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How to Start a Travel Agency in India

By Tata Capital
08 January 2026
10 mins read
1677

Despite the pandemic, the tourism industry in India is growing at an annual rate of 14%. So, it’s safe to say that now is as good a time as any to start your travel agency business in the country. But you need to be strategic and organised about it.

Starting a travel agency means getting the right licenses, partnering with airlines and hotels, figuring out visa procedures, finding the best business loan offers, among other things!

Let’s explore in detail below.

Steps to Start a Travel Agency in India

Starting a travel agency does not need to be stressful or confusing. With proper planning and procedure, you can ensure a stress-free business journey for yourself. Follow these simple steps to start a travel agency in India:

1. Decide the kind of company you want to form

Are you planning to be the sole owner of your travel agency, or do you have partners? Depending on the nature of your ownership, you can register the company as either a private limited company or a Limited Liability Partnership (LLP). But whatever you decide, know that compliances for registering will vary accordingly. And so will benefits and subsidies like affordable business loan interest rates from lender to lender.

2. Register with IATA

In today’s tourism scenario, there’s no point in opening a travel agency that only books tour packages and tickets via trains. You must cover all modes of transportation – rail, land, water, and most importantly, air. While road, rail and water travel does not require a mandatory registration, as most of it happens domestically, international air travel bookings require the IATA seal.

A travel agency, old or new, gains worldwide credibility if they are approved by the International Air Transport Association (IATA). This Association awards its seals to travel agencies once they fulfil certain norms. It also conducts free training workshops for the professional development of travel agents and provides several benefits and air services around the globe.

3. Register with the Government of India

Another important answer to how to start a travel agency in India is by becoming a Government of India approved travel agent or agency. It is not mandatory, but we strongly recommend it. Again, it’s a seal that will award your agency a legitimate status.

When you’re a registered and approved travel agency by the Indian government, travellers expect you to adhere to a certain standard. This is also why they will choose you over the non-registered travel agencies.

4. Get a GST registration number

No talk on how to start a travel agency in India is complete without mentioning GST registration. Without this registration, you won’t be able to collect Goods and Services Tax (GST) – a mandatory requirement when running a business of this kind. So, open the doors of your travel agency only once you receive your GSTIN (Goods and Services Tax Identification Number).

Also, read – How to Get a Business Loan for Travel Agency in India

Legal Formalities and Licensing Requirements

Starting a travel business in India requires completing certain legal formalities to operate smoothly. To understand how to start a travel agency and ensure compliance, register your business under the appropriate structure, such as a proprietorship, partnership, or private limited company.

Obtain necessary licenses like the GST registration, IATA accreditation (for international ticketing), and trade licenses from local authorities. It’s also essential to open a business bank account and maintain proper accounting. Following these steps will help you confidently navigate how to start a travel agency in India while staying legally compliant.

What are the Requirements to Start a Travel Agency in India?

The Government of India requires you to submit certain documents in order to obtain a travel agent license and start your travel agency.

Gathering all of the required documents to start a travel agency beforehand will ensure a smoother and more efficient business journey for you. It will also help you avoid any legal troubles down the road.

The Ministry of Tourism, Government of India, states that the following documents are required to start a travel agency in India:

1. An online fee payment of ₹3,000.

2. Attested Photographs (2 copies).

3. Proof of business operations, such as registration documents.

4. Signed Pledge of Commitment towards “Safe & Honourable Tourism” (in both English and Hindi as Annexure I & II).

5. Latest Audited Balance Sheet with the Director’s Report.

6. Income Tax Acknowledgement for the latest year.

7. Service Tax Registration Number.

8. Statutory Auditor’s certificate for Paid-up Capital (₹3 lakh or ₹50,000 for North-East/remote areas).

9. IATA Approval Letter and a copy of the IATA Accreditation Certificate.

10. Bank Reference Letter with account details.

11. Ownership Documents for the business (Proprietorship, Partnership, or Company registration).

12. Staff details (names, qualifications, experience). Minimum 4 qualified staff (1 with a Tourism Diploma/Degree).

13. PAN Card copy.

14. GST Registration copy.

15. Office premises details with minimum office size of 150 sq. ft. (100 sq. ft. for hilly areas).

16. Premises Photos.

17. Proof of Property ownership or rental.

18. Board Resolution or NOC from other partners if applicable.

Also, read – Apply instant personal loan for travel online

How to Apply for a Travel Agency License in India?

Follow the given steps to easily apply for a travel agency licence in India:

1. Register your business.

2. Fill out the application.

3. Gather the required documents.

4. Submit the completed application along with the fees.

5. Wait for document verification by the Tourism Department.

6. Pay the required travel agency license cost.

Also, read – Apply Travel Insurance Online

Financial Planning and Funding Options for Your Travel Agency

When planning how to start a travel agency or how to open travel agency in India, robust financial planning is essential. Begin by estimating your startup costs. Asses everything from business registration and licenses to office setup and marketing. Be sure to keep in mind that these vary based on the scale of your operations and the city of establishment.

Startup costs can differ significantly in Tier-1, Tier-2, and Tier-3 cities, so map out your budget carefully before you launch.

Once you’ve outlined your expenses, explore suitable funding options. Self-funding or bootstrapping helps you maintain control, while business loans tailored for travel agencies can provide working capital or funds for expansion. You could also consider support from family, angel investors, or government schemes that encourage small businesses. Choosing the right mix of funding ensures your travel agency gets the financial boost it needs to thrive from day one.

Also, read – 5 Steps to Start a Transport Business in India

Effective Marketing Strategies for Travel Agencies

Promoting your travel agency effectively is key to attracting clients and growing your business. When exploring how to start travel business or how to open travel agency, consider these strategies:

Build a strong brand identity: Create a professional logo, tagline, and a clear value proposition that sets your agency apart.
Leverage digital marketing: Use social media platforms, SEO, and PPC campaigns to reach potential travellers and drive bookings.
Develop an engaging website: Ensure your website is user-friendly, mobile-optimised, and offers seamless booking options.
Network strategically: Collaborate with event planners, hotels, and corporate clients to expand your reach.
Focus on customer retention: Offer loyalty programs, personalised travel packages, and exceptional service to encourage repeat business.

Implementing these strategies will position your agency for success and help you stand out in a competitive market.

Operational Setup: Office, Technology, and Staff Requirements

Once you’re clear on how to start a travel agency, establishing a strong operational foundation is key. This means creating an efficient office environment, leveraging the right technology, and building a capable team to support service delivery.

Office Setup: Choose a professional location that’s easily accessible to clients, whether a physical space or a virtual setup with remote capabilities. Further, a welcoming office enhances credibility for anyone exploring how to start travel agency services. Lastly, equip the workspace with essential infrastructure such as high-speed internet, phones, computers, printers and comfortable seating for clients and staff.
Technology Platforms: Invest in travel booking and reservation software to manage flights, hotels, and tours seamlessly. Consider using a CRM system to track customer details and preferences, and accounting tools to manage finances smartly. Additionally, well-designed website with booking capabilities strengthens your online presence when learning how to open travel agency in India.
Staffing Requirements: Hire knowledgeable travel consultants who understand destinations, bookings, and customer service. Further, include support roles such as marketing and back-office staff to keep operations smooth and efficient.

With this setup in place, your travel agency can deliver professional, dependable services right from day one.

Also, read – Personal loan for CIBIL 550 score & bad credit in India

Benefits of IATA Accreditation for Indian Travel Agencies

Obtaining IATA accreditation can significantly boost your travel agency’s growth and credibility. Here’s how it helps:

Direct Access to Global Distribution Systems (GDS): IATA-approved agencies can use platforms like Amadeus, Sabre, and Galileo, enabling real-time flight bookings and competitive fares for clients.
Issue Airline Tickets Directly: Accreditation allows you to issue tickets without intermediaries, improving profit margins and operational efficiency.
Enhanced Credibility & Client Trust: Being IATA-certified signals compliance with industry standards, attracting more clients and fostering long-term relationships.
Higher Commissions & Exclusive Deals: Airlines, hotels, and tour operators often offer better commissions and special discounts to IATA-accredited agencies.
Professional Training & Marketing Support: Access to IATA resources helps you stay updated with industry trends and grow your business.
Networking & Event Opportunities: Accreditation opens doors to travel expos, promotions, and partnerships that are otherwise limited.

For entrepreneurs learning how to open a travel agency in India, IATA accreditation is a key step to consider when planning how to start a travel agency in India.

Also, read – Cash credit loan – Meaning, features, rates & how it works

Essential Partnerships: Hotels, Airlines, and Local Operators

Building strong partnerships is crucial when learning how to start travel business in India. Establishing relationships with hotels, airlines, and local tour operators not only enhances your service offerings but also ensures competitive pricing and smooth experiences for your clients.

Negotiate contracts with hotels to secure room blocks and discounts, tie up with airlines for ticketing commissions, and collaborate with local operators to offer unique tours and activities. These partnerships help you provide comprehensive travel packages that stand out in a competitive market.

For entrepreneurs considering how to open travel agency, investing time in trustworthy, reliable partnerships lays the foundation for long-term growth and customer satisfaction. Remember, your network directly reflects the quality of experiences you can deliver.

Conclusion

Are you ready with your travel agency’s business plan and are looking for finance to finally launch it? Turn to Tata Capital for some of the most affordable interest rates on business finance that help cover all potential expenses of starting and running your travel agency. You can also check the nature of EMIs you’ll be paying with by using a business loan EMI calculator on our website before applying.

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FAQs

Is a travel agency a profitable business in India?

A travel agency is one of the most profitable businesses in India due to the rising travel and tourism industry of India. The country is home to countless sough-after tourist destinations, which makes running a travel agency a lucrative business.

What are the basic requirements for starting a travel agency in India?

To start a travel agency in India, you must have capital investment, IATA approval, GST and trade license registration, a team of travel agents, and a dedicated office space.

Can I work as a travel agent from home?

If an office does not suit your working style or if you are unwilling to invest in infrastructure, you can work as a travel agent from home instead, as a registered IRCTC agent.

How to start an online travel agency business?

You can start an online travel agency business with very basic requirements, including an IRCTC agent license, a computer, mobile or laptop, and a good internet connection.

How much does it cost to start a travel agency in India?

Starting a travel agency in India can cost anywhere from Rs. 50,000 to Rs. 5 lakhs, depending on your business structure, size, and requirements. This estimate also covers costs such as the application fees for a travel agent license.

How to become a travel agent in India?

To become a travel agent in India, you must first legally register your travel business and gain a travel agent license. While not mandatory, you may also complete relevant certifications, such as IATA accreditation, to boost your business.

Is IATA accreditation mandatory for a travel agency in India?

No, IATA accreditation is not mandatory to operate in India. However, it adds credibility and access to airline bookings. It’s a valuable step when learning how to start travel agency.

What are the key licenses required to operate a travel agency in India?

To operate a travel agency in India, you need key licenses such as GST registration, IATA accreditation for international bookings, and a Shops & Establishment license, depending on your business structure.

How can I get a travel agency license in India?

You can get a travel agency license in India by registering your business, obtaining GST and PAN, and applying to the Ministry of Tourism or relevant state authorities for a recognition certificate.

What are the benefits of starting an online travel agency versus a brick-and-mortar agency?

Starting an online travel agency offers lower overheads, wider reach, and 24/7 booking convenience. It’s ideal for those exploring how to start a travel agency in India efficiently and cost-effectively.

What marketing strategies work best for travel agencies in India?

Effective marketing for travel agencies includes social media campaigns, SEO-optimised websites, email newsletters, and collaborations with influencers.

How do I manage finances and pricing for travel packages?

You can manage finances and pricing for travel packages by tracking costs, setting competitive margins, factoring seasonal variations, and regularly reviewing expenses to ensure profitability and value for your clients.

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