Travel Agency Agreement (India)
TRAVEL AGENCY AGREEMENT
This Travel Agency Agreement ("Agreement") is entered into on [Agreement Date] at [State], India, between:
TRAVEL AGENCY: [Agency Name], IATA/MoT Approval No: [Agency IATA], GSTIN: [Agency GSTIN], having its registered office at [Agency Address] (hereinafter referred to as the "Agency"); and
CLIENT: [Client Name], GSTIN: [Client GSTIN], at [Client Address] (hereinafter referred to as the "Client").
1. RECITALS
1.1 The Agency is a duly registered travel agency engaged in providing travel management and related services.
1.2 The Client desires to engage the Agency for [Agreement Type] services on the terms and conditions set out herein.
1.3 This Agreement is governed by the Indian Contract Act 1872, the Consumer Protection Act 2019, the Foreign Exchange Management Act 1999, and the Carriage by Air Act 1972, as applicable.
2. TERM
2.1 This Agreement shall commence on [Agreement Date] and shall remain in force for [Agreement Term] months, unless earlier terminated in accordance with Clause 8.
2.2 The Agreement may be renewed for successive equal terms by mutual written agreement signed at least 30 days prior to expiry.
3. SCOPE OF SERVICES
3.1 The Agency shall provide the following travel services ("Services") to the Client: [Services Scope].
3.2 The Agency shall act as the Client's agent in arranging travel bookings with airlines, hotels, and other suppliers. The Agency's authority is limited to making bookings and arrangements expressly requested by the Client.
3.3 The Agency shall disclose to the Client any commissions, overrides, soft dollars, or other incentives it receives from suppliers in connection with bookings made for the Client.
3.4 For visa facilitation services, the Agency shall assist in compiling and submitting visa applications but assumes no responsibility for visa decisions, which are exclusively within the discretion of the relevant foreign government or its authorised visa processing agency.
4. FEES AND PAYMENT
4.1 The Agency's fee structure is: [Fee Structure]. Detailed fees are set out in Schedule A annexed to this Agreement.
4.2 All fees are stated exclusive of applicable GST at 5% on tour operator services (SAC 9985). The Agency shall issue GST-compliant tax invoices including its GSTIN and SAC code.
4.3 The Client shall pay invoices within 15 days of receipt. Payments for air tickets and hotel deposits must be made in advance as required by the supplier.
4.4 Foreign exchange remittances for international travel shall be processed in accordance with the Foreign Exchange Management Act 1999 and the Liberalised Remittance Scheme (LRS) guidelines of the Reserve Bank of India.
5. CANCELLATION AND REFUNDS
5.1 Cancellation policy: [Cancellation Policy].
5.2 Cancellations must be communicated in writing (email or letter) to the Agency. The date of receipt of written cancellation notice determines the applicable charges.
5.3 Where eligible refunds arise from airline or hotel cancellations, the Agency shall process such refunds within the timeline prescribed by the relevant supplier or IATA Resolution 824, and credit the Client within 7 business days of receipt of refund from the supplier.
5.4 The Agency's service fees for bookings already made are non-refundable upon cancellation by the Client.
6. LIMITATION OF LIABILITY
6.1 The Agency acts as an intermediary between the Client and service providers (airlines, hotels, ground operators). The Agency is not liable for: (a) airline delays, cancellations, or schedule changes; (b) hotel quality or service deficiencies; (c) visa rejections; (d) loss of baggage governed by the Carriage by Air Act 1972; (e) force majeure events including natural disasters, pandemics, civil unrest, or government travel advisories.
6.2 The Agency's total liability under this Agreement shall not exceed the fees paid by the Client for the specific booking giving rise to the claim.
7. DATA PRIVACY
7.1 The Agency shall handle all personal data of the Client and its travellers (including passport details, visa information, and travel preferences) in accordance with the Digital Personal Data Protection Act 2023 and shall not share such data with third parties except to the extent necessary to arrange the booked travel services.
8. TERMINATION
8.1 Either Party may terminate this Agreement by providing 30 days' written notice to the other Party.
8.2 Termination shall not affect any bookings already made or payments already due.
9. GOVERNING LAW AND DISPUTES
9.1 This Agreement shall be governed by the laws of India and the State of [State].
9.2 Any dispute shall first be subject to good-faith negotiation. If unresolved within 21 days, either Party may approach the appropriate Consumer Disputes Redressal Commission (for consumer disputes) or refer the matter to arbitration under the Arbitration and Conciliation Act 1996, seated in [State].
10. EXECUTION
This Agreement is executed on [Agreement Date] at [State].
Witness 1 Name & Signature: ____________________
Witness 2 Name & Signature: ____________________
Travel Agency
________________
Signature
Client
________________
Signature
What Is a Travel Agency Agreement (India)?
A Travel Agency Agreement in India engages an independent contractor to supply services and records the scope of work, fees, timetable and ownership of any deliverables.
In India, the travel and tourism industry operates under the regulatory oversight of the Ministry of Tourism, Government of India, which grants approval and classification to travel agents, tour operators, and accommodation providers. IATA-accredited agents are authorised to issue airline tickets directly; non-IATA agents typically book through consolidators. The agreement should specify whether the agency acts as a principal (responsible to the client for the services) or as an agent (acting on behalf of suppliers such as airlines, hotels, and tour operators and bearing limited liability).
Governing laws include the Indian Contract Act 1872, the Consumer Protection Act 2019 (for clients who are consumers), the Foreign Exchange Management Act 1999 (for foreign exchange transactions), and the Carriage by Air Act 1972 (for air travel liability). GST at 5% is applicable on tour operator services.
A well-drafted Travel Agency Agreement protects both the agency and the client by clearly setting out the scope of services, payment terms, cancellation and refund policies, and the agency's limitation of liability for matters beyond its control (such as airline schedule changes, visa rejections, or force majeure events).
The legal framework governing the Travel Agency Agreement (India) in India draws on several key statutes and regulatory bodies. Under Indian law, the Indian Contract Act 1872 governs contractual obligations, with Section 10 setting essential requirements for valid agreements. The Companies Act 2013 regulates corporate entities through the Registrar of Companies (ROC) and Ministry of Corporate Affairs (MCA). The Industrial Disputes Act 1947 and state labour commissioners govern employment disputes. The Information Technology Act 2000 and IT (Reasonable Security Practices) Rules 2011 protect personal data. The Income Tax Act 1961 and Goods and Services Tax Act 2017 govern tax obligations through the Central Board of Direct Taxes (CBDT) and GST Council. Parties executing a Travel Agency Agreement (India) in India should confirm the document reflects current law, including any amendments enacted since the original drafting date. The Indian Contract Act, 1872 sets the foundational requirements.
When Do You Need a Travel Agency Agreement (India)?
A Travel Agency Agreement is needed whenever there is an ongoing or significant commercial relationship between a travel agency and its client.
Corporate travel management agreements are needed when a company appoints a travel management company (TMC) to manage all employee travel. These agreements typically run for 1–2 years and require the TMC to provide booking services, expense reporting, duty of care alerts, and account management.
Tour package agreements are needed when a travel agency is arranging a group or individual tour package — domestic or international — that involves multiple components (flights, hotels, sightseeing, meals). The agreement should clearly specify what is included and excluded, payment schedule (typically a deposit upon booking with balance due 30–60 days before departure), and the cancellation policy.
Visa facilitation agreements are needed when a travel agency is providing visa application assistance — collecting documents, submitting applications to consulates/VFS/BLS centres, and tracking application status. The agreement should disclaim the agency's responsibility for visa rejection decisions, which are entirely at the discretion of the relevant foreign government.
Any arrangement involving significant advance payments (such as charter flights, cruise packages, or international group tours) should always be supported by a written agreement, so that both parties have clarity on what happens if the tour is cancelled, the airline fails, or the client cannot travel.
Parties in India should prepare a Travel Agency Agreement (India) proactively rather than waiting for a dispute to arise. Courts interpret agreements based on the written terms rather than oral representations. Under Indian law, the Indian Contract Act 1872 governs contractual obligations, with Section 10 setting essential requirements for valid agreements. The Companies Act 2013 regulates corporate entities through the Registrar of Companies (ROC) and Ministry of Corporate Affairs (MCA). The Industrial Disputes Act 1947 and state labour commissioners govern employment disputes. The Information Technology Act 2000 and IT (Reasonable Security Practices) Rules 2011 protect personal data. The Income Tax Act 1961 and Goods and Services Tax Act 2017 govern tax obligations through the Central Board of Direct Taxes (CBDT) and GST Council. Where the transaction involves regulated activities, prior approval from the relevant authority may be required before execution.
What to Include in Your Travel Agency Agreement (India)
A well-drafted India Travel Agency Agreement should include the following elements.
Party Details: Full legal names, addresses, and GSTIN of the travel agency (including IATA and Ministry of Tourism approval numbers, if applicable) and the client.
Scope of Services: A precise description of the services to be provided — ticketing (domestic/international, airline/railway), hotel bookings, visa assistance, car rentals, travel insurance, foreign exchange, and itinerary planning. Corporate agreements should include SLAs and a 24/7 support commitment.
Payment Terms: Fees or service charges, payment schedule for package tours (deposit and balance), mode of payment, and the agency's obligation to pass through refunds promptly.
Cancellation and Refund Policy: A clear schedule of cancellation charges keyed to the time of cancellation before departure, and the process for claiming refunds.
Limitation of Liability: The agency's liability is typically limited to services within its direct control; it should disclaim responsibility for airline delays, hotel quality issues, visa rejections, and force majeure events.
Force Majeure: Definition of force majeure events, the consequences for existing bookings, and whether refunds or credits will be offered.
Privacy: The agency's obligations with respect to client personal data (including passport details and travel preferences) under the Digital Personal Data Protection Act 2023.
Governing Law and Dispute Resolution: Applicable law, jurisdiction, and whether disputes will be resolved by Consumer Disputes Redressal Commission or by arbitration.
Additional compliance elements for a Travel Agency Agreement (India) used in India include: Under Indian law, the Indian Contract Act 1872 governs contractual obligations, with Section 10 setting essential requirements for valid agreements. The Companies Act 2013 regulates corporate entities through the Registrar of Companies (ROC) and Ministry of Corporate Affairs (MCA). The Industrial Disputes Act 1947 and state labour commissioners govern employment disputes. The Information Technology Act 2000 and IT (Reasonable Security Practices) Rules 2011 protect personal data. The Income Tax Act 1961 and Goods and Services Tax Act 2017 govern tax obligations through the Central Board of Direct Taxes (CBDT) and GST Council. Forms-legal.com provides this template as a starting point for India-compliant documentation.
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Reference this free template in an article, syllabus, or research note:
Forms Legal. (2026). Travel Agency Agreement (India) (India) [Legal document template]. Forms Legal. https://forms-legal.com/india/business/services/travel-agency-agreement-india
"Travel Agency Agreement (India) (India)." Forms Legal, 2026, https://forms-legal.com/india/business/services/travel-agency-agreement-india.
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title = {Travel Agency Agreement (India) (India)},
year = {2026},
howpublished = {\url{https://forms-legal.com/india/business/services/travel-agency-agreement-india}},
note = {Free legal document template. Based on Indian Contract Act, 1872}
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Frequently Asked Questions
A Travel Agency Agreement in India is primarily governed by the Indian Contract Act 1872, which prescribes the requirements for a valid contract — offer, acceptance, lawful consideration, free consent, capacity of parties, and lawful object (Section 10). The agreement must also comply with the Consumer Protection Act 2019, which provides robust rights to consumers who purchase travel services, including the right to seek redress before Consumer Disputes Redressal Commissions for deficiency in service, unfair trade practices, or misleading advertisements. The Ministry of Tourism, Government of India, operates a voluntary approval scheme for travel agents and tour operators under the Guidelines for Approval of Travel Agents/Tour Operators. Approved agents are listed on the Ministry's website and are expected to maintain standards of service, solvency, and professional conduct. While approval is not mandatory, many corporate clients and hotels require agents to hold Ministry approval or IATA (International Air Transport Association) accreditation. For international travel, the Foreign Exchange Management Act 1999 (FEMA) and the Foreign Exchange Management (Current Account Transactions) Rules 2000 govern foreign exchange remittances for travel purposes. Travel agents facilitating Liberalised Remittance Scheme (LRS) transactions must comply with RBI guidelines and ensure proper documentation. The Prevention of Money Laundering Act 2002 (PMLA) also applies to high-value cash transactions.
A corporate travel agreement between a company and a travel management company (TMC) or travel agency in India should address the specific needs of a business traveller environment, where volume, cost control, and duty of care are paramount. First, the agreement should define the scope of services with precision: air and rail ticketing (domestic and international), hotel reservations, car rentals and airport transfers, visa application assistance, foreign exchange services, travel insurance, and 24/7 emergency travel support. Each service category should have defined service level agreements (SLAs) — for instance, turnaround time for issuing tickets (4 hours for domestic, 12 hours for international), response time for emergency calls, and accuracy guarantees. Second, the agreement should establish a travel policy framework: preferred airlines, hotel chains, booking class eligibility by employee grade, advance booking requirements, and approval workflows. The travel agency should be contractually required to book within policy and flag out-of-policy requests to the company's travel desk. Third, the agreement should cover pricing and management fees. Corporate TMCs typically charge on one of three models: transaction fees per booking (e.g., ₹500–₹2,000 per ticket), a management fee (flat monthly retainer), or a hybrid model. All fares should be booked at best available rates; the agency should disclose any override commissions, soft-dollar benefits, or incentives received from airlines or hotels.
Cancellation and refund provisions are among the most contentious aspects of travel agreements in India, and should be drafted with great care to reflect actual airline, hotel, and tour operator policies, while also complying with the Consumer Protection Act 2019. For air ticketing, the cancellation and refund terms are largely dictated by the fare rules of the airline — non-refundable fares, partially refundable fares, and fully flexible fares have very different refund entitlements. The travel agency agreement should require the agency to clearly disclose the applicable fare rules to the client before ticketing, and to process eligible refunds within the timeline prescribed by IATA Resolution 824 (typically within 7 days for credit card refunds). For international tickets, processing times may be longer. The agency may charge a service fee for processing cancellations, which should be disclosed upfront. For hotel bookings, policies range from free cancellation (typically up to 24–48 hours before check-in) to strictly non-refundable. The agency should communicate the hotel's cancellation policy at the time of booking and obtain written confirmation from the client before making non-refundable reservations. For package tours, the agreement should set out a sliding scale of cancellation charges — for example, cancellation more than 60 days before departure may result in forfeiture of the deposit only, while cancellation within 7 days may result in 100% forfeiture.
A Travel Agency Agreement (India) does not legally require a lawyer in India, and individuals and businesses may draft and execute the document independently. The Indian Contract Act, 1872 does not mandate legal representation for the creation or signing of this type of document. However, seeking independent legal advice from a qualified India lawyer is recommended for transactions involving substantial financial value, complex regulatory requirements, or cross-border elements where multiple legal jurisdictions may apply. A lawyer can verify that the document complies with all applicable statutory requirements, identify potential risks specific to the transaction, and confirm that the terms adequately protect the interests of all parties involved. The Supreme Court of India has jurisdiction over disputes arising from this type of document, and Registrar of Companies (ROC) may impose additional compliance obligations depending on the nature of the underlying transaction. Professional legal review is particularly advisable where the document will be submitted to government agencies or used as evidence in legal proceedings.
A Travel Agency Agreement (India) does not legally require a lawyer in India, though legal advice is recommended. Under Indian law, the Indian Contract Act 1872 governs agreements. The Companies Act 2013 and Registrar of Companies (ROC) regulate corporate documents. The Information Technology Act 2000 governs electronic contracts and data protection. The Consumer Protection Act 2019 provides consumer rights. The Income Tax Act 1961 requires tax compliance. Forms-legal.com provides this template as a starting point — always review with a qualified Indian advocate for significant transactions. Under India law, Indian Contract Act, 1872, parties should seek independent legal advice from a qualified lawyer to confirm compliance with all applicable requirements. Under Indian law, the Indian Contract Act 1872 governs contractual obligations, with Section 10 setting essential requirements for valid agreements. The Companies Act 2013 regulates corporate entities through the Registrar of Companies (ROC) and Ministry of Corporate Affairs (MCA). Forms-legal.com provides this template as a starting point for India-compliant documentation.
This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change over time. Consult a qualified attorney for advice specific to your situation.Full disclaimer
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