Do you think that a travel agency is a business that large companies or investors can only access? Well, the truth is that there is some truth in it, but far from it is a business as inaccessible as you think. Below we show you How To Start Travel Agency In India, the requirements, and the steps you must take to achieve your goal.
How To Start Travel Agency In India
Who does not like to travel? Almost anyone you ask will likely cite “going on a trip” or “visiting new places” as one of their favorite hobbies.
Market study Feasibility Plan
The first step in opening a travel agency is to conduct a market analysis and develop an economic
The study of market variables is essential to know the context in which the agency is going to be created and to be able to choose the best possible scenario.
Among the variables to be studied are:
- Location of the agency: Is it an area with a lot of public? Are you in a commercial or busy area? Are you located in a sprawling city or town? How is the price for the purchase or rental of the premises? Do you have suitable access and nearby parking areas?
- Competition: it is clear that it is a sector where competitiveness is high. It will be rare that you are the only travel agency in your environment. In any case, you must analyze what your rivals offer and what unsatisfied demands tourists or travelers have.
- Clients: most agencies offer travel packages for all types of clients: honeymoons for young couples, trips or cruises for middle-aged couples, adventure tourism, or offers for the elderly. However, getting to know the local public better emphasizes specific packages that may have more output.
- Socio-economic context: what is the purchasing power of customers? Is it a good time to invest in this type of business, or will people be more concerned about other, more basic needs?
With the analysis of these variables in hand, it will be much easier to decide the type of tourist agency you want to open. The main options are:
- Retail Travel Agency: They offer the travel packages provided by wholesalers.
- Wholesale agency: they organize travel packages that are then offered to retailers (they usually work with several simultaneously).
- Wholesalers-retailers: they perform both functions; they are in charge of creating the travel packages and offering them.
- Now, indeed one of the issues that matter most to you is money. How much does it cost to open a travel agency?
The investment to open a travel agency is similar to that of many other businesses.
- Establishment expenses: company incorporation procedures, payment of municipal fees, insurance, etc., about 5000 – 10,000 INR.
- Rent of the premises: 10,000 INR. It may vary depending on size and location. Likewise, you could also buy the premises or already own one.
- Furniture: 25,000 INR.
- Computer hardware and software: 40,000 INR.
- Agreements with wholesale agencies, transport services, hotels, etc.: it depends on the conditions.
- Salaries of travel agents, cleaning staff, etc.
There is also the option of opening an online travel agency, which is much cheaper. For example, you will save on licenses and permits for works, furniture, or rental premises.
Choose the legal form.
Given the size as a company of a travel agency and the bond needed to set one up, the most common is that several partners form them and are constituted as a Limited Company.
Some of the largest in the world may have another legal form, for example, a Public Limited Company, but they are already companies with a massive volume of business.
The brand image is one of the most critical factors for your travel agency to take off from the beginning. However, branding is a process that extends throughout the entire life of the company. The brand image is created, reinforced, and empowered.
Name or naming
Choosing a name is one of the first steps in creating a travel agency. Some of the tips that we can give you are:
- Choose names that evoke freedom, an adventurous spirit, or that refer to stages or vacation periods.
- Use words related to travel, tourism, activities, etc.
- Adapt the name to the type of business. An agency that offers all kinds of trips is not the same as another specializing in rural or mountain tourism.
- It is essential to choose a name that can be used as a domain on the internet. There are many tourism, travel, and similar websites that could coincide with the name of your agency, and that does not interest you.
- We recommend that you avoid proper or combined names of partners. It can work in other types of businesses, but in this case, it gives the feeling of a company that is too small and familiar.
Do not rush in choosing the name. The important thing is that it has a hook and is easy to remember. Let the mere mention of your name illuminate the mind with the image of your agency.
We are not experts, but we leave you some examples of Naming that we have come up with (we have not checked if the names are already chosen, they are simple examples):
- Excelsior Travel
- Travel Adventure
- Flying I go
- Eden Travel
- Touring Travel
- PRO excursions
- Fly free
- Sea and mountain
- The Paradise
- World Tour Travel
- Trip Adventure
- Condor Travel
- North Compass
- Atlas Tours
- Global Travels
Some of the tips you should follow to create a travel agency logo are:
- Simple: in any business sector, they will tell you that the idea is to design a simple logo and not excessively ornate. Usually, it is recommended not to use more than three colors and two different fonts.
- Thematic: your business is a travel agency, and the logo should make it very clear. It must also be adapted to the type of business you offer; for example, mountain tourism does not make sense that an umbrella appears in the logo.
- Relevant: the tone of the logo should reflect the spirit of your company. For example, if you are an agency specialized in travel for young and adventurous people, you could use a more colorful logo with a more daring design.
- Easy to remember: that allows you to quickly associate the logo with your company’s name and the type of services you offer.
- Versatile: it should work in different colors and formats, even black and white. You likely use different versions of the logo in other media, so it must be adapted to all of them (web, social networks, brochures, press releases, advertisements in the written press, etc.):
- Timeless: the logo defines the agency’s image from the beginning and will do so for a long time. Therefore, it must be timeless and not based on fashions or trends of the moment.
The design of an attractive logo is essential. If you want to ensure a professional result, it is best to go to a company specialized in logo design.
You can create a logo from canva or another online portal free of cost. If you don’t want to spend much on it, we recommended hiring local graphic designers.
Creation and dissemination of the brand image
The name and logo are only the beginning of the construction of the agency’s branding. The corporate image must be strengthened in all aspects of the business:
- Showcase, and decoration of the interior of the premises.
- Web page.
- Social media.
- Press releases and other communications with suppliers or the media.
- Emails, brochures, business cards, and other customer communications.
- Employees: they do not need to wear a uniform, but they do have to have an aesthetic in line with the agency’s image.
Requirements to open a travel agency
Among the requirements to open a company of this type is, precisely, that it complies with what the regulations understand by a travel agency. That is, businesses whose activities include
- Mediating in the purchase and reservation of tickets through transport, hotels, accommodation, or tourist activities.
- Organize and sell package tours, packages with at least two of the following three elements: transportation, housing, and tourist services.
- Sell and organize so-called day tours or excursions.
- Offer other types of services that are within its sector of activity according to current regulations.
Likewise, to carry out their activity effectively, travel agencies can also offer other services to their clients. Among the responsibilities of a travel agency may also be:
- Currency exchange.
- Promotion of information for tourists and travelers.
- Baggage management.
- Subscription of travel insurance policies.
- Provision of buses, trains, airplanes, ships, and other means of transport.
- Rental of cars, minibusses, vans, or different types of land vehicles, with or without a driver.
Procedures to open a travel agency
Taking into account that the travel agency that you are going to open will be constituted as a Limited Company, the procedures that you must follow are the following:
- Register the company name in the Mercantile Registry.
- Open a bank account in the name of the company. It must be exclusive, and the initial social capital of the agency must be entered into it.
- Drafting of the bylaws of the agency. It must be done in a consensual way with the partners.
- Sign the public deed. The partners must be present, and it must be done before a notary public