Starting a travel agency in India has never been more accessible. You don't need a fancy office, IATA accreditation on day one, or ₹50 lakh in capital. What you need is domain knowledge, a few registrations, and a professional way to present your packages.
This guide covers the practical steps - what actually matters versus what you can skip initially.
Step 1: Choose Your Business Model
Option A: Leisure Travel Agent (B2C)
- Sell directly to families and individuals
- Revenue: Package margins (15–25%) + hotel commissions + flight commissions
- Capital needed: ₹1–3 lakh (minimal infrastructure)
- Best for: People with existing client network (friends, family, community)
Option B: Corporate Travel (B2B2C)
- Handle company travel - MICE, employee travel, dealer meets
- Revenue: Management fees (10–15%) + volume-based hotel rates
- Capital needed: ₹3–5 lakh (need to look more established)
- Best for: People with corporate connections
Option C: Inbound Tour Operator
- Handle foreign tourists visiting India
- Revenue: Package margins (20–35%) - higher margins but seasonal
- Capital needed: ₹5–10 lakh (need MOT approval eventually)
- Best for: People in tourist destinations (Rajasthan, Kerala, Goa)
Option D: Online Travel Aggregator (B2B)
- Sell hotel/flight inventory to other agents
- Revenue: Commission on volume (thin margins, high volume)
- Capital needed: ₹10–50 lakh (technology + working capital)
- Best for: People with technology + capital
For most people reading this: start with Option A (leisure) and add corporate (Option B) within 6–12 months.
Step 2: Legal Registration
Mandatory
- Business registration - Proprietorship (simplest), LLP, or Pvt Ltd
- GST registration - Required if turnover exceeds ₹20 lakh (₹10 lakh for NE states). Register anyway from day one - clients ask for GST bills.
- PAN card - Business PAN if LLP/Company, personal PAN if proprietorship
- Shop & Establishment Act - Register with local municipal authority
- Bank account - Current account in business name (needed for GST and credibility)
Optional (But Recommended)
- IATA accreditation - Needed for direct airline ticketing. Skip initially - use consolidators or GDS portals.
- MOT (Ministry of Tourism) approval - Needed for inbound operators. Not required for domestic leisure.
- TAFI/TAAI membership - Industry associations. Good for networking but not legally required.
Cost Breakdown for Registration
| Registration | Cost | Time |
|---|---|---|
| GST registration | Free (if self-filing) or ₹2,000–5,000 (CA) | 7–15 days |
| Proprietorship (Udyam) | Free | Instant |
| LLP registration | ₹5,000–8,000 (CS fees) | 15–20 days |
| Pvt Ltd registration | ₹8,000–15,000 (CS fees) | 20–30 days |
| Shop Act license | ₹500–2,000 | 7–30 days |
| Current account | Free | 2–5 days |
Total cost to legally start: ₹10,000–25,000.
Step 3: Set Up Operations
Essential Infrastructure
| Item | Budget Option | Premium Option |
|---|---|---|
| Workspace | Home office | Small office (₹10,000–20,000/month rent) |
| Phone | Personal mobile with WhatsApp Business | Dedicated number + IVR |
| Gmail (free) | Google Workspace (₹125/user/month) | |
| Laptop | Existing personal | New (₹40,000–60,000) |
| Printer | Basic inkjet (₹5,000) | Colour laser (₹15,000) |
| Internet | Home broadband | Business broadband |
Software Tools
| Tool | Purpose | Cost |
|---|---|---|
| TripDraft | Quotation builder (AI + PDF) | ₹699/month + GST (Pro) |
| WhatsApp Business | Client communication | Free |
| Google Workspace | Email, Drive, Calendar | ₹125/user/month |
| Canva | Social media posts, creatives | ₹500/month |
| Tally/Zoho Books | Accounting + GST filing | ₹500–1,000/month |
| GDS portal (TBO/Riya) | Flight + hotel booking | Commission-based (free to join) |
Supplier Relationships
Build relationships with:
- 3–5 hotels per destination you sell (direct rates are better than OTA)
- 1–2 DMCs (Destination Management Companies) for international packages
- 1 transport vendor per city (for airport transfers, sightseeing)
- 1 visa agent (for international travel - don't do visa yourself initially)
- 1 insurance provider (travel insurance reselling)
Step 4: Define Your Niche
Don't try to sell everything to everyone. Pick 2–3 focus areas:
By Destination
- Maldives specialist
- Europe packages
- Southeast Asia (Thailand, Bali, Vietnam)
- Domestic hill stations
By Client Type
- Honeymoon couples
- Family holidays (parents + kids)
- Senior citizens (accessible travel)
- Group tours (20+ pax)
- Corporate/MICE
By Price Point
- Budget (₹50,000–1,50,000 per couple)
- Mid-range (₹1,50,000–4,00,000 per couple)
- Luxury (₹4,00,000+ per couple)
Pick a niche, build expertise, establish reputation - then expand.
Step 5: Get Your First Clients
Week 1–4: Warm Network
- Announce on personal WhatsApp, Instagram, LinkedIn
- Tell family, friends, former colleagues
- Offer a "launch special" - 10% off for first 10 bookings
- Ask for referrals explicitly: "If anyone's planning a trip, send them my way"
Month 2–3: Content Marketing
- Start posting travel content on Instagram (destination reels, packing tips)
- Share client testimonials (anonymized or with permission)
- Write destination guides (good for WhatsApp forwarding)
- Join local travel-related Facebook/WhatsApp groups
Month 3–6: Paid Acquisition
- Google Ads for destination-specific keywords ("Thailand package from Delhi")
- Instagram/Facebook ads targeting "interested in travel" audiences
- Local partnerships (photographers, wedding planners, corporate event planners)
Ongoing: Referrals
- After every successful trip, ask: "Would you refer us to friends?"
- Offer referral incentives (₹1,000 voucher for next booking)
- Send a small thank-you gift (₹500 hamper) after high-value bookings
Step 6: Pricing Your Services
The Margin Structure
| Revenue Source | Typical Margin |
|---|---|
| Hotel markup | 15–25% over your contracted rate |
| Flight commission | 0.5–2% (very thin, barely worth it alone) |
| Package markup | 15–20% on total package value |
| Activity/sightseeing commission | 20–30% |
| Visa processing fee | ₹500–2,000 per application |
| Travel insurance commission | 15–30% of premium |
| Service fee (consulting) | ₹2,000–5,000 per itinerary |
Pricing Example
Your cost for a Bali 5N/6D couple package:
- Flights: ₹45,000
- Hotel (5 nights): ₹35,000
- Activities: ₹15,000
- Transfers: ₹8,000
- Visa: ₹4,000
- Your cost: ₹1,07,000
Your selling price:
- Package: ₹1,30,000 (21% markup)
- Plus GST: ₹6,500
- Client pays: ₹1,36,500
- Your gross profit: ₹23,000 per couple
Common Mistakes New Agents Make
- Underpricing to compete - racing to the bottom kills your business. Compete on service, not price.
- No written quotation - verbal quotes lead to disputes. Always send a PDF.
- Booking before collecting advance - never confirm hotels/flights without 50% payment.
- Not keeping records - every transaction needs a trail. GST audit can happen after 2 years.
- Trying to do everything - you don't need IATA, a website, a mobile app, and 50 destinations on day one. Start with 3 destinations and master them.
Year 1 Financial Expectations
Being realistic:
| Month | Revenue | Profit (approx) |
|---|---|---|
| Month 1–3 | ₹0–2 lakh | Likely loss (setup costs) |
| Month 4–6 | ₹2–5 lakh | Break-even |
| Month 7–12 | ₹5–15 lakh/month | ₹50,000–1,50,000 profit/month |
| Year 1 total | ₹50 lakh–1 crore | ₹5–12 lakh net profit |
These are realistic numbers for a solo agent working full-time with an active client network.
How TripDraft Helps New Agencies
Starting out, you can't afford to look amateur. TripDraft gives you:
- Professional branded PDFs from day one (no Canva skills needed)
- AI that parses client WhatsApp messages into structured quotes
- A system that makes a one-person agency look like a 10-person operation
- Free tier (10 quotes/month) to start, ₹699/month + GST Pro as you grow
Maaz is the founder of TripDraft. He works directly with Indian travel agents on quotation, costing and GST/TCS workflows.