Here’s how to start a UK travel business in 2026

Ever dreamed of turning your passion for travel into a thriving business? You’re in the right place. 

It’s a great time to start a travel agency in the UK. UK travellers made an estimated 94.6 million visits abroad in 2024 and spent an estimated £78.6 billion doing it. These numbers are predicted to increase into 2026.

Whether you’re imagining yourself planning luxury honeymoons in the Caribbean, organising staycations in the UK, or managing group adventures to the other side of the planet, starting a travel agency is surprisingly accessible these days. In fact, many successful travel business owners operate from home.

Ready to pack your bags and jump on a one-way flight to business success? We’ll walk you through everything you need to know about starting a travel business, from choosing your niche to costs and what licences you might need. 

Fasten your seatbelts. Let’s go.

In this article

• What types of travel businesses are there?
• How to start a travel agency
• What tools do I need to start up a travel agency?
• How much does it cost to start up a travel business?
• What insurance do I need to start a travel agency?
• Do I need a business licence to start a travel agency?
• Do I need a certification to start a travel business?
• Should I buy a travel agency franchise?
• Starting your travel agency

The brilliant thing about the travel industry is that there’s genuinely something for everyone. You’re not limited to one type of approach. You can shape your business around what excites you most and how you want to operate. 

Let’s break down your three main options:

1. Traditional travel agencies: Here, you act as the middleman between travellers and suppliers like hotels, airlines, and tour operators. You earn commission on bookings whilst helping clients navigate the overwhelming world of travel planning. These days, most agencies operate online rather than from high-street premises, which means lower overheads and more flexibility for you.

2. Travel agency franchises: If you start a travel agency franchise, you’re buying into an established travel brand with proven systems, training, and supplier relationships already sorted. Think of it as having a head start — the branding, booking systems, and support network come ready-made. But there is a trade-off: you’ll pay franchise fees and follow their business model rather than building something entirely your own.

3. Independent travel agents: Here, you work under a host travel agency’s licence rather than setting up your own company. This is often the quickest way to start earning because you can begin selling holidays within weeks. The host agency handles the complicated bits like licensing, supplier relationships, and system admin, while you focus on finding clients and planning trips.

Now, here’s where things get interesting — finding your niche. 

The most successful travel businesses don’t try to be everything to everyone. It’s about serving a particular audience. For example:

• Corporate travel focuses on business trips, managing everything from flight bookings to conference arrangements
• Luxury travel companies cater to high-end clients looking for bespoke, exclusive experiences
  Adventure travel specialists organise treks, wildlife safaris, and other adrenaline-pumping expeditions

The UK market is particularly strong right now. Tourism directly contributed £58 billion to the UK economy in 2023 and supported 1.2 million jobs. Plus, British residents made 94.6 million trips overseas in 2024, a 10% increase from 2023, showing strong demand for travel services.

Starting a travel agency online means you can tap into this growth and perhaps even offer UK travellers something a bit different because there’s also an increasing appetite for specialised travel services. 

Think: medical tourism, wellness retreats, accessible travel for people with disabilities and sustainable eco-tourism. These niches are growing quickly as travellers demand more unique experiences. 

But do they have the money to pay for it? Yes, they do. Recent research from Aviva says that UK holidaymakers have boosted their travel budgets, with four in ten travellers planning to spend almost £3,000 more on average for more personalised, experience-focused trips. For example, those that prioritise unique activities like cooking classes.

Before you pack up and fly away, we need to look into the practical stuff. Starting a travel agency isn’t as daunting as it might seem but it does require some strategic thinking and careful planning. 

Firstly, you need to decide what kind of travel business you want to run. Forget (for a moment) about what sounds the most fun — you need to focus on finding that sweet spot where your interests, expertise, and market demand all overlap.

To help, you could start by asking yourself some honest questions:

1. What type of travel genuinely excites you?
2. What sort of skills and expertise do you have? Are you the type of person who knows every boutique hotel in the Cotswolds, or are you more comfortable planning multi-stop Asian adventures? 
3. What experience or knowledge do you already have that could give you an edge? For example, maybe you’ve worked in corporate events and understand everything there is to know about business travel. Or perhaps you’re an experienced scuba diver who could become the go-to person for diving holidays.

Then, research the market, your competition, and your customer and answer these questions:

1. Who are your top five competitors?
2. What services are oversaturated? What gaps exist? 
3. Who do you want to work with? Consider your target audience. For example, would you like to work with busy professionals? Or families looking for fun school holiday trips? 

Think about what you could offer that’s different. Your niche will shape everything else that follows, from your marketing and your pricing to even your working hours. Make sure it feels right.

A solid business plan details your why, what and how: 

• Why you’re setting up this business — your experience, passion, and skills
• What you’re offering — details of your products and services 
• How you deliver those products and services — details about your operations, your processes and logistics

It’s a roadmap for making your business work and hopefully turn a profit. Every business should write a business plan. And you’ll definitely need one if you want to apply for funding or investment down the line, as it’s something lenders will ask to see. 

So, best get it right! But, first of all, you need to decide on your business model.

Which model is right for you?
In the UK, travel agency models range from large high–street chains (like Hays Travel) and smaller local agencies, to fully online businesses (like Expedia). 

There are also home–based travel agents, focusing on retail, corporate, and niche travel holidays (like luxury, adventure, and eco-travel), and booking service providers, which is where you run a platform that directs customers to suppliers. Many first-time travel agency founders fall into these three categories:

• Corporate or business travel: This is where you manage travel for companies and their employees, including flights, hotels, and expense tracking
• Niche agents: Where you focus on specific types of travel, like cruises, wellness, or voluntourism
• Tour operators: This is where you create and sell your own packages (flights + hotels + activities)

Your business plan should include:

• Executive summary: A concise overview of your plan, including key highlights
• Personal description: Explain why you are the right person to run this. Focus on your relevant skills, your professional background, and the why behind your startup
• Company description: Outline the nuts and bolts — your business name, legal structure (e.g. limited company), and the core mission you’re aiming to achieve
• Products and services: Detail what you are selling. More importantly, explain the specific problem your product solves for your customers
• The market: Show you’ve done your homework. Define your ideal customer persona and explain the current trends in the UK industry you’re entering
• Competitor analysis: Identify who else is doing something similar. Be honest about their strengths, but state what your unique edge (USP) is
• Marketing strategy: How will people find you? Map out which channels you’ll use (like Instagram, local SEO, or networking) to land your first ten customers
• Operations and logistics: Describe the day-to-day. Think about where you’ll work, what software you’ll use, and which suppliers you’ll rely on to keep things moving
• Costs and pricing: List every overhead, no matter how small. Then, explain your pricing strategy, including your fee structure and how you’ll earn commission  

Also, many successful agencies charge service fees. This can range between £150 to £500 per booking, and it’s included to make sure your agency stays profitable on complex or niche itineraries that take significant time and expertise to put together.

• Financial forecast: This is your projection for at least the next 12 months. Map out your expected sales versus your expenses to see when you’ll hit your break-even point
  
• Backup plan: Consider the what-ifs. If your primary business idea doesn’t take off, how will you pivot your skills or services to stay profitable?

Time to make things official. Most travel agencies operate as limited companies because it offers personal liability protection and look more professional to clients and suppliers.

To register a limited company, you need to apply to Companies House. You can do this yourself on the Companies House website (there’s a £100 fee), or you can use an official company formation agent like Countingup. Our company registration service is quick, easy and is completely free when you spend £100 on your new Countingup card.

As part of the company registration process, you’ll need to choose your company name. You can use our free company name availability checker to see if your preferred name is available. 

You also submit two sets of information:

1. Company information: This includes your company name, registered office address, and a description of your company’s activities. It involves finding and submitting your company’s SIC code — it’s straightforward, don’t worry. A SIC code is basically a category code for the government so they know you’re a travel agent and not a plumber. For travel agency activities, the main UK SIC code is 79110
2. Personal information: This includes your name, address, date of birth and a valid form of ID

The company registration process can sometimes take a few days to a couple of weeks. But with Countingup, your new travel business will be up and running within 24 hours. Our team will handle the entire application for you, making sure your new travel business is set up correctly from the beginning.

Congratulations, you’re registered! But you’re not quite ready to start selling holidays just yet. There’s some essential groundwork to lay first.

• Booking systems and software: This is your bread and butter. You’ll need a customer relationship management (CRM) system to track leads and client interactions, booking software to process reservations, accounting software and a business current account to manage invoices and expenses, and a professional website that showcases your services and allows enquiries (or direct bookings)

• Securing supplier relationships: Reach out to tour operators, hotel groups, airlines, and activity providers. Join a travel consortium if you can, like the Elite Travel Group or Advantage Travel Partnership, because they can negotiate better rates and commission levels than you could get by yourself

• Insurances and licences: Yes, these are the less exciting but they’re just as essential. We’ll dive deeper into these in the sections below, but know that you’ll likely need professional indemnity insurance, and possibly ATOL licensing if you’re selling flight-inclusive packages

Well done, launching a travel business is a huge achievement. But launching is just the beginning — now comes the real work of growing your business! Here are a few things to start thinking about as you open your doors:

• Initial marketing: Focus on building a strong social media presence (Instagram and Facebook work brilliantly for travel), create valuable content that showcases your expertise, network within your community, and don’t be shy about telling everyone you know what you’re doing. Word of mouth remains one of the most powerful marketing tools for new travel businesses

• Your finances: Travel agencies often receive customer payments months before paying suppliers (because travel is often booked ahead of time), which creates positive cash flow for your business. But it means you need to carefully manage your financial responsibilities — because this money isn’t yours until the trip is completed. Since you’re holding customer funds, they need to be safeguarded in trust accounts that keep it separate from your business finances

• Join a professional body: You might want to consider joining professional travel industry bodies like ABTA (Association of British Travel Agents) or the Travel Trust Association. This isn’t a legal requirement at all, but membership can improve your business’s credibility, and you can access valuable support from travel industry experts

And finally, it’s important to keep learning. The travel industry moves quickly — destinations rise and fall in popularity very quickly, regulations change, and new suppliers enter the market. Stay curious and keep developing your knowledge. 

Let’s talk tech. If you want to run a travel agency online in 2026, you’ll need to manage multiple systems and platforms. 

But most of the systems and platforms you’ll need don’t require a big upfront investment. Here’s what you’ll realistically need:

• Customer relationship management (CRM) software: You need a reliable CRM to track leads, manage bookings, organise customer information, and follow up on enquiries. There are plenty of tools out there, ranging from HubSpot (HubSpot has a free option) and ZohoCRM to more specialised platforms like TraviYo and TravelJoy

• Booking and reservation systems: These systems connect you with suppliers and let you process customer bookings quickly and efficiently. Many host agencies provide these if you’re going down the independent travel agent route

• Accounting and invoicing software: Essential for managing your business finances, tracking commissions, and handling tax requirements. Consider opening a dedicated business current account that integrates with your other tools and comes with automated accounting assistance

• Professional website: Your website needs to have a booking enquiry system at a minimum. Many travel agencies use WordPress with travel-specific plugins like WP Travel Engine and Travel Agency Companion, but custom-built website options are out there, too

• Email marketing platform: It’s essential that you keep in touch with your current and past customers. Newsletters, special offers, and relevant content like travel guides help to retain customers and keep your business top of mind when they book their next holiday. CRM systems like HubSpot come with built-in email marketing functionality, but there are also travel agency-specific options like Uni One

• Video conferencing software: You need a reliable way to speak to customers, suppliers and other partners all over the world. Software like Zoom is easy to use, and your contacts can join your calls without an account 

• Payment processing system: When it comes to payments, travel businesses face a unique set of challenges: You need to accept various global currencies and local payment methods to suit international travellers, but you also have to manage the ‘delivery gap’ — the time between your customer booking the trip and going on the trip. During this time, cancellations or amendments can occur that affect the final amount they pay

When choosing a payment provider, look for one that offers fraud protection, multi-currency support, and is easy to slot into your website. There are lots of options out there, but Stripe is a reputable payment provider for travel agencies. 

All this tech might sound like a lot, but you can start with the essentials and add more sophisticated systems as your business grows. 

The amount it costs to start a travel business depends on which business model you choose and how you approach it. 

But let’s break down realistic figures so you can get an idea of budgets. Here’s what you’re looking at for typical startup costs:

Expense	Traditional travel agency	Travel agency franchise	Independent travel agent
ATOL licensing and bonding (a financial safety net)	£50,000+ minimum bond (if selling flight packages), plus £1,400–£2,400 application fee	Covered by franchisor	Covered by host agency
ABTA membership	£750 application fee + £1,250 joining fee, plus £1,500–£5,000+ annual fees	Often included in franchise fee	Covered by host agency
Franchise fees	N/A	£3,000–£15,000 upfront	N/A
Technology	£5,000–£15,000 (website, booking tools and other software)	£1,000–£3,000 (some provided by franchisor)	£150–£500 (basic setup)
Office and equipment	£3,000–£10,000 (or minimal if working from home)	£1,000–£3,000 (usually home–based)	£500–£1,500 (laptop, phone)
Insurance	£1,200–£4,000 annually	£800–£2,000 (some covered by franchisor)	Often included in host fees
Working capital	£10,000–£25,000	£5,000–£15,000	£2,000–£5,000
Ongoing fees	Annual membership renewals	5–20% commission split + £99–£299 monthly fees	£50–£150 monthly + 20–40% commission split
Total costs	£70,000–£100,000	£10,000–£35,000	£500–£5,000

As you can see, your chosen business model impacts your initial investment. 

• Traditional travel agencies give you complete control and ownership but require the highest upfront costs, particularly if you need ATOL licensing. The minimum bond requirement (a financial safety net that covers customer refunds or repatriation if your firm fails) is £50,000, though this can sometimes be reduced over a period of four years 

• Franchises sit in the middle — you’re paying for an established brand, proven systems, and ongoing support, which reduces some costs. Though it does come with franchise fees. Franchises like The Travel Franchise start from around £3,000 + £299 monthly fee for their Lite package, but more established brands may charge more

• Independent travel agents working under host agencies have the lowest barrier to entry because you’re essentially renting access to someone else’s infrastructure and licensing

Honestly, not really. But you can start a travel business with very little money.

If you join a host agency, you’re looking at £500–£5,000 in startup costs. This is dramatically less than setting up a fully-fledged traditional travel agency.

The host agency handles (and often pays for) your licensing, supplier relationships and back-office systems while you focus on finding clients, booking travel, and earning commission. 

Many host agencies charge a monthly fee (typically £50–£150), and they take a cut of your commissions, but this is still a far cheaper (and also less risky) way to set up your business. 

The franchise route sits somewhere in the middle, with costs varying depending on which franchise you choose. Some travel franchises start from as little as £1,000, though more established brands charge significantly more. It’s a good idea to do some research before diving in.

Regardless of the business model you choose, there are smart ways to reduce your initial costs. Some general bootstrapping tips include: 

• Work from home: Commercial rent and business rates in the UK are huge. WFH is the #1 way to keep your overheads very low
• Use free or low-cost marketing channels: Think social media, content marketing, and networking rather than paying for expensive advertising
• Use your existing tech: You don’t need a business laptop or the latest phone. Use what you have until you need to upgrade
• Smart banking: Use a business current account that automates your bookkeeping. This can save you a lot of time and money 

More money-saving tips for traditional travel agencies: 

• Use a trust account instead of a bond: UK law requires you to prove that your customers’ money is safe if your business falls into debt. Usually, this means paying for an expensive insurance bond, but a cheaper alternative is to join a group like the Travel Trust Association (TTA). They provide a secure, separate bank account to hold customer funds, which meets legal requirements for a fraction of the cost

• Don’t hire — outsource: Hiring a specialist travel consultant for a few hours to help you with your initial applications, process and systems is a lot cheaper than hiring a full-time employee

More money-saving tips for franchises: 

• Say no to the extras — for now: Franchises often offer premium marketing packages or automated email tools. You can skip these for the first six months and do your own marketing for free on social media until you’ve made some sales
• But say yes to everything else: You’ve paid for the franchise, and this usually includes access to training and resources. Use every bit of it! The more you learn from the franchise, the less you’ll have to spend on outside courses later 
  

More money-saving tips for independent agents:

• Use the tools they give you: Your host travel company gives you access to many of the tools they use, like booking systems and itinerary organisers. These might not be the best tools and platforms on the market, but they’re included in your fee, so don’t spend money buying extra apps or software until you need them
  
  Use your network: Your first five customers will likely be people you know. Use your personal social media accounts, like Instagram or TikTok, to tell your story and promote your new business — it’s the most effective free marketing you can do

In the UK, the only mandatory insurance for a travel agency is employers’ liability insurance if you hire any staff. 

But to protect your business from financial risks, you should consider other insurance policies. For most travel businesses, this includes two essential types of cover: 

• Professional indemnity insurance: This protects you if you make a mistake that causes financial loss to a client. For example, if you book the wrong travel dates or don’t advise about visa requirements. Given how complex travel arrangements can be, you should definitely budget for this insurance — annual premiums typically range from £1,200 to £4,000
  
• Public liability insurance: This covers you if someone is injured or their property is damaged because of your business activities. Although you’ll likely work from home, you never know what situations might arise — and many suppliers won’t work with you without it

Beyond these essentials, you should also consider:

• Business interruption insurance: This covers lost income if something prevents your business from trading
• Cyber liability insurance: This is increasingly important given the amount of client data you’ll hold
• Key person insurance: Important if your business depends heavily on you personally — for example, if you fall ill, this insurance provides your business with a financial safety net

For clarity, there’s no official travel agency licence in the UK. But there are two big names you need to know: ATOL and ABTA. 

Think of them like a safety net for your customers’ money. Here’s how they affect your business: 

ATOL 
If you’re selling a holiday that includes a flight, you legally must have ATOL protection. It’s issued by the Civil Aviation Authority and ensures that if your business (or the airline) goes bust, your customers aren’t stranded abroad or don’t lose their money.

• The rule: Selling a flight + a hotel? You need ATOL
• The exception: If you’re only booking a hotel for a client and they’ve bought their own flights separately, you don’t need it

There are also different types of ATOL protection depending on your business model: 

• A small business ATOL covers you if you’re selling fewer than 500 flight-based holidays per year
• A franchised ATOL covers you if you’re part of an approved franchise selling up to 1,000 packages per year 

The ATOL licensing process typically takes between eight and twelve weeks. As we covered in the cost section, as part of the licensing application, you need to show that your business has sufficient financial resources (bonding). These initial bonding requirements start around £50,000.

ABTA 
Unlike ATOL, ABTA is a professional body, not a legal requirement. However, it’s the gold standard for trust in the travel industry. It covers holidays that don’t involve flights — like cruises, rail tours, or coach trips.

• The rule: There is no real rule here, but putting the ABTA logo on your website is a quick way to build trust with customers and suppliers

Because the ABTA logo is so well-known and respected, it can improve how your business is perceived — so it’s worth getting. 

Beyond ATOL and ABTA, there are several key industry regulations that influence how travel businesses operate. Let’s look at them now:

• Package travel regulations: These apply to anyone selling package holidays. These regulations set out your responsibilities for customer information, cancellation rights, and financial protection. You can get further guidance on package holiday regulations on the government website 

• Consumer Protection from Unfair Trading Regulations Act (2008): This act works to protect customers from misleading advertising and unfair business practices. You must be honest and transparent in all your communications with customers. It’s a good idea to read the full act before trading and research consumer protection guidance for businesses

• GDPR: This sets out how you collect, store, and use customer data. As a travel business, you’ll be handling loads of personal information like names, addresses, passport details, payment information — so data protection compliance is really important 

• Consumer Rights Act (2015): This gives customers clear rights when buying services from you, including the right to expect services performed with reasonable care and skill

Generally, complying with these regulations is best practice. If you don’t, your business might receive a fine or legal action. If you’re unsure about any aspect of these industry regulations, it’s worth getting professional advice from an industry expert.

Officially no. There’s no legal requirement to hold specific qualifications or certifications before you can start selling holidays. 

You don’t need a degree in tourism or any particular credentials to set up shop. 

Generally, the travel industry is very accessible, but that said, professional certifications can be valuable — both for your own knowledge and for customers. Several respected qualifications exist:

• IATA offers various travel and tourism courses, including specialist training in ticketing, geography for travel planning, and social media marketing for tourism. These online courses typically cost around £100 and can be completed at your own pace

• AITO doesn’t provide certifications but offers valuable guidance and support to its network of members. Joining demonstrates commitment to quality and professional standards

• Reed offers industry-recognised courses starting from as little as £12, whilst more in-depth programmes like Tourism Management courses from the Open University start from around £350

The travel world has its own language, systems, and way of doing things, so it’s good to know how global booking systems work, the ins and outs of fares and ticketing, and the visa requirements for different destinations.

Franchises aren’t for everyone, but they do offer some genuine advantages if you’re new to the travel industry or want to start your business quickly. But, of course, there are pros and cons. See what you think:

Pros and cons of buying a franchise:

Feature	Pros	Cons
Branding	You get instant credibility through an established name	You’re tied to the franchise’s reputation. If they suffer, you do too
Setup and systems	You can use established booking and marketing systems	There’s less flexibility — you must follow their specific rules and standards
Training	You get full support and training included — perfect if you’re new to the industry	Training will follow the franchise’s standardised approach — you might feel limited if you want to specialise
Earnings	Higher commission rates with top suppliers have already been negotiated for you	The ongoing franchise fees could impact your overall profit margins
Marketing	You get access to ready-made campaigns and professional materials	You’ll have limited creative control over your own brand identity
Community	You can access a network of fellow business owners for advice and support	The upfront franchise fees can be a significant initial investment — for many, this is hard to budget for

So, should you buy a travel franchise?  Ask yourself these questions: 

• Do you want to start with a proven business model and expert guidance?
• Do you want to start earning quickly with minimal setup time?
• Do you prefer structure and support over total independence? 

If you answered yes, starting a franchise travel business could be for you. 

However, if you have strong ideas about your niche and business approach, if you’re experienced enough to build supplier relationships yourself, or if you want maximum flexibility in how you run your business – starting an independent agency might suit you better.

Or if you prefer something in the middle, joining a host agency gives you the best of both worlds: professional support and your own brand independence. 

So there you have it! Everything you need to know about how to start a travel business in the UK. Remember the key steps: 

• Identify your niche
• Pick your model
• Register your business
• Secure protection
• Set up your travel website

If you’re ready to make this happen, Countingup can help. Our company registration service simplifies the Companies House application process — your new travel business will be up and running within 24 hours. 

Once you’re registered, you could use ourbusiness current account to manage your business finances, track income and expenses and handle the admin that comes with running your own travel company.

In the meantime, the exciting world of travel is waiting. Can we come with you? 

Yes. Despite online competition, travel agencies are thriving. In 2026, many UK travel agents earn commissions of 10–20%, with successful niche specialists earning significant annual profits. This is partly due to travellers demanding expert advice to help create and navigate personalised holidays. 

Absolutely. Most new UK agents start from home to keep costs low. By joining a host agency, you can access all necessary industry licenses (like ATOL) and booking systems for a small monthly fee. You just need a laptop, a reliable internet connection, and a quiet space to work.

Yes. 2025 was a boom year for travel, with UK consumers prioritising holiday spending over other luxuries. With low-cost entry models now widely available, it’s a low-risk way to build a flexible business that benefits from consistent high demand — and if you can offer a niche (like wellness retreats or adventure travel), that’s even better.