- For open a travel agency It is necessary to have a deep knowledge of the industry, to have good marketing skills and it is necessary to carry out certain bureaucratic steps, such as opening a VAT number.
- One solution to limit the start-up costs of a travel agency and enjoy significant benefits is to open a franchising office.
- To open a travel agency, it is mandatory to open the VAT number at the Revenue Service with ATECO code 79.11.00: “Travel agency activities”.
Travel enthusiasts with strong organizational skills could use his idea open a travel agency to start a new profitable business. But what are the steps to follow and especially the conditions to start this type of business?
A travel agency is defined as a business that deals with produce, organize and mediate traveltherefore specializes in organizing personalized experiences based on customer needs.
However, since it is an economic activity, some fundamental steps must be followed to get started. In this guide we will see what all the information you need to know to open a travel agency.
Opening a travel agency: how to do it
The travel agency takes over multiple aspects of organizing the excursion. First of all, it creates vacation packages tailored to the needs of customers. In addition, the travel agent books on behalf of the customer the transport to reach the destination, the overnight stays in facilities such as hotels, B&Bs, etc. or identifies the best cruise deals and all-inclusive vacation packages.
Not only that, because the travel agency must also provide assistance to tourists in obtaining the necessary documents, provide all the most important information about the country to be visited, provide travel insurance and recommend the best tourist itineraries based on customer preferences.
To be able to open a business of this type, therefore, you must have strong organizational skills;but also excellent problem solving skills as well as aptitude for marketing and sales techniques.
Travel agents interface with the public, so it is essential to have good communication skills to understand the needs of customers and provide them with all the clarifications they need. Apart from all these skills, however, there are some basic requirements to be able to start this type of business. But let’s see them in detail.
Conditions for opening a travel agency
To start a travel agency it is necessary to have at least one technical manager. To become a travel agent you must follow a training program. First of all, it’s good to get one degree in Tourism Sciences, to which a master’s degree can then be added. Alternatively, there are many specialist training courses available in this area.
The technical manager of a travel agency must follow a specific course, at the end of which he will have to take an exam at the provincial or regional offices to obtain the necessary qualifications. Once the exam is passed, the manager will be automatically awarded registered in the regional register.
The examination consists of a written and oral examination, which are necessary to demonstrate knowledge in the fields of tourism, trade, marketing, management and industry legislation. In addition, knowledge of at least two foreign languages is required.
In addition to this fundamental requirement, to open a travel agency it is also necessary:
- registration in the Register of Companies of the relevant Chamber of Commerce;
- registration in the Regional or Provincial Register of travel and tourism agencies within 10 days of signing the deed of incorporation;
- open the VAT number.
- submit the SCIA, a certified notice of commencement of activity, to the relevant Municipality at least 30 days after the commencement of activity;
- join INPS and INAIL.
Open your VAT number
As we expected, a necessary condition to open a travel agency is to open the VAT number. The business can be started either in the form of a sole proprietorship or, more often, in the form of a company.
Since the travel agency is generally set up in this form, it is not possible to adhere to the flat rate regime. Hence, it will be mandatory they follow the usual regime. This includes paying the following taxes:
- IRPEF, for natural persons;
- IRES, for the annual revenues of companies.
- VAT, the value added tax on all active and passive invoices.
However, unlike the flat rate regime, the ordinary regime allows certain expenses to be deducted, thereby reducing the taxes that must be paid annually.
To open the VAT number you can proceed independently or ask for the advice of a specialist accountant. In addition, the business must be registered in the Register of Companies, which must be carried out by the owner of the agency or the legal representative.
In this case it is mandatory to have a PEC address to be able to communicate with the agencies and tax authorities. When opening the VAT number it is necessary to state not only the accounting statusbut also the ATECO code related to the activity to be started.
When opening the business it is necessary to indicate to the Revenue Service what kind of economic activity you want to start. For this reason it is necessary to specify the correct ATECO (ATivita EConomica) code associated with the travel agency.
The code that must be entered when opening the VAT number is Ateco code 79.11.00: “Activities of travel agencies”. This includes:
- agency activities primarily engaged in the sale of travel, tours, transportation and accommodation services, to the public and to commercial customers;
- Travel agency activities: provision of information and advice, travel planning, organization of bespoke travel.
How much does it cost to open a travel agency?
The cost of starting a business such as travel agency requires a significant initial investmentwhich covers all those necessary start-up costs.
Usually, the average price to open a travel agency is 20,000 euros. The cost, however, can vary depending on several parameters and factors, including the city you decide to operate in, the type of service you plan to offer, and the staff you will hire.
THE major cost to be addressed when opening the business are the following:
- registration with the Chamber of Commerce;
- mandatory RCT insurance.
- renting or buying premises;
- purchase of computers and equipment;
- buying furniture;
- purchase management and licensing software.
- training costs;
- staff costs;
- marketing and advertising expenses;
- public utility services.
Open an online franchise travel agency
To reduce the costs associated with opening and managing a travel agency, a profitable alternative is to opt for franchising. In fact, opening afranchise travel agency the cost to open the business can even drop to 10,000 euros.
Open an online travel agency is possible thanks to the franchising formula, access to a series of remarkable simplifications for those just starting out.
With the turnkey solution you save a lot of money and you also enjoy the publicity and prestige of an already established and well-known brand nationally or even internationally, as well as receiving continuous support.
However, in some cases there may be entry fees and royalty payments. Each franchise chain offers its own specific conditions.
How much does a travel agency earn?
General travel agencies they earn a percentage of the products solda value that can range from 4% to over 15%.
The income of a travel agency is very variable. Since it is an independent business, there are many factors that affect revenue: from the location of the agency to its promotional ability, from the care given to customer assistance to the variety of proposals presented. An activity of this type can also arrive they earn annual amounts of around 200,000 euros.
Opening a travel agency – Frequently asked questions
To open a travel agency you need to make an initial investment starting from at least 20,000 euros. By choosing the franchising solution, however, it is possible to save on the start-up costs of a business.
A travel agency’s profit varies depending on the type of products and services sold. The agency, in fact, receives a percentage on each product or service, a percentage that can range from 4% to over 15%. Find out the details here.
To open a travel agency, there must be at least one technical manager of a travel agency, open the VAT number, register the business in the Business Register, open a position in the INPS and INAIL and send the SCIA to the reference Municipality.
To become a travel agency technical manager you must pass exams at the provincial or regional offices to obtain the necessary qualifications and register with the regional register. Knowledge of at least two foreign languages is also required.