how to start a travel agency

07 Easy steps to start a successful Travel Agency Business in India

Want to travel the world? Ever dreamed of going on a world tour? Well, why not help others do the same, while you earn from it? Yes, we’re talking about opening your own travel agency!

A lot of people might not find this idea sound, as to how to start a travel agency in India but opening your own travel agency in India has a host of advantages. This market is vastly untapped in our country, and opening your travel agency might be simpler than you previously thought!

Moreover, it is said that India will account for 50 million outbound tourists by 2020! Analysts predict the travel and tourism sector to contribute approximately $492.21 billion to India’s GDP in 2028. This means the market for travel and tourism is growing at a rapid pace.

So well let’s see how to start travel business in India. Here are some tips on how you can set up your own travel agency in India: –

Develop an Understanding of The Tourist’s Desires

Several people have no clue as to what the majority of Indian population craves, regarding their travel needs. However, people from different regions of our country crave different travel destinations. For example, people from a region in Gujarat would have different travel preferences than someone living in Uttarakhand.

The geographical factors of a region, play a pivotal role in catering to the travel needs of people. This should be taken into consideration before you set up a travel business in a certain area.

Analyse the Market Trends

It is a well-known fact that travel businesses flourish more during a certain period of the year. For example, summers are known to attract more business for travel agencies, due to the vacations. Starting your business around this time would be quite beneficial, as there’ll be a higher demand for your services. Due to the introduction of e – Tourism Visa to foreign travelers, there has been a sharp  Increase in them visiting India as tourists. Estimates claim a 252.3 % growth for foreign tourists coming to India on an e – Tourist Visa. Such an increase means that you could benefit from targeting foreign tourists as well.

Take Care of The Legal Formalities

Once you’ve formulated a definite plan for opening your travel agency, you need to consider the legal aspects of setting up such a business-like travel agency registration process.  A few of the legal formalities to have a recognized travel agency include: –

  • You need to register the agency as per the Companies Act.
  • You need to get a GST Registration Of your agency.
  • You need to provide an application letter to the Government as well as IATA (International Air Transport Association).
  • The minimum office space should be around 100 – 150 sq. ft, depending on the region. 

There are several benefits of getting your travel agency registered under IATA. A few of them are: –

  • A badge of credibility to your travel business.
  • More exposure to your agency (as it falls under the approved travel businesses)

Hire A Professional with Certification

To assist you in the process of setting up your travel business, you should consider hiring a travel and tourism professional. Such a professional with a certification can help you guide better with the do’s and don’ts of setting up a travel agency. Moreover, such professionals have a lot of practical experience in the field, which shall be helpful in bringing some real-world experience, while setting up the business.

How to start a travel agency in India

starting a travel business in India

Provide Options for Backpack Travellers

Travelers who go on trips with bare necessities and expenses are often called as backpack travelers. Such travelers generally make their ends meet by doing some chores to meet their accommodation, living and travel expenses. These could include cleaning, washing dishes, assisting in rigorous physical work, or simply cooking dishes. If you could provide budget options for such travelers, you could tap into a market with huge potential! By 2020, 320 million International trips are expected to take place by travelers in the younger generations. This is the generation that comprises the majority of backpack travelers. Low-cost accommodation and minimum travel expense options could be provided to such travelers. As these travelers do not require a lot of necessities to live elsewhere, you could formulate packages with their basic requirements in mind.

Form Business Tie-Ups

A business tie-up is an association in which two organizations benefit by promoting each other’s’ brands or products/services. These are quite beneficial for a lot of reasons. The benefits include: –

  • Increased Client Base: – When two organizations form a business partnership, they get the benefit of directing each other’s clients through references and special discounts.
  • Commissions: – A lot of organizations offer commissions for each client they get through the partner organization. In a travel business, you can earn huge amounts in commission, especially if the partner company is in a related niche (e.g.: A hotel or resort chain)
  • Better Market Presence: – Business tie-ups lead to a lot of indirect promotion and marketing of your company. The reason is obvious, the more organizations you’re associated with, the more likely are people to know about your agency or business.

 Get Started!

Yes! Even if you haven’t set up an agency, but have a definite vision for the business, you should make your travel business known right away! A lot of people are of the notion that one has to establish a business and only then market their services. However, that’s not true! While you’re setting up a business, even though it has not yet been operational, you could still market your services by letting people know that the travel agency shall soon cater to their needs.

For example: – Suppose you seek to start a travel agency called “Kashish tours and travels” You could start its marketing by distributing pamphlets or running newspaper/social media ads stating “Kashish tours and travels: – Your one-stop, travel stop! Opening soon!”

The travel and tourism industry in India has a lot of latent potential for making money.

Why may you ask? It’s because of the following: –

  • The travel industry contributed around $208.9 billion to the Indian GDP in 2016.
  • Around 9.6% of India’s total GDP was from this sector.
  • Introduction of e – Tourist Visas has blown the travel market to new heights.
  • The relaxing of some travel barriers has made it easier for people in India to travel.

Make the most of this travel frenzy, and establish a travel agency if you feel inclined to do so!

So now you know how to start a travel agency, still, If you want help in establishing your own business (Company Incorporation), or want someone to simplify the process for you, Afleo. com can provide the perfect solution! Our well – trained and experienced staff works at helping you set a business up effortlessly!

Want to start your travel business by incorporating a company? Fill up the below-given form. We will get back to you shortly


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