well, there you are your office is already set up. You do not have to pay for anything except the three things I have mentions. So, how much does it cost to start a home based travel agency? If you buy a (surplus) computer or laptop that might cost you P 5,000 to P 10,000. The internet connection such a PLDT home or My Bro is P 999 a month for two years. And finally, you have printer. A printer with inkt and paper will be maximum P 5,000.

This means your real total invest is P 20,000 for the essential equipment and P 999 each month for the internet. Probably you already have an internet connection at home and a computer as well. So with P 5,000 you are ready to start.

How much does it cost to start a store front travel agency?

Creating a store front travel agency is completely the opposite of a home based travel agency. Why you might ask? Opening a store cost money, and you will need to consider multiple aspects. First you need to find the perfect spot of your travel agency. This means you will have to get ready to pay rent for your travel agency. Of course this must be a wise investment. You do not take something random. You select the best place for your travel agency where you expect many walk ins. Your store is your promotional asset.

When you pay rental fees you have to consider that you need to pay a few months in advance, have a deposit and perhaps have to rebuild a part of the store. Not every rental place is 100% ready for business. Consider that you need to have 10 times of the rental fee in advance.

Besides the rental fees you will have to get great office equipment that truly supports the look and feel of your brand. Invest in a strong brand visibility. This is the best way to maximize your promotions of your store. Do invest in a sign with your logo and display it clearly. Everyone that passes by should know your travel agency! All of these additional equipment will require a decent size of investment.

So what is the total investment of a store front travel agency? 

The total invest of a store front is far higher than a home based travel agency. Most likely you will be needing at least 10 times the amount of a home based travel agency. So an initial capital of P 200.000 will just surface the basic needs. Your rental location will be a huge factor in the price. However the investments will range from  P 200.000 to P 500.000.

What about the costs for the business permit and DTI for travel agency?

Yes, of course! I did not consider the costs of all the legal documentation and papers that you also need to obtain. This might add up an additional P 5.000 to P 15.000 to receive a business permit and all required documents to get started.

What should you do, start a home based travel agency or a store front travel agency?

I will give you my personal recommendation based on my experience. Please note that a home based travel agency and a store front travel agency are both wonderful. However, business type must suit the person. A home based travel agency needs less investment and is very suitable to start out. This is a very good starting point for you as a beginner. This is because you are allowed to make mistakes and discover the entire process of booking travel packages and managing the business.

Many starters will make a huge amount of mistakes and you will notice that in the beginnen mistakes are unavoidable. This is because you need to discover everything. That is fine. I also make a ton of mistakes during the start of my travel agency. It is completely OK. However, in a store front travel agency you already have a few fixed costs coming each month. You need to pay the rent, the service fee and the internet connection. At this point you need to hurry up and make your ends meet or else you will be out of business.

For starters who do not know the travel agency business or have never managed a business at all, I truly recommend to start with a home based business. You can learn the entire business without the risk of shutting the business down. Of course, if you have enough financial back up and can afford to use that for your business you can just at once to a store front travel agency.

Are you a highly experienced business person. In that case I can tell you something wonderful. If you want you can start a store front travel agency right away. You should be able to manage your business well.

I am unexperienced in the travel industry and want to start a store front travel agency, how?

Well do not worry. Many starters build their home based travel agency untill they notice that they are growing quickly. Once they know the “ropes” of the business it will be really easy to switch from home based travel agency to a store front travel agency. Remember, you have to learn first and once you know you can continu and pursue your store front travel agency.


However, I love home based travel agency businesses because they are easy to manage and you can even run your business while you are enjoying the sun in Boracay. All you need is internet and a laptop. That makes a home based business one of the best things for me.

Are you interested in start a travel agency business?

You are on this site just for one main reason, and that is if you should start a travel agency business yes or no. If you ask me, I would say do it now before you miss the boat! The travel market in the Philippines is booming and there are not even enough travel agencies to cover all the needs. This trend is a huge trend and growing quickly. However, are you waiting and hoping to see if next year will be better? Do not procrastinate, because next you will be even better than this year! Philippine economy is growing each year by 6% at least. Go and contact us right away! We offer you a wonderful complete start a travel agency set up package. You will get:

  • Full access to ticketing transport prices.
  • Extremely competitive tour and packages prices for many destinations!
  • Great coaching for every question you have.
  • A truly supportive team to help you out!

Learn more about this here:

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