I had the pleasure of visiting South Africa last year and I was able to visit safari parks as well as many famous landmarks in both Johannesburg & Cape town. I got to know a couple of my tour guides on a personal level and we spoke about the difficulties in succeeding within the tour guide industry specifically in South Africa - we discussed the competition ;eve; & other barriers to entry, however it was still deemed to be a lucrative business opportunity with constant footfall. On a side note you can look at my video just below to see the unique and amazing experience of walking with lions in South Africa. I even had the pleasure of going to New York this year and I also used a travel company to take me through a tour of New York- Philadelphia- Washington DC with a set itinerary from a tour company I found online. I like to leave no stone unturned when I go on holiday.
The tour travel industry offers an incredible blend of adventure and opportunity, especially for those who love to share their enthusiasm for exploration. But what makes this field so lucrative and what does it take to get started? In this post, we’ll dive into the steps, niche options, and challenges involved in starting your own tour travel company. Let’s get ready to transform your wanderlust into wealth!
Travel is a trillion-dollar global industry, and the demand for unique, guided experiences is stronger than ever. Modern travellers are looking for more than sightseeing—they want authentic, immersive experiences that connect them with the culture and people of each destination. This shift creates a massive opportunity for tour companies that can cater to specific interests, from food and wine tours to eco-friendly adventures. Stats from Statista below show the growing travel industry, you may see a slight blip on the stats from 2020 to 2023 due to the pandemic but the upward trends are clear to see.
When creating a tour guide company, identifying and choosing a niche can set you apart in a competitive market. Popular niches include historical tours, which dive into the past of cities, landmarks, and cultures; food and drink tours, where travellers explore local cuisine, breweries, or wineries; and nature and adventure tours, tailored for those seeking outdoor experiences like hiking, kayaking, or wildlife spotting. Some companies focus on cultural immersion tours, offering travellers insights into local customs, festivals, or traditional crafts. There are also special interest tours, such as photography, ghost hunting, or art tours, that cater to specific hobbies and passions. By specialising in a niche, you can create memorable, targeted experiences that attract a loyal audience and differentiate your company. One of the greatest advantages of starting a tour company is the potential for high-profit margins with relatively low start-up costs. Unlike many other businesses, tour companies don’t require a physical storefront or significant inventory. Once you have insurance, licensing, and a solid plan you can start generating revenue. Plus, as your reputation grows word-of-mouth referrals will help you build clientele reducing your need for heavy advertising.
As a travel business you will need to comply with various regulations related to transportation, insurance, and health and safety standards. These requirements can be complex and vary depending on your tour locations. Regularly reviewing these requirements is crucial to staying compliant and maintaining your business’s reputation. I want to get red tape out the way first
Compliance with local laws is essential in the travel industry. In the UK, for example, you’ll need to check the requirements for a Package Travel and Linked Travel Arrangements Regulations license, and if your business includes flights, securing an ATOL (Air Travel Organiser’s Licence) is crucial. Public liability insurance is a must to cover potential risks.
Package Travel and Linked Travel Arrangements Regulations 2018
If your company sells package holidays (for example, a tour that includes accommodation, transport, and activities), you must comply with the Package Travel and Linked Travel Arrangements Regulations 2018. These regulations protect consumers by making your company responsible for the safety and quality of the entire package.
ATOL (Air Travel Organiser’s Licence)
If your tours involve flights, you’ll need to secure an ATOL license through the Civil Aviation Authority (CAA). This license protects customers financially if a business becomes insolvent while clients are traveling, ensuring they can complete their trips or receive refunds. Obtaining an ATOL license requires specific financial credentials, including an application process and payment of licensing fees. Click on the image below for more details of the ATOL.
Building partnerships is a powerful strategy for growing your travel company, especially as you establish yourself in a competitive market. Partnerships not only expand your network but also enhance the overall experience you offer, creating added value for clients. When I was in South Africa, throughout the tour we were taken to specific cultural shops and local tourist spots where the tour guide would collaborate with the local residents.
Form partnerships with local businesses that compliment your tours. Hotels, restaurants, cafes and activity providers can be invaluable allies, offering mutual referral opportunities. For instance if you run a culinary tour, a partnership with local eateries or craft breweries adds authenticity to your offering and encourages cross-promotion. Many clients appreciate these recommendations, and local businesses benefit from increased foot traffic. Here are some tips how you can do this:
1. Hotels and B&Bs
Partnering with hotels and bed and breakfast establishments offers clients a seamless experience by combining accommodations with your tours. You could offer package deals where clients receive a discount on your tour when they book through partnered accommodations.
2. Local Artisans and Shops
Many travellers enjoy taking souvenirs back home, especially items crafted by local artisans. Collaborate with local craftspeople and shops to include a “shopping stop” on your tours, giving travellers a chance to purchase unique items. Not only does this support local businesses, but it also enriches your clients’ experience by connecting them with authentic regional products.
Collaborations with Other Tour Operators
By partnering with established operators, you gain access to their client base and industry insights, allowing you to build credibility while learning about local market trends. Joint ventures, cross-promotions, or even referral agreements can lead to mutual benefits, providing your clients with a broader selection of tours or complementary experiences, such as accommodations or unique excursions. This cooperation not only increases your company's exposure but also enriches the travel experience for your clients, setting your company apart as a trusted local expert with a well-rounded network. For example, if you focus on historical tours, partner with an operator offering outdoor adventure tours to provide your clients with diverse options. Referrals between companies can enhance client retention and broaden each company’s reach.
Viator is usually my go-to when looking for tour experiences but it's important to use different platforms to list your services. These platforms allow tour guides to showcase their expertise and connect with travellers seeking diverse and memorable experiences.
1. Viator – One of the largest platforms for tour guides and operators, allowing them to list tours, activities, and unique experiences to reach travellers worldwide.
2. GetYourGuide – A popular platform for diverse travel experiences where guides can list tours and reach a broad audience, especially in major tourist destinations.
3. ToursByLocals – Connects travellers with local guides who can provide personalized, private tours tailored to client interests and preferences.
4. Withlocals – Focuses on authentic, local experiences, enabling guides to offer immersive activities like cooking classes, walking tours, and cultural insights.
5. Airbnb Experiences – A segment of Airbnb, where guides and experts can offer a range of unique experiences, from hands-on workshops to city tours and outdoor adventures, for travellers looking for something distinctive.
Virtual tour guide platforms are emerging with a model similar to Uber Eats, connecting local guides with travellers worldwide through on-demand, virtual experiences. These platforms allow freelance tour guides to log in, set their availability, and offer unique live tours tailored to clients’ interests. Much like ordering a meal, clients can browse available guides, select experiences based on location or theme, and instantly book a session. This system gives travellers real-time access to local expertise, offering tours that range from architectural walks and cooking classes to cultural storytelling and historical deep dives. By creating an accessible, app-based interface, these platforms empower guides to reach a global audience while providing travellers with immersive, personalised experiences they can enjoy from anywhere. A prime example of this is Airbnb experiences. We Can immediately see the use of tech when it comes to the tour guide industry.
Do you remember Heygo? This project was unfortunately shut down due to metrics changing post covid- "The startup Heygo generated millions of dollars in income for tour guides during a time when their normal business was non-existent." Even though it did not take off as expected, the funding generated showed how much the travel industry was moving towards the tech side of things.
Another quick tip I would like to add is Aligning with tourism boards or popular attractions as this can increase credibility and visibility. Many local tourism boards have programs to support small businesses and may even list your company on their websites, providing an excellent source of organic traffic. Collaboration with tourism boards can also provide access to valuable resources, including marketing support, local insights, and event participation opportunities. If you look at Tourism Tiger blog below by clicking the image they have some useful resources which helps tour operators and tour guides optimise their businesses through social media, optimising your website, exploring niches etc.
Now think ahead, your tour company is up and running, consider branching out into related services to diversify revenue streams and enhance client offerings. Here are a few ideas:
1. Travel Planning and Consultation Services
Many travellers seek expert advice on trip planning, whether or not they want to book an entire tour. Offer consultation services for clients who may want tailored travel advice. This can be a valuable option for independent travellers who want tips on off-the-beaten-path experiences or need logistical help.
2. Digital Tour Products
With the rise of remote work and virtual exploration, digital products such as self-guided audio tours or digital travel guides have grown in popularity. These can be sold on your website as downloads, creating a passive income stream. Virtual tour experiences are also gaining popularity and could attract international clients who aren’t able to travel but want a taste of your region. I highlighted the use of tech earlier and here is another example of the projected shift toward increased app usage within the travel industry.
I want to expand a bit more on technology within the travel industry because it is important that you adapt with current & future trends for your tourism business to stay on top.
Self-guided audio tours are a growing trend in the travel industry, providing a flexible option for travellers who prefer exploring at their own pace. Using GPS technology, these audio tours guide clients through points of interest, offering commentary, historical facts, and storytelling along the way.
How it Works:
• Record high-quality audio narrations for various tour stops, and integrate them with GPS triggers.
• You can offer these as downloadable files on your website or partner with platforms like VoiceMap, PocketGuide, or Detour to reach a broader audience.
• Travelers purchase and download the audio file, allowing them to explore independently while still enjoying your expertise and insights.
Self-guided audio tours provide an on-demand experience, ideal for clients who want a mix of freedom and information.
2. Digital Travel Guides and Itineraries
For travellers looking to plan their own journeys but who may still need some guidance, digital travel guides are invaluable. These guides can include comprehensive itineraries, maps, tips on local dining, must-see sights, transportation options, and insider recommendations.
• Develop PDF guides, e-books, or interactive digital itineraries tailored to different destinations or themes (e.g., a three-day itinerary for a food-focused tour in London or a historic walk through Edinburgh).
• Include high-quality visuals, maps, and tips that enrich the reader’s travel experience.
• Use platforms like Amazon Kindle, Gumroad, or your own website to sell these guides directly to your audience.
Digital travel guides are excellent passive income streams and can serve as marketing tools. Customers may use the guide initially and then decide to book a full tour with your company after experiencing the value of your insights.
3. Corporate Team-Building Events
Team-building tourism is a niche that has grown in demand especially as companies look to enhance team dynamics. Offering corporate team-building activities or retreats can be a lucrative venture. Experiences like city scavenger hunts, outdoor survival skills, or collaborative cultural activities can appeal to companies looking for fresh, unique bonding experiences.
4. Special Event Services
Many tourists plan trips around specific events like festivals, holiday celebrations, or sporting events. Tailor your services to offer “event tours” that focus on particular happenings. For example, creating a custom itinerary around a music festival or an annual parade can attract tourists interested in unique local celebrations.
5. Educational and Youth Group Tours
Educational tours cater to schools, universities, and youth groups that value learning experiences. These tours can focus on themes like history, ecology, or art, providing curated experiences that align with academic objectives. Many schools and universities seek trusted travel operators who can offer safe, enriching trips that complement their curriculum.
6. Travel Merchandise and Souvenirs
Create branded merchandise such as t-shirts, hats, reusable water bottles, or tote bags for clients to remember their experience. You can even partner with local artists to design unique items that reflect your tour themes, giving clients a meaningful memento while adding to your revenue.
These additional services help diversify your offerings, attract a wider audience, and increase profitability. By extending beyond traditional tours, you can build a resilient business model that adapts to shifts in the tourism market.
I mentioned at the beginning of the post that my South African tour guides had experienced difficulties within the industry. I wasn't going to the start the blog post off on the negatives but it is important to highlight the realities of this industry.
A significant challenge is the seasonal nature of the tourism industry, which creates inconsistent income streams. Demand often peaks in summer or around major events and holidays, with quieter months posing a financial challenge. To remain profitable year-round, companies must plan for off-peak periods, perhaps by diversifying offerings or creating seasonal promotions, yet such strategies require careful planning and marketing efforts. Furthermore, building brand awareness and attracting clients in a crowded market can be tough, particularly for new companies with limited reputations. Establishing credibility often relies on reviews, word-of-mouth, and an engaging digital presence, but gaining traction can be slow, and effective marketing campaigns require time and budget.
Beyond these issues, operational logistics present their own set of barriers. Planning tours that account for weather, transportation delays, or last-minute cancellations requires a high level of flexibility and quick problem-solving. Managing client expectations can also be challenging, as travellers expect seamless, well-organised experiences, and any missteps can lead to negative reviews, impacting the company’s reputation. These demands require meticulous attention to detail, strong customer service skills, and, often, a backup plan for each step of the tour. Ultimately, setting up a tour travel company demands a well-rounded approach that balances legal compliance, financial planning, brand-building, and exceptional service, all of which can pose considerable challenges to new entrepreneurs. Let's Tourism gives you a few hints and tips that can help overcome these barriers - tap the picture to have a look.
As part of my usual book recommendations, I’ve found a great resource for those interested in launching their own tour guide business. These reads offer valuable insights and step-by-step guidance to help you turn your passion for travel and storytelling into a successful venture!"
Launching a tour travel company offers an exciting opportunity to turn your passion for exploration into a rewarding business, but it also comes with its share of complexities. From understanding legal requirements and securing permits to carving out a niche and building strong industry partnerships, each step requires dedication and planning. Despite the hurdles, the rewards are immense: the ability to create memorable experiences for travellers, a chance to showcase unique destinations, and the potential for sustainable growth in a thriving industry. By carefully navigating these challenges and continuously refining your services, you can build a tour company that not only attracts a loyal client base but also stands out as a trusted guide in the world of travel.
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