Do you want to start an adventure tourism business? If yes, you have landed at the right place.
Adventure tourism generally takes place in strange, exotic locations where thrill-seeking travelers always expect unexpected happenings. There are two ways one can start the business by buying a franchise of an established brand or you can start your own. Here we will cover the steps to build your own adventure tourism business from scratch.
Adventure tourism business includes different varieties of events like Rock climbing, Surfing, Wakeboarding, White water rafting, Windsurfing, Mountain cycling, Paragliding, etc. the target audience is normally male and female clients in the age group of 18-40.
Adventure Tourism Business Plan Guide for Beginners
Here are the 10 steps to start a profitable adventure tourism company:
1. Understand the Market
Before starting any business, it is extremely important to understand the trends and demands of the targeted customers. It holds true for adventure tourism ventures too.
Do market research and gather as much as possible. Talk to existing adventure tour companies and customers and locate the gaps. It would be easier than to plan your services exploring the gaps and provide the customers exactly what they want.
2. Choose a Specific Niche in Adventure Tourism Industry
Adventure tourism is fast becoming a broad industry sector. As a beginner, it is advised to target a specific category of adventure tour service. The location and tourist destinations generally should be the factors to consider while choosing the niche.
Below we list down some of the popular examples of adventure tourism businesses:
- Adventure club
- A travel Agency focused on varieties of adventure tour activities
- Cruise ship tour planner
- Bed and Breakfast
- Conduct extreme adventure tours
- Rent a Motorcycle for Bikers
- Arrange Kayak Tours
3. Create an Adventure Tourism Business Plan
Before starting an adventure tourism business create a detailed business plan. Determine what types of adventure tourism you will be going to offer. According to that choose locations. As per your geographical location, you will need to choose the adventure tourism category. Calculate your start-up budget with promotional expenses. Below is the must-include chapters of your adventure tourism business plan:
- Startup and recurring costs for your adventure travel company.
- Tour Target Customers.
- Travel Packages and their Prices.
- How and where you plan to sell your tour packages?
4. Register Your Adventure Travel Business
If you are looking forward to running a hassle-free legally compliant adventure tourism company, registration of the business is a must. Every country and state offers different legal company formation structures. Choose the one that fits you best based on your budget and sale of operation.
For example, in the United States, the three most popular business structures for small businesses are sole proprietorship, partnership, and limited liability company(LLC). Most small business owners prefer LLC as it protects the owner’s personal assets if the company is financially sued.
You can form an LLC directly paying required states and other fees or hire a professional LLC formation service provider paying some extra charges.
5. Get Licenses & Permits
You need specific licenses and permits to operate an adventure tour agency business. It is advised to talk to a local attorney or concerned appropriate authority and procure the required licenses.
In an adventure tourism business, you will need to have proper business insurance. For any kind of injury and loss, you can protect your business by having insurance only.
6. Select a Business Name
A proper catchy business name is important to build a brand personality in the trade. It also helps in reaching more customers as they relate to the tourism services you are offering in tune with their needs.
7. Build an Office Setup
It is expected that a lot of tourists would prefer to meet you in person. So, it is essential to set up your adventure travel agency be it home-based or from a rented office. Design your office space so that customers feel comfortable communicating with you.
It is a good idea to showcase your upcoming adventure tour events on the walls of the office. The interior setup must provide confidence to tourists that they are in the right place.
Other than computers, and phones you must have accounting software and POS software so that customers can pay easily.
Every adventure tourism activity requires a special need for protective clothing and equipment. Based on the tour niche, buy some equipment needed for carrying out the adventure tour.
8. Hire Skilled Manpower
To run a successful adventure travel business, you need smart personnel with good appearance and communication skills. As a matter of fact, in a travel agency business, it is your staff who are the brand ambassadors of your company. Have an exhaustive hiring plan and be extremely selective in recruiting staff for your business.
9. Fix Tour Packages & Pricing
The interests of adventure-loving travelers are wide and varied. You need to create different types of travel packages for fulfilling the needs of different types of tourists. Some popular adventure travel packages provided by reputed travel companies are listed below:
- Adult adventure trips
- Family adventure trips
- Customized adventure tour
- Motorcycle adventure trips
- Solo travel packages
- Women-only Adventure trips
- Small ship cruises
Check out the pricing structures of competitors providing similar services. If you are providing some unique facilities that none are offering, go for value-based pricing. Else, it is better to go for cost-plus pricing if almost similar tour packages are offered.
10. Tips to Promote your Adventure Tour Agency Business
Having a clearly articulated marketing plan is essential to run a profitable adventure travel company. Give special attention to making marketing collateral like brochures business cards etc. Start promotion locally and publish some advertisements in travel magazines. Here is a list of promotional ideas to reach your target customers.
- Create a Website/ Blog.
- Be on Social media platforms like Instagram, Facebook, and Twitter.
- Consider buying travel booking software.
- Create a brand personality in the industry by attending travel fairs and join local travel clubs and associations.
Words of caution: Adventure tourism is without saying a business with high-profit potential. However, prepare for the worst-case scenario too. There are several factors both micro and macro that influence the travel business in general. It can be endemic or pandemic, forest fire, weather conditions, government policies, and many more. Always try to have a back plan to run a sustainable adventure tourism business.
About the Author: 99businessideas.com led by Rupak Chakrabarty is committed to helping beginners, entrepreneurs, and small business owners in starting, managing, and growing their business. Our aim is to educate the entrepreneur on the various stages of entrepreneurship.