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Tour Operator Business Plan

Are you a travel enthusiast making itineraries for your friends & families? Well, if yes, then you are going to be an excellent tour operator. But for a successful business out of a hobby, a proper plan is needed.

Need help writing a business plan for your tour operator business? You’re at the right place. Our tour operator business plan template will help you get started.

Free Business Plan Template

Download our free business plan template now and pave the way to success. Let’s turn your vision into an actionable strategy!

• Fill in the blanks – Outline
• Financial Tables

How to Write A Tour Operator Business Plan?

Writing a tour operator business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

1. Executive Summary

An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the entire business plan is ready and summarizes each section of your plan.

Here are a few key components to include in your executive summary:

Introduce your Business:

Start your executive summary by briefly introducing your business to your readers.

Market Opportunity:

Tour operator services:.

Highlight the tour operator services you offer your clients. The USPs and differentiators you offer are always a plus.

Marketing & Sales Strategies:

Financial highlights:, call to action:.

Ensure your executive summary is clear, concise, easy to understand, and jargon-free.

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2. Business Overview

The business overview section of your business plan offers detailed information about your company. The details you add will depend on how important they are to your business. Yet, business name, location, business history, and future goals are some of the foundational elements you must consider adding to this section:

Business Description:

Describe your business in this section by providing all the basic information:

Describe what kind of tour operator company you run and the name of it. You may specialize in one of the following tour operator businesses:

• Inbound operators
• Outbound operators
• Domestic operators
• Adventure tour operators
• Group tour operators
• Luxury tour operators
• Online travel agencies
• Describe the legal structure of your tour operator company, whether it is a sole proprietorship, LLC, partnership, or others.
• Explain where your business is located and why you selected the place.

Mission Statement:

Business history:.

If you’re an established tour operator service provider, briefly describe your business history, like—when it was founded, how it evolved over time, etc.

Future Goals

This section should provide a thorough understanding of your business, its history, and its future plans. Keep this section engaging, precise, and to the point.

3. Market Analysis

The market analysis section of your business plan should offer a thorough understanding of the industry with the target market, competitors, and growth opportunities. You should include the following components in this section.

Target market:

Start this section by describing your target market. Define your ideal customer and explain what types of services they prefer. Creating a buyer persona will help you easily define your target market to your readers.

Market size and growth potential:

Describe your market size and growth potential and whether you will target a niche or a much broader market.

Competitive Analysis:

Market trends:.

Analyze emerging trends in the industry, such as technology disruptions, changes in customer behavior or preferences, etc. Explain how your business will cope with all the trends.

Regulatory Environment:

Here are a few tips for writing the market analysis section of your tour guide business plan:

• Conduct market research, industry reports, and surveys to gather data.
• Provide specific and detailed information whenever possible.
• Illustrate your points with charts and graphs.
• Write your business plan keeping your target audience in mind.

4. Products And Services

The product and services section should describe the specific services and products that will be offered to customers. To write this section should include the following:

Describe your services:

Mention the tour operator services your business will offer. This list may include services like,

• Itinerary planning
• Accommodation booking
• Guided tours
• Activities & excursions
• Travel documentation & visa assistance
• Travel Insurance
• Destination management services

Quality assurance & safety measures:

This section should explain how you maintain quality standards.

Additional Services:

In short, this section of your tour operator plan must be informative, precise, and client-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

Unique Selling Proposition (USP):

Define your business’s USPs depending on the market you serve, the equipment you use, and the unique services you provide. Identifying USPs will help you plan your marketing strategies.

Pricing Strategy:

Marketing strategies:, sales strategies:, customer retention:.

Overall, this section of your tour company business plan should focus on customer acquisition and retention.

Have a specific, realistic, and data-driven approach while planning sales and marketing strategies for your tour operator business, and be prepared to adapt or make strategic changes in your strategies based on feedback and results.

6. Operations Plan

The operations plan section of your business plan should outline the processes and procedures involved in your business operations, such as staffing requirements and operational processes. Here are a few components to add to your operations plan:

Staffing & Training:

Operational process:, equipment & software:.

Include the list of equipment and software required for tour operators, such as computers & laptops, printers & scanners, communication devices, safety equipment, booking & reservation system, tour management software, etc.

Adding these components to your operations plan will help you lay out your business operations, which will eventually help you manage your business effectively.

7. Management Team

The management team section provides an overview of your tour operator business’s management team. This section should provide a detailed description of each manager’s experience and qualifications, as well as their responsibilities and roles.

Founders/CEO:

Key managers:.

Introduce your management and key members of your team, and explain their roles and responsibilities.

Organizational structure:

Compensation plan:, advisors/consultants:.

Mentioning advisors or consultants in your business plans adds credibility to your business idea.

This section should describe the key personnel for your tour operator services, highlighting how you have the perfect team to succeed.

8. Financial Plan

Your financial plan section should provide a summary of your business’s financial projections for the first few years. Here are some key elements to include in your financial plan:

Profit & loss statement:

Cash flow statement:, balance sheet:, break-even point:.

Determine and mention your business’s break-even point—the point at which your business costs and revenue will be equal.

Financing Needs:

Be realistic with your financial projections, and make sure you offer relevant information and evidence to support your estimates.

9. Appendix

The appendix section of your plan should include any additional information supporting your business plan’s main content, such as market research, legal documentation, financial statements, and other relevant information.

• Add a table of contents for the appendix section to help readers easily find specific information or sections.
• In addition to your financial statements, provide additional financial documents like tax returns, a list of assets within the business, credit history, and more. These statements must be the latest and offer financial projections for at least the first three or five years of business operations.
• Provide data derived from market research, including stats about the industry, user demographics, and industry trends.
• Include any legal documents such as permits, licenses, and contracts.
• Include any additional documentation related to your business plan, such as product brochures, marketing materials, operational procedures, etc.

Use clear headings and labels for each section of the appendix so that readers can easily find the necessary information.

Remember, the appendix section of your tour operator business plan should only include relevant and important information supporting your plan’s main content.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

This sample tour operator business plan will provide an idea for writing a successful tour operator plan, including all the essential components of your business.

After this, if you still need clarification about writing an investment-ready business plan to impress your audience, download our tour operator business plan pdf .

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Frequently asked questions, why do you need a tour operator business plan.

A business plan is an essential tool for anyone looking to start or run a successful tour operator business. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your tour operator company.

How to get funding for your tour operator business?

There are several ways to get funding for your tour operator business, but self-funding is one of the most efficient and speedy funding options. Other options for funding are:

• Bank loan – You may apply for a loan in government or private banks.
• Small Business Administration (SBA) loan – SBA loans and schemes are available at affordable interest rates, so check the eligibility criteria before applying for it.
• Crowdfunding – The process of supporting a project or business by getting a lot of people to invest in your business, usually online.
• Angel investors – Getting funds from angel investors is one of the most sought startup options.

Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

Where to find business plan writers for your tour operator business?

There are many business plan writers available, but no one knows your business and ideas better than you, so we recommend you write your tour operator business plan and outline your vision as you have in your mind.

What is the easiest way to write your tour operator business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any tour operator business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software .

How do I write a good market analysis in a tour operator business plan?

Market analysis is one of the key components of your business plan that requires deep research and a thorough understanding of your industry. We can categorize the process of writing a good market analysis section into the following steps:

• Stating the objective of your market analysis—e.g., investor funding.
• Industry study—market size, growth potential, market trends, etc.
• Identifying target market—based on user behavior and demographics.
• Analyzing direct and indirect competitors.
• Calculating market share—understanding TAM, SAM, and SOM.
• Knowing regulations and restrictions
• Organizing data and writing the first draft.

Writing a marketing analysis section can be overwhelming, but using ChatGPT for market research can make things easier.

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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How to start a Tour Operator business in 2024: A step-by-step guide

By Brieanne Biblow

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There are so many benefits of being a tour operator , but taking the first step to start your own tour company? That can feel daunting. Like any start-up business, there are lots of pieces that need to come together before you welcome your first customers. With countless resources out there, it’s easy to get overwhelmed when you’ve asked yourself “How do I start an online tour operator business?” We’re here to give you more than just a few tips on starting a travel and tour company. Dive into our practical step-by-step guide on how to start your own tour company.

How to start a Tour Operator business in 2024

1. choose a business niche, 2. register your tour company, 3. design your tour, 4. build relationships  , 5. market your tour, 6. launch your tour, choose a business niche.

Find your passion

The first step to becoming a tour operator is to know what you’re passionate about. If you survey a handful of happy tour guests, do you know the number one thing they’ll say makes a difference between a good tour and a tour they’ll recommend to all their friends? A passionate tour guide.

Your passion for cooking could translate into delicious food tours, or your love of the outdoors could turn into hiking tours, even a passion for all things spooky could transform into starting a ghost tour business. So, take some time to find your passion that you can’t wait to share with others every day.

Evaluate your city

Once you have your passion in mind, it’s time to take a look at your city. Is it a popular tourist destination? Is there anything that’s not being explored? While passion is key, it’s equally important to identify if there’s an opportunity. Passion without opportunity is just a hobby. Check in with your local tourism board to see if they have any market research reports that outline the opportunities and challenges in the industry.

Dig into travel and tourism trends

The travel and tourism industry, like any industry, can see larger trends in pop culture trickle down and open up entirely new business opportunities. Your potential customers are being influenced by trends, so why not do some research, incorporate ones that feel like a fit for you, and watch more bookings roll in.

Some 2024 tourism trends that will be influencing travelers:

• Multi-generational tours : Post-retirement boomers will be looking to travel with their entire families. So creating a tour offering that has something for the whole family could be a great idea.
• Cultural connection : More and more, savvy travelers are always looking for something truly authentic to the destination they’ve traveled to. That doesn’t mean you have to be the authentic expert. Instead, think about exploring opportunities to partner with other start-up businesses in your community that could add this element to your tour offering.
• From screens to reality: Keeping a pulse on popular TV shows and movies can be a great way to come up with unique tour ideas that can target new customers for your business.

Identify your target market

Now that you have innovative tourism ideas , you need to map out what your ideal potential customer looks like. Think about the types of people that will be attracted to your tour.

• What’s their age demographic?
• Where are they coming from?
• What language(s) do they speak?
• What interests do they have?

Who your customers are will determine many of the decisions you make later. This information will also be crucial when you create your marketing strategy. So, take the time to get to know your target market.

Research your competitors

Having found your tour idea and evaluated the market in the previous section, you’re almost ready to register your tour company. But first, you’ll need to research your competition, so you know what you’re up against. Head to Google and search simple like “tour operators near me” and ask yourself:

• What are they doing well?
• Where are their gaps?
• What are their price points like?

Then, find ways to differentiate yourself and stand out.

Register your tour company

With your research complete, now is a good time to consider your options for registering your business. Go to your local tourism board and find out the requirements for starting a tour company in your area. Here are some of the legalities you might have to go through.

Name your tour business

The first thing you need to do is name your business. Your tour name will be used in all of your documentation. Make sure your name is both memorable and descriptive. The most important is if the website domain is available. If your name checks all the boxes, go to your local Registrar of Companies to get it approved and then purchase your domain.

Register your business

Now that you have a name you’re ready to make things official by registering your business. There are different options for how you register— sole proprietorship, partnerships, corporations. Speaking to a small business accountant is a great idea to understand the tax implications of each option. Then, evaluate the pros and cons of each before you make your decision.

Get your business license and permits

Once you’ve registered your business, you’ll need to get a local business license. Check in with your local municipality to do this. You might need to obtain additional permits and licensing based on where you are operating and if you have any vehicles.

Purchase liability insurance

Protect your business, yourself, and your guests by getting liability insurance. Accidents happen, that’s a given. But to ensure that you aren’t held personally liable, you’ll want to meet with an insurance company to learn about what coverage your business needs. Some commonly required in the tourism industry are:

• Commercial General Liability (CGL)
• Property Insurance
• Accounts Receivable Insurance

Register as a tour guide

If you are guiding, you might need to complete a course to become a licensed tourist guide. This allows you to take tourists around a designated geographical area. To find out if you need to register as a guide, check in with your local tourism board.

Open a business bank account

Now that you have a business license, you’ll want to open a corporate bank account. This will help you keep track of all your expenses and revenue and make accounting a lot easier.

Design your tour 

Write your business plan

With all the legalities taken care of, it’s time to write your business plan.

A business plan is a document that holds all of your ideas. It’s your roadmap that helps you determine how you’ll move forward. Include your company description, market analysis, partnership opportunities, and small business goals . It should also include your marketing plan, operations plan, and a list of your vendors, products, and services. It should also contain a variety of financial projections for your first 1-5 years of business. Remember: it’s okay if you don’t have all the answers right away, but it’s good to know what to focus on as you grow.

Side note: once you get up and running, you should learn how to develop a strategic plan to help you reach your ultimate vision for your tour operator business.

Create your Unique Selling Proposition

With your business plan in hand, it’s time to lock down your unique selling proposition.  This explains what makes your tour better than the competition. It’s the benefit that travelers can only get by booking with you — like that you provide ethical travels & tours .  You should be able to define this in one sentence.

Set your tour pricing

Now that you’ve evaluated your market it’s time to determine the value of your tour and choose what you will charge. It’s important to consider your operating costs and market value as well as what you think customers are willing to pay. This part often feels overwhelming for a lot of start-up businesses, which is why we’ve created our free Tour Operator Costing Sheet .

Craft your brand story

Now comes the fun part—it’s time to create a compelling story for your tour. Make sure it has a definite beginning, middle, and end. Find themes that you can carry through the entire experience. A clear narrative makes your tour more memorable.  The goal is to have your guests telling their friends all the neat things they learned in the weeks that follow.

Design a tour logo

Once you’ve created a story for your tour, it’s time to design your brand around it. The first step is to create a logo. Your logo is the visual representation of your business. It will be used in all of your marketing collateral. You can choose to work with a graphic designer, or give free tools like Canva a try. Lookin for some inspiration? Check out more ideas for branding your business .

Build a travel website

Alright! You’re finally ready to create an online presence for your business . This is how many travelers will find you when researching their trips. If you don’t know how to build a website you have a few options; you could hire a contractor, or try your hand with tools like: Wix , Squarespace , or WordPress . Whatever you choose, make sure your website works with online booking system (like Checkfront 😉).

Set up an online booking system

You don’t just want travelers to find you online; you want them to make, and pay, for reservations right on your website. To do this, you need an online booking system . Your booking system can also be used to process your in-person and over the phone reservations. Here are a few links that will help you find the platform that’s right for you.

• What is an Online Booking System?
• How to Create an Online Booking System in 24 Hours (or Less)
• Start Using Checkfront’s Booking System for Free

Build Relationships 

Talk to other tour guides

When starting a business, many entrepreneurs think they need to do everything on their own. This can lead to loneliness and frustration. But, you don’t have to do it alone. Many guides would be happy to share their knowledge with you. Go out and build relationships with other operators in your city, who aren’t direct competitors. Online communities like Tourpreneur are an invaluable resource for tour operators at any stage of their business.

Connect with the local tourism community

Take any opportunity you have to build relationships with local business . While it’s difficult to walk into a room full of strangers and feel like an outsider, you won’t regret pushing yourself to meet other business owners. You’ll feel connected to people in the same boat as you and get a lot from the relationships you make. Just don’t forget to give back. Here are a few key relationships you should build locally:

• With your local city council
• Your local tourism or destination management organization (DMO)
• Your local tourist information office
• Hotel front desks and tour desks

Market Your Tour

With your target market defined and your marketing strategy ready to go, it’s time to get the word out about your amazing business! From online travel agents to social media to email marketing, we’ll cover it all:

List your tours on OTAs

Make it easy for travelers to find you by listing your tour on online travel agents (OTAs). OTA’s like Viator, Expedia Local Expert, Google Things To Do and GetYourGuide already have experience in digital advertising and have built up a mass following. While they will take a commission from your sales, they also have a significant amount of marketing spend at their disposal that your business can benefit from.

Think about it like selling vegetables — while you could set up a booth at a local farmer’s market, you’ll probably get far more customers by selling in a grocery store.

Implement SEO best practices

Now that you’re tour is listed with a couple online travel agents, it’s time to start driving traffic to your website. The best long-term strategy to do so is through search engine optimization (SEO). You can use SEO best practices to optimize your site for Google and other search engines. One of the best things to do is to SEO optimize your product descriptions . That way when someone searches for something related to your tour, your website shows up in search results.

Buy Google Adwords

While SEO is great, it’s a long-term strategy and can takee time to crawl up Google or Bing’s search rankings. To get immediate results you can buy AdWords. Instead of waiting for Google’s algorithm to show your website on the results page, you bid on specific keywords related to your business so your site shows up on top of the page.

Start email marketing

With steady visitor traffic coming to your website, you’ll want to capture their emails so you can stay in touch with them. Email marketing is a powerful tool when done right but it will take some work to stand out in your customers’ inboxes. Our Complete Guide to Email Marketing for Tourism Operators is a great place to start.

Get on Facebook and Instagram

Social media is where your customers are likely spending most of their time online, so you should be there, too. Creating a Facebook page and Instagram account will let you connect to your customers, post pictures of your tours, and make your company information easy to share and recommend. Plus, you can use Facebook Messenger or Instagram’s Direct Messages to answer questions and use the ad network on both platforms to help more people discover your tour.

Launch Your Tour

Host Your Friends and Family

As you prepare for a successful business launch , you’ll want to do a few test runs. We recommend a pre-launch buzz campaign or hosting a few friends and family first. Think of it as your dress rehearsal. Go through the tour from start to finish and collect as much feedback as you can. Once you feel confident that you’ve worked out the kinks, you’re ready to launch! 

Final thoughts

Building your own tour business is no easy feat. From designing a tour and evaluating your market, to building relationships, your brand, your online presence, and getting those first customers through the door. There’s a lot of pieces to put together. However, following this step-by-step guide and your intuition you’ll have a successful tour operator business in no time.

Want to get your tour business off to a running start?

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How to create a tour operator business plan in 8 steps

Preparing to Write a Business Plan

Tour operator business plan template, tips and tricks for a strong tour operator business plan.

Wondering how to turn your tour operator idea into a real business? The first step to launching a startup and getting investors onboard is to develop a formal proposal called a business plan . Whether you want to start a travel agency, a walking tour company, or an adventure travel business, you will use a business plan to communicate exactly how you plan to make your idea come to life. 

Creating a tourism business plan might sound daunting; in this article, we’ll show you how to do one and offer lots of advice for first-time founders. You’ll be able to use this article as a tour operator business plan template to write your own sample business plan (as an exercise) or to create the real thing.

To more clearly illustrate how to create a tour operator business plan, we’ll use a sample business as we go through each section. Our sample business is a small tour operator startup that specializes in ecotourism in Thailand.

Before you start to create your official business plan, it can be helpful to think through several aspects of your business so that you are fully prepared to address each topic in the business plan template. One excellent preparation exercise is to complete a Business Model Canvas for your company. 

The Business Model Canvas encourages you to think critically about your customers, cost structure, revenue streams, marketing strategy, and more. It’s the perfect warm-up for your business plan because you’ll incorporate your Business Model Canvas notes into the actual business plan document. We recommend that you do this exercise with your co-founders, if you have any, and with a whiteboard – you’ll probably make lots of changes as you go!

You can find a printable Business Model Canvas template here .

Your tour operator business plan should contain at least seven sections: an executive summary, a company overview, a description of your services, an analysis of your market, an implementation plan, a team summary, and a financial plan. You might have one or more appendices at the end, if you have additional relevant information to include. The finished product should be formatted nicely and incorporate your company’s logo and branding.

Executive Summary

As the first component of your business plan, the executive summary is arguably the most important section. If you’re pitching your idea to investors, they’re likely very busy people, so you want to grab their attention from the beginning. The executive summary should contain a concise outline of your tour operator company’s objectives and goals, your mission and/or vision statements , your key success factors, and a clear description of your value proposition. 

Company Overview

Think of this section as what you would post on the “About” section of your tour operator company’s website. The company overview should explain who your company’s key leaders are, how and when the business started, what the ownership structure looks like (if you have investors, for example), where your office is located, and an outline of your current assets and debts. If you’re in the early stages of your business, this section might be quite short.

Operations Plan

The operations plan is where you describe exactly what your company will offer. What kinds of tours will you sell? Where exactly will you operate? This is the type of information you would list on your website for potential customers or guests to read – but without too much of a sales pitch. 

In this section, it can also be helpful to include a description of the full “ life cycle ” of your business. What happens before, during, and after a tour? What steps does the guest complete, and what happens behind the scenes at your company’s office?

Thinking about our Thai ecotourism company, we might illustrate how someone could book a tour perhaps six months in advance on our website. Between booking and arrival, we coordinate accommodation, meals, and transportation with partner providers. When the tour concludes, we offer transportation back to the airport and follow up with a special offer to book another tour with us at a discount. 

Market Analysis

This section explores your specific niche within the tourism industry and the geographic location(s) where you plan to operate. Who are your target clients or guests? Who are your main competitors? What trends exist in this facet of the industry? Is the amount of visitors to your location increasing or decreasing? 

Try to include statistics from reputable sources whenever you can. Destination marketing organizations, tourism bureaus, and air traffic data, just to name a few, can provide valuable insight and add credibility. This section should leave no stone unturned so that your reader can truly understand your market conditions.

In our ecotourism business in Thailand, for example, we would include information about travel trends in Thailand (like the most popular feeder markets), new air routes, economic trends, the number of new hotels being built, etc. We would also explore the ecotourism market; are more people choosing eco-friendly travel options today compared to five years ago? What companies are the current ecotourism market leaders globally and in Thailand?

Implementation

Now that you’ve explained your business idea and described the market in which you plan to operate, it’s time to outline exactly how you will bring your tour operator business to life. This section should include a SWOT analysis , details about your marketing and pricing strategies, and a sales projection. 

In the SWOT analysis , you will explore your company’s strengths, weaknesses, opportunities, and threats. What does your company offer that nobody else in the market does? What are some potential challenges that you will need to face? Using our ecotourism company example, a threat could be natural disasters – if there are floods or mudslides, our business cannot operate. On the other hand, an opportunity is that more people are interested in eco-friendly travel options. 

Your marketing and pricing strategies should be very specific. How will customers find your company? Which online channels will you use? Will you work through travel agents or directly with your customers? 

Your pricing strategy should include the exact rates you plan to charge for at least a year in advance. For example, our ecotourism company in Thailand might charge $699 for a package during low season, $899 during high season, and $999 over holiday periods, with rates increasing 5% each year. 

We might also offer a 10% discount for advance purchase bookings made at least 6 months in advance and charge a 50% cancellation fee for any reservations cancelled within 3 months of the tour departure date. Based on your pricing strategy, you can create a sales projection that will estimate your company’s sales performance, preferably over the next three years.

Team Summary

After your reader understands what your tour operator business will do, they’ll wonder who is going to make it happen. And if you’re planning to launch a full-fledged tour operator business, you’re probably not going at it alone. The Team Summary section should include a thorough plan for your company’s organizational structure, key leaders, employees, and training processes. 

Do you already have a management team in place, or will you need to hire additional leaders? How many employees will you need, and how much will you pay them? And how will you train and develop your employees? The Team Summary should answer all of these questions and provide enough information for potential investors to understand exactly how you plan to staff your business, pay your employees, and ensure all team members are trained properly. 

Financial Plan

The financial plan is extremely important to potential investors because they will want to maximize the return on their investment. Your financial plan is essentially a projection of your revenue streams and cost structure for your company’s first five or so years of operation. It will include not only revenue from ticket sales and costs from employee salaries, but also details like tour-operator software costs, insurance, taxes, marketing spend, depreciation of assets, interest on loans, and more. 

If you don’t have a finance background yourself, it may be helpful to seek assistance from an accountant or someone who knows the ins and outs of financial modeling. 

Additional Information

In an appendix, you can include supporting information or statistics that may be helpful for potential investors, but not essential to your business plan. For instance, you could include a full report on air traffic trends that you used in your Market Analysis section.

Download Your Tour Operator Business Plan Template

Now that you know what a Tour Operator Business Plan should include, below we provide the one we have specially created for you.

Writing a business plan is certainly not an easy task. It’s time consuming and requires a lot of thought, but a well written business plan can lead to significant growth for your company. As you complete your business plan, keep these pieces of advice in mind:

• Conduct thorough research on your market . When you pitch your company to investors, you want to be seen as an expert, so learn as much as you can about your competitors and market trends.
• Simplify your words and descriptions whenever possible . A business plan is not the place to wow your reader with flowery language – instead, you want your reader to easily grasp your value proposition. Think about writing so that a fifth-grader can understand it. The last thing you want is for your reader to be confused about what your company actually does.
• Don’t be afraid to make changes . As you work on your business plan, you might discover that some aspects of your business need to be adjusted for the greater good of the company. After all, the companies that are the most adaptable are the ones that survive!
• Get a second opinion (or a third or a fourth). A good test of your business plan’s readability and clarity is to let someone outside your industry read it, like a family member or friend. If they have a lot of questions, you might need to adjust your descriptions or more clearly explain your plans.
• Proofread ! Your business plan is a reflection of your company’s values. If your formatting is sloppy and your text is full of typos, your reader might question whether you have the attention to detail necessary to run a successful business.

Now that you have all the tools to create a great tour operator business plan, it’s time to get to work!

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Adrienne Fors is the founder of Strategic Stays, a consultancy specializing in tech solutions and copywriting for short-term rental businesses and boutique hotels. She was previously a Market Manager at Expedia, and she graduated from the School of Hotel Administration at Cornell University. Adrienne is originally from Minneapolis, Minnesota and enjoys traveling and playing tennis.

Mize is the leading hotel booking optimization solution in the world. With over 170 partners using our fintech products, Mize creates new extra profit for the hotel booking industry using its fully automated proprietary technology and has generated hundreds of millions of dollars in revenue across its suite of products for its partners. Mize was founded in 2016 with its headquarters in Tel Aviv and offices worldwide.

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A Step-By-Step Guide to Creating a Tour and Travel Business Plan

Are you thinking about starting a tour and travel business? If so, you will need to create a business plan. This document is essential for any business, and it will help you map out your goals and strategies.

In this blog post, we will outline a step-by-step guide on creating a tour company business plan. By following these steps, you will be able to create a plan that is tailored to your specific business. Let's get started!

Why Your Tour Company Needs a Tour Company Business Plan

For any tour company to be successful, they need to have a well-developed business plan.

A business plan acts as a roadmap, providing essential information on the market and industry you are operating in, the marketing strategy you can use to reach your target audience, pricing structures and legal regulations related to the operations of your business.

A well-crafted plan also allows entrepreneurs to budget their tours, identify potential areas of risk before they start operations and find ways to gain competitive edge over competitors. It serves as an invaluable guide that can help businesses make informed decisions on all aspects of running a prosperous venture while also providing assurance that they are compliant with all applicable local laws.

Benefits of a Tour Operator Business Plan

Having a written plan helps you set realistic objectives and develop operational marketing strategy built for success. So when starting out with your own tour company, it pays to invest time into creating an effective business plan that covers all bases.

Doing so will enable you to launch a strong product that stands out and provides customers ultimate satisfaction!

How do I write a tour operator business plan?

Now that you understand why a tour and travel business needs a well-crafted business plan, you're probably wondering how to create one. Sure, you can just use a tour business plan template, but it's still better to craft your own tour business plan.

So, here are the steps you need to follow to create one.

Executive summary

An executive summary is the first and most important part of your tour business plan. In a single page, you should include your company's mission and vision statement, objectives and strategies, financial projections and any other relevant information. This is the part where you need to grab people's attention and make a strong first impression.

As the word executive summary suggests, though, make sure it is short and to the point . You don't want to bore readers with lengthy introductions or details they don't need.

Important points to add in your executive summary are the following:

• clear business concept
• goals and vision
• what sets you apart
• your target market
• marketing strategies
• projected financial state
• the purpose of your business plan, whether to attract investors or strictly for your own planning purposes

Company overview

Your company overview should give a detailed understanding of who you are and what you do as a tour business. Explain your company's history, vision and mission statements along with the services you offer.

Be sure to also include not only what you do, but why you do it. Your company may have a unique angle that sets you apart from the competition.

For example, what is it in your skydiving or guided tours or adventures that sets you apart from the other you in your area? Defining your company overview serves as a brand story that your customers can connect to and guides you to the right direction.

Industry analysis

This is where you discuss the broad and deep travel industry research in your specific industry. An industry analysis is also called that market analysis of your travel business.

You need to identify the current tour and travel trends, understand your target market, evaluate existing tour companies in your field and analyze your strategies.

When analyzing the tourism industry where your travel agency business operates, you should also be aware of any new tour technology, laws, and regulations. Doing your due diligence on the tourism industry will give you a better understanding of the tour market and how to position your tour business.

Competitor analysis

Your tour business plan should also include a competitor analysis. This helps you understand the market forces and how your business can compete against them.

Analyzing tour competitors should include looking at your prices, packages and tour quality. Doing this will help you come up with ways to position your tour business and make it stand out.

You might also conduct a SWOT analysis to identify your company's strengths, weaknesses, opportunities and threats.

Customer analysis

Having a tour plan that includes an analysis of your customers helps you understand your target clients. It involves researching their needs and preferences, satisfaction and feedback.

By doing customer research, you can better customize packages and services to meet your customers' needs. This will help them build loyal customer relationships, eventually resulting in more tour bookings.

Operational planning

Here goes the most detailed and meaty part of tour business planning. In this important section, you should include your legal structure, risk management strategies and management plans.

You should also include safety measures and policies they are planning to implement. This helps businesses stay organized, be accountable and avoid tour-related risks.

This is also where you will consider any tour software they might need to manage operations – from booking software, distribution channels, or any other partnerships with other businesses.

Team Summary

Use your team summary section to list the key people involved in your tour business and their roles. This is also where you can list any experts, guides, operators, and the management team you will be working with.

Using an organizational chart will allow you to quickly visualize the team structure and make sure all tour business roles are filled.

Financial planning

Your financial plan is an essential element of successful business planning. When creating a business plan, you should include revenue forecasts and expenses. They can also include pricing strategy, cost control methods, cash flow forecasts, financial statements and balance sheets.

Having a tour financial plan will help you make better business decisions, raise capital and compile budgets. If your travel company is seeking potential investors, you should also include your investment strategies and exit plans.

Marketing plan

It goes without saying that tour marketing is an important component of tour businesses.

Your tour business plan should include marketing strategies and promotion tactics. This includes your pricing, advertising channels, and other marketing ways. You should also consider how you are going to use social media and other tour-related technologies to reach your target customers.

Wrapping up

Creating a tour business plan can be overwhelming, but it is essential for tour businesses. Taking the time to do your research and include all the necessary elements in your tour business plan will help ensure success.

As an overview, here are the parts of a successful tourism business plan:

• executive summary
• company overview
• competitor analysis
• customer analysis
• operational plans
• team summary
• financial planning
• marketing plan.

Get started with Ticketinghub

Investing in tour technology and software is also a great way to make your tour business stand out from the competition. Online reservation software for tour operators like Ticketinghub is designed to help tour businesses manage tour bookings, marketing and operations.

Our platform is simple enough for any business owner to use yet powerful enough to grow a large travel company's sales. We offer the most complete solution on the market with features like automated pricing, customizable booking engine, instant online quotes and more than 40 different languages supported by our customer service team.

Furthermore, you can integrate other programs and tools such as Google Analytics, Stripe, SumUp, and more.

Make the most of your tours and activities reservations with Ticketinghub. Book a demo to learn more today.

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How to create a business plan for a tour or activity company

Each TrekkSoft customer has their own story about how and why they became a tour operator or activity provider.

Some tour operators realised that they love educating others and providing them with meaningful cultural experiences.  Others started activity companies simply because they love the sport, activity, or adventure and wanted to introduce others to it.

Whatever your company and passion, you'll need a business plan to make sure your venture is both financially and conceptually viable. Let us help you out.

1. Fill our Business Model worksheet

We've created a Business Model worksheet especially for tour and activity business owners  looking to define their business ambitions and map a direction forward. Print out a copy, have a few pens handy, and unleash your business creativity. You could also have fun covering a large print-out with Post-it notes.

DIY task: While working on the worksheet, ask yourself:

• Who are my key partners?
• What are my key activities?
• What are my key resources, e.g. online booking software ?
• What are my value propositions?
• What do my customer relationships include?
• What are my customer segments?
• What channels are important to my business, e.g. partnering with travel agents ?
• What is my cost structure?
• What are my revenue streams?

2. Define goals and objectives for your tour business or activity company

Imagine your business five years from now. What will it look like? How many customers will go on your tours per week, or how many activities will be bookable on your website?

Picture the future, define 5-10 concrete objectives, and then list the steps required to get there.

Some goals and solutions include:

• Reach new markets > Partner with local travel agents and activity providers
• Improve booking experience > Enable online bookings to save customers time with a software provider such as TrekkSoft
• Expand the tours I offer > Identify gaps in the market that I can fill with my experience and resources, then run trial tours to collect feedback from

3. Work out your finances on your business model

No matter how enthusiastic you are, it's important to ensure that your tour business or activity company makes economic sense. You're an entrepreneur, after all!

Ask yourself:

• How much initial investment will my tour company need?
• When will I start getting a profit?
• If I get any investment, when can investors (including myself) expect a return?
• What are my projected profits over time?
• Will I be able to devote myself to the tour or activity business in a financial sense?
• What kind of salary or income can I expect from my tours or activities?
• What are the chances the business will fail? 
• What will happen if it does?
• How can I reduce risk, or plan for a worst-case scenario?

4. Define exactly how your tours and activities are of value

A  useful tool from Strategyzer is their Value Proposition Canvas , which makes it easy to define  how you are creating value for your customers and how to design products and services they really want.

5. Create a marketing strategy that's optimised for your customers

One marketing plan doesn't fit all, especially considering the wide range of tours and activities on the market.

• Who is my target audience?
• How old are they?
• Where are they from?
• What do they do for a living?
• What experience and memories do they want to gain from my tour or activity?

Next, research and create a marketing strategy that these customer segments will best respond to.

You may consider print marketing, or a well thought-out text and visual marketing strategy. Also, effective social media use is key to your marketing efforts, especially if you're targeting millenials.

• How to create a marketing plan for tour and activity operators
• A complete guide to visual content marketing for professionals in the tourism industry

While these steps are general, be sure to tailor each step on your marketing plan to your audience. Talk in their language and promote your tours or activities in a way they'll respond to. Good luck!

Learn how TrekkSoft can help you grow your online presence and get more bookings

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Tour Operator Business

Back to All Business Ideas

How to Start a Tour Operator Business

Written by: Carolyn Young

Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on May 17, 2023 Updated on May 7, 2024

Investment range

$2,300 - $10,300

Revenue potential

$108,000 - $360,000 p.a.

Time to build

0 – 3 months

Profit potential

$86,400 - $144,000 p.a.

Industry trend

Are you an entertainer? One of the ways you could use your skills is by starting a tour operator business. You could offer tours to see the main attractions in your city, tours of natural areas, or even tours of the food scene in your city. The tour operator industry took a hit during the pandemic, but it’s coming back strong in 2023 and is worth more than $10 billion, so there’s money to be made.

But first, you’ll need some business know-how. Luckily, this step-by-step guide details all you need to know to start a successful tour operator business.

Looking to register your business? A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple.

Form your business immediately using ZenBusiness LLC formation service or hire one of the Best LLC Services .

Step 1: Decide if the Business Is Right for You

Pros and cons.

• Meet lots of people and show them a good time
• Good profit potential
• Growing market
• Business needs to be based in an area with attractions of some kind
• Can be somewhat seasonal

Tour operator industry trends

Industry size and growth.

• Industry size and past growth – The U.S. tour operator industry is worth $10.3 billion in 2023 after declining an average of 3.4% annually for the last five years due to the pandemic.(( https://www.ibisworld.com/united-states/market-research-reports/tour-operators-industry/#:~:text=Tour%20Operators%20in%20the%20US%20industry%20trends%20(2018%2D2023),falls%20to%206.6%25%20of%20revenue. ))
• Growth forecast – The U.S. tour operator industry is projected to grow an impressive 19.4% in 2023. 
• Number of businesses – In 2023, 10,286 tour operator businesses are operating in the U.S. 
• Number of people employed – In 2023, the U.S. tour operator industry employs 44,534 people.

Trends and challenges

• Many tourists are seeking tours to “hidden gems” rather than the normal tourist spots.
• Many people are booking their travel activities, including tours, on mobile apps.
• Technology is playing an increasing role in the tour operators industry, requiring tour operator business to make an investment in technology.
• Current economic conditions may negatively impact the travel industry in general. 

Demand hotspots

• Most popular states – The most popular states for tour guides are Alaska, California, and Oregon. (( https://www.zippia.com/tour-guide-jobs/best-states/#oregon ))
• Least popular states – The least popular states for tour guides are Minnesota, Michigan, and Louisiana.

What kind of people work in tour operator businesses?

• Gender –  53% of tour guides are female, while 47% are male. (( https://www.zippia.com/tour-guide-jobs/demographics/ ))
• Average level of education – T he average tour guide has a bachelor’s degree.
• Average age – The average tour guide in the US is 34.3 years old.

How much does it cost to start a tour operator business?

If you’re going to do walking tours, your startup costs should be around $2,000. Costs include a computer and a website. If you plan to give tours in a vehicle like a trolley, your costs will be closer to $10,000.

How much can you earn from a tour operator business?

You can probably charge about $120 per person for a half day tour or $200 for a full day tour. Your profit margin should be about 80% if you run your business from home.

In your first year or two, you could work from home and have 30 customers a week, 30 weeks a year, at $120, bringing in $108,000 in revenue. This would mean $86,400 in profit, assuming that 80% margin. 

As you gain traction, you might have 100 customers a week, 30 weeks a year.  At this stage, you might have a kiosk and hire staff, reducing your margin to around 40%. With annual revenue of $360,000, you’d make a tidy profit of $144,000.

What barriers to entry are there?

There are a few barriers to entry for a tour operator business. Your biggest challenges will be:

• Being in a good location where people will pay for tours
• Having extensive knowledge of your tour area

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Step 2: hone your idea.

Now that you know what’s involved in starting a tour operator business, it’s a good idea to hone your concept in preparation to enter a competitive market. 

Market research could give you the upper hand even if you’ve got the perfect product. Conducting robust market research is crucial, as it will help you better understand your customers, your competitors, and the broader business landscape.

Analyze your competitors 

Research tour operator businesses to examine their services, price points, and customer reviews.

• Make a list of tour operator businesses that offer similar services. 
• Review your competitors’ services – their features, pricing, and quality – and marketing strategies.
• Check out their online reviews and ratings on Google, Yelp, and Facebook to get an idea of what their customers like and dislike.
• Identify your competitors’ strengths and weaknesses. 

This should identify areas where you can strengthen your business and gain a competitive edge to make better business decisions.

Why? Identify an opportunity

You’re looking for a market gap to fill. For instance, maybe the local market is missing an inbound tour operator, or a tour guide business that offers travel agency services as well.

You might consider targeting a niche, such as food scene tours or adventure travel tours.

This could jumpstart your word-of-mouth marketing and attract clients right away. 

What? Determine your services

You’ll need to determine what kind of tours you want to give. Consider what’s in your area that might be of interest to tourists. Your best bet is to pick a niche that other tour companies are not targeting. You could also offer travel agent services like booking hotel accommodations or flights.

How much should you charge for tours?

Your prices should be based on market prices in your area, but also on your operating costs.

Once you know your costs, use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify your target market

Your target market is likely to be tourists, and the tourists who participate in tours are often older, but it will depend on the type of tours you offer. If your tours are likely to appeal to older tourists, you can market to them on Facebook. However, your best bet is to partner with travel agencies who can promote and book your tours. 

Where? Choose your business premises

In the early stages, you may want to run your business from home to keep costs low. But as your business grows, you’ll likely need to hire workers for various roles and may need to rent out an office or a invest in a kiosk to set up in high traffic tourist areas. You can find commercial space to rent in your area on sites such as Craigslist , Crexi , and Instant Offices .

When choosing a commercial space, you may want to follow these rules of thumb:

• Central location accessible via public transport
• Ventilated and spacious, with good natural light
• Flexible lease that can be extended as your business grows
• Ready-to-use space with no major renovations or repairs needed

Step 3: Brainstorm a Tour Company Name

Here are some ideas for brainstorming your business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better 
• Name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “tours” or “guided tours”, boosts SEO
• Name should allow for expansion, for ex: “GlobeStride” or “Boundless Journeys” over “EcoTreks” or “Dive Quest”
• A location-based name can help establish a strong connection with your local community and help with the SEO but might hinder future expansion

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

Find a Domain

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Finally, make your choice among the names that pass this screening and go ahead and reserve your business name with your state, start the trademark registration process, and complete your domain registration and social media account creation. 

Your business name is one of the key differentiators that sets your business apart. Once you pick a name, reserve it and start with the branding, it’s hard to switch to a new name. So be sure to carefully consider your choice before moving forward. 

Step 4: Create a Tour Operator Business Plan

Here are the key components of a business plan:

• Executive Summary: Summarize your tour operator business, highlighting the unique travel experiences you offer and your target market.
• Business Overview: Describe your tour operator business, including the types of tours you provide, destinations you cover, and the travel niche you specialize in.
• Product and Services: Detail the tour packages and services you offer, such as guided tours, transportation, accommodations, and any unique experiences or add-ons.
• Market Analysis: Analyze the demand for travel and tours in your chosen destinations, considering factors like tourism trends, customer preferences, and competitor offerings.
• Competitive Analysis: Identify other tour operators in your target locations, their strengths and weaknesses, and explain how your tours will differentiate themselves through quality, pricing, or unique experiences.
• Sales and Marketing: Outline your strategies for reaching and attracting customers, including digital marketing, partnerships with hotels or travel agencies, and promotions to drive bookings.
• Management Team: Introduce key team members responsible for running the tour operator business, highlighting their experience in the travel industry and customer service.
• Operations Plan: Describe the logistics of running your tours, including itinerary planning, tour guides, transportation, safety measures, and quality control.
• Financial Plan: Present financial projections for your tour operator business, including startup costs, revenue forecasts based on anticipated bookings, expenses for tour logistics, and expected profitability.
• Appendix: Include any relevant documents, such as tour itineraries, partnerships with hotels or attractions, insurance policies, and marketing materials.

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business! 

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you are planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to tour operator businesses. 

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state. 

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your tour operator business will shape your taxes, personal liability, and business registration requirements, so choose wisely. 

Here are the main options:

• Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• General Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company ( LLC ) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.  Here’s how to form an LLC .
• C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.  Read how to start a corporation here .
• S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC , which just need to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization , and answer any questions you might have. 

Form Your LLC

Choose Your State

We recommend ZenBusiness as the Best LLC Service for 2024

Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number , or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN. 

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

The IRS website also offers a tax-payers checklist , and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you are completing them correctly.

Step 7: Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

• Bank loans: This is the most common method but getting approved requires a rock-solid business plan and strong credit history.
• SBA-guaranteed loans: The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan .
• Government grants: A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
• Friends and Family: Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
• Crowdfunding: Websites like  Kickstarter  and  Indiegogo  offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like  Fundable  and  WeFunder  enable multiple investors to fund your business.
• Personal: Self-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best option, other than friends and family, for funding a tour operator business. You might also try crowdfunding if you have an innovative concept.  

Step 8: Apply for Tour Operator Business Licenses and Permits

Starting a tour operator business requires obtaining a number of licenses and permits from local, state, and federal governments.

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration ( OSHA ), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package . They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account .

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your tour operator business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account. 

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

• General liability: The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business Property: Provides coverage for your equipment and supplies.
• Equipment Breakdown Insurance: Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation: Provides compensation to employees injured on the job.
• Property: Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto: Protection for your company-owned vehicle.
• Professional liability: Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP): This is an insurance plan that acts as an all-in-one insurance policy, a combination of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business. 

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks.  

You may want to use industry-specific software, such as  Flybook , FareHarbor , or Resmark , to manage your bookings, email communications, and customer lists.

• Popular web-based accounting programs for smaller businesses include Quickbooks , Freshbooks , and Xero . 
• If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial.

Create a website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism. You can create your own website using services like WordPress, Wix, or Squarespace . This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.

Your customers are unlikely to find your website, however, unless you follow Search Engine Optimization (SEO) practices. SEO will help your website appear closer to the top in relevant search results, a crucial element for increasing sales. 

Make sure that you optimize calls to action on your website. Experiment with text, color, size, and position of calls to action such as “Book Now”. This can sharply increase purchases. 

Here are some powerful marketing strategies for your future business:

• Leverage Social Media Influencers: Collaborate with travel influencers on platforms like Instagram and YouTube to showcase your tour packages, tapping into their engaged audiences and fostering trust through authentic experiences.
• Run Targeted Online Ads: Utilize platforms like Google Ads and social media advertising to target specific demographics interested in travel, ensuring your ads reach potential customers who are more likely to engage with your tours.
• Create Compelling Visual Content: Invest in high-quality photos and videos of your tour destinations, sharing them across social media, your website, and promotional materials to evoke emotions and entice potential customers.
• Implement Referral Programs: Encourage satisfied customers to refer friends and family by offering incentives such as discounts or exclusive perks, amplifying your customer base through word-of-mouth marketing.
• Collaborate with Local Businesses: Partner with local hotels, restaurants, and other businesses to cross-promote services, creating mutually beneficial relationships that expand your reach within the travel community.
• Host Virtual Tours: Capitalize on the growing trend of virtual experiences by offering online tours or live-streamed previews, allowing potential customers to get a taste of your offerings before committing.
• Optimize for Local Search: Ensure your business appears in local search results by optimizing your Google My Business profile, collecting positive reviews, and providing accurate information, making it easier for customers to find and choose your tours.
• Offer Limited-Time Promotions: Create a sense of urgency by periodically offering limited-time promotions or exclusive deals, encouraging potential customers to book your tours sooner rather than later.
• Attend Travel Expos and Events: Participate in travel expos and events to showcase your offerings directly to an audience interested in travel, allowing you to engage with potential customers face-to-face and establish personal connections.
• Focus on Customer Experience: Prioritize exceptional customer service and personalized experiences to build a positive reputation, as satisfied customers are more likely to become repeat clients and ambassadors for your business.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that sets it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your tour operator business meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire. 

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your tour operator business could be: 

• Discover the extraordinary with our immersive and personalized tours
• Leave no stone unturned with our comprehensive and authentic tour itineraries
• Discover the hidden gems with our knowledgeable tour guides

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a tour operator business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in tour operator businesses for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in tour operator businesses. You’ll probably generate new customers or find companies with which you could establish a partnership.

Step 12: Build Your Team

If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a tour operator business include:

• Tour Guides – give tours, customer service
• Marketing Lead – create and implement marketing strategies
• General Manager – scheduling, accounting

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need. 

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed , Glassdoor , or ZipRecruiter . Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent. 

Step 13: Run a Tour Operator Business – Start Making Money!

The tourism industry has bounced back in a big way since the pandemic, so now could be a great time to start a tour operator business. It’s an exciting way to share the highlights of your area, have some fun, and make some money. You could eventually hire a whole team of tour guides to take your business to the next level.

Now that you understand the business, you’re ready to plan your itineraries and get your successful tour operator business on the road!

• Tour Operator Business FAQs

A tour operator business can be profitable depending on various factors such as market demand, pricing strategies, operational efficiency, and the ability to provide exceptional customer tour experiences.

During a typical day at a tour operator business, various activities take place to ensure smooth operations and high-quality service. These include responding to customer inquiries and booking requests, designing and customizing tour itineraries, coordinating with suppliers, managing reservations and payments, addressing customer feedback, conducting research on new destinations, and collaborating with marketing and sales teams.

The growth potential of a tour operator business is significant, with opportunities to expand services to new destinations, diversify tour offerings, enhance customer experiences, and leverage digital marketing strategies. Developing partnerships with other businesses in the travel industry can also contribute to growth and increased revenue potential.

A tour operator business falls under the travel and tourism industry and operates as a service-based business that organizes and arranges travel experiences for individuals or groups. The business acts as an intermediary between customers and various suppliers, providing comprehensive and well-planned travel experiences through pre-packaged tours or customized itineraries.

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• Decide if the Business Is Right for You
• Hone Your Idea
• Brainstorm a Tour Company Name
• Create a Tour Operator Business Plan
• Register Your Business
• Register for Taxes
• Fund your Business
• Apply for Tour Operator Business Licenses and Permits
• Open a Business Bank Account
• Get Business Insurance
• Prepare to Launch
• Build Your Team
• Run a Tour Operator Business - Start Making Money!

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Tour Company Business Plan: Everything You Need to Know

A tour company business plan is a document that contains all the ideas an individual has for the business. 3 min read updated on January 01, 2024

A tour company business plan is a document that contains all the ideas an individual has for the business. It's like have a roadmap to follow to keep the company heading in the right direction.

The Sections of a Business Plan

Basic Information

A tour company business plan contains several sections to be developed in a clear and detailed manner, such as a description of the company, partnership opportunities, and market analysis. It will also include information for an operations plan, a marketing plan, and a list of the products and services your company will provide.

Within the business plan, you'll be providing information that includes financial projections for the business, which will take into account how the seasons can affect tourism, and a selling theme or proposition explaining why your tour company surpasses the competition.

Executive Summary

This portion of the business plan provides a concise summary of each section.

Business Overview

This section describes the business. It will include:

• Business formation information.
• Business type.
• The legal structure of the business.
• Business location.
• The means of doing business, i.e., street-based or internet based.

Operations Plan

The operations area fully describes how the business will operate and be set up. It will also include when tasks will be implemented and who will be responsible for completing the tasks.

Market Analysis

Market analysis is an important area and one that has several questions that need informative answers. You'll provide information on who your major competitors are, what their pricing strategy is, how you'll price products/services in relation to their price structure, what the demand is for your product or service, the market demand for your product, and what the consumer behavior is toward the product or service.

Team and Management

The team of employees is the driving force of the company. Describe the team, the role of each team member, and who will need to be hired to support the execution of your product/service.

Describe your plans for implementing your ideas to promote a successful business.

Financial Plan

Outline the financial forecast for the business. The information covers effective pricing, marketing budgets, cost of sales, cost of staff, and other elements/costs affecting the business.

Legalities of Starting a Tour Company

• Name the business something that's memorable and descriptive.
• Check to see if the domain for the name you've chosen is available. If so, buy it.
• Register the business to make it official.
• Choose the business structure : a partnership, corporation, or sole proprietorship. Evaluate the pros and cons of each structure prior to making a decision.
• Contact the tourism board in your area to find out what the requirements are for opening a tour company.
• Check with your particular city or state about the permits and licenses needed to operate a tour company.
• If you're planning to be a tour guide, you may need to complete a course to attain a license. Check with the tourism board for your area for requirements.
• Open a business bank account to handle tracking of revenue and expenses.
• Purchase liability insurance to ensure the business isn't held liable. Common types of insurance for tourism are property insurance, accounts receivable insurance, and commercial general liability insurance.

Starting a Tour Company

There are several things to do before opening for business as a tour company.

Choosing a Niche and Finding Your Passion

Choose a focus for your company. Keep that focus fresh and stay passionate about the service you're providing.

Repeating the same information to clients several times a day is repetitive and can become boring. The boredom will reflect in your voice, and your customers will pick up on it, which won't be good for business.

Evaluate Your City

Do your homework to determine if your city will benefit from a tour company. Things to consider include if the city is a popular tourist destination, current travel trends, and if there's anything your company can offer that isn't already available.

Identify Your Target Market

Know who your company is focusing on and what areas to cover, such as outdoor activities, fine dining, and points of interest or things to do.

Research Competitors

Know your competition. This means having an understanding of their operations and how you can make yours stand out from the crowd.

If you need help with a tour company business plan, you can post your legal need on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.

Hire the top business lawyers and save up to 60% on legal fees

Content Approved by UpCounsel

• How to Open a Tour Company
• Creating a Business Plan
• Parts of Business Plan and Definition
• How to Start a Business: A Comprehensive Guide for Entrepreneurs
• Service Business Plan
• IT Company Business Plan
• Business Description Outline
• How to Make a Business Plan Format
• Business Plan for New Company
• Business Plan Contents Page

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Tour operator business plan guide.

Before you start to create your official business plan, it can be helpful to think through several aspects of your business so that you are fully prepared to address each topic in this business plan guide. One excellent preparation exercise is to complete a  Business Model for your company. 

Download Business Plan Guide PDF

With your Business Model prepared, you can now more easily complete your Tour Operator Business Plan .

Your  tour operator business plan  should contain at least seven sections:

• an executive summary,
• a company overview,
• a description of your services,
• an analysis of your market,
• an implementation plan,
• a team summary, and
• a financial plan.
• You might have one or more appendices at the end if you have additional relevant information to include. The finished product should be formatted nicely and incorporate your company’s logo and branding. For assistance with branding, reference the Entrepreneur Tour Operator Toolkit – Branding & Marketing Guide .

Executive Summary

As the first component of your business plan, the  executive summary  is arguably the most important section. If you’re pitching your idea to investors, they’re likely very busy people, so you want to  grab their attention  from the beginning. The executive summary should contain a concise outline of your tour operator company’s objectives and goals, your  mission and/or vision statements , your key success factors, and a clear description of your value proposition. 

Company Overview

Think of this section as what you would post on the “About” section of your tour operator company’s website. The  company overview  should explain who your company’s key leaders are, how and when the business started, what the ownership structure looks like (if you have investors, for example), where your office is located, and an outline of your current assets and debts. If you’re in the early stages of your business, this section might be quite short.

Operations Plan

The  operations plan  is where you describe exactly what your company will offer. What kinds of tours will you sell? Where exactly will you operate? This is the type of information you would list on your website for potential customers or guests to read – but without too much of a sales pitch. 

In this section, it can also be helpful to include a description of the full “ life cycle ” of your business. What happens before, during, and after a tour? What steps does the guest complete, and what happens behind the scenes at your company’s office?

It might be helpful for example, to illustrate how someone could book a tour perhaps six months in advance on your website. Between booking and arrival, coordinate accommodation, meals, and transportation with partner providers. When the tour concludes, offer transportation back to the airport and follow up with a special offer to book another tour with us at a discount. 

Market Analysis

This section explores  your specific niche  within the tourism industry and the geographic location(s) where you plan to operate. Who are your target clients or guests? Who are your main competitors? What trends exist in this industry sector? Is the number of visitors to your location increasing or decreasing? Try to include  statistics from reputable sources  whenever you can. Destination Marketing Organizations (DMOs), Chambers of Commerce, and the New Mexico Tourism Department, just to name a few, can provide valuable insight and add credibility. This section should leave no stone unturned so that your reader can truly understand your market conditions.

For example, try to include information about travel trends in New Mexico, economic trends, the number of new hotels being built, etc. We would also explore the ecotourism market; are more people choosing eco-friendly travel options today compared to five years ago? What companies are the current ecotourism market leaders?

Later in this toolkit, you will have an opportunity to further flush out your marketing plan utilizing the Entrepreneur Tour Operator Toolkit – Branding & Marketing guide .

Implementation

Now that you’ve explained your business idea and described the market in which you plan to operate, it’s time to outline exactly  how  you will bring your tour operator business to life. This section should include a  SWOT analysis, details about your marketing and pricing strategies, and a sales projection. 

In the  SWOT analysis , you will explore your company’s strengths, weaknesses, opportunities, and threats. What does your company offer that nobody else in the market does? What are some potential challenges that you will need to face? Using an ecotourism company example, a threat could be natural disasters – if there are floods or mudslides, our business cannot operate. On the other hand, an opportunity is that more people are interested in eco-friendly travel options. 

Your  marketing and pricing strategies  should be very specific. How will customers find your company? Which online channels will you use? Will you work through travel agents or directly with your customers? 

Your pricing strategy should include the exact rates you plan to charge for at least a year in advance. For example, will you charge different prices for different packages? For low season vs. high season vs. holiday periods? With rates increasing 5% each year? And/or consider a 10% discount for advance purchase bookings made at least 6 months in advance and charge a cancellation fee for any reservations canceled within 3 months of the tour departure date. Based on your pricing strategy, you can create a sales projection that will estimate your company’s sales performance, preferably over the next three years.

Team Summary

After you understand what your tour operator business will do, you’ll wonder  who  is going to make it happen. And if you’re planning to launch a full-fledged tour operator business, you’re probably not going at it alone. The  Team Summary  section should include a thorough plan for your company’s organizational structure, key leaders, employees, and training processes. 

Do you already have a management team in place, or will you need to hire additional leaders? How many  employees  will you need, and how much will you pay them? And how will you train and develop your employees? The Team Summary should answer all of these questions and provide enough information for potential investors to understand exactly how you plan to staff your business, pay your employees, and ensure all team members are trained properly. 

Financial Plan

The  financial plan  is extremely important to potential investors because they will want to maximize the return on their investment. Your  financial plan  is essentially a  projection  of your  revenue streams and cost structure for your company’s first five or so years of operation. It will include not only revenue from ticket sales and costs from employee salaries, but also details like  tour-operator software  costs, insurance, taxes, marketing spend, depreciation of assets, interest on loans, and more. 

A break-even analysis is a critical part of the financial projections in the business plan for a new business. Financing sources will want to see when you expect to break even so they know when your business will become profitable.

But even if you’re not seeking outside financing, you should know when your business is going to break even. This will help you plan the amount of startup capital you’ll need and determine how long that capital will need to last. A one-page break-even analysis template is available to help you through this exercise.

In general, you should aim to break even in 6 to 18 months after launching your business. If your break-even analysis shows that it will take longer, you need to revisit your costs and pricing strategy so you can increase your margins and break even in a reasonable amount of time.

If you don’t have a finance background yourself, it may be helpful to seek assistance from an accountant or someone who knows the ins and outs of financial modeling. 

Additional Information

In an appendix, you can include  supporting information  or statistics that may be helpful for potential investors, but not essential to your business plan. For instance, you could include a full report on trends that you used in your Market Analysis section.

Tips and Tricks for A Strong Tour Operator Business Plan

In summary, writing a business plan is certainly not an easy task. It’s time-consuming and requires a lot of thought, but a well-written business plan can lead to significant growth for your company. As you complete your business plan, keep these pieces of advice in mind:

• Conduct thorough research on your market . When you pitch your company to investors, you want to be seen as an expert, so learn as much as you can about your competitors and market trends.
• Simplify your words and descriptions whenever possible . A business plan is not the place to wow your reader with flowery language – instead, you want your reader to easily grasp your value proposition. Think about writing so that a fifth-grader can understand it. The last thing you want is for your reader to be confused about what your company actually does.
• Don’t be afraid to make changes . As you work on your business plan, you might discover that some aspects of your business need to be adjusted for the greater good of the company. After all, the companies that are the most adaptable are the ones that survive!
• Get a second opinion  (or a third or a fourth). A good test of your business plan’s readability and clarity is to let someone outside your industry read it, like a family member or friend. If they have a lot of questions, you might need to adjust your descriptions or more clearly explain your plans.
• Proofread ! Your business plan is a reflection of your company’s values. If your formatting is sloppy and your text is full of typos, your reader might question whether you have the attention to detail necessary to run a successful business.

Back to Tour Operator Toolkit Outline

How to Develop a Successful Tour Operator Business Model

Table of Content

The 3 elements to form a successful tour operator business model, setting goals and objectives for your tour operator company, the value proposition: why would anyone buy your tour, key resources you’ll need to deliver your usp, sorting out your finances, establishing your revenue streams, defining your customer relationships, pulling everything together into your marketing strategy, wrapping up.

How did you realize you have a passion for educating and providing people with rich cultural experiences? Or that you simply love a specific activity and want to share the experience with others? However you made that realization, you’re here, ready to take the next step to creating a viable and successful tour operator business.

The truth is that being a tour operator is not just about providing new and exciting experiences for tourists. There’s way more to it than that. Just like any other venture, there are lots of pieces that need to come together before you achieve any kind of success.

A major part of that puzzle is putting together a well thought out business model and plan.

That’s why you’re reading this article. It is your guide to understanding the tour operator business model and how to create your own. It will also help you to focus on tasks that will have the most business impact.

Let’s get to it!

The tour operator business model consists of three key elements: your tour and activity selection, your market , and your money making plan.

Tour and activity selection: What are you selling? What makes it unique/what’s your unique selling proposition (USP)? What resources do you need to get started?

Your market: Who are you selling your products or services to? Which category of traveler/tourist are your services for? Who are your competitors?

Money making plan: How will you make money? How will you market your trips and activities?

Addressing those three main points in a document or spreadsheet is the first step to creating a viable tour operator business model.

Next? Set goals.

This part is extremely important in several ways. The first one being that envisioning how your business will look 5 years down the line gives you some more perspective of what you need to do to get there.

So think about what it will look like. How many customers will book your tour per week? How many activities can you handle per week?

Answer questions of that nature and you’ll be able to come up with at least 10 objectives and steps that you need to take to get there.

Some examples of goals and steps you may come up with:

• Expand your tour activity selection. In order to do so, you need to find gaps in the market that you can meet with your resources and experience.
• Reach a new market segment. That requires that you perhaps partner with other travel agents and activity providers.
• Further streamline your booking experience. That requires that you activate online bookings with tools like Regiondo .

Setting clear, well-defined goals can also help your business grow; and improve teamwork and collaboration (when everyone on your team understands the direction your business is headed, they’ll have more clarity and purpose in their work to get you there.)

And remember that setting goals is an ongoing process in any business .

Your business’ value proposition is arguably the most important element of your overall marketing message. It is the part where you define how you’re creating value for your prospective customers.

To be a bit more technical: Your value proposition is a clear and concise articulation of why customers should choose your tours or activities over your competitors.

So what goes into creating a clear and concise value proposition?

• State your vision for the business
• What value does your product or service provide to the customer?
• Why are you qualified to offer that value offering?
• What is unique about your product or service?
• What is the growth potential for your product or service?

The aim of writing down your value proposition is that it makes it easier for customers and potential investors to evaluate your offering — from a market and financial perspective. In fact, every single item on your business model or plan has to relate back to your value proposition.

What do we mean by that? Simply put, your key resources are the main resources your company uses to create your USP and to provide your tour or activity offerings. They are the most important things to have for your tour operator business model to work.

Credit: Strategyzer

So think about a few things:

• What are the main assets your company needs to put on tours and activities?
• What key resources does your tour require?
• Which resources are most important in all your distribution channels?
• What does the operational end of your business look like? For example, what kinds of materials do you need? What equipment will you need? What types of people will you employ?

The key resources section plays a vital role in bringing your vision and value proposition to life. It highlights what you need in order to deliver the value your customers expect from you.

You’re really excited to get your new business model up and running— we get it. But remember that a successful tour operator business needs to make economic sense.

So, you need to ask yourself some financial questions, which include:

• What’s the initial investment of capital that my tour operation company will need?
• When will I start making profit?
• What will my profit statements look like in 6 months? A year?
• What income can I take home?
• Will I be able to dedicate enough, finance-wise?
• What is the likelihood of the business failing?
• What if it does (fail)?

Those questions are vital to accurately gauging your ability to develop a successful tour operator business model.

Perhaps the most critical component of any sustainable tour operator business model? A positive cash-flow.

You need to figure out your revenue streams from the get-go. To help you fine-tune them, here are some questions you should ask yourself:

• What are your primary and secondary revenue streams?
• What value are your customers willing to pay for?
• How would they prefer to pay?
• How much does every revenue stream add to overall revenues?

Customer relationships refer to the way you interact with new and existing customer segments. Once you know their communication and purchasing preferences, you can adequately build a system to attract customers, get repeat business and more referrals.

Here are some key questions to think about when mapping out your customer relationships:

• What does your target audience expect from you?
• Can you integrate that into your business (cost and format-wise)?

Those two questions will further inform your USP, finances, and other strategies.

You need a marketing strategy that is solely designed for your target market and customers. There are so many niches in the tour operator industry which also means that there are so many different marketing plans that are particularly favorable to specific niches.

You need to create a marketing plan that is tailored to your niche.

So, ponder the following:

• What is my customer persona? Meaning, who are they? How old are they? What do they do for a living? Where are they from? What do they want from your tour or activity?
• Where do you find your ideal customer? For example, are they heavy social media users? If so, which channels are they active on?
• What are their purchasing personas? Meaning, is it a segment that purchases online? Do they prefer sending through a check or buying in person?

You can then do your research to create an effective marketing strategy that your customer segments will buy into.

Let’s give you potential strategies you can incorporate into your overall marketing strategy:

• Add a blog to your website to substantially boost your search engine optimization (SEO) efforts.
• Cultivate your social media presence.
• Run campaigns that make sense for your customer segment. For example, if your target market is millennials looking for the ultimate holiday experience, then social media should be your priority over print advertising.

Building a tour operator business from scratch is not easy. There are many pieces of the puzzle you have to put together: from choosing your niche, to building relationships, to conducting thorough market research, to building your brand and online presence, etc.

However, creating the right business model will give you a clear roadmap to guide your business journey. Use this article as a guide to creating a viable tour operator business model.

You might also like: 

• How to Start a Tour Company with (Almost) No Money
• How to Conduct Market Research for Tour and Activity Companies
• How To Start a Walking Tour Business
• 4 Questions to Help You Design the Perfect Tour

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10 Tips On How to Become a Successful Tour Operator

It can be easy to rest on your laurels after starting a tour operator business. You’ve identified a market, researched the competition, developed a suitable business plan for a tour operator company, come up with a name and brand identity, created your travel offering, and launched into your target market. Bookings are steady, customer reviews so far are positive, and you’re feeling good about where you’re at. Kudos!

However, the real hard work starts when thoughts turn toward sustainable growth. How do you take your fledgling travel business and grow it over the long-term? How do you grow and stay ahead of your rivals in the competitive tourism industry? How can you keep customers coming back for more and make sure every review is a positive one?

To become a successful tour business, you need to do certain key things right—from building a user-friendly website to ensure people can find you online to selecting the right online booking system. Here’s our guide to the top 10 things you can—and should—do now to start building your business.

1. Proactively plan for your tour company for growth

A business plan for a tour operator company typically includes your business model, value proposition, target market, finances, structure, and sales and marketing strategy. While most tourism business plans also include a vision for the future, often at minimum a five-year plan, your main focus may have been getting your business up and running.

After launch, you need to revisit your business plan and put together a growth plan. As James Cash Penney, founder of retail giant JC Penney said: “Growth is never by mere chance; it is the result of forces working together.”

Imagine where you want to be in five or 10 years and set some longer-term goals if you haven’t already. These could include:

• Find gaps in the travel market to expand the tours and activities you offer
• Identify and target different markets
• Expand into more cities and countries
• Partner up with other travel or activity companies

As well as setting some objectives, an effective growth plan involves:

• Focusing on your strengths and how you can build upon them
• Keeping tabs on what your competitors are up to
• Analyzing what’s working and what’s not
• Putting in place the right systems and processes to help you scale up
• Hiring the right people to help you achieve your goals
• Knowing your audience and their changing needs

The rest of this article looks at some of the specific things you can do to achieve your objectives and grow your tourism business.

Tips for success #1: Never stop planning Your business and growth plans shouldn’t sit on a shelf gathering dust. They are living documents that you should revisit every so often. Hold regular planning meetings with your leadership team and other staff to develop new goals and refine existing ones.

2. Know what makes your tour business, you

Long-term growth requires your business to have an evident, focused value proposition. Unless everyone involved in your business is crystal clear on your unique selling point and what value you offer, it can be hard to convince people to choose you over competitors.

If you try to do too much—for example, diversify into too many different activities—or stray too far from your central value proposition, you can devalue your business offering.

If you haven’t already done this as part of your business and marketing planning, come up with a value proposition statement that focuses on why you’re different and the value you offer.

Develop your value proposition with a small group first, then test it with more people. Focus on your customers, their needs, and how you meet those needs, as well as the value and benefits you offer. Evolve and refine your value proposition as your business grows and changes over time.

Tips for success #2: Develop a value proposition A Google employee created a simple formula for developing a value proposition: “We help (X) do (Y) by doing (Z).” For example, “We help culture vultures combine their love of art and travel by organizing arts-focused tours to the world’s top cultural destinations.”

3. Ensure your tour website is up to the job

The days when a tourism-focused website was just an online brochure are long gone. Your website needs to be a marketing, sales, bookings, and customer service superhero. Your online presence should help you to:

• Communicate who you are and what you do
• Attract visitors through Google and other search engines
• Convert visitors into leads and prospects
• Engage with prospects and customers online
• Deliver better customer service
• Measure your marketing using online analytics tools
• Manage your business more effectively through integrated online travel booking software and other tools

One thing to pay attention to is the experience of first-time visitors to your website. Earlier, we looked at the importance of your value proposition. A version of this should be one of the first things people see when visiting your website. Make sure you leave people in no doubt about what you do and, more importantly, what you can do for them. Think of it as your “elevator pitch.”

For example, Phare is a Cambodian circus that also helps Cambodian youth. This is how it presents its value proposition on its website:

AMAZING VIBE & ENERGY, TRANSFORMING THE LIVES OF CAMBODIAN YOUTH Siem Reap’s most unique, authentic top rated evening entertainment. More than just a circus, Phare performers use theater, music, dance and modern circus arts to tell uniquely Cambodian stories; historical, folk and modern. The young circus artists will astonish you with their energy, emotion, enthusiasm and talent.

No-one reading can be in any doubt about what Phare is all about. The rest of the web copy fleshes out the value proposition and provides more information.

Effective websites are also well-organized, with navigation menu labels that are clear and intuitive. Your website’s aim should be to help visitors easily and quickly navigate to where they want to go and complete specific tasks, such as finding a tour, making a booking, or contacting someone.

Of course, your website should also look great—photography is an important part of any tour operator website—and be well-written and accessible on any size of the screen. Remember, your site reflects your business, and your business is all about delivering great experiences. That includes the experience of a visitor to your website.

Tips for success #3: Maintain your website A website is never finished. You can always tweak the copy, add more content, optimize it for search engines, integrate new tools, and improve both its marketing effectiveness and visitors’ experience.

4. Provide outstanding customer service for your tours

Travel businesses need to be 100% focused on their customers at all times and every stage of the customer journey.

After all, being in the travel and tourism business means you’re really in the “experience” business. That experience can start even before someone visits your website—for example, if they read a social media post or a review. It can then continue through their buying journey from prospect to customer, during the tour itself, and after the tour. At each stage, customers will form opinions about both the experience you provide and how you deliver it.

With multiple ways for people to leave both positive and negative feedback—through social media, Google Business reviews, Trip Advisor, and other mediums—providing outstanding customer service alongside great customer experiences is vital to your continued success.

Prioritizing customer service helps you grow your business, differentiate yourself from competitors, and build trust with your target audience.

What does outstanding travel customer service look like? It all starts with knowing who your ideal customers are:

• How old are they?
• What life stage are they at, e.g. students, retirees, parents with kids…?
• What are their unique needs and wants?
• What’s their budget?

When you know who they are and what they need, you can target your tours appropriately and market and communicate effectively during their customer journey. You can also grow your business by adding new tours you think might appeal to your market. If you know your customers and establish a good relationship with them, you also stand more of a chance of being able to pivot and adapt during bad times, such as the COVID-19 pandemic.

Besides getting to know them, it’s all about providing the best experience possible. Here are a few customer service best practices:

• Interact with customers and prospects on social media
• Make booking quick and easy through an online booking system
• Have a clear cancellation policy
• Stay in touch with customers in the lead-up to, during, and after the tour
• Request feedback at the end of the tour
• Be responsive and treat customer complaints with respect and empathy
• Thank people who provide positive feedback

Tips for success #4: Communicate with customers Customers will have lots of things on their mind in the build-up to their tour and may have questions. Get ahead of them by emailing customers just before the tour with all the details they need.

5. Ask for tour and activity feedback from your customers

Be proactive about collecting tour and activity feedback. Customer feedback can help encourage people to leave reviews online. It also provides valuable insights into the customer experience that can improve your tours and even develop new ones.

There are a few ways to generate feedback:

In-person: Encourage staff—in the office and out on tours—to document the feedback they receive daily. While customers may feel uncomfortable reviewing a tour with the tour guides, they may be open to giving more detailed feedback to a tour manager or someone from the office. Often a simple “How are you enjoying things so far?” and “Is there anything we can do to make your trip better?” is enough. You can also give customers a survey to fill in at the end of their tour.

Online: Another way to collect feedback is through an online survey. Send customers a link and invite them to complete a short survey. In addition to questions, include a blank section that lets them leave any other thoughts.

On review websites: You can also email customers post-tour to invite them to leave a verified review with Rezgo or other travel platforms. Most customers understand how important reviews are to businesses.

Tips for success #5: Display feedback on your website Add a feed of verified customer reviews to your website. The right tour operator booking platform can automatically display recent reviews on your website.

6. Stay on top of negative customer feedback listed on all platforms

Receiving negative feedback is a fact of life for many travel businesses. This could come in the form of an email or phone call directly to the company, or a public posting on social media, Trip Advisor, Google Business, or another travel website.

Successful tour operators respond to criticism quickly, transparently, and respectfully. Be empathetic to the customer’s situation and feelings and, even if it’s not your fault, try to find a solution that satisfies them. Even just an explanation will satisfy many customers. The offer of a gift card or other reward can even turn a complaint into a marketing opportunity.

If you feel you have to apologize, do so gracefully. Here’s an example of an apology KFC printed in an advertisement after they ran out of, of all things, chicken. It’s honest, doesn’t try to make excuses, and says how it plans to make amends.

“A chicken restaurant without any chicken. It’s not ideal. Huge apologies to our customers, especially those who travelled out of their way to find we were closed. It’s been a hell of a week, but we’re making progress, and every day more and more fresh chicken is being delivered to our restaurants. Thank you for bearing with us.”

If you receive negative feedback online and have the ability to reply, here are some of the ways you can respond to public negative feedback:

• Look at the issue from the customer’s point of view
• Take on board negative comments and respond with how you plan to address them
• Apologize when necessary and try to make amends
• Don’t post a response when you are angry
• Draft your response in advance and only post it when you are happy with it
• Be gracious and polite, even if you feel negative feedback isn’t justified

All genuine feedback is good feedback. You can use customer feedback—good and bad—to make constant improvements to help you grow a successful tour operator business.

Tips for success #6: Responding to negative feedback It can be hard not to respond to negative feedback you feel you don’t deserve in a knee-jerk fashion. Try to respond within a day, but sleep on it and run your response past your team before posting it.

7. Create content that wows and educates

Content marketing is a powerful—and affordable—marketing tactic for businesses of all sizes. It involves taking a strategic approach to creating and distributing content tailored to your target audience’s interests.

It’s a top-of-funnel marketing tactic designed to make people aware of your business, draw them in, and start the process of converting them into customers.

Great content marketing:

• Drives website traffic from search engines and social media
• Builds awareness of your products and services
• Reaches new prospects and markets
• Engages and connect with your audience in a meaningful, non-salesy way
• Broadens your audience on social media
• Builds trust and credibility with your target audience
• Creates excitement and desire around your tours, locations, and activities

Of course, the foundation of any successful content marketing strategy is a steady supply of high-quality content. Not only eye-catching photographs, evocative videos, and insightful articles, but also content that is:

• Targeted to the needs and interests of your audience
• Shareable and optimized for search engines
• Distributed through the right channels at the right times
• Created using a consistent and appropriate brand voice

Few industries have as much content potential as the travel sector—not just content you can create yourself, but “influencer” and other user-generated content on Instagram and elsewhere. While most successful tour operators use content marketing at the buyer journey’s Awareness and Discovery stages, great content can also encourage repeat business and referrals.

Tips for success #7: Create a content hub Create a content hub or blog on your website to drive traffic from search engines and social media. High-quality content will encourage prospective customers to stay awhile and explore what you have to offer.

8. Protect your travel and tour business

Don’t just focus on delivering memorable experiences for their customers. The “boring” stuff matters, too. It’s important to ensure you run a tight ship regarding your policies, waivers, insurance, and other unglamorous elements of a professional, well-run tour business.

Here are a few areas to focus on getting right:

Cancellation policy: The COVID-19 pandemic unleashed a torrent of cancellations in the tourism industry as global travel almost ground to a complete halt. Depending on your tours’ nature and location, craft a clear cancellation policy and make sure your customers read and understand it. The aim is to protect you and your customers. If you consider using an online tour operator booking platform, look for one that credits cancelled tours to your account.

Waivers: Make it easy to manage any waivers your customers need to read and agree to. The best online booking systems make it easy for customers to sign a waiver at the time of booking and for you to collect and store waivers.

Insurance: Purchasing the right insurance is a cost of doing business in the travel industry. Depending on the nature of your tours, you may be dealing with different types of risk to different people—both customers and staff. Most tour operators need:

• Business protection insurance to protect assets or mitigate against business interruptions (such as the 2020 pandemic)
• Public liability insurance to cover risks to customers
• Insurance that covers employees while they are working for you

Tips for success #8: Offer customer insurance A service like enhanced refund protection can enable you to offer customers insurance for their trip for a small fee as a percentage of their ticket order.

9. Automate key processes within your business

One of the barriers to growing any business can be time management. There are only so many hours in the day, and you probably eat up many of them dealing with the day-to-day tasks of running a business. This leaves little time for long-term growth planning.

Until cloning people move from science fiction to reality, automation is one of the best ways to free up your time to build a successful tour operator business. Successful tour operators automate as much as possible to leave them more time to focus on the things they do best—and enjoy the most. Other benefits include:

• Streamlined sales processes
• More bookings
• More satisfied customers
• Better customer service
• More productive employees
• Increased efficiency
• More accurate record-keeping

Here are a few of the areas you can automate to allow for some breathing space to research new markets, improve your marketing, and focus on other growth-focused activities:

Email marketing: Despite instant messaging and social media growth, email is still alive and kicking as a marketing tool. Email automation, through your online booking software provider, or a service like MailChimp or Constant Contact, lets you send pre-written emails to individuals or groups of people at the right time, without having to compose an email and press send yourself each time. You can also automate the updating of your email distribution list.

Social media posts: Social media is a great way to reach prospects and customers where they like to hang out online. However, it can be time-consuming to create and post updates every day. Platforms like Hootsuite, Loomly, or Later can help you manage a content calendar, create content in advance, and schedule posts to Twitter and other social media channels. It’s a great way to ensure you’re always delivering fresh content to your target audience.

Customer service: These days, customers often expect an instant response. Younger customers, in particular, have grown up with instant messaging. Chatbots are one way to automate your customer service elements to provide fast, 24/7 service. A chatbot can instantly handle the routine questions you might get, such as “What tours do you offer?” while still providing the option to hand off to a real person for more involved queries. There are several paid and free chatbot builders out there.

Sales: Websites with online booking systems never sleep. They enable people anywhere in the world to book tours 24/7. The ability to sell tours and take payments online is the key to growing your tour business over the long-term.

Tips for success #9: Collect customer email addresses It’s easy to set up a way on your website for people to subscribe to your email list. This lets you engage prospective customers through a series of automated emails designed to tell them more about what you offer and encourage them to return to your website and book a trip.

10. Optimize online sales and bookings for your tour and travel company

Every successful tour operator offers online bookings and payments. Aside from the actual tours, it’s probably the most important part of your business to get right—especially if you want to scale up your business once it’s up and running.

A quick peek at the alternatives tells you why.

• Manual tour bookings are too time-consuming and expensive. It would be best to have enough staff to operate the phones and manage the tour and activity bookings. Everything from capturing customer details to managing the paperwork to taking payment takes time and costs money. There’s also the inconvenience for customers to only book tours during office hours, not to mention the risks of human error leading to booking mistakes.
• Third-party tour and activity bookings through travel agents, OTAs and others are other options. However, third parties take a portion of your sales revenue and are out of your control. While they can be a valuable sales channel, direct bookings should be your focus.

Enabling customers to book and pay for tours directly from your website turns your website into a 24/7 sales agent. These days, consumers increasingly expect to buy products and book trips and other experiences online, often using their mobile device . Benefits to customers include:

• Fast, easy tour booking, with no waiting on the phone
• Being able to search, browse, and book tours and activities when and where they want
• Convenient online tour payments

The best online booking software can do much more than take payments online from a business perspective. Other features and benefits include:

• Multiple online payment options
• Verified reviews integration
• Secure capture and storage of customer details
• The ability to easily generate sales reports
• Automated, point-of-sale waivers
• Easy management of multiple sales channels
• Integrated analytics and marketing tools

Happy customers lead to healthy businesses. A smooth and convenient online tour booking experience is a great start to your relationship with your customers. The Rezgo booking system provides everything you need to run your business, drive more direct bookings, and get more happy customers.

Tips for success #10: Try before you buy Try a demo of Rezgo’s tour operator booking software , and see how you can optimize your business to spend more time doing what you love.

Written By | Rob Mathison

Rob Mathison is a Vancouver-based freelance writer focusing on tech, travel, digital marketing, and education. He is a co-author of The Complete Resident’s Guide to Vancouver.

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Guest Blog: How to Start or Improve Your Tour Business

We are back with our second instalment of our series showcasing the insights and stories from our tour operators. 

In this episode Auður, who took a thriving blog and turned it into the successful 'I Heart Reykjavik’ walking tour, takes a deep dive into the early stages of creating and building a successful tour operator business. 

From idea generation to the A-B-Cs of setting up a business; learn how to build your foundations from an operator who has taken this journey...'

How to start or improve your tour business 

So, you dream of starting your own travel business?

Whether you’ve already come up with the perfect idea or you just want to try your hand at being your own boss, making your vision come to fruition may seem daunting. 

Whichever way you approach it, your new business’s success will depend on how you can fulfil customer expectations. 

In the age of customer experience and omnichannel everything, all businesses need to be customer centric. In travel, it’s even more important.

How to Come Up with an Idea

The ideation process of a new business boils down to getting to know your customers. It is easier to start with a need or want and build around this framework than finding users for a product no one asked for.

So how do you create experiences that delight customers? It all starts with research.

Mapping the journey

Drawing on your own experiences is a great place to start. Think about your frustrations and high notes as a traveller. Imagine your customers’ visit to your destination as a journey that starts with the birth of an idea of travel and ends with a plethora of priceless memories and photo sessions with friends at home. 

Think of what emotions may arise at every step of the visitors’ journey, pain points and frustrations they may experience, and how your business can make their life just that little bit easier.

This process is called customer journey mapping. You can do it on a macro level; to find new opportunities where travellers’ needs and desires are not being met. 

Once you’re an established tour business owner, it can also be helpful to map processes for improvement. Like how your guests check in for your tours or how your guides bid them farewell.

But we’re getting a little ahead of ourselves, we’re still just trying to come up with an idea.

Travel forums and social media

Travel forums and social media groups dedicated to travel and/or your destination are full of helpful insights. Think TripAdvisor, The Lonely Planet travel forums and all the destination Q&A groups on Facebook.

Take some time to read through questions and comments from travellers and try to detect some actionable trends based on what travellers really want from an experience. Instagram and TikTok are also great sources of inspiration, especially when it comes to younger travellers.

The analogue approach

Experiences are designed to be enjoyed in-person, don’t forget this during the research stage.

Sign up for some tours on offer in your destination and talk to your fellow travellers to find out what they like and don’t like. Notice what the guides and operators do well and what they could improve.

If you don’t have the budget for testing out tours yourself, get to know what is on offer in your destination through tour companies brochures, websites and tools such as TripAdvisor. Strike up conversations with travellers in local bars and cafes to gather their insights.

Making sense of it all

Now that you’ve done a ton of research, it’s time to find your idea. There are millions of ways to analyse research, and everyone has their favourite.

One helpful technique is brain dumping. Set a timer and write down everything that comes to mind after reviewing all your data. Once you’ve dumped all your ideas on paper, sort through them and try to find the swan among the ducklings.

Another popular method is mind mapping. Start writing down one central idea and add new and related ideas that radiate out from it. Writing down ideas and forming connections helps to sort through all the stuff you gathered during your research phase and make sense of it.

The First Steps

Whatever the business, the first step for a new idea is to figure out its viability. You will also need to give some thought to your business model, how the business will operate and what service providers to partner with. 

The A-B-Cs of your business

Start by asking yourself a lot of questions: Does something like your idea exist already? What makes it different enough to make travellers choose your idea? Who are your main competitors and potential partners? And finally, does your market allow you to charge enough for the tour to cover your fixed and variable costs?

When you’re inspired by an idea and ready to run with it, practicalities may seem tedious. The harsh reality is, however, that you will quickly run into issues if your earnings don’t cover your costs. Save headaches down the line with thorough research.

Doing a break-even analysis is one method to test an idea’s viability. If this all sounds foreign to you, there are a lot of great break-even calculators available online. It takes some practice to get the hang of using them but before you know it, you will be doing a break-even analysis for your whole life.

To write a business plan or not to write a business plan

Depending on your plans for financing, you will likely have to write a business plan, since most banks and investors require it. If you plan to self-fund or bootstrap, you don’t need an official plan, but you should always create a structured process to work out kinks.

The Business Model Canvas is a handy tool for first time founders. Filling it out is simple enough to figure out without a business degree, but thorough enough that it covers most of your most important considerations. 

Writing a detailed business plan is a big task but they mostly include similar information and there are formulas available online that you can follow.

Staying on the right side of the law

Laws and regulations differ between countries so it’s important to get acquainted with your local requirements. In Iceland, for example, you need a licence to conduct tours and another type of licence to resell tours. You might also need a general business licence and specific types of insurance may be required.

Different forms of businesses

Deciding what kind of enterprise to start is also important and it may be worth investing in outside counsel to choose the right one. For a small operation, sole proprietorship may be an obvious choice but as soon as you assume any financial risks, the limit risk for owners should be considered.

The dreaded GDPR

The European Union requires all companies that do business within the EU or EEA, or with their citizens, to comply with the General Data Protection Regulation. Most websites and booking systems will need to consider GDPR and failing to do so can result in hefty fines so is not an area you want to take your chances on. 

Your booking system

Customers today expect to be able to finish their online purchases in a quick and painless way. Email and a paper diary are not going to cut it: you need to find a booking system.

Your booking system needs to fulfil two needs: allow customers to make their bookings online and help organise your schedule and avoid double bookings. There are plenty of booking systems out there so it’s important to do your research. Bókun’s intuitive design, ease of use and convenient connections should send it straight to your short list. 

Payment providers

Accepting bookings is one thing, accepting payments is a different matter. You need to find the right payment provider that allows you to maximise traveller bookings with reasonable fees. One of Bókun’s advantages is the extensive connections with multiple payment providers across the globe. 

When choosing the right payment provider and which payments to accept, it’s important to keep your target audience in mind. Americans, for example, often choose to pay with American Express where the fees tend to be higher. You might also want to consider broader ways to pay like Alipay for Chinese customers or Apple Pay. Make it easy for your customers to do business with you!

How to Attract Customers

Now that you know what product you want to sell and what kind of company you want to create, it’s time to find customers. 

In the 1989 movie, Field of dreams, Kevin Costner’s character hears a whisper in a cornfield: “If you build it, he will come”. That may be true for dead baseball players that need a field to play in, but in the real world that’s simply not going to work. You can build the world’s most useful product but if you don’t let people know about it and if customers can’t find you, failure is inevitable.

For a long time, marketing a travel business was pretty straight forward. A nice-looking brochure, a connection to the right travel agency and some ads in local establishments and you were good to go. Well, maybe not quite, but you get the gist. 

With the internet, things have become a bit more complicated. The good news is that the internet also levelled the playing field. There are endless opportunities for small travel businesses to compete with their bigger operators, and a little bit of creativity goes a long way.

Know your customer

The first step to any kind of marketing is to know your customer. It can’t be stressed enough how important this is. You can’t be everything to everyone. You need to figure out who to serve, how to reach that customer base and how best to serve them.

Offline marketing

Although these days many travel businesses are online-first, there can be some real advantages in mastering your offline marketing. 

Work with travel agents/agencies

Working with travel agencies is one of the quickest ways for travel businesses to reach more customers, whether we’re talking traditional agencies or Online Travel Agencies (OTAs). 

It’s especially beneficial to ride their marketing coattails when you are starting out. When you calculate how much you would need to spend to reach the same amount of travellers as big players it makes sense to market with larger OTAs. However just keep in mind that you will pay commission on bookings. So it’s important to make sure you don’t neglect your own commission-free channels.

Travel agents often have favourite tours and experiences that they recommend more than others. Because of that, it helps forming a personal relationship with travel agents if you can. Make sure you also offer them a chance to experience your tours for themselves; it’s easier to sell something you have experienced yourself. Organise a familiarisation trip (FAM trips) for agents in your area to cultivate strong relationships. 

Hotels and tourist information offices

There’s a surprising number of people that still use hotel concierge services and tourist information offices to book their tours. If you need more bookings, make sure to check these out too. It may help to offer the staff of these places extra incentives to sell your tours as they often don’t benefit from the commission their employers get. 

Participate in industry events and work that network

Joining big industry shows like ITB Berlin may be overwhelming when you’re just starting out. Instead, try to opt for smaller events offered by your local tourism board or regional clusters to get more eyeballs on your products. Smaller events like that are also great to build a network with other business owners in the area. 

Participate in local start-up communities. Many founders often help each other to reach bigger audiences as well as giving you an opportunity to network with people who have experienced similar issues when starting a tour or experience company. Joining local business associations can provide an opportunity to collaborate with tour operators in your vertical or location.

Online marketing

Understanding online marketing is key for travel businesses these days. 

In digital marketing we sometimes talk about three types of media: owned, paid and earned media. Without going into too many details, your owned media are areas such as your website and your mailing list. Paid media is advertisement of all kinds, including boosted social media posts and paid search results. Earned media is word-of-mouth recommendations, online reviews, media coverage and all types of PR. 

In general, you will need a combination of all three to reach your potential customers.

Owned media

A mistake many young businesses make is not spending enough money and effort on their owned media, such as their website and mailing list. It’s called owned media because no matter what happens, you own these entities, and you don’t have to rely on the whims of social media algorithms or 3rd parties to retain your place in your customers' awareness.

Your website

For most tour companies, your website is the most essential part of your marketing strategy. The website is your storefront, if you will, and it’s where your customers look for information and where they make their purchases. Therefore, it’s important that you think about user experience and ease of use, along with making sure your website looks and feels trustworthy. You are asking your customers to trust you with their credit card numbers, after all.

Content marketing

Your website is also the home of one of the greatest weapons in the tour businesses marketing arsenal: content marketing. Because most people start their search for information online, it’s vital that your website shows up when travellers search for related experiences in your destination.

Informative and relatable content is not only great for Search Engine Optimization (SEO), it’s also a great tool for brand building and establishing trust with your customers. Other types of content marketing are Facebook posts, Instagram Reels and TikTok, to name a few, and they are all very important to travel businesses. 

The key is to always link back to your website to give people an opportunity to buy what you’re advertising.

Mailing lists

A good mailing list is an often-underutilised tool in online marketing. Mailing lists generally offer great return on investment because the opening and click-through rates tend to be higher than through other mediums. 

Mailing lists are especially useful for travel businesses as they help build your brand, establish a connection with potential customers and with automation you can target customers based on the different stages of the customer journey. To get people to sign up for your mailing list it can help to use enticing lead magnets, such as free e-books and courses.

Paid media is usually what people think of when they hear the word marketing, and most people are well versed in the topic. Therefore, little time will be spent on it here. It is important though that you choose your mediums wisely to get the most out of your budget. 

You won’t reach the youngest audiences on Facebook. If you plan to serve a niche audience, it’s worth doing some research into niche websites or publications. If your target group is German bicycle travellers, for example, it may be worth it to see if there's a community online where they congregate.

If you plan to use travel influencers, it’s important to choose influencers that align well with your brand and the objectives of the campaign. Traditional wisdom indicates that you may get more for your money using many micro influencers over big macro influencers and superstar celebrities, but operators should test and optimise marketing based on individual results.

Earned media

Travellers tend to trust 3rd party reviews over what you promise in your own marketing materials. Earned media, such as reviews, are also essentially free so it’s important to pay attention to customer feedback. Doing it well can cost you some time, though. 

Making a profile on TripAdvisor and monitoring the company’s reviews should be high on your list of priorities to start with. Look into whether there are other review sites you should also consider and make sure your Google Business Profile is up to date.

Be generous to journalists and travel influencers, within reason of course. You never know what you will gain from the free seat on your tour you give away. Be proactive in reaching out to people and publications you want to work with. Send out press releases when you have something noteworthy to share. Twitter and Instagram are great places to foster relationships with journalists. Collaborate with your partners and take advantage of cross promotion.

It all starts with a good product

Finally, make your experiences noteworthy and worthwhile. Word-of-mouth marketing could become your secret weapon. Hairdressers that join your tour tell their clients if they are happy. A delighted customer today may result in their extended family joining the tour tomorrow. Think about unique and interesting branded souvenirs; and it never hurts if the tour includes a unique Instagrammable moment or two!

Keeping your Customers Happy

Experiences are unique products in the sense that they are a service, and unlike physical products they are intangible, perishable, variable and the value of the product is created at the same time as it is consumed, by both the operator and the customer.

Although this may all sound a bit academic, it’s very important to remember this difference when figuring out how to manage your customers.

Your customers are not buying a product like a smartphone that they take home with them and return if it’s faulty or they don’t like it. The product is an experience that every single customer will judge based on their own values, expectations and previous experiences. 

So how do we make sure all our customers get a good experience throughout the entire journey?

Hire the right people

Your employees play a key role in keeping your customers happy. They are the ones who interact with your guests, who carry out the customer strategy, and who will ultimately feature heavily in the customers decision when it comes to review time.

You need to hire the right people or if you can’t find the right people, because staffing can be notoriously difficult in the tourism industry, at least try to find the least wrong people. You may need to follow some governmental regulations that require you to hire licensed guides and/or drivers so make sure you get acquainted with those as soon as possible.

Although it is important to follow rules and regulations, it’s also important to find people that are right for your business, who can deliver on what you promise in your marketing material and who can engage your target audience. Sometimes it’s better to hire for the talent and develop the skills, especially if you’re lucky enough to find people that have that extra star quality. 

Nail down your cancellation policy early

Your cancellation policy can make or break you. You need to decide what kind of cancellation policy to offer and how strictly you plan to follow it. If you live in an area with volatile weather conditions, some leniency may be necessary as circumstances can change quickly. Due to higher fixed costs per customer, you may also decide that a small boutique tour with limited spaces requires a stricter cancellation policy than a 70-seater bus tour.

It’s important that the cancellation policy is clear, so it leaves no space for interpretation. Thinking of a number of likely scenarios where your cancellation policy might come into effect and how you might respond to them could prove to be extremely helpful. Of course, you can’t decide on every possible scenario beforehand, but this will help you, and more importantly your staff, make better decisions and keep your customer service consistent. 

Consistency is key when it comes to service because service is inherently variable. It’s important to define all your processes and preferably write them down so your staff always know how to behave and what is expected of them.

Should your guides always introduce themselves with a name? Write it down. Do you have a contingency plan in case of accidents (you should!)? Write it down. Is it important that your employees never trash talk the competition? Write it down!

Writing down all your processes and making them available to your employees makes training easier, helps with service consistency and minimises the danger of so-called service failures.

An example of a process would be your response to service failure. What are you going to do if someone complains about a tour? Are you going to apologise, offer some kind of compensation or do nothing? Guests from one culture may respond better to monetary compensation while others just want recognition that something went wrong and a little bit of empathy.

If you want to stay consistent, you can’t make these decisions on the fly based on your interaction with each individual customer. 

Don’t Forget to Take Care of Yourself!

This article is in no way exhaustive when it comes to things to consider when starting a new travel business but hopefully it has given you some idea about where to start. 

Before you embark on this journey, it’s important that you ask yourself whether you’re genuinely ready for what lies ahead. Are you willing to make sacrifices and do the hard work that it takes to get a new business off the ground? 

There’s no doubt that you can do it! Just make sure it’s your heart’s desire because starting a new business requires a lot of grit and conviction, especially during the initial stages. 

Want to Start & Grow Your Own Tour Business like Auður? 

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Sightseeing Bus Tours Business Plan

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Double Decker Tours of Washington

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

The Company

Double Decker Tours of Washington, LLC (DDTOW), located in the city of Washington, DC is a new sightseeing company in its formative stages.  It is being organized to take advantage of a specific gap in the local sightseeing tour market.  The gap exists in high quality, reasonably priced sightseeing tours in the nation’s capital away from the city center, indicating that a new entrant tour company could be expected to capture a significant portion of the current sightseeing tour market.

The Company’s Mission

Double Decker Tours of Washington’s mission is to provide safe, reliable and fun sightseeing tours to the visitors of Washington, DC using London-style double-decker buses.  Nine of the buses will be open top for sunny warm and beautiful days and three will be closed for cold and inclement weather.

Product and Services

DDTOW will provide daily sightseeing tours and charter services in Washington, DC.  We will survey the White House, Capitol Building, Supreme Court, Senate Office Buildings, House Office Buildings, Museums, Library of Congress, etc., as well as Adams Morgan, the U Street Corridor, Catholic University and many other sites that make up the city. 

Marketing and Sales Strategy

DDTOW will develop a message that touring with us is fun and we will project that message over the airwaves and in print.  We will kick off our message using Comcast Cable System in the Washington area as well as hosting parties for certain tour association decision makers and the media.  We plan a pre-opening marketing budget of $80,000.  As we profit, we will spend about 1% of gross revenues on advertisement and marketing.  We will also distribute survey cards to assess what we are doing right and identify what we are doing wrong.

The Competition

Our main competitors in the Washington sightseeing market are:

• Tourmobile:  Tourmobile is based at East Potomac Park and is authorized by the National Park Service to conduct sightseeing tours along the National Mall and in Arlington National Cemetary.  Tourmobile uses a shuttle service employing 85-passenger trams along the Mall and 120-passenger trams in Arlington.  They have been in business for over 25 years.  Tourmobile was started in 1969 as a subsidiary of Universal Studios to provide interpretive services along the National Mall.  In 1981 Tom Mack bought the company making Tourmobile, Inc. a locally owned Washington DC company.  Tourmobile has over 42 vehicles and serves upwards of 2 million riders annually.
• Historic Tours of America:  HTA operates in Washington as the Old Town Trolley and DC Ducks.  HTA is a national company with outlets across the country.  HTA, like Tourmobile, uses a shuttle system for its passengers and they use 35- to 60-passenger trolleys.
• Grayline:  Grayline International is a global company with offices and tours around the world.  Grayline contracts out its services to local bus lines and runs multiple tours.  Grayline runs the Lil Red Trolley as its service in Washington.
• Zohery Tours:  Zohery Tours is a local company that runs 15-passenger vans and 45-passenger coach buses.  Zohery tours are about 3 hours in length.

Target Market

In recent Washington Convention and Tourism Corporation figures, it showed that 17.6 million people came to visit Washington, DC, spending over $10 billion dollars; $4 billion of that on sightseeing and tourism related activities.  Although overnight leisure travel increased significantly while day-trip volume was down, the good news was that average trip expenditures increased to levels of $480 per day per trip. Many of the trips that were made to the city centered around visiting historical places and museums (36%) and  shopping (24%).  In leisure travel, 36% of visitors were solo travelers as compared to 80% of business travelers and 23% of leisure travelers came with children as compared to 6% of business travelers.  Also many of our visitors to the city have income of over $75K, were married, had no children, were in the 35-54 age group, and had an advanced degree.  Visits from foreign tourists fell three years ago by 19% and by 14% two years ago, but over 1 million foreign tourists came to Washington, making it 8th in US destinations by foreign visitors.

Michael Frank Coleman* will serve as member manager. He has extensive experience in the Washington sightseeing industry, working for Tourmobile and conducting walking tours around town.  Mr. Coleman has a knack for recognizing opportunities and developing staff members to take advantage of those situations.  Mr. Coleman will assemble a staff of experienced tour professionals to oversee operations and market our services.   

Paul F. Williams* has over 30 years of entrepreneurial experience in international and private sector business development and will act as DDTOW’s business development manager. 

*Confidential and proprietary resume data has been omitted from this sample plan.  

Tickets sales and boarding of the buses will take place at the MCI Center at 601 F Street in Northwest Washington.  This site gives us great foot traffic in the heart of the entertainment district as well as ample parking and public transportation access.  The buses will be stored and serviced by Peter Pan Bus Service in Tuxedo, Maryland thereby reducing staff cost and insuring top notch services for our customers.  A small office located on Third Street in Northeast Washington will serve as administrative offices.

Our research and projections indicate that the demand for sightseeing tours in and around Washington is sufficient to provide Double Decker Tours of Washington, LLC with revenues of over $14 million dollars in its first full year of operations, utilizing 15 used London-style double-decker tour buses and selected routes throughout the city.  These sales figures are based on capturing 453,000 customers out of a potential customer base of 22 million people.  Second year revenues are expected  to exceed $17 million serving over 500,000 customers with additional advertising and expanded tours.  The DDTOW plan has the potential for a more rapid growth due in part to new memorial and other venues that are opening in Washington in the near future.  In short, the demands for tours in DDTOW’s target market during the coming year will be more than enough to support DDTOW’s anticipated market share.  These sales levels will produce net profits of $13 million dollars in the first operational year and $15 million in year two.  Net profits in year one will be over 60% of sales and will maintain that level in year two.  The company’s long term plan is part of the due diligence package.  The first few months of formative operation will burn cash (see the Start-up table later in this document) until revenue can commence.  This is due to the organizational and regulatory obligations of a new tour operator but aggressive marketing and promotion will readily make up for the slow start.  

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After our service starts, we will keep a close eye on sales and profit.  If we are on target at the end of year two,  we will look to expand into a new market.

Risk Evaluation

With any new venture, there is risk involved.  The success of our project hinges on the strength of acceptance of our new tours and buses.  After year one, we expect a lot of competition in the form of the established tour operators banding together against us.

Ideally, DDTOW would like to expand into the Baltimore, Richmond, Atlanta and Miami markets over the next ten years.  At that time, we will entertain the possibility of a buy-out by a larger Sightseeing/Tour operator or seek to sell to a new owner.

Funds Sought and Utilization

DDTOW is seeking financing of $800,000, in the form of a five-year loan.  Most of the planned start-up costs are apportioned to the following areas in approximately declining value:

• Purchasing twelve 70-passenger London-style double-decker sightseeing buses, nine of which are open top for beautiful days and nights and three closed top for cold or inclement weather.
• Provisions of a sufficient cash reserve to assure timely payment of operating costs of the buses for the first three months.
• Costs associated with recruiting, training, and paying operational crews.
• Marketing, advertising, and public relations costs, including the cost of setting up a website capable of offering tour information and making online sales and reservations, and related Internet marketing, as well as conventional print and broadcast advertising, and public relations activities.
• Administrative and legal costs incurred in setting up the business and the tour operations.
• A reserve to cover overall operating costs, aside from bus operating costs, over at least the first three months of operations.

The following chart illustrates the highlights of our business plan over the first three years. 

1.1 Objectives

Double Decker Tours of Washington will have as it primary objectives the following elements:

• To establish and operate a new tour company aiming specifically at touring the monuments, memorials, museums, and government buildings of the capital city as well as touring the historic neighborhoods away from the city center.
• To implement an organizational and marketing strategy that will, beginning in the first months of operation, achieve an average load per bus of 65-85 percent depending on season and increasing thereafter to 75-100 percent, thereby maximizing revenues and return on investment while reducing risk.
• To achieve revenues of about $14 million by our first full year of tour operations, exceeding $20 million by our third year.  Also to expand into newer markets in the Baltimore-Washington corridor.
• To achieve net operating profits of 60-70 percent within the first 12 months of tour operations and steady growth enabling rational expansion of the company thereafter.
• To achieve the following results starting with twelve 70-passenger London-style doubledecker buses obtained through purchase to serve the touring public in Washington and incrementally expanding the fleet as demand grows.
• To gear operations, and present a professional, serious, growth-oriented image from the outset, that will set the stage for a reasoned, planned expansion, mirroring growth rates projected for the first years of operations.
• As an element critical to achieving DDTOW’s other key objectives, to identify and develop strategic alliances through the DC Chamber of Commerce, the Greater Washington Board of Trade, the Washington Convention and Tourism Corporation and other Washington associations and tourism groups. 

1.2 Keys to Success

In descending order of importance, the five critical keys to success for Double Decker Tours of Washington are:

• Employing an experienced, highly professional management team that combines vision; realism; financial ability; solid knowledge of the Washington tour/sightseeing market; familiarity with, and belief in, the utilization and benefits of the latest computer informational technologies; realization of the crucial importance of an organization personnel to its success; and a total commitment to the overall mission and goals of Double Decker Tours of Washington.
• Intelligent, progressive, and aggressive marketing that identifies the company as a different kind of player, one that is sharper and smarter, with a higher level of professionalism and operational standard than is the norm in the Washington region.  Concentration on safety, with highly trained, dedicated, and professional personnel, caring for the customer and the customer’s needs and straightforward, understandable fare pricing will form key pillars of the marketing strategy.
• Identification, through careful market research, of unserved or under-served routes in the city that may be of interest to our customers and enable high load factors and profitable operations.
• Use of a fleet of London-style doubledecker buses that offer an unobstructed view of the city from the top deck and offers a high level of comfort, safety, and fuel and operational efficiency.
• Use of information technology to reduce staffing and other operational cost; expand the potential market base; readily capture sales opportunities; and enhance customer convenience and satisfaction.

1.3 Mission

Double Decker Tours of Washington, LLC has a mission to provide safe, professional, reasonably priced sightseeing services to our customers.  We intend to fill a niche in the Washington sightseeing market that is unmet at this time, to sites in the city that are not currently shown, as well as highlight the sites that are known to millions of visitors.  We will operate and maintain the best fleet of buses available and we will never skimp on safety or customer service.  We will always have and promote fun tours so that when the customer leaves us, they will remember the good time they had and recommend us to a friend or relative.  We will provide friendly and courteous service from the time we meet to the time they leave.  

With a combination of clean buses, friendly and informative and helpful driver guides along with outstanding customer service, DDTOW intends to lead the other companies and make our standards their ambition.

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

Double Decker Tours of Washington is a new company that will provide daily sightseeing tours in Washington DC.  Its sales and boarding point will be located at the MCI Center in Northwest Washington, and administrative offices on Third Street in Northeast Washington.  The operation will focus on:

• Providing regular sightseeing tours of the nation’s capital to include monuments, memorials and other sites of interest.
• Provide charter service for special groups.
• Provide tours of other historical and interesting venues away from the city center.

2.1 Company Ownership

Double Decker Tours of Washington will be created as a closely held private District of Columbia Limited Liability Company based in Washington, DC. It will be owned by its founder and principle investors. 

2.2 Company Locations and Facilities

2.2.1 hours of operation.

DDTOW will be open seven days a week.  Tour service will begin at 8:30 am during the spring and summer months and 9:00 am during the winter.  Our evening tour service will begin at 6:30 pm during the winter months and 7:30 pm during spring and summer.  We will be closed on Thanksgiving and Christmas.

2.3 Start-up Summary

Most of the planned start-up costs are apportioned to the following areas:

• Purchasing twelve 70-passenger London-style double-decker sightseeing buses, nine of which are open top for beautiful days and nights and three closed top for cold or inclement weather.  We budgeted $225,000 for the buses, and it will cost us an additional $100,000 for the paint job.
• In addition to the twelve buses, our other long-term assets will include the audio-visual system that will be installed on the buses, for which we budget $80,450.
• Provisions of a sufficient cash reserve to assure timely payment of operating cost of the buses for the first three months.
• Costs associated with recruiting, training and paying operational crews.
• A reserve to cover overall operating costs, aside from bus operating costs, over at least the first three months of operations. 

  Start-up capital will be financed through investment and long-term loans.  Start-up details are located in the table listed below.

Double Decker Tours of Washington will provide double-decker bus sightseeing tours throughout Washington and close-in memorials.  We will survey the national monuments, White House, US Capitol, and the many government buildings along the way during a 2-1/2 to 3 hour  tour.  DDTOW will run 12 converted London-style double-decker buses, giving our tour customers an unobstructed photo opportunity of the many beautiful sites in Washington. 

To make us different from the rest of the companies that operate here, we will aggressively advertise our services and stress and strive for the best service, tours and customer service in the industry.  To accomplish this, we will present surveys to our customers after every tour and we will evaluate our services at our weekly meetings to expand what we are doing right and correct what we are doing wrong.  Each night, our buses will be cleaned and serviced to prevent breakdowns and each day, before tours begin, we will inspect ourselves to make sure that we are presentable to our customers.  To expand our services to the widest amount of people, in the future, we will install a multilingual audiovisual system aboard each bus that will explain the tour in Spanish, French, Japanese and German, as our driver guide narrates in English.

3.1 Service Description

Double Decker Tours will be a full service tour and sightseeing company which will also provide charters for special occasions.  DDTOW’s knowledge of the nation’s capital, it’s rich history, and it’s local entertainment and cultural areas will ensure we provide our customers with a well narrated tour.  Our competitive rates and our focus on customer satisfaction will position DDTOW as a tour company that will be able to weather the economic climate that is facing Washington today and help garner repeat business. 

Our tours will consist of surveying the White House, Capitol, Senate Office Buildings, House Office Buildings, Library of Congress, Supreme  Court, Botanical Garden, National Gallery of Art, Smithsonian Museums, Washington Monument, Holocaust Museum, Hains Point, Jefferson Memorial, Roosevelt Memorial, Lincoln Memorial, Kennedy Center, Georgetown, Iwo Jima Memorial, Embassy Row, National Cathedral, Ford’s Theatre, FBI Headquarters, Union Station, Japanese-American Memorial and many other sites throughout the city.

3.2 Competitive Comparison

The Washington DC tourism and convention market before September 11, 2001 was robust and  hosted more than 18 million visitors annually.  Since that time, the industry has seen a reduction in the number of visitors because many of the sites that were open now have been closed or access restricted.  Although this may present a deterrent to many people, Washington has many visitors that still come for business and pleasure, so that while depressed, the market is growing and will climb back to previous levels in the future.  In the Washington metro area, over 4 million people make this their home so Double Decker Tours will have many customers to choose from.  DDTOW will tailor its tours to take advantage of areas that are still open.

3.3 Sales Literature

Brochures to feature our tours and services will be produced locally and distributed to hotels, information service kiosks and the Washington Visitor Center.  Direct mail, advertisements and sales promotion literature will be utilized as needed.

3.4 Special Interest Tours

Double Decker Tours of Washington will concentrate on the local sightseeing and tour services, but we will also develop special interest tours for Black History Month, Veteran’s Day, Cherry Blossom Festival and others to showcase the diverse cultural aspect of the city.  We will employ multilingual narrators to cater to our foreign visitors. 

In the future, DDTOW will add buses to our fleet so that we may offer a shuttle service narrative tour in the same way that Tourmobile does today.  We intend to expand into the Annapolis and Baltimore markets.

Market Analysis Summary how to do a market analysis for your business plan.">

In recent 2002 WCTC figures, overnight leisure travel increased significantly, while day-trip volume was down, but the good thing was that average trip expenditures increased to 2000 levels of $480 per day per trip.  Many of trips that were made to the city centered around visiting historical places and museums (36%) and  shopping (24%).  In leisure travel, 36% of visitors were solo travelers as compared to 80% of business travelers and 23% of leisure travelers came with children as compared to 6% of business travelers.  Also many of our visitors to the city have income of over $75 thousand, were married, had no children and were in the 35-54 age group.

Our potential customers are people who want a unique tour experience at a reasonable price.  These will include people who come to the city for the day, leisure travelers, honeymooners, budget-conscious travelers, business travelers, families, students and seniors.

4.1 Market Segmentation

• Sightseeing, R&R, Honeymoon, Special Interest: Our most important customers will be the people who visit Washington for sightseeing, rest and relaxation, on their honeymoon or are here for a convention or other special interest.   We will develop special pricing to encourage honeymooners to spend some time with us and we will highlight their recent marriage during the tour.  Because we support our service people, we will offer discounts to active duty and retired military personnel during Memorial Day and Veteran’s Day holidays.
• High-income:  For these travelers price is not an option, so by pricing ourselves in the middle of the market, we will be able to attract these customers.
• Budget conscious travelers, families, students and seniors:  This group of travelers will find our prices competitive and the tour unsurpassed by the existing tour companies.

Overall, we split our potential market into the DC visitors and Washington area residents. The table below summarizes our market analysis projections.

4.2 Target Market Segment Strategy

Double Decker Tours is located in Washington, DC, our nation’s capital.  The monuments, memorials, theatres, museums and other points of interest make this one of the most visitor intense cities in the country.  Each year over 18 million visitors come here and with the opening of the new convention center, an additional 3-4 million are expected.  Also in the next year, many new sites will be opened such as the World War II Memorial Museum, City Museum, US Capitol Visitor Center, Martin Luther King Memorial and American Indian Museum bringing many new visitors and potential customers to the city. 

All who come for a day trip or who are here for business or pleasure and stay overnight will be in our target market.  We will develop our marketing message to attract these customers and our company policy and aim will be to develop repeat business through word-of-mouth advertising and paid advertisement in the local media.  Our proposed location at the MCI Center will also help in attracting customers since it will be in the heart of the entertainment district with plenty of parking and access to Metro.

4.2.1 Market Opportunities

In addition to 4 million residents, the Washington area also welcomes around 18 million visitors annually.  As indicated above, both of these groups represent DDTOW’s potential customers.  Market research shows that our potential customers spend over 45 weeks per year in a work setting and when they come to Washington, they have between 3 to 7 days to experience our fair city.  Many take sightseeing tours to get an informative layout of the monuments and other points of interest.  This allows them to familiarize themselves with the historic monuments of the nation’s capital in a relaxing and informative way.

4.3 Service Business Analysis

The US travel and tourism industry is the third largest retail industry generating revenues of over $100 billion dollars a year.  The industry is separated into two main categories, business and leisure travel.  Each constitutes about 45% to total revenues.  The remainder of revenues are generated from combined business/leisure travel.  The market is further divided into domestic and international travel.  Domestic travel accounts for more than 70% of generated revenues.  Business travel can be divided into two categories, the medium and large corporate account and the small independent businessman.  Leisure travel is classified according to the types of trips they take, age, and income.

The four primary leisure travel groups are:

• Adventure, Special interest, R&R, Honeymoon and Sightseeing
• High-income Travelers
• Budget-conscious Travelers
• Families, Students and Seniors

4.3.1 Competition and Buying Patterns

There are many companies in Washington providing sightseeing, tours and charter services.  Most of them have one or two things in common, they use coach buses (45 passengers), Trolleys (35-40 passengers) or Tram (85-120 passengers) and the two largest, Tourmobile and Old Town Trolley, use a shuttle system where they stop at certain points in the city so the passenger can get off and explore the site.  Double Decker Tours may do this in the future, but our focus at this time will be to provide clean buses and  informative tours from a single pick-up and drop-off point.  During the warm spring, summer, and fall nights we will conduct a three-hour tour where we will make three stops so that our customers can explore the Jefferson, Lincoln, and Roosevelt memorials.

4.3.2 Main Competitors

Our main competitors in the Washington sightseeing industry are:

• Tourmobile :  Tourmobile is based at East Potomac Park and is authorized by the National Park Service to conduct sightseeing tours along the National Mall and in Arlington National Cemetary.  Tourmobile uses a shuttle service employing 85-passenger trams along the Mall and 120-passenger trams in Arlington.  They have been in business for over 25 years.  Tourmobile was started in 1969 as a subsidiary of Universal Studios to provide interpretive services along the National Mall.  In 1981 Tom Mack bought the company making Tourmobile, Inc. a locally-owned, Washington, DC company.  Tourmobile has over 42 vehicles and serves upwards of 2 million riders annually.
• Historic Tours of America :  HTA operates in Washington as the Old Town Trolley and DC Ducks.  HTA is a national company with outlets across the country.  HTA, like Tourmobile, uses a shuttle system for its passengers and they use 35- to 60-passenger trolleys.
• Grayline :  Grayline International is a global company with offices and tours around the world.  Grayline contracts out its services to local bus lines and runs multiple tours.  Grayline runs the Lil Red Trolley as its service in Washington.
• Zohery Tours :  Zohery Tours is a local company that runs 15-passenger vans and 45-passenger coach buses.  Zohery tours are about 3 hours in length.

Strategy and Implementation Summary

DDTOW will focus it’s efforts, initially, on tours in and around the city of Washington.  Being the nation’s capital, its rich history attracts visitors from across the country and around the world.  Estimates from the Washington Convention and Tourism Corporation concludes that over 18 million visitors come to the city spending over $10 billion dollars.  Most of the money is spent on lodging and food but a considerable portion is spent for touring and sightseeing.  By tapping into 2% of the potential market or 453,000 customers,  Double Decker Tours is posed to make over $14 million dollars in sales during it’s first full year of operations.  We intend to advertise heavily in the region to attract customers and hold unique events to help boost sales.

Another method we will utilize to capture sales will be a Welcome Aboard photograph.  How this works is that as our customers are boarding the bus for a tour, we will take a photograph of them and when they return, we will have a digital photo board with their picture on it.  If they would like their photo, we will print it and frame it with one of our DDTOW frames, and we will let them e-mail their photo to anyone in the world from our e-mail server.

5.1 Competitive Edge

DDTOW’s competitive edge is recognizing a niche market that is unfulfilled at the moment.  That market consists of introducing to the Washington sightseeing public the other city away from the monuments and memorials of the Federal City.  Groups such as CulturalTourismDC, HeritageDC, DowntownDC and the mayor’s office are spending millions of dollars to entice visitors to the scenic and entertainment sections of Washington.  DDTOW can take advantage of this promotion by introducing a fleet of London-style double-decker buses and specialized tours in the areas that are being highlighted.  Tourmobile, because of their charter with the National Park Service, cannot operate off the National Mall and Old Town Trolley, being a national service, has established their routes and at this time are not interested in exploring areas that may not be profitable to them.  We, on the other hand, with aggressive marketing and promotion in conjunction with the above groups can capitalize on that new and emerging market as well as provide regular tour around the monument and memorial that most tourist want to see.

5.2 Marketing Strategy

Double Decker Tours adheres to the theory that the goal of business is to create and keep customers happy.  Our marketing strategy will reflect this goal as we build our reputation in the Washington sightseeing/tour market.  Many of DDTOW’s potential customers spend over 55 weeks per year in a work setting and when they come to Washington, they have between 3 to 7 days to experience our fair city.  Many take sightseeing tours to get an informative layout of the monuments and other points of interest. 

DDTOW will promote the capital city of monuments, memorial and historical sites plus we will provide them with a view of the other city.  Our tours will take them to the neighborhoods that they might have seen in the movies, our entertainment districts, and other prominent sites that will pique their interest.  At the end of the tour, our goal is have each and every customer leave the bus with an ear-to-ear grin.  That way when the customer goes home, they will tell their friends about our service and the beauty of Washington.  We will also follow up our tours with survey forms so that we can get feedback from our customers so that we may improve.

5.2.1 Pricing Scheme

Much of Double Decker Tours’ pricing is determined by our competition.  The price of sightseeing in Washington ranges from $15 to $40.  By setting our price at the level of $30, we will appeal to the budget conscious traveler as well as those that price is not an option.  With a potential market of over 22 million people per year, we are basing our first year figures on servicing 453,000 or 2% of the potential visitors.

5.2.2 Promotion Scheme

The overall concept and design of Double Decker Tours of Washington sets the stage for its promotion.  Marketing and promotion will stress the unique buses, the fun you can have with us and quality of tours that will set it apart from the rest.  Strong public relations combined with well-placed, well-designed, distinctive advertising appealing directly to people who are our prospective customers will help get the word out.

5.2.3 Marketing Scheme

Customers will be reached through traditional marketing communication methods.  Research suggests that our target market customers, and travelers in general, are Internet savvy, so before traveling to Washington, many will access the Web for sightseeing information and may make reservations or purchases via that medium.  Besides, the Internet will serve as an effective means of communication and distribution of information about our services.  DDTOW will target our customers initially at our kiosks and bus stops as we board our passengers, giving them brochures and other literature that they may share with their family and friends, but we will also look at cable television, radio and other inexpensive media to get our message out.

5.2.3.1 Marketing Effort

The marketing effort will employ a mix of vehicles to convey our message and presence.

• Print media — local newspapers, free weeklies
• Broadcast media — local programming and special interest shows
• Hotel guides — concierge relations, Chamber of Commerce, Board of Trade, Washington Convention and Tourism Corporation brochures
• Misc. — Yellow Pages, charity events

The marketing effort will be split into three phases using the media vehicle described above:

1) Opening — An advanced notice (press packet) sent out to all media and printed announcement ads in key places, rack brochures, direct mail/giveaways.  Budget – $80,000

2) Ongoing — A flexible campaign (using above media), assessed regularly for effectiveness.  Budget – $12,000 per month in the first year

3) Point of sale — A well trained staff can enhance the customer’s overall experience.  Word-of-mouth referral is very important in building a customer base.

5.2.4 Futuristic Plans and Strategic Opportunities

DDTOW, upon successful operation of two years, will begin to develop strategies and plans geared towards opening new offices and sightseeing services in Baltimore, Annapolis, Miami and eventually Atlanta, expanding as the need and resources allow.

5.3 Sales Strategy

Double Decker Tours will aggressively sell the benefits of touring with us by implementing the following action items:

In our first months of operations we will:

• Begin a major advertisement campaign to let the Washington area sightseeing public know that there is a new tour in town.
• We will host a party for the concierges of all the major hotels in Washington and present them with an incentives offer for referrals to DDTOW.
• We will join the DC Chamber of Commerce, Washington Convention and Tourism Corporation and Washington Board of Trade and cohost a meet and greet party for the local business, media and government officials and invite decision makers from the area.
• We will buy inexpensive media time throughout the year on local radio, in the print media, on television and cable television outlets to promote our tours and the fun that you can have traveling with Double Decker Tours.

In the future we will:

• During the school year we will offer discount tours to area schools and during the summer we will offer discount tours to area colleges and universities for their incoming freshmen and their families.
• Develop special tours such as ‘Lovers Only’ tours at Valentine Day.
• Host Fraternity and Sorority night tours.
• Develop ‘Movie Scene’ tours.
• Host Family Reunion special tours.
• Develop Veterans tour specials.
• Host a once a year Stone Cold Family Picnic tour.
• Add to our product line a picture-taking ability so that before customers go on one of our tours, we will take pictures of the group and have a framed portrait waiting for their return, as well as the ability to send the picture via e-mail to anywhere in the world.

Our commitment is to maximize the pleasure of our customers so that their time with us will be one of the most memorable parts of their trip to Washington.  As we grow and profit, Double Decker Tours intends to spend from 5% to 10% of gross revenues on advertising thereby raising DDTOW’s image in the regional tour and sightseeing market.

5.3.1 Sales Forecast

The sales forecast is based on DDTOW capturing a 2% share of the over 18 million visitors that visit Washington along with the approximately 4 million people that live in the metro area.  That means that DDTOW would have to service 453,000 customers during the 2004-2005 year, 543,600 during the 2005-2006 year and 652,300 during the 2006-2007 year.  These figures are based on running an average of 24 tours per day divided between 12 buses during the summer and  8 to 18 tour per day during the winter months.  During the summer months in Washington, with the amount of advertising  and aggressive marketing that we plan to do, DDTOW will be able to meet the goals that we have set for ourselves. 

Another service that DDTOW will offer our customers will be a digital photograph of their group.  As the groups prepare to board our buses, we will take photographs of them.  After they finish the tour and return to the MCI Center, we will have a framed photo of them already mounted along with a digital copy that they can e-mail through our Internet station to anyone in the world.  We will charge only $10 dollars for this and we forecast only about 1 in 15 will take advantage of this option.  This is an option that none of our competitors are using at the moment.

The table below summarizes our sales forecast.  We have chosen to treat only fuel and photo processing and Internet connections as our direct costs of sales, while some of our other projected expenses related to the service delivery, such as drivers’ salaries, are reflected in our Profit & Loss projections later in this document.

5.4 Milestones

Double Decker Tours of Washington’s important milestones are detailed in the following table.  DDTOW believes that it is important for a company to set goals because this helps determine the company’s strategy and tactics, and maintain company focus.  The milestones are seen as progress points and will be used to measure DDTOW’s success in reaching it’s goals.

What the table doesn’t show is the commitment behind it. Our business plan includes complete provisions for plan-vs.-actual analysis, and we will hold monthly follow-up meetings to discuss the variance and course corrections.

Web Plan Summary

DDTOW will establish a presence on the World Wide Web, linking it to the Washington Visitor Center Web site, to promote our tours, accept electronic mail to answer queries and take reservations.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

Mike Coleman and Paul Williams will serve as member managers, however, DDTOW is a small company and its administrative staff will share in management duties and decision making.  This will make it important for each member of the team to be capable in all aspects of the business.  Prerequisites for all administrative employees will be cash handling, personnel management, computer skills and sightseeing/tour experience. 

We will train our staff to become competent in these areas and we will embark on a continuous training program for all employees.  Our operations staff will consist of experienced driver/guides, many of whom have already worked in the local market and we will contract out to certain narrators for special projects.  DDTOW will contract the maintenance of the buses to Peter Pan in Tuxedo, Maryland, which services Old Town Trolley and Grayline’s Lil Red Trolley, so that the fleet will be well maintained at all times.

7.1 Personnel Plan

DDTOW will begin operating with 22 full time positions.  The positions are as follows:

• Member Manager – Michael F. Coleman
• Member Business Development – Paul F. Williams
• Marketing / Sales Associates (4)
• Courtesy Captains (4)
• Driver/guides (12)

Member Manager and owner, Michael F. Coleman, age 50, has knowledge of the local sightseeing and touring industry in the Washington area.  Mike has gained his sightseeing and tour experience from working for Tourmobile and conducting walking tours in the city over the past two year.  From that experience, he has gain an unique perspective of what it would take to start and run a successful tour and sightseeing company.  Mike has also been involved in scheduling, guiding and many administrative functions needed for running a business. 

Before starting Double Decker Tours of Washington, LLC, Mike sold health care products under the Equinox label until the company went out of business in November 1999.  From that experience, Mike learned how to motivate a sales force, help design new sales strategies and develop creative ways to market the products.

Before that, Mike was a software and database consultant to different companies throughout the Washington area working for such firms as Computer Sciences Corporation, Computer and Applied Sciences, Inc., General Services, Inc., the General Services Administration and PATA USA.  In this capacity, Mike was responsible for scheduling, customer service, writing numerous reports and billing of services. 

Mike also worked as a member of the board for the H Street Northeast Merchants and Professional Association.  Working on the board with numerous business people gave Mike an insight into the day-to-day operations of small businesses and gave him a chance to meet other business people through the associations membership in the Greater Washington Board of Trade.  Mike, as a member of the board, also worked on the H Street Festival Committee in 1999, which re-introduced the H Street Festival back to Washington after a long hiatus. 

Mike also wrote and independently published a book called the Fitness Diary, which allowed fitness enthusiasts to document their workouts.  The Fitness Diary was well received by bodybuilders and those that just wanted to look good.

Member Business Development, Paul F. Williams, has over 30 years of entrepreneurial experience in computer and information technology, export promotion, international business development, private sector development, technology transfer and management and technical assistance domestically and in Africa.  Mr. Williams is founder and president of THE INFORMATION PROCESSING COMPANY, INC. (TIPCO, INC.), an international trade and business development firm.  His company consults with governmental and private sector organizations, businesses and individuals on issues involving domestic and international trade and business development. 

Mr. Williams was the counselor and instructor in International Business Development/Export-Import; past Counselor/Director of Cities In Schools Youth Entrepreneurial Empowerment Project; creator and coordinator of the Volunteer Consultant Corp at Howard University Small Business Development Center; Chairperson, International Trade Committee of the Black Presidents’ Roundtable Association (BPRA); Chairperson, International Trade Committee of the D.C. Chamber of Commerce and many other accomplishments.  Mr. Williams will develop strategies for increasing business for DDTOW.

Marketing/Sales Associates:  The individuals selected for these positions will have extensive experience in the local tourism and sightseeing industry.  They will have a proven track record in generating sales.  Their responsibilities in this position will be to develop marketing and sales materials and campaigns as well as supervising sales personnel as we grow.

Courtesy Captains:  The individuals selected for these positions will have customer service experience as they will be our face to the public.  They will hand out literature about the company and our tours, help customers board the buses and answer questions or complaint that come up.  The Captains will also take photographs of our customers as they board the buses for later sales.

Driver/Guides:  The individuals selected will be required to have a Commercial Drivers License and Tour Guide License.  Drivers will have local knowledge of the city and they will be responsible for the safety of the buses and passengers and will present informative, humorous tours to our customers.

7.2 Compensation and Incentive Plan

Compensation and incentives for employees and managers of Double Decker Tours of Washington, LLC is as follows:

Courtesy Captains and Driver/Guides will receive overtime pay (currently estimated at 20%) in addition to their regular salary.  Also all employees will be covered under a health, dental, and vision plan after three months of employment.  Plans for a profit sharing or 401(k) plan will be available for employees.

At Double Decker Tours of Washington, we believe in an incentive based entrepreneurial approach to management.  To have the employee want to work and make money, we will institute programs that will benefit the employee as well as the company.  For example, when we sell photographs of our passengers, the Courtesy Captains will make a commission on the photos sold during their shift.  How this will benefit them is that a receipt will be processed with the CC name on it so that when a purchase has been transacted, that CC is credited with the sale, thus the commission.  At this point, we will assess what commission will be paid.  For the drivers, we will allow them to compete for tips as well as overtime pay.  But we will also keep tabs on their attendance and appearance.  At the end of the month, those drivers that have the best attendance record and appearance will be allowed to compete for the monthly bonus.

7.3 Advisory Committee

Mr. Coleman is in the process of assembling a group of established businessman as his board of advisors so that he may learn from them the lessons they have learned before encountering them himself.

7.4 Professional Support

• Stitcher, Mosley & Company, PA of Lanham-Seabrook Maryland has been tapped to be our accountants.
• DH Lloyd and Associates have been contacted about our insurance needs.

Financial Plan investor-ready personnel plan .">

Double Decker Tours of Washington’s financial plan is detailed in the following sections.  Preliminary estimates suggest a substantial profit after our first two quarters of operations.  Income estimates are based on garnering 2% of the tourist/sightseeing business in Washington with a growth rate of 20% for the next three years and a growth of 10% after that.

All our financial projections present a conservative but realistic depiction of DDTOW’s financial position based on loans and financing of $800,000.

8.1 Important Assumptions

DDTOW, LLC assumes the following:

• Market growth projections for sightseeing will be down because of war fears that permeate the city but with over 4 million residents in the area and over 20 million visitors per year, DDTOW, LLC will be able to experience a 20% growth rate over the next three years.
• Local economic conditions will remain viable and favorable to the tourism industry for the next five years.
• International conditions will change from a war footing to peace thus increasing tourism to the city.

8.2 Break-even Analysis

The break-even analysis is based on an average monthly fixed cost of approximately $121,200. By placing our ticket price between Tourmobile’s price and Old town Trolley’s, we needed only4,000 riders per month to break even. On a thirty-day basis that comes to about 134 riders per day or 12 riders per bus per day. During the fall, spring and summer months, we will more than surpass that number of riders.

8.3 Projected Profit and Loss

Our projected profit and loss is shown on the following table, with sales increasing from more than $14 million the first year to more than $21 million the third, and profits varying substantially for the start-up phase of this business. We show a profit in the first year on 2% of 22 million visitors to the city or 453,000 customers which equals 1,286 customers per day or making two tours per day for 12 buses.

As with the break-even analysis, we are projecting very conservatively regarding cost of sales and gross margin. Our cost of sales should be much lower, and gross margin higher, than in this projection. We prefer to project conservatively so that we make sure we have enough cash.

The detailed monthly projections are included in the appendices.

8.4 Projected Cash Flow

Cash flow projections are critical to our success. Our analysis shows strong cash generation over the projected period. Some of our assumptions for the cash flow table below are as follows:

• We start repaying on the $800,000 five-year long-term loan at the very beginning of our operations. The first few months will be critical to our survival as we need to make sure that our cash balance remains strong.
• We do not plan any additional long-term asset purchases, except for those summarized in the start-up table earlier in this document, for the first year. During the second and third year we budget $100,000 for each year for additional long-term asset, which may include some additional or replacement buses.
• We assume collecting the District of Columbia’s sales tax (5.75%) off the ticket sales. These sales taxes will be paid out quarterly. For all additional purchases (i.e., operational expenses and capital assets) we assume prices inclusive of applicable sales taxes.

The monthly cash is shown in the illustration below, with one bar representing the cash flow per month, and the other the monthly cash balance. The annual cash flow figures are included here and the more important detailed monthly numbers are included in the appendices.

8.5 Projected Balance Sheet

The balance sheet in the following table shows managed but sufficient growth of net worth, and a sufficiently healthy financial position. The monthly estimates are included in the appendices.

8.6 Business Ratios

We expect to maintain healthy ratios for profitability, risk, and return. The following table outlines some of the more important ratios from the Sightseeing tour company industry. The final column, Industry Profile, details specific ratios based on the industry as it is classified by the Standard Industry Classification (SIC) code, 4725.9902.

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Travel Tour Agency Sample Business Plan

Start-up your travel tour agency with a business plan similar to this detailed example..

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Starting your own travel tour agency but don’t know how to compile your business plan? Here’s an example of a dummy company’s business plan to get you thinking about how to create yours.

Travel Tour Agency Business Plan

1. executive summary.

The tourism industry has undergone rapid growth of unsurpassed nature over the last several decades. This has mainly been due to the advent of a ‘borderless’ world and increased information dissemination about the majestic sceneries throughout the world, with the southern African region being no exception.

We are on the brink of penetrating a lucrative market in a rapidly growing industry. The current trend towards an increase in the number of tourists entering the country presents an opportunity for Sephats Tours to penetrate the market.

An opportunity for Sephats Tours’ success exists because the national tourism industry is growing at a rapid pace annually.

Sephats Tours is poised to take advantage of this growth and moderate competition in the city travel portion of the industry, with a dedicated and experienced staff, excellent networking, and effective management and marketing. Sephats Tours intends to provide travel and adventure packages to tourists primarily in the Southern region, but also the whole of Botswana.

Services and products provided by Sephats will initially include pre-arranged tours, custom packages according to clients specifications, travel consultation, and as time progresses making reservations for lodging amongst other related services. Sephats Tours seeks to differentiate itself as the premier adventure mobile operator in the greater Gaborone area.

Our services will be positioned very carefully: They will be of extremely high quality, comfortable, informative and tailored to the clients needs such that they will enable individuals to have a greater appreciation of the natural environment and its intricacies.

Our marketing strategy will be based mainly on ensuring customers know about our existence and the service(s) we fulfill. Hence our intention is to make the right information available to the right target customers. This will be done through implementing a market penetration strategy that will ensure that we are well known and respected in the tourism industry.

We will ensure that our prices take into consideration peoples’ budgets, that these people appreciate the service(s), know that it exists, and how to contact us. The marketing will convey the sense of quality in every picture, every promotion, and every publication.

Our promotional strategy will involve integrating advertising, events, personal selling, public relations, direct marketing and the Internet, details of which are provided in the marketing section of this plan.

It is important to recognise that we do not intend to just take individuals on sightseeing excursions, but also to ensure that they appreciate nature through informative briefings on objects’ origins.

This element will assist in differentiating us from our competitors and contribute towards the development of a sustainable competitive advantage.

Hence we need to engage the right people in the right place at the right time if we are to ensure optimum growth. We intend to develop our team so that our people can grow as the company grows – a mutually beneficial relationship.

We project sales to increase from more than P350,000 (Botswana Pula [P]) the first year to more than P556,500 the second, and P630,000 in the third year.

In a nutshell, we do not just intend to market and sell our service, but to market and sell travel solutions and a total-quality environment. This will ensure we establish a reputable corporate image.

1. Objectives

Our business strategy will revolve around the need to provide quality service to our various target customers, in the process fully satisfying their needs. This shall be undertaken through recruitment of a professional team and the provision of good quality custom-designed travel packages, catering to the client’s particular needs.

With time our marketing campaign will increase the awareness of our services in the various market segments we shall be targeting. This is particularly so with the organisation looking at establishing a clear advantage(s) in an increasingly competitive market.

We will provide clients with the opportunity to focus on their core activities whilst their transportation side needs are fully satisfied. Marketing material shall be professionally done so as to be reflective of our intended image and reputation.

We shall position ourselves as a quality commercial transportation operator that provides customer-need fulfillment, enjoyment, reliability and a good image. We intend to establish a good rapport with all the relevant stakeholders, especially hotels and travel agents.

We also intend to have well-designed brochures and other promotional material that will enable clients to have an understanding of the types of services we offer and advantages of utilising them.

In addition well-done, informative brochures, fact sheets and business cards often have a triggering effect on clients contemplating utilising our services. Hence this will undoubtedly generate increased sales of our service.

In summary we intend to attain the following objectives:

• Continuously provide enjoyable quality excursions/trips on time and on budget.
• Develop enthusiastically satisfied customers all of the time.
• Establish a market presence that assures short-term and long-term profitability, growth and success.
• We are fully committed to supporting growth and development in the tourism and overall economy of Botswana.
• Contribute positively to our communities and our environment.

Internally we intend to create and nurture a healthy, exuberant, respectful, and enjoyable environment, in which our employees are fairly compensated and encouraged to respect the customer and the quality of the service we intend to provide.

In addition follow-up will be mandatory so as ensure customer satisfaction and make any improvements as recommended by the customers in future.

We seek fair and responsible profit, enough to keep the company financially healthy for the short and long term, and to fairly remunerate employees for the work and effort.

3. Keys to Success

The keys to Sephats Tours success will undoubtedly be effective market segmentation through identification of several niche markets and implementation strategies.

Along these lines the company intends to implement advertising, personal selling and direct marketing strategies to the target markets.

Our personal selling marketing strategies will rotate around keeping in touch with hotels and travel agencies for major customers, and advertising for more individual customers.

Hence our key success factors will include the following:

• Excellence in fulfilling the promise: We intend to offer completely enjoyable, comfortable and informative travel excursions that will ensure that travelers are thoroughly satisfied and appreciative at the end of their trip.
• Timely response to customers’ requests: We cannot afford to delay our clients for whatever reason, as this will have a negative bearing on our image and reputation, including future business. Hence we need to be continually communicating with the client, including hotels and lodges so as to ensure that we are constantly available to the client meeting their expectations.
• Solid and fruitful strategic alliances : Considering the nature of our services and our relative infancy on the market, we realise the importance of establishing and maintaining fruitful strategic alliances with various stakeholders, including hotels, lodges, and travel agencies, amongst others, so as be assured of a constant flow of customers, fulfilling their needs at every opportunity.
• Marketing know-how: As a relatively new company on the market there will be a need to aggressively market our business and the services we provide so as to be continuously at the top of our prospective clients minds. This will also act as a temporary deterrent for companies contemplating entering our market. Advertising shall be undertaken on a regular basis.

2. Company Summary

Sephats Tours intends to provide individual and group travel to leisure clients.

Services and products provided by Sephats will initially include pre-arranged tours, custom packages according to clients specifications, travel consultation, and as time progresses making reservations for lodging amongst other related services.

Sephats Tours seeks to differentiate itself as the premier adventure travel company in the greater Gaborone area.

As it grows it will take on people and expand into related markets and services. It will also look for additional leverage by establishing relationships and representations with appropriate strategic allies.

1. Company Ownership

Sephats Tours is a Private Limited company incorporated at the Registrar of Companies through the foresight and vision of Mr. X and Mrs. Y. It is a 100% wholly owned Botswana firm.

2. Start-up Summary

Thus far the directors have contributed one hundred and sixty seven thousand pula (P167,000) to purchase a Mercedes Benz mini bus currently in its possession and P30,000 for cash expenses. Total start-up expenses covered (including legal costs, business plan compilation, license costs and related expenses) come to approximately P5,000.

3. Company Locations and Facilities

At present the company offices are located at Plot Number 28338, Block 3, Belabela road opposite Gaborone Television Station, near Hill Crest Primary School.

However, as time progresses the intention is to move into more accessible and attractive offices in a prime area. This regardless of the fact that our type of business is not too dependent on office location and size.

3. Services

Sephats Tours is a travel company that intends to deliver leisure travel excursions to customers. Sephats intends to guide customers in selecting a trip(s) based on pre-defined vacation criteria. This analysis will be based on user profiles, set by the consumers, which includes preferences such as:

• Activities sought
• Destination, and
• Time of Travel

A traveler will hence be able to select areas of interest based on their preferences and subsequently identify destinations to visit.

The intention is to provide customers with access to exclusive travel destinations, service to fully appreciate destinations through information packages, not just sight-seeing, and access to special interest travel according to the group’s/individual’s preferences.

1. Competitive Comparison

There are presently few competitors offering services similar to ours. However considering the pace of change and current growth rate of the tourism industry luring many companies into the sector, this may be short-lived.

Hence there will be a need to not only firmly establish ourselves on the market, but also strongly differentiate ourselves from these other businesses. However on a broader scale our competition comes in several forms:

The most significant competition are hotels and travel agencies offering travel excursions to their clients. They undertake this service in order to establish a competitive advantage over their competitors.

However, instead of directly competing with them we intend to establish good working relationships in the form of strategic alliances such that we are able to offer the service for their clients and thus enabling them to concentrate on their core activities whilst ensuring customers are fully satisfied.

Our key advantage in this regard will be our specialty of the service and hence wide knowledge ensuring customer satisfaction at all times as well as flexibility in providing the service. Existing hotels, lodges and travel agencies may identify the opportunity to diversify into our intended services utilising their current client database.

Naturally, existing clients will be inclined towards utilising these familiar companies due to the fact that a good relationship may have already been nurtured over the years during their business dealings.

This presents a potential challenge to us, as we need to aggressively market our services and expertise in the field. Existing safari operators that mainly focus on the remote environs such as Maun and Kasane are at times able to compromise, offering excursions in and around Gaborone, though very rare. Hence we intend to focus on this market. An analysis of competition is provided in the Market Analysis section of this plan.

2. Service Description

Sephats Tours intends to offer the service and knowledge a discerning leisure traveler seeks whilst on vacation, with the intention of seeing and appreciating the numerous sights in the area.

Keeping in mind the comforts of a tourist, our fleet shall be very well maintained and designed as per customer standard and expectations. However not wanting to limit ourselves we intend to be open to special hire by churches, organisations, groups, schools and sports teams, amongst other related groups.

The game reserves and lodges that we intend to be our main destinations are:

• Mokolodi Nature Reserve
• Goborone Game Reserve
• Gaborone Dam
• The Oodi and Mochudi Craft Villages
• Kolobeng and Thamaga
• Khutse Game Reserve

Below is a briefing of several places of interest and their various attractions.

• Mokolodi Nature Reserve: Set in a wide valley just 10 minutes drive from the city, this scenic reserve offers a well-developed network of game drives and stone and thatch chalets overlooking a water hole. Mokolodi also offers the rare opportunity to track rhino or to walk through the bush with young elephants. These excursions offer excellent photographic opportunities. Evening drives can include a bush braai giving visitors the chance to see the more unusual nocturnal creatures.
• Gaborone Game Reserve: This 550 hectare reserve provides an ideal get-away for tourists who can see a remarkable range of wildlife in the park including rhino, eland, zebra, gemsbok, wildebeest, kudu, ostrich and impala, all on well-maintained bush roads that are designed for easy access. Bird watching in the Gaborone Game Reserve is excellent, particularly along the eastern edge, bounded by Notwane River, and it typifies the incredible diversity of bird life to be found throughout the Gaborone area.
• Gaborone Dam: On the south bank a remarkably rich variety of bird and wildlife can be seen, including herds of impala, kudu and scuttling families of warthog. New picnic sites, which are currently under development will also provide places of interest. The Gaborone Yacht Club is the main attraction on the dam with its swimming pool, bar and wide verandah overlooking the water off a rocky koppie in the middle of the dam which often becomes an island in the wet season.
• The Oodi and Mochudi Craft Villages: In Oodi the main attraction will be the Lenstwe-la-Oodi weavers. In Mochudi apart from traditionally decorated Setswana architecture, the tourists will find the most southerly baobab trees in Botswana and traditional crafts including the Ithuteng Tin Workshop and Ikgabiseng handmade jewelery. The Phuthadikobo Museum in Mochudi will also be an attraction site.

Other sites will include Matsieng Foot Point, Gemsbok National Park, Mabuasehube Game Reserve, Legaga la ga Kobokwe, Central Kgalagadi Game Reserve, Nxaii Pan and Khama Rhino Sanctuary.

Integrating the above places of interest into our tours we intend to be offering the following tours:

• “Capital Crusade” – City Tour: This will be a professionally guided tour around the city centre including visits to the Main Mall, Finance Mall, National Museum, City Council Library, Gaborone Station, and House of Parliament including others. These tours shall be eye opening in terms of the normal Botswana town folk life style providing knowledge and information throughout the guided tour. Included in this package will be refreshments and information folders detailing the main sites and history of Gaborone. This tour will cover approximately 50 kilometers taking about half a day to complete. Cost: PX per person.
• “Cultural Enrichment” – Cultural Tour: This shall involve tours to the main historical and cultural sites in and around Gaborone including Mokolodi Nature Reserve, Oodi and Mochudi Craft Villages, including the cultural dances. This tour shall reveal the ‘Kgotla’ – cultural villages, traditional paintings and art, as well as the traditional lifestyle. Obviously baobabs will make for good viewing. The tour package will include an information folder, guided tour and refreshments. This tour will cover approximately 200 kilometers taking the whole day to complete. Cost: PY per person.
• “The Essence: Past & Present” – City & Cultural Tour: This will be a combination of the cultural tour and city centre excursion. This will be marketed as a “total package” enabling tourists with very little time to appreciate the Botswana lifestyle, both in the present and past. This tour will invariably take the whole day and cover approximately 250 kilometres. The tour package will include the information folder, guided tour, refreshments and a picnic lunch. Cost: PZ per person.

3. Macro-environment

At a large scale research demonstrates that tourism is undergoing a rapid growth of unsurpassed nature. Generally there is a trend towards shorter stays but increased visits, as individuals strive to experience as many cultures as possible, including seeing as many attractions as possible.

Increasingly Botswana is being marketed as “one of the few places in Africa where game sanctuaries have remained completely unspoiled.

A destination that unlocks the mystery of nature – an oasis in a wilderness which is an ideal escape for nature lovers. Very little of this fascinating country has seen human habitation – this is true Africa in all her remoteness and authenticity.

With such marketing in place the number of tourists entering the country is bound to increase, presenting a larger potential market for ourselves. This potential market is what we seek to tap.

4. Sales Literature

The business will begin with a general corporate brochure establishing its position on the market. This brochure will be developed as part of the start-up expenses including the business cards and Company Profile, mainly for the large organisations that often recommend services to potential customers.

Compliment slips are also intended so as to raise awareness of the company and its services. We also intend to have information pamphlets that will provide information on our various tour packages. Literature and mailings for the initial market forums will be very important.

5. Fulfillment

The key fulfillment and delivery will be provided by the employees of the company. The real core value will be professional expertise, provided by a combination of expertise, experience, hard work, and education (in that order). Hence we intend to ensure that the work we undertake is always thorough and relevant to the clients’ needs.

We will turn to reputable companies for supplying the necessary individuals and groups for our services. Hence the need to establish good relationships with our strategic allies.

6. Technology

Sephats Tours will strive to ensure that it contains the latest, or extremely recent personal computer including relevant software so as to ensure that the company is continuously at the forefront in our market arena.

The one certainty in our industry is that technology will continue to evolve and develop, changing what we market as well as how we market it. Our aim will be to be aware of the implications of this new technology and utilizing it in our existing framework where possible. However it should be noted that as we are new on the market it will take some time before we have in place our own website and other multimedia presentations.

With time we also intend to have the latest and most efficient software in place to enable smooth operations.

7. Future Services

In putting the company together we have attempted to offer enough services to allow us to always be in demand by our customers and clients. The most important factor in developing future services/products is market need.

Our understanding of the needs of our target market segments shall be one of our competitive advantages. It is critical to our effort to develop the right new services. In the future, Sephats Tours intends to broaden its coverage by expanding into additional markets.

One of the main services it aims at providing is to become a destination management company that brings alive the magnificence of this country to the traveler. This will be done by co-coordinating the traveler’s entire experience from hotel bookings, safaris and tours, greeting and porter services, and to tour packages and incentives. However in doing so we will strive to ensure that it is compatible with the existing products and company personnel.

As time progresses the intention will to provide a Southern Africa tour package covering the whole of southern Africa.

4. Market Analysis Summary

We are today experiencing a rapid growth in the economy of unsurpassed nature. This has been brought about by, amongst other things, the relaxation of foreign exchange policies and macroeconomic policies geared towards attracting foreign investors into the country.

The fiscal and monetary policies of the government geared towards maintaining growth with social justice have largely contributed towards this, evidenced by our economy averaging a growth rate of 7% since 1990 – very high by international standards.

The current drive and emphasis by the government on diversification of the industrial base away from the minerals sector presents an opportunity for Sephats Tours to make a valuable contribution towards achieving this goal. Having undertaken a thorough and comprehensive research of the market we realized that there was a need for a tourist transport company that focuses on providing leisure excursions to tourists.

Though there are mobile operators currently on the market, some of whom have been in existence for a relatively long period of time, we believe that there is a market need for one that specializes on providing comfortable and enjoyable transport to tourists and visitors.

This, also considering the fact that, potentially Botswana’s richest natural resource, the tourism industry is becoming an increasingly important player in the economy and may in the long term prove even more valuable than mineral resources in earning foreign exchange.

Aware of the fact that operating in such a market is largely dependent on good networking, we intend to establish networks and strategic relationships with various hotels, lodges and travel agents to ensure a steady stream of clients.

However in so doing we intend to ensure that the service we provide is of extremely high quality and comfortable. Our initial overall target market share shall be 10% of the market, mainly focusing on the greater Gaborone area and southern Botswana.

We appreciate that entering such a market is not a ‘bed of roses’ and will require us establishing strong links with strategic partners as outlined previously. Hence we intend to implement an aggressive marketing strategy, well supported by the other business functions.

The above prognosis influenced our decision to enter the tourist transport industry.

1. Market Segmentation

We will be focusing on those foreign tourists seeking leisure travel and excursions whilst on vacation in Botswana, with the intention of letting them see and appreciate the numerous attractions in our country.

Though we realise that the majority of our tourists come from South Africa we shall be mainly targeting those from Europe and the Americas who often do not have transport or adequate knowledge about the country, unlike their South African counterparts who often do. Hence we shall be mainly targeting those who are not that mobile but wanting to see as many sites as possible.

These people often do not want to waste their money on hiring vehicles to move about by themselves, but instead want to be escorted around places of interest by a reliable source. Hence the need to professionally market ourselves and the services we provide, offering a service of uncompromised nature.

2. Target Market Segment Strategy

Our marketing strategy will be based mainly on making the right service(s) available to the right target customer. We will ensure that our services’ prices take into consideration organisations’ and peoples’ budgets, and that these people know that we exist, appreciate the value of our services, and how to contact us.

The marketing will convey the sense of quality in every picture, every promotion, and every publication. Our intension will be to target those individuals and groups looking for leisure activities and places to visit.

We realise the need to focus our marketing message and our service offerings. We need to develop our message, communicate it, and make good on it. The decision to establish strategic alliances with several hotels, lodges and travel agencies is aimed at tapping our target market effectively and efficiently.

2.1. Market Needs

Though the tourism sector has undergone rapid growth over the last decade the vast majority entering this sector have rushed to the North where we have the Okavango Delta, Chobe National Park, and other sites as attraction points.

Very few have focused on south and central Botswana. With this in mind we intend to exploit the untapped market in this area so as to provide our customers with a good service and realize our business objectives.

We understand that our target markets need more than just being shown the areas of interest but also to be informed about their significance and origins. Hence we don’t just intend to provide a service(s), but to provide one of unparalleled nature relative to the market.

2.2. Market Trends

Of all the uncertainty surrounding this industry, one fact is certain: tourism is here to stay. The only question is how large the industry will become and whether it can sustain, if not exceed, its current growth rate. However large the market ultimately becomes, the company strongly believes that travel will be an important component of this market place. Tourism statistics provide a reliable guide as to the size of the market.

According to the latest tourism statistics total arrivals for 1998 amounted to 1,351,798 representing an increase of approximately 12.65% from the previous year. Of the total arrivals in 1998 205,146 (15.2%) were holiday/tourists whilst 319,440 (23,6%) were visitors, both groups of which constitute our target market, totaling approximately 524,586 individuals.

Source: Tourism Statistics 1998 – Central Statistics Office .

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How To Write A Great Business Plan For A Tour Operator

The first step for any person starting a tour operator business is to sit down and write a business plan..

A business plan for a tour operator shouldn’t just be written to give to banks, consultants, or compliance solutions such as Protected Trust Services. The most important reason to write a business plan is for you. A great business plan will allow you to place your ideas on paper and allow you to reflect and develop different ideas and strategies for your tour operator business to be a great success.

Don’t be intimidated by a business plan for your tour operator business.

We understand that it may seem very formal and intimidating to write a business plan. But, it shouldn’t be, and absolutely doesn’t need to be. This one document is quite simply what it says on the tin, so to speak, – A plan for you and for your business.

A great business plan is always short, concise and to the point.

The true key is to write to your audience – make sure whomever is reading this business plan will fully understand your business plan.

What needs to be included in a business plan when starting up a travel business.

The executive summary.

This is a concise document summarising what is in each section of the business plan.

Business Overview

This area describes your business, point to include:

Business formation history

The type of business

The legal structure – are you a Limited Company?

Location of the business

Means of doing business – are you internet based, high street based etc

Operations Plan

This area should fully describe how your business will work. How will the business be set up, who will be responsible for different tasks, when will different tasks be implemented and completed – In essence, how will your tour operator business operate?

Market Analysis

Arguably this is one of the most important elements. It is imperative that you understand your competition and your place in the market.

The major questions to answer within this area:

• Who are your major competitors? Include a little on their history and their success.
• How much are your competitors charging and how will you price in relation?
• How much demand is there for your product?
• Market demand and consumer behaviour towards the products you intend to offer. Who is your target market?

Team and Management

You may have a great idea but the team who will drive your company are the key to true success. In this section describe your team, their roles and also who you will need to hire to fully support an excellent execution of your product.

How are you going to turn your ideas into a phenomenal tour operator business? Within this area you should fully cover your marketing plan, sales plan and also show how you going to measure your success.

Financial Plan

This area is your eyes! Your financial forecast is incredibly important for any startup tour operator business . Every penny going in and every penny going out should be included. This will allow you to see how to price effectively, marketing budgets, cost of sales, staff costs and every element of monies concerning your business.

We have an ideal financial forecast template for travel businesses and also a very simple business plan template for you to follow. Do email us at [email protected] or call 0207 190 9988 and our consultants will always be more than happy to support you. Our advice is completely complimentary.

For a solid understanding of how to write a business plan do take a look at the following link which is full of extensive explanations that we feel will really help you. How to write a business plan.

If you’d like to discuss this further, please get in contact with one of Protected Trust Services’ (PTS) lovely staff members by calling 0207 190 9988 . Or, you can visit our member support and travel trust account pages to learn more about how we protect you.

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Comprehensive Guide to Managing a Tour Business

By Rezdy — 14 Sep 2023

1. The importance of managing a tour business efficiently

2. target market, 3. value proposition, 4. marketing plan, 5. customer service, 6. staffing, 7. financial management, 8. risk management, 9. legal compliance, 10. reporting and analytics, 11. summary.

As you embark on the journey of starting a tour business , it’s crucial to understand the importance of managing it efficiently. That’s where the power of our tour business operations ultimate guide comes in.

By following our tips and tricks when managing tour operations, you can ensure that your travel business runs smoothly and successfully.

In our tour business operations definitive guide, we will delve into key areas that will help you make informed decisions and run your business effectively.

1. The importance of managing a tour business efficiently

Regardless of which tour operation type you choose, efficiently managing a tour or activity business is crucial for its success and sustainability. Effective management ensures smooth operations, timely customer service, and streamlined processes, ultimately leading to enhanced customer satisfaction. By optimizing resource utilization and minimizing operational inefficiencies, the business can achieve better profitability and allocate resources towards growth and expansion. Efficient management also allows for quick adaptation during unexpected situations or crises, maintaining the business’s reputation and customer trust.

Let’s take a closer look at the key areas that will be covered in this complete guide to successful tour guide management:

• Target Market: Identifying and understanding your target audience is the foundation of your business strategy.
• Value Proposition: What sets your tours apart from the competition? Your unique selling points will attract customers.
• Marketing Plan: Developing a well-rounded marketing strategy is essential for reaching and enticing potential customers.
• Customer Service: Exceptional customer service will lead to customer satisfaction and positive reviews.
• Reporting and Analytics: Analyzing data will provide valuable insights to improve your business.
• Risk Management: Identifying and addressing potential risks will safeguard your business.
• Financial Management: Sound financial practices will keep your business on track.
• Legal Compliance: Understanding and complying with relevant laws and regulations is crucial for smooth operations.
• Staffing: Building a competent and motivated team is essential for delivering outstanding experiences.

2. Target market

Understanding your target market is the foundational pillar for successful travel agency and tour operations management. The target market represents the specific group of people who are most likely to be interested in and benefit from the tours and experiences your business offers.

Defining your target market

The first step in understanding your target market is to clearly define the characteristics of your ideal customers. This involves considering various aspects of your potential clients, such as:

• Demographics
• Interests and Hobbies
• Preferences and Expectations
• Pain Points and Needs

Conducting market research

Market research is an essential tool to gain valuable insights into the industry, target market, and your competitors. It helps you make informed decisions and develop effective business strategies. Consider the following steps when conducting market research:

• Industry Analysis: Study the tour and travel industry, both at the local and global levels. Identify trends, opportunities, and challenges that could impact your business.
• Target Market Analysis: Use surveys, focus groups, or online research to gather data about your potential customers. Analyze the collected data to gain a deeper understanding of their preferences and behaviors.
• Competitor Analysis: Identify your main competitors and analyze their strengths, weaknesses, pricing strategies, marketing efforts, and customer reviews. This analysis will help you position your business effectively in the market.
• Demand Analysis: Assess the demand for tours and experiences in your chosen location(s). Understanding the demand patterns and seasonal variations will help you plan and optimize your offerings throughout the year.

Communicating to your target market

Crafting effective marketing messages is crucial for reaching and engaging your target audience. Consider the following tips when communicating with your potential customers:

• Tailor your Message: Use the insights from your target market analysis to customize your marketing messages. Address their specific interests and pain points, showcasing how your tours can fulfill their needs and desires.
• Use the Right Channels: Identify the most effective marketing channels to reach your target market. This might include social media, email newsletters, travel websites, or collaboration with local businesses.
• Highlight Unique Selling Points: Emphasize what sets your tours apart from others in the market. Whether it’s exclusive experiences, expert guides, or sustainable practices, highlight the unique selling points that will resonate with your target audience.
• Build Trust: Establish trust with your potential customers through transparent communication and genuine customer reviews. Trust is crucial in the tour business, where people entrust you with their travel experiences and memories.

3. Value proposition

Your value proposition is the essence of your tour business—it is the unique combination of benefits and experiences that sets you apart from competitors and persuades customers to choose your tours over others. Developing a compelling value proposition is crucial for managing tour operations, capturing the attention and interest of potential customers, ultimately driving bookings and building brand loyalty.

What makes your tours unique?

To create an impactful value proposition that aligns with your travel and tour operations management, it’s essential to identify and highlight the key features and experiences that make your tours truly stand out. Consider the following aspects:

• Exclusive Experiences: Showcase any exclusive or hard-to-access experiences that your tours offer. Whether it’s access to private locations, behind-the-scenes tours, or unique encounters with local cultures and wildlife, emphasize the extraordinary moments your customers can enjoy.
• Expert Guides: If your tours are led by knowledgeable and passionate guides, highlight their expertise and how they enhance the overall experience. Having guides who can share fascinating insights and create a personalized journey for each customer adds significant value to your tours.
• Tailored Itineraries: Emphasize the flexibility and customization options available in your tours. Whether you cater to specific interests, age groups, or travel preferences, communicating that your tours are designed to suit individual needs will resonate with potential customers.
• Sustainable Practices: If your tours prioritize sustainability and eco-friendly practices, make sure to highlight this aspect. Many travelers today seek responsible and environmentally conscious tour options, so showcasing your commitment to sustainability can be a powerful selling point.

Communicating your value proposition

Effectively communicating your value proposition is essential to attract and engage potential customers. Use clear and concise language that highlights the unique aspects of your tours. Consider the following communication strategies:

• Compelling Website Content: Ensure that your website clearly communicates your value proposition on the homepage and throughout key pages. Use engaging visuals and captivating copy to illustrate what makes your tours special.
• Engaging Social Media Presence: Leverage social media platforms to showcase the unique experiences your tours offer. Use images, videos, and customer testimonials to create an emotional connection with your audience.
• Captivating Marketing Collaterals: Design marketing materials, such as brochures and flyers, that effectively convey your value proposition. Include the most compelling features and experiences to entice potential customers.
• Personalized Email Campaigns: Segment your email lists and send personalized messages to different customer groups, highlighting the aspects of your tours that align with their interests and preferences.

Highlighting the benefits of your tours

Apart from showcasing the unique features, it’s equally important to highlight the benefits that customers will gain from choosing your tours. Benefits appeal to customers’ desires and needs, making them more likely to take action and book with your business. Some benefits to emphasize include:

• Unforgettable Memories
• Stress-Free Planning
• Cultural Immersion
• Time Optimization
• Group Bonding

4. Marketing plan

A well-defined marketing strategy is essential for promoting your tour business effectively and reaching your target market.

Setting marketing goals

Before implementing any marketing initiatives, it’s crucial to set clear and specific marketing goals. These goals will serve as the foundation for your entire marketing strategy and will help you measure the success of your efforts. When setting marketing goals, consider the SMART criteria: Specific, Measurable, Achievable, Relevant, Time-Bound.

Marketing channels

Selecting the right marketing channels is critical for effectively reaching and engaging your target audience. Different channels cater to different customer segments and offer unique ways to showcase your tours. Consider the following marketing channels:

• Website and SEO
• Social Media
• Email Marketing
• Content Marketing
• Paid Advertising
• Partnerships and Affiliates

Pro tip: Your website is your primary marketing channel. To boost user experience, consider incorporating live booking availability .

Marketing budget and ROI

Allocating a budget for marketing is essential to ensure that your strategies can be executed effectively. Consider your marketing goals, target audience, and the channels you plan to use when setting your marketing budget. It’s essential to regularly monitor and analyze the performance of your marketing efforts to calculate the return on investment (ROI).

Evaluate the success of each marketing campaign and channel by tracking key performance indicators (KPIs) like conversion rates, cost per acquisition, and revenue generated. Analyzing ROI allows you to identify which marketing strategies are most effective and make data-driven decisions for future marketing allocations.

5. Customer service

Exceptional customer service is the cornerstone of a successful tour business.

Providing excellent customer service

Delivering excellent customer service starts with understanding and anticipating the needs and expectations of your customers. Train your staff to be friendly, attentive, and knowledgeable about your tours and destinations.

You can also use AI in tour management to further enhance your customer experience.

Responding to customers

Prompt and effective responsiveness to customer inquiries, feedback, and concerns is crucial for building trust and loyalty. Establish clear guidelines for responding to customer communications across different channels:

• Phone Calls
• Post-Tour Follow-Up

Pro tip: To save time and ensure a consistent customer experience, you may want to start automating communications .

Collecting feedback

Customer feedback is invaluable for improving your tour business and understanding how to better meet the needs of your customers. Implement a feedback collection system that allows customers to share their thoughts and experiences with your tours. This may take the form of online surveys, encouraging customers to leave reviews and testimonials, or monitoring social media channels for mentions of your tour business.

6. Staffing

The success of your tour business heavily relies on the competence, enthusiasm, and professionalism of your staff.

Recruiting staff

Recruiting the right staff members is the first step toward building a dedicated and capable team. When hiring and training tour guides , customer service representatives, drivers, and other roles, consider the following tips:

• Job Descriptions: Create clear and comprehensive job descriptions that outline the responsibilities and qualifications required for each role. Specify any necessary certifications, language skills, or experience needed for tour guides.
• Cultural Fit: Look for candidates who align with your company’s values and customer-centric approach. Cultural fit ensures that employees share your passion for providing exceptional service and representing your business positively.
• Industry Experience: Prioritize candidates with relevant industry experience, especially for tour guides who should possess in-depth knowledge of the destinations and activities you offer.
• Customer Service Skills: Emphasize the importance of strong customer service skills during the interview process. Your staff should be friendly, approachable, and adept at handling customer inquiries and concerns.

Training staff

Comprehensive training is essential to equip your staff with the knowledge and skills they need to excel in their roles. Provide a thorough orientation that introduces new hires to your company’s mission, values, and policies. Familiarize them with your tour offerings and the destinations they will be guiding.

For tour guides, conduct in-depth training on the itineraries, historical facts, safety protocols, and any unique aspects of each tour.

Managing staff

Effective management plays a crucial role in maintaining staff motivation, engagement, and performance. Consider the following management strategies:

• Maintain open and transparent communication with your staff.
• Conduct regular performance evaluations to provide constructive feedback, set goals, and identify areas for improvement.
• Implement a system of incentives and recognition for outstanding performance, such as utilizing Awards.com for custom trophies and awards to acknowledge and celebrate achievements.
• Organize team-building activities to foster camaraderie and collaboration among your staff.
• When issues arise, address them promptly and professionally. Provide support and resources to help your staff overcome challenges.
• Promote a healthy work-life balance.

7. Financial management

Effective financial management is crucial for the long-term sustainability and success of your tour business.

Creating a comprehensive budget is the foundation of sound financial management. A well-structured budget allows you to plan and allocate resources wisely. Consider the following steps when developing your budget:

• Revenue Projections
• Fixed and Variable Costs
• Contingency Funds
• Marketing Budget
• Investment and Expansion
• Regular Reviews

Tracking expenses

Accurate expense tracking is essential to understand where your money is going and identify areas where you can optimize costs. Prioritize record-keeping so you can maintain organized and detailed records of all financial transactions, including receipts, invoices and payroll documentation. Categorize expenses into different groups (e.g., marketing, payroll, maintenance) to easily analyze and identify spending patterns. To further streamline your financial processes, consider implementing the practice of creating a pay stub for efficient payroll management, enhancing overall record-keeping efficiency.

Staying profitable

Maintaining profitability is vital for the sustainability of your tour business. Here are some strategies to enhance profitability:

• Pricing Strategy: Review your pricing regularly to ensure it covers all costs while remaining competitive in the market.
• Upselling and Cross-Selling: Offer additional services or upgrades to customers during the booking process or on tour to increase revenue per customer.
• Cost Optimization: Continuously look for ways to optimize costs without compromising the quality of your tours.
• Repeat Business and Referrals: Focus on providing exceptional customer experiences to encourage repeat bookings and word-of-mouth referrals, which are more cost-effective than acquiring new customers.
• Analyze Profit Margins: Regularly review your profit margins for different tours and destinations.
• Financial Performance Metrics: Track key financial metrics such as gross profit, net profit, and profit margins to assess the overall health of your business.

8. Risk management

Strong risk management is critical for safeguarding your tour business from potential threats and uncertainties.

Identifying and assessing risk

The first step in risk management is to identify potential risks that could affect your tour business. Risks can arise from various sources, including external factors such as weather conditions, natural disasters, political instability, and economic fluctuations. Internal risks may involve operational issues, employee-related challenges, and financial uncertainties.

Risk mitigation

Once risks are identified and assessed, it’s essential to develop strategies to mitigate their potential impact. Risk mitigation involves taking proactive measures to reduce the likelihood of risk occurrence and minimize its consequences.

Contingency plans

Despite meticulous planning and risk mitigation, unforeseen events can still occur. Having contingency plans in place ensures that you are prepared to respond swiftly and effectively to unexpected situations.

9. Legal compliance

Adhering to laws and regulations is vital for operating a tour business ethically, responsibly, and without legal complications.

Understanding laws and regulations around tours

The tour and travel industry is subject to various laws and regulations at local, regional, and national levels. As a tour operator, you must be well-informed about these regulations to ensure compliance. Some key areas to consider include:

• Licensing and Permits
• Safety Standards and Guidelines
• Environmental Regulations
• Employment Laws
• Data Protection and Privacy
• Accessibility
• Insurance Requirements

Should you consider a legal team?

Navigating the complexities of legal compliance in the tour industry can be challenging, especially for small businesses. Hiring or consulting with a legal team or a qualified attorney specializing in the tour and travel sector can be beneficial.

If budget constraints are a concern, consider seeking legal advice through legal clinics, industry associations, or networking with other tour operators who may share insights and experiences related to legal compliance.

10. Reporting and analytics

Reporting and analytics play a crucial role in the success of your tour business.

Tracking tour performance

Tracking tour performance involves monitoring key performance indicators (KPIs) and metrics that provide an understanding of how your tours are performing. Some essential KPIs to track include:

• Booking and Sales Metrics
• Customer Satisfaction
• Capacity Utilization
• Customer Demographics
• Customer Retention

Pro tip: With Rezdy, you can use your tour booking software to analyze the above data with reporting and analytics .

Analyzing marketing data

Effective marketing data analysis helps you assess the performance of your marketing efforts and identify which strategies are driving the most success. Key marketing data to analyze includes:

• Use tools like Google Analytics to track website traffic, user behavior, and conversion rates
• Monitor engagement metrics on social media platforms, such as likes, comments, shares, and click-through rates.
• Analyze email open rates, click-through rates, and conversion rates to evaluate the effectiveness of your email marketing campaigns.
• Calculate the ROI for your marketing campaigns to determine which initiatives are delivering the highest return and adjust your marketing budget accordingly.
• Conduct A/B testing to compare different marketing strategies or messaging and identify which variations are most effective.

Acting on insights

Collecting and analyzing data is only valuable if you act on the insights gained. Use the information gathered from tour performance and marketing data analysis to make informed business decisions.

11. Summary

Remember, running a tour or activity business is not only about delivering memorable experiences but also about maintaining a strong foundation of effective management and strategies. With the right combination of passion, dedication, and sound business practices, tour operators can thrive in this exciting and rewarding industry.

At Rezdy, we understand the challenges and opportunities that tour operators face in the dynamic and competitive travel industry. Our robust tour management platform is designed to streamline your operations, optimize bookings, and enhance customer experiences. With Rezdy, you can effortlessly manage your inventory, automate bookings, and gain valuable insights from our comprehensive reporting and analytics tools.

Ready to take your tour business to new heights? Sign up for a free 21-day trial today and discover how Rezdy can transform your business.

Start your FREE trial today!

No obligations, no commitment, no credit card required.

Just 21 days of full account access to check we are a good fit for your business.

Free Tour Operator Business Plan Template

Free Download this Tour Operator Business Plan Template Design in Word, Google Docs, Apple Pages Format. Easily Editable, Printable, Downloadable.

A tour operating service based firm would need a strategically-made business plan that will help lead it to financial stability and success. Consider creating a plan through this Tour Operator Business Plan Template. You can utilize this well-made business plan to make sure that your tour operating business is aimed towards achieving its envisioned goals in the industry. This business plan comes with suggestive content you can easily customize to your needs. An unapologetically-made business plan that you can view and edit in your computer, laptop, tablet & even smartphone. Download this Tour Operator Business Plan and map your direction towards success!

No  template.net  attribution required

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