Setting up a New Travel Agency Article - 825 Words

Setting up a New Travel Agency (Article Sample) Content: Subject: TourismTitle: Setting up a New Travel Agency Travel agency business is becoming very competitive in Australia. Before setting up a new business, it is important that you conduct a thorough market research in order to have an edge over similar services providers. A major entry barrier for new businesses in this sector is the diminishing profit margin . It is also a big challenge for starters to meet the minimum licensing requirements. However, the reprieve for new entrants is that the cost of starting up a business is low. This report will detail the licensing requirements for a new travel agency in Australia. It will also extrapolate how to minimize cost in staffing and the insurance requirements. Different states have different requirements for entrants into the travel agency business. However, there is a minimum prerequisite set by the national government. One will need to apply for a license. The type of travel one wishes to establish will determine the l icense issued. International travel license covers for those interested in setting up business to operate across borders. Domestic travel license is for those interested in trading within Australia. To apply for any of the two licenses, one must have the following minimum qualifications. First, he/she must be eighteen years and over. Secondly, the manager to he/she has hired must have the relevant educational qualifications for the position. Thirdly, one must be of sound physical and mental health as stipulated by Australias laws. Last, eligibility for membership in the Travel Compensation Fund is mandatory. With the minimum qualifications set above, the next step is to apply for a license. An applicant is required to apply for two licenses. The first license is applied to NSW Fair Trading and the other to Travel Compensation Fund. The first one ensures that the staffs hired meet the minimum educational qualifications. It also crosschecks whether the set remuneration meets the minim um wage provided for by the law. The second license ensures that the business in consideration for registration has the necessary financial muscle to operate without inconveniencing travelers. Before making the application, it is prudent to reflect on the type of business that one wants to register. One can apply as a sole proprietor, either individually or through a company. He may also opt to apply in collaboration with a partner. In the case of partnership, the regulating authority requires that each partner should posses a license. Australias travel agency regulator has the mandate to look after the welfare of travelers. Through the Travel Compensation Fund, customers are protected from travel agencies. A new company needs to deposit money with TCF so that should it fail to offer value to money received from customers, money can be withdrawn from the TCF as compensation. With the necessary requirements in place, the next step is to identify a business name and apply for registra tion. The application for business name registration is done at the nationally level through an online system. The application form available online takes approximately 25 minutes to complete. A registration fee is charged for business names. The challenge for travel agency businesses is to maintain a low wage bill and keep the motivation of the staff high. The law provides the minimum wage but employers must aim to operate higher than the minimum in order to attract and retain the best human resource. An award scheme for employees ensures that their morale is high while improving the performance of the company at the same time. At the managerial level, the package should be attractive enough to attract experienced staff that meets the educational qualifications. The sales department should be aggressive in order to win as many customers as possible. Travel business is seasonal and it is prudent to employ subordinate staff on par...