If you need to sell your travel agency business, then please contact Chaynuk.com. We will match your business with a buyer.
If you need to sell your travel agency business, then please contact Chaynuk.com. We will match your business with a buyer.
Market & Opportunity
Karachi is Pakistan’s largest city and one of its most dynamic commercial centers, with a large population that includes business travelers, expatriates, tourists, and a sizeable middle class interested in both domestic and international travel. The travel & tourism sector in Pakistan is growing—revenue is expected to rise substantially in coming years, particularly in package holidays and online travel services. (Statista) For someone buying an existing travel agency, this means there is good potential for demand in ticketing, tour packages, visa/Umrah services, hotel and transport bookings. Existing customer relationships, reputation, vendor agreements, and licensing/licensing renewal are major assets.
Legal, Regulatory & Licensing Requirements
Operating a travel agency in Karachi requires compliance with provincial and federal laws. The Principal law is the Travel Agencies Act, 1976 which mandates licensing, maintaining certain minimum standards for operations, and ensuring financial and managerial capacity to run the business. (fmc.com.pk) In Sindh (the province for Karachi), the Department of Tourist Services (DTS) regulates travel agency registration. Required documentation includes: proof of valid National Tax Number (NTN), a bank certificate showing working capital (often ~PKR 400,000), proof of premises (rent/lease deed), sketches/layout of the office with required minimum size (e.g. ~250 sq ft or more), and attested financial statements. (sindhdts.gos.pk)
Valuation, Risks & Due Diligence
When considering a purchase of a travel agency in Karachi, especially within city limits (≤ 10 km), important factors to examine include location (accessibility, foot traffic, visibility), the condition of the existing premises, the strength of brand & reputation, the contracts with airlines, hotels, and tour operators, plus existing liabilities or debts. Also check financial performance—monthly revenues vs expenses—and whether assets (furniture, IT systems, ticketing software, staff) are being transferred. Market risks include economic instability, currency fluctuations, regulatory changes (e.g. visa policies), competition from online travel platforms, and seasonality of tourist demand. Any buyer should engage in thorough due diligence—reviewing licensing status, inspecting premises, verifying financial statements, meeting current clients, etc.—before finalizing a deal.
Travel Agency Buyer’s Purchase Checklist – Due Diligence
1. Legal & Compliance
What to Check
Valid license from the Directorate of Tourist Services (Sindh) under the Travel Agencies Act, 1976.
NTN (tax registration), incorporation certificate (sole prop/partnership/private limited).
Lease/rental deed for the premises.
Latest tax filings and fee receipts.
Why It Matters
Ensures the agency is legally operating and not at risk of penalties or shutdown. A valid license also gives credibility with airlines, embassies, and corporate clients.
2. Financial Performance
What to Check
Audited financials or bank statements for the past 2–3 years.
Monthly income from ticketing, visa, and tour services.
Liabilities or pending dues.
Commission agreements with airlines or tour operators.
Tangible assets (office setup, computers, software, vehicles).
Why It Matters
Verifies if the business is profitable and sustainable. Prevents overpaying for a company with hidden debts or low real income.
3. Client Base & Market Presence
What to Check
Customer database (individuals, corporates, Umrah/Hajj clients).
Google reviews, social media engagement, and referral strength.
Repeat clients and existing group contracts.
Why It Matters
A strong, loyal customer base adds real market value and provides immediate income stability after acquisition.
4. Operations & Staff
What to Check
Employee list with roles (sales, visa, ticketing).
Staff contracts and salaries.
Software systems (Amadeus, Galileo, Sabre, etc.).
Supplier and agent relationships.
Why It Matters
Experienced staff and existing vendor networks reduce the transition period and training cost. Skilled agents also improve client retention.
5. Location & Premises
What to Check
Office visibility and access to main roads or business centers.
Parking space and foot traffic.
Lease duration and renewal terms.
Size and layout (at least ~250 sq ft for licensing).
Why It Matters
Location drives walk-in customers and brand visibility. A good lease prevents relocation costs and business disruption.
6. Reputation & Risks
What to Check
Any pending complaints, lawsuits, or regulatory warnings.
Client feedback history.
Market competition nearby.
Any rebranding or non-compete clauses from the seller.
Why It Matters
Protects you from inheriting a damaged brand or hidden liabilities that could lower the business’s future earnings.
7. Valuation & Deal Terms
What to Check
Breakdown of asking price (assets vs goodwill).
Seller training or transition support.
Payment method and installment options.
Written asset transfer list and non-compete agreement.
Why It Matters
Ensures a fair deal and smooth handover. Prevents the seller from immediately starting a competing agency.