Legal Procedures to Create a Travel Agency

 

A successful travel agent is an astute negotiator, well-versed in navigating world travel, and an expert at finding enticing deals. Many professionals in the travel field are home based while others seek employment in brick and mortar establishments. If you love to travel, becoming an agent is a viable way to visit various destinations at a discounted rate. Prior to scheduling your first client’s trip, make certain you have met all the legal requirements.

Home-Based Agency

If you intend to run your business from your home office, inquire at your local municipal office for regulations pertaining to this endeavor. City governments often require a business license for home-based businesses. Additionally, local entities have zoning laws that regulate business and delivery hours, signage and noise issues. Certain homeowners’ associations institute bylaws pertaining to residential businesses. Check with your HOA to avoid violating their rulings. An optional business strategy is to join your local chamber of commerce. Not only are chamber meetings a place to promote your business, trained chamber personnel keep members informed of new local laws and regulations.

Business Names and Structures

Once you have created a memorable business name, you must register that name in your community. Each county has specific guidelines and timelines for registering a fictitious name. You must first make sure the name is not in use. Some counties have online systems you can peruse to check for an existing business name. Typically, the next step is to file a form and pay a fee. You may also be required to publish the name in a local paper by taking out an ad for a specified number of days or weeks. Another consideration is your business structure. Consult a tax account or attorney when deciding on options such as remaining a sole proprietor or forming a corporation or limited liability company

Licensing

Licenses for travel agents are dependent upon state regulations. Some states, like California, require agents who "sell, provide, furnish, contract for, or arrange the retail or wholesale sea or air transportation" to attain a “Seller of Travel License.” The California Attorney General's office enforces this law for agents who operate in California or sell travel to California residents. Thirteen other states each have specific regulations for obtaining this license. These states are Florida, Hawaii, Illinois, Iowa, Louisiana, Massachusetts, Michigan, Nevada, New York, Pennsylvania, Rhode Island, Virginia and Washington state. Additionally, the state where your business is located may require that you purchase a sales tax license.

Certification

Although certifications are not mandatory, earning an accreditation is a sign of credibility. If you intend to intend to work for a travel agency, that firm may require that you hold a certification. The Travel Institute, headquartered in Framingham, Massachusetts, offers a Certified Travel Associate designation. Applicants must possess a minimum of 18 months full-time experience prior to scheduling the exam. Cruise Lines International Association provides four levels of certifications. Requirements vary; components include coursework, cruise conference attendance and actual sales history.

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How to Open a Travel Agent Business

The travel industry has grown at a steady pace in recent years and is highly desirable to many people because of relaxed working conditions and excellent travel discounts. If you do not have a college degree with a specialization in travel and tourism, you will need to complete a training certification course. Courses are offered through many universities as well as online. Once you have your certification, you can get started.

1

Establish a place of business. The office location needs to be in a high-traffic area of ​​town to help establish a strong presence. It also needs to be large enough for another agent in case your business expands. Make sure the property is wired for high-speed Internet and multi-line telephones; both are business essentials.

2

Acquire office equipment (computers, printers, fax, and scanner) and a payment processing equipment. Many customers today prefer to pay for travel expenses with credit or debit cards. You will need a card merchant account to accept these payments.

3

Have a custom sign made for your place of business that displays the name of your agency and telephone number. Most of your customers will be walk-ins, so an attractive sign is important.

4

Contact your local licensing agency to acquire any type of business license you may need to operate within the jurisdiction. Most states do not have specific licenses for travel agents, but you will need a general license to do business in your municipality.

5

Obtain errors and omissions insurance coverage. This coverage is important because it protects you from liability in case a booking doesn't go as planned. Most insurance agents offer errors and omissions, so contact a local agent to set it up.

6

Contact airlines, hotels and cruise lines to obtain contracts to offer their services. You will need to present your travel and tourism certificate or degree to obtain these contracts.

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How to Cold Call Life Insurance Leads

 

Cold calling is a fact of business life for many insurance sales representatives. While it can be daunting at first, it becomes easier with practice -- and easier still once you have made your first few sales. Rather than approach it haphazardly, having a well-thought-out strategy can often mean the difference between cold-calling success and failure.

1

Prepare in advance to ensure you're ready for whatever response you get. Expect to receive questions from prospects, and be ready with the answers. Have a detailed understanding of the insurance products you are selling, including their features, benefits and any special conditions, like the back-end loads typically associated with annuities. You should also have a clear understanding of suitability issues that might make one product more or less advantageous for one consumer versus another. Check with both federal agencies and the appropriate authority in your state to gain an understanding of what's permitted and what's prohibited with telemarketing.

2

Source the leads. If your agency does not provide you with leads, you might want to consider purchasing them from one of the numerous companies that supply sales leads to insurance professionals. Exercise caution, however, to try and ensure the leads are as current and targeted as possible. Ask the provider for references of other insurance sales professionals that have used their leads -- then call those references to verify the provider's claims.

3

Check "do not call" lists before picking up the phone. By definition, cold calls are made to individuals that have no prior relationship with the soliciting company. Once you obtain the leads, verify that they have not registered their phone numbers with either the federal or state do not call registry.

4

Write your script. To help you sound as professional as possible, develop a script that begins with a greeting and introduction -- “Hello, Ms. Jones, my name is Dave Smith and I'm calling from ABC Insurance Company." Always ask the prospect if you are calling at a convenient time and, if so, state the purpose of the call. Your script should also include common objections that insurance representatives are likely to receive, as well as several possible statements to help you overcome them.

5

Practice, practice, practice. Before making the first call, ask someone to role-play with you. This will give you the opportunity to practice your sales pitch, as well as overcoming the objections you are likely to receive. After that, you're ready to pick up the phone and start soliciting business.

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Ways to Legally Advertise a Business

The success of your business depends, in part, on how well you advertise it. In advertising your business, you must decide what type of audience you are attempting to attract. It is a good idea to write your ideas on paper first and create a plan of what you expect to accomplish from advertising.

Email

One of the most effective ways to advertise a business is through email advertising. Millions of people have email accounts, and email advertisements allow you to market your business to a large audience. Avoid spamming potential customers, however, and give them the option to opt out of your advertisement list. There are many companies that offer email lists and other marketing kits that can enhance your business. This type of company is beneficial because it maintains your email advertisement database and allows customers the option to cancel their subscription.

Newspaper

Local newspaper advertisements provide a great way to market your business. The local paper is a good tool if you want to test your product locally and confine it to your area before introducing it to a larger audience. Including coupons in newspaper advertisements can encourage customers to purchase your product.

Direct Mail

Direct mail advertisement can attract customers by giving them a direct visual of your product. You can include samples of the product or allow the potential customer to request samples or trial offers. Sending attractive postcards and brochures through direct mail is a great attention-grabber.

Press Release

Creating a press release for your business will give you the opportunity to announce your business to potential customers. If you are not proficient at writing, hire a professional to create an eye-catching press release for your business. There are some websites that allow you to submit your press release via their site at no charge.

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Examples of Direct Marketing Campaigns

 

Companies can use many types of direct marketing campaigns. The key is finding one that best suits your type of business. The first step in executing a direct marketing campaign is finding quality leads. The Direct Marketing Association provides lists of such leads. Another option is generating leads directly from ads. People who respond to ads are more apt to be interested in your offers. Direct marketing campaigns are designed to eliminate the middleman, including retailers and wholesalers.

Telemarketing to Reach Consumers

Telemarketing is still a viable way to conduct business directly with consumers. The key is ensuring that you maintain your "Do Not Call" lists. You can obtain this information through the Federal Trade Commission's website, according to the Direct Marketing Association. Start by finding lists of people that would be most interested in your offer. Create a phone script before calling prospects and include questions that help you qualify your prospects in your script.

Qualifying questions help determine whether people are interested in your offer. For example, as an insurance sales rep, you could say, "If I could show you a way to save money on your car insurance, would you be interested?" End the conversation politely if the person says no.

Newsletters by Mail or Email

Most people purchase newsletter subscriptions by mail, email or the Internet. Find customers by mailing to them through mailing lists, or by placing classified or display ads in magazines. Select trade magazines that appeal to people who are likely to read your type of information.

For example, advertise your bodybuilding newsletter in various bodybuilding publications. Create a sales letter and order form for people who respond to your offer. Offer a free newsletter to spark their interest. That way you have their address for future communications.

Infomercials on Television

Infomercials are television commercials that companies use to sell products. You can run infomercials nationally or locally, the latter of which is the best way to test your offer. Contact some of your local stations to obtain their rates on infomercials. Select the times that your viewing audience is most likely to watch television.

For example, teens are likely to watch television during the late afternoon or prime time, as they go to school during the day. Consider advertising late at night or even after midnight if your offer appeals to retired folks, those looking for work or night shift workers.

Postcards to Generate Leads

Postcards are a popular type of direct marketing. One reason is that they are cheaper to mail than letters. Postcards are primarily used to generate leads. Write a headline that appeals to your target audience. The headline is the most important element of any advertisement, according to marketing expert Dave Dolak. Include at least one benefit in your postcard headline.

For example, "Lose 10 Pounds This Month," is a benefit that appeals to people who want to lose weight. Include a toll-free number on your postcard for people to respond to your offer.

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