Business Idea

Start A Tour Company

About

Starting a tour company requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell tour service, or selling tour service online, you can use this page as a guide for everything you'll need to know.

Want to learn more? You can check out our full guide on how to start a tour company ➜

Key stats

market size
$540B
revenue (monthly)
$5.84M
starting costs
$196K
gross margin
90%
time to build
9 months
growth
SEO
business model
Software
time investment
Side project

About

Starting a tour company requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell tour service, or selling tour service online, you can use this page as a guide for everything you'll need to know.

Want to learn more? You can check out our full guide on how to start a tour company ➜

Key stats

market size
$540B
revenue (monthly)
$5.84M
starting costs
$196K
gross margin
90%

 

time to build
9 months
growth
SEO
business model
Software
time investment
Side project

Startup Costs

Min Startup Costs Max Startup Costs
Employee & Freelancer Expenses $0 $5,000
Equipment & Supply Expenses $500 $5,000
Website Costs $232 $6,425
Business Formation Fees $600 $4,700
Vehicle Expenses $0 $10,000
Retail Business Expenses $1,250 $6,650
Advertising & Marketing Costs $75 $3,986
Software Expenses $162 $2,720
Other Expenses $0 $800
Office Space Expenses $10 $100
Specific Industry Expenses $0 $500

Successful Businesses

Business URL Rank
Tour Factory tourfactory.com #87,469
Rayna Tours raynatours.com #115,993
Best Virtual Tour Software panoskin.com #143,872
On The Go Tours onthegotours.com #227,823
Go Ahead Tours goaheadtours.com #231,988
The Wildland Trekking Company wildlandtrekking.com #266,484
Abercrombie & Kent abercrombiekent.com #290,756
Sitotravel sitotravel.com #357,330
Young Pioneer Tours youngpioneertours.com #375,438
Alaska Tours alaskatours.com #379,807
Travel Agents & Tour Operators for Nordics & Northern Europe : Nordic Visitor nordicvisitor.com #384,786

Pros & Cons

Pros Description
Little startup costs required The cost to start a tour company costs significantly less money than most businesses, ranging anywhere from 2,829 to 45,881.
Rewarding work Starting a tour company can be really rewarding work. After all, you are solving an immediate issue for your customer and you're working on something you truly care about.
High customer retention rates Once a customer invests in your product, they've invested their time and energy to utilize your product/service which is highly valuable to them. Typically, your product or service becomes indispensable to your customer.
Pick & choose the clients you work with Tour Companyes have the ability to choose the clients they work with. You have the freedom to work with only a few loyal clients or with hundreds of clients!
Control of workload With starting a tour company, you have the unique ability to choose how little or how much you want to work. You also have the freedom to decide which projects you want to work on, and can turn down the ones that do not interest you.
Gain exposure and experience This career allows you to gain experience working for multiple different businesses - which will benefit your resume and also keep things interesting for you!
Cons Description
Motivation of employees If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.
Longer Sales Process A tour company can be a big time and money investment for your customer, so it's important you plan and predict a longer conversion funnel and stay in communication with potential customers.
Work can be inconsistent As a tour company, the amount of work assigned to you and schedule tends to be more inconsistent, which may make your income less stable. It's important to set boundaries and budget accordingly based on the amount of work you plan to have.
Lack of benefits With a tour company, you are typically self-employed and responsible for finding your own insurance, which can be quite costly and time-consuming.
Taxes As a tour company, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it.
No safety net Typically, as a tour company, you do not receive a consistent pay-check and instead earn money based on your transactions each month. During the slow periods, you typically take away less since the job is based on commission. It's important to budget accordingly for the slow times.

Marketing Ideas

  • 1

    Direct sales

    You may find yourself in a spot where you're ready to hire a few (or many) salespeople to support the sales conversion process.

    Regardless if you have one or thirty salespeople, it's critical that you assign them specific roles and responsibilities to nurture the client and provide excellent support.

  • 2

    Word of mouth

    Word of mouth is when a consumers reflects their interest in a company’s product or service in their daily dialogues.

    Therefore, word of mouth advertising is essentially a free advertising triggered by the customers experience.

    According to Nielsen, 92% of people trust recommendations from friends and family.

    Therefore, in today’s hyper-connected world, a single recommendation through a word of mouth can have a huge impact to your business.

  • 3

    Advertising on social media

    Social media advertising is one of the leading ways to get the word out when it comes to tour company.

    There are various different Social Media platforms available to you. Some may be more critical for your marketing efforts than others, however, it's important to have an understanding of what's out there and available to you.

    Learn more about advertising on social media ➜