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.
How to Start a Travel Agency in India
Starting a travel agency requires you to have a clear vision of your business model, whether online or offline, travel niche, and knowledge of all the necessary documentation and registrations. You must register your travel agency and obtain mandatory licenses, such as a travel agent license. Read on for a step-by-step guide on how to start a travel agency in India.
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.
Additional Read – How to Choose the Right Business Loan for Your Startup
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).
Additional Read – How to Submit Your Business Loan Documents like a Pro and Get Them Approved?
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.
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.
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.
FAQs
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.
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.
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.
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.
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.
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.
22 April 2025
5 mins read
Previous Post
