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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.
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.
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:
Before launching your travel agency, conduct thorough market research. This research will help you create a strong business strategy and make informed decisions.
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.
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.
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.
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.
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.
Strong partnerships with hotels, airlines, and local tour operators can help you offer better packages and exclusive deals. Consider collaborating with:
Create a website and social media profiles to promote your services. Use SEO, digital marketing, and social media ads to attract customers.
To gain attention, implement both traditional and digital marketing strategies. Consider:
Starting a travel agency in India requires proper registration and licensing to ensure compliance with government regulations. Below are the key steps and requirements.
To legally operate a travel agency, you must apply for a licence through the Ministry of Tourism by submitting:
The Additional Director-General of the Ministry of Tourism must recognise the agency. This recognition is valid for five years and involves:
Obtain GST registration to comply with tax regulations and facilitate seamless financial transactions. This registration is necessary for issuing tax invoices to clients, claiming input tax credits, and ensuring your travel agency operates legally and efficiently within India’s taxation framework.
Secure a trade licence from your local municipal authority to legally operate your travel agency. This licence also serves as proof of compliance with local business regulations and helps establish credibility with clients and partner organisations. Registering a trademark is essential to:
Adhere to labour laws when recruiting staff, including drafting employment contracts and providing necessary insurance coverage. Seek guidance from professionals, such as company secretaries or legal advisors, to ensure proper corporate governance and smooth management of your travel agency operations.
Establishing a travel agency in India requires meticulous financial planning. Factors such as the city of operation, the range of services offered, and the scale of the business can significantly influence your investment needs. The following cost analysis provides a structured investment estimate tailored to Tier-1, Tier-2, and Tier-3 cities, highlighting how these elements can determine your overall capital requirements.
| City Tier | Small-scale Operations (₹) | Medium-scale Operations (₹) | Large-scale Operations (₹) |
|---|---|---|---|
Tier 1 |
₹3–5 Lakhs |
₹10–15 Lakhs |
₹20 Lakhs and above |
Tier 2 |
₹2–4 Lakhs |
₹7–12 Lakhs |
₹15 Lakhs and above |
Tier 3 |
₹1–3 Lakhs |
₹5–8 Lakhs |
₹10 Lakhs and above |
Disclaimer: These cost estimates are indicative and intended for guidance purposes only. Actual investment requirements may vary depending on factors such as location, service offerings, office size, and market conditions. It is advisable to consult industry experts for accurate budgeting and financial planning specific to your travel agency business.
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:
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
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
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
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 apply hassle-free for a business loan with only the necessary documentation through Bajaj Markets. Below is a list that mentions the partner lenders and the interest rates they offer:
| Available Offerings | Minimum Interest Rate | Maximum Tenure |
|---|---|---|
22% p.a. |
36 months |
|
20% p.a. |
36 months |
|
29.50% p.a. |
30 months |
|
14% p.a. |
96 months |
|
18% p.a. |
42 months |
|
16.50% p.a. |
48 months |
|
24% p.a. |
60 months |
|
22% p.a. |
36 months |
|
18% p.a. |
36 months |
|
19.20% p.a. |
36 months |
|
20.5% p.a. |
36 months |
|
22% p.a. |
36 months |
|
24% p.a. |
72 months |
|
15.50% p.a. |
60 months |
|
16% p.a. |
72 months |
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:
Additionally, here are some documents you need to submit:
When seeking a business loan to launch a travel agency in India, lenders assess both personal and business credit profiles. A personal CIBIL score of 700 or higher demonstrates reliable repayment behavior, lowering credit risk and improving the chances of favorable loan terms. For registered companies or partnerships, lenders also examine the Company Credit Report (CCR) from credit bureaus like TransUnion CIBIL, which provides details on the company’s credit exposure, repayment history, liabilities, and assigns a CIBIL Rank from 1 to 10, with Rank 1 representing the strongest creditworthiness. By reviewing both personal and business credit standings, lenders can evaluate the overall financial health of the travel agency. Maintaining punctual payments, minimising overdue accounts, and complying with regulatory requirements can greatly enhance the likelihood of loan approval. This also includes supporting investment in office setup, marketing, staffing, and daily operations.
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:
Click on the 'CHECK ELIGIBILITY' button on this page.
Enter your personal and business details in the application form.
Pick a lender from the listed choices.
Decide on the loan amount and repayment period that suits you.
Submit your application for assessment.
The Government of India offers several schemes to provide financial support and assistance to Micro, Small, and Medium Enterprises (MSMEs) in the travel and tourism sector. The following programs can help travel agency entrepreneurs access funding, upgrade infrastructure, develop skills, and expand their business operations:
| Scheme Name | Description |
|---|---|
Collateral-free loans for small businesses, helping travel agencies fund office setup, staff, and working capital. |
|
Provides guarantee-backed loans without collateral to micro and small enterprises, including travel agencies. |
|
Supports SC/ST and women entrepreneurs with funding to start travel businesses or expand existing ones. |
|
Subsidised loans for new MSMEs, enabling travel agencies to establish operations and generate employment. |
|
Training and mentoring programs to enhance business management and service delivery skills. |
|
Technology Upgradation Fund Scheme (TUFS) |
Assists in upgrading technology and equipment for improved efficiency, including booking software and office infrastructure. |
| State | Description |
|---|---|
Uttar Pradesh – ODOP |
Promotes district-specific MSMEs, helping travel agencies gain local recognition and support. |
Maharashtra MSME Development Scheme |
Offers financial incentives, subsidies, and skill development for travel businesses. |
Karnataka Creative Industries Support |
Provides funding, mentoring, and advisory support for travel and hospitality enterprises. |
Tamil Nadu MSME Promotion Policy |
Grants financial aid, infrastructure support, and training programs for travel agencies. |
Gujarat Startup & MSME Support Program |
Offers financial assistance, marketing support, and capacity-building for new travel agencies. |
Andhra Pradesh – ADEETIE Scheme |
Supports adoption of energy-efficient technologies and operational efficiency for MSMEs, including travel businesses. |
Disclaimer: These Central and State Government schemes may or may not be applicable for securing business funds for starting a travel agency in India. It is important to review the eligibility criteria, terms, and conditions of each scheme before applying to ensure it aligns with your business requirements.
Yes, starting a travel agency in India can be profitable, given the country’s growing tourism industry and rising domestic and international travel demand. Success depends on effective marketing, niche offerings, customer service, and partnerships with hotels, airlines, and tour operators. Planning and efficient operations are key.
Starting a travel agency in India typically requires an investment of about ₹15 Lakhs, depending on the scale. Costs include office rent, computers, booking software, marketing, and licensing. Home-based or small agencies can start with minimal capital, while larger operations with multiple staff and branches need higher investment.
To register as a travel agent in India, apply to your State Tourism Department or Ministry of Tourism. Provide business proof, identity documents, and a completed application. Registration enables access to official permissions, tourism associations, and recognition required for partnerships with airlines, hotels, and tour operators.
An IATA (International Air Transport Association) licence authorises travel agencies to issue airline tickets globally. It ensures credibility, allows access to IATA’s billing and settlement services, and facilitates direct dealings with airlines. Obtaining this licence requires fulfilling financial, professional, and operational criteria set by IATA.
International Air Transport Association (IATA) registration allows you to book international flights, access global travel networks, and gain credibility in the travel industry.
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.
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.
