How Much Does It Cost to Become a Travel Agent?

Becoming a travel agent is an exciting career choice for those who have a passion for travel and a desire to be their own boss. As the travel industry rebounds after the pandemic, there are abundant opportunities to realize your dream of becoming a travel agent. However, it’s essential to understand the costs involved in setting up a travel agency. In this blog post, we’ll break down the expenses, including education, training, licensing fees, insurance costs, and marketing budgets, to help you make an informed decision. We’ll also explore various opportunities for entering the travel industry and the potential for success in each path.


To start a career as a travel agent, you don’t need a specific education, but having some geographical knowledge and a good grasp of math and English can be beneficial. If you wish to enhance your knowledge and skills, there are educational options available:

  • University Degrees: Pursuing a degree in tourism or hospitality from a college or university can be an excellent choice. The cost of a university degree may be around £10,000, and it typically takes about four years to complete. Many students opt for student loans and grants to make it more affordable.
  • Online Courses: Online courses offer flexibility and cover various aspects of the travel industry. Organizations like the International Air Transport Association (IATA), Reed, and the Association of Learning provide courses that can range from as low as £12 to approximately £390 for more comprehensive programs. Online learning allows you to study at your own pace.


To further enhance your travel agency skills, consider enrolling in training programs. Several recognized courses are available online:

  • IATA offers courses in travel and tourism, including social media marketing and geography related to travel planning, with prices around £100.
  • Reed offers industry-recognized courses with costs starting at £12, and discounts are often available for bundled courses.
  • The Association of Learning offers a year-long Tourism Management course for approximately £390, payable in monthly installments.

Licensing Fees: 

The travel industry is regulated, and obtaining the right licenses is crucial to protect both your business and customers. The type of license you need depends on the type of holidays you plan to sell:

  • ATOL (Air Travel Organiser’s Licence): This UK scheme offers financial protection for air travel package holidays and flight-only bookings, and the small business ATOL costs £1,223.
  • ABTA (The Travel Association): ABTA covers UK travel agents and offers financial protection for non-flight package holidays. The application fee is £750 plus VAT, with a joining fee of £1,250.
  • Travel Trust Association: TTA provides complete financial protection for customers, and membership fees vary depending on the package you want, with an application fee of £150 plus VAT.

Insurance Costs: 

Insurance is vital for protecting your travel agency in case of legal action. Consider these insurance options:

  • Public Liability Insurance: If you plan on running a travel agency from home and selling holidays online, standard public liability insurance may not be necessary. Many insurers offer online retail policies with data breach cover.
  • Professional Indemnity Cover: This insurance is essential to cover costs if a customer or holiday company brings legal action against you, such as compensation claims due to a ruined vacation.

Marketing Budgets: 

To successfully promote your travel agency, you’ll need to allocate a budget for marketing. Here are some considerations:

  • Social Media: Social media platforms like Facebook provide business pages and advertising options for a fee. Utilizing these platforms can help you reach a broader audience.
  • Word of Mouth: While word of mouth is a valuable free advertising asset, you’ll need to invest in marketing initially to grow your business.

Opportunities to Become a Travel Agent: 

Opportunities to Become a Travel Agent

There are several paths to becoming a travel agent, each with its own benefits and challenges:

  • Independent Travel Agent: Starting your own travel agency from scratch can be challenging, with no guarantee of recouping your initial investments. Over 50% of independent businesses close within the first two years.
  • Host Agency Partnership: Partnering with a host agency reduces risks and provides access to their customer base and industry knowledge. It offers independence with support.
  • Partnership with an Experienced Agent: A partnership can be an option, but it may lead to difficulties, particularly in financial matters.
  • Travel Franchise: Joining an established franchise is an excellent choice for newcomers to the travel industry. Franchises offer support, guidance, and discounts on licenses and insurance, making it easier to start earning quickly.

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Do I need a degree to become a travel agent? 

No, a specific degree is not required, but having knowledge in geography and relevant subjects can be beneficial. You can also choose to take online courses and training to enhance your skills.

What are the different types of licenses required for a travel agent? 

The main licenses for travel agents in the UK include ATOL (for air travel package holidays), ABTA (for non-flight package holidays), and TTA (providing complete financial protection for customers).

Is it necessary to have professional indemnity insurance as a travel agent?  

Yes, professional indemnity insurance is essential to cover costs in case of legal actions brought by customers or holiday companies. It protects you from compensation claims.

What is the advantage of joining a travel franchise? 

Joining a travel franchise offers a ready-to-go travel agency, support, and guidance. Many franchises also provide discounts on licenses and insurance, allowing you to start earning more quickly while benefiting from their established reputation.

Is social media marketing necessary for a travel agency? 

Social media marketing can be a valuable tool for promoting your travel agency. While posting on social media is generally free, investing in advertising space on platforms like Facebook can help you reach a broader audience and grow your business.


Becoming a travel agent can be a fulfilling career, but it comes with its set of costs and challenges. Understanding the expenses involved in education, training, licensing, insurance, and marketing is essential for a successful start. Additionally, exploring the various opportunities within the travel industry, from going independent to joining a franchise, can help you make an informed decision and set yourself up for success in the dynamic world of travel agency.

Table: Estimated Costs to Become a Travel Agent

Expense TypeCost Range
Education£0 – £10,000
Training£12 – £390
Licensing Fees£1,223 – £1,250
Insurance CostsVaries
Marketing BudgetsVaries