Startup Business

How to start a tour and travel business ?

Complete guide on starting a tour and travel business in India:

Starting a tours and travel business needs lots of hard work. But at the same time tours and travels is one of the most profitable businesses to start. Especially in post pandemic time people are facing stress and other mental disorders that the pant make has cost and people are looking for a ways to just take a brief break from work and their daily routines. And the best way to take a break from your life and enjoy a stress free time is taking a vacation.

This is where were a tours and travels business comes in. A tour’s and travel business helps the people have a stress free holiday. This is a very competitive field in business with hard work you can make your business thrive.

If you are someone who wants to make your first step into the business world as a tours and travels business owner then you have come to the right place. In this article we will walk you through all the steps that are required to start a tours and travels business of your own.

The tour and travel business is experiencing exponential growth due to the increasing desire for unique travel experiences and the exploration of new destinations. People are seeking immersive and authentic encounters that create lasting memories. As a result, starting a tour and travel business presents a lucrative opportunity to cater to this demand.

Read More: Complete Details on Starting Food Catering Business

Market Potential of a tour and travel business:

The market potential of a tour and travel business is immense. With a growing desire for travel experiences and an expanding global tourism industry, there is a vast market of potential customers. Travelers with diverse interests, from adventure enthusiasts to wellness seekers, create opportunities for specialized tour packages.

Technological advancements and emerging markets further contribute to the market potential. Additionally, the rising demand for sustainable and responsible tourism practices and the popularity of niche experiences offer avenues for tour and travel businesses to cater to specific customer segments. By understanding and adapting to these trends, businesses can tap into the thriving market and create memorable travel experiences for their customers.

The market of a tour’s and travel agency is ever growing not only in India but also internationally. Once you become a successful business then you can expand your company into various states of different countries. The market since it’s growing will help you become a successful business worldwide. The market of this business is predicted to grow 5% every year till the year 2030.

Types of tours and travels companies:

  • Leisure Travel Agency
  • Offline Travel Agency
  • Wholesale Travel Agency
  • Niche Travel Agency
  • Online Travel Agency
  • Business Travel Agency

Requirements to start Tour and Travel Business:

To start a tour and travel business, there are several requirements to consider which is given below:

  • Business Registration and Licenses
  • A proper Business Plan
  • Must have Knowledge of this Industry.
  • Must have proper financial resources to start and sustain your tour and travel business.
  • Obtain the necessary insurance coverage to protect your tour and travel business from potential risks and liabilities.
  • Invest in the right technology and infrastructure to support your operations.
  • Establish relationships with suppliers, such as hotels, transportation providers, guides, and local vendors, to offer comprehensive travel services to your clients.
  • You have to develop a strong brand identity and marketing strategy to attract customers.
  • Customer satisfaction and positive reviews are crucial for the success and growth of your travel business.

tour and travels business plans

Types of tours and travels plans offered in India:

  • Adventure
  • Rural
  • Religious
  • Wellness
  • Heritage

Read More: Complete details of Papad Making Business.

Cost of starting Tour and Travel Business:

The cost of starting a travel business can vary depending on several factors, such as the type of travel business, location, scale of operations, and specific services offered. Cost of starting a tour and travel business is not very costly in India as compared to other businesses. The cost will start from around 1,50,000 to 10,00,000. Which when compared to the profit of this business is a very small amount. Here are some key cost considerations to keep in mind:

  • Licensing and Permits: Obtaining the necessary licenses and permits to operate a travel business legally is an essential step. The costs associated with licenses and permits can vary based on local regulations and the type of business structure chosen (e.g., sole proprietorship, partnership, or corporation).
  • Office Space and Equipment: Renting or leasing office space is a common expense for travel businesses. The cost will depend on the location and size of the office. Additionally, you may need to invest in office equipment such as computers, printers, software, and communication systems.
  • Website Development and Online Presence: Building a professional website is crucial for promoting your travel business and attracting customers. The cost will depend on the complexity of the website, including design, development, hosting, and ongoing maintenance. You may also need to allocate a budget for online marketing and search engine optimization (SEO) to enhance online visibility.
  • Marketing and Advertising: Developing an effective marketing strategy is essential to attract customers. This may involve various marketing activities, such as digital advertising, content creation, social media marketing, and print materials. The cost of marketing and advertising can vary depending on the channels and tactics used.
  • Staffing and Training: Hiring and training knowledgeable staff is vital for providing quality service to customers. The costs will include salaries, benefits, training programs, and ongoing professional development.
  • Technology and Software: Travel businesses often require specialized software for booking management, customer relationship management (CRM), accounting, and other operational tasks. The cost will depend on the specific software solutions chosen and any ongoing subscription fees.
  • Insurance: Obtaining appropriate insurance coverage is crucial to protect your travel business from potential risks and liabilities. The cost of insurance will depend on factors such as the type of coverage required, the size of the business, and the services offered.
  • Miscellaneous Expenses: There may be additional costs to consider, such as legal fees for contract review, accounting services, business registration fees, initial inventory costs (e.g., brochures, promotional materials), and travel trade association memberships.

Steps to start a Tour and Travel business:

  1. Choose the niche for your business

First thing to do before starting a tours and travels business is to choose a niche. Choosing a niche which you feels right for the business you are starting is very important. This will help you understand your business more and also in working on ways to improve and expand your business. If you want to start a travel agency which specializes in international travel then you know the type of audience you’ll have to deal with. Same as that if you travel agency is one that makes honeymoon getaways easier for couples then that’s the kind of vacation plans your company should have. That’s why having a niche is important for a travel agency.

  1. Decide on a name and logo

Once the niche is decided then you need to start working on the name for your company. While choosing the name remember that the name is what you’ll have to register and use while going to both and national and international markets.

The next thing you need to focus on is the logo for your company. This logo will be used all around the market so be sure to hire a good logo designer. The name and logo should represent the types of services your company offers. Avoid names that are based on a specific location as it will effect in the expansion of your business in the future. You can use online business name generators to create a unique name for your business.

After choosing the name and logo for your company may sure to register it under trademark registry of India so that your logo her name does not get copied by other organizations.

  1. Decide the type of company you want

It is a crucial point to decide what type of company you want. Do you want a company that is share between partners or do you want the soul custody of your company? Based on this you can register for private limited companies or Limited liability partnership (LLP).

It is not necessary that you start a company on partnership because you don’t have enough financial support full stop there are loans that every bank offers for starting business full stop if you want to solve custody of your business then you can reach out to the banks near you and enquire about these loan plans.

  1. Register with IATA

If you want to start a tours and travels business then you should definitely go internationally. You should have plans that include international tour packages. And being a local tours and travels business does not help in his market.

India is a fast growing country and tours and travels business is predicted to have a 14% increase in its market per year. So registering with IATA is very crucial.

Your company should include all types of bookings like transportation accommodation food etc. If you are a company that provide all these things then you are turnover will be beyond limits.

  1. Register your company under Indian government
  • If you want to start tours and travels company in India then you should register your company under the Indian government.
  • You should register your company and the ministry of tourism.
  • You should make sure that you have all kinds of documentations required for starting travel agency.
  • Based on the type of transpiration provided by your company you should have documentations that is legal both for international and national transportation of your clients.
  • For example, if you are company has true transportation then you should resistor with the road regional transport office.
  • You should tie up with air transport association for any kinds of airline travel.
  • And for railway travel the you should enquire with Indian railway services.
  1. Register for GST

For collecting GST tax from your clients it is needed in India that you have a GST registration. If you are a company that has done that just a registration under the Indian government then you are eligible to collect GST tax from your clients for all services that you offer.

License required for tour and travel business:


Limited liability partnership or one person company as them registration that a person should acquire for starting a tours and travels business. If you are partner up with people then you should choose LLP registration if you are a soul owner of your company then you can go for OPC registration.

Travel agent registration

A tours and travel company should hold a government certified travel agent registration. It can’t be sad as a necessary registration to start the business but it can benefit you in many ways. By registration you can have your company promoted without cost by Indian government under the scheme ‘recognition of tourism service providers’. This scheme comes under the ministry of tourism in India.

Read More: How to Start a Cloud Kitchen Business in India ?

Profits in tour and travel business:

Tours and travels business makes up around 75% of a countries profit rate margin. So you can guess how much profit single company will be making in order to have such a big amount of turnover every year.

It is predicted that a single company will make 10 to 15% profit margin from a tours and travels business.

This profit margin will only increase if you go international. International tours and travels will make a much bigger profit than national or just regional to send travels businesses.

tours and travels plans

Marketing for your Tour and Travel Business:

  • After completing all the registration and setting down your foot into the business world, the next step is marketing.
  • Every business needs marketing. Marketing is what promotes a business and increases its reach to clients.
  • Various ways to which you can market your tours and travels company especially because all marketing happen digitally these days.
  • Digital marketing helps your company to reach much higher levels than when you market it on your own through advertisements in mass communication media.
  • Setting up billboards in recognizable places can help you market your business more.
  • Mas communication media’s like TV advertisement can be used to promote your business.
  • Social media platforms like Instagram Twitter Facebook YouTube etc. can be used to advertise your choose and travels company for free. And if you gain in a followers on your Instagram, Facebook or YouTube then these social media platform will promote your business for free or you can also pay these best social media platform to promote your business.

Risks of starting a tour and travel business:

Every business have its own risks. Just like that twos and travels business also has its own specific risks. If you don’t market your company well a two sent travels business can face very crucial financial crisis.

  • You have to make sure that there is no complaint against your company by any of your clients who choose your tour packages to travel regionally or internationally.
  • 100% transparency is needed for tour’s and travels business especially when your clients are travelling internationally.
  • You should have good relationship all your tie up companies so that there is no mistake or trouble for any of your clients.
  • A good financial flow is very crucial for a business like this up financial crisis is fixed by many tours and travels companies if not run well. Saying to make sure that you are company is on top of quality and that your clients are satisfied with your tour packages and that their chosen tour program is carried out as per the given package.


You want to start a business then dos and travels is the best choice to make because it easy to start, funds can be arranged through business loans. This business that is always a way out, if you come against any problems there will be a way out for you. The only thing you have to worry about is stability, you just need to maintain stability of your business and everything will go with the flow.

FAQ(Frequently Asked Question):

Q. What are cost required to start a tour and travel business ?

Ans: The cost can vary depending on factors such as location, scale of operations, and services offered. They may include licensing and permits, office space, equipment, website development, marketing materials, staff recruitment, and initial marketing expenses.

Q. What marketing strategies are most effective for attracting customers ?

Ans: Effective marketing strategies for attracting customers to your tour and travel business include creating a compelling online presence through a user-friendly website and active social media channels, utilizing search engine optimization (SEO) techniques, partnering with influencers or bloggers, offering promotional deals, and leveraging positive customer reviews and testimonials.

Q. How can I differentiate my tour and travel business from competitors in the market ?

Ans: To differentiate your business, consider offering unique tour packages, focusing on niche markets or specialized experiences, providing exceptional customer service, emphasizing sustainable practices, collaborating with local communities, and leveraging technology to enhance the customer experience.

Q. What legal considerations should I keep in mind when starting my business ?

Ans: When starting a tour and travel business, important legal considerations include obtaining the necessary licenses and permits, understanding liability and insurance requirements, complying with local and international regulations, ensuring proper contracts and agreements with suppliers and partners, and protecting customer data and privacy in accordance with data protection laws.

Q. How much time it takes to establish a successful tour and travel business ?

Ans: The timeline for establishing a successful tour and travel business can vary. It depends on factors such as market conditions, competition, marketing efforts, customer satisfaction, and operational efficiency. It may take several months to a few years to build a solid reputation, establish a customer base, and achieve sustainable growth.

We hope that you would have liked reading this blog post on How to start a tour and travel Business in India. For more such informative articles, keep visiting YMW Solution.

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