A travel agency in India today is rarely a shopfront with a ticket printer. It is a registered business, a current account, a B2B portal that gives you airline, hotel and holiday inventory at trade rates, and a way to reach customers — often WhatsApp before a website. This guide walks through each part in the order you will actually need it.
1. Decide what kind of agency you are starting
Three models cover most new agencies, and the paperwork, capital and products differ for each.
- Online / home-based agency. You book everything through a B2B consolidator portal, serve customers on WhatsApp and phone, and grow through referrals and local search. Lowest cost, fastest start.
- Retail agency with an office. Walk-in customers, a rent and staff bill, and usually a mix of air tickets, visas, holiday packages and group departures. Needs more working capital.
- Specialist operator. You build and sell your own products — fixed-departure group tours, pilgrimage circuits, corporate travel — and use a consolidator for the flights and hotels inside them.
Most agencies start online and add an office once the bookings justify it. Whichever you choose, the registration steps below are the same.
2. Register the business
Choose the legal form
- Sole proprietorship — quickest and cheapest; you and the business are the same legal person.
- Partnership or LLP — two or more owners; an LLP limits personal liability.
- Private limited company — more compliance, but what banks, corporate clients and some suppliers expect once you scale.
Identity and tax
- PAN in the business name (or your own, as a proprietor).
- GST — travel services attract GST, and the rate and input-credit position differ between air ticketing, tour packages and service fees. Registration becomes mandatory at the turnover thresholds and when you operate across states; many agencies register from day one because B2B suppliers and corporate clients ask for a GSTIN.
- Udyam (MSME) registration — optional, free, and useful for bank facilities and some tenders.
- Trade licence / shop establishment registration — required by many municipalities if you open a physical office.
Money
- A current account in the business name.
- A payment gateway or UPI business account so customers can pay you online; most gateways ask for the registration documents above.
- A small working-capital float: B2B portals work on a prepaid wallet, so you top up before you book.
3. Decide what to sell — and where the inventory comes from
| Product | Where a new agency gets it | How you earn |
|---|---|---|
| Domestic & international flights | A B2B consolidator portal — net/wholesale fares, multiple airlines and LCCs in one search | Your markup on the net fare, plus supplier incentives |
| Hotels | Consolidator or bed-bank inventory through the same portal | Markup on trade rates; commission on some contracts |
| Holiday packages & fixed departures | Resell an operator's packages, or build your own around portal flights and hotels | Package margin; group series can be your best earner |
| Visa assistance | Your own service — documentation, appointment booking, itinerary and hotel confirmations the consulate asks for | Service fee |
| Travel insurance, forex, transfers | Partner providers | Commission |
The pattern: you do not need your own airline or hotel contracts to start. You need one portal that already has them, and a margin policy of your own.
4. IATA accreditation vs a B2B consolidator
New agencies often assume they need IATA accreditation to sell air tickets. In practice most start as a sub-agent of an IATA-accredited consolidator:
- IATA accreditation gives you direct airline ticketing through the BSP, but it requires a financial guarantee, audited accounts, trained staff and ongoing compliance. It is a step for an established agency, not a first one.
- A consolidator's B2B portal gives you the same airlines' inventory at trade fares from day one, with a prepaid wallet instead of a guarantee, and the consolidator carries the airline relationships and settlement.
You can always pursue accreditation later, once your ticket volume and cash flow make the guarantee worthwhile.
5. How travel agents actually earn
- Markup on net fares. The portal shows you the trade fare; you set the selling price. This is the core of a modern agency's income on flights and hotels.
- Commission and incentives. Some suppliers and consolidators pay commission or volume incentives on top.
- Service fees. Visa documentation, itinerary planning, changes and cancellations, urgent bookings — priced as your work, not as a discount you have to justify.
Write your margin policy down before your first booking: a flat fee per ticket, a percentage, or both, with a rule for what you charge when a customer changes their mind.
6. Find your first customers
- Google Business Profile — the single most effective free step for a local agency; "travel agents in your area" is how people search.
- WhatsApp Business with a catalogue and quick replies — most Indian travel enquiries arrive here.
- A simple website that says who you are, what you sell and how to reach you; your portal handles the searching and booking behind it.
- Your network — colleagues, housing society, religious and community groups are where group departures begin.
- Repeat business — a travel agency is a relationship business; reminders for passport expiry, visa renewals and annual holidays turn one booking into ten.
7. The launch checklist
- Pick the legal form and register the business; get PAN in the business name.
- Take a chartered accountant's advice on GST and register if required or commercially useful.
- Open a current account; set up a payment gateway or UPI business account.
- Register on a B2B consolidator portal and complete its verification (PAN, GST where applicable).
- Write your margin and cancellation policy.
- Create your Google Business Profile and WhatsApp Business account.
- Top up the wallet; make a test booking end to end, including the invoice you will send.
- Announce to your network — and treat the first ten customers as your product research.
Frequently asked questions
How much money do I need to start a travel agency in India?
A home-based agency booking through a consolidator portal can start with the registration costs, a current account and a small wallet float. Costs rise with an office, staff and any accreditation. IATA accreditation needs a financial guarantee and is usually a later step.
Do I need IATA accreditation to sell air tickets?
No. Most agencies start as sub-agents of an IATA-accredited consolidator and book through its B2B portal at net fares, adding their own margin.
Is GST registration mandatory?
GST applies to travel services; whether you must register from day one depends on turnover and where you operate, and the rate structure differs by product. Confirm with a chartered accountant before your first invoice.
How do travel agents earn?
Markup on net fares, supplier commission and incentives, and service fees for their own work.
Can I register with JourneyDeal before my paperwork is complete?
You can register free and explore the portal; wallet recharge and booking need your business identity verified, so complete the registration steps in parallel.