How to Buy a Travel Agency in Australia

Travel agencies look simple from the outside. A few desks, a booking system, and a steady stream of enquiries.

But the real value is not in the shopfront or the itinerary templates. It is in the commission structure, supplier relationships, the digital funnel, and whether the agency can keep converting bookings when the current owner steps away.

Buy the right agency and you gain a recurring service business with stable demand, strong repeat behaviour, and room to scale without heavy capital. Buy the wrong one and you inherit thin margins, high staff dependency, and a business model under competitive pressure from online channels.

The Market in 2025

Travel agencies sit within a sector that has restabilised after extreme volatility during the pandemic. Industry revenue sits near twelve to thirteen billion dollars, with profit margins slightly above seven percent.

The recovery has been driven by domestic travellers, a surge in outbound travel, and a gradual return of inbound tourism. At the same time, the rise of online agencies, metasearch tools, and AI itinerary systems has permanently changed how travellers book. Traditional bricks and mortar agencies have declined, while online models and hybrid operators have grown.

Future forecasts indicate steady industry expansion as household incomes improve, travel volumes increase, and digital channels continue to reduce overheads. Growth will not lift margins dramatically, but well run agencies with diversified revenue will continue to attract serious buyers.

Why Travel Agencies Attract Serious Buyers

Buyers move into this sector for three reasons.

First, demand is stable. Australians continue to prioritise travel and the mix of domestic, outbound, and inbound travellers creates year round opportunity.

Second, corporate travel remains resilient. Businesses outsource travel because it saves time and reduces administrative load. Corporate clients are less price sensitive and offer predictable revenue cycles.

Third, the model scales cleanly. Technology driven agencies can expand nationally with minimal physical overheads. Specialisation in niches like inbound tours, premium itineraries, or language specific travel can lift yield quickly.

Step 1: Understand What You Are Really Buying

You are buying the underlying systems and relationships, not the brochures or the desks.

What the asset base actually is

• The booking engine including supplier access, commission structures, and platform integrations
  
  

• The customer base segmented by leisure, corporate, government, and inbound clients
  
  

• The sales capability including consultant productivity and enquiry conversion
  
  

• The brand and digital footprint including website traffic, reviews, marketing channels, and enquiry flow
  
  
  

If any of these rely entirely on the owner or are undocumented, the business is not transferable at the value being asked.

Step 2: Stress Test the Market and Customer Mix

Travel agencies succeed when their demand base is balanced and predictable.

The drivers that matter

• Travel volumes across domestic, outbound, and inbound markets
  
  

• Real household discretionary income and consumer confidence
  
  

• Corporate travel demand and contract stability
  
  

• The ongoing shift towards digital booking behaviour
  
  
  

The healthiest agencies have three legs

• Leisure travellers providing volume and repeat business
  
  

• Corporate clients providing stable margins and consistent booking cycles
  
  

• Inbound or specialised travel segments providing premium itineraries and unique expertise
  
  
  

If revenue depends heavily on one segment, earnings may look stable on paper but behave very differently in reality.

Step 3: Follow the Earnings Levers

Agencies make money through commission flow, conversion efficiency, and the consistency of their customer base.

The levers you must evaluate

• Average commission per booking and per customer segment
  
  

• Consultant productivity measured by transaction value per person
  
  

• Supplier relationships including commission tiers and incentive structures
  
  

• Cost of digital leads and the conversion rate from enquiry to booking
  
  

• Contract terms and renewal cycles for corporate clients
  
  

• Wage load and rental costs particularly for agencies retaining physical shopfronts
  
  
  

If the seller cannot break down earnings at booking level or segment level, assume the margin is weaker than claimed.

Due Diligence Checklist for First Time Buyers

Financials

• Obtain at least two years of monthly financials
  
  

• Reconcile revenue with booking system exports and supplier payments
  
  

• Separate corporate, leisure, and inbound revenue streams
  
  

• Model the cost of replacing the owner with market rate labour
  
  
  

Customer and Market Mix

• Analyse customer tenure, repeat behaviour, and spend
  
  

• Review enquiry conversion and cancellation patterns
  
  

• Check for concentration risk among corporate or high value clients
  
  
  

Supplier and Commission Structure

• Confirm commission tiers and whether any are volume dependent
  
  

• Identify any special arrangements tied to the current owner
  
  

• Check whether suppliers have recently adjusted commission levels
  
  
  

Operations and People

• Review consultant capability and retention history
  
  

• Assess CRM, workflow systems, and handover readiness
  
  

• Verify accreditation and any compliance requirements
  
  
  

Red Flags That Should Slow You Down

• Commission structures are unclear or tied personally to the owner
  
  

• Overreliance on walk in traffic instead of digital or corporate channels
  
  

• High marketing spend with low enquiry conversion
  
  

• Weak online presence or poor review history
  
  

• Corporate clients uncontracted or showing signs of churn
  
  

• Excessive dependency on the owner for sales performance
  
  
  

Two red flags should trigger renegotiation.

Three should prompt you to walk away.

What To Do Next

Start reviewing live travel agency listings now. Each listing helps you refine your understanding of what a strong mix of customers, commissions, and capability looks like.

Study at least five active agencies. Compare their demand segments, commission access, digital performance, staffing model, and how replaceable the owner truly is.

Buyers who prepare early recognise genuine strength quickly. They can see the difference between an agency with stable recurring business and one with declining margins hidden behind busy sales chatter.

When you can identify an agency with a reliable commission engine, strong repeat behaviour, and scalable digital capability, you will know you are ready to move with confidence.