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FOUNDATION OF A TRAVEL AGENCY

Before you open a travel agency, you have to think about where location you want to open

it.

Target group

Furthermore, we have to think about which people we want to focus on, further is to appeal

to the people.

After this you have to become aware of the needs of the consumers.

Location

Then 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 where

everyone can notice it.

Competition analysis

The next point is to look at which advantages the competition has and define your own USP.

Finance plan

A finance plan is another vital element for opening a travel agency. It shows how much

capital we decree.

We have to look how much money our agency has and where we can invest it.

Future concept

Our future objective is to realize our plans.

Advertisement

Finally, it is essential to promote our products and services

Costs for advertisement:

TV Commercials (15, 20, 30 seconds) 6,000 until 30,000

Poster (8-24 bend) 2,300 until 18,000

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FINANCE

Business financing is divided in two fields. These are internal financing and external

financing. The latter further divided in equity and borrowed capital.

Interest for business loans

Business loans have an interest rate of 3 %.

Backing

If 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,--.

Funding

There are federal fundings and national fundings. Federal fundings are available in Austria

but 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 % interest

Requirements for tourism-founding:

For example:

Physical, juristic persons and other types of members in business

National funding:

Land transfer tax

Law charges for entry in the commercial register for business founding

Law charges for entry in the land register for company founding

Initial capital for companies

The primary deposit of a company is € 35,000,--.

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PERMITS AND REQUIREMENTS

For the founding of a travel agency in Austria, you need a business license which you get at

the magistrate if you have the necessary professional training.

After receiving the business license, you have to register your trade. Here you can get a

start-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 commercial

court. You have to pay the related costs for this registration yourself. After two weeks you

get the order per post and you have to go to the commercial court again to get a commercial

register 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 for

the registration in the commercial register, too. He would require approx 1,000 to 3,000

Euro.

Business license= for an application you need to pay 12-65 €, but it depends on the

borough, 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 €

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RUNNING COSTS PER EMPLOYEE AND

EMPLOYER

Running 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, damage

insurance)

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 social

security law)

Additional contribution in the health insurance in accordance with for also insured

members

Average income of a qualified travel agency worker

A 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.

Control

For the total turnover of a journey to an EU-country organized by a tour operator a fixed

sales tax has to be paid (in Austria currently 1.8 % of the gross turnover).

Insurances

Health insurance, Pension insurance, Casualty insurance, Property insurance , ,….

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RIGHTS OF EMPLOYEES

Working Hours

The 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’t

be more than 40 hours.

During the daily a weekly working time the employer doesn’t include overtime

Employment permit for foreigners

The 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 agency

Holiday 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 of

about 30 workdays

If you have worked in a company longer than 25 years, you have a holiday

entitlement of about 36 years

But if you have worked in a company under 6 months, you have a holiday

entitlement of about 2 days per month

What 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.

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FOUNDING- PERMIT AND THE

REQUIREMENTS

Age of consent

Citizenship

Industry reject reasons

Special requirements

Certificate of qualification

There are several options to get the certificate of qualification.

Either you complete the qualifying examination successfully or you completed a secondary

school (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 years

practical experience.

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COSTS

To construct a contract:

The expenses depend on the height of the capital contribution. The capital transactions tax is

1 % 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 social

insurance. At an attendance below 25 %, the associates don’t have to pay the social

insurance. Business managers who had more than 50 %, are insured by the social insurance

institute 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 % as

capital.

Income Tax :

The income tax varies from € 0 to € 11,000,-- 0%. From € 11,000,-- to € 25,000,-- the

income 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 % for

passengers transport. The international flights are always duty free

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RUNNING COSTS ON GENERAL

Overhead costs for:

rent

electricity

water

salaries

telephone bill

Other costs:

PCs + desks

Lockers

Catalogues

Telephone

Travel agent partnership