To set up a travel agency a lot of planning goes into starting. Any kind of business is risky and the person involved should have proper knowledge of the products he/she is selling. Similarly, for the travel agency business, the person should have good product knowledge and presentation skills. Further, he/she should be clear about the product which he/she wishes to sell.

The requirement to set up a travel agency

  • The travel agency can be successful if it meets the following minimum requirements:
  • Enough finance to run the business
  • A centrally located premises or near a business center.
  • Qualified and trained staff.
  • Approvals from the government and other organization, such as India Tourism Office, Ministry of Tourism, IATA, and TAAI
  • Authorization to sell on behalf of principal suppliers, such as hotels, transport operators, etc.

Infrastructure, Location, and Adequate Finance

To set up a travel agency, the financial requirements are not very high. Investments are mostly needed for the following:

  • Buying or hiring of space for office
  • Furniture
  • Computers/laptops
  • Telephones, fax machines, photocopying machines, etc.
  • Office stationary ‘promotional material (Brochures etc.)
  • Salary for the employees.

While setting up the travel agency, first of all, we need to properly think wisely about the location of the travel agency. It should be near a business or industrial area, centrally located, or in areas, there is a demand for travel. Hence, some research should be done on this.

Approvals by Concerned Organization: A travel agency should have the necessary approvals from the concerned organization. For example, if the agency is into selling air tickets, it has to get approval from the International Air Transport Association (IATA), which is the world organization of scheduled airlines. The commission is paid only to approve travel agents by the airlines. The travel agency has to submit the application form along with other required documents.

The travel agency has to fulfill the following conditions:

  • Ability to generate and procure air passenger transportation.
  • Adequate financial status
  • Location of the travel agency near to business area; and also
  • Qualified and experienced staff.

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