Simple Financial Planning for Travel Advisors

As a travel advisor, you’re passionate about helping clients plan dream vacations - that’s why you got into this business! However, things look very different behind the scenes of those elaborate itineraries, there’s a business to run.

Like any business, financial planning is critical for long-term success, and many advisors tend to overlook this step, especially when juggling bookings, marketing, and client calls. Here’s the truth: understanding your finances isn’t just about paying the bills—it’s about creating a sustainable, profitable business that allows you to thrive and enjoy the rewards of your hard work.

You can’t just cross your fingers and hope your commissions add up. You need clarity on: 

• What you need to earn to cover your expenses.

• How many bookings or clients you need to reach your income goals.

• The prices and service fees you should charge to meet those goals.

When you take the time to assess your financial status and map out your income targets, you can stop guessing and start making strategic decisions about your business.

Let’s explore why yearly financial planning is essential for travel advisors and how it can help you confidently set the prices for your services. I even have an easy to use tool for you that will make your planning a breeze!

Know Your Numbers

Before you can set your prices, you need to understand your expenses. Financial planning starts with reviewing everything that goes into running your business and your personal life.

Here’s what to track:

• Business Expenses: Host fees, marketing, conferences, subscriptions, and software.

• Living Expenses: Mortgage/rent, food, insurance, utilities, and childcare.

• Future Savings: Retirement, emergency fund, and personal goals.

Use a worksheet (like the Travel Advisor Financial Planner) to add up these numbers. Your total expenses will give you a clear annual income goal. This is the baseline income you need to thrive—not just survive.

Break Down Your Income Goals

Once you know your annual income target, the next step is determining how much income you need to earn per booking to reach that goal.

Here’s the simple formula:
Annual Income Goal ÷ Average Income Per Booking = Number of Bookings Needed

For example:

$60,000 (Goal) ÷ $500 (Income Per Booking) = 120 (Bookings Needed)

Seeing these numbers helps you understand your workload and allows you to ask yourself:

• Are these bookings realistic for my current capacity?

• Do I need to increase my average income per booking through higher service fees or upselling?

Set Your Service Fees with Confidence

Service fees are a critical part of building a financially sustainable travel business. If you’re relying solely on commissions, you’re leaving money on the table and making it harder to hit your income goals. Plus, I can bet you are doing a lot of unnecessary work for clients who aren’t aligned with your business.

Remember, you’re not just booking trips—you’re saving clients time, providing expertise, and delivering personalized experiences. So get clear on your value because your services are worth paying for.

When determining your fee structure, make sure to factor in the time you spend researching, planning, and managing client trips. Your pricing should reflect the effort and expertise you bring to the table.

You can then use that breakdown of your income goals to price your fees accordingly. For example, if you know you need $500 per booking to hit your annual target, but your average income is $400 per booking, then you should start your fee pricing at $100. 

If you are looking for help with getting fees set up in your travel business, check out The Profitable Travel Advisor. It’s a step-by-step guide designed to help you confidently implement service fees!

I can’t stress enough how important incorporating service fees into your business model can change your business. You’ll create a steady income stream and ensure your hard work is appropriately compensated.

Plan for Profit—Not Just Survival

You don’t want to just cover expenses, you want to build a profitable business that allows you to enjoy the lifestyle you want. You probably got into this business to travel more and have flexibility in your schedule. Make sure you are generating income so you can do those things! 

Or maybe you need to save money for retirement, a home project or a college fund. Maybe you want to attend more conferences or FAM trips to help grow your business. Whatever it is, think of those “fun and future” goals in all of your planning. A profitable travel business doesn’t just pay the bills—it allows you to live a life you love.

Review and Adjust Regularly

Financial planning isn’t a one-and-done task you do at the beginning of a new year. As your business grows and evolves, it’s important to review your income and expenses regularly.

Schedule in time to check-in quarterly to see if you are on track to meet your goals and where you might need to adjust. Look at areas of your business where you can streamline expenses or outsource tasks to boost revenue. 

By staying on top of your numbers, you’ll make informed decisions that keep your business profitable and sustainable.

Yearly financial planning is all about clarity, confidence, and control over your travel business. Look at this as a fun activity to dream big for the future of your business! 

When you are clear on your goals and have the right systems in place, you’ll build a business that serves you as well as your clients.

So, download the FREE Travel Advisor Financial Planner, set aside some time, and start mapping out your financial success for the year ahead. Your future self will thank you.

To Your Success,