Through a travel agency, travellers are linked to service providers. These companies assist consumers with planning travel arrangements, including hotel bookings, transport, and full travel packages for several locations. Reserves made online can be difficult and occasionally result in unforeseen issues. Using a licensed travel agency guarantees that experts take care of reservations, tickets, and calendars. This increases your travel enjoyment, smoothness, and safety. In Pakistan, the rising enthusiasm for travel has created great prospects for businesspeople to create their own travel companies. In Pakistan, SARDAR KHAN & CO helps individuals get their Licences of Travel Agencies from the appropriate agencies.

Legal Framework for Travel Agencies

The Pakistani government regulates the travel industry through specific statutes and departments. Compliance with these rules is mandatory before a business can legally start operations.

Statutory Laws

• Travel Agencies Act, 1976: The primary legislation governing the industry.

   

• Travel Agencies Rules, 1977: The procedural guidelines for day-to-day operations and licensing.

   

Governing Authorities

• Federal Level:

  The Department of Tourist Services (DTS).
  

• Provincial Level (Punjab):

  The Youth Affairs, Sports, Archaeology & Tourism Department.

   

According to the law, a “travel agency” includes any entity that arranges transportation (air, sea, rail, or road), lodging, entertainment, or sightseeing for a fee. Section 6 of the Travel Agencies Act 1976 strictly prohibits any individual or firm from operating without a valid license. Furthermore, airlines are legally barred from granting sales authority to unlicensed agents.

Authorised Fields of Operation

When applying for a license, a travel agency must specify its intended activities. The available categories include:

• Booking international and domestic travel passages and baggage handling.

   

• Organising outbound group tours for Pakistani citizens to foreign countries.

   

• Arranging inbound and domestic tours for locals and foreigners within Pakistan.

   

• Managing specialised activities like sightseeing, trekking, mountaineering, or sporting events (such as Shikar).

   

• Providing logistics, including transport and accommodation, both locally and abroad.

   

Federal Licensing Requirements (DTS)

The federal licensing process follows a structured sequence managed by the Department of Tourist Services.

Step-by-Step Procedure

1. Application:

   Submit the required form to the DTS.
   

2. Scrutiny:

   The department reviews all submitted documents.

    

3. Verification: The authorities perform a character check on the owners.
   

4. Inspection:

   DTS officials visit the physical office space.

    

5. Financial Compliance:

   The applicant receives a demand note for the license fee and bank guarantee.
   

6. Issuance:

   The DTS grants the formal license once all conditions are met.
   

Essential Documentation

• A bank certificate proving a minimum capital of 200,000 PKR.

   

• A certified statement of assets and liabilities.

   

• An attested copy of the firm’s National Tax Number (NTN).

   

• Ownership proof or a registered lease agreement for the office.

   

• For partnerships: Registered Partnership Deed and Registration Certificate.

   

• For companies: Incorporation Certificate, Memorandum and Articles of Association, Form-A, and Form-29.

   

• An office floor plan showing counters and display windows.

   

• A staff list with IDs, qualifications, and experience certificates.

   

Fee Structure and Bank Guarantees (Federal)

Punjab Provincial Requirements

The Punjab government maintains specific standards under the Travel Agencies Rules 1977. Key requirements include:

• Minimum office space of 250 sq. ft. (indicated via a sketch).

   

• Possession of a vehicle with an engine capacity of 800cc or higher.

   

• Financial statements certified by a Chartered Accountant or Income Tax Practitioner.

   

Fees in Punjab:

• Air Ticketing Only: 8,000 PKR Fee | 200,000 PKR Guarantee

   

• Full Services (Tours + Transport): 20,000 PKR Fee | 400,000 PKR Guarantee

   

• Domestic Tourism: 16,000 PKR Fee | 200,000 PKR Guarantee

   

International Air Transport Association (IATA) Accreditation

Advantages of IATA Status

• Direct access to approximately 250 international airlines under one agreement.

   

• The legal right to issue international tickets on behalf of these airlines.

   

• Use of the Billing and Settlement Plan (BSP) for streamlined invoicing.

   

• A unique IATA Numeric Code for global identification.

   

• Increased consumer trust through the use of IATA branding.

   

Eligibility for Pakistan-Based Agents

Applicants must have operated as a DTS-licensed travel agent for at least 24 months. If the license is newer than two years, a Recognition Letter from the Ministry of Religious Affairs (MoRA) confirming 24 months of work history is required.

Financial Standards for IATA

The IATA evaluation relies on audited accounts prepared by a Chartered Accountant. Key metrics include:

• Positive Net Equity and Operating Results.

   

• Minimum investment of 5 million PKR for the Head Office and 1 million PKR for each associate branch.

   

• Current assets must exceed current liabilities.

   

• Financial Security: All agents must provide a minimum bank guarantee. For new agents (less than 12 months), this is 10 million PKR. For existing agents, it is 7 million PKR or the average of 12 months’ sales, whichever is higher.