How to Start an Online Travel Agency

A practical checklist for launching an OTA: licensing, supplier contracts, B2C or B2B, payments, and choosing between a custom build, a SaaS platform and self-hosted software.

checklist Six-step checklist
handshake Supplier reality
compare_arrows Build vs SaaS vs self-host

Short answer

Register the business and any travel licence your market requires, sign supplier contracts, decide whether you sell B2C or through agents, set up payments, then choose software. Software is the step everyone starts with and the one that matters least until the first four are settled — a booking engine with no supplier contracts has nothing to sell.

The six steps, in the order they actually matter

1

Register the business and check licensing

Requirements vary by country and by what you sell. Selling packages usually carries more obligation than selling a single flight: many markets require a travel licence, bonding or financial protection for package holidays, and some require an IATA accreditation to issue tickets. Check your own regulator before you build anything — it can change what you are allowed to sell.

2

Get supplier contracts before you get software

This is the step most new agencies underestimate. A booking platform connects to a supplier; it does not give you access to their inventory. You sign with each bed bank, consolidator or GDS yourself, they issue your credentials, and the platform uses them. Some suppliers have volume minimums or want to see an existing business. Start these conversations early: they are usually the long pole.

3

Decide B2C, B2B or both

B2C means selling to travellers from your own storefront — you own the marketing cost and the margin. B2B means recruiting agents who sell on your behalf, which shifts the problem from advertising to agent management: tiers, markups, credit limits and settlement. Many agencies end up doing both, but they are different businesses in the first year, and the choice changes what software you need.

4

Set up payments and understand the money flow

You need a merchant account or payment gateway, and a clear picture of who holds funds between booking and supplier payment. Card payments, bank transfer and agent wallet balances all behave differently at refund time. Chargebacks on travel are unforgiving, so plan the refund path before launch rather than after the first dispute.

5

Choose your software model

Custom build, managed SaaS, or self-hosted software you licence and run. This is the decision below — it sets your cost shape for years, and it is the one that is expensive to reverse.

6

Launch small, then widen

Start with one or two suppliers and one product line rather than connecting everything. Every supplier API adds mapping, testing and support surface. Get one booking flow genuinely reliable, then add the next.

Custom build, SaaS, or self-hosted

All three ship a working OTA. They differ in what you own afterwards and what a change costs.

Custom build compared with SaaS and self-hosted travel booking software
  Custom build Managed SaaS Self-hosted licence
Time to first booking Months Days Days to weeks
Upfront cost Highest Lowest Middle
Cost at year three Paid already Still paying monthly Paid already, plus hosting
Who runs the servers You The vendor You, or managed hosting
Changing how it works Anything, at your cost Vendor roadmap Your developers, source included
If you stop paying You keep it It stops You keep it
Best when Your model is genuinely unusual You want to launch now and never touch a server You want to own the platform and have someone technical

When not to pick us

If nobody on your team can look after a PHP and MySQL server and you do not want to pay a managed host, a SaaS platform is the better answer — you will get further, faster. If your commercial model is genuinely unlike anything on the market, a custom build may be worth its cost.

Where PHPTRAVELS fits

Self-hosted, licensed once, with the full source code included so your developers can change it. Flights, hotels, tours, cars, ferries, rail and visa modules, B2C and B2B portals, and 30+ supplier and payment integrations. It is a commercial licence, not a public open-source project — you buy the right to use and modify the code, and you run it on your own infrastructure.

Frequently asked questions

Do I need a travel licence to start an OTA?

It depends on your country and what you sell. Selling packages typically carries more obligation than reselling single components, and many markets require a licence, bonding or financial protection for package holidays. Issuing airline tickets yourself usually requires accreditation. Check with your own regulator before committing to a model.

Can I start an online travel agency without supplier contracts?

Not in any meaningful way. Booking software connects to suppliers; it does not grant access to their inventory. You sign with each bed bank, consolidator or GDS directly and they issue your credentials. Start those conversations before you choose software, because they take the longest.

How much does it cost to start an online travel agency?

The software is only one line. Budget for business registration and any licensing, supplier onboarding, hosting, payment gateway fees, the platform itself, and marketing. PHPTRAVELS is quoted per project rather than sold at a list price; our cost guide breaks down every line to compare.

Should I start with B2C or B2B?

B2C means you carry the marketing cost and keep the margin. B2B means recruiting agents who sell for you, which replaces advertising spend with agent management: tiers, markups, credit limits and settlement. Pick one to start with. Doing both from day one usually means doing neither well.

How long does it take to launch?

The software is rarely the constraint. Supplier contracts and credentials are typically the longest step, and licensing can gate what you are allowed to sell. Teams that start supplier conversations first tend to launch much sooner than teams that start by choosing a platform.

See it before you decide

Run the live demo, then get a quote scoped to the modules and suppliers you actually need.

Next: what travel booking software costs, how the platforms compare, and running a B2B agent network.

Recent Blogs

Fresh insights, product updates, and practical travel-tech guidance from our latest articles.