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How Profitable is a Travel Agency Business in Dubai?

By Sakshi Srivastava - 22 Mar 2022 Last Updated: 22 Mar 2022
How Profitable is a Travel Agency Business in Dubai?

Table of Contents 

  1. 1. Steps Involved in Travel Agency License in UAE
  2. 2. Procedure to Obtain a Tourism License
  3. 3. What is the Travel Agency's Structure?
  4. 4. Which Travel Document should you get?
  5. 5. What kind of Experience is needed?
  6. 6. What is the Procedure for Obtaining an Inbound/Outbound License?
  7. 7. How can a Travel Agency's Profit be Increased by 200%?
  8. 8. Conclusion

It's a great moment to establish a travel firm in the United Arab Emirates, with tourist numbers on track to meet the government's Tourism Vision 2020 objective of 20 million tourists to Dubai alone (UAE). Tourism is expected to be valued AED 116 billion by 2027, accounting for 5.4% of UAE. GDP and supporting over 750,000 employments directly or indirectly, according to official estimates. Because the industry is so closely regulated, seeking expert assistance on how to launch a travel agency firm while staying within the regulations may save you a lot of money in the long run. By the help of this Blog Dhanguard will help to inform you about the profitability of Travel Agency License in UAE.

Steps Involved in Travel Agency License in UAE

The steps are to be followed

Determine the Nature of your Business

You'll need to determine if you want to run a travel agency, an inbound tour company, or an outward tour company. Across all of the markets you could service, there is a plethora of activities to pick from.

Choose a Business Name

Don't get too attached to any names until you've learned the regulations; terms like 'global,' 'international,' 'East,' or 'West,' for example, are permissible but may incur additional costs, and there are other limits.

Offensive terms, for example, are clearly prohibited, as is the use of God's name, whether in English or Arabic.

Apply for a Trade License

The Dubai Economic Department (DED) issues trade (commercial, professional, industrial, and tourist). A trade license is required for all businesses, regardless of industry.

Procedure to Obtain a Tourism License

These steps to be followed to obtain a Tourism License

The next step is to apply for one of the three extra licenses from the DTCM: outbound operator, incoming operator, or travel agent. If you're launching a travel agency in Dubai, you'll need an outline of your business strategy, a clean criminal record certificate, and a 'No Objection Certificate' (NOC) from the Civil Aviation Authority if you want to offer airline tickets. This must be renewed every year 30 days before the expiration date.

Set up Employee Visas

Make sure to apply for a tourist or visit visa within 30 days of an employee's arrival in the country.

For staff entrance permits, just register on the Ministry of Interior's e-channels page (another name for a provisional 60-day employment visa). Employees can undertake an 'in-country status change' to activate their entrance permit once it has been obtained, which is a necessary step in acquiring a complete employment visa.

Open a Corporate Bank Account

Without a trade license, no bank will recognize your firm; nevertheless, choose your bank carefully; a bad decision might backfire. Most will demand a constant minimum balance. Furthermore, some need confirmation of residency for at least one shareholder, but others do not.

What is the Travel Agency's Structure?

When founding a travel business in Dubai, you must determine whether you want to operate as a single proprietorship or a limited liability company. This is because the licensing requirements for a single proprietorship are less strict than those for an LLC. In a sole proprietorship, the travel business owner should also be a qualified travel agent.

Before establishing his agency, the company owner must also evaluate the following factors:

  • Will the travel agency operate in a free zone or in Dubai?
  • According to the company form, select a travel agency license.
  • Make sure you have enough money to start a travel agency.

Which Travel Document should you get?

To start his travel agency, the company owner must choose the appropriate travel license. There are four different types of travel licenses. There are four types of travel licenses: travel firm, travel agency, inbound travel operator, and outbound travel operator. The Department of Tourism and Commerce Marketing requires a deposit of 10,000 Dirham for the travel license. After paying the first approval cost, the applicant must additionally obtain permission for the agency's name. Obtain an insurance coverage, as well as the location of the travel agency's office and the leasing contract.

Document Required

To receive a travel agency license, submit a list of papers along with a payment to the Dubai Department of Tourism and Commerce.

These documents include the following

  • An application form.
  • Copies of the manager's and applicants' passports.
  • A notarized copy of the manager's experience certificate.
  • A letter of no objection from the Civil Aviation Authority.
  • A family record and a copy of ID proof for UAE nationals.
  • Certificate of good conduct for the owner and manager.

What kind of Experience is needed?

If the manager possesses a travel and tourism certificate or a university qualification, the experience necessary to start a travel agency in Dubai is three years. If the manager just has a high school graduation, he or she should have at least 5 years of experience.

What is the Procedure for Obtaining an Inbound/Outbound License?

The owner must have or both permits in order to offer travel packages within or outside of Dubai. By submitting an application to the Department of Tourism and Commerce Marketing, the owner can get various permits. If the owner is not a UAE national, a copy of his passport must be submitted. In addition, a manager's qualification certificate, an owner's good conduct c certificate, and a project feasibility study should be presented.

How can a Travel Agency's Profit be Increased by 200%?

While the actions outlined above will get your travel agency up and running in Dubai, you will need to do a lot more to increase your earnings. In fact, by focusing on a few key areas and changing techniques, a travel company's earnings may be quadrupled.

Here are a few ideas for increasing your travel company's revenue.

Services might be Upsold

Customers appreciate freebies and expect to receive them when booking with a travel agency. Up selling your items to improve your sales is one technique to enhance your earnings. For example, you may provide a lunch/dinner discount to your consumer when he or she is visiting a specific local attraction.

Customers should be Prioritized

Many firms focus on attracting new consumers while neglecting to care for their existing clients. The company should have plans in place to remain in touch with current and former clients as well as discover new ones. Referrals from satisfied consumers bring in additional business.

Platforms for Social Media

Make use of social media to attract new clients who share their trip experiences on social media. Create a successful social media plan that includes campaigns and posts to attract customers, provide bargains and bundles, and promote your business. One of the most effective ways to increase income in the travel industry is to have a strong social media presence.

Conclusion

Every travel company must carve itself a niche and employ various techniques based on client behavior and travel trends. It is also recommended that new travel businesses avoid attempting to fill every specialty. The methods and techniques outlined above will show you how to start a travel agency in Dubai and make a 200 percent profit; however, the strategies will need to be adjusted based on market conditions. Connect with Dhanguard for additional details you need.

Dhanguard provides the business setup and company formation services in Dubai, UAE with the guidance of our professional team of consultants. Faster and hassle-free company setup in Mainland and Freezone in UAE.

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