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  1. 1. page 1FOUNDATION OF A TRAVEL AGENCYBefore you open a travel agency, you have to think about where location you want to openit.Target groupFurthermore, we have to think about which people we want to focus on, further is to appealto the people.After this you have to become aware of the needs of the consumers.LocationThen we think about where we want to open our agency.The best location location for a travel agency would be in the centre of the city whereeveryone can notice it.Competition analysisThe next point is to look at which advantages the competition has and define your own USP.Finance planA finance plan is another vital element for opening a travel agency. It shows how muchcapital we decree.We have to look how much money our agency has and where we can invest it.Future conceptOur future objective is to realize our plans.AdvertisementFinally, it is essential to promote our products and servicesCosts for advertisement: TV Commercials (15, 20, 30 seconds) 6,000 until 30,000 Poster (8-24 bend) 2,300 until 18,000
  2. 2. page 2FINANCEBusiness financing is divided in two fields. These are internal financing and externalfinancing. The latter further divided in equity and borrowed capital.Interest for business loansBusiness loans have an interest rate of 3 %.BackingIf you need support, first you will get advice from a bank, for example. Also, you get 2 %subsidy on interest for loans or investments. For business formation you get 25 % of start-up cost at one point. The bottom line is € 1,000,-- and maximum € 20,000,--.FundingThere are federal fundings and national fundings. Federal fundings are available in Austriabut national fundings are only available in the state where you found a business.Federal funding:You will get a bonus for founding:Examples: If you register the travel agency one year before founding If this is your first independent enterprise For members – 25 % interestRequirements for tourism-founding:For example:Physical, juristic persons and other types of members in businessNational funding: Land transfer taxLaw charges for entry in the commercial register  for business foundingLaw charges for entry in the land register  for company foundingInitial capital for companiesThe primary deposit of a company is € 35,000,--.
  3. 3. page 3PERMITS AND REQUIREMENTSFor the founding of a travel agency in Austria, you need a business license which you get atthe magistrate if you have the necessary professional training.After receiving the business license, you have to register your trade. Here you can get astart-up promotion, if you haven’t started a business yourself for 15 years.Moreover, you have to enter your business in the commercial register at the commercialcourt. You have to pay the related costs for this registration yourself. After two weeks youget the order per post and you have to go to the commercial court again to get a commercialregister report. For this report you have to pay 20 Euro.You can also engage a notary to get these permits for you, perhaps he carries the costs forthe registration in the commercial register, too. He would require approx 1,000 to 3,000Euro.Business license= for an application you need to pay 12-65 €, but it depends on theborough, and then you can request a trade license.Registry in the commercial register= between 70-400 €Minimum share capital for a company with limited liability= 35,000 €
  4. 4. page 4RUNNING COSTS PER EMPLOYEE ANDEMPLOYERRunning costs : Operating costs (Water costs, Garbage collection, Energy costs) Personnel expenditures Rent per square metre approx. 12.00 € in Vienna (15th district)Regular costs for employers : Staff (salaries of employee) Taxes (Wage tax) Nsurances (casualty insurance  health insurance  social security, damageinsurance)Regular costs fpr employee : Commuter flat rate (as long as the employer doesn’t take on the costs) Duty insurance contributions due to an insignificant occupation (general socialsecurity law) Additional contribution in the health insurance in accordance with for also insuredmembersAverage income of a qualified travel agency workerA travel agency worker erans an average of € 1,742 gross per month (approx. € 1,450 net).The average starting salary is € 1,420 up to € 1,690 gross per month.ControlFor the total turnover of a journey to an EU-country organized by a tour operator a fixedsales tax has to be paid (in Austria currently 1.8 % of the gross turnover).Insurances Health insurance, Pension insurance, Casualty insurance, Property insurance , ,….
  5. 5. page 5RIGHTS OF EMPLOYEESWorking HoursThe working hours include the working time without breaks.The daily working time mustn’t be more than 8 hours and the weekly working time mustn’tbe more than 40 hours.During the daily a weekly working time the employer doesn’t include overtimeEmployment permit for foreignersThe work of foreign people in Austria is only permitted, if they are apart from the foreigners employment law they have the consent of the government agencyHoliday entitlement At first it must be agreed upon by employee and employer If the length of service in company is 25 years you have a holiday entitlement ofabout 30 workdays If you have worked in a company longer than 25 years, you have a holidayentitlement of about 36 years But if you have worked in a company under 6 months, you have a holidayentitlement of about 2 days per monthWhat happens in case of sickness? If you are ill longer than 3 workdays, it has no influence on the holidays. When you come back to work again you have to give a confirmation of sick leave.
  6. 6. page 6FOUNDING- PERMIT AND THEREQUIREMENTS Age of consent Citizenship Industry reject reasonsSpecial requirementsCertificate of qualificationThere are several options to get the certificate of qualification.Either you complete the qualifying examination successfully or you completed a secondaryschool (in which the field of expertise must be tourism).Another option is the certificate of an apprenticeship as a travel agency industry assistant.At these prospects you must have 1-2 years of practical experience.The last option is a degree in an activity as established merchant. Here you need 3-6 yearspractical experience.
  7. 7. page 7COSTSTo construct a contract:The expenses depend on the height of the capital contribution. The capital transactions tax is1 % from the capital contribution.Entry in the commercial register:The first entry must be at least € 327,--.The business administration:To get a business administration you have to pay between € 70 - € 270 for dues.Social insurance:Every associate, who holds 25 % to 49 % of, shares has the obligation to pay socialinsurance. At an attendance below 25 %, the associates don’t have to pay the socialinsurance. Business managers who had more than 50 %, are insured by the social insuranceinstitute commercial business.Corporation Tax:The corporation tax is 25 % but this duty has to be at least € 1,750,-- per year.Capital Returns Tax:For the profit which goes to the associates the business has to pay duty about 25 % ascapital.Income Tax :The income tax varies from € 0 to € 11,000,-- 0%. From € 11,000,-- to € 25,000,-- theincome tax is about 20 %. From € 25,000 to € 60,000,-- the tax accounts to about 30 %.Above € 60,000,-- it is 50 %.Sales Tax:The sales tax accounts for 10 %, if somebody wants to stay in a hotel, another 10 % forpassengers transport. The international flights are always duty free
  8. 8. page 8RUNNING COSTS ON GENERALOverhead costs for: rent electricity water salaries telephone billOther costs: PCs + desks Lockers Catalogues Telephone Travel agent partnership