How to Setup a Travel based Startup in UAE

Posted on May 8, 2018 by in Travel

Almost 78 Million citizens travel using the Dubai International Terminal.  In 2016, UAE acknowledged 14.87 Million visitors, and the outgoing tourism has developed by 5% over the last year, and more than 3.5 Million people moved from the Middle East. All these figures are the indication that Tourism supports the key to the developing interest of the people in Emirates and outside emirate concerning better connectivity and transport.

Outbound and inbound tourism

Outbound tourism is when local tourist leaves the state for distant destinations and inbound tourism is when tourists enter in UAE for touristic activities. In order to have a travel startup or business setup in Dubai, the cheat sheet meant for an entrepreneur is relatively simple. The first requirement to start a travel based company in UAE is an appropriate tourism license. The following are the licenses available:

  1. A company license regarding travel
  2. Travel agency license
  3. Inbound travel worker license
  4. Outbound travel worker license

The requirement for opening a travel based startup agency in Dubai is rather simple after achieving the particular type of license for the commercial activity. For running the operations, a travel license is mandatory apart from experienced professional within travel and tourism. The fundamentals that are required to achieve a travel license are given as:

  1. A blueprint of the location and a lease contract where the travel agency will work.
  2. Agreement fee for the trade license
  3. Approval for trade name
  4. Insurance policy

The majority travel companies open their shop in Dubai or Abu Dhabi just because of the location benefit. On the other hand, the cost of the company in these locations is higher than the other emirates. Positioning or setting of the startup also matters to gain the attraction of customers and increase visibility. It is worthwhile for the industrialist to think about the runway cost before come to a decision to put the company either in leading locations or other emirates.

Learn more about costing and requirements of setting up a business in UAE here:

Structure of a Company:

The most ordinary structure that is engaged to set up a travel agency in UAE is the limited liability company (LLC). The other types of company structure are included in the partnership with a local (Emirati) or produced in one of the numerous free zones in favor of full ownership.

The local government and its support:

The government improves the public processes for citizens in order to produce a standard of excellence all the way through their star rating program. This program makes use of private sector standards for the excellence of service delivery whereas private sector approaches to identify problems.

Marketing, Network and Digital Affect:

Travel Startups and companies work as it serves a need for the consumer. The UAE, and particularly Dubai, places itself as a luxury travel destination throughout brilliant PR and promotion.  It is amazing that UAE is price sensitive. It is essential to be aware of the market and make a decision whether the company is searching for low-margin volume or quality traffic with clients that are pleased to pay more for service.