travel and tourism partnership example

How partnering with other travel businesses can help you drive tour bookings

By Rezdy — 24 Apr 2015

agent bookings   distribution   online bookings   partnerships

Like the world around us, the travel industry is incredibly interconnected – and for a good reason. Successful travel businesses capitalize on this fact by forging mutually beneficial partnerships in tourism with other businesses to reach new customers and drive bookings. It might seem contradictory to partner with the ‘competition’, but in actual fact, it’s an incredibly valuable form of marketing that can also be one of the main types of tourism distribution channels .

Here’s why tour operators and activity providers should focus on networking and developing business partnerships with others who are in the industry.

Why are business partnerships important in the travel industry?

Partnerships are important in all industries, but they play a particularly critical role in the tourism industry.

Business partnerships enable you to seek out new customers that you wouldn’t have been able to reach otherwise. They also are a great way to actively support the local economy and other small businesses in the area. A destination in which travel businesses all work together ultimately creates a more tourist-friendly environment. This in turn actively contributes to a thriving tourism scene that is dedicated to enhancing the experience of tourists in the region and attracting more business.

Types of Tourism Partnerships: Examples To Consider

You might be surprised to learn that examples of partnerships in travel and tourism extend far beyond just travel agents. Local strategic partnerships can take almost any form and will ultimately depend on your unique context, personal connections, and business structure.

Here are 7 key travel and tourism partnership examples that every tour and activity business should carefully consider:

Travel agents

Offline agents were the original players in the travel game, making them fantastic travel and tourism partnership examples.

Concierges and retail travel agents used to be the only source of reliable information about a new destination. However, the internet has now changed the industry forever.

Now, concierges and retail agents are used all over the world to help personalize and customize travel itineraries.

By developing mutually-beneficial relationships with concierges and other offline agents, you can ensure that your tours and activities will be recommended to their guests and clients.

They are considered a trusted source of local knowledge, and your bookings will increase when they promote your business.

Online travel agents

When discussing valuable partnerships in the tourism industry examples, it’s impossible to not mention online travel agents. Developing a relationship with online agents, such as Viator or Groupon, is essential when you are a tour and activity operator in the 21st century.

Online travel agents will provide you with the online distribution you need in order to access niche markets, new travelers, and customers you never would have been able to reach prior to the advent of the Internet.

For example, you could design a promotion with the daily deal websites. This promotion would then be targeted to a specific audience that would be interested in booking your services.

It may be an investment to work with these agents and set up your channel management software to support this partnership, but the payoff is worth it when you reach a plethora of potential customers. Online agents to consider working with include online travel agents, daily deal sites, experiential gifting sites, and government tourism sites.

Hotels and hostels

Providing brochures or connecting with hotel concierge agents is a great way to capture last-minute bookings. By doing so, you’ll be able to fill up those vacant spots with a quick turnaround. Hotels are generally interested in partnering with tour companies as it adds value to their guests experience.

Partnerships with hotels and hostels can be both official (such as connecting with a hotel distribution partner ) and informal. A lot of hotels will accept brochures from local tour businesses that they will display to their visitors. Creating a visually-striking brochure is an economical way to improve your marketing efforts. It also puts your business right in front of prospective customers.

Local cafes and restaurants

There are lots of creative ways that tour and activity businesses can partner with local cafes and restaurants. This can include providing coupons and discount codes to travelers or visiting local cafes and restaurants as an advertised component of your tour. Visiting cafes and restaurants can further enhance your tour by providing an authentic experience that showcases local cuisines.

Local businesses

There are numerous kinds of local businesses that tour and activity providers should consider partnering with. Getting out into the local community will inevitably open up new opportunities to partner with small businesses.

Small, independent retailers are a particularly valuable partner for travel businesses offering tours and activities. After all, shopping is an important part of the travel experience. Depending on the tour that you provide, visiting local shops can improve customer satisfaction and help support the area’s economy in the process.

Travel content creators and influencers

In a world that spends an ever-increasing amount of time online, partnering with a social media influencer is particularly valuable for travel businesses as it allows them to showcase their unique selling points to a wide audience. Depending on the influencer, this partnership can simultaneously boost your business’s prestige.

But partnering with travel content creators and influencers offers more than just increasing your visibility. It also provides social media users with a deeper insight into your tour and activity. When managed properly, partnering with influencers can strike intrigue in potential customers as they view the content created by the influencer and envision what it would be like to experience your tour or activity for themselves.

Other tour and activity operators

It may seem counterintuitive to work with other tour and activity operators, but the fact of the matter is, travelers today want to book package deals. It is easier and more convenient to book a package that includes accommodations, meals, and activities for one set price.

By networking with other tour operators whose activities complement yours, you can create a desirable and affordable package for your potential customers. This partnership in tourism helps to reduce your marketing and promotional costs, and also allows you to reach a broader audience.

Someone who is interested in booking an excursion with another activity provider now knows that your company exists and that it offers complementary services that will make their holiday more enjoyable and memorable.

The best business partnerships are mutually beneficial

Travelers today want to be able to instantly book their experiences, as this is both convenient and efficient. By equipping your business with an online booking software that allows customers to self-book at their own pace, you’re leveraging your overall customer experience.

For instance, Rezdy is a travel booking software that actively helps tour and activity businesses maintain valuable business partnerships. Not only will you be able to easily manage all your admin duties from one platform, but most tasks will also now become automated with the help of a booking software like Rezdy.

Through Rezdy, you can invite your travel partners and business connections to resell your tours, excursions, and activities for commission on this unique tour marketplace platform, Rezdy Channel Manager .

Sign up with Rezdy today, and let your business partners know how this booking software will directly benefit them.

If you enjoyed this article – 7 Examples of Partnerships in Tourism and Travel – then make sure to subscribe to the Rezdy newsletter , where you’ll receive up-to-date resources from marketing tools, tour operator tips, business operations advice, and the latest industry news.

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Partnerships Are Essential to Growth in the Travel Industry

Connect Worldwide Contributor

The ability to reach audiences, attract awareness, excite interest, and convert it into action can be a significant challenge—particularly in the age of competition for tourism dollars strengthening around the world.

Today the most successful companies build bridges, and the selection of strategic partners with whom to collaborate is becoming more and more important.

Partnership is usually defined as a voluntary collaborative agreement between two or more parties in which all participants agree to work together to achieve a common purpose or undertake a specific task and to share risks, responsibilities, resources, competencies and benefits. Partnerships are what enable many travel companies to grow . By sharing with others, hotel companies, airlines, cruise lines, destinations and car rental companies can direct resources and capabilities to revenue improvement projects and growth ambitions.

At Connect Worldwide, we believe that meaningful partnerships are the foundation for success. Partnerships are what enable our company and our clients to make continuous improvements. Through these strategic partnerships, we can direct resources and capabilities to generate revenue for our clients.

Connect Worldwide maximizes your destination’s tourism budget by building strategic partnerships and combining marketing efforts into one coherent voice. A like-minded partnership approach to marketing provides greater strength, unity, and leveraged results, which will more effectively market the destination together when compared to individual efforts. We go beyond the traditional partner selection and bring in potential partners from other industries to maximize impact and sustainability.

Connect Worldwide successfully partners with companies such as Choice Hotels , Royal Resorts, Paradores Hoteles, Utell, Las Vegas, Houston, etc. for the development of tourism and hotel revenue and is looking for additional representation partnerships. Recent travel industry partnership examples are Marriott and Cosmopolitan Resort Las Vegas, Pegasus and HP, Southwest and Volaris, Vacation.com and Tauck, Disney and Alamo, United and Air Canada, and British Airways and Iberia.

When two parties leverage their assets, resources, expertise, client base etc. for the mutual benefit of both, partnering results in synergies.  Contact us to learn more.

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Tips For Building A Successful Travel Partner Network For Your Tourism Business

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Developing a travel partner network for your business can help you build great relationships with your community, as well as give you access to a greater potential client base. This can be used to leverage the power of several markets to increase reach and potential revenue.

Of course, doing this requires a great strategy and some careful organization. Here are our tips for building a successful travel partner network for your tourism business.

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Benefits of building a travel partner network.

We see it often with airlines that offer car rental, hotel bookings, or insurance as add-ons. Various helpful and related travel services can be purchased and paid for on one site.

It makes a great value add for the customer making the booking, and the business involved gets their product in front of a large market they would not have previously had access to.

Good news travels fast in the industry, and your travel partners will refer clients to your business once you have earned their trust. Naturally, you will do the same for them. For example, connect with local restaurants in the area who can recommend your tours to tourists who walk in. Or offer up the details of an airport transfer service to clients who book a trip with your company.

Depending on your type of tourism business, your network doesn’t only need to be other companies with a product that can be added onto your own. You can also form partnerships with travel agents to actively promote and sell your tours.

Who Are Your Ideal Partners

This depends on what type of tourism business you operate and what your objectives are for setting up the partnership.

For example, is your goal to use partners for word of mouth marketing, or would you like to devise package options that incorporate different tour providers? Or perhaps you need to find a travel agent who will promote your tours?

When researching who it is you would like to be involved with, consider whether the businesses are ready, willing and able to take on the responsibility. For example, a brand new company may not have the marketing budget to redesign some of their marketing materials to include your brand mark where it is needed.

Similarly, if you regularly take on groups of a substantial size, would your partners be able to accommodate your group of thirty travelers should you send them onto their guest house or restaurant.

Your travel partner network needs to be a good fit for your business, and have values that align with your own.

How To Build A Successful Network

Once you have decided what your objectives are in terms of the relationship you are hoping to establish with your partners, it is time to set them up. Depending on how connected the relationship is going to be, there are a few factors that you should keep in mind, namely:

• It goes without saying that the relationship should be beneficial for all parties involved.
• Discuss everyone’s roles and responsibilities, and put them all down in writing once agreed upon.
• Degree of success should be measured over time.
• Communication lines should always be kept open.

Make The Agreement Attractive For All Involved

In order for the active participation of all parties within your travel partner network to continue, each must see some direct benefits from the relationship. Have a real conversation about the strategy you are going to use to promote each other and discuss the expectations you all have.

You do not want to end up in a position whereby one business is doing all of the legwork while the other sits back and enjoys the benefits. Without adequate reciprocation in terms of the leads generated, you simply end up marketing a business that is not yours when you could be focusing your attention closer to home.

Offer Real-time Online Booking Availability

This is especially important if you are hoping to partner with travel agents. Because they are the middle point between you and their clients, it helps them to set up and secure bookings quicker if they have access to your own real-time availability.

Say they have clients who are interested in participating in one of your tours. It will take the agent a lot longer to get back to their clients to confirm it if they have to email you for availability and pricing, wait for your response, and then relay information than it would be if they have access to instant bookings and availability calendar.

Earning a name for yourself in the local market is one of the best ways to build a solid travel partner network.

By getting to know your neighbors and earning the trust of other business owners in your city or town, you will soon earn a reputation for your tour or travel product as one of the top things to do there. This will have a knock on effect as travel agents begin to recognize your brand and refer their clients to you.

Overall it is also a drawcard if clients and agents alike can book a tour as well as accommodation at a particular location from one tourism business. Dealing with one point of contact leaves less room for error, and helps to reassure them that should something go wrong, things will be handled in a timely manner.

Connect With A Content Creator

Content creators can be influencers , bloggers, photographers, videographers, etc. Talented creators open up the doors for putting the word out about your business or even exchange their services for quality content for your site.

As an example, you could promote a local photographer’s services to your tour group clients as part of a package deal. In exchange for promoting their services, the person could take some high-quality images for your website, making the exchange beneficial for both of you.

Final Thoughts

Remember to measure the success of your partnerships by keeping tabs on key metrics such as website visits that have been directed from your partner's site, sales referrals they send through, agent's figures, etc. You want to make sure that your business is benefitting from the relationship.

Naturally, you also want to know that your client’s needs are being met if you are actively promoting a business within your travel partner network. If the results are not quite up to expectations, you need to make a connection elsewhere.

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Collaboration opportunities exist both within the tourism industry and beyond. | Photo by Adi Goldstein on Unsplash

Rethinking Tourism

January 12, 2021

All Together Now: Innovative Collaboration Ideas and Examples for the Tourism Industry

Staying in business requires being savvy enough to stay one step ahead of everyone else — to anticipate trends and respond immediately to customer needs before anyone else does. Yet working in a silo with the sole goal of staying one step ahead of your competition can mean working against your company’s or destination’s best interests. 

I’ve been thinking a lot about cooperation and collaboration over the last several months. If 2020 has taught me anything, it’s that working together creates fertile ground for solutions that can help address and overcome our individual shortcomings. Tapping into others’ strengths, taking advantage of joint experience and knowledge, and working through challenges beyond an internal team can surface new ideas and position all collaborating partners in a better place than if they’d ventured out alone.

In my research over the last several months, I’ve learned that the cooperative business model is far more resilient than traditional business structures, and they’re far more invested and rooted in local communities’ wellbeing. I spoke to small business owners across a variety of industries who offered advice on collaboration during crises . And, I watched those in the tourism industry, which has its own degree of competitiveness, embrace cooperation in innovative ways and on a much deeper level than ever before. 

This gives me a renewed sense of hope and optimism for the tourism industry. We have a lot of work ahead of us as we rebuild the industry in a more sustainable manner, fold equity and inclusion into every inch of our essence, tackle the climate emergency with a committed sense of urgency, and support communities around the world work toward their sustainable development goals.

None of use can do this work alone. We must embrace a future built on a bedrock of collaboration and cooperation instead of competition. It’s time to think creatively about what that looks like.

Collaborations Through Industry Coalitions

Even before the coronavirus hit, the tourism industry — like all industries — shared ideas and inspiration through association relationships, at conferences, and in workshops. In the past, many of these gatherings have offered inspiration and ideas that individual businesses took back to their offices.

While these gatherings are a great place to meet others in the industry, they haven’t done much to foster true collaboration. On the few occasions where I’ve seen opportunities for true collaboration in order to move the industry ahead as a whole, only a few people and companies have been willing to sacrifice something (time, energy, effort, knowledge, etc.) to benefit the group.

When industry partners intentionally come together with a specific goal, the inertia exists to make real and meaningful changes from within. 

Examples include:

• Tourism Declares a Climate Emergency - This community of nearly 150 (as of time of writing) travel organizations, companies, and professionals have all committed to actively addressing the climate emergency. The community openly shares ideas, tools, resources, and lessons learned as it works together to address a universal challenge.
• Future of Tourism Coalition - This coalition has established concrete guiding principles that signatories agree to use in developing sustainable and responsible travel operations. As stated in the coalition’s FAQs, “our organizations regularly communicate with each other and previously had collaborated bilaterally on specific projects. The difference now is we have all come together with a united voice and intend to capitalize on and combine our unique strengths to further a shared mission.”
• Muda - This Brazilian collective of responsible travel operators works together to promote public policy, hold each other accountable, and work with third parties to fully realize the potential of sustainable tourism practices in the country.

Other ideas for large-scale industry collaborations:

I would love to see a collective developed to help travel companies become Certified B Corporations . These companies balance purpose with profit — an ethos many travel companies believe in — yet the process to become a B Corps is rigorous. That is also why it is important, especially in the tourism industry, which weaves a web throughout every corner of the globe. Florida For Good offers a tentative model for this kind of collaboration.

Collaborations Within Destinations

Whether on a destination-wide scale or with small businesses in a community, there are countless opportunities for collaboration. Travelers choose specific destinations for a myriad of reasons, and it’s important to embrace and showcase that special something in a responsible way that honors local residents and their history, culture, and story.

The focus must be driven by locals — their expectations, wellbeing, and comfort with inviting travelers into their lives and communities. This is why collaborations between tourism boards/DMOs and local community members are so important.

• Bay of Plenty’s The Love of Tourism Plan - The framework laid out by the Bay of Plenty is led by community inclusivity, local partnerships, and shared goals that benefit and respect all local residents while positioning and marketing the destination in a way that attracts the ideal visitor.
• Colorado Tourism and Leave No Trace - A partnership with Colorado Tourism and Leave No Trace ensures that Colorado’s many stewardship partners have the resources and messaging they need to educate travelers about environmental care and protection.
• Indigenous Kokoda Adventures (IKA) and Local Coffee Growers - Hit hard by COVID-19, local communities along the Kokoda Track in Papua New Guinea are working with IKA to package and sell their coffee to a wider audience. IKA is considering expanding its partnership with local growers by opening a local coffee mill.

Other ideas for collaborations within local communities:

For a long time, the tourism industry has existed separate from and alongside destinations’ wider development and community goals. Instead of determining or dictating the value of destinations, tourism can add value by being woven into a community’s existing fabric. Destinations and tour operators should seek out, support, and promote social enterprises and community organizations addressing socio-cultural and environmental challenges.

Travelers are increasingly interested in supporting local businesses and having unique experiences. Helping them learn about locally initiated social impact projects is a powerful way to amplify community initiatives while delivering one-of-a-kind stories about the places people travel.

Collaborations Outside The Industry

Some of the most powerful collaborations have very little to do with the tourism industry directly. It’s also what makes them memorable and interesting. It is in this space that tourism professionals can begin to tap into the expertise and learnings that we aren’t even thinking about but that others have already discovered.

By collaborating with partners beyond the tourism industry, we can take advantage of expanded expertise, bigger markets, and larger budgets. Breaking out of the tourism mold also introduces new ways of thinking and approaching ideas, which can have a ripple effect as we uncover other problems that need solutions .

• Coral Nurture Program - This science-based program works toward reef conservation and preservation by capitalizing on the infrastructure, reach, knowledge, experience, and skills of guides working in Australia’s Great Barrier Reef. And, because tour guides come in contact with thousands of travelers, they’re able to use their experience in the Coral Nurture Program to create awareness about and engage people in conversations about this marine habitat.
• Accor Hotels and Too Good to Go - To address the extensive amount of food waste in the hospitality industry, several Accor Hotels brands have partnered with Too Good to Go , which rescues surplus food and delivers it to local residents at a discounted price.
• Tomorrow’s Air and Airbnb - A virtual Airbnb Experience in partnership with Tomorrow’s Air (a travelers’ collective interested in carbon removal) encourages people to learn about and remove carbon from the atmosphere. The one-hour experience is ideal for armchair travelers, the eco-conscious consumer, students, science lovers, or anyone curious about this forward-thinking climate solution.

Other ideas for collaborations outside the industry:

Apropos to tourism’s tendency to work within a silo, there is a tremendous opportunity for collaboration with other industries. If the tourism industry wants to promote and encourage more responsible and sustainable practices among travelers, it must play an active role in making responsible and sustainable practices become the default way of living for the average person on the average day.

We must break out of the industry silo if we’re going to make meaningful changes across humanity as a whole. Just imagine the opportunities available to the tourism industry if it can find ways to reach casual travelers through innovative collaborations in the automotive, fashion, and publishing industries and beyond.

Sometimes the most creative collaborations are born out of necessity during times of crisis. Prepare for the next crisis now by downloading  Collaboration + Storytelling Solution in Times of Crisis: A Playbook for Content Creators and Tourism Partners .

JoAnna Haugen is an award-winning writer, speaker, consultant, and solutions advocate. She is also the founder of Rooted, a solutions platform at the intersection of sustainability, storytelling, and social impact. Hire her as a consultant or to speak at your next event . Find JoAnna on LinkedIn , and stay inspired by following Rooted on Instagram .

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Fact sheet: 2022 national travel and tourism strategy, office of public affairs.

The 2022 National Travel and Tourism Strategy was released on June 6, 2022, by U.S. Secretary of Commerce Gina M. Raimondo on behalf of the Tourism Policy Council (TPC). The new strategy focuses the full efforts of the federal government to promote the United States as a premier destination grounded in the breadth and diversity of our communities, and to foster a sector that drives economic growth, creates good jobs, and bolsters conservation and sustainability. Drawing on engagement and capabilities from across the federal government, the strategy aims to support broad-based economic growth in travel and tourism across the United States, its territories, and the District of Columbia.

The federal government will work to implement the strategy under the leadership of the TPC and in partnership with the private sector, aiming toward an ambitious five-year goal of increasing American jobs by attracting and welcoming 90 million international visitors, who we estimate will spend $279 billion, annually by 2027.

The new National Travel and Tourism Strategy supports growth and competitiveness for an industry that, prior to the COVID-19 pandemic, generated $1.9 trillion in economic output and supported 9.5 million American jobs. Also, in 2019, nearly 80 million international travelers visited the United States and contributed nearly $240 billion to the U.S. economy, making the United States the global leader in revenue from international travel and tourism. As the top services export for the United States that year, travel and tourism generated a $53.4 billion trade surplus and supported 1 million jobs in the United States.

The strategy follows a four-point approach:

• Promoting the United States as a Travel Destination Goal : Leverage existing programs and assets to promote the United States to international visitors and broaden marketing efforts to encourage visitation to underserved communities.
• Facilitating Travel to and Within the United States Goal : Reduce barriers to trade in travel services and make it safer and more efficient for visitors to enter and travel within the United States.
• Ensuring Diverse, Inclusive, and Accessible Tourism Experiences Goal : Extend the benefits of travel and tourism by supporting the development of diverse tourism products, focusing on under-served communities and populations. Address the financial and workplace needs of travel and tourism businesses, supporting destination communities as they grow their tourism economies. Deliver world-class experiences and customer service at federal lands and waters that showcase the nation’s assets while protecting them for future generations.
• Fostering Resilient and Sustainable Travel and Tourism Goal : Reduce travel and tourism’s contributions to climate change and build a travel and tourism sector that is resilient to natural disasters, public health threats, and the impacts of climate change. Build a sustainable sector that integrates protecting natural resources, supporting the tourism economy, and ensuring equitable development.

Travel and Tourism Fast Facts

• The travel and tourism industry supported 9.5 million American jobs through $1.9 trillion of economic activity in 2019. In fact, 1 in every 20 jobs in the United States was either directly or indirectly supported by travel and tourism. These jobs can be found in industries like lodging, food services, arts, entertainment, recreation, transportation, and education.
• Travel and tourism was the top services export for the United States in 2019, generating a $53.4 billion trade surplus.
• The travel and tourism industry was one of the U.S. business sectors hardest hit by the COVID-19 pandemic and subsequent health and travel restrictions, with travel exports decreasing nearly 65% from 2019 to 2020. 
• The decline in travel and tourism contributed heavily to unemployment; leisure and hospitality lost 8.2 million jobs between February and April 2020 alone, accounting for 37% of the decline in overall nonfarm employment during that time. 
• By 2021, the rollout of vaccines and lifting of international and domestic restrictions allowed travel and tourism to begin its recovery. International arrivals to the United States grew to 22.1 million in 2021, up from 19.2 million in 2020. Spending by international visitors also grew, reaching $81.0 billion, or 34 percent of 2019’s total.

More about the Tourism Policy Council and the 2022 National Travel and Tourism Strategy

Created by Congress and chaired by Secretary Raimondo, the Tourism Policy Council (TPC) is the interagency council charged with coordinating national policies and programs relating to travel and tourism. At the direction of Secretary Raimondo, the TPC created a new five-year strategy to focus U.S. government efforts in support of the travel and tourism sector which has been deeply and disproportionately affected by the COVID-19 pandemic.

Read the full strategy here

UN Tourism | Bringing the world closer

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A United Vision for Nature - 'Nature Positive' Report Marks New Collaborative Era in Travel & Tourism

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• 22 Apr 2024

WTTC, UN Tourism and the Sustainable Hospitality Alliance join forces to support Nature Positive Tourism

The leading players of Travel & Tourism globally have published a landmark joint report setting out their joint plan to help halt and reverse biodiversity loss.

Launched on Earth Day 2024, "Nature Positive Travel & Tourism in Action" is the creation of the high-level 'Nature Positive Tourism Partnership, made up of the World Travel & Tourism Council ( WTTC ), the World Tourism Organization ( UN Tourism ) and the Sustainable Hospitality Alliance ( the Alliance ).

For years, UN Tourism has been at the forefront of integrating tourism into the broader UN biodiversity agenda, including supporting the work of the Secretariat of the Convention on Biological Diversity (CBD)

Developed in collaboration with specialist consultancy ANIMONDIAL, the report is the sector's pledge to support the implementation of the Kunming-Montreal Global Biodiversity Framework (GBF), the UN's Biodiversity Plan.

It presents more than 30 case studies of inspiring and progressive actions from around the world involving large and small businesses, national and local government agencies, civil society groups, and inter-sectoral partnerships.

By offering actionable guidance and insights, this report not only highlights the intrinsic link between biodiversity and tourism's resilience, but also empowers businesses to become stewards of nature.

Historic partnership for nature

Ms. Julia Simpson, WTTC President & CEO , said: "This historic partnership with Travel & Tourism heavyweights is a significant step in our collective journey towards a more sustainable and responsible sector. This report is not merely a publication but a movement towards integrating environmental stewardship into the core of travel experiences. As we celebrate Earth Day, let us heed the call to nurture and protect our destinations. Our sector's reliance on nature, coupled with our expertise in creating inspiring and memorable experiences, means we are ideally placed to be guardians of nature."

Mr. Zurab Pololikashvili, Secretary-General of UN Tourism , said: "For years, UN Tourism has been at the forefront of integrating tourism into the broader UN biodiversity agenda, including supporting the work of the Secretariat of the Convention on Biological Diversity (CBD). This pivotal new collaboration among key global players sets a robust framework for sustainable practices that not only drive significant impact but also exemplify the power of united efforts in conserving biodiversity. This report is a testimony to what we can achieve together for nature's preservation, inspiring a global movement towards more sustainable and resilient tourism."

Mr. Glenn Mandziuk, Sustainable Hotel Alliance CEO , said: "This report is a milestone for Travel and Tourism, representing our commitment as an industry to protect and conserve nature. The Alliance is proud to contribute to and collaborate on this insightful and action-orientated report which will bring tangible change to destinations around the world, supporting biodiversity.  Nature underpins our society, economies and indeed our very existence. The hospitality industry is today a leader amongst industries in its Nature Positive approach and this report signifies how much our industry understands the true value of nature."  

Expert-led coalition

Recognising that the sector has a critical role to play in protecting and conserving biodiversity, the Nature Positive Tourism approach is designed to be a touchstone for actionable change. It focuses on equipping the sector with the tools and insights needed to nurture and protect destinations upon which it depends.

The commitment of the Partnership to work towards "net positive for nature" draws on extensive consultation with experts from business, government, academia and civil society, including the International Union for Conservation of Nature (IUCN) and the World Commission on Protected Areas (WCPA).

The report, which follows the 2022 WTTC report "Nature Positive Travel & Tourism", includes practical frameworks and real-world examples that encourage both travel providers and travellers to embark on journeys that contribute to the conservation of our natural treasures.

Related links

• Download News Release on PDF
• Report “Nature Positive Travel & Tourism”
• UN Tourism Biodiversity
• Sustainable Hospitality Alliance

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Navigating the Travel Industry: Effective Partnership Types to Leverage On

Partnerships are crucial in nearly every industry as they serve as catalysts for success, fostering increased awareness, growing a community, and delivering positive returns on investment.

Let's explore the significance of partnerships in the travel industry and discover various types you can leverage for success.

Why are partnerships important in the travel industry?

Such partnerships provide a unique avenue to tap into previously unreached customer segments. Furthermore, they can offer valuable means of proactively supporting the local economy and small businesses. 

In areas where travel companies join forces, a more tourist-friendly environment emerges, ultimately contributing to a vibrant tourism sector. 

Travel business partnerships are also an excellent avenue for achieving a favourable ROI. Additionally, through a well-structured partnership agreement, both brands can mutually promote each other without incurring financial costs, effectively boosting brand awareness.

Five partnerships within the travel and tourism sector to consider

1. referring each other’s holiday services with travel agents.

Many may not be aware, but travel agents pioneered the travel game, providing excellent examples of travel and tourism partnerships. Today, many still depend on these services to book their upcoming vacations and packages, drawn by the convenience and, at times, the cost-effectiveness they offer.

Travel agents can also refer your tours and activities to their guests and clients, effectively boosting awareness of your business.

2. Increase brand awareness with online travel platforms

When discussing noteworthy partnerships in the tourism sector, it's essential to emphasise the role of online travel platforms. For travel and tourism operators today, establishing connections with online companies like KLOOK is a fundamental step.

Companies like KLOOK, Agoda and Booking provide access to fresh markets, travellers, and customers. For instance, you can collaborate on a tailored promotion on each other's platforms, ensuring it reaches an audience genuinely interested in your services.

3. Display attractive brochures at hotels and hostels

Partnering with hotels and hostels is a great way to increase awareness. They are often keen to partner with tour and travel companies because it enhances the overall guest experience, providing value for their guests.

These collaborations with hotels and hostels can be formal, like connecting with a hotel distribution partner, or informal–distributing brochures, which they display for their guests. That's why you see various brochures of activities or recommendations whenever you stay at a hotel. 

The closer the partnership, the more beneficial it is for your brand. When guests seek recommendations for activities from hoteliers, they can readily suggest your company, demonstrating an effective form of top-of-mind marketing.

4. Offer coupons and discount codes from restaurants and cafes

Tour and activity businesses can explore a variety of creative approaches to collaborate with local cafes and restaurants.

It includes offering coupons and discount codes to travellers and featuring visits to these eateries as an integral part of your packages. You might have seen examples of restaurant recommendations on travel websites promoting an offer or an exclusive price when you purchase a travel package.

Another excellent example of top-of-mind-marketing, incorporating cafe and restaurant recommendations, can elevate the overall tour experience by immersing interested parties in authentic local cuisine, providing them with a genuine taste of the destination–similarly, growing your brand following.

5. Leverage influencers’ content and review for marketing purposes

Collaborating with influencers offers an exceptional opportunity to enhance your brand's visibility significantly. Influencers possess the capability to craft content that specifically highlights your unique selling points, creating tailored narratives that resonate with their dedicated followers. Their reach extends to a diverse group of audiences, tapping into niche markets and broader demographics, enabling your brand to connect with a wider and more engaged community.

When was the last instance you chose a travel destination or booked a holiday without the influence of someone else, perhaps an influencer, who had shared their experiences or insights about it? For many social media users, this serves as a valuable prelude to their online exploration, providing them with the opportunity to encounter your offerings and reviews and evaluations of influencers before trying out themselves.

The takeaway

Travel brand partnerships bring out a level of excitement into your brand's identity. Instead of sticking to routine offerings, you can orchestrate seasonal joint promotions, unique giveaways, and exclusive offers, spurring additional enthusiasm around your brand.

The above are merely a few examples of the partnerships the travel industry can leverage and gain substantial benefits.

If you're a tour and travel brand looking to start a partnership with influencers, don’t hesitate to reach out to Partipost–we can definitely help!

Partnership, tourism

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The development , marketing , and management of destinations have increasingly focused on collaboration and partnership approaches (Wang 2011 ). Wood and Gray ( 1991 ) define collaboration and partnership as an arrangement when a group of autonomous stakeholders of a domain engage in an interactive process, using shared rules, norms, and structures, to act or decide on issues related to the case.

Collaboration and partnership arrangements in the tourism industry , particularly at a destination level, involve a number of stakeholders (both public and private) working interactively on a common issue or problem through a process of exchange of ideas and expertise and pooling of financial and human resources (Jamal and Getz 1995 ). Such activities can be conducted by taking various forms and focusing on different areas. Examples at a destination level may include joint promotion campaigns, participating in co-op programs for trade shows and advertising, organizing familiarization tours for...

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Wang, Y. (2014). Partnership, tourism. In: Jafari, J., Xiao, H. (eds) Encyclopedia of Tourism. Springer, Cham. https://doi.org/10.1007/978-3-319-01669-6_30-1

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The 3 types of travel and tourism organisations

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There are many different types of travel and tourism organisations. From tour operators to airlines, to tourist boards and conservation activists, each organisation is different. However, most travel and tourism organisations can be grouped into one of three categories: private, public or voluntary. In this article I will explain what’s meant by each type of thew types of travel and tourism organisations.

Types of travel and tourism organisations

What is a private travel and tourism organisation, aims of private travel and tourism organisations, tour operators, travel agents, transport organisations and hubs, visitor attractions, accommodation providers, what is a public travel and tourism organisation, aims of public travel and tourism organisations, tourist information centres, tourist boards, local transport organisations, regulatory bodies, government bodies, what is a voluntary travel and tourism organisation, aims of voluntary travelled tourism organisations, pressure groups, types of travel and tourism organisations: to conclude, further reading.

Travel and tourism is big business and there are many different types of travel and tourism organisations. Many argue that the tourism industry is the biggest industry in the world, employing more people than any other industry! There are many different components of tourism , meaning that there are a wide range of organisations that are involved in the operational logistics of tourism management.

The types of travel and tourism organisations can be broadly separated into one of three categories: private, public and voluntary. Below, I will explain what is meant by each type of organisation.

Private travel and tourism organisations

The first, and most common, types of travel and tourism organisations are privately owned. The majority of the travel and tourism industry is made up of private travel and tourism organisations. This includes many of the well-known companies that most of us are familiar with.

A private organisation is one that is owned by an individual person, a group of people or company.

Sometimes private organisations are public limited companies (PLCs). This means that the company is owned by many people who buy shares in the organisation. These shares are sold on the stock market. The price of shares goes up and down depending on the market value of the company.

Private travel and tourism organisations come in all shapes and sizes. Some are small companies, often known as small to medium-sized enterprises (SMEs). Others are large companies, multinational companies and conglomerates.

Staff who work for a private travel and tourism organisation are generally paid a salary. Although travel and tourism salaries are often quite low, especially in developing countries!

These types of travel and tourism organisations have several aims. First and foremost, most private organisations aim to make a profit. Their most dominant motive is making money.

Many private travel and tourism organisations will also aim to increase their market share. This means that the company wants more customers than its competitors.

Private companies will often aim to grow their business and increase their turnover each year. In other words, they want to make more and more money every year.

Increasing revenue can be difficult and complicated. The infographic below gives you some idea of the aspects that need to be considered by a travel and tourism organisation when planning for growth and development.

Image is an important part of being a successful travel and tourism business. Private organisations will often try to portray a good image and/or improve their image. They can do this through taking on social projects , demonstrating a commitment to environmental conservation or through charitable acts.

This is often referred to as corporate social responsibility.

Another way that private travel and tourism organisations can make more money and increase their profit is to diversify the range of products and services that they offer. In other words, the more different products/services that they sell, the more customers that they can potentially attract.

Examples of private travel and tourism organisations

There are many different private types of travel and tourism organisations. In fact, most organisations in the travel and tourism industry are privately owned! Below are some examples:

A tour operator is an organisations who puts together, or builds, a holiday.

There are many tour operators all over the world in all shapes and sizes. You may be familiar with some of the larger brands, such as TUI and Hays Travel.

A travel agent is the person who sells you a holiday. They can also sell individual travel products, such as flights or ancillaries (e.g. insurance, car hire, attraction tickets). There are several different types of travel agents .

Examples of travel agents that you may be familiar with include Cooperative Travel, Crystal Corporate and Virgin Holidays.

Transport is a key component of tourism and there are different methods of transport depending on the holiday.

A hub is a connecting point, where passengers may change transport options. For examples major airports bus station or a railway station.

Examples of major transport operators that you may be familiar with includes British Airways, Virgin Trains and Mega Bus.

Examples of major hubs include London Heathrow Airport, London Waterloo train station and London Victoria bus station.

Do you enjoy learning about travel and tourism? Follow my stories on Instagram for more on tourism theory and everyday travelling fun!

Many, but not all, visitor attractions are private travel and tourism organisations.

The types of visitor attractions vary widely, from theme parks to botanic gardens to historical buildings.

Examples of private visitor attractions that you may have heard of includes Disney Land, Paris, the Pyramids of Giza in Egypt and the Brighton Sea Life Centre.

Most accommodatio providers are privately owned.

There are many different types of accommodations ranging from bed and breakfast to caravans to hotels.

Accommodation providers that you may be familiar with include Hilton Hotel, Travel Lodge and Airbnb. Airbnb is a major player in the tourism industry in recent years- you can learn all about this business (and get a discount off of your first booking!) in this article- what is Airbnb?

Public travel and tourism organisations

Public travel and tourism organisations make up an important part of the travel and tourism industry . Public organisations provide many of the essentials fundamentals that enable the tourism industry to function. These types of travel and tourism organisations are less common than private organisations, but are an important part of the travel and tourism industry.

These types of travel and tourism organisations is an organisation that is owned or funded by the government.

Public organisations can be local organisations, i.e. smaller companies theatre based in specific local areas. Public organisations can also be national organisations, i.e. they operate on a country-wide level.

Public travel and tourism organisations will likely have paid staff as well as volunteers, who are unpaid.

The main aim of these types of travel and tourism organisations is to provide services to the public.

Public organisations are allocated funding by the government. The amount of funding that is allocated to a particular area depends on a number of factors, including a needs assessment and the government budget.

Each year the government will decide where and how to allocate money that is raised largely through taxes. You can learn more about how this is done in the short video clip below.

Public organisations should ensure that the best level of service is maintained. However, public organisations often have limited funds compared to private organisations. Therefore service levels are often lower in public organisations theatre directly comparable with private organisations (i.e. they are the same type of business operating in a similar way).

Unlike private organisations, public travel and tourism organisations are not profit-driven. Whilst many organisations do need to make money to survive, their main focus is not profit, but instead is the level of service. This means that prices can be kept lower for consumers.

Privatisation in travel and tourism Privatisation is a controversial topic within the tourism industry and beyond. Privatisation is the process of selling public organisations to private companies. By selling public organisations, the government can raise money and focus their efforts in alternate areas. However, this means that the government no longer have control over aspects such as pricing and service quality. There are many examples of privatisation in the travel and tourism industry. In the UK, British Airways was improved considerably when privatised- under government control the airline was about to fold. On the other hand, since much of British Rail has been sold to private companies prices have risen significantly and there is a lot of dissatisfaction amongst consumers with regards to service levels.

When public organisations make profit, the intention is that this money is reinvested. The money may be reinvested directly into the same business. Alternatively, the money may be allocated elsewhere within the annual government budget.

Examples of public travel and tourism organisations

Public organisations are some of the most important types of travel and tourism organisations. They are often the backbone of the rest of the industry, without which it could not operate. Below are some examples of public travel and tourism organisations.

A tourist information centre (TCI) is an organisation that provides information to tourists.

Tourist information centres will often be located in tourist areas such as towns and cities and coastal destinations. They are also typically found at airports or major transport hubs.

Tourist information centres often provide free information such as maps, apps, brochures and leaflets about tourism in the area.

A tourist board is an organisation whose responsibility is to provide information about and promote a particular tourist area.

Tourist boards can be regional or national. Their job is to encourage tourism in the are within which they are based.

Tourist boards that you may have heard of in the UK include Visit Britain (the national tourist board), Visit Cornwall and Visit Oxford (regional tourist boards).

There are some visitor attractions theatre publicly owned.

In the UK, we have many museums and exhibitions theatre public organisations. The government subsidises entrance costs at some of the public tourist attractions.

By keeping a tourist attractions as a public organisation it enables protection and preservation of the area and of the attraction itself.It also enables sustainable tourism management by assessing capacity levels and visitor numbers.

Public tourist attractions that you may have heard of include the Natural History Museum in London, the Eiffel Tower in Paris and the Great Wall of China .

Many transport providers are publicly owned.

Buses, trains and airports are often public organisations. Although, as I previously stated, sometimes these are privatised.

By keeping public transport publicly owned it generally enables prices to stay lower, although the service may be inferior to private transport companies, who may choose to investor money into their products and services in anticipation of greater financial outcomes.

A regulatory body is an organisation with the purpose of regulating. These organisations will monitor and assess, imposing requirements and rules as needed. Regulatory bodies set standards and enforce compliance.

Regulatory bodies in the UK include the Bank of England and the Financial Policy Committee.

A government body is a group of people who are given the responsibility of exercising governance. These people are responsible for making decisions and agreeing law.

Government bodies are typically separated into sectors of the economy. Examples include the Department of Agriculture and the Department for Education.

Voluntary travel and tourism organisations

The voluntary sector plays an important role in our society. There are many different types of voluntary organisations, some of which can be defined as tourism-based organisations . Lets learn a little bit more about these types of travel and tourism organisations.

A voluntary travel and tourism organisation is a company that is not profit making. For these types of travel and tourism organisations, any profit that is received is directed back into the business, not into the hands of CEOs or shareholders, as would be the case with a private travel and tourism organisation.

Voluntary travel and tourism organisations are often funded through charitable donations or government grants. Sometimes they operate aspart of a legacy.

Some voluntary organisations charge entrance fees to help with maintenance and running costs of the business.

Voluntary travel and tourism organisations will often rely on unpaid volunteers to operate. There will also usually be some paid staff, although salaries in the charitable sector are typically quite low.

For these types of travel and tourism organisations, the aim of a voluntary travel and tourism organisation is to preserve or protect particular areas of society or natural environments.

This can include environmental protection and conservation, such as a turtle breeding programme in Costa Rica or a volunteer tourism project operating in the Amazon rainforest.

Voluntary travel and tourism organisations may focus on the conservation of buildings, particularly if they are of historical or cultural value . They may also work with tourism stakeholders on landscape designs and features, often to ensure that any new development is in keeping with or does not negatively inflict on the current landscape.

Many voluntary travel and tourism organisations will work to lobby or campaign on particular issues. This will likely include cultural preservation, environmental protection and economic distribution. If there is a proposed development thatchy do not approve of, the voluntary organisation will often campaign against it.

Many voluntary travel and tourism organisations will centre around the concepts of conservation and sustainability.

Examples of voluntary travel and tourism organisations

There are many voluntary travel and tourism organisations around the world. Some examples of these types of travel and tourism organisations include:

Some visitor attractions are non-profit, voluntary travel and tourism organisations. Sometimes these are natural attractions and sometimes these are man-made attractions.

Examples include many National Trust organisations and conservation-based projects, such as elephant rescue programmes in Thailand or maorinebiology research programmes in the Great Barrier Reef, Australia .

Some transport is operated on a voluntary basis. This will often be associated with other charitable projects or as an incentive to encourage visitors to visit particular area.

There are a number of charities that are associated with the travel and tourism industry.

Organisations such as World Wildlife Fund and the International Animal Welfare Charity are directly linked with a number of tourism-based projects and initiatives.

A pressure group is an organisation which campaigns for change.

There are a number of pressure groups that are not tourism-based, but that are related to tourism management, such as Animal Aid and Friends of the Earth.

There are also pressure groups that are solely tourism focussed, such as the Aviation Environment Federation or Tourism Concern (note- Tourism Concern has recently ceased operations).

As you can see, there are many different types of travel and tourism organisations. These range from large to small and from profit-making to non-for-profit. There are three main types of travelled tourism organisations, which are private, public and voluntary.

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Global Partnership for Sustainable Tourism

#sdgaction39883.

• Description
• SDGs & Targets
• SDG 14 targets covered
• Deliverables & timeline
• Resources mobilized
• Progress reports

A key objective of the Global Partnership is to provide guidance for developing sustainable tourism projects, promote sharing of best practices and encourage reporting of demonstrable results. To this end, the Global Partnership serves as a clearinghouse for sustainable tourism projects.

This is done by:

Networking - to support our partners and tourism stakeholders globally in sharing experiences, successes and resources to accomplish the mission.

Sustainable tourism projects and proposals - The Global Partnership provides technical assistance to countries and advice to partners in the development and implementation of sustainable tourism projects. This is the core service. The sustainable tourism project screening tool, a web-based service that screens submitted projects against criteria developed for each of the 7 priority themes screens:

1. Policy Frameworks & Governance 2. Climate Change 3. Environment & Biodiversity 4. Poverty Alleviation 5. Cultural and Natural Heritage 6. Private Sector Sustainability Practices 7. Integration of Sustainability into Finance & Investment

Research & Knowledge: access to research, guidelines, tools and reports from UN agencies, international organizations and academic institutions provide industry solutions and support monitoring and measurement of sustainability outcomes.

Action Network

• North America

More information

Contact information.

Catalina Etcheverry, Consultant, UNEP Division of Technology, Industry and Economics

Related Expertise: Transportation and Logistics , Customer Demand

What Travel and Tourism Consumers Really Want—and Why

September 25, 2019  By  Jean Lee ,  Lara Koslow ,  Greg McRoskey ,  Pranay Jhunjhunwala , and  Jason Guggenheim

There has never been a better time to be a travel consumer, as new brands and innovative offerings continue to emerge all the time. But there has also never been a tougher time to be a travel executive—especially at incumbent companies. Those new offerings? They come from wave after wave of disruptive new entrants. In today’s environment, the traditional approach to understanding consumers—which focuses primarily on demographics and basic behaviors—no longer delivers the level of insight that companies need. Instead, companies need to understand what the underlying factors that influence a purchase decision are and how that decision can change, depending on a consumer’s context at the time of purchase and on the range of options available. Ultimately, companies will be in a better position to grow if they think less about what they’re trying to sell and more about what customers want to buy.

Over the past several years, companies in a number of other industries—most notably Identifying the Sources of Demand to Fuel Growth —have applied this approach, which we call demand-centric growth (DCG) . Increasingly, travel and tourism companies are using DCG to crack the code of a more dynamic market characterized by greatly expanded consumer choice. The concept has broad implications for new products and brands, loyalty programs, M&A, and other key areas of company strategy. For incumbent travel and tourism companies, it offers a clear way to address a tough market that is changing faster than they can.

Traditional Solutions No Longer Work

By most metrics, the travel industry is thriving overall and continues to grow, but the news is not all good. Supply has exploded, due to growth among incumbent companies and recent entrants that offer a wider set of options—some entirely new to the industry. In the cruise industry, supply will outpace demand within the next several years. In the lodging industry, Air­bnb and other shared-economy entrants have changed the rules of the game by putting private apartments and homes on the market, thereby reducing the demand for hotel rooms.

Established companies in all travel and tourism segments—airlines, cruise lines, and hotels—are struggling to tap into new growth or wrest market share away from competitors. They have tried various strategies, with little success so far. Here are some common examples:

• Choosing Quantity over Quality. Some companies have put near-term growth ahead of all other objectives, to the point where they can’t deliver a consistent experience.
• Overrelying on Unsustainable Advantages. Other companies have attempted to aggressively control supply—as when some airlines hold gate slots at airports in order to limit competition—giving themselves a high share of booking customers not because the customers prefer them but because the customers have no choice. It’s only a matter of time before regulations evolve and supply again increases to meet growing demand.
• Stretching the Brand Too Far. Still other companies try to be all things to all consumers—and end up being nothing to anyone because they lack a clear and differentiated position in the market. Think of a resort that offers guests a party scene but also touts family-friendly vacations. It’s hard to satisfy the full range of consumer preferences, especially conflicting ones. Companies that have tried to do so end up not being able to maintain any clear emotional connections to consumers.
• Joining the Race to the Bottom. It’s tempting to gain share by offering price discounts, but that game is expensive and difficult, and it is rarely sustainable. Price wars usually result in lose-lose outcomes—confusing customers and dissolving any nascent brand loyalty when brands inevitably try to recover by raising prices.

The common flaw in these strategies is that they lack a deep understanding of what consumers want, how their needs may vary from one occasion to another, and where they may look to meet their needs. (See Exhibit 1.) Often, customers have more options than companies think. For example, the Delta Shuttle connecting New York, Boston, Washington, and Chicago competes not just with other airlines but also with Amtrak. Airlines in Asia and Europe compete with high-speed rail lines. Cruise lines compete with each other and also with land-based vacations. A hotel company can no longer afford to focus exclu­sively on other hotels as its competition; it must also consider owner-rented homes as potential rivals. Evidently, the traditional frames of reference in travel and tourism are broken.

Clear Advantages from a New Approach: DCG

To understand how consumers make choices on the basis of their real-world frame of reference, companies need to look at customer behavior in a fundamentally new way. Specifically, they need to understand how demand can fuel growth, either by taking market share from competitors or by unlocking new sources of revenue. DCG establishes this broader considera­tion set by examining choices through the lens of demand versus supply. It takes into account the set of underlying consumer needs that companies may or may not be meeting despite the choices consumers make in response to available supply. In a supply-constrained world, for example, travelers flying from a hub city typically turn to the dominant airline—not because they want to, but because the airline’s more convenient flight schedules and connections effectively force them to. Finally, DCG appreciates that consumers’ needs and interests are not static, and it analyzes the unique circumstances that may drive travelers to make different decisions when planning different trips.

The DCG approach has several qualities that incumbent travel and tourism companies will find advantageous:

• Lasting. Unlike demographic-based marketing, DCG helps companies understand how and why individual consumers make their choices about travel, leading to a far more accurate and enduring picture of the market. At times, it can illuminate factors that even consumers themselves can’t articulate. The result is a much more sustainable approach to growth—one that is built on a simple yet comprehensive view of demand.
• Holistic . DCG looks at demand holistically, considering both existing and prospective customers, and both traditional and disruptive competitors. This encourages companies to devise a forward-looking growth strategy grounded not just in what is, but in what could or should be, shedding light on missed opportunities and potential white spaces in the market. In addition, by replacing a traditional brand-based market perspective with an outside-in approach, DCG provides an objective, customer-centric view of where a company stands relative to its competitors.
• Quantifiable. DCG helps companies quantify the opportunities that potential initiatives present, by assessing latent demand and competitive inten­sity. Only through this lens can com­panies understand their potential share of a consumer’s wallet and begin to shape a winning, customer-centric strategy. (See the sidebar “IHG’s New Hotel Brand Addresses an Unmet Need Among Budget-Conscious Travelers.”) By describing the opportunity in terms of actual numbers, DCG brings science to the art.

IHG’s New Hotel Brand Addresses an Unmet Need Among Budget-Conscious Travelers

IHG, the parent company of such hotel brands as InterContinental Hotels & Resorts, Kimpton Hotels & Restaurants, Crowne Plaza Hotels & Resorts, and Holiday Inn Express, was looking for new growth in a portfolio that was already strong. Management was concerned about being fully saturated in the company’s largest markets. It used demand-centric growth to identify a clear unmet need among hotel customers: a mass offering that provided reliable quality in the form of a great night’s sleep in a clean, well-designed room at a fair price. (Current alternatives in the market were either at a price point higher than consumers desired for this type of travel or very unreliable in terms of quality and consistency.)

IHG repositioned its existing brands and offerings to minimize overlap, and then invested in the new hotel brand, which it called avid hotels. Key features include: rooms designed for sound sleep, featuring a “best in class” mattress and sleep experience; high-quality, complimentary grab-and-go breakfast with 24/7 bean-to-cup coffee; and public spaces with fresh, modern designs. This brand is designed for travelers who want a hotel stay that finally meets their expectations for the type of hospitality they value most—the basics done exceptionally well—at a per-night rate expected to be about $10 to $15 less than IHG’s industry-leading Holiday Inn Express brand.

IHG launched the new avid hotels brand in September 2017, less than a year after the start of brand development—an accelerated pace in the hotel industry. Today, there are over 170 executed licenses with franchisees to build and open hotels across the US, Canada, and Mexico, and IHG recently announced plans to expand to Germany. Credit Suisse described avid hotels as the “most significant addition to IHG’s brand stable in over 25 years” and upgraded the stock to “outperform” as a result.

• Foundational.  Establishing a baseline understanding of demand gives com­panies a north star and a common language to use in aligning the entire organization. It is not just a consumer strategy but a company strategy. After assessing the demand landscape and analyzing sales volume and brand fit, management might decide to launch a new route or a new service offering, acquire a competitor that has a stronger position relative to that target, or shift investment to areas where a brand may be vulnerable to attack. (See Exhibit 2.) Every touch point in the customer journey should reinforce the brand’s positioning. And the company should align every one of its internal aspects and functions—from pricing to sales and marketing to capacity planning to organizational structure—to execute the strategy successfully.

• Transformational. Finally, DCG helps companies assemble portfolios of complementary brands. As a result, they can determine what the right M&A strategy is, whether to launch a new brand, or how to design their loyalty program. (See the sidebar “Alaska Airlines Integrates a Customer-Centric Merger.”) 

Alaska Airlines Integrates a Customer-Centric Merger

After Alaska Airlines’ parent company bought Virgin America in 2016, it faced some key questions about the post­merger organization. Should it keep Virgin’s brand (licensed from Sir Richard Branson’s Virgin Group) or operate under the 85-year-old Alaska Airlines brand? Should it strive to become a nationally relevant brand or stay focused on the West Coast, where Alaska and Virgin America were both well known? And how should it position the brand vis-à-vis the competition? The stakes were high: the $2.6 billion Virgin America acquisition was costly in relation to Alaska Air Group’s market cap of about $10 billion. As a company that has always centered around the customer, Alaska knew that it couldn’t make these decisions in the boardroom alone. Management needed to understand its customers.

The Alaska management team used demand-centric growth to identify several key insights. First, a deep customer analysis showed that Alaska had industry-­leading customer retention and loyalty once customers got to know the brand, whereas Virgin America was stronger in customer acquisition but somewhat less sustainable long-term. (Virgin America did appeal strongly to some customers, but they were a relatively narrow segment overall.) That led Alaska to announce that the Virgin America brand would be phased out over time; the distinctive red and white aircraft would eventually all display Alaska’s smiling Eskimo. In terms of the route network, Alaska had very strong brand affinity among West Coast travelers, and its customers cared deeply about route coverage in those markets. Armed with these insights, the company ran some economic simulations that pointed to a clear answer: focus on the West Coast.

Second, the company looked at the landscape of demand and implemented a new customer strategy centered on the concepts “feel good” and “refreshed”—a differentiating positioning that leverages the strength of both the Alaska Airlines and the Virgin America brands while balancing what existing customers already love with areas for potential innovation.

To activate this strategy, after conducting a robust conjoint analysis with target customers, the company rolled out a campaign with the slogan “Different Works” and reprioritized investments into experiential aspects that airline customers truly care about: feeling good and refreshed. Elements of the campaign included everything from new loyalty policies to bolder entertainment investments to music in airport ticketing and check-in areas. The company also empowered employees to ensure that customer interactions were positive, caring, and true to Alaska’s core.

In 2018 Alaska Airlines—the only legacy US carrier to have avoided bankruptcy throughout its 85-year history—ranked highest in the J.D. Power survey of customer satisfaction among traditional carriers for the 11th consecutive year.

It can also give companies critical guidance on the optimal way to enter a new market. The approach goes beyond assessing the performance of individual brands to show how a portfolio fits together. When brands within a portfolio lack differentiation from one another, parent companies risk confusing customers and cannibalizing sales. (See Exhibit 3.) At the same time, portfolio companies often miss out on clearly identifiable white-space opportunities. Brands compete internally for resources, too, and misaligned incentives often exacerbate disputes. A demand-centric growth approach sets up brands to compete together, rather than against each other.

The travel and tourism industry is ripe for customer-focused innovation—and so far, new entrants are getting there faster. As choices proliferate and consumer behavior becomes more complex, traditional demographic-based marketing will no longer suffice. Incumbent companies can continue to focus on price or supply, and suffer disruption from new entrants, or they can start taking steps to become more customer-centric, starting with developing a better understanding of what truly drives their customers’ decisions. Demand-centric growth provides a foundation for that understanding by clarifying what consumers want at the moment of purchase—and why.

Partner & Director, Customer Centricity

Managing Director & Senior Partner

Partner & Associate Director

Los Angeles

Managing Director & Senior Partner, Travel & Tourism Global Leader

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10 Promotion Strategies for the Travel and Tourism Industry that Actually Work

Almost every industry is (still!) going through tough times since the pandemic outbreak back in 2020. Some of them, though, have been affected by coronavirus far more than the others – and the travel industry is definitely one of them. Canceled trips, canceled flights, confused guests and hosts alike, countless restrictions, and the overall uncertainty of what’s coming next – all this have brought the industry to the brink of collapse.

Thankfully, most travel and tourism businesses decided to fight against the odds, and work their way through the pandemic. As of summer 2022, there are signs of coming back to (normal) life. Nobody knows, though, what autumn will bring and convincing consumers to plan their trips is far more difficult now than it ever was. That’s why clever marketing and promotion strategies seem to be the keys for the industry to get back on its feet.

Marketing for the travel and tourism industries in 2022

The pandemic isn’t the only problem the travel and tourism industry has faced lately. The economy (for example in Europe) forces people to think twice before going on costly vacations abroad. The competition is stiff as ever, and there’s still a need to maintain a healthy balance between costs and earnings. There’s no point in pumping thousands of dollars into marketing strategies if they won’t bring enough ROI. That’s why it’s crucial to select the next promotion strategy for your business carefully.

Here are some notable travel marketing trends are worth mentioning:

• TikTok marketing – this social video platform became a powerful marketing tool for those skilful enough to unlock its potential. Often referred to as a platform for children and youth (and dismissed for being such), TikTok hosts 1 billion active users. It’s a value that shouldn’t be ignored.
• Social media marketing – the dominance of TikTok does not mean that other social media platforms are doomed in marketing. Instagram, Facebook, and even LinkedIn – all those media have their place and are still valid marketing platforms. The key is – as always – targeting the right audience.
• Influencer marketing – staying in the social media area: engaging celebrities and influencers in your marketing activities is an idea worth thinking of. Of course, the influencer with a 250K Instagram profile won’t bring thousands of customers directly to your company, but the recognizability should definitely help.

What about some travel marketing trends for 2022?

• Flexibility is a key – though low prices are still important, customers are eager to find offers that enable them to get a full refund or change bookings if necessary.
• Long-term rentals – in times of remote work, more people want to try living in new places for a more extended period. So-called workations have become more popular than ever, and people expect special deals for long-term rentals.
• Geofencing – looking for attractions near the place of living has become a thing during the pandemic. People are forced to put off their travel plans until somewhere in the future, turned to what their area has to offer. With geofencing , local attractions, such as restaurants, museums, go-karting tracks, escape rooms or laser tag places, became open for people searching for “[something] near me” which, apparently, grew popular in recent years.

Enough of those trends – you’re here for the list, so here it is! 10 promotional strategies for the travel and tourism industry that actually work – they have been launched and tested by companies we know. There’s no room for hypotheses. Below you’ll find nothing but real-life examples – get ready to get inspired!

Gamecity Zoetermeer

Promotion types used: discount coupons, gift cards, giveaways.

Gamecity GoKarting Zoetermeer is a place of fun games and entertainment for people looking to do something more active and demanding than watching VOD at home or going to the cinema. Gamecity offers go-karting, laser tag, minigolf and an innovative, competitive escape room-like experience called Prison Island.

1. Social media giveaways

Pursuing the newest trends, Gamecity launched a few social media profiles, such as Instagram or TikTok (their most popular video has been watched more than 40K times!). They use TikTok not only for sharing funny, short videos but also to run giveaways for their engaged followers, thus increasing company recognizability and gaining new followers (as well as potential customers):

Online contests are usually a very effective way to raise awareness of newly-created brands. Still, nothing stands in your way if you want to organize a sweepstake every now and then to promote your already established brand.

‍ In short: a well-performed online giveaway should not only bring some attention to your company but it might also result in a significant followers increase. Each of them can become your next valuable customer!

2. Discount coupons

People who don’t order any service without typing “[name of the company] discount coupon” in Google Search won’t be disappointed, as Gamecity Gokarting issues discount coupons every once in a while. A nice 20% discount for go-karting should be enough to convince the unconvinced and create the opportunity for them to try new things while traveling or just hanging out with friends.

Discount coupons are the salt of promotion strategies for the tourism and travel industry – it’s always nice knowing that the attraction you were already willing to experience is a bit cheaper than expected. However, from a business perspective, too big of a discount can be deceptive, as people could try it once and then never come back due to the feeling that the service should be cheaper than it is. That’s why companies usually launch 10-20% discounts.

‍ In short: The most significant advantage of the discount coupon promotional strategy is that it’s not very demanding to launch and maintain such a promotion. And with a proper tool, such as the Voucherify, issuing coupons is approachable and developer-friendly.

Promotion types used: gift cards, partnerships, giveaways.

Sportihome has created its unique business model that combines two things you can find in the company name – sports and housing rentals. To make their offer attractive for sports enthusiasts and travelers alike, Sportihome runs numerous giveaways with strongly-thematic rewards, such as entries for sports events and so on:

3. Partnerships

A popular marketing strategy is partnering up with well-known brands to provide discounts, equipment and other gifts. Sportihome decided to follow this path by teaming up with Decathlon , the most prominent sports gear brand in France. Each host, who joins the Sportihome family, gets an exclusive 10% discount for equipping the lodgings they share with Sportihome customers.

In short: partnerships may strengthen your brand as showing up in the right company to a business meeting does. And if the partnership comes with benefits for the customers, you can be sure that it will positively impact your marketing efforts.

4. Gift cards

One of the ultimate travel and tourism promotion types is gift cards. However, buying holidays as a gift can cause unintended trouble – it isn’t easy to be a hundred percent sure that the gifted person won’t have any plans in a given period. Also, choosing the location and lodgings for them might not be the best idea (who knows if they’d like it?). In such a case, the best way would be to present someone with a gift card for holidays of their choice. And that’s exactly what you can do via Sportihome – choose the price (from €50 to €1,000) and choose whether Sportihome should send the card to the recipient or if you want to do this personally.

Each gift card is valid for 24 months, and the gifted person can use the code from the gift card during the payment – after choosing the most suitable location.

In short: Gift cards are present in almost any industry, but they became especially popular when the pandemic began – if all the travel companies ensured full refunds for everyone who wanted to cancel their flights, trips and vacations, they would already be out of business. One of the ways to stay above the surface while encouraging customers to return was to offer them gift cards instead of a cashback.

This is precisely the way easyJet decided to deal with the coronavirus crisis – read more about it in our case study!

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{{ENDCUSTOMER}}

Al Ali Yachts

Promotion types used: BOGO, discount coupons, giveaways.

Al Ali Yachts is a luxury yacht-rental company based in Dubai, UAE. In a demanding market, rental companies have to try different marketing strategies to get to the right audience. One of the most effective promotions used by Al Ali Yachts is BOGO – buy one, get one free – promotion.

How does it work? BOGO promotions add an item whenever a customer orders a required number of items. For example, during the "Enjoy the Summer" promotion, Al Ali Yachts offers their customers 1 hour of yacht rental for free for every 3 hours booked. It’s easy to calculate that the offer equals a 25% discount. The difference lies in the incentive.

If a group of friends would like to rent a yacht for two hours, they might get incentivized by the promotion – they’d rather pay for 3 hours and have a boat for 4 hours.

6. Holiday giveaways

There’s always an occasion to celebrate – should it be International Women’s Day, Independence Day or National Pizza With Everything (Except Anchovies) Day, brands have learnt to incorporate them into their marketing efforts. A contest where the winner gets 1 hour of free cruising? Why not? If it brings people interested in the product, it’s probably a good idea (though there’s a million dollars for whoever creates a campaign combining National Pizza Day with yacht rental).

Dertouristik

Promotion types used: discount coupons.

Visiting the Dertouristik website for the first time is one of those unforgettable moments, when a pop-up ad doesn’t get on the nerves – why so? Because of an exclusive, time-limited offer (also the fact that it doesn’t cover the whole screen)!

7. Time-limited offers

Though setting a time limit for the offer is old as the world, it’s useful promotional tool companies use with success in 2022 (and will probably still use in 2222). Here’s what it looks like on the Dertour website:

The window pops up right after entering the website – it says that there’s a €50 discount for any travel package from Dertour, as soon as the total costs are above €500. The offer is valid until midnight, so there’s a strict deadline, but with plenty of time to think this decision through.

It’s a nice touch that after closing the pop-up window, it’s still available under the blue “Ihr Rabatt Code” button, so the customers can get back and copy their code anytime.

Promotion types used: flexibility packages, discount codes, freebies.

8. Flexible packages

Trends in the travel and tourism promotions have changed – customers expect more than low prices, loyalty solutions or various discounts. They also need peace of mind when it comes to planning their vacations. That’s why solutions such as ItaliaRail’s Flexibility packages work! With an additional fee customers can ensure that they would be able to reschedule or cancel their train tickets with an 80% or 90% refund:

9. Freebies

Genuinely taking care of customers’ well-being is one of the most effective promotional strategies – especially if the goal is to create a long-term relationship with the customer. So ItaliaRail went the extra mile and prepared a little welcoming gift for their potential customers – a free Italian phrases ebook, which can be a helpful guide for those who visit Italy for the first time. Of course, giving away an ebook like this probably won’t become a game-changing strategy for the company. Still, it’s an excellent little addition to make customers feel better about traveling, and to get some email addresses in the process.

Promotion types used: cart promotions, discount coupons.

With its branches in Switzerland, Austria, Netherlands, France, Poland, Spain, the UK, Denmark, Belgium, Norway, Sweden and Finland, TUI became one of the most popular travel agencies in Europe, offering holiday trips worldwide.

10. Cart promotions

Knowing that the most straightforward solutions are often the most satisfying ones, TUI went through with cart promotions – the discounts visible immediately while browsing the offers:

A big, red –41% alert is precisely what TUI wants people to see right after clicking the TUI Deals button on the homepage. The difference between the regular and discounted price is what drives people’s purchasing decisions more often than they want to admit. But the difference between €1410 and €831 is just too good!

‍ Cart-level promotions , though, offer more than only displaying lower prices. Using them, you can assign automatic discounts to each customer who meets the redemption criteria, create personalized deals, enable free shipping, bonus items and much more!

Coming up with a successful promotion strategy for the travel and tourism industry requires a lot of work and dedication – I hope the above list of examples will help you choose the best promotion type to begin with. Now, before I finish, here are three final tips you might find helpful:

• Select two or three promotion types you’re eager to try out. Learn more about them and see if they are within your reach before investing any money in them.
• Look around and search for software that would help you create and launch the type of promotions you’re interested in. It’s always a better (and cheaper) idea to find ready-made software instead of trying to come up with your own solution.
• If you’re determined to try out different types of promotions for your business, make sure that the software you’ve found in step 2 is able to handle each of them. No point in subscribing to (and paying for) two or three different software packages while you can stick to a single one.

If you’re looking for a powerful promotion engine where you can create numerous marketing campaigns (personalized coupons, cart-level promotions, digital gift cards, product bundling, loyalty and referral programs, geofencing), but pay only for the actual usage, try Voucherify. And when I’m saying “try” I mean it – Voucherify comes with a free plan, which you can use to find your way through the platform before deciding to pay any money!

Don’t hesitate any longer

Get started with Voucherify!

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Travel & Tourism Development Index 2024

Francisco Betti Head, Global Industries Team; Member of the Executive Committee, World Economic Forum

Iis Tussyadiah Professor and Head of School of Hospitality and Tourism Management, University of Surrey

Driven by the end of pandemic-related restrictions and robust pent-up demand, global international tourist arrivals are expected to reach pre-pandemic levels in 2024, highlighting the resiliency of the Travel and Tourism (T&T) sector and people’s strong desire to travel. However, the recovery has not been without its challenges. Uneven regional and market-segment recoveries, labour shortages and supply and demand imbalances have all characterized the past few years of T&T development. Meanwhile, external macroeconomic, geopolitical and environmental factors such as high rates of global inflation and interest rates, conflicts in Europe and the Middle East and wildfires in destinations such as Greece have generated additional pressure on the sector. In the coming years, the impact of climate change, geopolitical tensions, macroeconomic uncertainty and the application of new digital technologies such as artificial intelligence (AI) represent just some of the challenges facing T&T and the broader global community. Within this context, it has become critical for T&T decision-makers and stakeholders not just to focus on improving sector readiness for future risks and opportunities, but also to ensure that the sector accounts for its economic, social and environmental impact and is a driver of global prosperity.

With this in mind, we have published the 2024 edition of the Travel & Tourism Development Index (TTDI). The index measures the set of factors and policies that enable the sustainable and resilient development of the T&T sector, which in turn contributes to the development of a country. The objective of the TTDI is to serve as a crucial benchmarking tool for stakeholders to gauge the progress of the T&T sector, informing policy and investment decisions. It offers insights into T&T economies’ strengths and areas for improvement, and the interconnected nature of T&T development, as well as facilitating strategic planning and multistakeholder dialogue to encourage sustainable and resilient growth at various levels.

The latest edition of the index provides an overview of the current state of the T&T sector and the various interconnected challenges and opportunities it faces as it moves past the COVID-19 pandemic. Furthermore, the publication’s special focus section uses index results and other research to provide a high-level overview of the likely future global risks and challenges landscape and looks at how the sector could help to address elements such as economic inequality, environmental threats linked to climate change and pollution, technological innovation and global connectivity. We emphasize that to achieve this potential, public- and private-sector leaders and other key stakeholders need to proactively shape T&T to become more resilient, inclusive and sustainable.

Following the World Economic Forum’s multistakeholder approach, this report is based on a thought leadership and research collaboration between the Forum and the University of Surrey. Through this new knowledge partnership, we have been able to make several upgrades to the TTDI, including the addition of new index components and data that allow for better coverage of the T&T sector’s environmental and socioeconomic impact, while making it more T&T-specific, concise and consistent in economy coverage. This work could not have been done without the valuable input of a network of distinguished thinkers and practitioners who provided their knowledge and insights. We are grateful to our advisory group, which comprises representatives from Bloom Consulting, the European Travel Commission (ETC), the Global Sustainable Tourism Council (GSTC), the Hong Kong Polytechnic University, the International Air Transport Association (IATA), JLL Hotels & Hospitality Group, Mastercard, New York University, the Pacific Asia Travel Association (PATA), Trip.com Group, the University of Surrey, Visa, the World Bank, the United Nations World Tourism Organization (UN Tourism) and the World Travel and Tourism Council (WTTC), and to our data partners AirDNA, Bloom Consulting, CoStar, Euromonitor International, GlobalPetrolPrices.com, IATA, the International Civil Aviation Organization (ICAO), the International Union for Conservation of Nature (IUCN), MMGY TCI Research, Tripadvisor, UN Tourism and the WTTC.

Understanding the Travel and Tourism Sector: A Business Perspective

The world of business is inextricably linked with the realm of travel and tourism. From corporate travel arrangements to the operation of hospitality giants, this sector plays a pivotal role in the global economy.

The travel and tourism industry is not merely about vacations and leisure; it encompasses a diverse array of activities, services, and businesses that fuel economies, create jobs, and shape the way we explore the world.

In this article, we will embark on a journey to understand the intricacies of the travel and tourism sector from a business standpoint. We will explore its significance in the global economy, delve into the core components of the industry, examine the economic impact, and discuss emerging trends and challenges.

Moreover, we will shed light on the business aspects of travel, highlighting the key players, revenue streams, and marketing strategies that drive success.

But why should business professionals, beyond those directly involved in tourism, care about this sector? The answer lies in the fact that travel and tourism intersect with nearly every industry. Whether you're in finance, technology, healthcare, or any other field, understanding how this sector operates can unlock opportunities for growth, collaboration, and innovation.

So, fasten your seatbelts and prepare for a journey through the multifaceted world of travel and tourism, where business meets exploration and economic growth meets wanderlust.

Travel and Tourism

Travel and tourism refer to the activities, services, and industries associated with people traveling to and staying in places outside their usual place of residence for leisure, business, or other purposes.

The Core Components of Travel and Tourism

At its heart, the travel and tourism sector comprises several key components, each playing a unique role in the industry's ecosystem. Understanding these components is crucial for any business professional aiming to navigate this dynamic sector effectively.

Here are the primary elements:

1. Accommodation: Accommodation providers are the backbone of the tourism industry. They include hotels, resorts, vacation rentals, and even unconventional options like Airbnb. These establishments cater to travelers by offering a place to stay, ranging from budget to luxury.

2. Transportation: Travel relies heavily on transportation. This segment encompasses airlines, cruise lines, railways, car rental services, and public transportation systems. Efficient transportation networks are vital for connecting travelers to their destinations.

3. Food and Beverage: Dining experiences are an integral part of any trip. This category includes restaurants, cafes, food trucks, and bars. Culinary tourism, where travelers explore local cuisine, has become a significant trend within this segment.

4. Travel Agencies: Travel agencies and tour operators serve as intermediaries between travelers and service providers. They help plan itineraries, book accommodations, and arrange transportation, making the travel process more convenient.

5. Attractions and Entertainment: Tourist destinations offer various attractions, from historical sites and museums to theme parks and natural wonders. Entertainment options such as theaters and music venues also contribute to the overall travel experience.

6. Travel Technology: In the digital age, technology has transformed the way people plan and experience travel. Online booking platforms, travel apps, and services like TripAdvisor have reshaped the industry's landscape.

7. Tourism Services: This category includes a range of services such as travel insurance, currency exchange, and visa assistance. These services ensure that travelers are prepared for their journeys and can navigate any unforeseen challenges.

8. Destination Management: Local governments and organizations play a pivotal role in managing and promoting tourist destinations. They invest in infrastructure, marketing, and sustainability efforts to attract visitors.

The Economic Impact of Travel and Tourism

From a business perspective, it's essential to grasp the significant economic impact of the travel and tourism sector. This industry is a global economic powerhouse that generates jobs, fosters investment and drives economic growth.

Here are some key statistics to illustrate the significance of travel and tourism :

• Job Creation: Travel and tourism directly support over 330 million jobs worldwide, accounting for 1 in 10 jobs globally.
• Contribution to GDP: In 2022, the travel and tourism sector contributed 7.6% to global GDP, highlighting its substantial economic footprint.
• Investment Magnet: This sector attracts investments in infrastructure, hotels, transportation, and more, further stimulating economic activity.
• Foreign Exchange Earnings: Tourism often serves as a vital source of foreign exchange earnings for many countries, boosting their balance of payments.
• SME Growth: Small and medium-sized enterprises (SMEs) play a significant role in the sector, benefiting from the opportunities created by tourism-related businesses.

The economic interplay between tourism and other industries is intricate.

For instance, the hospitality sector relies on agriculture for food supplies, airlines depend on the aerospace industry for aircraft and tourist destinations often collaborate with local artisans and businesses to promote cultural experiences.

In the business world, recognizing the economic clout of travel and tourism can open doors for collaboration, investment, and innovation. Many companies, even those seemingly unrelated to tourism, can find ways to tap into this lucrative market.

Emerging Trends and Challenges

The travel and tourism sector is continuously evolving, driven by changing consumer preferences, technological advancements, and global events. Business professionals must stay attuned to these trends and challenges to adapt and thrive in this dynamic industry.

Here are some notable developments:

1. Sustainable Tourism: Travelers increasingly prioritize eco-friendly and sustainable practices. Businesses that adopt green initiatives not only reduce their environmental footprint but also attract environmentally conscious travelers.

2. Digital Transformation: The digitalization of travel services has reshaped how consumers plan and book trips. Online platforms, artificial intelligence, and data analytics are instrumental in personalizing travel experiences.

3. Health and Safety: Recent global health crises have heightened travelers' concerns about safety and hygiene. Businesses must implement robust health and safety measures to regain consumer trust.

4. Shifts in Travel Behavior: The pandemic has brought about changes in travel behavior, with a focus on remote and nature-based destinations. Companies need to adapt their offerings to cater to these evolving preferences.

5. Regulatory Challenges: Navigating complex regulations, including visa requirements and health protocols, can be a challenge for travel businesses. Staying informed and compliant is crucial.

6. Geopolitical Factors: Political instability and international relations can significantly impact the tourism industry. Businesses must be prepared to adapt to changing geopolitical landscapes.

The Business of Travel and Tourism

Understanding how businesses operate within this sector is essential for both industry insiders and entrepreneurs looking to tap into this thriving market.

Role of Businesses in the Travel Sector

Businesses play a pivotal role in shaping the travel and tourism landscape. Whether you're a hotel chain, an airline, a tour operator, or a travel agency, your role is multifaceted, encompassing everything from customer service to marketing and sustainability initiatives.

• Customer-Centric Approach : At the heart of every successful travel and tourism business is a deep commitment to customer satisfaction. Travelers today expect exceptional service and unique experiences. From the moment a traveler starts planning their trip to the time they return home, businesses must focus on providing top-notch services, personalized recommendations, and seamless experiences.
• Innovation and Adaptation : The travel industry is highly competitive and constantly evolving. Successful businesses in this sector are those that innovate and adapt to changing trends. This could mean embracing digital technology, offering eco-friendly options, or creating new and exciting travel packages.

Business Models and Revenue Streams

To thrive in the travel and tourism sector, businesses employ various revenue models tailored to their specific niches. Here are a few common business models:

• Hospitality and Accommodation : Hotels, resorts, and vacation rentals rely on room bookings and additional services such as dining, spa treatments, and event hosting to generate revenue.
• Airlines and Transportation : Airlines make money through ticket sales, baggage fees, in-flight services, and partnerships with other travel-related businesses. Transportation services like taxis, trains, and cruise lines have similar revenue structures.
• Tour Operators and Travel Agencies : These businesses profit from organizing and selling travel packages, tours, and experiences. Commissions, booking fees, and tour sales are primary income sources.
• Online Travel Agencies (OTAs) : OTAs like Expedia and Booking.com aggregate information from various travel service providers and earn commissions on bookings made through their platforms.

Customer Experience and Service Excellence

In the digital age, the travel and tourism sector is driven by customer reviews and recommendations. Travelers share their experiences online, influencing the choices of others. Therefore, providing exceptional customer service is paramount. Here are some strategies to achieve service excellence:

• Personalization : Tailor recommendations and services to individual preferences.
• Seamless Booking and Travel : Make the booking process simple and provide support throughout the journey.
• Feedback and Improvement : Collect customer feedback and use it to enhance services continually.
• Crisis Management : Be prepared to handle unexpected situations, such as flight cancellations or health emergencies, with professionalism and empathy.

Marketing and Promotion Strategies

Effective marketing is essential for attracting travelers to your business. Here are some strategies commonly used in the travel and tourism industry:

• Digital Marketing : Utilize online channels such as social media, search engine optimization (SEO), email marketing, and paid advertising to reach a global audience.
• Content Marketing : Create engaging content, including blog posts, videos, and travel guides, to inspire and inform potential travelers.
• Partnerships : Collaborate with influencers, other businesses, and tourism boards to expand your reach and access new markets.
• Sustainability Promotion : Highlight your commitment to sustainable and responsible travel practices, as eco-conscious travelers seek eco-friendly options.

The business of travel and tourism is a multifaceted realm that demands a relentless focus on customer satisfaction, innovation, and responsible practices.

Success in this sector requires a deep understanding of your niche, a commitment to service excellence, and strategic marketing efforts. As the travel industry continues to evolve, businesses that can adapt and offer unique, memorable experiences will undoubtedly thrive in this exciting and ever-changing market.

Key Players in the Travel and Tourism Industry

As we dive deeper into the business of travel and tourism, it's crucial to recognize the key players that shape this industry. These players, ranging from airlines to accommodation providers and travel agencies, contribute to the diverse ecosystem of travel and tourism.

Understanding their roles and significance is essential for anyone interested in this dynamic sector.

Airlines and Aviation

Airlines are the lifelines of global travel. They provide the means for travelers to reach their destinations quickly and efficiently. Here's an overview of their role in the industry:

• Passenger Transportation : Airlines transport millions of passengers daily, connecting cities and countries across the globe. They generate revenue through ticket sales, baggage fees, and in-flight services.
• Cargo Services : Airlines also play a pivotal role in transporting goods and cargo, contributing significantly to international trade and logistics.
• Global Networks : Major airlines operate extensive global networks, allowing travelers to reach virtually any corner of the world.

Hotel Chains and Accommodation Providers

The hospitality sector, including hotels, resorts, and vacation rentals, is another cornerstone of the travel and tourism industry. Here's how they contribute:

• Lodging : These businesses offer lodging options, from budget-friendly to luxury, catering to diverse traveler preferences.
• Dining and Services : Many hotels provide dining options, spa services, event hosting, and recreational facilities, enhancing the guest experience and generating additional revenue.
• Destination Attraction : Iconic hotels and resorts often become attractions in themselves, drawing travelers to specific destinations.

Tour Operators and Travel Agencies

Tour operators and travel agencies specialize in creating and selling travel packages and experiences. Their roles include:

• Curating Experiences : They design itineraries and packages that offer unique and immersive travel experiences, from adventure tours to cultural excursions.
• Booking and Logistics : These businesses handle the logistics of travel, including accommodations, transportation, and activities, streamlining the process for travelers.
• Expertise : Tour operators and travel agencies provide expert guidance, helping travelers navigate complex travel decisions.

Destination Management Companies

Destination management companies (DMCs) focus on specific regions or destinations. Their roles encompass:

• Local Expertise : DMCs have in-depth knowledge of their respective destinations, enabling them to offer specialized services and experiences.
• Customized Services : They work closely with travel planners and agencies to tailor experiences for groups and individuals.
• Sustainability : DMCs often play a vital role in promoting responsible tourism practices within their destinations.

Online Travel Agencies (OTAs)

Online travel agencies have become a dominant force in the industry, leveraging digital platforms to connect travelers with various travel services. Here's what they do:

• Aggregation : OTAs aggregate information from airlines, hotels, and other travel service providers, offering a wide array of choices to travelers.
• Booking Platforms : They provide convenient booking platforms, allowing travelers to book flights, accommodations, and more in one place.
• Reviews and Recommendations : OTAs often feature user reviews and recommendations, influencing traveler decisions.

Understanding the roles of these key players in the travel and tourism industry is essential for anyone considering entering this sector.

Each player contributes uniquely to the travel experience, from transportation to accommodation and beyond. Successful businesses often collaborate with multiple stakeholders to offer comprehensive and memorable travel experiences to their customers.

Travel and Tourism Post-COVID-19

The travel and tourism industry, like many others, faced unprecedented challenges during the COVID-19 pandemic. Lockdowns, travel restrictions, and health concerns brought international travel to a standstill. However, the industry has displayed remarkable resilience and adaptability.

Let's explore how the sector is recovering and adapting in a post-pandemic world.

Impact of the Pandemic on the Industry

• Travel Restrictions : Stringent travel restrictions, including border closures and quarantine requirements, severely impacted international travel. Airlines faced a sharp decline in passenger numbers.
• Hospitality Struggles : Hotels and accommodation providers experienced a dramatic drop in occupancy rates. Many temporarily closed or adapted to offer quarantine and isolation services.
• Cruise Industry Challenges : Cruise lines faced significant setbacks due to onboard outbreaks. The industry had to reimagine health and safety protocols.
• Shift to Domestic Travel : With international travel restrictions, many travelers turned to domestic and regional destinations, boosting local tourism.
• Digital Transformation : The pandemic accelerated the adoption of digital technologies for contactless bookings, health monitoring, and communication.

Recovery and Adaptation Strategies

The travel and tourism industry is rebounding, thanks to a combination of factors:

• Vaccination Campaigns : Widespread vaccination campaigns have increased traveler confidence, making international travel safer.
• Health and Safety Protocols : Airlines, hotels, and other businesses have implemented robust health and safety measures to reassure travelers.
• Flexible Booking Policies : Many travel companies introduced flexible booking and cancellation policies to accommodate changing travel plans.
• Sustainability Focus : There's a growing emphasis on sustainable and responsible tourism, with businesses integrating eco-friendly practices.
• Digitalization : The industry continues to embrace digital technologies, offering contactless experiences and personalized services.
• Collaboration : Stakeholders across the industry are collaborating to rebuild and promote destinations.

Future Outlook and Resilience

The travel and tourism industry is poised for recovery and growth in the coming years. Here's what the future may hold:

• Pent-Up Demand : Many travelers postponed their plans during the pandemic, leading to pent-up demand for leisure and business travel.
• Sustainable Travel : Sustainable and eco-conscious travel is gaining momentum. Travelers are increasingly choosing destinations and businesses committed to environmental responsibility.
• Tech Integration : Technology will continue to play a significant role, with advancements in AI, mobile apps, and data analytics enhancing the travel experience.
• Health and Safety : Health and safety measures will remain a priority, with businesses maintaining rigorous protocols.
• Remote Work and Travel : Remote work trends may encourage a blend of work and leisure travel, with more extended stays in diverse locations.
• Resilience Planning : The industry is developing resilience plans to better handle future crises and disruptions.

The travel and tourism industry's ability to adapt and innovate in the face of adversity demonstrates its resilience. As it recovers and evolves, it offers promising opportunities for businesses and travelers alike.

The key to success lies in embracing change, prioritizing safety, and delivering exceptional experiences that meet the evolving needs of travelers in a changing world.

Sustainable Tourism and Responsible Business Practices

In a world increasingly concerned about the environment and social responsibility, the travel and tourism industry is under scrutiny to adopt more sustainable and responsible practices.

Let's delve into the importance of sustainable tourism and how businesses can contribute to a greener and more ethical travel sector.

Environmental and Social Responsibility

• Reducing Carbon Footprint : The travel industry is a significant contributor to greenhouse gas emissions. Airlines, for example, are exploring biofuels and more fuel-efficient aircraft to reduce their carbon footprint.
• Preserving Natural Resources : Eco-conscious travelers seek destinations that protect and preserve natural resources. Businesses can contribute by implementing eco-friendly initiatives like energy-efficient facilities and waste reduction programs.
• Conservation Efforts : Supporting local conservation projects and wildlife protection initiatives can be a part of responsible tourism. This can involve financial contributions or active participation.
• Respecting Local Cultures : Responsible tourism respects and celebrates local cultures and traditions. It involves engaging with local communities in a respectful and sustainable manner.
• Community Involvement : Businesses can support the communities they operate in through job creation, fair wages, and community development projects.

Sustainable Tourism Certifications and Initiatives

• Eco-Certifications : Numerous certifications, such as EarthCheck and Green Key , help businesses showcase their commitment to sustainability. These certifications often involve rigorous audits of a company's environmental practices.
• Zero-Waste Initiatives : Some hotels and resorts aim to become zero-waste establishments, recycling and repurposing nearly all their waste.
• Wildlife Conservation : Tour operators and businesses can partner with wildlife conservation organizations to promote ethical wildlife experiences.
• Local Sourcing : Restaurants and hotels can prioritize local sourcing of food and materials, reducing transportation-related carbon emissions.
• Plastic Reduction : Many businesses are eliminating single-use plastics and opting for sustainable alternatives.

Benefits of Responsible Tourism for Businesses

• Competitive Advantage : Travelers increasingly seek sustainable and responsible options. Businesses that embrace these practices gain a competitive edge.
• Cost Savings : Sustainable practices often lead to cost savings through reduced energy and resource consumption.
• Enhanced Reputation : Businesses committed to responsible tourism build a positive reputation and attract like-minded customers.
• Legal Compliance : Adhering to eco-friendly and ethical standards ensures compliance with evolving environmental and social regulations.
• Long-Term Viability : By protecting the environment and supporting local communities, businesses contribute to the long-term viability of their destinations.
• Guest Satisfaction : Eco-conscious travelers appreciate businesses that share their values, leading to higher guest satisfaction and loyalty.

The travel and tourism sector's future hinges on sustainable and responsible practices. Businesses that prioritize environmental and social responsibility not only contribute to a healthier planet but also position themselves for long-term success in an industry undergoing profound changes.

As a business professional, understanding and adopting these practices can be a strategic advantage in a world where ethical considerations increasingly influence consumer choices.

Hostile Takeovers

In a hostile takeover, the acquiring company pursues the target company despite the target's resistance. Hostile takeovers often involve aggressive tactics, such as tender offers directly to shareholders or attempts to replace the target's board of directors.

Case Studies: Successful Businesses in Travel and Tourism

To gain deeper insights into the strategies and approaches that have propelled certain businesses to success in the travel and tourism sector, let's examine a few notable case studies.

These examples showcase how innovation, adaptability, and a customer-centric approach can make a significant impact in this dynamic industry.

Airbnb: Revolutionizing Accommodation

Airbnb, founded in 2008, has transformed the hospitality sector. This online marketplace connects travelers with unique accommodations offered by hosts worldwide. What sets Airbnb apart?

Key Success Factors:

• Platform Model : Airbnb operates as a platform, allowing hosts to list their properties and travelers to book them. This asset-light model means Airbnb doesn't own properties, reducing capital requirements.
• User Reviews : User-generated reviews and ratings build trust among users. Travelers can make informed choices based on the experiences of previous guests.
• Personalization : Airbnb's recommendation engine suggests accommodations based on user preferences, enhancing the customer experience.
• Diverse Offerings : From treehouses to castles, Airbnb offers a wide range of unique accommodations, appealing to travelers seeking authentic experiences.
• Host Community : Airbnb invests in building a strong host community, providing support and resources to hosts.

Cross-Border Mergers and Acquisitions: Global Expansion

Cross-border M&A transactions involve companies from different countries coming together. These deals offer opportunities for global expansion but also present unique challenges.

Booking.com: Data-Driven Booking

Booking.com, founded in 1996, is a global online travel agency. It leverages technology and data to simplify travel booking.

• Vast Inventory : Booking.com offers a wide range of accommodation options, from hotels to vacation rentals. This extensive inventory caters to diverse traveler preferences.
• User Experience : The platform's user-friendly interface and transparent booking process contribute to its popularity.
• Data Analytics : Booking.com uses data analytics to understand traveler behavior, enabling personalized recommendations and pricing strategies.
• Global Reach : With a presence in over 220 countries and territories, Booking.com serves a global audience.
• Instant Confirmation : Providing real-time booking confirmation enhances the customer experience.

Delta Air Lines: Customer-Centric Air Travel

Delta Air Lines, a major U.S. carrier founded in 1924, is known for its customer-centric approach.

• Reliability : Delta prioritizes operational reliability, minimizing flight cancellations and delays.
• Fleet Upgrades : Investing in a modern and efficient fleet enhances the passenger experience and reduces operating costs.
• Customer Service : Delta emphasizes excellent customer service, and its efforts are reflected in high customer satisfaction ratings.
• Global Alliances : Participation in global airline alliances expands route networks and offers travelers more choices.
• Innovation : Delta embraces innovation, introducing features like biometric boarding and in-flight entertainment options.

These case studies highlight the diverse strategies and approaches that have driven success in the travel and tourism sector. From disruptive online marketplaces to data-driven booking platforms and customer-centric airlines, businesses that prioritize innovation, customer experience, and adaptability are well-positioned for growth.

By studying these examples, business professionals can gain valuable insights into the industry's evolving landscape and identify opportunities to innovate and excel in their own travel and tourism endeavors.

Lessons Learned from Industry Leaders

The travel and tourism sector offers a treasure trove of lessons for business professionals across various industries. Let's distill some key takeaways from the successes and innovations of industry leaders:

1. Customer-Centricity Is Paramount

Whether you're running an airline, hotel, or travel agency, prioritizing the customer experience is non-negotiable. Happy and satisfied customers become loyal patrons and brand advocates. Invest in personalized services, efficient booking processes, and responsive customer support.

2. Embrace Technology and Data

Technology is a game-changer in the travel industry. From data analytics that inform pricing strategies to mobile apps that enhance on-the-go experiences, leveraging technology can set your business apart. Be open to adopting new tools and systems that improve efficiency and customer satisfaction.

3. Diversity and Choice Matter

Offering a diverse range of products or services can attract a broader audience. In the travel sector, this means providing various accommodation types, transportation options, and tour packages. Embrace diversity to meet the unique preferences of your customers.

4. Transparency Builds Trust

Transparency in pricing, policies, and terms and conditions builds trust with customers. Hidden fees and ambiguous policies can lead to dissatisfaction. Clear communication and honesty go a long way in establishing credibility.

5. Sustainability Is the Future

Sustainability and responsible tourism are becoming central to the industry's ethos. Travelers are increasingly conscious of their environmental impact. Consider eco-friendly practices and promote responsible tourism. It's not only good for the planet but also a selling point for your business.

6. Innovate or Stagnate

Innovation is the lifeblood of the travel and tourism sector. Whether it's introducing new services, improving efficiency, or enhancing the customer journey, staying ahead requires a commitment to innovation. Monitor industry trends and be open to creative solutions.

7. Globalization Expands Reach

Participating in global networks and alliances can expand your business's reach. Collaborate with international partners to offer customers a wider range of options. Globalization also provides resilience in the face of economic fluctuations.

8. Resilience Is Crucial

The industry has weathered numerous storms, from economic crises to health emergencies. Building resilience into your business plans, such as having contingency measures for crises, is essential. Flexibility and adaptability are key.

9. Community and Culture Matter

Embrace the culture and communities where your business operates. Engage with local communities, respect their traditions, and contribute positively. This fosters goodwill and can lead to meaningful partnerships.

10. Continuous Learning Is a Competitive Advantage

The travel and tourism sector is ever-evolving. Continuous learning and staying informed about industry trends and regulations are essential. Attend conferences, workshops, and industry events to network and gain insights.

Incorporating these lessons into your business strategy can set you on a path to success in the dynamic and rewarding world of travel and tourism. By combining innovation, customer focus, and a commitment to sustainability, you can thrive in an industry that promises new horizons and unforgettable experiences for travelers worldwide.

The travel and tourism sector represents a dynamic and resilient industry with a significant impact on the global economy. As a business professional, understanding the nuances and opportunities within this sector is paramount. In this comprehensive guide, we've explored the multifaceted world of travel and tourism, delving into its significance, components, trends, and challenges.

We've seen how the industry intersects with business, offering a wide array of opportunities for entrepreneurs and established enterprises alike. Whether you're considering venturing into travel-related ventures or seeking to enhance an existing business through tourism, the sector holds immense potential.

Key takeaways from this exploration include:

• The Economic Powerhouse : Travel and tourism contribute significantly to GDP, job creation, and foreign exchange earnings in many countries. This sector's resilience is evident through its ability to rebound from crises.
• Diverse Components : The industry encompasses hospitality, transportation, attractions, travel services, and more, creating a rich tapestry of business opportunities.
• Trends and Challenges : Emerging trends like sustainable tourism and digital transformation offer avenues for innovation. Yet, challenges such as health concerns and environmental responsibility must be addressed.
• The Business of Tourism : Customer-centricity, technology adoption, transparency, and sustainability are vital principles for success in this sector.
• Key Players : Airlines, hotel chains, tour operators, and online travel agencies are among the key players shaping the industry's landscape.
• Post-COVID-19 Era : The pandemic prompted significant shifts in travel behavior. Recovery strategies and adaptability are critical for businesses in the post-COVID-19 world.
• Sustainable Tourism : Responsible practices not only benefit the environment but also appeal to conscious travelers and can drive business success.
• Lessons from Industry Leaders : Customer-centricity, innovation, transparency, and resilience are valuable takeaways from successful travel and tourism businesses.

As the world evolves, so do the travel and tourism opportunities. By staying informed, embracing innovation, and aligning with sustainability, you can position your business for success in an industry that promises both profitability and the chance to create unforgettable experiences for travelers around the globe.

Now, armed with insights from this guide, you're better equipped to navigate the exciting and ever-changing world of travel and tourism, contributing to its growth and shaping its future. Bon voyage!

• United Nations World Tourism Organization (UNWTO). (2022). Tourism Highlights 2022 Edition. Link
• World Travel & Tourism Council (WTTC). (2022). Economic Impact Reports. Link
• International Air Transport Association (IATA). (2022). IATA Economics. Link
• Deloitte. (2022). Travel, Hospitality, and Leisure Reports. Link
• Statista. (2022). Statistics and Market Data on Travel and Tourism. Link
• McKinsey & Company. (2022). Travel, Logistics & Transport Infrastructure. Link
• Booking.com. (2023). Link
• TripAdvisor. (2023). GreenLeaders. Link
• The New York Times. (2023). Travel and Tourism. Link
• National Geographic. (2023). Sustainable Travel. Link
• The World Bank. (2023). Tourism. Link
• World Tourism Organization (2022). Global Code of Ethics for Tourism. Link

Tumisang Bogwasi

2X Award-Winning Entrepreneur | Empowering Brands to Generate Leads, Grow Revenue with Business Strategy and Digital Marketing | Founder, CEO of Fine Group

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Travel Tour Agency Business Plan

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Sephats Tours

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.">, opportunity.

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.

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 (Botswana) area.

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 realize 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.

Competition

We have identified competing companies, some firmly established, that fill the same needs as Sephats Tours. We intend to market ourselves in such a way that with time competitor customers will choose our service over competitors’ on the basis of our higher quality and informative excursions. 

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.

Expectations

We foresee a slow initial growth in sales, as we strive to ensure we are known on the market, though operating expenses will be relatively high, and a bump in our sales and revenue generation as we spread our services during expansion.

Collection days are very important. We do not want to let our average collection days get above the client’s actual subscription period under any circumstances. This could cause a serious problem with cash flow, because our working capital situation is chronically tight. However, we recognize that we cannot control this factor easily, because of the relationship we wish to create with our clients.

Financial Highlights by Year

Financing needed.

We wil have 2 investors that will contribute: 

investor 1 – P100,000

investor 2 – P102.000

This will cover all our necessary expenses until we are able to start making a net profit 

Problem & Solution

Problem worth solving.

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. Customers want to travel, to see the world. They are in need of a company where they can enjoy the sites and the luxuries without having to pay a huge price. 

Our Solution

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. Customers will think we are well worth the expense 

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.

Target Market

Market size & segments.

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 realize 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. />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 organizations’ 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 realize 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.

Current Alternatives

We have identified competing companies, some firmly established, that fill the same needs as Sephats Tours. We intend to market ourselves in such a way that with time competitor customers will choose our service over competitors’ on the basis of our higher quality and informative excursions. A more thorough outline of our main competitors including their strengths and weaknesses follows:

• XXX:  Located on the first floor of the G Hotel, Gear Adventures specializes in tailor-made safaris throughout Botswana and her neighboring countries. Gear Adventures offers Mobile Wilderness Safaris, Weekend Adventures, One-day explorations and safari operators. Of particular concern to us are the day tours around Gaborone that it offers to G Hotel guests. Research indicated that Gear Adventures is the only operator that offers day trips in and around Gaborone. Several of its services include: [details omitted].
• YYY:  Arguably one of the most reputable companies in our intended line of business. It has a fleet of nineteen buses comprising two semi-luxury B7 Volvo train-buses, six semi-luxury B7 Volvo, five M/Benz, four Nissan and two DAF buses. All the Volvo buses have radio facilities, and one of the train-buses has toilet facilities. With close to twenty years of experience Mr. K supported by his wife, Mrs. K, are achieving most of what they envisioned when they started their business-to provide a nation-wide road transport service renowned for its efficiency and reliability. The recent launch of a new imported South American double-decker luxury bus serves as testimony of their continued dedication towards providing a good service to their clients.

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• ZZZ:  Similar to YYY, Z is well respected in the market with a large fleet of buses. As well as providing daily transport to Selebi Phikwe and several towns it also provides local and international trips by hire. However they lack the marketing edge and foreign tourist focus we intend to have.

Upon closer analysis of the above competitors it may be observed that the majority of these are offering safari excursions, and this represents an opportunity to be realized by us. According to the Central Statistics Office there are approximately 81 travel agents, tour operators and safari operators in Botswana at present, the majority of which have a South African background either in directorship or actual origin.

Our Advantages

Our advantages are best described as our strengths: 

• Diversified client base:  This will reduce our dependency on one particular market.
• Combination of skills in employees:  The directors intend to engage well-qualified and experienced employees to jointly develop business strategy and long-term plans, so as to attain company objectives.
• Extensive advertising and marketing:  The company will undertake extensive advertising and marketing, promoting both its name as well as service/product awareness. Hence an aggressive and focused marketing campaign with clear goals and strategies shall be one of our mainstays.

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 realize 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.

Marketing & Sales

Marketing plan.

One core element of our strategy will be that of differentiation from our competitors. In terms of marketing we intend to ensure that our name and services are marketed on an extensive basis so that customers are aware of our existence. We will have a Social Media Strategy. We will be in Twitter, on Facebook, and on LinkedIn. We will run promotions and sales and have our customers tell us their favorite vacations, and experiences and they will talk to each other. In price, we intend to offer reasonable and competitive prices in comparison to competition and we need to be able to sustain that. Our service marketing will strive to ensure that we establish long relationships with clients.

For the short term at least, the selling process will depend on personal selling/networking and advertising to lure and inform potential customers about the services we offer and the benefits of utilizing our services. Our marketing does not intend to affect the perception of need as much as knowledge and awareness of the service category.

Locations & 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.

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.

Milestones & Metrics

Key metrics.

Our Key metrics are:

• Tours sold (units, growth from month to month and year to year)
• Tourists per tour (average, and changes over time)
• Revenue per tour
• Revenue per tourist
• Total tourist prospects (estimates)
• Facebook likes
• Twitter follows

Ownership & Structure

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.

Management Team

The founders of Sephats Tours are passionate about the activities it will promote and offer on the market. Management style will reflect the participation of the directors/shareholders. The company intends to respect its community and treat all employees well. We will develop and nurture the company as community. However we realize that we are not fully conversant in tourism and as such intend to engage experienced staff as well as undergo a training course from a reputable institution.

The Managing Director’s experience in public commercial transportation and government will assist in the establishment of good networks. He also has attended a course in Auto Mechanics at X Centre that will assist in servicing the vehicles. However acknowledging the importance of continuous training and improvement the Managing Director intends to undergo a course in Travel and Tourism so as to be fully conversant in the field, as well as obtain knowledge of the latest developments in the industry.

Personnel Table

Financial plan investor-ready personnel plan .">, key assumptions.

Some of the more important underlying assumptions are:

• We assume a strong economy, without major recession.
• We assume, of course, that there are no unforeseen changes in economic policy to make our service immediately obsolete or unwanted.

Revenue by Month

Expenses by month, net profit (or loss) by year, use of funds.

Thus far we have purchased a Mercedes Benz mini bus to run tours for our customers, for P167,00, which was purchased with P32,000 down and the rest on a 5-year 6% loan. Other start-up expenses covered include  legal costs, business plan compilation, license costs and related expenses. 

START-UP REQUIREMENTS

Start-up Expenses

• Legal P1,000
• Logo, branding. P500
• Website, collaterals P700
• Consultants P1,200
• Insurance P800

TOTAL START-UP EXPENSES P5,000

Sources of Funds

We have 2 investors, investor 1 is investing P100,000, investor 2 is investing 102,000. 

Projected Profit & Loss

Projected balance sheet, projected cash flow statement.

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40 Travel and Hospitality Business Ideas

From providing lodging to leading guided tours, the opportunities for success in the travel and hospitality industry are numerous. Your potential tourism business can take many different forms as the commodities of traveling are multifaceted and broad.

Whatever your motivation for wanting to begin your entrepreneurial journey T ravel business ideas and Hospitality business ideas are a great place to start!

Best Travel and Hospitality Business Ideas for 2020

1. airbnb business.

An Airbnb business supplies guests with a place to stay within a person’s home. Many travelers are looking for lodging which is a little more personal and unique. Airbnb rentals offer a home feel, versus that of a hotel or motel. Guests may stay as short as one or two days or extended stays up to two weeks.

An Airbnb is a great way to add some extra income, especially if you have unused rooms or lots of space in your house. You will have guests staying in your home, so you should be comfortable talking and interacting with guests. Some homeowners, who travel often, will also rent out their homes when they are out of town. This allows them to receive income and have someone watching their home when they’re not around.

Learn how to start an Airbnb business .

2. AIRPORT SHUTTLE BUSINESS

Airport shuttles transport people between the airport and either their homes, hotels, or where they parked their cars. Airport shuttles are used by business travelers, groups, families, and solo riders. The driver picks travelers up at a predetermined location and drops them off wherever necessary; typically with no more than two stops on each route. Vehicles are generally spacious, with ample room for riders to store their luggage.

Individuals possessing the drive to start their own travel business and the inclination to interact with people would be best suited for this business endeavor. Since much time is spent on the road, the entrepreneur that enjoys driving would be the ideal candidate.

Learn how to start an airport shuttle business .

3. AMUSEMENT PARK

Amusement, or theme, parks feature rides, games, and entertainment options in an outdoor or indoor venue. Customers typically pay a single entry fee for access to the entire park. The successful amusement park model focuses on the customer's entire experience, offering a wide range of services and entertainment options including parking, trams, restaurant options, water parks, roller coasters, live animal attractions, stage shows, arcade games, attractive interactive landscaping, and family-friendly fun. The larger the property you own, the more entertainment choices you are able to offer your customers.

You must be a highly motivated individual ready to sink a large initial investment into the concept, design, and implementation of your amusement park. You may need extensive knowledge in the operation of rides, restaurant and guest services, landscaping design, business practices, and have significant leadership skills.

Learn how to start an amusement park .

4. BED AND BREAKFAST

A bed and breakfast business offers travelers an alternative to hotels and motels, by combining sleeping quarters with a full breakfast. Most bed and breakfasts also promise more unique, intimate settings than other lodging options.

Anyone who enjoys hosting others may be well-suited for owning a bed and breakfast business because guests come to B&Bs for a level of hospitality that hotels and motels don’t provide. Business owners should like talking with people, cooking meals, and making guests feel comfortable.

Learn how to start a bed and breakfast .

5. BIKE RENTAL BUSINESS

Bike rental businesses give customers—who are often, but not necessarily, tourists—bicycles for a short period. Bikes are generally rented for a few hours to recreationally explore the locality. But the customer base might also consist of college students on campus or others who rent for practical reasons. Your business might be a freestanding shop, part of a bike sales and service operation or associated with a hotel or other hospitality business.

Bike rental business owners should be mechanically adept since customers can be hard on bikes. Also, since bikes are often rented to explore the immediate area, you should be highly familiar with your home base and able to suggest tourist attractions. You should have an engaging personality and be motivated to deliver exceptional customer service.

Learn how to start a bike rental business .

6. BIKE TOUR COMPANY

Do you love exploring your home town or popular tourist destinations on your bike? Does it really make your day when you bring a friend along to see the sights? Operating a bike tour company may be right up your alley. Whether you are simply renting bicycles and maps for patrons to use on their own or providing week-long personalized guided tours that include meals and lodging, this can be a rewarding travel business.

If you are going to run a one-man show, you will need to be physically fit, have fantastic people skills, and enjoy managing the many facets of your business. If you are operating a large tourist attraction, the right owner will have a good background in business management with a focus on the service industry.

Learn how to start a bike tour company .

7. BOUTIQUE TOUR BUSINESS

This travel business idea differs from a traditional tour guide service in that the focus is not on the popular tourist destinations. Instead, it focuses more on unique and special experiences. Both local residents and tourists enjoy these types of tours/parties.

People like to do things that feel more authentic and consistent with what locals do versus just taking a sightseeing tour to see the major attractions. These can be very active experiences such as hiking, climbing, bungee-jumping, flying down a wire cable over the tree canopy, whitewater rafting and so much more. Many prefer such active experiences when compared to the traditional bus tours where tour guides describe things as the bus passes them by.

Learn how to start a boutique tour business .

Ready to form your LLC? Check out the  Top LLC Formation Services And, use our free tools to help start your business: Use our  Business Name Generator  for help brainstorming your new venture’s name Learn  how to form an LLC , one of the  best business structures  for travel businesses Use our free  business plan generator  to start planning your business today Get your unique logo with our free  Logo Maker  and start branding your business After finding your perfect idea learn how to  start a business

8. BUS TOUR BUSINESS

A bus tour business provides tours for tourists as well as locals. Tours of scenic and historical areas and other sites of interest are a valuable community service. Bus tours connect people with others for a shared experience. They also educate people about historical landmarks, local history, geography and other important aspects of your city and the surrounding area.

If you are looking to give people the opportunity to learn more about a locale while enjoying the company of others, a bus tour business is right for you. This is your chance to bring people closer together. Bus tours also enhance understanding and respect for cities, towns, landmarks and special sites. Bus tour customers gain a new appreciation for the area in which the tour is conducted.

Learn how to start a bus tour business .

9. CAMPGROUND

If you love the outdoors and some hard work, you could start a campground business. Whether you have land or are purchasing land, you could start enjoying the great outdoors and working for yourself as soon as you get everything set up. You'll provide a place for people who are passing through on their way to another destination and for those who want to enjoy some time connecting with nature. Campers use all sorts of shelters from tents to fully contained RVs.

Before you start a campground business, you'll need the knowledge and willingness it takes to do many things, including accounting, repairs, road maintenance, plumbing, electrical maintenance, and management. You may be able to farm some of these things out, but it is much more cost-effective to do these things yourself.

Learn how to start a campground .

10. CANOE & KAYAK RENTAL BUSINESS

Many people enjoy being on the water, but they either do not own a boat or want to go boating where they can't bring theirs. A canoe and kayak rental business lets people rent canoes and kayaks to take out on nearby waterways. Customers can take canoes out for as little as an hour or as long as a day or more.

Anyone who enjoys canoeing and kayaking may be well-suited to open a canoe and kayak rental business. Business owners also must be strong enough to move canoes and kayaks onshore.

Learn how to start a canoe & kayak rental business .

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Powered by godaddy.com, 11. car rental business.

Another one of many travel business ideas is a car rental company. A car rental business rents vehicles at affordable daily and weekly prices. All sorts of different parties are interested in car rentals. Common customers include business and leisure travelers, those whose vehicles are out of commission and businesses.

This business is ideal for someone who has a sincere interest in automobiles, automobile maintenance, and the driving experience.

Learn how to start a car rental business .

12. CORPORATE RETREAT CENTER

Many companies take employees on retreats for training, development, and team-building experiences. Corporate retreat center businesses offer a place for holding these company-sponsored retreats and frequently help companies plan their retreats.

Anyone who is organized and has strong interpersonal skills may enjoy running a corporate retreat center business. Hosting retreats requires balancing many different tasks, and there’s a constant conversation between the retreat center and the company sponsoring the retreat.

Learn how to start a corporate retreat center .

13. CRUISE LINE

A cruise line has one or several large boats designed to accommodate numerous fun-seeking individuals. This business is centered on providing guests with a good time. Cruise liners are a place for relaxation, socialization, and romance. Cruises are in-demand as they provide people with a fun and relaxing means of vacationing. Cruise lines offer all sorts of social activities on and off the ship. This business is a fantastic way to bring people closer to one another, bolster social ties, and provide people with a sense of belonging.

This is the ideal business or someone who is looking for a way to bring people together for a fun, rewarding and memorable experience. If you are a hospitable individual and enjoy providing people with a good time, you should consider starting a cruise line business. Furthermore, if you enjoy life on the water, good food and entertainment, a cruise ship business is worth considering.

Learn how to start a cruise line .

14. DAY SPA

Day spas provide a relaxing atmosphere and a variety of treatments designed to refresh and rejuvenate. Some of the most common services offered by smaller day spas are facials, massages, manicures and pedicures, waxing, electrolysis, and aromatherapy. Larger day spas with more complex facilities are able to offer additional options such as body wraps, mud baths, or hydrotherapy treatments.

This hospitality business is ideal for those who enjoy relating with people on a personal level to provide services that reduce stress, enhance beauty, and improve health.

Learn how to start a day spa .

15. ECOTOUR BUSINESS

Ecotourism is small scale, low impact tourism that offers travelers an opportunity to learn about the local flora, fauna, and culture. Unlike your standard tour guide service, the focus of ecotourism is to educate guests on how they can positively impact the environment and community they’re visiting. Tourists are able to immerse themselves in the culture and habitat, gaining an understanding of the positive impact each can have on the other. Ecological sustainability and responsibility are the heart of this educating and rewarding experience.

As many consumers ponder the environmental impact humans have had on our environment, there are many who have taken it upon themselves to get out and do something about it. They’ve made it their life’s mission to make positive strides, educating others along the way. Entrepreneurs who have made this their lives’ work and who truly enjoy igniting this passion in others would be best suited for this travel business venture.

Learn how to start an ecotour business .

16. FISHING CHARTER BUSINESS

Many people enjoy fishing, but few people have boats, tackle, and knowledge to go fishing far from shore. Fishing charter businesses take people on fishing trips that they otherwise wouldn’t be able to experience. These trips may range from going into swamps to venturing far offshore. Customers are usually allowed to keep any fish that they catch (assuming the fish are legal to keep).

Anyone who is passionate about fishing and enjoys sharing that passion with other people may be well-suited for running a fishing charter business. Customers expect fishing charter captains to be knowledgeable about and have a love for fishing, and sharing that knowledge and love helps ensure customers have a great time.

Learn how to start a fishing charter business .

17. GLAMPING BUSINESS

A glamping business is next on our comprehensive list of travel startup ideas. Glamping, or "glamorous camping," has taken England by storm and is quickly becoming popular within the United States. Although there aren’t any official statistics for glamping in the U.S., industry insiders have seen a big increase in demand recently. For entrepreneurs, this demand represents an exciting opportunity.

People who enjoy connecting with others and being outdoors may enjoy running a glamping business. Interpersonal skills are necessary because much of the business involves making guests feel welcome. A passion for the outdoors is helpful, for glamping is largely about connecting with nature.

Learn how to start a glamping business .

18. GOLF COURSE

Golf courses provide these people with a place to play the sport. Most courses are 9 or 18 holes, and they may have other amenities, such as clubhouses and pro shops. Anyone who is well-versed in a variety of aspects of business and enjoys golfing themselves may be qualified to run a golf course.

It’s important to have a broad business background because golf courses are multi-faceted businesses. Running one might include course maintenance, employee management, restaurant service, event hosting, and investment opportunities.

Learn how to start a golf course .

19. HAUNTED ATTRACTION

A haunted thrill park is any space designed to entice customers by offering a scary or thrilling experience. Americans spend about $7 billion on Halloween, and $300 million on haunted houses. Haunted thrill parks may be located in makeshift, temporary houses, corn mazes, or even old prisons or asylums. Typically, workers will dress up in costumes and pop out at customers to give them a fright. Props such as fake chainsaws or straight jackets are often used alongside fog machines and soundtracks of creepy noises.

There is an art to scaring people while keeping them safe, so an entrepreneur will have to coordinate the right scenes while ensuring workers understand how to handle the guests. Those who already have a love of haunted houses likely understand what's currently out there, and what people would like to see in the future.

Learn how to start a haunted attraction .

20. HELICOPTER TOUR BUSINESS

A helicopter tour business takes customers on short flights so they can view their city from a bird's-eye view. This is typically marketed as a more expensive service for a more adventurous clientele, and it adds a touch of excitement to any community.

This business is ideal for those already licensed to fly a helicopter, as there is a significant investment of time and money required to acquire a license. As such, it typically makes a good business for retired military personnel. Aside from a knowledge of helicopters, one of the best qualities for this business is to be a “people person,” as you must be able to charm customers before, during, and after the flight.

Learn how to start a helicopter tour business .

Start a Travel and Hospitality Business In Your State

21. hotel business.

A hotel can be any commercial building that charges money to travelers who need a room to stay. This can be anything from a standard multi-unit building to luxury stand-alone villas. As airline prices drop and the economy improves, corporate and personal travel continues to increase. The hotel industry generated just under $200 billion in revenue in 2016.

This startup idea is good for someone who enjoys the hospitality business. Those who run hotels have to be adept at catering to a number of different needs, so an owner will need to be flexible when it comes to how they respond to different travelers and consistent when it comes to delivering unparalleled customer service. From business travelers to young families, each guest will have their own priorities when it comes to where they stay.

Learn how to start a hotel business .

22. HOUSE-SITTING BUSINESS

House sitting is a service offered to customers who are out of town or otherwise away from the home. House sitters may look after pets, plants, or just the home itself. House sitters help the community in a number of ways. They can ward off criminals by simply being in the house, and they keep cats and dogs from having to be put into kennels.

This business is good for those who want to maintain people’s homes while they’re away. Ideally, house sitters should be animal lovers who know how to take care of a variety of different types of dogs and cats.

Learn how to start a house-sitting business .

23. KENNEL BUSINESS

Many dog owners, for a variety of reasons, don’t bring their dogs with them on trips. A kennel business gives dog owners a safe place to leave their dogs while they’re away. At a kennel, dogs have a safe place to rest, are fed and get exercise.

Anyone who loves dogs may be well-suited for owning a kennel business, as most of the work involves taking care of dogs. Owners often have to play with dogs, and they sometimes need to physically move stubborn pooches. Therefore, owners should be in decent physical condition.

Learn how to start a kennel business .

Boat owners need a place to keep their boats, both during the boating season and the off-season. While some boats can be kept on a trailer and launched, other vessels cannot -- and even boaters who have trailerable vessels often don’t want to have to launch and take out their boat every time they go out on the water.

A marina business offers boaters a place to keep their boats, docking or mooring them in the water during the boating season, and storing them on land for the rest of the year.

Learn how to start a marina .

25. PARTY BUS BUSINESS

One more of several popular travel business ideas is a party bus business. A party bus business will transport people for major events, so they don’t have to worry about the logistics of getting from place to place. While people on the bus are generally invited to consume alcohol (if they're of age), party buses don’t necessarily have to offer adult beverages as a part of their business model.

This business is excellent for someone who understands both the large and small aspects of major events. Clients want to be able to relax and feel as though they're taken care of, so they need someone who is confident in making decisions quickly and being able to think on the fly in the face of potential hiccups or even outright emergencies.

Learn how to start a party bus business .

26. PET-SITTING BUSINESS

Pet sitting businesses offer pet owners a variety of animal care services, including exercising their pets while they are at work. They also provide an affordable alternative to boarding pets at a kennel during vacations or business trips. Being able to remain in their own home environment can reduce separation anxiety for both pets and their owners.

This is a great business idea for animal lovers who enjoy walking and staying active. It’s ideal for people who prefer lower stress levels, since spending time with pets has been shown to reduce stress. Those who are compassionate and responsible, yet prefer to work alone and be their own bosses as well as make their own schedules thrive in this type of business.

Learn how to start a pet-sitting business .

27. SCOOTER RENTAL BUSINESS

A scooter rental business offers customers a fun and affordable option for short-term transportation. For most, scooters can be rented with hourly, half-day, and whole day rates.

If you have experience in retail sales or product rentals, knowledge of small engines, a strong work ethic, and a business mind, a scooter rental business could be your ticket to financial independence. Especially if you have a background in scooters and motorcycles—either as a rider, enthusiast, or from working in a motorbike retail business—your expertise could set you apart from the competition.

Learn how to start a scooter rental business .

28. SCUBA DIVING BUSINESS

Scuba diving affords an unparalleled experience with the underwater world. However, safe diving requires training, equipment, and often a guide. Scuba diving businesses provide divers with the training, equipment, and local knowledge they need to have a fun and safe time underwater.

While scuba diving businesses can generate sizable profits, most business owners don’t get into this type of work solely for the financial return on investment. Instead, they’re passionate scuba divers themselves and are drawn to the scuba lifestyle. They like the idea of making money doing a sport they love.

Learn how to start a scuba diving business .

29. SKI RESORT

Ski resorts are one of the main places people go for wintertime fun. Resorts offer skiing, snowboarding, equipment rentals and lessons. Many resorts also have concessions, a restaurant, a bar, and other amenities.

Someone with a diverse skillset and background in business may be well-suited for running a ski resort business. The multi-faceted nature of ski resorts requires knowledge of multiple aspects of running a business. For instance, running a ski resort business might include equipment maintenance, snowmaking decisions, concession management, and program creation.

Learn how to start a ski resort .

30. SKYDIVING BUSINESS

Customers of skydiving businesses receive access to the complete experience, either in tandem with an experienced jumper or solo. The entertainment package includes the airplane ride, all equipment, landing site—also known as the dropzone or DZ—and the leadership/coaching of a jumpmaster. Other products or services might also be offered through the business, from parachute training before the jump to photography or video production of the jump.

Most people who would consider starting such a business are experienced jumpers, but that’s not mandatory. You should, at a minimum, feel comfortable convincing partners or investors and officials of the wisdom of your plans and your skydiving business’ value to the community.

Learn how to start a skydiving business .

31. SNORKELING BUSINESS

A snorkeling business will typically sell or rent out various safety gear and snorkeling equipment to water-lovers of all ages. These travel businesses can also offer tours to their customers in addition to or instead of a physical store location.

Owners should ideally have an inherent love of the water, so they can introduce their passion for exploration to new generations of snorkelers. They should also enjoy working with people who may not know very much about how to use the equipment.

Learn how to start a snorkeling business .

32. SOUVENIR SHOP

As the owner of a souvenir shop, you’ll stock your retail store, cart or kiosk with an inventory of interest to tourists. Your offerings will reflect the demographics and socioeconomic strata of the market. For instance, if you’re at a vacation destination that draws young families, you might stock novelty trinkets, toys, t-shirts, candy, and gum. However, if you’ll attract more sophisticated travelers, you might sell pricier jewelry with a local slant -- ie, designed with stones or gems found in the region.

You can succeed if you know your market. You must be able to match the inventory with the needs of vacationers and at an affordable price point.

Learn how to start a souvenir shop .

33. SUMMER CAMP

Successful summer camp business owners respond to the needs of their customers and communities by developing curriculum and activities that focus on their specific interests, goals, and objectives. Traditional summer camps offer outdoor activities such as hiking, building campfires, and canoeing. Sleep-away camps offer food and lodging as well as trained supervision during physical and educational activities. Day camps do not include lodging and offer more specialized learning activities such as computer science, performing arts and music. Today, there are summer camp programs available for nearly every imaginable purpose, interest and need.

This business is a good choice for people who love teaching but prefer a beautiful natural setting to a formal classroom. High-energy individuals thrive on the combination of physical and mental activity this type of business provides. Creative people welcome the challenge of providing fun, interesting, and engaging songs, games, and educational activities for campers. Those who enjoy working with and enriching the lives of children and families experience a high level of job satisfaction within this industry.

Learn how to start a summer camp .

34. SURFING SCHOOL

Running a surf school and teaching surfing classes is a lifestyle with a dedication to the ocean water. It has the requirement to live on the coast of a country. The best places in America are the west coast of California and the islands of Hawaii. You may also find some decent surfing in other parts of the world such as Australia, Costa Rica, Mexico, and even in exotic places like Fiji and the beach areas of Sanya, China. No matter where you decide is best, you need to love the ocean water, work in a nice surfing spot, and want to teach people how to surf.

Surfers are people who enjoy the surfing lifestyle. Every day is a day at the beach when the waves are good. Surfers who want to teach others are even more special because they need to have patience when being an instructor for first-time learners. The best surfers enjoy daily surfing and catching good waves for them is a spiritual experience.

Learn how to start a surfing school .

35. TOUR COMPANY

Tour guide services are most often offered in cities large, world-famous cities and cities that have rich historical backgrounds. Guests can be taken on a tour by foot or by vehicle, depending upon the distance that will be covered during the tour.

The self-motivator with a thirst for knowledge who enjoys sharing what they’ve learned with others would do best owning a tour guide business.

Learn how to start a tour company .

Learn more about starting a business by visting the  U.S. Small Business Administration .

36. TRAVEL AGENCY

Most travel agencies earn revenue through commissions. Consumers often choose agencies because they help cut down on time needed to research various locations and book accommodations. A popular trend in the industry is online agencies, which operate mostly or exclusively online.

This business idea is perfect for individuals who are passionate about travel, love learning about and visiting new places, and are very detail-oriented. Travel agency owners have very flexible hours but usually only after they have an established book of clients.

Learn how to start a travel agency .

37. TRAVEL PHOTOGRAPHY BUSINESS

A travel photographer uses their camera to provide high-quality images to a variety of clients that may include websites, travel blogs, print magazines, television ads, and framed prints for sale. You will need to travel extensively to a variety of locations to deliver the landscapes, hotel rooms, and recreational shots that your clients are looking for. You'll work hard to develop a variety of clients who work with you to determine where your next shoot should be while your self-promotion and marketing will reach out to new clients.

A successful travel photographer will have extensive knowledge of how to use their camera to get the highest definition images containing dramatic landscapes. They will need to enjoy living on the road, hiking, and exploring distant locales to get the perfect shot. They should be sociable and able to toot their own horn in order to develop new clients and customers.

Learn how to start a travel photography business .

38. WALKING TOUR BUSINESS

Next on our list of travel business ideas is a walking tour business. Tourists are constantly in search of hidden gems and insider knowledge about their destination, which is what walking tour businesses provide. These travel businesses take tourists on guided explorations of an area, during which time tourists see both famous locations and lesser-known attractions while getting lots of local knowledge.

Most walking tours explore the area through a particular interest, and there are tours for all kinds of interests. For example, in New York City there are walking tour businesses that offer guided explorations of the city’s haunted locations, architecture and street art.

Learn how to start a walking tour business .

39. WATERPARK

Amusement parks are a popular vacation destination for families all over the world. Few things are more exhilarating than experiencing the rides, laughing and screaming as you make your way to the bottom. Couple that with water, and you have a family-friendly adventure for individuals of all ages.

Entrepreneurs with previous small business ownership or management would be best suited for this business venture. Innovators who enjoy a fast-paced atmosphere and are dedicated to reinvesting a portion of their profits can turn a small waterpark into a million-dollar enterprise in a matter of years.

Learn how to start a waterpark .

40. WINE TOUR BUSINESS

Wine tours educate people about grapes, fermentation, and flavor profiles. From varietals to harvesting techniques to the best way to taste the wine, tours are meant to be as informative as they are fun. These tours can help people appreciate all that goes into a single sip, and promote local businesses by exposing their product to more people.

This travel business is good for someone who already has a healthy interest in how vineyards work, and who enjoys teaching people in an entertaining way. Ideally, it should be far less about enjoying a good bottle of wine, and far more about being a good (and organized) educator.

Learn how to start a wine tour business .

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17 Innovative Tourism Business Ideas and Trends for 2024

In This Article: Trends to Inspire Your Tours and Activities

Gig-Tripping, Bleisure, and Skip-Gen Travel: From eco-conscious adventures to immersive culinary experiences, what are some of the top travel business ideas likely to appeal to travelers in 2024? And how can tour businesses capitalize on them?

It’s that time of year again; when we take a deep dive into the research into travel and tourism trends for the year ahead so you don’t have to. As well as scouring the travel press, talking to our partners, customers and contacts, and racking our own brains here at Rezgo, we’ve picked highlights from several influential research reports into tourism business trends for 2024. 

Even if you’re getting into the tour operator industry, there’s a lot of reasons to be optimistic. Read on to learn the tourism trends you can use to start your tour business in 2024.

Reasons to be cheerful about tourism in 2024

These findings were backed up by UNWTO’s latest Tourism Confidence Index survey of travel professionals. It found that “67% of tourism professionals indicating better or much better prospects for 2024 compared to 2023.”

According to the UNTWO, reasons to be optimistic in 2024 include:

• An uptick in the reopening of several source markets and destinations in Asia
• An increase in Chinese outbound and inbound tourism
• More travel to and around the Middle East and Africa through a unified tourist visa implemented by Gulf Cooperation Council (GCC) countries
• Strong outlook for travel to Europe, for example for the Paris Summer Olympics, and from the United States, backed by a strong US dollar

On the flip side, according to UNWTO findings, “Persisting inflation, high interest rates, volatile oil prices and disruptions to trade can continue to impact transport and accommodations costs in 2024.” In addition, if you have been having difficulties finding staff, you’re not alone. Many tourism businesses continue to face challenges filling vacancies to help them meet the steadily rising demand from travellers.

Overall though, 2024 promises an exciting array of tourism trends that cater to diverse interests and preferences. Let’s take a look at travel and tourism business ideas for 2024, with a focus on ideas for tours, events, activities and attractions that your travel business could use to attract new and existing customers alike. 

Trending tourism business ideas for 2024

1. sustainable tourism and ecotours.

According to the UNWTO report, many travellers will consider “sustainable practices and adaptability” when making their travel plans in 2024. They are not only interested in booking with tour companies that do business in a sustainable way, but they also want to travel in an eco-friendly way, seek out eco-friendly places to stay and book activities and tours with a sustainability element. This is backed up by Arival’s “ The 2024 U.S. Tour Taker ,” which found that nature tours and other “ecotours” are in high demand from US travelers in particular. 

Booking.com’s trends report for 2024 prompted the online travel marketplace to predict that ”the world of travel is poised for a sustainable makeover,” as travellers seek out eco-friendly places to stay and activities and locations with a sustainability element. TravelPulse reported that many travelers increasingly look to travel off season and seek out less well-known destinations to do their bit to try to decrease overtourism.

So-called “ecotours” let tourists enjoy a vacation while also learning about environmental and sustainability issues in a particular location. Some enable people to do something tangible to help, such as volunteering to plant trees or help to restore habitats. Many travelers these days also seek out “small footprint” or socially-responsible travel. This may not be an ecotour as such; it could just mean they favor tour companies that take steps to minimize the impact of their tours or incorporate a social responsibility element. Booking.com’s  Sustainable Travel Report 2023 found that 76 percent of travelers want to travel more sustainably in 2024. 

2. Train travel

From the “Flying Scotsman” to the “Orient Express,” there are few more romantic ways to travel than by train. However, train travel continues to overlap with other trends in our list, as it becomes more popular as a way to travel more sustainably by reducing car and air travel, traveling slower (unless we’re talking train travel in Japan) and for longer, as well as traveling to more countries on the same trip. Train travel as both a means to travel and see more of a destination continues to increase in popularity. Euromonitor International found that in 2024, “the fastest growing travel category worldwide is rail transport at 35.6 percent over 2023-2024.”

Train travel can also offer scenic views, comfortable travel with spacious seats, sleeping accommodations for longer or overnight trips, the opportunity to socialize with other travelers, and convenient access to city centers. Again overlapping with other trends, train travel also offers more immersive travel experiences and lets travelers see more of a country while mixing with locals. Many countries and rail companies, especially in Europe, offer passes that let travelers visit multiple places in one trip without leaving the ground.

3. Food and drink experiences 

Many of the reports we looked at highlighted culinary experiences as a trend for 2024. After all, who doesn’t like a good meal or drinks with friends? Many travellers want to combine their love of food with their love of travel. Food tours allow travellers to savour the authentic flavours of a destination while discovering, and literally getting a taste for, its cultural heritage. Activities such as cooking classes let travelers enjoy an even more immersive culinary experience. 

While winery tours have long been a favourite travel activity for wine lovers, an explosion of craft beer, vodka, gin and other drink producers provides a multitude of other opportunities for drink-related tours activities. They can cater as much to enthusiasts looking to indulge in the finer things in life, as true connoisseurs. Booking.com found that 78 percent of travellers want to experience new foods, and half go to the length of organizing trips around specific restaurants or dishes, including iconic dishes of particular destinations. And keep an eye on “wild-feasting”—a new trend where you not only eat locally-grown ingredients but forage for, and even cook, them in the wild.

4. Sports tourism

Sport is a passion for many people around the world, and travelers often like to combine their love of a particular sport or sports team with their passion for travel. In 2024, Europe hosts the Paris Summer Olympics and the soccer UEFA Euro 2024, while soccer lovers often travel to see their favourite team in England, Spain, Germany and the top European leagues. However, even smaller teams get a look in. The Netflix show Welcome to Wrexham has put the small Welsh town on the map after Hollywood stars Rob Mcelhenney and Ryan Reynolds bought the local soccer team.

As well as events like the Olympics, there are also annual events that attract global interest, such as the Super Bowl, the Tour de France and Formula One, which also has a hit TV show, Formula 1: Drive to Survive . A sporting, or other, event can provide a reason for people to visit a particular location, even if they don’t have tickets, to sample the atmosphere and explore the sights. 

5. Tours and experiences with locals

Immersing oneself in the local culture is made possible through tours or experiences led by knowledgeable locals. These insiders offer unique insights, hidden gems, and authentic encounters that enhance the overall travel experience. They help meet a growing demand for more immersive experiences that take travelers inside a location and culture and deepen their understanding of it. Hilton’s 2024 Trends Report  found that many travellers will prioritize experiences (85%), exploring the unknown, trying local food, and learning about the local culture.

Indigenous experiences are still a growing trend. Countries around the world, such as Canada, Australia and New Zealand, are making an increased effort to reverse past wrongs when it comes to treatment of Indigenous peoples, while also empowering Indigenous communities to take a lead in areas like travel and tourism. 

6. Transformational trips

A buzz phrase you heard a lot of in 2023 was “transformational retreat,” and 2024 looks likely to continue the trend. Booking.com’s 2024 travel trends report prompted them to label 2024 as a year that reinforced that “travel isn’t just an escape, but a catalyst for experiencing our best lives.”

A transformational trip is a travel experience designed around a specific activity, personal goal, or mental or physical health need. They can include retreats that cater to people who want to undergo a significant personal or spiritual transformation, or at least get away from it all in order to return refreshed. Retreats and activities include meditation, yoga, therapy, workshops, and other experiential practices. Most promote self-awareness, personal growth, and positive change, typically taking place in a secluded and peaceful setting and led by experienced facilitators or coaches. 

Wellness vacations have been a growing tourism business trend for some time, with demand accelerated by the pandemic. Tours that offer people the chance to pamper themselves and generally recalibrate are likely to be extremely popular for the foreseeable future.

7. Quiet travel

Not everyone is looking for a transformational outcome from their vacation; many simply want to unwind and enjoy some quality “me time.” Continuing the 2023 trend, many people still want to unplug and undertake a “digital detox.” They could be seeking respite from “doom scrolling” through social media and news feeds on their digital devices, or they just want a break from the glowing screens so prevalent in their day-to-day. 

Trips that encourage travelers to leave their devices at home will be popular, whether to a wellness retreats that bans or discourages digital devices, or an out-of-the-way destination that makes electronic communication extremely difficult. As well as digital detoxing, an example of a trend that is still going strong is forest bathing. This involves becoming immersed in nature to enhance physical, mental, and emotional well-being. It can be as simple as going for a long walk through a forest, or sitting by a lake and taking in the sights, sounds, and smells of the natural surroundings. Research has shown that forest bathing can reduce stress and anxiety, improve mood, and even boost the immune system and reduce blood pressure and heart rate.

8. Skip-gen travel

Deloitte’s “2024 travel industry outlook” report found that the baby boomer generation is getting back into the swing of things when it comes to traveling. This could be a factor in the emergence of a trend towards “skip generation trips” or skip-gen travel. This is when grandparents take their grandkids on vacation as a way for these two generations to bond and create some memories. Boomers can have more disposable income and more time, and parents with kids that can travel in this way appreciate the chance to travel on their own or just enjoy a break at home. All-inclusive resorts and other places with lots of activities for different generations are popular skip generation trips.

9. Solo travel 

Of course, not everyone has a posse to travel with or wants to travel with others. Solo travel continues to be very popular and has moved from a niche to a mainstream market. A Skyscanner report found that 40 per cent wanted to travel solo for mental health wellness reasons, while singles and divorcees ranked highly for being ready to take a solo trip. The report concludes: “There is no longer any stigma attached to taking a trip on your own, and many tour companies cater specifically to this market.”

Arival ’s 2024 U.S. Tour Taker report found that the preference for independent travel increases with age, with 38 percent of people over 55 preferring to go it alone, compared with 26 percent of the 18-34 group. ​This indicates that older, more experienced travelers, who are often more affluent, prefer small group and independent travel. ​Women travelling on their own or with other women also continues to be a growing trend, with a number of tour operators dedicated to women-only trips.

10. Frontier travel

While it may sound like something out of the script for the TV show Westworld , frontier travel is a new travel trend for 2024 that takes travelers into wilder, more unusual destinations off the beaten track. This could mean grand adventures like following in the footsteps of great explorers across the Drake Passage to Antarctica or up Everest. Or it could mean taking a guided group trip to hike to and camp in a remote location or journey down a river by kayak or canoe.

These trips need a certain element of adventure and excitement, challenging travelers to get out of their comfort zone. This ties in with the transformational trip trend above, as people seek experiences that they will not only remember forever, but that could change them forever.

11. Hush trips, workcations, and micro-cations

In our 2023 report we highlighted the trend toward “hush trips” (when remote workers take a workcation without telling their boss) and workcations, when people travel abroad with the intention of combining a vacation with work. This kind of travel continues to be popular, and accommodation providers—from hotels to Airbnb apartments—often boast of dedicated work areas and other facilities for remote workers.

Many such trips are “micro-cations,” short trips often taken close to home, often at the last minute. The micro-cation trend has continued to grow for the last few years, as people look for quick, convenient, and often budget-friendly getaways that don’t require a lot of planning. When you combine the acceptance of remote working among many more employers with a large number of people who left the office behind and didn’t miss it for a second, you have an opportunity to create workcation and hush trip experiences for digital nomads and remote workers.  

12. Traveling for “bleisure”

The tourism industry and travel press do love a good old portmanteau to describe the latest trend. Hot on the heels of workcations, the related trend of “bleisure” shows no sign of letting up. Bleisure is a name coined to describe the trend of business travellers tacking on some leisure time to the end of business trips or just taking their family along with them. Where a workcation is often a longer trip designed around work, the growth of bleisure trips reflects the fact that as business travel bounces back, people still want as much vacation time as they can get. 

Deloitte’s “2024 travel industry outlook” report found that corporations are more concerned with costs than COVID now, but “trips to build client relationships and support team collaboration remain key to business success.” In fact, the report found that “US corporate travel spend is still likely to finally pass the pre-pandemic line within the next year.”

13. Set-jetting

If you’ve ever wanted to visit the set of your favourite movie or TV show, you’re not alone. A top travel trend for 2023 that is continuing in 2024 is “set-jetting,” when travelers visit destinations primarily because they were featured in a popular movie, TV show, or book. According to research, 39 percent of travelers have booked trips to places featured on shows or movies ( Expedia ). While people have long been drawn to iconic movie locations, perhaps the earliest example of mass set-jetting was New Zealand’s tourism industry getting a huge boost after the country played a leading role in the “Lord of The Rings” movies. Fans of the “Outlander” books and TV series have also been making pilgrimages to Scotland to see the country that provides the backdrop for their favourite show.

People don’t just want to visit the actual physical set and filming location, but also just the cities or countries featured in a particular production. Popular shows where the location is as much the star of the show as the actors, such as “The Crown” (England,) “Emily in Paris” (Paris,) and “The White Lotus” (Sicily), have been credited with triggering a surge in demand for particular locations and experiences relating to the shows, such as a themed tour. And tour companies like Black Tomato have jumped on the trend to offer set-jetting itineraries .

14. Destination dupes

The economic upheaval we saw through 2022 and 2023 looks set to continue through 2024, . Inflation and cost of living rises mean while the desire to travel is still strong, many travelers will still have at least one eye on their budget. This has led to a new trend called destination dupes,  when people seek out trips to locations that offer similar experiences to well-known or preferred locations, but that are more cost-effective. 

Hotel giant Marriott commissioned a survey of over 14,000 travellers , and over 25 percent said they were choosing destination dupes in 2024. Examples of dupes include someone who lives in the US choosing a Canadian lake resort over an Italian Lakes destination. Here’s a good guide to popular holiday swaps for 2024 .

15. Coolcations

In the wake of rising temperatures and an increase in the number and intensity of wildfires in parts of North America, Europe and around the world, keeping cool is likely to be top of mind for many travelers in 2024—even among those who typically seek out the sun for their vacation.

Enter the “colocation.” Marriott’s survey found that over half of respondents would be considering climate change when planning their trips. Fifty-six percent said they were more interested in cooling down than baking in the sun. This makes areas like northern Europe a popular destination dupe as people look for similar attractions, such as culture, scenery, etc., to the hotter locations they might have chosen in the past but with a cooler climate.

16. Gig tripping

Just as the trend of people taking trips to sports and other events has grown, so too has this travel trend that is music to the ears of the travel industry. For example “swifties” from around the world are flocking to Taylor Swift concerts abroad, especially if tickets in their home country, especially the US, are hard to come by. CN Traveler called this the Swift Effect, as people travel to one-off gigs to see their favourite performer, as well as established (Glastonbury in the UK and Coachella in the US) and new (Untold in Romania) multi-day music festivals.

17. Sleep retreats

As we highlighted in our 2023 trends, everyone likes a good night’s sleep, especially on vacation, and the travel industry is waking up to the opportunities offered by a rise in “sleep tourism.” This trend continues to grow. Some travelers simply want a relaxing holiday with a comfortable bed and in an environment conducive to getting plenty of rest. For example, the Park Hyatt New York offers a stay in their  One Bedroom Sleep Suite by Bryte . Others are taking advantage of a growth in technology geared towards helping people get their eight hours a night, and are booking “sleep retreats.” Swedish bed brand Hastens opened a branded Sleep Spa , and the  HOTEL de LËN offers guests a “regenerative sleep experience.” Good night, sleep well.  

These are just a selection of travel business trends for 2024 that could open up new opportunities for your tour business. For example, we haven’t even touched on how technology is changing the travel industry. And don’t forget traditional travel experiences, or in-destination activities. The Arival report highlighted that sightseeing tours, “hop-on, hop-off” experiences, and other tried and tested travel experiences and ways of seeing the sights are still going strong.

How to take advantage of innovative tourism business ideas

In an ever-evolving landscape of travel and tourism, the trends for 2024 reflect a desire for authenticity, sustainability, and immersive experiences. From eco-conscious adventures to culinary escapades and everything in between, travelers are spoilt for choice when it comes to exploring the world in new and exciting ways. Embracing these trends promises to enrich the travel experience and create lasting memories for adventurers of all kinds.

The key to taking advantage of these innovative tourism business ideas and other tourism industry trends is to always be thinking of your next profitable business opportunity. Here are a few ways to keep on top of what’s new and interesting in the travel business:

Maintain an ideas file

Include those “out there” trends that seem absurd the first time you hear them. Think about some recent innovations that would have been dismissed with a laugh not that long ago: Self-driving cars, passenger space travel, drone deliveries… Even that Holy Grail of futuristic inventions, the personal jetpack, is getting closer to reality. All but the most outlandish trends are worth tracking in case there’s a germ of an idea for a new business opportunity in there.

Listen to your audience

Hang out in online travel discussion forums, on social media, and in other places where travelers gather to swap notes and ideas or express needs and dreams. You might uncover a new business idea no-one else has come across yet.

Follow your competitors

Monitor what your direct competitors and others in the tourism business are up to. Subscribe to every industry newsletter you can, including those of your competitors, to keep up with emerging trends and help with your business idea generation.

Solicit customer feedback

Be proactive in asking your customers for feedback. Don’t just ask them what they liked and didn’t like about their experience with your company; ask them if there’s anything they would like to do that they currently can’t. 

Invest in the right booking system

It goes without saying that every tour operator should offer online booking and take a mobile-first approach. Not doing both of those things makes taking advantage of the above trends very difficult. The customer experience starts the moment they enter your website. Online booking enables them to easily browse, book, and pay for tours anytime and from is anywhere. Learn more about how Rezgo booking software is  tailor-made for adventure companies.

At Rezgo, we always have our ear to the ground when it comes to the latest tourism trends and business opportunities. The Rezgo booking system is a comprehensive platform that enables you to become a more

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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22 Profitable Small Business Ideas in The Tourism Industry

Last Updated on May 26, 2024 by The Digital Travel Expert

Finding the best small business ideas might appear challenging initially, but with strategic foresight and groundwork, launching a business to augment your earnings—or transition into full-time entrepreneurship—becomes feasible. You might have a concept in mind already, but if you’re seeking guidance despite feeling prepared and enthusiastic, consider exploring the following categorized compilation of creative small business ideas to kickstart your journey.

Table of Contents

What Do Good Small Business Ideas Have in Common?

Great small business ideas in the travel and hospitality industry share the commonality of requiring minimal and straightforward training, allowing entrepreneurs to quickly grasp essential skills and start operations efficiently. They also typically demand low initial investment, enabling individuals to enter the market without significant financial burdens.

Furthermore, profitable small business travel niches from home often don’t involve the management of inventory or supplies, streamlining operations and reducing complexities associated with stock management and procurement. Additionally, they tend to operate entirely online, offering services remotely, which broadens their reach and eliminates the need for a physical presence, further reducing overhead costs.

Moreover, small online business ideas can be sustained with a lean team, minimizing employee expenses and allowing for greater flexibility in operations and decision-making processes. This aspect enhances the business’s adaptability to fluctuations in demand and market conditions, contributing to its long-term viability and success.

Important to know : Easy small business ideas from home or office based in the travel and hospitality industry share these five characteristics that make them accessible and viable ventures.

1) Require minimum and easy training : They typically demand minimal and uncomplicated training, allowing entrepreneurs to quickly acquire the necessary skills to operate.

2) Require low starting costs aka small capital : These ideas often entail low starting costs, enabling aspiring business owners to enter the market without significant financial barriers.

3) Don’t necessarily require handling inventory or supply management : Many of these businesses don’t involve managing inventory or supply chains, streamlining operations and reducing overhead costs.

4) Are online based aka remote presence : They rely heavily on online platforms, granting them a remote presence and facilitating access to a global customer base.

5) Can sustainably run by few people which reduces employee expenses : These ventures can be efficiently managed by a small team, minimizing the need for extensive employee hiring and thereby reducing payroll expenses.

22 Most Successful Small Business Ideas in the Travel and Hospitality Industry

1. Local Tour Guide Service

Requires knowledge of local attractions, history, and culture. Digital marketing skills needed include SEO for local search optimization, social media marketing to showcase experiences, and collaborating with travel influencers. Target audience: tourists and travelers. Average capital needed: $500-$2,000 for permits, marketing, and equipment.

2. Boutique Hotel

Requires property or leasing arrangement, interior design, and hospitality management skills. Digital marketing skills include SEO for hotel bookings , social media marketing for brand awareness, and influencer partnerships. Target audience: tourists seeking unique accommodation. Average capital needed: $50,000-$500,000 for property acquisition or renovation.

3. Airbnb Management Service

Requires knowledge of property management and customer service. Digital marketing skills needed for SEO to optimize listings, social media marketing for property promotion, and travel influencer collaborations for endorsements. Target audience: property owners seeking rental income. Average capital needed: $1,000-$5,000 for marketing and software tools.

4. Food Tour Business

Requires culinary knowledge and local connections with restaurants. Digital marketing skills include SEO for local food searches, social media marketing for travel and food experiences, and influencer partnerships. Target audience: food enthusiasts and tourists. Average capital needed: $1,000-$5,000 for permits, marketing, and tasting samples.

5. Online Travel Agency (OTA)

Requires a website, booking software, and knowledge of travel destinations. Digital marketing skills needed for success are SEO for tourism businesses , social media marketing for brand awareness, and influencer collaborations for endorsements. Target audience: travelers seeking accommodation and activities. Average capital needed: $5,000-$50,000 for website development, software, and marketing.

6. Language Translation Service

Requires fluency in multiple languages and translation software. Digital marketing skills include SEO for language services, social media marketing targeting multicultural audiences, and influencer collaborations with language influencers. Target audience: travelers needing language assistance. Average capital needed: $500-$2,000 for software and marketing.

7. Adventure Travel Company

Requires outdoor expertise and safety certifications. Digital travel marketing skills needed include SEO for adventure destinations, social media marketing to showcase experiences, and influencer partnerships. Target audience: adventure seekers and outdoor enthusiasts. Average capital needed: $5,000-$20,000 for permits, equipment, and marketing.

8. Destination Wedding Planning Service

Requires event planning experience and vendor connections. Digital marketing skills include SEO for wedding destinations, social media marketing for showcasing venues, and influencer collaborations with wedding influencers. Target audience: couples planning destination weddings. Average capital needed: $2,000-$10,000 for marketing and vendor deposits.

9. Pet-Friendly Accommodation

Requires pet-friendly property and knowledge of pet care. Digital marketing skills needed include SEO for pet-friendly searches, social media marketing targeting pet owners, and influencer partnerships with pet influencers. Target audience: travelers with pets. Average capital needed: $1,000-$5,000 for pet amenities and marketing.

10. Camping Equipment Rental Service

Requires inventory of camping gear and logistics for delivery. Digital marketing skills include SEO for camping equipment searches, social media marketing showcasing camping experiences, and influencer collaborations with outdoor enthusiasts. Target audience: campers and outdoor adventurers. Average capital needed: $5,000-$20,000 for inventory and marketing.

11. Vintage Travel Photography Studio

Requires photography equipment and studio space. Digital marketing skills needed include SEO for photography services, social media marketing showcasing travel photography, and influencer partnerships with travel photographers. Target audience: travelers seeking unique photography experiences . Average capital needed: $2,000-$10,000 for equipment and studio setup.

12. Wellness Retreat Organizer

Requires knowledge of wellness practices and event planning. Digital marketing skills include SEO for wellness retreats, social media marketing showcasing wellness experiences, and influencer partnerships with wellness influencers. Target audience: individuals seeking holistic wellness experiences. Average capital needed: $5,000-$50,000 for venue rental, instructors, and marketing.

13. Local Handcrafts and Souvenirs Shop

Requires sourcing local products and retail space. Digital marketing skills include SEO for local souvenirs, social media marketing showcasing handmade items, and working with influencers and successful travel bloggers . Target audience: tourists seeking authentic souvenirs. Average capital needed: $1,000-$10,000 for inventory and marketing.

14. Bed and Breakfast

Requires property or leasing arrangement and hospitality management skills. Digital marketing skills needed include SEO for bed and breakfast searches, social media marketing showcasing accommodations, and influencer partnerships. Target audience: travelers seeking cozy accommodations. Average capital needed: $10,000-$100,000 for property setup and marketing.

15. Historical Tours

Requires historical knowledge and tour guiding skills. Digital marketing skills include SEO for historical tours, social media marketing showcasing historical sites, and influencer partnerships with history enthusiasts. Target audience: history buffs and tourists. Average capital needed: $500-$5,000 for permits and marketing.

16. Niche Travel Blogging

Requires writing skills and travel experience. Digital marketing skills needed include SEO for travel content , social media marketing for audience engagement, and influencer collaborations with fellow travel bloggers. Target audience: travel enthusiasts seeking tips and inspiration. Your blog post content should address travel pain points . Average capital needed: $100-$1,000 for website setup and marketing.

17. Hostel or Backpacker Accommodation

Requires property or leasing arrangement and budget-friendly amenities. Digital marketing skills include SEO for hostel searches, social media marketing showcasing hostel experiences, and influencer partnerships with budget travel influencers. Target audience: budget-conscious travelers. Average capital needed: $10,000-$100,000 for property setup and marketing.

18. Scuba Diving Courses

Requires scuba diving certification and equipment. Digital marketing skills include SEO for scuba diving courses, social media marketing showcasing diving experiences, and influencer partnerships with adventure enthusiasts. Target audience: individuals interested in diving certification. Average capital needed: $5,000-$50,000 for equipment and marketing.

19. Artisanal and Food Tasting Tours

Requires culinary knowledge and local food connections. Digital marketing skills include SEO for food tasting tours, social media marketing showcasing food experiences, and influencer partnerships with food bloggers. Target audience: This travel niche attracts food enthusiasts and tourists. Average capital needed: $1,000-$5,000 for permits, tastings, and marketing.

20. RV Rental Service

Requires a fleet of RVs and logistics for rental management. Digital marketing skills include SEO for RV rentals, social media marketing showcasing RV experiences, and influencer partnerships with travel bloggers. Target audience: travelers seeking flexible accommodation. Average capital needed: $50,000-$500,000 for RV fleet and marketing.

21. Ethical Wildlife Tours

Requires knowledge of wildlife conservation and tour guiding skills. Digital marketing skills include SEO for wildlife tours, social media marketing showcasing ethical travel practices , and influencer partnerships with wildlife enthusiasts. Target audience: eco-conscious travelers. Average capital needed: $1,000-$10,000 for permits and marketing.

22. Travel Insurance Brokerage

Requires knowledge of insurance policies and regulatory requirements. Digital marketing skills include SEO for insurance searches, social media marketing educating on the importance of travel insurance, and influencer partnerships, and working with travel bloggers . Target audience: travelers seeking insurance coverage. Average capital needed: $5,000-$20,000 for licensing and marketing operations.

How Best Can You Define the Right Small Business Idea in Tourism?

Evaluating the perfect business idea before investing funds and time is crucial because it determines the success and sustainability of the venture. Without thorough evaluation, there’s a higher risk of financial loss, wasted time, and potential failure.

This step demands a comprehensive analysis as it involves assessing market demand , competition, feasibility, and alignment with personal goals and capabilities. Given the significant investment of resources and the potential long-term commitment, taking the time for careful evaluation minimizes risks and increases the likelihood of a successful business venture.

Here are four steps to consider when you want to start a business in the travel and hospitality sector.

1) Evaluate Your current skill set and unique personal strengths and experience.

Determining the best small business idea in the travel and hospitality industry requires a thorough assessment of your current skill set and credentials. Consider your expertise in areas such as customer service, event planning, or digital marketing, as well as any relevant certifications or qualifications you possess. For example, if you have experience in hotel management and a degree in hospitality, starting a boutique hotel or bed and breakfast might align well with your skills and background.

2) Be clear about the goals of your small business.

Next, clarify the goals of your small business to ensure alignment with your aspirations and objectives. Determine whether you aim to generate passive income, pursue a passion project, or build a scalable venture with growth potential. For instance, if your goal is to provide unique travel experiences while supporting local communities, launching a sustainable tourism business that promotes eco-friendly practices could be an ideal fit.

3) Research thoroughly your location and identify its unique selling point.

Study your location extensively to identify opportunities and challenges specific to your area and determine what business concepts are most feasible there. Make sure you understand your travel destination’s unique selling point . Analyze factors such as tourist attractions, local demographics, competition, and regulatory requirements. For instance, if your town is known for its scenic landscapes and outdoor activities, starting an adventure travel guide service or a glamping site might cater to the preferences of visitors seeking immersive experiences in nature.

4) Choose if you want to run an online-based business online or mortar and brick office.

Finally, decide whether you want to run your travel business online or in person, considering the advantages and limitations of each approach. Evaluate factors such as market demand, scalability, overhead costs, and your preference for flexibility or face-to-face interactions. For example, if you have strong digital marketing skills and prefer a location-independent lifestyle, launching an online travel agency or developing a virtual travel experiences platform could be a strategic choice.

What are The types of Business Forms?

Here’s an overview of each type of small business structure applicable to both travel businesses and any other ventures you choose to invest in.

1. Sole Proprietorships

• Sole proprietorships are the simplest form of business structure, owned and operated by a single individual.
• The owner has full control over decision-making and receives all profits but also bears full responsibility for any debts or liabilities.
• It’s easy and inexpensive to set up, requiring minimal legal formalities, but the owner’s personal assets are at risk in case of business losses or legal issues.
• Common examples include freelancers, consultants, and small retail businesses.

2. Partnerships

• Partnerships involve two or more individuals who share ownership and management responsibilities, as well as profits and losses.
• There are two main types: general partnerships, where partners share equally in profits and liabilities, and limited partnerships, where some partners have limited liability.
• Partnerships are relatively easy to establish and offer flexibility in management and decision-making, but they also entail shared risks and potential conflicts among partners.
• Common examples include law firms, accounting firms, and small medical practices.

3. Limited Liability Companies (LLCs)

• LLCs combine elements of partnerships and corporations, offering limited liability protection to owners while allowing flexibility in management and taxation.
• Owners of LLCs, known as members, are protected from personal liability for business debts and obligations.
• LLCs can choose to be taxed as pass-through entities, like partnerships, or as separate entities, like corporations, providing tax flexibility.
• Setting up an LLC involves filing articles of organization with the state and drafting an operating agreement outlining management structure and member responsibilities.

4. Corporations

• Corporations are legal entities separate from their owners, known as shareholders, who own shares of stock in the company.
• Corporations provide shareholders with limited liability protection, safeguarding their personal assets from business debts and liabilities in most cases.
• They have a more complex structure, with a board of directors overseeing major decisions and officers managing day-to-day operations.
• Corporations are subject to more regulatory requirements and taxation, including double taxation on corporate profits and dividends, but they offer opportunities for raising capital through the sale of stock.
• Common examples include large corporations like Google, Microsoft, and Coca-Cola.

Each business structure has its advantages and disadvantages, and the choice depends on factors such as liability protection, taxation, management preferences, and long-term growth plans. Consulting with legal and financial professionals is advisable when selecting the most suitable structure for a specific business.

How to Create a Business Plan For Your Small Tourism Business

A business plan includes key elements that need to be understood both by the shareholders and potential future investors:

1. Executive Summary : This succinctly summarizes the entire business plan, outlining the company’s mission, goals, and strategies. It’s important as it provides a snapshot of the business and serves as a quick reference for stakeholders.

2. Company Description : This section provides an overview of the business, including its history, structure, and legal status. It’s crucial for understanding the nature of the business and its place in the market.

3. Market Analysis : This involves researching the industry, target market, and competitors to identify opportunities and threats. It’s important for understanding the travel market dynamics and formulating effective strategies.

4. Organization and Management : This outlines the organizational structure, key personnel, and their roles. It’s essential for demonstrating the team’s capabilities and ensuring clarity in decision-making processes.

5. Products or Services : This details the products or services offered by the business, including their features, benefits, and unique selling points. It’s important for showcasing the value proposition and differentiation in the market.

6. Marketing and Sales Strategy : This outlines how the business plans to attract and retain customers, including pricing, distribution channels, and promotional activities. It’s crucial for generating revenue and building brand awareness. Having profitable small business ideas in mind is a good thing, but showing how your tourism small business idea will generate sustainable revenue is what will motivate potential investors to inject a considerable amount of funds.

7. Funding Request : This section, if applicable, specifies the funding needed to start or grow the business and how it will be used. It’s important for securing investment or loans to support the business’s operations and growth.

8. Financial Projections : This presents the financial forecasts, including income statements, cash flow statements, and balance sheets. It’s important for assessing the financial viability and sustainability of the business.

After coming up with one among the many possibly viable small business ideas, you will need to create a business plan for a travel company:

1. Begin with a comprehensive market analysis, researching the travel industry, target demographics, and competitors.

2. Clearly define the company’s mission, goals, and unique value proposition in the executive summary.

3. Detail the range of travel services offered, including tour packages, transportation, accommodation, and any additional offerings.

4. Develop a robust marketing and sales strategy, outlining how the company will attract customers through online and offline channels , partnerships, and promotional activities.

5. Provide financial projections, including startup costs, revenue forecasts, and break-even analysis, to demonstrate the business’s financial viability and potential for growth.

6. Finally, review and refine the business plan regularly to adapt to market changes and ensure alignment with the company’s objectives and strategies.

FAQ s| Tourism Business Ideas Small Business To Start

What is the most successful small business to start.

The most successful small business to start varies based on individual skills, interests, and market conditions. However, businesses in sectors like e-commerce, digital services, and niche consulting tend to have a high potential for success due to low overhead costs and broad market reach.

What is the easiest business to start right now?

The easiest business to start right now depends on factors like your skills, interests, and resources. Generally, service-based businesses with low overhead costs, such as consulting, freelancing, or online tutoring, are often considered relatively easy to start.

Which business is best to start for beginners in the tourism industry?

For beginners in the travel and hospitality industry, a travel consultancy or a travel niche blogging /vlogging business can be ideal due to their low barriers to entry, minimal startup costs, and potential for remote operations.

What’s the cheapest small business to start?

The cheapest small business to start varies depending on factors like industry, location, and personal skills, but typically service-based businesses requiring minimal equipment or inventory, such as consulting or freelancing, tend to have lower startup costs.

Why do Small Business Ideas for Teens matter?

Small business ideas for younger aka future successful entrepreneurs are important for parents who want to educate future entrepreneurs because:

1. Hands-on Experience : Engaging in small business ventures provides teens with practical, hands-on experience in entrepreneurship, allowing them to learn valuable skills like financial management, marketing, and customer service from a young age.

2. Creativity and Innovation : Encouraging teens to explore business ideas fosters creativity and innovation as they brainstorm unique product or service concepts, develop business plans, and experiment with different strategies to attract customers.

3. Financial Literacy : Running a small business teaches teens important financial literacy skills , including budgeting, managing expenses, tracking revenue, and understanding profit margins, which are essential for long-term financial success.

4. Problem-Solving Skills : Entrepreneurship involves overcoming challenges and solving problems, and by starting their own businesses, teens learn how to navigate obstacles, adapt to changing circumstances, and find creative solutions to problems they encounter.

5. Confidence and Independence : Successfully launching and managing a small business can boost teens’ confidence and sense of independence, empowering them to take initiative, set goals, and pursue their passions with determination and resilience.

Overall, business ideas for teenagers provide a valuable educational opportunity for parents to instill important entrepreneurial skills and mindset in their children, preparing them for future success in both their personal and professional lives.

More resources on business ideas to explore

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