Get the funds to start a travel agency business and cover essential expenses. Find out how to set it up and consider a business loan to invest in growth.
✓Minimal Documentation ✓Flexible Repayment ✓Collateral Free Loan | Apply for Business Loan Now!
In 2024, India's travel and tourism industry accounted for approximately 9.1% of the country's total GDP, which was over 11.10 trillion U.S. dollars. This marked a nearly 12.1% growth compared to the previous year. This shows that starting a travel agency business can be a profitable venture.
Securing the right financial support is crucial whether you are launching a new travel agency or expanding your existing business. A business loan for a travel agency can provide the necessary capital to set up operations.
With flexible repayment options and competitive interest rates, these loans make it easier for travel agencies to thrive in an industry that demands innovation and efficiency. You can use the funds to start your enterprise from scratch or to diversify and expand your offerings.
Starting a travel agency can be an exciting and profitable venture, especially with the growing demand for professional travel planning. Follow these steps to set up a successful travel agency business.
1. Define Your Niche
Identify the type of travel services you want to specialise in. Choosing a niche allows you to focus your efforts, attract the right audience, and build expertise in a specific area.
Some popular niches include:
Honeymoon vacations
Corporate travel
Adventure travel
Destination weddings
Senior and family travel
2. Research the Market and Trends
Before launching your travel agency, conduct thorough market research. This research will help you create a strong business strategy and make informed decisions.
Your target customers and their travel needs
The competition and their pricing models
Current trends and emerging opportunities in the travel industry
3. Create a Business Plan and Company Name
Outline your business structure, marketing strategy, and financial plans. Decide whether to run a physical agency or an online travel business. A well-planned strategy helps attract investors and ensures long-term success.
4. Make a Budget
Estimate the startup costs for your travel agency, including office setup, marketing, staff salaries, and registration fees. You can take a business loan to fund your agency’s launch.
5. Register with the International Air Transport Association (IATA)
If your agency will book international flights, register with the IATA. This move adds credibility, allows you to access airline services, and provides training opportunities.
6. Register with the Government
Registering as an approved travel agency with the government enhances your reputation and increases customer trust. It can also open doors to government benefits and subsidies.
7. Set Up Your Office and Team
Decide whether to operate from home or rent a commercial space. If you’re hiring staff, choose team members who share your passion for travel and offer excellent customer service.
8. Build Partnerships
Strong partnerships with hotels, airlines, and local tour operators can help you offer better packages and exclusive deals. Consider collaborating with:
Cultural and adventure travel providers
Health and wellness retreats
Transportation services
Cruise lines and voluntourism projects
9. Establish an Online Presence
Create a website and social media profiles to promote your services. Use SEO, digital marketing, and social media ads to attract customers.
10.Advertise the Travel Agency
To gain attention, implement both traditional and digital marketing strategies. Consider:
Running promotional offers during the launch
Organising local travel events
Using content marketing and influencer collaborations
Starting a travel agency in India requires proper registration and licensing to ensure compliance with government regulations. Below are the key steps and requirements.
Registering with the Ministry of Tourism
To legally operate a travel agency, you must apply for a licence through the Ministry of Tourism by submitting:
A duly filled application form
Proof of business registration
Financial statements
Staff qualification details
Character certificate
Compliance with the required capital amount
For international travel services, IATA accreditation may be necessary
Governmental Acknowledgment
The Additional Director-General of the Ministry of Tourism must recognise the agency. This recognition is valid for five years and involves:
Inspection and preliminary report submission
Review by the Regional Director and a five-member TAAI (Travel Agents Association of India) team
Good and Services Tax (GST) Registration
Get the GST registration done to meet tax requirements and ensure smooth financial transactions. This registration is essential for issuing tax invoices and claiming input tax credits.
Trademark Registration
Obtain a trade licence from your local municipal authority to operate your travel agency legally. It also helps demonstrate compliance with local business regulations. Registering a trademark is essential to:
Protect the brand identity of the travel agency
Prevent unauthorised use of the business name/logo
Labour Law Compliance
Ensure compliance with labour laws when hiring staff, including preparing employment contracts and providing insurance coverage. Consult professionals such as company secretaries for proper corporate governance.
Proper financial planning ensures the success and sustainability of your travel agency. Here is a guide on the expenses, financing options, and the steps to apply.
To successfully launch and operate a travel agency, securing a business loan may be necessary to cover various essential costs. Here are the primary areas where a loan can help:
Working Capital for Daily Operations
A travel agency’s daily expenses can vary, particularly with seasonal demand. A business loan can provide working capital, ensuring you cover operational costs without worrying about cash flow issues. These expenses include:
Salaries of employees
Rent for the space
Utility bills
Office supplies
Staffing and Human Resources
Expanding your workforce is a key reason to take out a loan, particularly during busy periods. A loan can help with:
Training and development of employees
Hiring high-quality talent
Creating a customer support team
Expanding Services or Offerings
A loan can support your efforts to diversify and attract more customers. You may use the loan for:
Guided tours or special activities
Customised travel packages
Travel insurance or other add-on services
Marketing
Advertising your business to attract potential customers is one of the biggest expenses for a travel agency. You will need funds for the following:
Press and digital advertising
Social media marketing
A well-optimised website for online bookings
You can now easily apply for a business loan with minimal documentation through Bajaj Markets. Here are the partner lenders and the interest rates they offer:
Lenders |
Starting Interest Rates (p.a.) |
Bajaj Finance Limited |
14% p.a. |
Aditya Birla Finance Limited |
22% p.a. |
IIFL Finance |
16.50% p.a. |
FlexiLoans |
18% p.a. |
KreditBee |
18% p.a. |
Lendingkart |
19.20% p.a. |
Ambit Finvest |
20% p.a. |
InCred |
24% p.a. |
UGRO Capital |
24% p.a. |
Indifi |
22% p.a. |
Credit Saison |
22% p.a. |
Protium |
20.50% p.a. |
AYE Finance |
29.50% p.a. |
Disclaimer: The mentioned rates are subject to change at the lender’s discretion.
To apply for a travel agency loan via Bajaj Markets, you need to fulfil these general requirements:
You should be between 21 and 60 years of age
You must be a citizen of India
You need to have a good CIBIL score
You can apply if you are self-employed (such as a trader or manufacturer), or part of a partnership, LLP, or private company
Your business must have been operational for at least 1 year
Your business should have an annual turnover of ₹1.5 Lakhs or more, as per the Income Tax Return (ITR)
Additionally, here are some documents you need to submit:
Identity Proof: Passport, PAN card, Aadhaar card, Voter’s ID, or Driving Licence
Address Proof: Lease agreement, Aadhaar card, utility bills, or passport
Income Proof: Bank statement for the last 6 months, ITR, income statement, Profit and Loss statement, and balance sheet for the last 2 years
- Business Proof: Sole Property Declaration, Partnership Deed, or copy of the company’s memorandum and articles of association
How to Apply for a Business Loan on Bajaj Markets
Now that you know how to start a travel agency business in India, plan on getting the right financing. Getting a business loan through Bajaj Markets is quick and simple. Just follow these easy steps:
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Go to the ‘Business Loan’ page under the ‘Loans’ section
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Click on the ‘Check Offers’ button at the top-right corner of the page
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Fill in your basic details on the application form
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Click on ‘Check Your Offer’ to continue
The government offers various schemes to support Micro, Small, and Medium Enterprises (MSMEs) by providing financial assistance and credit access to help businesses start, grow, and expand. Some of the key schemes include:
Pradhan Mantri MUDRA Yojana (PMMY)
This scheme provides loans up to ₹20 Lakhs for small-scale businesses under the following categories:
Shishu: Up to ₹50,000
Kishore: ₹50,000 to ₹5 Lakhs
Tarun: ₹5 Lakhs to ₹10 Lakhs
Tarun Plus: ₹10 Lakhs to ₹20 Lakhs
Prime Minister’s Employment Generation Programme (PMEGP)
Implemented by the Khadi and Village Industries Commission (KVIC), this scheme provides financial aid for setting up new micro-enterprises. The maximum project cost is ₹25 Lakhs for manufacturing units, and ₹10 Lakhs for service-based businesses.
Credit Guarantee Trust Fund for Micro and Small Enterprises (CGTMSE)
This scheme, in collaboration with the MSME department and the Government of India, offers guaranteed coverage Up to ₹500 Lakhs without requiring collateral or third-party involvement. Eligible beneficiaries include:
New and existing MSMEs in manufacturing or services
Self-Help Groups (SHGs)
Joint Liability Groups (JLGs)
Frequently Asked Questions
How do I start a travel agency?
To start a travel agency business in India, you must follow these steps:
Define your niche
Register your business and obtain necessary licences (e.g., IATA accreditation)
Set up an office or online presence
Build partnerships with travel suppliers
Implement marketing strategies to attract customers
What are the benefits of registering with IATA?
International Air Transport Association (IATA) registration allows you to book international flights, access global travel networks, and gain credibility in the travel industry.
Do I need to provide collateral for a business loan for a travel agency?
No, most lenders available on Bajaj Markets do not ask for collateral for a business loan. You can get funding for your business without risking your assets.
What is the maximum loan I can get for a travel agency business?
On Bajaj Markets, you can explore multiple lenders and get a loan of up to ₹50 Lakhs with repayment tenures of up to 96 months.
With a substantial loan amount, you can start your business with ease. Remember, the amount you qualify for depends on various factors, including your credit score.
