How Much Do I Need to Start a Travel Business?

Let’s be plain for a second, if you want to start a travel business it’s going to cost a decent amount of money. Some people will be established enough in their current job to fund that business on the side to start. Some people will just be relatively well off to be able to spend that money without too much discomfort. Some people will make estimations and save up to get started.

Regardless of how you find the money to start a travel business, the beginning costs will seem a little daunting. Depending on what type of travel business you want to run as well, the costs can vary. So, let’s discuss it.

What Will You Need to Pay For If You Start a Travel Business?

First, let’s get an idea of what you need to investigate further when you’re starting out. Whatever type of travel business you’re looking to run, these are some things you’ll need to take in to consideration when determining your costs and how you want to distribute your budget.

1. ATOL – if you are looking to sell flights as part of your business, you will need to determine if you need an ATOL and what kind. At PTS, this costs £942 at a minimum.
2. Data Protection Fees – in order to comply with the GDPR, you need to pay a data protection fee when you get started, this could also apply to some other legal costs depending on what you intend to sell.
3. Financial Protection – under the Package Travel Regulations, you must have a viable form of financial protection. This could be through bonding, insurance, or a trust account like PTS, all of these will cost money, though it depends somewhat on the provider and the type of protection you choose.
4. Licenses – again, this relies somewhat on the niche you intend to sell in, but when you have that in mind, it’s important to check you have all the proper licenses to do so legally.
5. Registering Your Business – if you choose to register as a Limited Company, this will most likely inccur more legal costs, as you have a higher degree of protection.
6. Insurance – if things like Liability Insurance are required, it’s important to do your research to get your business off on a stable foot.

These are just a few of the basics that you’ll need to keep in mind as your start writing up your business plan. This is part of why plotting out your costs for a few years ahead is also important when you start a travel business. The first year or so may be the most expensive, so you need to have a good plan in mind for how you will distribute your budget.

What Type of Travel Business Do You Want?

The type of business you run will affect how much you need to get started. If you just want to start a travel business, you’re going to need to figure out the details of what you want first.

This includes if you want to be a travel agent or a tour operator, if you want to work for a consortium or be independent from the beginning, and more. But for now, let’s get a general picture of how much it could cost you to start a travel business in a few larger categories.

Independent

If you would like to work entirely online and from home, but remain independent, this does include a lot of responsibility, but it does cut costs quite significantly. If you’re working from home, you don’t need to rent an office space, you may not need to hire employees, and your range of customers isn’t as limited as if you establish yourself with a shop.

Working from home could cost around £1000 – £5000 depending on if you need some thing such as ATOL. If you want to start out with a budget for marketing, a website, and professional software included however, this price could more than double to over £10,000.

This includes the necessary tech, paying for a website and domain, a booking system, the insurance you will need, industry memberships, extra accredition if you wish to pursue it, and the basics mentioned above.

Consortium

If you would like to work under a larger franchise to start with, this price can vary a bit more, but a lot of the smaller points on the check list could be taken care of for you.

For example, if you decide to work under a homeworking business, then most of these setup costs will be part of one larger price. Depending on how involved you want the consortium to be, the cost can vary, but for some professionals that want to start a travel business, they prefer to pay more for an easier start than pay less to do everything themselves, since this can be stressful.

To sum up, starting under a franchise can cost around £5000 to £8000 depending on the consortium you choose. This usually includes training by the consortium as well as help to start a travel business and maintain it.

These costs are lower if you choose to work with a support system like PTS rather than a consortium. With PTS, you receive all the tools you need to get started (PTR compliance, trust account, software, ATOL, currency hedging, card payment services, suppliers, and more) without the restrictions or the need to hand over control of your business.

Because we don’t take over your business and just provide the tools for you to run it yourself, PTS is very cost-effective regardless of the stage your business is at.

How You Could Start a Travel Business with PTS in 2027

Starting a travel business isn’t just about the money though. If you’re taking those steps, it’s most likely that you’re really passionate about travel and helping people find the right holiday for them.

That’s exactly why we’re set to help travel businesses grow in 2027. Even if PTS isn’t the right fit for your business, we’d like to be supportive. Being a support system isn’t just about the businesses we provide those tools for, it’s about being a part of the industry. That’s why businesses can come to PTS for a no-obligations consultation, so you can talk out your options. That’s why our members only need to put in 3 months notice to leave if we stop being the right fit, no strings.

And that’s exactly why we want to giveaway some extra support in 2027. So why not kick things off big by giving away £5,000 to one lucky travel profressional? You can learn more about our big giveaway here: www.protectedtrustservices.com/5k-giveaway.

If you’re interested in seeing what else we have in store for 2027, check us out on Facebook, Instagram, and Youtube!

Or, if you’d like to learn more about starting your travel business with PTS, you can get in touch by emailing us at hellopts@protectedtrustservices.com or calling 0207 190 9988.