Travel Agencies Revenue Benchmarks
The average travel agencies business in the United States generates $1.6M in annual revenue, according to the U.S. Census Bureau Statistics of U.S. Businesses (SUSB 2021). There are 7,259 travel agencies businesses in the U.S., employing 74,669 workers with an average profit margin of 8.0%. The average employee in this industry earns $92K per year (Bureau of Labor Statistics QCEW 2023).
What Does a Travel Agencies Business Actually Do?
Businesses that book travel — cruises, tours, hotels, flights — on behalf of clients. Modern agencies specialize (luxury, group, corporate, destination) since generic travel has largely moved online.
Who buys: Consumers planning cruises and complex trips, corporate travel managers, group organizers.
Average Revenue
$1.6M
per year
Profit Margin
8.0%
industry average
Revenue / Employee
$160K
per year
Total Businesses
7,259
in the US
Est. Owner Income
$132K
small business avg
Labor Cost
55.0%
of revenue
Avg Employee Wage
$92K
per year (BLS)
Market Saturation
2.2
firms per 100K people
How Much Do Travel Agencies Charge?
Travel agencies earn commission from suppliers plus service fees for booking complex trips.
| Service | Typical range |
|---|---|
Cruise commission | 10–17% of gross |
Hotel commission | 10–15% of gross |
Tour package commission | 10–20% of gross |
Airline commission | 0–5% (mostly zero post-2000s) |
Service fee (domestic) | $25–75 per ticket |
Service fee (international/complex) | $50–250 per booking |
Concierge / VIP service | $100–500 per trip |
Ranges based on industry rate surveys and typical published pricing. Actual quotes vary by city, business size, and job complexity.
Complete travel agencies business plan
A 12-section data-backed business plan for a travel agencies business — executive summary, market analysis, competitive landscape, revenue model, 3-year financial projections, operations, marketing, staffing, funding request. Pre-populated with real Census, IRS, and BLS data on this industry. Free to view.
Cost Structure — Where Every $100 in Revenue Goes
Approximate P&L breakdown for the travel agencies industry. Labor share and net profit are grounded in Census SUSB and IRS SOI data. Other lines are split using sector-typical ratios.
| Category | Per $100 revenue | Per typical business | What's in it |
|---|---|---|---|
Direct service costs | $7 | $122K | Cleaning supplies, uniforms, equipment consumables — depends on service type. |
Wages & benefits | $55 | $907K | Payroll for all employees at the business (owner comp not included for small owner-operators). |
Rent & facilities | $6 | $91K | Rent or mortgage on business location plus utilities tied to the space. |
Marketing & advertising | $4 | $61K | Google/Meta ads, SEO, print, referral fees, event sponsorships. |
Other operating costs | $20 | $335K | Insurance, background checks, training, transportation, admin. |
Net profit | $8 | $132K | What remains for the owner or shareholders after all business expenses. |
Directionally accurate for a typical business in the industry. Individual businesses vary widely — a franchise may run a very different cost mix from an independent, and older established businesses often have lower labor share than newer ones.
Average Revenue by Business Size
Industry Dynamics (Census BDS 2023)
New Business Rate
14.74%
openings/year
Closure Rate
12.17%
closings/year
Net Job Growth
+9.2%
annual
Businesses Closed
775
in 2023
Firm Count Trend
Should You Start a Travel Agencies Business?
Startup Cost
$50K – $250K
Break-Even
14 months
5-Year Survival Rate
50.0%
Related Industries
Frequently Asked Questions
- What does a travel agencies business do?
- Businesses that book travel — cruises, tours, hotels, flights — on behalf of clients. Modern agencies specialize (luxury, group, corporate, destination) since generic travel has largely moved online. Consumers planning cruises and complex trips, corporate travel managers, group organizers.
- How much do travel agencies charge?
- Travel agencies earn commission from suppliers plus service fees for booking complex trips. See the pricing table above for typical rates by service type.
- How much does the average travel agencies make per year?
- The average travel agencies business generates $1.6M in annual revenue, based on U.S. Census Bureau data (SUSB 2021). After expenses, the estimated owner profit is $132K per year at a 8.0% profit margin.
- How many travel agencies businesses are there in the US?
- There are 7,259 travel agencies businesses operating in the United States, employing a total of 74,669 workers.
- How much does it cost to start a travel agencies business?
- Startup costs for a travel agencies business typically range from $50K to $250K, with a 5-year survival rate of 50.0%.
- What is the average salary in the travel agencies industry?
- The average employee in the travel agencies industry earns $92K per year, according to Bureau of Labor Statistics data (QCEW 2023).
Industry Growth & Survival
The travel agencies industry is actively growing — adding jobs at a net rate of 9.2% per year. New establishments are opening faster than existing ones close (14.7% entry vs 12.2% exit), indicating healthy demand.
Approximately 52% of travel agencies businesses survive their first 5 years. This is near the national average (~50%), with typical business risk. In 2023, 775 firms in this industry closed permanently.
Employment & Wages
The average employee in the travel agencies industry earns $91,556/year. This is significantly above the national average of ~$65K, reflecting the skilled nature of this work. With 13,048 establishments employing 76,393 people, the typical business has about 6 employees.
Industry Trend (2000–2023)
The travel agencies industry has declined 53% since 2000 (from 22,425 to 10,611 firms).
See full historical statistics →Compare Travel Agencies revenue with other industries: