How to Start a Travel Agency in the Philippines: Step-by-Step Guide

The Philippine tourism sector is roaring back to life, creating an excellent opportunity for aspiring entrepreneurs to start a travel and tours business. Filipinos are once again seeking adventures, from relaxing staycations to exhilarating international trips, and a dedicated travel agency can be their trusted partner in navigating these journeys with ease. 

But building such an agency involves more than just marketing; it necessitates proper licensing, strategic digital investments, and a tailored business model. This guide offers a comprehensive blueprint on how to start a travel agency in the Philippines with confidence and strategic foresight.

Travel agent having a clients in light modern office of tour agency, giving passport after check-in or booking flight. Couple choosing honeymoon destination

What Does a Travel Agency Do?

Travel agencies are instrumental in simplifying the complexities of travel, offering a core suite of services that includes:

  • Flight and hotel reservations
  • Bespoke tour packages and itineraries
  • Visa application support and travel insurance
  • Corporate and group travel solutions

When setting up your agency, you have the flexibility to choose a home-based operation—excellent for cost efficiency—or a comprehensive, full-service office. Furthermore, you can carve out a specific market by specializing in areas like:

  • Eco-tours, catering to nature lovers
  • Senior travel, designed for older adventurers
  • Luxury travel, delivering exclusive high-end experiences

How to Start a Travel Agency in the Philippines

Now that you know what a travel agency does, you can start mapping out what niche you want to focus on. Here’s how you can start a travel and tours business in the Philippines.

Step 1: Legally register your travel and tours business 

Before you can offer any services, you must legalize your operation. This involves several registrations:

  • Business name registration
  • Local permits – Obtain the necessary clearances from your local government units:
  • Barangay business clearance: Secure this from your local barangay hall. 
  • Mayor’s permit: Apply at your city or municipality’s Business Permits and Licensing Office. 
  • Bureau of Internal Revenue (BIR) registration – This step involves securing your Tax Identification Number (TIN), registering your books of accounts, and applying for the authority to print receipts.
  • Department of Tourism (DOT) Accreditation – While optional, DOT accreditation is highly recommended. It boosts client trust, demonstrates adherence to national service standards, and grants access to valuable industry events and networks. Fees typically range from ₱1,000 to ₱3,000, depending on your business classification
  • (Optional) International Air Transport Association (IATA) membership – If you plan to directly issue international flight tickets, IATA membership provides access to global airline networks. Be aware that this process is more complex, often requiring a financial guarantee and office inspections.

Step 2: Set your budget and startup capital 

Launching a travel and tours business in the Philippines requires careful financial planning. Here’s an overview of typical initial expenses:

Expense CategoryEstimated Cost (PHP)Considerations
Office Equipment₱30,000 – ₱60,000Computers, printers, and other necessary devices
Workspace Setup₱10,000 – ₱50,000For either a home office or a commercial rental
Business Registrations and Permits₱5,000 – ₱10,000Government fees for legal operation
Technology and Booking SystemsVaries (some commission-based)Online platforms, CRM, and specialized software
Initial Marketing₱3,000 – ₱10,000/monthWebsite development, digital ads, and promotion
Personnel CostsOptionalDependent on whether you hire staff immediately

*Costs in the Philippines can vary significantly by location (Metro Manila vs. provinces), specific LGU, business size, and the year. The figures provided in the table are good estimates for planning purposes, but a real entrepreneur will need to get exact quotes for their specific situation.

Pro Tip: Many successful travel agencies begin small, often as a solo venture, and grow organically. Prioritize essential investments and scale up as your business thrives. 

Step 3: Build your network and supplier list 

Your travel agency’s success and income are directly tied to the quality and variety of travel services you can offer. Therefore, you must establish robust partnerships. Focus on collaborating with: 

  • Accommodation providers: Hotels, resorts, villas, and guesthouses (both local and international)
  • Transport services: Airlines, bus companies, ferry operators, and car rental agencies
  • Activity and tour operators: Local guides, adventure tour organizers, and specialized experience providers
  • Travel consolidators: These partners can offer more competitive booking rates and a wider inventory

Effective connection-building involves active participation in industry events like travel expos, DOT networking events, and trade fairs. Additionally, joining tourism associations such as PHILTOA, PTAA, or NAITAS can provide valuable inroads. 

For direct partnerships, small business owners should reach out to hotels, resorts, and tour operators to negotiate commission-based deals, commonly ranging from 10–20% for tour packages and hotels, a figure that may fluctuate based on the specific service and volume.

Pro Tip: Always document all partnership terms clearly. Pay particular attention to cancellation policies, payment timelines, and commission structures to prevent future misunderstandings.

Step 4: Build a strong digital presence 

You need a robust digital presence for your small business travel agency; without it, many customers simply won’t find you. Prioritize digital visibility immediately.

Begin by creating a website that showcases your packages, itineraries, and pricing, and includes easy-to-use contact and inquiry forms. Affordable platforms like Wix, WordPress, and Shopify (with plans generally from ₱300 to ₱1,500 monthly) are excellent starting points. 

Additionally, sign up on popular travel marketplaces such as Klook, TripAdvisor (via Viator), and Traveloka to reach a wider audience of eager travelers. 

Finally, cultivate an active social media presence on platforms like Facebook, TikTok, and Instagram. Share engaging content, such as travel tips, client reviews, and promotions, and consider modest ad campaigns (like Facebook Ads from ₱3,000/month) to target specific demographics.

Remember that travel is highly visual. Use photos and videos to inspire and convert.

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Earn Your Wings

The Philippines’ resurgent tourism sector makes this an exceptionally opportune time to launch a travel agency. With the proper licenses in place, partnerships secured, the right digital tools acquired, and strategic marketing efforts, your passion for travel can blossom into a flourishing small business. 

Success hinges on staying true to your niche, prudently managing initial expenses, and cultivating enduring industry relationships. 

If you find yourself in need of capital to scale up, Unicapital stands ready to assist. We provide flexible business loans for Philippine entrepreneurs, perfect for investing in essential equipment, powering your digital ad campaigns, or expanding your dedicated team.

Let Unicapital help you chart your business’s next adventure. Apply for a business loan today.  

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