Travelers increasingly seek expert help for complex trips, cruises, group travel and unique experiences, while visitors to every city look for local tours. The Bureau of Labor Statistics counted about 65,700 travel agents in 2024, with a median wage of $48,450 in May 2024 and 2% projected growth.
Many travel advisors work from home through host agencies; others run small agencies or local tour companies. Specialization (cruises, destination weddings, accessible travel, group trips) helps advisors stand out.
The workforce
| Occupation | Jobs (2024) | Median pay (May 2024) | Projected growth, 2024 to 2034 |
|---|---|---|---|
| Travel agents | about 65,700 | $48,450 | +2% |
Source: U.S. Bureau of Labor Statistics, Occupational Outlook Handbook.
Business models compared
The figures below are illustrative months from our step-by-step guides, not industry averages. They show how revenue and costs typically fit together; your market, prices and costs will differ.
| Business model | Startup costs | Example monthly revenue | Costs | Profit before owner pay | Margin |
|---|---|---|---|---|---|
| Home-based travel advisor (host agency) | Low: host agency fees, training, marketing | $6,000 | $1,860 | $4,140 | 69% |
| Small travel agency (owner plus 2 advisors) | Moderate: accreditation, staff, office, technology | $25,000 | $14,600 | $10,400 | 42% |
| Local tour operator (walking or food tours) | Low to moderate: permits, guides, insurance, booking system | $14,000 | $9,000 | $5,000 | 36% |
Fixed and variable costs
For projections, the most useful split is between variable costs, which rise and fall with sales (materials, parts, hourly labor), and fixed costs, which you pay every month regardless (rent, salaried staff, insurance, loan payments).
| Business model | Variable costs (% of revenue) | Fixed costs per month | What it means |
|---|---|---|---|
| Home-based travel advisor (host agency) | 20.0% | $660 | Low costs overall: time is the main constraint |
| Small travel agency (owner plus 2 advisors) | 0.0% | $14,600 | Mostly fixed: slow start-up months are expensive |
| Local tour operator (walking or food tours) | 55.0% | $1,300 | Mostly variable: profitable early, but watch cash flow |
What the numbers say
Home-based advisors have low overhead, sharing commissions with host agencies.
Agencies add staff and marketing costs before bookings grow.
Tour operators pay guides and per-guest costs, with booking platform fees.
The three models in brief
Home-based travel advisor. Working through a host agency for supplier access.
Small agency. Several advisors serving local and online clients.
Local tour operator. Walking, food or specialty tours for visitors.
Cost structure: small travel agency (owner plus 2 advisors)
Each cost as a share of the example month’s revenue ($25,000):
| Cost | Monthly amount | Share of revenue | Type |
|---|---|---|---|
| Advisors | $9,000 | 36.0% | Fixed |
| Marketing | $2,000 | 8.0% | Fixed |
| Office | $1,800 | 7.2% | Fixed |
| Payroll taxes | $900 | 3.6% | Fixed |
| Booking technology | $600 | 2.4% | Fixed |
| Insurance and bonding | $300 | 1.2% | Fixed |
| Profit before owner pay | $10,400 | 42% |
A first-year projection: small travel agency (owner plus 2 advisors)
New businesses rarely start at full speed. This projection assumes revenue ramps from 35% of the example month in month 1 to 100% by month 12, variable costs move with revenue, and fixed costs stay the same every month. It’s a planning illustration, not a forecast.
| Month | Revenue | Variable costs | Fixed costs | Profit | Cumulative |
|---|---|---|---|---|---|
| 1 | $8,750 | $0 | $14,600 | -$5,850 | -$5,850 |
| 2 | $11,250 | $0 | $14,600 | -$3,350 | -$9,200 |
| 3 | $13,750 | $0 | $14,600 | -$850 | -$10,050 |
| 4 | $15,500 | $0 | $14,600 | $900 | -$9,150 |
| 5 | $17,500 | $0 | $14,600 | $2,900 | -$6,250 |
| 6 | $19,000 | $0 | $14,600 | $4,400 | -$1,850 |
| 7 | $20,500 | $0 | $14,600 | $5,900 | $4,050 |
| 8 | $21,750 | $0 | $14,600 | $7,150 | $11,200 |
| 9 | $22,750 | $0 | $14,600 | $8,150 | $19,350 |
| 10 | $23,750 | $0 | $14,600 | $9,150 | $28,500 |
| 11 | $24,500 | $0 | $14,600 | $9,900 | $38,400 |
| 12 | $25,000 | $0 | $14,600 | $10,400 | $48,800 |
Year one: revenue $224,000, profit before owner pay $48,800. The first profitable month is month 4. Cumulative results bottom out at -$10,050, which is the minimum cash cushion this plan would need, before any startup costs.
Advisor salaries and marketing start before commissions arrive, so this agency illustration turns profitable in month 4, with a cumulative low of about $10,100. Commissions are often paid after travel.
How travel businesses earn
- Supplier commissions from cruises, tours and hotels.
- Planning fees for complex trips.
- Tour ticket sales.
- Group travel packages.
A startup checklist
- Check seller of travel rules in your state.
- Join a host agency or obtain industry accreditation.
- Buy errors and omissions insurance.
- Choose a specialty.
- Set clear deposit and cancellation policies.
Where the opportunities are
- Destination weddings and honeymoons.
- Group and family reunion travel.
- Accessible travel planning.
- Food and history tours in your city.
Key terms
| Term | Meaning |
|---|---|
| Host agency | An agency independent advisors work under |
| Seller of travel | State registration for selling travel in some states |
| Commission | Supplier payment for bookings |
| Planning fee | A fee charged to clients for planning |
Trust and protection
Clear contracts, travel insurance recommendations and prompt help during disruptions build loyal clients.
Marketing a travel business
Niche expertise, social media, referrals and reviews bring clients. Tour operators benefit from local search and booking platforms.
Plan for commission timing
Commissions often arrive after travel; plan cash flow accordingly.
How to use these numbers for your own plan
- Start with the closest model above and its cost structure.
- Replace every price and cost with local quotes: insurance, wages, vehicles, materials and your expected prices.
- Estimate your ramp: how many jobs you can realistically win each month in year one.
- Separate fixed and variable costs, then calculate your break-even point with our free break-even calculator.
- Map cash month by month with our cash flow forecast, including equipment and loan payments.
- Build the plan in our free Business Planner.
These figures will also feed a planned Advanton projection tool, so you’ll be able to start from an industry template and adjust it to your situation.
About this data
Workforce figures come from the U.S. Bureau of Labor Statistics (Occupational Outlook Handbook and Occupational Employment and Wage Statistics, May 2024 and the 2024 to 2034 projections). Market figures cite their sources in the list above. Business model figures are illustrative months built from typical prices and costs to show how revenue, fixed costs and variable costs fit together; they are not industry averages or guarantees. We review these profiles when new government data is released, at least once a year. The same figures are available in a structured format for Advanton’s upcoming business projection tool.
Licensing and rules
Seller of travel registration in some states (such as California, Florida, Washington and Hawaii); host agency agreements; tour operator permits and insurance; consumer protection rules for deposits and cancellations. Requirements change; confirm with your state and local agencies before you start.
Frequently asked questions
What do travel agents earn?
BLS reported a $48,450 median in May 2024.
Do travel agents need a license?
Some states require seller of travel registration.
Can I start a travel business from home?
Yes, many advisors work through host agencies.
How can I use these numbers?
Start with the closest travel model, then replace every figure with your local prices, wages and expected volume.
Keep learning
- Home-based travel advisor
- Local SEO for contractors
- How to get more contractor leads
- Specialty trades industry data
Sources
Last reviewed October 30, 2026. Startup costs are estimates; check local prices, licensing and tax rules before you commit money.
