How to Start a Travel Agency Business in the UK: Full Guide

If you’ve ever caught yourself crafting detailed itineraries for friends, comparing flight routes for fun, or scrolling through travel TikTok at 2 am, dreaming up the perfect getaway, you might have the travel-agent itch.

And you’re not alone – the UK travel industry has made a confident comeback, with consumers now prioritising experiences, curated trips, and expert support over navigating endless comparison sites alone.

The result? Independent travel agencies, niche travel consultants, and boutique trip-designers are thriving.

It’s a great time to start a travel agency business in the UK, whether you’re a freelancer, a side-hustler testing the waters, or a full-time entrepreneur ready to specialise in an exciting market.

And the best bit? You can start from home, grow flexible revenue streams, and build a business rooted in passion.

Here’s how to achieve just that.

Key takeaways

• The UK travel market is booming and evolving
  Travel is back in full swing, with UK residents making millions of trips abroad and spending billions. Travellers want personalised adventures instead of cookie-cutter holidays, creating opportunities for niche and expert-led agencies.
• Expert advice saves clients time and stress
  Customers value agencies that handle the logistics, provide tailored recommendations, and offer financial protection through ATOL or other safeguards. A travel agent’s role as a trusted advisor is more important than ever.
• Set up correctly to protect yourself and your clients
  Choosing the right business structure, obtaining ATOL if necessary, securing insurance, and following GDPR requirements are essential. These steps prevent legal issues, build credibility, and ensure your clients feel safe booking with you.
• Start lean but plan for growth
  Initial costs can be modest with a home-based setup, but scaling up requires investment in tools, marketing, and potentially staff. Understanding startup and ongoing costs helps you price services appropriately and maximise profit margins.

Why start a travel agency business in the UK now?

Since the end of pandemic restrictions, UK travel has rebounded strongly. In 2024, UK residents made an estimated 94.6 million visits abroad, spending roughly £78.6 billion. On the inbound side, the country saw 42.6 million visits to the UK in the same year, with those visitors spending £32.5 billion in total.

This recovery isn’t just about the volume – the nature of travel is evolving. Travellers are opting for more complex, personalised itineraries: multi-destination trips, wellness retreats, adventure travel, and luxury escapes are on the rise.

There are several reasons why expert-led travel is gaining traction:

• Time efficiency: People want to avoid the stress of comparing hundreds of flights, hotels, and activities across multiple sites.
• Stress-free planning: Travellers are looking for someone they can trust to handle the logistics, so they can focus on enjoying the trip.
• Tailored advice: From budget-conscious backpackers to high-net-worth luxury travellers, clients appreciate recommendations that match their preferences, accessibility needs, or family situation.
• Protection and peace of mind: Given recent volatility – strikes, cancellations, and geopolitical instability – travellers value financial protection, refund policies, and ATOL-backed packages more than ever.
• Local insider knowledge: Clients no longer want generic holiday deals; they crave authentic experiences, hidden gems, and curated moments.

A modern travel agency isn’t just a middleman – it’s a problem-solver. By delivering expertise, clarity, and peace of mind, you can make yourself invaluable.

How to start a travel agency business in the UK: The only checklist you’ll need

Before you dive into sales, marketing, or designing dream itineraries, it’s essential to get the foundations of your travel business in place.

The UK travel industry is regulated, and setting up correctly from day one protects both you and your future customers. Here’s everything you need to know about setting up your perfect business.

What are the legal requirements?

In the UK, you can choose one of two main structures – a sole trader or a limited company. These are your main options at a glance:

Tip: ANNA can register your limited company with ease and open your business account in minutes, so you can get trading faster.

How do you stay compliant?

Travel agencies operate in a regulated environment, especially when flights or packages are involved. Here’s what to keep in mind:

ATOL (Air Travel Organiser’s Licence)

ATOL is a government-backed protection scheme run by the Civil Aviation Authority (CAA).
If your customer books a holiday that includes a flight, ATOL ensures they won’t lose their money or get stranded if the travel company suddenly stops operating.

Think of ATOL as your safety net – and your customer’s peace of mind.

You may need it depending on what you sell:

So, if your business includes flights, you’ll almost always need ATOL – unless you’re selling through someone who already has it.

Travel agency insurance

Travel agents deal with high-value bookings, complex arrangements, and personal data. Even a small mistake can become costly. That’s why having the right insurance is one of the smartest early steps you can take.

Here are your options:

Travel agencies aren’t legally required to hold insurance unless they employ staff. But in reality? If you’re selling trips worth thousands, insurance isn’t optional – it’s vital.

Data protection (GDPR)

Travel agents handle some of the most sensitive customer data:

• Passport details
• Dates of birth
• Contact information
• Payment information
• Medical/disability requirements
• Emergency contacts

To legally process this data, you must:

• Register with the ICO – Register your business with the ICO, and pay the annual fee (usually £40–£60).
• Store data securely – Use secure systems such as encrypted storage or a CRM to protect client information.
• Have a privacy policy – Provide a clear policy explaining how you collect, use, and protect personal data.
• Obtain consent where required – Get explicit permission from clients when using their data for marketing or other optional purposes.
• Follow data-retention rules – Keep personal data only for as long as you genuinely need it, then delete it securely.

How can you plan the costs?

Starting a travel agency in the UK is highly flexible. You can launch lean from home with minimal overhead, or scale up with a physical office, multiple staff, and premium tools.

Understanding your costs upfront helps you plan pricing, profit, and growth.

Typical startup costs

Your initial investment depends on your setup and the level of professionalism you want to convey. Below is a typical cost breakdown for a beginner travel agency in the UK:

Tip: You can start slow by working from home, using free tools, and delaying ATOL registration if selling non-flight packages or partnering with a host agency.

Ongoing costs

Once your agency is running, recurring expenses typically include the following:

Tip: Minimise your fixed costs at the start to boost profitability and lower financial risk.

Profit margins and pricing

Travel agencies earn through multiple streams:

Typical profit margins:

• Standard packages: 10–20%
• Niche or luxury itineraries: 20–40%
• Corporate and high-value trips: even higher margins possible

How to get clients as a travel agency in the UK

Getting your first clients is often the hardest part of starting a travel agency, which is why you need a good strategy. Here’s a quick, clear plan:

Rely on your network

Your initial bookings will likely come from people who already know and trust you. Focus on:

• Friends and family – Tell them about your services and offer a small incentive for referrals.
• Your existing travel network – Reach out to past clients, suppliers, or colleagues who have travelled before.
• Local communities – Connect with schools, sports clubs, hobby groups, or cultural organisations.
• Past colleagues or business contacts – Promote corporate travel services or personal holiday planning.

Tip: Start with a small, targeted audience and aim to over-deliver on service. Happy clients become repeat customers and referral sources.

Market your business successfully

Once you get those first few clients, it’s time to get the momentum going. Here are some marketing strategies you can try:

How to make your agency run like clockwork

Running a travel agency efficiently can be much harder than it seems. But with the right tools, you can automate admin, track income, and focus on delighting clients instead of drowning in spreadsheets.

Here’s what you need:

Ready to start? Register your travel agency today

Turning your travel passion into a thriving business has never been easier – especially with ANNA by your side.

Here’s what you get when you register with ANNA:

• Company registration – Set up your limited company quickly and hassle-free.
• Instant business account – Manage your finances from day one.
• Full support with VAT, PAYE & Confirmation Statements – Never miss a deadline.
• Automated bookkeeping & tax reminders – ANNA+Taxes keeps your finances organised automatically.
• Simple and free company name checker – See if your ideal travel business name is available.
• Fast, friendly UK-based customer support – Real humans are ready to help when you need it.
• Virtual office services – A professional address and mail handling if you don’t have a physical office.
• Trusted by 100,000+ UK businesses – Join thousands of entrepreneurs already growing with ANNA.

Open your business account in minutes and focus on what you love: creating unforgettable travel experiences for your clients.

With ANNA handling the paperwork and accounting, launching your travel agency is simple, stress-free, and ready for growth.