How to Start a Business Travel Consultancy

Part 1 - How to start a Business Travel Consultancy business - Background

If thoughts of long journeys and exploration excite you, perhaps you’d like to become a business travel consultant. Businesspeople often travel great distances, and it’s rarely a simple process. In addition to reserving hotel rooms and rental cars, they have to purchase airline, bus, or train tickets. It can take many hours to compare all of the options. They typically need to arrive on time for important events, so it’s crucial to have carefully planned itineraries. 

An expert can ensure everything goes smoothly and arrange trips more efficiently. Consultants usually offer greater customization than the average travel agent.

Our guide is in 3 parts:

• Part 1 - How to start a Travel Consultancy business - Background
• Part 2 - Our planner tool to see if this idea is the right fit for you
• Part 3 - Action plan to get started

What are the costs involved in opening a business travel consultancy?

You can work at home, so startup expenses largely depend on whether or not you already have a home office. Consultants spend many hours using computers and phones; an ergonomic chair and desk are essential. Quality new furniture will probably cost at least $300. You ought to have the equipment necessary to print, copy, and fax documents. Some travel-oriented decorations might help inspire you. Think about adorning the walls with scenic photos, maps, or clocks that show the current times in different cities.

What are the ongoing expenses for a business travel consultancy?

You’ll need to pay for office supplies, promotional campaigns, and electricity. Dependable internet and phone service also hold importance. It’s helpful to stay informed about the hospitality industry; consider buying a Lonely Planet membership or subscribing to a magazine like Travel + Leisure. This costs around $30 to $40 per year. You can obtain travel management software for less than $10 a month.

There’s always a chance that a mistake could lead to serious problems and trigger losses for a business. To minimize the financial risks, obtain professional liability insurance with errors and omissions coverage. The premiums add up to about $400 annually.

Who is the target market?

You’ll serve organizations with staff members who attend conferences, exhibitions, grand openings, and other events. Executives may want to visit properties before buying or renting them. Relatively high-end clients can afford consultants.

How does a business travel consultancy make money?

Clients pay fees to compensate you for the expertise and effort involved in arranging trips. Business travel occurs throughout the year but peaks in the autumn.

How much can you charge customers?

Fees differ based upon the complexity of a trip. You could charge $30 just to book a room that the client will reach by car. On the other hand, a traveler might pay you $200 to plan a long journey involving multiple flights, hotels, and vehicle rentals. Keep in mind that remote business travel consultants generally earn $34,000 to $122,000 per year, according to ZipRecruiter.

How much profit can a business travel consultancy make?

Compared to other entrepreneurs, these professionals have comparatively low expenses but find it somewhat hard to gain clients. Customers have many options, such as in-house travel planners, agencies, and self-serve bookings. This limits how much you can charge. Business-oriented agencies attain profit margins of around 7%. The greater personalization offered by consultants may yield somewhat higher margins.

How can you make your business more profitable?

You’ll probably qualify for home office tax deductions as long as you don’t become an employee. Reevaluate your phone service; consider switching providers or calling plans in an effort to minimize the per-minute cost of international and out-of-state calls.

• Prioritize referrals rather than costly media or search engine advertising.

• Reduce your printing costs by using a monochrome laser printer for most purposes.

• Selling travel insurance is often quite lucrative and adds valuable protection.

Day-to-Day and Growth

What happens during a typical day at a business travel consultancy?

You can expect to spend many hours conducting research, communicating with clients, and setting up itineraries. Customers want you to choose and purchase services for them. Among other things, you’ll have to select flights and book rooms. Keep work-related needs in mind; pick hotels with business centers and suitable internet access. Clients may ask for assistance during their trips if problems arise. You can negotiate with service providers to find fair solutions.

What are some skills and experiences that will help you build a successful business travel consultancy?

Ideally, consultants are excellent researchers who have traveled to faraway destinations. It helps if you can speak a major foreign language like French, Portuguese, Spanish, or Chinese. This profession doesn’t require any specific credentials, but you’ll find it easier to attract clients with a two-year tourism or travel degree. Computer expertise holds considerable value as well.

What is the growth potential for a business travel consultancy?

While the COVID-19 pandemic recently forced many companies to cancel trips, Statista reports that global spending on commercial travel increased by over 200% between 2000 and 2019. If you decide to expand a profitable firm, you could create an agency with multiple consultants. Another option is to develop a franchise. For example, a UK company known as Travel Counsellors offers a franchising opportunity that includes training, support, bonding, and supplies.

What are some insider tips for jump starting a business travel consultancy?

Take notes on each client’s habits and priorities so that they don’t have to remind you. For instance, one traveler might enjoy trying new eateries each day while another prefers a convenient hotel restaurant.

Try to use the same services for multiple clients. If you send numerous travelers to a specific hotel chain or airline, it might provide your customers with free upgrades. Sometimes you can trigger bonuses by using the right technique, such as entering a promo code or booking rooms on a certain website.

Always consider the total expense. Clients won’t save cash by staying at a slightly less expensive motel if it costs more to travel there. At times, it’s worth staying an extra night to pay significantly lower airfare the next day. Early booking can also cut expenses.

Don’t let a service provider’s incentives distort your judgment. The client’s interests should always come first. To create the optimal experience, strive to minimize waiting times, traffic, and crowds. Remember that companies are responsible for employee safety; avoid potentially risky routes.

How and when to build a team

You don’t really need any employees to run this business. Nonetheless, you could hire a secretary or virtual assistant if you develop a profitable consultancy and need help answering phone calls or performing research. These individuals frequently earn around $12 to $25 per hour.

Part 2 - Is a Business Travel Consultancy business the right fit for you?

Part 3 - Action plan to launch your Business Travel Consultancy business in 90 days