Dubai, being one of the most popular tourist destinations in the world recorded 12 million international visitors in 2019. In fact, Dubai International Airport is the third busiest airports in the world. The government of UAE is making constant efforts to make Dubai a premier tourist destination and has transformed the sleepy Gulf port to a city with globally-renowned tourist attractions, iconic buildings such as the Burj Khalifa, etc. The city is one of the leading tourist destinations in the world which makes it a great place to start a travel agency. If you are contemplating stepping into the travel and tourism industry, read further to know how to start a travel agency in Dubai with a 200% profit.
The growth that the oil-producing country has experienced by focusing on the tourism industry is massive and impressive. The travel and tourism industry is projected to contribute towards the GDP of UAE with 312.4 billion Dirhams by 2027.
Steps To Start A Travel Agency In Dubai
Before we get to the part about the strategies to increase revenue, we will be discussing about the requirements and process to start a travel agency in Dubai.
- Structure of the travel agency
When starting a travel agency in Dubai, one has to decide whether to open it as a sole proprietorship or a limited liability company, as the licensing requirements are less stringent for a sole proprietorship in comparison to LLC. Also, the travel business owner in a sole proprietorship is required to be a certified travel agent.
Further, the business owner also needs to consider a few points before registering his agency, such as;
– Will the travel agency operate in a free zone or in Dubai?
– Choose a travel agency license as per the business form.
– Ensure there are sufficient funds to set up the travel agency.Appoint a local agency for company registration in case the owner is a foreign entrepreneur.
- Choose the travel license
The business owner is required to choose the right travel license to bein his travel agency. Essentially, there are 4 types of travel licenses which are, the travel company license, the travel agency license, the inbound travel operator license, and the outbound travel operator license. The business is also required to deposit 10,000 Dirhams for the travel license with the Department of Tourism and Commerce Marketing. The applicant must also get the agency name approved after paying the initial approval fee, get an insurance policy and provide the location as well as the lease contract of the travel agency office.
- Necessary Documents
In order to obtain a travel agency license, a list of documents should be submitted to the Dubai Department of Tourism and Commerce with the deposit. These documents include:
– An application form
– Passport copies of Manager and the applicants
– Notarized copy of the experience certificate of Manager
– No objection letter from the Civil Aviation Authority
– A family record and copy of ID proof for nationals of UAE
– Certificate of good conduct for the owner and manager
- Experience Required
The experience required to start a travel agency in Dubai is 3 years if the manager has a travel and tourism certificate or a university diploma. If the manager has a high school diploma only, the experience required is of 5 years.
- Apply for an inbound/outbound license
In order to sell travel packages within or outside Dubai, the owner is required to obtain an inbound, outbound or both licenses respectively. These licenses can be obtained by filing an application with the Department for Tourism and Commerce Marketing. If the owner is not a national of UAE, he needs to submit a copy of the passport. Along with these documents, a qualification certificate of the manager, a good conduct certificate of the owner and a feasibility report if the project should also be submitted.
How To Boost Profit of Travel Agency by 200%?
While the above steps would get your travel agency rolling in Dubai, you need to do a lot more in order to multiply your revenue. Profits in a travel business can be doubled by just focusing on a few core areas and modifying strategies for those areas. Here are a few strategies that can boost the revenue of your travel business.
- Upsell your services – Customers love the freebies and expect to obtain add on services when making bookings with a travel agency. One way to increase your revenue is by upselling your products that not only provide extra convenience to your customers but also increases your sales. For instance, you could offer a lunch/dinner deal to your customer when he/she is visiting a particular attraction in a city.
- Focus on customers – Many businesses tend to focus on bringing in new customers and in the process fail to focus on the existing ones. The business should have strategies in place to stay in touch with existing and past customers along with finding new customers. Satisfied customers bring in more business through referrals.
- Travel application development – An essential element of a travel agency is a travel application or a travel portal to have an online presence. A travel application helps the travel business to gain visibility and provides access to a wide database of customers. Moreover, customers also prefer to make their bookings via a travel app or portal due to the extra level of convenience. Therefore, hiring a travel application development company is a must to double your revenue.
- Social Platforms – Leverage the power of social media to attract potential customers who post about their travel on social media. Design an effective strategy for social media through campaigns and posts to garner the attention of customers, to offer deals and packages or to promote your brand. Having a strong social media presence is one of the best techniques for boosting revenue of the travel business.
Every travel business must find a niche and use different strategies based on the analysis of customer behavior and travel trends to increase their profits. It is advised that the new travel agencies shouldn’t try to step into every niche and instead focus on providing differentiated experiences. The above steps and strategies give information on how to start a travel agency in Dubai with a 200% profit, however, the strategies need to be modified as per the market trends.