Starting A Travel Agency In India

 

There are a number of locations in India that everyone should see at least once in their lifetime, beginning with one of the Seven Wonders of the World, the Taj Mahal. India is therefore a popular destination for both local and foreign tourists in addition to having enormous domestic tourism potential.

 

In several Indian states, including Goa and those in the northeast, tourism is the main source of income. The rush of foreign tourists into the nation has led to the cosmopolitan nation of other significant cities like Delhi, Bangalore, and Mumbai.

 

In light of all of these factors, tourism is now a necessity for the overall economic well-being of the nation. Starting a travel agency entails a number of steps and procedures, and breaking into the tourist industry is not simple.

 

 

Business Model for Travel Agencies

 

Anybody who wants to start a travel agency can do so under a variety of business structures, like private limited company registration online, LLP, OPC, Partnership or Sole Proprietorship. The decision is up to the business owners. 

 

Entrepreneurs frequently prefer private limited company to other options because of the numerous government incentives and subsidies they are eligible for.

 

Most people who want to grow their travel agency gradually do so as limited liability partnerships. 

 

Online service provision is therefore not feasible. Additionally, using the internet as a tool for business development is crucial for travel agencies.

 

The intellectual property rights regulations in India permit an entrepreneur to register a trademark in order to have a distinctive name and symbol.

 

 

Taxation of the GST for Travel Agents

 

All travel agencies with a combined annual revenue of more than Rs.20,00,000 must register for GST. 

 

The SAC codes for travel agents for outward supply are included in the following table.

 

• 998552 - Reservation of accommodations, cruises, tour packages, etc. 
• 998553 - Reservation of convention centres, congress centres and exhibition halls etc.
• 998554 - Reservation of event tickets, cinemas, entertainment, and other recreational services
• 998551 - Reservation of transport services
• 998555 - Reservation of tour operator services
• 998559 - Other travel arrangements and related services
• 997136 - Travel insurance & freight insurance services
• 998556 - Tourist guide service
• 998557 - Visitor information and tourism promotion services
• 996111 - Provision of wholesale trade services on a fee/commission or contract basis
• 996211 - Retail trade services, provided on a fee-based or commission-based basis

 

 

Who is a Travel Agent?

 

A Licensed Travel Agent is any person or organisation that assists in making reservations for:

 

• Tickets for transportation, whether by train, road, air, or sea,
• Accommodations can be found domestically or internationally.
• Tailored entertainment and excursion packages
• Any services connected to tourism.

 

Between 2020 and 2030, the employment of travel agents is projected to expand by 5%, which is slower than the average for all occupations. 

 

Despite the small expansion in employment, there are anticipated to be, on average, 7,500 new jobs for travel agents over the next ten years. 

 

The need to replace workers who switch careers or leave the workforce due to retirement is expected to be the main reason behind the majority of those opportunities.

 

How to Become a Travel Agent Approved by the Government?

 

A government-approved travel agent must meet a variety of requirements, including the quantity of invested capital, the number of employees, and the office space. 

 

These specifications must be met by an organisation in order to be recognised as a travel agency.

 

A reputable travel agency must submit the application for this in the prescribed manner to the ministry of tourism. 

 

Even though the registration process is not required, it is nevertheless preferable to work for a recognised travel agency as opposed to one that is not. 

 

Additionally, the government supports these recognitions to uphold a clear standard in the services provided by these organisations.

 

IATA Agent 

 

IATA, or the International Air Transport Association, is a global organisation that represents roughly 84% of all airlines. This travel association offers a variety of instruction manuals to travel businesses falling within its scope.

 

To take advantage of the advantages offered, it is strongly encouraged that travel agencies join IATA. The fact that this group offers significant discounts on foreign air services makes membership extremely useful for travel agencies that offer international trip packages.

 

Eligibility Criteria

 

The application for recognition in the prescribed format must be submitted along with the necessary documentation.

 

• The agency's capital must be at least Rs. 3.00 lakh.
• Along with audited balance accounts, a certificate from a Chartered Accountant outlining the agency's capital investment is needed.
• The organisation must be authorised by the International Air Transport Association (IATA) or be a General or Passenger Sales agent for a carrier that has been so authorised.
• The organisation was required to have been in operation for at least a year prior to applying.
• The company's office must be organised, maintained, and clean in India. 
• The office must be at least 100 sq ft. in areas more than 1000 metres above sea level.

 

Taxes and Fees

 

• The organisation must have submitted its IT return for the year in question.
• When requesting recognition, a fee of INR 3,000 must be paid.

 

Miscellaneous

 

• In the agency's office, the Certificate of Approval and Company Registration Online must always be visible.
• The Ministry of Tourism's judgement is final in all cases involving the recognition and renewal of licences.
• Additionally, the Ministry of Tourism has the authority to revoke a licence if it sees fit.
• But first, a Show Cause Notice will be sent to the corporation informing it of the approaching choice.

 

Conclusion

 

In terms of the GDP contribution from travel and tourism, India is ranked 12th globally. Additionally, between 2013 and 2023, a 7.8% annual growth is anticipated. 

 

Therefore, it is evident that tourism plays a significant role in the development of our nation. As a result, the Indian government has approved numerous incentives for new business ventures in the travel agency sector.