Become an IATA Travel Agent - IATA Registration

Travel and tourism are one of the largest industries in India. The rising middle class has created a lot of demand for travel and tourism products making the travel industry - one of the fast-growing industries in India. Becoming a travel agent is a very good option for many Entrepreneurs and having IATA registration can boost the revenue of the business. In this article, we mainly look at the process of becoming an IATA Travel Agent and IATA Registration.

Becoming an IATA Travel Agent

To start a travel agency business, the following registrations would be required;

Business registration
- Private Limited Company; or
- Limited Liability Partnership; or
- One Person Company;
GST registration

IATA registration is not a mandatory registration for becoming a travel agent. However, having an IATA registration can show potential customers and vendors that the business is an accredited travel agency - thereby boosting revenue and providing credibility. The following video shows how IATA can add value to a Travel Agent:

IATA Registration Benefits

IATA accreditation helps simply the business relationship between travel agents and airlines. There are over 60,000 IATA travel agents worldwide, selling US$220 billion worth of airline tickets on behalf of some 250 IATA airline members. Some of the benefits of IATA Registration are:

Access to IATA airline members with a single Sales Agency Agreement which authorizes the sale of international and/or domestic tickets.
Access to IATA’s Billing and Settlement Plan ( BSP), an efficient interface for invoicing and payment between the agent, airlines and transport providers.
Unique identification throughout the global travel industry with the “IATA Numeric Code”.
Use of the "IATA Accredited Agent" logo providing visibility and credibility on-premises and website.
Agent staff eligibility for the IATA/IATAN ID Card, giving access to the special deals of over 1000 suppliers.
Standardized procedures to ensure fair dealings with the airlines.

The use of the IATA Accredited Agent logo is a major draw for many of the travel agent and the following logo can be utilized only by IATA Accredited Travel Agents. Having the IATA Accredited Agent logo can provide credibility amongst customers and vendors for the business.

IATA Accredited Travel Agent Logo

IATA Registration Requirements

While applying for becoming an IATA Accredited Agent, the following four criteria's are evaluated:

Financial record and standing Agent
Staff qualifications
Identification and accessibility of premises
Security and procedures

The financial record and financial standing of the applicant plays a major part in the IATA accreditation process. In India, the criteria for the financial evaluation of IATA registration application is as follows (All financial information used in the financial criteria will be extracted from the Agent's Audited Accounts):

There must be positive Net Equity.
Net Equity divided by long-term debt and other long-term liabilities must be greater than 0.5.
EBITDA (Earnings Before Interest, Taxation, Depreciation, Amortisation and extraordinary items) must be positive except in exceptional circumstances.
The EBITDA must exceed the interest payable by a factor of a minimum of two and ideally three.
Adjusted Current Assets must exceed Current Liabilities.

Further, all Agents must provide financial security during the first two years as an Agent. An Agent will not be accredited or will not continue to be accredited until any Financial Security required to be provided to IATA has been received by IATA and confirmed to IATA by way of written confirmation received directly from the third party supporting the Financial Security that the Financial Security was issued and is valid. All travel agents must provide Financial Security with a minimum amount of USD 50,000 to be accredited.

For more information, refer to the IATA Registration Agent Financial Evaluation Criteria and IATA Registration Other Evaluation Criteria.

Obtaining IATA Registration

Once the applicant is satisfied that the business qualifies for IATA Accreditation, an application for IATA Accreditation can be made to the relevant office with the requisite fee. The following documents must be submitted for IATA Registration:

On satisfying the relevant requirements for IATA Registration, the travel agent would be IATA accredited.

For information about starting a travel agency in India, visit IndiaFilings.com

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Frequently Asked Questions

Common questions about IATA Travel Agent Registration in India.

IATA registration is an accreditation provided by the International Air Transport Association (IATA) to travel agents. It is not mandatory but highly beneficial as it provides credibility, access to IATA airline members and billing systems, and the ability to use the "IATA Accredited Agent" logo. This can boost revenue and instill confidence in customers and vendors.

Some key benefits of IATA accreditation include access to IATA airline members with a single agreement, access to IATA's efficient billing and settlement plan (BSP), a unique global identification code, use of the "IATA Accredited Agent" logo for visibility and credibility, staff eligibility for IATA/IATAN ID cards with supplier deals, and standardized procedures ensuring fair dealings with airlines.

The main financial criteria for IATA registration in India include positive net equity, a net equity to long-term debt ratio greater than 0.5, positive EBITDA (with some exceptions), EBITDA exceeding interest payable by a factor of at least 2, and adjusted current assets exceeding current liabilities. Financial security of at least USD 50,000 is also required for the first two years.

The documents required for IATA registration include the IATA Registration Application Form and the IATA Registration Passenger Sales Agency Agreement.

Using the "IATA Accredited Agent" logo can provide credibility and visibility for a travel agency among customers and vendors. It signifies that the agency is an accredited and trusted partner of IATA, which can instill confidence and potentially boost revenue.

Yes, one of the criteria evaluated for IATA registration is the qualifications of the agent's staff. However, the article does not specify the exact staff qualification requirements.

No, IATA registration is not a mandatory requirement for starting a travel agency business. However, it is highly recommended as it provides significant benefits and can enhance the agency's credibility and revenue potential.

The article does not mention the typical duration of the IATA registration process. However, it is likely that the process can take several weeks or months, depending on the evaluation of the applicant's qualifications and the processing time by IATA.

The IATA Billing and Settlement Plan (BSP) is an efficient interface for invoicing and payment between travel agents, airlines, and transport providers. It simplifies the business relationship between IATA-accredited agents and airline members.

Yes, the article mentions that IATA registration provides "access to IATA airline members with a single Sales Agency Agreement which authorizes the sale of international and/or domestic tickets." This indicates that IATA registration can be obtained for both international and domestic travel services.