Best Places to Start a Travel Agency

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best places to start a travel agency

Are you passionate about travel and dreaming of turning it into a successful business? In today’s globalized world, starting a travel agency doesn’t require being bound to your home country. In fact, picking the right location can significantly boost your success. Whether you want to serve a booming tourist market, expand internationally, or relocate for better quality of life—there’s a perfect destination for your travel business.

In this article, we explore the top 7 best places to start a travel agency: Dubai, Spain (Barcelona & Madrid), Singapore, Canada, Australia, Germany, and Thailand. We’ll cover what makes each location special, the perks of setting up there, and why these cities are magnets for global travel entrepreneurs.

1. Dubai, United Arab Emirates

Dubai is the Middle East’s tourism and aviation powerhouse. Home to Emirates Airlines and a rapidly growing MICE (Meetings, Incentives, Conferences, Exhibitions) sector, it welcomes over 17 million visitors annually. The city’s cosmopolitan vibe and tax-free environment make it a no-brainer for ambitious travel entrepreneurs.

Business Perks:

  • 100% foreign ownership in free zones (e.g., Dubai Tourism & Hospitality Free Zone)
  • Zero personal and corporate tax (in most circumstances)
  • High-income clientele and luxury tourism demand
  • Government-led tourism initiatives (Dubai Tourism Vision 2025)

2. Spain (Barcelona & Madrid)

Spain ranks among the top global tourist destinations, with Barcelona and Madrid leading the charge. With over 70 million annual tourists, a relaxed Mediterranean lifestyle, and proximity to major European capitals, Spain is ideal for agencies offering curated cultural experiences, food and wine tours, and boutique travel.

Business Perks:

  • Low-cost SL (Sociedad Limitada) company setup
  • Digital Nomad and HQP visas for relocation
  • Government incentives for tourism startups
  • Access to the EU market and Schengen travel

Barcelona vs. Madrid:

  • Barcelona: Great for coastal & adventure travel, architecture, art, and nightlife
  • Madrid: Ideal for luxury, business, and cultural tours

3. Singapore

With world-class infrastructure, multilingual population, and an international airport ranked among the best globally, Singapore is a strategic base for serving Southeast Asia. It’s a financial and logistics hub with direct access to growing markets like Malaysia, Indonesia, and Vietnam.

Business Perks:

  • Fast-track company incorporation (1-2 days)
  • Strong IP protection and business-friendly laws
  • Low corporate tax rates (17%)
  • High-income travelers and a digitally connected population

4. Canada

Canada is renowned for its excellent standard of living and stunning natural surroundings. There is something for every kind of traveler in the nation, from the Northern Lights to the Niagara Falls. Its large immigrant population also creates a demand for international travel services.

Business Perks:

  • Simple incorporation procedures
  • Government support for tourism and innovation
  • Access to US and Latin American markets
  • High digital adoption rate and e-tourism platforms

Best Cities to Start: Toronto, Vancouver, Montreal

5. Australia

Australia is a magnet for tourists from Asia, Europe, and North America. Its English-speaking, tech-savvy population and stable economy make it an ideal place to build a trusted travel brand.

Business Perks:

  • Business-friendly laws and visa programs
  • Popular among digital nomads and remote workers
  • Booming domestic tourism post-COVID
  • Tourism contributes over AUD 60 billion to the economy

6. Germany

Germany is one of the most popular travel destinations in Europe, with a robust domestic travel industry and a thriving international travel market. As a member of the EU and Schengen area, Germany gives access to 26 European markets.

Business Perks:

  • Reliable legal framework and transparent taxation
  • Highly educated workforce
  • Affordable UG (mini-GmbH) or GmbH setup
  • Strategic central location for pan-European tours

Best Cities: Berlin (creative hub), Munich (luxury & business travel), Frankfurt (finance & transit)

7. Thailand

Thailand welcomes over 40 million tourists annually and is a favorite for wellness retreats, backpacking adventures, and long stays. It is the ideal place to operate and market a travel agency because of its beautiful surroundings and affordable cost of living.

Business Perks:

  • High tourist volume = high service demand
  • Affordable labor and operating costs
  • Government support for digital nomads and entrepreneurs

Conclusion

Each country offers unique advantages, whether you’re targeting luxury tourism, eco-adventures, remote travel models, or family and cultural experiences. The right destination depends on your niche and vision for growth.

If you’re looking to go global with confidence, partner with experts who’ve done it before.

At OnDemand International, we’ve helped 1,200+ entrepreneurs incorporate globally and scale their ventures fast. From company formation and visa solutions to tax registration, banking, and local desk support in over 8 countries, we’re your one-stop partner for global success.

Book a free consultation today and let’s take your travel agency idea across borders

FAQ’s

Dubai, Germany (Munich), and Madrid offer access to high-end clients and corporate tourism infrastructure.

Thailand offers low startup and operational costs, especially for niche travel sectors.

Yes, countries like Spain, Singapore, and Australia are excellent for remote-friendly travel businesses.

Not always. Many jurisdictions allow non-residents to own 100% of the business via a local representative or legal structure (like SL, UG, Free Zone companies).

Picture of Xavier Keller

Xavier Keller

Xavier Keller is a senior consultant at OnDemand International (ODINT) with 10 years of experience in company formation and international business expansion. Throughout his career, Xavier has successfully assisted over 300 firms in setting up operations across multiple countries. His expertise in navigating the complexities of global markets makes him a trusted advisor for entrepreneurs and companies looking to expand beyond their borders.