Holiday Packages for Travel Agents to Resell in India in 2026
By Saanvi Iyer (Saanvi Iyer writes offbeat destination guides for Indian travellers — places that work in monsoon, shoulder-season picks, and the cities Indian first-time international travellers underrate. Based in Bangalore, perpetually mid-itinerary.) · Published · Last updated · 10 min read
Reselling holiday packages is one of the fattest-margin things an Indian agent can do — but only if you source right, mark up honestly and get the GST and TCS bits correct. Here's how the packages business actually works in 2026.
Quick answer
Indian travel agents resell holiday packages by sourcing them at a net (cut-and-pay) rate from a DMC, tour operator or B2B aggregator, then adding their own markup and selling under their own name. The two big formats are FIT (custom, private, you build it) and group / fixed departures (pre-set itinerary and dates, sold by the seat). On the tax side, as of 2026 a tour package can be billed at 5% GST without input tax credit or 18% with ITC, and TCS on overseas tour packages is a flat 2% from 1 April 2026 — confirm both with your CA. Get sourcing, markup and disclosure right and packages become one of the highest-margin lines you can run.
Why packages, and why now
Selling a bare flight ticket earns you a thin sliver. Selling the whole trip — flights, hotel, transfers, sightseeing, a visa, maybe travel insurance — bundled as one package is where the real money sits, because the client sees one price and never breaks it down line by line. That's the whole game.
2026 has been kind to the outbound holiday business. The Budget cut TCS on overseas tour packages to a flat 2% from April, and operators reported a jump in bookings almost immediately as the working-capital pain of the old 20% slab disappeared. Short-haul destinations — Bali, Krabi, Oman, Vietnam, the usual Dubai-and-Thailand workhorses — are moving fast. Domestic is steady too: Kashmir, the Northeast, Kerala, Rajasthan, Andaman and the Himalayan trek circuits all sell as packages.
You don't need IATA, a GDS, or a big team to start. What you need is a reliable supplier, a sensible markup, and the discipline to tell clients exactly what they're buying. Most agents already sell flights — packages are the natural next product, and the margin is structurally better.
Where the packages come from: DMC vs tour operator vs aggregator
You almost never build an international package from scratch. You buy it from someone closer to the ground. Three kinds of suppliers do this, and the difference matters for your margin and your risk.
- DMC (Destination Management Company) — the operator on the ground at the destination. A Bali DMC owns the hotel contracts, the vans, the guides and the local rates in Bali. They quote you a net rate and you add your margin on top. Best ground rates, but usually one DMC per destination, so you juggle many of them.
- Outbound tour operator / consolidator — an Indian wholesaler who has already stitched together DMC rates across many destinations into ready packages, often with the flight included. One relationship, many destinations. You give up a little margin versus going DMC-direct in exchange for not managing twenty contracts.
- B2B aggregator / portal — a tech platform that puts ground packages, hotels and sometimes flights behind one login with live pricing, an agent panel and instant vouchers. Fastest to transact, often white-label, but read the fine print on who actually fulfils on the ground.
Almost all of them run on a cut-and-pay (net) model: they quote a net price, you quote your client whatever you like above it, and you keep the difference. This is the same net-rate logic behind net vs published fares on the flight side and consolidator fares.
| Supplier type | Best for | Margin | Number of relationships |
|---|---|---|---|
| DMC (direct) | Best ground rate, one destination you sell a lot | Highest | One per destination — many to manage |
| Outbound operator / consolidator | Many destinations, one account | Good | Few |
| B2B aggregator / portal | Speed, live pricing, white-label | Decent, varies | One login |
For most agents the honest answer is a mix: an aggregator or operator for the long tail, and a couple of direct DMCs for the destinations you sell every week.
FIT vs group: which package, for which client
Every package is one of two shapes, and clients self-select by personality and budget.
FIT (Free / Fully Independent Traveller) is a custom, private trip — the client's own dates, their own pace, private car and guide. You build it from net components. Margins per booking are higher because the client is paying for exclusivity and there's no public price to compare against. Honeymooners, families and anyone who says "we don't do group tours" are your FIT buyers.
Group / fixed departure (GIT) is a pre-built itinerary on set dates, sold by the seat. Costs are shared across the group so the per-person price is lower, which makes it easier to close price-sensitive clients. The operator runs it; you sell seats and collect commission or markup on each. This is the same fixed-departure mechanic agents already know from fixed departures and series vs group vs FIT on the air side.
| FIT (custom) | Group / fixed departure | |
|---|---|---|
| Dates | Client chooses | Fixed by operator |
| Itinerary | Fully flexible | Set, non-negotiable |
| Price per head | Higher | Lower (shared cost) |
| Your margin | Higher per booking | Thinner, but volume by the seat |
| Best client | Couples, families, fussy travellers | Budget, solo, first-timers, large families |
You don't have to pick one. A good agent quotes both: "Here's our group departure at X, or I can do a private version on your dates for a bit more." Let the client decide where they sit.
Customisation: where you actually earn your fee
Anyone can forward a PDF itinerary. What clients pay you for is the tweaking — and that's also where you quietly protect your margin.
- Swap the hotel category. The DMC quote came in 4-star; the client wants 5-star for the anniversary night only. You re-quote two hotels, not the whole trip.
- Add or drop a city. Bali plus a Gili Islands night, or Dubai plus an Abu Dhabi day trip. Each add-on is a fresh net cost plus your markup.
- Fix the pacing. Indian clients with elderly parents or small kids don't want a sightseeing item at 7am. Re-sequencing days costs you nothing and feels like a personal touch.
- Bundle the rest. Visa, insurance, a SIM, airport meet-and-greet, a private transfer instead of a shared one. Each is a small markup and the client thanks you for the convenience.
Keep one rule: re-quote, don't promise on the fly. Ground rates move with season and availability. Tell the client "let me confirm and revert" rather than locking a price you haven't re-checked with the DMC. The package business punishes agents who quote from memory.
Markup: how to price without leaving money on the table
Because you buy net and sell at your own price, there is no fixed commission — your margin is whatever the market and your nerve allow. A few principles that hold up:
- Mark up on the bundle, not the line items. The client sees one price. Don't itemise the hotel, the transfer and your fee separately — that just hands them a shopping list to price-shop.
- FIT carries more markup than group. There's no public comparison price on a custom trip, so the ceiling is higher. On fixed departures you're closer to a known number and compete more on service.
- Build a buffer for surcharges. Peak-season hotel hikes, fuel-linked transfer costs and currency swings can eat a thin margin. Quote with a small cushion rather than going back to the client for more later.
- Don't forget your tax sits on the margin. If you bill the package at 5% without ITC (see below), price so the GST doesn't quietly erase your earnings.
If you also run a B2B portal, set your markup once at the agency level and let it apply automatically — the same logic as adding markup and commission in a B2B portal. It stops you from under-quoting on a busy day.
GST and TCS on packages: the 2026 picture
This is the part agents get wrong most often, so go slowly and confirm everything with your own CA — the rules move.
GST on the package. As of 2026 a tour package can be billed two ways:
- 5% GST without input tax credit (ITC). You charge 5% on the gross package value but you cannot claim ITC on the hotels, flights and transfers you bought to build it. The trade-off the law expects: your invoice must state that the amount charged is the gross amount covering accommodation and transport. Most package sellers pick this because the headline tax is lower and pricing stays competitive.
- 18% GST with full ITC. You charge 18% but can claim credit on your input costs. This can work out better in specific structures, but it's heavier to administer.
Note this is different from how an air travel agent's commission is taxed. On a pure ticket, an agent charges 18% GST on their earnings/commission, not on the full fare, and the trade commonly uses a deemed value (often 5% of basic fare domestic, 10% international) — see GST and TCS on air tickets. A bundled holiday package follows the tour-operator rules above, not the air-ticket rule. As of Budget 2026, confirm the exact treatment for your billing with your CA.
TCS on overseas tour packages. From 1 April 2026, TCS on overseas tour packages is a flat 2%, and the old threshold slabs (5% below ₹7 lakh, 20% above) have been removed. So whether the package is ₹2 lakh or ₹20 lakh, you collect 2% as TCS, deposit it, and the client can adjust it against their income tax. This is collected on top of the package price — show it as a separate line so the client understands it's a tax, not your fee. Verify current rates with CBIC or your CA before quoting.
What you must disclose to the client
The fastest way to lose a client (and risk a Consumer Protection Act complaint) is a package that surprises them later. Put it in writing every time.
- Inclusions and exclusions, in plain words. What's covered — hotel category, meal plan, which transfers, which sightseeing — and what isn't: airfare if not bundled, monument and entry fees, tips, personal expenses, anything optional.
- The cancellation and refund policy, with the slabs. Spell out the non-refundable deposit and the percentage retained at each cancellation window. Most operator policies tighten sharply close to departure. Don't soften this to close a sale; it bites you later.
- That prices can move until confirmed. Ground rates and hotel availability change. State that the quote holds only until booking confirmation.
- Visa and documentation responsibility. Who applies, what's the success caveat, and that visa fees are usually non-refundable even on rejection. See visa services for agents.
- Taxes shown separately. GST on the package and the 2% TCS as their own lines, so there's no "why is it more than you said" call.
One clean inclusions/exclusions sheet plus a one-page cancellation grid, sent before payment, kills almost every dispute before it starts.
How FlightGPT Partner helps
The friction in the packages business isn't the selling — it's juggling suppliers, logins, wallets and invoices. FlightGPT Partner is FlightGPT's B2B portal that puts the air side of your packages behind one login: series fares, group fares, fixed departures and wholesale/net fares aggregated across IndiGo, Air India, Akasa and SpiceJet, so you're not chasing a separate IndiGo, Air India, Akasa or SpiceJet account for the flight leg of every package.
It comes with an agency wallet so bookings draw from a single advance balance, GST invoicing built in, and white-label options so the client sees your brand, not ours. Pair that with your DMC and operator relationships for the ground portion, and you've got the flight side of every holiday quote handled in one place. We'll position this honestly: it's one strong option for the air component and wallet plumbing, not a replacement for your ground suppliers — you still need good DMCs. If you're comparing platforms, weigh it against the field in best B2B flight booking portal and TBO vs Riya vs EaseMyTrip before you decide.
Getting started without overcomplicating it
If you're adding packages to an existing agency, keep the first ninety days simple:
- Pick two or three destinations you can sell. Start where your clients already ask to go — don't try to sell the world on day one.
- Sign up with one aggregator and one direct DMC per destination. Learn their net rates, their cancellation terms and how fast they confirm.
- Build templates. A FIT quote template, a group seat-selling pitch, an inclusions/exclusions sheet and a cancellation grid. Reuse, don't reinvent.
- Sort the tax workflow once. Decide with your CA whether you bill packages at 5% no-ITC or 18% with ITC, set up TCS collection, and make both automatic.
From there it compounds — repeat clients, referrals, and the visa, insurance and forex add-ons that ride along with every trip. If you're earlier in the journey, start with how to become a travel agent and how to start a travel agency, then come back to packages once your flight desk is running. Browse current routes and fares any time on FlightGPT routes or the blog.
Frequently asked questions
Do I need an IATA licence to sell holiday packages?
No. Packages are sourced net from DMCs, tour operators or aggregators and resold under your own name — none of that requires IATA accreditation. IATA mainly matters for issuing air tickets directly through a GDS. You can run a profitable packages business as a sub-agent buying net rates and adding markup. See our guides on becoming a sub-agent without IATA and IATA vs TIDS for the full picture.
What's the difference between a DMC and a B2B aggregator?
A DMC is the ground operator at the destination — they own the hotel contracts, transport and guides in, say, Bali, and quote you a net rate for that one destination. A B2B aggregator is a tech platform that puts ground packages, hotels and sometimes flights from many destinations behind one login with live pricing. DMCs usually give the sharpest ground rate; aggregators give speed and breadth. Most agents use both.
How much can I mark up a holiday package?
There's no fixed commission — you buy at a net (cut-and-pay) rate and sell at your own price, so the margin is whatever the market allows. Custom FIT trips carry more markup than group fixed departures because there's no public comparison price. Always mark up on the bundled total rather than itemising, keep a cushion for peak-season surcharges, and remember your GST sits on the margin. Don't quote from memory; re-confirm net rates before locking a price.
What GST applies when I sell a tour package in 2026?
As of 2026 a tour package can be billed at 5% GST without input tax credit (the common choice — your invoice must show the amount as gross, covering accommodation and transport) or 18% GST with full ITC. This is different from a pure air ticket, where the agent charges 18% GST on commission, not the full fare. Rules change, so confirm the right treatment for your billing with your CA.
How much TCS do I collect on an overseas package?
From 1 April 2026, TCS on overseas tour packages is a flat 2%, with the earlier threshold slabs (5% under ₹7 lakh, 20% over) removed. You collect 2% on top of the package price, deposit it, and the client adjusts it against their income tax. Show it as a separate line so clients don't mistake it for your fee. Verify the current rate with CBIC or your CA before quoting.
What must I disclose to clients before they pay?
Put the inclusions and exclusions in plain words, the cancellation and refund slabs with their windows, a note that prices can move until booking is confirmed, who handles the visa (and that visa fees are usually non-refundable), and taxes shown as separate lines. A clean inclusions sheet plus a one-page cancellation grid sent before payment prevents almost every dispute and keeps you on the right side of the Consumer Protection Act.