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Here’s How to Start a Travel Agency Business in India?

Posted on
Dec 29, 2022
Start a Travel Agency Business in India

Starting a travel agency may seem challenging due to needing the heavy documentation, finding the appropriate licenses, collaborating with airlines and lodging facilities, understanding the visa procedures for different countries, and finally finding the right business loan option with the most suitable terms and conditions. This informative article will teach you all you need to know about starting a travel agency business in India.

Appropriately Choose the Business Type and Structure

There is no one right answer that applies to everyone when determining the optimum company type for travel enterprises because everyone’s financial situation is unique. A professional lawyer and accountant can advise you on the ideal business entity for your travel company. They are the best and only people to do so.

Both an accountant and a lawyer should be consulted before you launch your travel company. Making the right choices from the beginning will help you avoid problems down the road with taxes and liabilities. You will have to spend some money to get this guidance, but it will be well spent. Also, you would want to ask yourself a few questions, like do you have partners in your travel firm, or do you intend to operate it alone?

You can register the business as either a private limited company or a limited liability partnership(LLP), depending on your ownership type. However, be aware that registration requirements will differ depending on your choice. Additionally, advantages and incentives like reasonable business loan interest rates will vary among lenders. 

Register with the Right Authorities

It makes no sense to start a travel agency that exclusively sells rail tickets and trip packages in the current tourist landscape. Rail, land, sea, and, most significantly, air are all necessary modes of transportation that you must discuss. Road, rail, and water travel do not need to be registered because most of it is domestic. Still, international air travel reservations need the International Air Transport Association (IATA) logo. 

IATA currently decides who should distribute air travel items and how they should be done. It sets guidelines for managing the travel industry. IATA codes, for instance, are employed wherever air travel and travel occur. Consider airline designator codes for scheduling, ticketing, and paperwork; a prefix code to categorise passengers and cargo; a baggage tag issuer code to streamline the handling of bags; and a location code to facilitate handling packages. Airlines that haven’t signed a contract with IATA can use these codes. 

You should also be registered as a travel agent with the Government of India. The Owner or a full-time employee knowledgeable about ticketing, itineraries, transportation, lodging options, currencies, customs laws, tourism and travel-related services should be in charge of the travel agency. Additionally, stronger emphasis might be placed on good communication abilities and knowledge of languages other than English.

A minimum of four qualified employees are also required. At least one must hold a diploma or degree in tourism and travel management from a university or another organisation recognised by the All India Council for Technical Education (AICTE). One of the qualified employees would be the business’s owner.

Finally, you will need a GST registration. Without this registration, you will be unable to collect any Goods and Services Tax, a mandatory requirement. You will receive a unique GSTIN (Goods and Services Tax Identification Number) upon registration. 

Business Loans Available for Travel Agencies

Multiple loan options are available for travel agencies, provided the business loan eligibility criteria are fulfilled. Due to the development and growth of the internet, business loans can also be obtained online.

Once you have decided to apply for a small business loan, check the business easy monthly instalment (EMI) calculator for your required loan amount. This calculator will give you a fair idea of what your business loan EMI will look like. Once you have met the requirements for your lender’s business loan eligibility, you can choose from a range of loans under business financing. These are what they are:

  • Term loans can establish capital when a one-time credit need arises.
  • In essence, a line of credit is an overdraft facility. It provides a lot of freedom and guarantees cash flow.
  • Business finance alternatives like invoice discounting can aid with immediate credit.
  • Loans are offered to merchants repaid through regular deductions taken directly from the point of Sale (POS) machine transactions.


You must identify what sets you apart from your rivals at every level of growing your travel agency. Give your enterprise the freedom to express its unique individuality. By doing this, the company will distinguish itself from competitors fighting for customers’ attention.

Make FlexiLoans your ally in the travel sector by obtaining funding for your company at competitive interest rates. You can precisely determine how much of a monthly payment will be made by using the online business loan EMI calculator. Therefore, act now before it’s too late! Make your aspirations of starting a successful travel agency a reality by choosing FlexiLoans’ business finance options!

Frequently Asked Questions

Why start a travel agency?

You should be aware of how robust the tourism industry is. After Covid-19, the world opened up again, and the travel business started to boom. Trip demand is anticipated to be very high. The speed of bookings is accelerating daily, and travel agents will be crucial to the revival of the travel industry.

How long does it take to get the money from the loan in your account?

Similar to most company loans, the bank determines the disbursement period. It often lasts between 3 and 10 days.

Are travel agencies under Medium Small and Micro Enterprises (MSME)?

Yes, you can register your travel agency under MSME. To do so, you must register your company in the services sector.

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