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Travel Agency Business,How to Start? Investment,Profit

Updated On : 04-Oct-2024

How to open a travel agency Business plan for starting your own travel agency

The contribution of travel and tourism is huge in the economy of the world. And more employment opportunities are also being created in it. According to the data of the World Travel and Tourism Council (WTTC) , the contribution of travel and tourism to the global GDP in the year 2017 was 10.4%, while 313 million employment opportunities were created, which is 9.9% of the total employment. At present, the business of travel agency in India is flourishing very fast. More employment opportunities are being created. Talking about India, the contribution of travel and tourism in GDP growth in India can be up to 8% annually.

Apart from being more populated in India, there is also more tourist place here, due to which, more employment opportunities are being created here. Along with this, India also attracts foreign tourists due to its beautiful tourist places. And more and more foreign tourists keep coming to India. If we plan to go to a new place or travel anywhere, then we first worry about the arrangement of accommodation and traveling etc.

Because if you want to go to a new place or go on a honeymoon etc., then you do not have much idea about there and have to bear the problem of accommodation arrangements, but now to get rid of this problem, a traveling agency has opened from place to place. are being. Which gives you such a facility under which you can prepare your complete program according to your budget before you go anywhere.

What is travel agency ?

Travel agency is a medium under which all kinds of facilities related to travel and travel etc. are provided. Under this, services like Rail Ticket, Bus Ticket, Air Ticket, Car Rent, Bus Rent, Hotel Booking, Tour Package, etc. are provided. Some travel agencies also provide facilities like air ambulance.

Before opening a travel agency, you should have knowledge related to travel like which place is best to visit, hotel, where you want to open your travel agency, you should have this information. Let us now step by step we know that travel How to open an agency

Step #01 : Choose a Good Location

Travel agency is such a business that you can start from anywhere, so you should first decide that you have been asked to open a business. You just have to keep in mind that where you open the agency, there is a good internet connection, due to which it is easy for you to pay attention to all the telephone and online bookings.

If you want, you can start from home also. But if you do it in a market, it will be better. Where you will have more customers offline and can also do other work with it like making PAN card, making Aadhar card, applying passport online etc. Apart from this, you should have a computer or laptop, printer etc., after that you will have to register the company name and get a website and mobile app made.

Step 2: How much money is required to start Travel Agency Business

It is very important to know how much money you can invest before starting a business. It is very important to have a good investment to start a business, due to which you should never face financial issues.

Analyze how much money you will need to open a travel agency so that you can add that much money. Tracking startup cost is not an easy thing but you should have knowledge of it while starting a business.

If you want to start a travel agency from your home, then you will not have to spend much, but if you want to run a travel agency from office, then you need a good place, good internet connection, computer, laptop, drinking water, electricity bill, office. Hire, office attendant will have to take care of all these things.

Step 3: Understand your characteristics

As soon as you choose the place for your agency, you have to understand the need of the people and your characteristics, you have to have a good relationship with the people, you have to target your market like you have to go to the people who like to travel and you have to go to your own business. To track the need of the customer, he has to take care of the transportation from hotel to airport and from airport to hotel and understand the facilities of his agency and stay up-to-date on them.

A person starting a travel agency should understand the process of booking passport, visa, information and cruise ticket, plane ticket, railway ticket, with the help of which he can help his customers too.

Step 4: Target audience

As soon as you understand your strengths and weakness, you have to pay attention to the strategy setup of your travel agency. Understand what new you can give to people. Audience target means to track the community i.e. track those people who like to travel. For example, if a health tour is going on, then you should know how to pitch colleges.

Step 5: Open a bank account to operate a travel agency

Now you have completed the registration process of your office. So now you will need a bank account to operate your travel agency, due to which you can take care of your bookings and transactions. You must have a bank account to do your online transactions.

Step 6: Advertise and sell your service

All the work related to your travel agency has been done now, from office to registration, you have completed the whole process. Now you have to focus on the execution and marketing of your business.

You have to do marketing of your service both online and offline. You have to advertise by understanding the need of the market. Keep in mind that you have to show your advertising to your target audience only. You have to advertise on the newspaper related to travel and you have to advertise on social media too.

Required license and registration

To start a travel business, you need license and registration of certain things to complete some legal process. which are written below

• First of all you have to choose which type of company you are going to open like, Private Limited, LLP, OPC, or LLC.

• Applying for PAN Number and GST

• Become a government recognized travel agent, which is recognized by the Ministry of tourism.

• Became an agent of IATA (The International Air Transport Association). IATA is part of One World Airlines. Which operates about 240 airlines all over the world which is 84% ​​of the total air traffic.

• Register a trademark.

• Become a member of the Travel Agents Association.

• Take an authorized agency of IRCTC.

How to get IRCTC Authorized Agency ?

To take an authorized agency of IRCTC, first of all, register by visiting the official site of IRCTC, where you will be charged 10,000 registration charges and 100 rupees for stump paper. After completing the registration process, you will have to submit the documents.
Required Documents

• PAN Card
• Address Proof
• Mobile Number
• Valid Email ID
• Digital Signature Form
• 2 Photos
• Registration Form

Facility available on taking an authorized agency of IRCTC.

• Maximum Railway Ticket Booking
• Air Ticket Booking
• Bus Ticket Booking
• Cab or Taxi Booking
• Tour or Holiday Packages
• Hotel Booking
• Domestic Money Transfer
• Mobile and DTH Recharge
• Rail Tour Packages powered by IRCTC

You can do travel agency business in 3 ways

1. Tie up with other company- 

This is the easiest way to open a travel agency. In this, after registering your company name and making a website and after completing some legal process. You can work as a travel agent by tying up with any other big company like MakeMyTrip, Yatra.com, Musafir, Akbar Travel, etc. It may take you from one thousand to two thousand. Some other companies keep some security money at the time of tie up. When you do business with him, your money will be make up. 

In this process all the work will be done by your company but all the management of any tourist like travel, accommodation, travel person etc. will be done by the travel company with which you have tie up. Source of Earning-  When you book any ticket by the company tied up with your company, or book any package of tourist sightseeing, then you get commission by the company.

2. Without tie up with other company (Own Business)-

In this process there is a business of its own. It does not have to tie up with any other big companies, but it is a long process to start this business. It will also cost you more. In this process, complete management and planning has to be done by yourself.
Prepare the complete plan in this way- 

• First prepare a business plan like time management, business expenses, man power management, time management, resource management etc.

• Do market research. Which places do you want to work?

• If you go to those places to prepare a package of places like Shimla or Kashmir or any hill station, you have to go to those places from the hotels there, from the cab company, the representative company means the company that provides the man to travel the tourist. You have to deal with all of this.

• Contact the bus company

• Contact the car rental company

• Complete the legal process outlined above.

• Brand your travel agency as much as possible in the market both online and offline.

How will you earn   when you yourself provide facilities like hotel booking, bus services, car rent etc. to the customer, you have a commission on all. When fixing the rate with any other company, then keep such a rate so that you can show the customer that you are giving them a discount.

3. By taking the franchise of another big company-

Franchisee means to do business in the name of another big company, every big company opens its office in more cities to sell its product more and more. In such a situation, if you also want, you can start your business by taking the franchise of any travel company.
To take a franchise of a company, you can take from 2 lakhs to 10 lakhs.

By working with the franchise of a company, you get the customers made by that company. The growth rate of franchisees in India is 30 to 35% per annum. And the annual turnover is more than 3000 crores. To take a franchise of any company, the main conditions of the company have to be followed, such as having a proper location, having security money, having a business idea, etc.

How to make the most out of the business

After starting any business, the biggest challenge is to move the business forward in the market, you can increase your business by paying attention to the following things-

• Highlight as much of the discount as possible on the services and tour packages offered by the agency.

• Spread maximum publicity on social media, keep yourself more engaged on social media.

• From time to time, customers kept on giving more and more offers.

• B2B encouraging, means B2B Business To Business that have made the small agency with more packages than agent sales.

• Maintain a good relationship with your customer, keep the number of new customers who come and keep on messaging them with offers etc. as per their wishes from time to time.

• Website kept well, the photo collection of tourist places where packages are being sold should be kept good.

Earning from other sources through this business

• Creating PAN Card
• Creating Aadhar Card
• Applying Online Passport
• Money Transfer
• Mobile and DTH Recharge
• Online Work related to Education and Job
You can increase your earning by doing the appropriate given work with your business

Learn how to Start Travel Agency Business? How much money is required? Required license and registration.Travel Agency Business Profit

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