Can anyone become a TA and save money?

[cruiseco]

[quote name='fritzylady']One thing that was never mentioned when calculating the cost of becoming a "travel agent" was Errors and Omissions insurance. If your going to book travel for any other than yourself you better have it and that's going to add another $300 to $500 to your expenses!

Fritzylady[/QUOTE]

Plus, sme states require additional licensing/bonding that can add several more hundreds every year. If you don't have the proper licensing and sell a cruise to someone else (even your family) you could be in violation.

[Kathleen P.]

For all of the non believers out there here is the latest copy of travel agent weekly. You can read the on-line version [url]www.travelagentelectronic.com[/url]

There are articles about the power of the GROWING home based travel agent and how the industry recognizes them and is doing what they can to accommodate the home based agent.

In my state there is no such thing as a "travel agent licence"...as long as you are a registered business and pay taxes (state and federal) there is no violation. Errors and Omissions, at least in my situation is not needed...I do not ticket any air...I do all my sales thru wholesalers. Which means I sell travel services. I can book any vacation anywhere from a long list of wholesalers who only sell to Travel agents with a valid CLIA or IATA number (you must register your business with a Tax ID number and CLIA or IATA # with each and every wholesaler or you cannot do business with them). The package includes air, hotel , insurance and whatever else the client requires. The wholesaler prices may reflect a significant savings in both air and hotel...but only can be priced thru a TA. The commission is paid to the TA by the wholesaler. Errors and omisssions is not needed, since I am selling a travel SERVICE. Also it does not pay to ticket air anymore...no commission and lots of headaches. It is much easier for a TA to book direstly thru the wholesaler and the client is happy for the great value. Also many wholesalers package the boarding passes,hotel reservations and whatever else in a beautiful personalized travel folder - and they put your name on it so it looks customized and professional.

Also the crusie lines are doing the same thing with great websites for TA so you can print personalized brochures yourself and as you need them.

It takes time to set up, but once you are you just need clients:)

[BB5953]

If the insurance is only needed when you book for others I think that is an expense I would need as I would only be booking for myslef. If I wanted to be a full time TA then I would join an agency!

[Kathleen P.]

That's correct....if you are a TA (homebased or office) working for a Travel Agency you would be covered under the company's E&O insurance, as you are operating under that agencies IATA/ATC/CLIA - you would not have to get insurance just for yourself. An IATA/ATC/CLIA when working for a TA is not an individual thing...meaning the numbers are registered under the company's name..it's not like a social security number where everyone has their own individual number. When you work for a TA you are registered under the companys CLIA #. My CLIA# is under my company name not my name.

You can be a home based agent working for an agency. The only problem with that is is that you have to split your commission with the owner (the generous ones pay 50%).

I was just pointing out that you can have your own CLIA # and sell travel SERVICES. You also then would keep all the commission. If i wanted to I could hire people to work for me on a commission basis. When booking they would give my company's CLIA # to the wholesaler/cruise line. When I get the commission check it would be made out to my company's name. I would then cut a check to the agent for 50% of that commission. Since commissions are not very large--it does not make any sense to work for a TA, since you have to split 50/50. Most TA's do not make a lot of money so splitting the comm makes it even worse - I would also have a hard time taking 1/2 of someone else's money.

Because there are so many home based agents selling travel services (meaning you are not ticketing airlines - but selling an entire package thru wholesalers) you can become a TSI- Travel Sales Intermediary. Which is thru IATA. Iata recognizes the growing number of home based TA only selling travel services.

TSI is "engaged in the sale and/or brokerage of travel and travel related services such as cruises, tours, hotels, car rentals, bus and rail transportation and meeting planning. TSI's range form individual home based businesses to large corporations and are located in the US or Possessions. TSI's do not hold airline agency appointments or issur airline tickets."

So you can sell a package that includes air...but you are not ticketing air, that is done by the wholesaler you book thru. It is a very easy thing to do....you just have to have lots of patience due to all the phone calls you have to make and all the time you spend on hold:)

Bottom line...the more things you "belong " to the more money it costs you. I have found CLIA to be good for me, and meets my needs...but this info may interest someone and be helpful.