Setting up an online travel agency in UK

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Permalink Reply by Alex Mcnish on August 29, 2009 at 10:25am

Hi Anastaija
i am reading your info here,i am currently researching a travel agency business.Happy to correspond with you, i am based in London. I wondered what the name of the American company is?

Alex

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Permalink Reply by Murray H on March 6, 2009 at 10:32pm

I am trying to understand a bit about what you want to do. Let me see if I am right. You see a gap for niche tours (be thay what they may) in the sense that the country is a niche or a specfic demographic is the niche. (Or both, it could be). You now wish to set up tours. I will assume that this is the case. This involves air travel and is overseas (this is important as the regulations are different) For now, I will assume you mean overseas.

By "host" you mean an ATOL holder that will, as we say, "umbrella" you until you are strong enough to obtain an ATOL in your own right and will assist you to build your business - as well as the agent's business that assist you, I presume - otherwise no-one will have any motivation to assist in the first place. I also assume that it is your intention to trade via the internet only and not through the high street network.

The matter of taking over an effectively defunct business has been dealt with. That said, there may be one where you could obtain the client list if all Data Protection laws are complied with, but that is a legal rather than travel matter, so I cannot take that any further than a suggestion that may be looked at. The comment about franchise is correct. Personally, I do not think this is realistic for a start up. There are many good franchises about (eg Hays Trave) but these are for established agencies. In any event, I do not think they would take you on at an early stage. I am also worried about the USA agency. They may be licensed in the USA for sales in the USA but that does NOT mean they are neccessarily licensed to sell in the UK (or EEC) for holidays here, this should be cheacked. The USA agency ardour's may cool somewhat when they take this on board.

I suggest you may want to look at discussions with an established UK RETAIL travel agent who has the tools you need. An ATOL (to do the holiday selling under), an IATA licence (to get the flight seats) a GDS (Airline distribution system) to access and book seats and an accounting system. Actually, (Alex will slaughter me for this) the latter item can come later as if you have but a few bookings, you could keep your records manually (We managed this for many, many years quite happily before computers, you know). A retail agent may only have a retail system but that again can be easily adapted and used in conjunction with a manual system - later, when you have got some bookings and income going you can call Alex for his system.

Which retail agent? You need an agent that will let you do your own thing under guidance. Being able to have someone to talk to who knows travel - free - is a wonderful thing when starting out. Yet you also need one who will give you free reign. The agent will bank and keep the money, as is only right and proper (you are using their bond) and give you your moity at the end of each month or as you arrange. It is therefore important that you have faith in the integrity of the agent you choose - better, then, that they are someone local. I work as a homeworker, now, and my "boss" is based in Wales. Takes me about 3 hours to drive there and I go down every so often to talk about things going on/ get lynched for doing stuff wrong etc. It is also good to know that there is somewhere to hand the phone over to as you cannot work 24/7 which is often one of the demands of the travel business. Who you choose is up to you, speak to a few. If allowed, you can email me via Alex and I will put you in contact with my boss and see where you go from there. Personally, I do not like the main big homeworker groups as advertised in the trade press, but that is me. I am not a Moonie and do not like the idea of having to go to conferences to be motivated, hero worship the "Dear Leader" and have 18 year old egits ringing me up from a head office 20 times a day.

You would usually split the income on terms as agreed. There may be a small monthly charge for use of the systems but you should not be asked for massive up front fees. The costs are very little, really, to bolt on an extra person. You would need to have your own PC and a GOOD broadband, such as a BT one. TIP: I have BT equipment, BT broadband, BT bill, Hell! Even the loo paper has BT on it - may be a greater cost but it works and if it does not work, a man from BT comes and fixes it pronto, no matter what. I have a neighbour who got a cheaper broadband, bills from somewhere else and heavens knows what equipment - when his went down, he was off line for pushing 6 weeks! I know you want your own business, but it is tough. Think about this as well (which is a mantra I picked up from Duncan Bannatyn's book) - It is much better to have 33% of something worth a few million than 100% of something worth a few hundred not exactly what he said but that's the gist of it.

The above is just a few general thoughts. I have not touched on the website bits and web related stuff etc etc and there are many better qualified than I to comment on that aspect. I hope I have given you some pointers, though. And Good Luck!

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Permalink Reply by Anastasija on March 6, 2009 at 11:08pm

Murray H,

thank you so much!! You´ve touched some interesting and important matters. The Agency I´ve chosen for now have permision on sales in UK and have a great database that covers almost the Whole World. However, I will try to know if they have their representatives in UK, so, as u said, I could just drop by and ask my questions (it would be helpful).

They do have 24/7 support and even can take care of your business while u r away (for a fee, of course).

Thank you for your time and hope to meet you here from time to time :)

Xxx
Anastasija

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Permalink Reply by Alex Bainbridge on March 7, 2009 at 8:05am

Hi Anastasija
Re this "US based" system - just checking its not an MLM based concern.

See http://www.tourcms.com/blog/2007/10/22/multi-level-marketing-mlm-fo... for more information about MLM such as YTB etc.

The way to tell is that your "income" is actually made from selling travel - rather than selling new signups to the same agency.

Please do mention the host agency here..... it isn't going to impact you down the road and then we can be much more specific about how your trading position may be in the UK

Thanks. Alex

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Permalink Reply by Anastasija on March 7, 2009 at 2:25pm

Hi Alex

I don´t mind to mention the name, just don´t want others to think that i am promoting someone...It´s Travelocity.com or Travelocity.co.uk

I will check the one you posted. Thank you.

Xxx
Anastasija

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Permalink Reply by Detlef Hebbel on March 7, 2009 at 8:31pm

Hi Anastasija.

How to become a travel agent or tour operator - easily?

I am joining this discussion a bit late, however here is my showcase. I immigrated some time ago from a heavily regulated country in Europe to New Zealand. After living 3 years in New Zealand I decided to become an inbound travel agent here. I left my top position in corporate IT business and just started...

And the best was: no regulations, no accreditation needed, no home agency, no nonsense. The important ingredients were a business plan, entrepreneurship, market research, some savings to compensate for the first season of little income, a sustainable niche market, communication skills to negotiate with suppliers, the will to learn and lots and lots of hard work.

This was all before the internet, with high investment into market research, marketing and advertising.

So why do you need a home agency for? Where do you need accreditations?

Nowadays, the internet is a great tool to support you in many of the above areas and to enable your dreams to become an independent OTA - Online Travel Agent.

You re able to design your own products and package them as required by your niche market. You should be able to source and negotiate transport, accommodation, activities and other service all by yourself. Airfares you probably have to leave outside your packages because of lack of access to ticketing.

How to work as a OTA or setting up an online travel agency in the UK
You can start with a, let us call it a 'remote virtual travel agent office application' on the internet: Design, package and publish your products, receive enquiries, compose quotations, communicate with clients, close the sale, raise invoices, control payment, communicate with suppliers, integrate with accounts, etc

I am not aware of the legal aspects in your country of residence, however, the above is a New Zealand showcase.

Questions I cannot answer:
What if you use a 'virtual travel agent office' application on a server located in an 'unregulated country' such as New Zealand, but you actually operate the client contacts, marketing and sales 'remotely' yourself on your internet connected computer in your country (or wherever you are)?

So again in a nutshell: Entrepreneurship, knowing what you are doing and being aware of legal consequences can be a pragmatic way to get to your dreams.

FYI: I did not choose a sustainable tourism niche market as I had to find out. I am now developing and hosting virtual travel office applications for travel agents and tour operators.

Cheers
Detlef

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Permalink Reply by Anastasija on March 8, 2009 at 3:48pm

Hi Detlef,

thank you for reply.

I am meeting with one of my friends who is an expert in all UK regulations, so by next week I will know more about the legal issues on the subject.

So, as I understood, you didn´t set up an Agency - you just communicated clients directly throuth telephone or personal contact, right?

I think that providing airline tickets through the website - it´s a big advantage in order to attract customers (so I need a Host Agency). On the other hand, exactly as you advising, i am developing a niche packages and going to negociate directly with the suppliers, so this business I am not sharing with the Host Agency - it´s mine, except the air trips.

My plan to register in UK is only because of low enough taxes and because I am here for now - so it´s easier to get things started. But I am moving a lot around the Globe, so in a couple of months I might be living in a different place. It doesn´t matter where do you operate from as long as you comply with the law. But I will know more about this next week.

Xxx
Anastasija

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Permalink Reply by Murray H on March 8, 2009 at 10:38pm

I do not see where you are going with travelocity - it is not, I would suggest, the right medium for what you are trying to do. Travelocity (part of Sabre) are excellent, it's just that I cannot see how a massive online agency will really give you what you want in terms of entreprenurial freedom. In any event don't they want fees? Further, one is a bit concerned about the moving about bit. Selling to the Great British Public (GBP) can be intensly frustrating. Apart from anything else, after the sheer amount of people taking peoples money and doing a runner, the GBP like to see some sort of stability and some sort of security for them. This can take various forms, the main ones being ABTA and ATOL.

Detlef, notwithstanding the regulations, such as they may be, in New Zealand, things are very different here. If you are going to sell package holidays to EEC residents, you need to have proper facilities in place to protect client's money. Doesn't matter how you sell or where you sell, what medium you use and you can live on the planet Zog. Sell a package to EEC residents = you must have protection. If your package involves flights, then you must have a bond and a licence from the UK Civil Aviation Authority, aka ATOL.

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Permalink Reply by Alex Mcnish on August 29, 2009 at 11:07am

Hi Murray
I would be interested in talking with you further about this agency business, i can provide my personal email, i would be interested in speaking with your agency in Wales.
cheers
Alex

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Permalink Reply by Moggers on September 11, 2009 at 2:15am

Hi Guys - really interesting post and discussion. would be intersted to see how far you got with this Anastasija.

I would be interested to talk with anyone about this further who might be able to advise.

I actually am looking to set up as a Travel agent ...but dont have much experience (apart from extensive flying myself!! ;-) ). there is a particular group that I would like to serve which is worldwide but lowish volume (and not the sort of places you can generally get packages to - but where i have good local knowledge or will know personally someone reliable who will).

I want to be able to sell flights therefore and not packages. I do have a day job but not sure how to go about this at all. There are millions of course one could attend but not sure which is required. I am not intersted in tours but it seems like this may be the route in.

Was also interested in Murray's idea - remote ' supervision' for relatively independent work - could you elaborate further?

I am completely new and so please shoot me if i get this completely wrong (virtually of course - unless you know where I live and in which case dont shoot me!!) - but happy to discuss over phone or email ...can you 'PM' me?? or is there another way of getting in touch?

cheers
moggers

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Permalink Reply by Danielle on February 5, 2010 at 6:29pm

hi i have been reading your discussion and i am in the same boat i am wanting to start up with a host agency but cant find any uk based free ones. i am still at the very begginning stage of starting out. i was just wondering what this american company is that you found and what they had to say?

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