How to start a travel agency in India (2026): registration, GST, tools and first customers

Short answer: To start a travel agency in India, pick a niche, register the business (sole proprietorship, partnership, LLP or private limited), get a PAN, current account, GST registration and your state’s shop and establishment registration, then sign up with suppliers for hotels, transport and flights. IATA accreditation and Ministry of Tourism approval are optional and can wait. Your first customers usually come from WhatsApp, referrals and small Meta ad campaigns for one or two well-priced packages. Confirm tax and registration rules with a CA before you launch.

Last updated: 15 November 2026. This is a practical guide, not legal or tax advice.

Step 1: Pick a niche

New agencies grow faster when they are known for something specific. A niche makes your ads cheaper to target, your packages easier to price and your WhatsApp replies easier to standardise.

• Domestic family holidays (Goa, Kerala, Himachal, Rajasthan)
• Pilgrimage tours (Char Dham, Vaishno Devi, South India temples)
• Honeymoon packages
• International short-haul (Dubai, Thailand, Singapore, Bali)
• Corporate and group travel

Domestic travel is the bigger market. Indians made about 294.8 crore domestic tourist visits in 2024. More numbers are in India’s travel market in 2026.

Step 2: Register the business

Registration	Needed?	Notes
Business structure	Yes	Sole proprietorship is quickest; LLP or private limited separates personal and business liability.
PAN and current account	Yes	Keep customer payments in a business account from day one.
GST registration	Usually	Required once turnover crosses the threshold, and suppliers and corporate clients often ask for a GSTIN earlier.
Shop and establishment registration	Usually	Under your state’s law if you have an office or staff.
Udyam (MSME) registration	Optional	Free, and useful for some loans and schemes.
Ministry of Tourism approval	Optional	Voluntary recognition for travel agents and tour operators that can add credibility.
IATA accreditation	Optional	Lets you issue airline tickets directly; has financial and experience requirements. Most new agencies book flights through a consolidator instead.

Step 3: Understand GST and TCS on travel

How you bill decides the tax. Tour operator packages are commonly billed at 5% GST without input tax credit, while hotel-only bookings or a commission model are taxed differently. On international tour packages, TCS is collected from the buyer above set limits, and the buyer can claim it back against their income tax. Rates and thresholds change with Budgets and GST Council decisions, so set up your invoice format with a CA before your first booking and show tax as a separate line on every quote.

Step 4: Set up suppliers

• Hotels: direct contracts with properties in your niche destinations, or a B2B hotel portal.
• Transport: two or three reliable local vendors per destination, with rates agreed in writing.
• Flights: a consolidator or B2B flight portal until you need IATA.
• Destination partners: for international trips, a ground handler (DMC) in each country you sell.

Step 5: Build your packages and quote format

Start with three to five fixed packages you know well, each with a day-by-day itinerary, hotel options, inclusions, exclusions and a starting price per person. A fixed package is much easier to advertise and to quote quickly. Use a clear quote layout like our travel quotation format, with tax on its own line and a validity date.

Step 6: Set up the tools

Need	Simple start	When you grow
Customer chats	WhatsApp Business app on one phone	WhatsApp Business API with a shared team inbox
Leads and quotes	A Google Sheet	A travel CRM with pipeline, itineraries and payments
Website	One page with packages, phone and WhatsApp	Package pages and a blog for search
Payments	UPI and bank transfer	Payment links with reminders

Most agencies move off the sheet when two or more people start replying to leads and quotes go missing. Adwix Atlas is a travel CRM built for this stage, and Adwix Connect runs WhatsApp for the whole team on one number. Read the travel CRM features that matter before you choose.

Step 7: Get your first customers

1. Your own network. Share your first packages on WhatsApp status and with past colleagues and friends, and ask every traveller for a referral.
2. Google Business Profile. Set it up with your office address and photos, and ask each customer for a review. Our guide to getting more Google reviews has message templates.
3. Small Meta ad campaigns. One package, one price, one destination per ad, sent to WhatsApp. In our travel campaigns, package leads cost ₹8 to ₹29 each. See Facebook ads for travel agencies.
4. Reply fast. Families ask several agencies at once. The first useful reply often wins.

Mistakes new travel agencies make

• Selling every destination instead of building a reputation in a few.
• Quoting without a validity date, then honouring old prices after rates rise.
• Taking payments into a personal account.
• No written cancellation policy.
• Spending on ads before there is a way to reply to every lead within minutes.

Frequently asked questions

Do I need a licence to start a travel agency in India?

There is no single national licence. You need the normal business registrations, such as GST and your state’s shop and establishment registration. Ministry of Tourism approval and IATA accreditation are optional and can be added later.

Can I start a travel agency from home?

Yes. Many agencies start from home with a phone, WhatsApp and a simple website. Check your state’s rules for registering a home-based business, and use a business bank account for customer payments.

Is IATA registration required to sell flight tickets?

No. New agencies usually book flights through a consolidator or B2B portal. IATA accreditation lets you issue tickets directly but comes with financial and experience requirements.

How do new travel agencies get customers?

From their own network and referrals, a Google Business Profile with reviews, and small Meta ad campaigns for one well-priced package at a time, with a fast reply on WhatsApp.

Starting an agency and want a launch plan? Book a free 30-minute call.