Online travel agencies have contributed to the drift toward seamless trip planning with an entire package available on a one-stop shopping platform. There is a vast scope for growth of the online travel agency due to the ever-increasing demand for services from tourists and travellers. This is one of those businesses that can be run successfully online, even from home. The tour and travel industry is growing fast. According to an estimate, the global contribution of the tour and travel industry is over US $ 7.6 trillion.
According to Phocuswright, 39 per cent of the digital travel market belongs to online travel agencies, and the number is expected to grow. The competition within the market is understandably a concern for newcomers seeking to establish their own presence.
Here is some strategic choice to be made to build a competitive online travel agency. Let’s find out.
1. Plan Everything
If you are interested in setting up an online travel agency, plan every little aspect in detail. Do not start it in a hurry as it may prove to be costly in the end in many ways. The planning will depend a lot on the type of business you choose. Your approach should be flexible to accommodate any new development and unforeseen events. A business plan made well ahead of starting an online business will be your guiding force. If you want to be a home-based travel agent, you will be looking for a host travel agency. The agency will take you as an independent contractor.
2. Fulfill The Legal Requirements
Starting an online travel business is one of the easiest jobs when it comes to completing legal formalities. First, you have to register for an e-commerce website license. After that trade license that proves that there is no other registered company name, this before the commercial register. then get a bank account in the name of the company. But if you are going to sell trips as a franchise, all these are not required.
3. Use A Host Agency
When you start an online travel agency, primarily a travel agency, you should think of using a host agency. Most independent agents opt to go with a host agency. Others want to have their own accreditation when they plan to start their own travel agency. If you are a new agent, it is advisable to use a host agency. A host agency is beneficial when you are looking for a low startup cost and high commissions. You will also get administrative support from the agency.
4. Hire Employees
An online travel agency needs the services of some professionals. These professionals are essentials to do a lot of fundamental work to run your agency smoothly and successfully. You will also need a hire hi-tech software experts for a glitch-free experience for your website. These professionals will also resolve any technical breakdowns that you may experience.
5. Build Relationships
Businesses are built by building a strong bond with the customers. A solid foundation of relationships with your satisfied customers and potential customers is the key to running your travel company successfully. People want to have some trust in a travel agency first as the agency will be sending them to a place for vacation. If they have faith in your travel services, they will become your loyal customers.