Are you fond of traveling and going on trips frequently? If so, then you can start a travel business to earn profits with pleasure. Open your travel company and get the business going.
As a tour operator, your travel business is supposed to take care of your customers’ requirements and necessities while on tour. This includes booking air tickets, hotels, local tours, conveyance, etc. The more efficiently you perform, the more business you will get.
You have to take care of different kinds of emergencies in your hotel business. These include sudden illness of your clients, accidents, car breakdowns, etc.
The travel business is showing signs of progress and profitability. According to Statista, in the USA, the Travel & Tourism market revenue is anticipated to reach $175.40bn in 2022. Not only that, it is expected to grow approximately 4.74% annually, making the revenue reach $211.10bn by 2026. Hence, you have a good future in the travel business.
12 Steps to Start Your Travel Business
1. Know the Market
Before starting your travel business, know the market in detail. Focus your attention on different kinds of tours both national and international, age-group of majority travelers, requirements of travelers according to the age group, long and short trips, weekend trips, etc. Not only that but also learn about the money spent by travelers on different kinds of trips and the off-beat locations and eco-tourism spots nearby, occupancy rates of different hotels and resorts in different seasons, etc.
2. Location and Niche
These two points are very important for your travel business. Choosing a location that is conveniently connected to several tourist destinations will help you grow your business. However, you can also choose your native place for certain logistical advantages.
Choosing the niche is another important factor for your travel business. You can choose niches like international tours, short trips, honeymoon trips, mountain trips, treks, and so on. On the other hand, you can keep several options open for a greater number of clients. The choice is yours. However, if you decide to choose a niche, gather enough information about it so that you can offer a pleasant experience to your clients.
3. Business Plan
The next important step for your travel business is writing the business plan. Write down the details of your upcoming travel company and discuss the different points with clarity. Your aspirations, expectations from the business, and projections should be clear and honest in the business plan. It should have
- Industry Overview
- Your Mission and Vision
- Area and Niche
- Office and Manpower
- Operation Plan
- Expense Heads
- Funds Required
- Marketing Plan
- Expected Profit
4. Name Your Business
Choose a good name for your travel business. It can be a direct or an indirect name. However, the name should be meaningful and pleasant to hear. Don’t limit the name by mentioning any area or region in the name. Rather, think of a name that means traveling or moving around.
Book the domain in the name of your travel company for launching your website. In case the domain is not available, choose another name.
5. Registration of Business
Register your travel business as a specific business identity like Sole Proprietorship, Partnership, LLC, C Corp or S Corp. Go for the type of business that suits you and is convenient for you.
6. Tax Registration
Register your travel business for the taxes that apply to it both at the Federal as well as State levels. Apply to get the EIN and complete all other legal formalities.
7. Licenses and Permits
Your travel business will require several licenses and permits at the Federal and State levels. Get to know about these and obtain them at the earliest for a hassle-free business.
8. Open a Business Bank Account
Open a bank account in the name of your travel business to keep the accounting organized and up to date. Also, get a business credit card for your business.
9. Buy Insurance
Insurance is necessary for the safety and protection of your travel business. General Liability Insurance and Worker’s Compensation Insurance are some of the insurances that you will need. If you own vehicles, then you have to insure them also.
10. Office and Manpower
Today, most of the travel business is done online. You can purchase tickets online, book hotels, resorts, or cars, etc. However, you will need an office for some core activities like accounting, billing, and even doing online bookings. That is why having an office is necessary. If you have space at home, you can start your office there also.
You will need furniture like tables, chairs, desks, etc, and computers with an internet connection, printers, notice boards, etc. Decorate your office space with good pictures and posters of different tourist destinations.
Among the manpower, you will need an accountant, a reservation assistant, an office assistant, and marketing personnel. If you wish to have a car(s), you will need a chauffeur.
11. Arrange Fund
You can invest money from savings and investments. Otherwise, bank loans, grants, crowdfunding, or loans from family and friends can also fetch you the required funds.
12. Have a Marketing Plan
Your travel business must follow a well-thought-out marketing plan to get good business. Since most of this business is operated online, you have to emphasize online marketing strategies.
a) Create a Website
Your website is a marketing and publicity forum for your travel business. Make an attractive and resourceful website. Give details of the trips organized by your company, along with forthcoming trips and their booking links. Narrate all the details of the facilities offered by you along with their prices. Give good pictures and interviews of satisfied travelers.
b) Social Media
Create pages in the name of your travel business on social media handles along with the details of tour programs. Update the pages regularly and give new photographs of different picturesque locations.
Give paid ads on social media to get the attention of many followers.
c) Social Media Influencers
Take the service of social media influencers to write about your travel business for its marketing and publicity. Sponsor a couple of trips for the influencer so that he/she can write a first-hand review.
d) List your Business
Enlist the name of your travel business in different digital directories, yellow pages, and online travel magazines so that more people get to know about your travel company.
e) Maintain a Blog
Write blogs on your travel business describing the different tour programs supervised by your company. Give good pictures and describe the places with details of their specialties.
f) YouTube Channel
Start a YouTube channel on your travel business. Show the videos of tour programs and the services you offer to your clients. Share the link on your website and social media pages to get more viewers.
g) Ads, Posters, Banners
Give ads for your travel business in newspapers, radio, TV, and magazines. Print posters, banners, hoardings and glow signs of your company and use them at strategic locations. In addition, create a catchy logo for your travel company.
i) Personal Visits
Visit different offices, schools, and colleges and meet people. Print good brochures and distribute them for publicity and group bookings. Participate in travel exhibitions and seminars to meet people and make publicity for your travel business.
j) E-mail Marketing
Send publicity e-mails to strategic and prospective contacts. You can get business through e-mail marketing also.
Frequently Asked Questions
Is Travel Business Profitable?
The travel business is profitable and promising. You get paid for organizing a trip, you get commissions on hotel bookings, car bookings, ticket bookings, and all other aspects of a travel program. The volume of profit depends on the scale of the business. However, after all your expenses and payment of salaries, taxes, and other charges, you can get a profit of 30-40%. This margin increases as your business gets bigger.
What is the Cost of Starting a Travel Business?
The requirement for money depends on your scale of business. If you want to start your travel business in a personal capacity and small scale, you won’t need high investments. However, with an office and core staff, you will need an investment of $10000to $15000. This will include salaries, rent (if any), licenses and permits charges, insurance premiums, taxes, marketing and publicity costs, etc.
Once you start getting payments from the tours managed by you, you won’t need to pump money from your end into the business. With an increasing number of clients and travel programs, you will be getting payments, a part of which is received in advance.
Traveling is fun and refreshing for most of us. You can earn your share of the profit by organizing the fun and refreshment through your travel business.
Editorial Team at 99BusinessIdeas is a team of experts led by Rupak Chakrabarty with over 25 years of experience in starting and running small businesses. Started in 2010, 99BusinessIdeas is now one of the largest free small business resources in the industry.