How Much Does It Cost to Start a Travel Agency Business?

By Michael Ferguson

Starting a business of any kind can be an expensive endeavour, and this is no different when it comes to opening a travel agency. The costs associated with launching a travel agency vary greatly depending on the type of business you’re setting up and the services you’ll offer.

Business Licensing

The first step in starting your own travel agency is obtaining all the necessary licenses. Depending on where your business is located, you may need to obtain licenses from both state and local authorities.

This can cost anywhere from a few hundred to several thousand dollars. You may also need additional licensing for certain services that you offer, such as selling airline tickets or booking cruises.


Another cost that must be taken into consideration when starting a travel agency is insurance. You will need to insure your business against liability, as well as purchase errors and omissions insurance.

This coverage protects your business from potential lawsuits related to customer complaints or mistakes made by you or your employees. The cost of insurance for a travel agency varies depending on the size of the company and the services offered, but it can range from hundreds to thousands of dollars per year.

Office Space & Equipment

You will also need office space for your travel agency, which can range in price depending on location and size of space needed. Additionally, you will need furniture, computers, printers and other office equipment in order to operate your business efficiently. These costs can add up quickly and may be an expense that cannot be overlooked when budgeting for your new venture.

Marketing & Advertising

Finally, marketing and advertising are essential when starting any new business – especially one such as a travel agency where customers are actively searching for services online or through social media outlets. You will need to invest in both online and offline marketing campaigns in order to reach potential customers and build awareness about your company’s offerings.


Starting a travel agency can be expensive but with proper planning it can become an achievable goal. Licensing fees vary by state but they generally start at a few hundred dollars while insurance costs depend on the size of the company but usually start at hundreds per year too. Office space also needs to be taken into account along with furniture and other equipment plus marketing campaigns are necessary for success in this highly competitive industry so these costs should be factored into any budgeting plans too.