What is a travel agency? Procedures & conditions for doing travel agency business

Learn: Travel agency, tour agency? Industry code & how to classify travel agencies. Conditions for doing business as a travel agency – detailed documents and procedures for opening a tour agency

You have heard about travel agents but are not sure what a travel agent does? And is a travel agent the same as a travel company? In fact, travel agents and travel companies are two different types of businesses. Accordingly:

• Travel companies directly carry out activities of building, selling, and organizing tourism programs (tours) for tourists;
• Travel agents mainly sell tours under contracts signed with travel companies to receive commissions.

In this article, fdiinvietnam.com will share with you general information about travel agencies, along with the conditions, documents, and legal procedures needed to open a travel agency quickly and effectively.

What is a travel agency? Travel agency industry code

1. What is a travel agent?

Travel agent (travel agency) in English is called travel agent, is a unit established by an individual/organization with the function of doing business, providing information, consulting and selling travel programs and tours of travel businesses to receive commission. 

In addition, travel agents also plan and arrange travel schedules for customers, buy airline tickets, book hotels, etc.

2. Travel agency industry code

The travel agency industry code is 7911.

Details: activities of selling tourism products, tours, accommodation for tourists, transportation services…

In addition, there are also some industry codes related to the travel agency field such as:

• Industry code 7912: Tour operator;
• Industry code 7900: Reservation services and support services related to promotion and organization of tours.

Travel agency classification

Travel agents will be classified as follows:

1. Based on the relationship between the agent and the business

• Regular dealer

A general dealer determines his own costs and business policies. He may sell products from multiple suppliers, including those from competing suppliers.

Regular sales agents will sell the products and earn commission.

• Exclusive agent

Exclusive agents are only allowed to sell products that have been licensed by the travel company. The travel agent will be provided with a license to use the brand, procedures, operational support as well as finance during the sales process.

2. Based on the scale of the tour

• Wholesale travel agent

Wholesale travel agents are also known as large travel agents. These agents will buy products from suppliers in large quantities to receive discounts. Then, the wholesale agents resell to retail agents.

• Retail travel agency

Retail travel agents are usually small-scale, selling in small quantities and selling directly to customers such as suppliers and franchisees.

Conditions for business of travel agency, tourism agency

Pursuant to Articles 40, 42, 43 of the 2017 Law on Tourism, individuals/organizations wishing to operate as travel agents must meet the following conditions:

• Register business with competent state agency to open travel agency;
• There is a contract between the agent and the travel service business;
• Notify the provincial tourism authority of the time of commencement of business, business location, and information about the business assigning the travel agency;
• Travel agents are not allowed to arbitrarily organize and implement tour programs. They are only allowed to sell tours according to the correct content and price as stated in the contract signed with the travel company;
• In case a tourist buys a tour through a travel agency, the contract is concluded between the tourist and the travel service business that assigns the agency. The contract must include the name and address of the travel agency. 

➥ Thus, to open a travel agency, in addition to the above conditions, individuals/organizations do not need to apply for a domestic travel license or an international travel license.

Note: 

The travel agency contract has the following basic contents (based on Article 41 of the 2017 Law on Tourism):

• Name and address of the principal and the agent;
• Tour program, tour program price assigned to agent, agent commission level, payment time;
• Rights and responsibilities of the parties;
• Term of validity of the agency contract.

Documents and procedures for opening a travel agency

1. Travel agency opening profile

1.1. Travel agency opening profile – Individual business household model

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You can shorten the time to complete the procedure for opening a travel agency by using the individual business license registration service at fdiinvietnam.com with a total cost of only 1,500,000 VND – completed after about 3 working days.

>> See more: HKD registration procedures.

1.2. Travel agency opening profile – Company model 

Depending on your needs, desires and available capital, you can choose the type of company that is suitable for your travel agency business such as: private company, 1-member LLC, 2-member LLC or more, partnership or joint stock company.

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To save time, effort and speed up the process of establishing a travel agency, you can refer to the service of registering for a travel business license at fdiinvietnam.com. With a service fee of only 250,000 VND, you will receive the license at home within 3 working days.

>> See service details: Business license – 250,000 VND.

2. Procedures for opening a travel agency

2.1. Procedures for opening a travel agency – HKD model

• Step 1: The agent prepares to submit the application for HKD registration;
• Step 2: Submit the application directly to the Business Registration Office or the Finance – Planning Office of the District People’s Committee or submit the application online at the public service page of the Department of Planning and Investment of the province/city;
• Step 3: Within 3 days from the date of submission of valid documents, the travel agency owner will be granted a business registration certificate. Invalid documents will be notified in writing for amendments and supplements.

2.2. Procedures for opening a travel agency – Company model

The procedure for opening a travel agency includes the following steps:

• Step 1: You prepare a set of documents as fdiinvietnam.com shared above.
• Step 2: You choose 1 of the 2 following ways to submit your application:

• Method 1: Submit application directly to the Business Registration Office – Department of Planning and Investment (DPI) of the province/city where the agent’s head office is located;
• Method 2: Submit application online on the National Business Registration Portal.

• Step 3: Receive results. After 3 working days, the Business Registration Office will return the results.

• If the application is valid, you will receive a Business Registration Certificate;
• In case the application is invalid, the Business Registration Office will issue a written notice with instructions for amendments and supplements and you need to re-submit from the beginning.

>> See more:

>>  Procedures for establishing a travel company.

>> Travel company establishment service.

Travel agency opening service at fdiinvietnam.com

If you are in need of opening a travel agency but are still unclear about the documents and procedures, you can refer to the service of establishing a travel agency business company at fdiinvietnam.com. 

With over 15 years of experience, fdiinvietnam.com will quickly complete the procedures and deliver the license to your home in just 3-5 working days. In case you need a business license urgently, you can use the express service with a completion time of just 24 hours.

➨ At fdiinvietnam.com, when opening a travel agency, you only need to provide the following very basic information:

• Information about the proposed travel agency opening such as: name, address, charter capital;
• Notarized copy of ID card/CCCD/passport of legal representative or member/shareholder contributing capital.

➨ fdiinvietnam.com will carry out all legal requirements for you such as:

• Prepare documents to open a travel agency;
• Present documents to customers for signing at their place, free delivery;
• On behalf of customers, submit documents and receive business registration certificates at competent authorities;
• Deliver business registration certificate and seal (if any) to customer’s home.

➨ The most important point when using the travel agent registration service of fdiinvietnam.com is:

• Free consultation for customers to choose the appropriate type of travel agency;
• Free consultation on tax and legal issues before, during and after opening a travel agency.

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Frequently asked questions when opening a travel agency

Call us at 0978 578 866 (North) – 033 9962 333 (Central) – 0946 724 666 (South) for support.