tour operator business plan template

Step-by-step guide to creating a tour operator business plan [template included]

By Kevin Tjoe — 13 Jan 2022

Business plan   Business set-up

Updated July 2023 – Ready to take the plunge and launch that tour company or adventure travel business you’ve been envisioning? Before you start welcoming guests, the best first step is always to build a detailed business plan. 

A tour operator business plan is more than just a formality; it is the compass that will navigate your business’s journey. A well-structured business plan for a tour operator provides the framework for transforming your vision into a thriving and sustainable business. It will help you clarify your goals, streamline your operations, and make informed decisions.

Let’s explore the immense value of a clear tour operator business plan as well as the most important elements to consider in this comprehensive document. 

Why create a business plan?

Crafting a business plan allows you to lay the groundwork for your tour operator business effectively. Whether you plan to help travelers make travel plans or to provide amazing tourism experiences, your business plan will serve a couple of key purposes:

• You can hit the ground running with a plan in place, and goals to work towards in the long term.
• You’ll have a quality business case to use if you’re applying for loans or grants.
• You can point your start-up resources, such as cash flow and staff, where they’ll provide the most benefit. This is particularly important if you’re starting with a tight budget.
• You’ll also have a ‘roadmap’ to help you navigate through the inevitable challenges, obstacles, and surprises in business!

Key elements of a tour operator business plan

In order to understand how to set up a tour operator business, you’ll first need to learn the key elements of a tour operator business plan.

1. Business overview

This section of your tour operator/ tour agency business plan provides a holistic snapshot of your company, offering readers a clear understanding of your business’s identity. Ideally, it should include the following:

• Business Name: Your business name should resonate with your target audience, conveying the essence of your offerings and the unique experiences you promise to deliver. Ensure it is memorable, evocative, and future-proof.
• Location: Detail the physical location of your tour operator business. Your location can influence your target market and the types of tours you can offer. Be specific about your base of operations and, if applicable, mention any satellite offices or future expansion plans.
• History: Describe the story behind your tour company’s inception. Share the passion and inspiration that sparked your journey into the travel and tourism industry, and ensure that it aligns with your brand values. 
• Ownership Structure: Clarify the legal structure of your tour operator business. Are you a sole proprietorship, a partnership, a limited liability company, or a corporation? Describe the ownership arrangement and highlight the key stakeholders involved in the venture. 
• Assets and Debts: Provide an overview of your company’s assets and debts. This includes tangible assets such as vehicles, equipment, and office space, as well as intangible assets like intellectual property and brand equity. If applicable, disclose any outstanding debts or financial obligations that may impact your business’s financial health and ability to grow.

2. Market analysis

Start by defining your target market. Are you catering to adventure-seeking travelers, history enthusiasts, or nature lovers? Consider their demographics, interests, and spending behavior. Research industry trends and analyze competitors to gain insights into their strengths and weaknesses. This will help you identify opportunities and potential gaps in the market that your business can fill.

In addition, study the external factors that could impact your business, such as seasonal fluctuations, economic conditions, and any regulatory requirements specific to the tourism industry.

3. Tour offerings

Crafting compelling and diverse tour offerings is at the heart of your tour operator business. Consider the unique experiences and attractions your target market seeks. Develop a range of tour packages that cater to different preferences and budget levels.

Your tours should not only showcase the best of the destination but also provide memorable and immersive experiences. Whether it’s organizing guided city tours, thrilling adventure expeditions, or cultural explorations, your offerings should reflect your passion for travel and your commitment to creating unforgettable memories for your customers.

Use your tour operator/ tour agency business plan to emphasize what sets your tours apart from the competition. Whether it’s exclusive access to hidden gems, knowledgeable guides, or sustainable practices, highlight the value that customers will gain from choosing your services.

4. Marketing strategy

Successful businesses have strong brands, so your business plan should set out branding guidelines . Consider the following key elements when coming up with a strategy that will guide how you should start marketing your tour business:

• Branding Guidelines: Outline your branding guidelines, including your brand’s visual identity, mission statement, core values, and brand voice. Emphasize consistency across all touchpoints, from your website and social media platforms to your tour brochures and customer interactions. 
• Advertising Channels: Identify the advertising channels that best align with your target audience and budget. Consider a mix of online and offline channels to reach potential customers effectively. Online channels may include pay-per-click (PPC) advertising, display ads, and sponsored content on travel websites. Offline channels could involve partnering with local travel agencies, and tourism boards, or participating in travel trade shows and events. 
• Social Media Channels: Social media is a powerful tool for connecting with travelers and building a loyal community around your brand. Engage users with captivating visual content, compelling storytelling, and interactive posts that evoke a sense of wanderlust. Utilize platforms like Instagram, Facebook, Twitter, and YouTube to share breathtaking photos, behind-the-scenes glimpses, and testimonials from satisfied customers.
• Customer Reviews and Testimonials: Encourage satisfied customers to share their stories and feedback on platforms like Google Reviews, TripAdvisor, and your website. Positive reviews build credibility and serve as powerful social proof, enticing potential travelers to choose your tours with confidence. Respond promptly and graciously to all reviews, demonstrating your commitment to customer satisfaction.

• Content Marketing: Create valuable and informative content that educates travelers about your destination, highlights unique aspects of your tours, and offers travel tips and insights. Utilize blog posts, videos, podcasts, and downloadable guides to establish your tour operator business as a trusted authority in the travel industry.
• Partnerships and Collaborations: Consider strategic partnerships with complementary businesses in the travel and hospitality industry. Collaborate with local hotels, restaurants, and activity providers to create enticing package deals that appeal to travelers seeking a holistic experience. This is especially important if you are considering creating an international travel agency business plan, as collaborations can help broaden your reach.

5. Operations and management

The operations and management section of your tour operator business plan delves into the practical aspects that keep your business running smoothly and efficiently. This nitty-gritty exploration ensures that every aspect of your tour company is well-organized, legally compliant, and focused on delivering exceptional experiences to your customers. 

Here are the key components to include in this section:

• Business and Legal Structure: Clearly outline your chosen business and legal structure. Whether you are operating as a sole proprietorship, a partnership, a limited liability company (LLC), or a corporation, this information provides a framework for your business’s governance and responsibilities.
• Risk Management and Workplace Health & Safety Plans: As a tour operator, the safety and well-being of your guests are paramount. Detail your risk management procedures and workplace health & safety plans to mitigate potential hazards and ensure a secure experience for travelers. Assess the risks associated with different tours and activities, develop contingency plans, and implement safety protocols that align with industry best practices.
• Terms and Conditions: Craft comprehensive and transparent terms and conditions for your tour offerings. Clearly communicate cancellation policies, refund procedures, and any limitations or requirements for participants. 
• Staff Scheduling and Training: Outline your staff scheduling procedures to ensure smooth operations and optimal customer service. Consider investing in staff training programs that equip your team with the knowledge and skills to offer insightful commentary, excellent customer care, and handle unforeseen situations professionally. Furthermore, you can optimize the utilization of Full-Time Equivalent (FTE)  tool to help you gauge the potential productivity of your staff and business.
• Reservation System: In the digital age, a robust and secure reservation system like Rezdy is vital for streamlining your booking process for both you and your customers. Invest in a reliable booking software that allows real-time availability updates, secure payment processing, and automated customer confirmations.

• Distribution Channels and Partnerships: Consider the distribution channels that will help grow your bookings and expand your market reach. Will you collaborate with online travel agencies (OTAs) or travel agents to promote your tours? Explore partnerships with local businesses, such as hotels and restaurants, to create enticing package deals. 
• Customer Relationship Management (CRM): A well-organized CRM system enables you to build lasting relationships with your customers. Implement CRM software to keep track of customer interactions, preferences, and feedback. Personalize your marketing efforts and start building customer loyalty through targeted promotions and personalized offers.

6. Financial plan

The financial plan is a key component of your tour operator business plan. It outlines your revenue streams, costs, and projected financial performance over time. A well-structured financial plan demonstrates the viability of your business and helps you secure funding if needed.

Start by estimating your startup costs, including equipment, licenses, marketing, and initial staff training. Calculate the expected cash flow, factoring in the seasonality of the tourism industry. Identify the pricing strategy for your tours, ensuring that it covers your expenses while remaining competitive in the market.

Create financial projections for at least the first three to five years, considering both conservative and optimistic scenarios. This will enable you to anticipate potential challenges and make informed decisions that will help you with growing your tour business.

Remember to regularly review and update your financial plan as your business progresses. Monitoring actual financial performance against projections will help you make timely adjustments and stay on track towards achieving your business goals.

Ready to start building your business plan as a tour operator?

Download the free all-in-one checklist for easy reference.

Getting your tour business off the ground

Now that you have an effective business plan in place, it’s important to ensure your business has the right software.

Online booking software for tour operators like Rezdy is designed to equip your business for success. It includes multiple features integrated into the system, which allows you to reduce your overall admin duties. Some of these tools include real-time availability to avoid double bookings, automatic customer updates and reminders, and secure payment processes.

Furthermore, Rezdy also offers a channel manager platform that connects your business to thousands of resellers instantly. Joining Rezdy Marketplace is as simple as listing your products and setting your commission rates. From there, you can let resellers on the platform promote and sell your services to their customers.

Set your business up for success with Rezdy

Set your business up for success with a FREE 21-day trial or alternatively, book a demo to learn more about Rezdy and our products!

If you enjoyed this article then make sure to follow the Rezdy blog . There are a lot of marketing tools and tour operator tips designed with businesses like yours in mind.

Enjoy a 21-day free trial to take a look around and see if we are a good fit for your business.

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Tour Operator Business Plan Template

• Written by Dave Lavinsky

Table of Contents

If you’re looking to create a tour operator business plan, you’ve come to the right place!

Over the past 25 years, the PlanPros team has helped over 1 million entrepreneurs and business owners write business plans….and many of them have started and grown successful tour operator businesses.

Tour Operator Business Plan Example

Below is our tour operator business plan template and sample plan:  

I. Executive Summary

Company overview.

At PanoramaQuest Adventures, we specialize in providing meticulously curated adventure tours that promise unparalleled experiences in the breathtaking landscapes of Prescott. Our company stands out due to our unparalleled dedication to delivering tours that deeply resonate with our clients’ personal interests and desires. We are situated in Prescott, where we have the privilege of accessing some of the most coveted natural wonders. Our tours are crafted with a focus on exclusivity and personalization, ensuring each itinerary is as unique as our clients. Our local guides enrich every tour with their extensive knowledge of the region, making each adventure not just a journey, but a story filled with rich narratives about the history, flora, and fauna of the area.

Success Factors

Our success at PanoramaQuest Adventures is attributed to our exceptional tour arrangements, innovative use of technology, and a steadfast commitment to sustainability. These factors have not only set us apart in the competitive landscape but have also fostered a strong connection with eco-conscious clients. Our exceptional local guides, personalized itineraries, and the educational component of our tours have significantly contributed to our accomplishments to date, establishing us as a leader in delivering experiences that are both adventurous and enlightening.

Industry Analysis

The adventure tourism industry is witnessing a significant upswing, driven by a growing inclination towards unique and eco-friendly travel experiences. This trend is particularly pronounced in areas like Prescott, known for its natural beauty and outdoor recreational opportunities. The industry’s growth is further fueled by technological advancements that enhance customer experiences and operational efficiencies. However, the competitive landscape is becoming increasingly crowded, making innovation and sustainability key differentiators for businesses looking to capture the attention of eco-conscious travelers. In this context, PanoramaQuest Adventures is well-positioned to leverage these industry dynamics, thanks to our focus on personalized, sustainable adventure tours and the use of technology to streamline our operations and enhance our offerings.

Customer Analysis

Our target customers are individuals and groups with a passion for adventure and a deep appreciation for nature. They are typically eco-conscious travelers who value experiences that are not only thrilling but also sustainable and educational. Our clients seek personalized adventures that go beyond conventional tourism, looking for opportunities to connect with nature in a meaningful way. This demographic is willing to invest in high-quality, unique travel experiences that align with their values of environmental stewardship and personal growth. Catering to this audience, PanoramaQuest Adventures designs tours that fulfill these desires, setting us apart in the marketplace and driving our customer acquisition and retention strategies.

Competitive Analysis

Direct Competitors: – AdventureCo: Offers a wide range of outdoor activities but lacks the personalized and educational focus of our tours. – NatureExcursions: Specializes in nature tours but with less emphasis on sustainability and local culture. – EcoTrails: Focuses on eco-friendly tours but does not provide the same level of customization and personal attention that we do.

Our competitive advantage lies in our unique approach to curating adventure experiences that are deeply personalized and imbued with local knowledge and sustainability. Unlike our competitors, we combine adventure with education and environmental stewardship, providing our clients with experiences that are both enriching and responsible.

Marketing Plan

Our marketing strategy revolves around highlighting our unique offerings in adventure tours, including personalized itineraries, local expertise, and a commitment to sustainability. We offer a range of products and services tailored to the preferences of our target market, with pricing structured to reflect the premium value of our unique, customized experiences. Our promotions plan is focused on leveraging social media, local advertising, and email marketing to reach our target audience. We emphasize the uniqueness of our tours, the expertise of our guides, and our dedication to sustainability in all our marketing materials, aiming to attract clients who share our values and are looking for exceptional adventure travel experiences.

Operations Plan

Our operations are centered around delivering exceptional customer service, meticulously planning and coordinating tours, and efficiently managing day-to-day administrative and financial tasks. Key operational processes include managing customer inquiries, designing and updating tour packages based on market research, coordinating with local vendors, and ensuring compliance with safety and regulatory standards. Our milestones include expanding our tour offerings, implementing cutting-edge technology solutions for operational efficiency, and achieving significant growth in customer satisfaction and financial performance. Through continuous improvement and a focus on operational excellence, we aim to solidify our position as a leader in the adventure tourism industry.

Management Team

Our management team is composed of seasoned professionals with extensive experience in the travel and tourism industry. This includes experts in tour planning, customer service, marketing, and financial management, all of whom share a passion for adventure and a commitment to sustainability. Our collective expertise ensures that PanoramaQuest Adventures operates at the highest standards, with a focus on delivering unparalleled experiences to our clients while maintaining a strong and sustainable business model.

Financial Plan

To achieve our growth goals, PanoramaQuest Adventures requires strategic investment in marketing, technology, and operational infrastructure. This funding will enable us to expand our tour offerings, enhance our operational efficiencies, and increase our market reach, ultimately leading to increased revenue and profitability. Our financial strategy is designed to ensure the long-term sustainability of our business while maximizing returns for our investors.

Below is an overview of our expected financial performance over the next five years:

II. Company Overview

PanoramaQuest Adventures is a vibrant new Tour Operator based in the heart of Prescott, AZ. As a local tour operator, we have observed a gap in the market for high-quality tour services and are here to fill that void. Our mission is to provide unparalleled experiences for our customers, ensuring they have unforgettable adventures in and around Prescott.

At PanoramaQuest Adventures, we pride ourselves on offering a wide range of products and services tailored to meet the needs of every traveler. Our offerings include customized tours that cater to the unique preferences of our clients, transportation arrangements to ensure seamless travel experiences, accommodation reservations at the best places, and guided tours and activities that bring the beauty of Prescott to life. Additionally, we provide travel insurance and assistance to guarantee our customers’ peace of mind while exploring with us. Our goal is to create hassle-free, memorable travel experiences for all our clients.

Our operations are strategically located in Prescott, AZ, allowing us to serve our customers with ease and efficiency. This location not only enables us to offer tours and experiences that showcase the best of Prescott but also positions us as a convenient choice for locals and visitors alike seeking adventure and exploration in the area.

PanoramaQuest Adventures stands out from the competition for several reasons. Our founder brings to the table a wealth of experience from previously running a successful tour operator, which ensures that we are well-versed in the intricacies of the travel and tourism industry. Furthermore, our commitment to providing superior tour arrangements and experiences makes us the preferred choice for those looking for quality and memorable adventures in Prescott.

Since our inception on January 4, 2024, PanoramaQuest Adventures has been on a steady path of growth and accomplishment. We are a Limited Liability Company, which underscores our professional commitment to our business and our customers. Among our key achievements to date are the development of our company name and logo, which have become symbols of quality and trust in the local tourism industry. Additionally, we have secured a prime location for our operations, further solidifying our presence in the market and our commitment to being at the forefront of offering exceptional travel experiences in Prescott, AZ.

III. Industry Analysis

The Tour Operator industry in the United States is a thriving sector, with a current market size estimated at over $12 billion. This industry encompasses a wide range of businesses that organize and conduct tours for individuals and groups, covering various destinations and activities.

Market research projects significant growth in the Tour Operator industry in the coming years, with a compound annual growth rate (CAGR) of approximately 5% expected over the next five years. This growth is driven by factors such as increasing disposable incomes, growing interest in experiential travel, and the rising popularity of adventure tourism.

These trends bode well for PanoramaQuest Adventures, a new Tour Operator serving customers in Prescott, AZ. As more travelers seek unique and immersive experiences, there is a growing demand for specialized tour operators that offer personalized and off-the-beaten-path adventures. By tapping into this trend, PanoramaQuest Adventures is well-positioned to capitalize on the expanding market and carve out a niche for itself in the industry.

IV. Customer Analysis

Below is a description of our target customers and their core needs.

Target Customers

We will target local residents seeking to explore their own backyard with fresh eyes and a sense of adventure. This demographic is often eager to discover hidden gems within their vicinity and participate in unique local experiences. By focusing on this segment, we will tailor our adventures to highlight the unparalleled beauty and intrigue of Prescott, ensuring our tours resonate deeply with those who call this area home.

Adventure-seeking tourists and outdoor enthusiasts will also form a significant portion of our customer base. These individuals are drawn to Prescott for its natural beauty, including its expansive trails, scenic landscapes, and outdoor recreational activities. We will offer specialized tours that cater to varying levels of adventure and exploration, ensuring each guest experiences the thrill of discovery and adventure that Prescott has to offer.

In addition to local residents and outdoor enthusiasts, we will also focus on serving educational institutions and corporate groups looking for team-building activities and educational excursions. These tours will be designed to foster teamwork, leadership, and learning in an outdoor setting, providing a unique alternative to traditional classroom or office-based team-building exercises. This approach will not only broaden our market reach but also enhance our contribution to community development and corporate wellness.

Customer Needs

PanoramaQuest Adventures caters to the growing demand for high-quality tours among residents who crave exceptional experiences. Customers can expect meticulously planned journeys that not only meet but exceed their expectations for adventure and exploration. The focus on quality ensures every aspect of the tour, from the destinations chosen to the comfort of transportation, is top-notch.

In addition to offering high-quality tours, PanoramaQuest Adventures understands the value of providing personalized experiences. Customers have diverse interests and preferences, which the company accommodates by offering customizable tour options. This flexibility allows individuals to tailor their adventures, whether they seek the thrill of outdoor activities or the tranquility of scenic landscapes, ensuring their needs and desires are fully met.

Recognizing the importance of knowledgeable guidance, PanoramaQuest Adventures ensures that all tours are led by experienced and passionate guides. These professionals enhance the customer experience by sharing insightful information and ensuring safety throughout the journey. Customers can rely on these guides to discover hidden gems and engage in meaningful interactions that enrich their overall experience.

V. Competitive Analysis

Direct competitors.

PanoramaQuest Adventures’s competitors include the following companies.

HomeTowne Cruise & Tour Center  offers a variety of travel services, including cruise bookings, guided tours, and customized vacation planning. They cater to a wide range of customers looking for both luxury and budget-friendly travel options. Their price points vary significantly based on the type of travel package, destination, and duration of the trip, providing flexibility to meet the budget needs of various customers.

HomeTowne Cruise & Tour Center operates primarily within the Prescott area but has a reach that extends to international destinations through their cruise and tour partners. This geographical flexibility allows them to serve a broad customer base. The company’s key strengths include a personalized approach to travel planning and a wide selection of travel options. However, their reliance on third-party providers can sometimes lead to inconsistencies in the quality of the customer experience.

Cruise Planners – Randi Coleman Meltzer  specializes in cruise vacations but also offers a range of related travel services such as hotel bookings, flight reservations, and land tours. They work with a diverse set of customers, from individuals and families to groups, looking for seamless vacation planning. Pricing is competitive, with options for various budget ranges, including exclusive deals and discounts on cruises.

Located in Prescott, AZ, Cruise Planners – Randi Coleman Meltzer serves customers both locally and nationally, leveraging their affiliation with American Express to offer special perks and benefits. The company’s strengths lie in its comprehensive and tailor-made travel solutions and strong customer service. However, their focus on cruises might limit options for customers interested in other types of travel experiences.

Prescott Ebike Rentals & Tours  focuses on providing electric bike rentals and guided tours around the Prescott area. They offer unique outdoor recreational experiences, targeting customers interested in eco-friendly transportation and exploring local sights. Their pricing is transparent and competitive, providing hourly, half-day, and full-day rental options to accommodate different schedules and budgets.

This company operates exclusively in Prescott, AZ, capitalizing on the region’s scenic beauty and appeal to outdoor enthusiasts. Prescott Ebike Rentals & Tours excels in offering personalized and engaging local tours. However, their niche market focus and reliance on favorable weather conditions could be seen as limitations compared to more diversified travel service providers.

Competitive Advantages

At PanoramaQuest Adventures, we pride ourselves on offering superior tour arrangements compared to our competition. This commitment to excellence is rooted in our unique approach to curating experiences that resonate deeply with each traveler’s personal interests and desires. We understand that the essence of adventure lies in the details, which is why we meticulously plan every aspect of our tours to ensure they exceed expectations. From exclusive access to some of Prescott’s most coveted natural wonders to personalized itineraries that cater to the individual preferences of our clients, our tours are designed to deliver unparalleled experiences. Our knowledgeable guides, who are locals with extensive expertise in the region’s history, flora, and fauna, enhance the journey by bringing each destination to life with rich storytelling and insights.

In addition to our exceptional tour arrangements, we possess a competitive edge through our innovative use of technology and commitment to sustainability. We leverage cutting-edge tools to streamline booking processes and enhance tour experiences, making adventure more accessible and enjoyable for our clients. Our dedication to preserving the natural beauty of Prescott is evident in the eco-friendly practices we embed in our operations and the educational components we incorporate into our tours. This not only positions us as a responsible choice for eco-conscious travelers but also enriches our tours by fostering a deeper connection and appreciation for the environment among our clients. With PanoramaQuest Adventures, clients can expect a blend of adventure, education, and sustainability that sets us apart in the travel and tourism industry.

VI. Marketing Plan

Our marketing plan, included below, details our products/services, pricing and promotions plan.

Products, Services & Pricing

PanoramaQuest Adventures offers a comprehensive range of services tailored to meet the unique needs of each traveler. At the heart of their offerings are Customized Tours, which allow clients to build their dream vacations with the guidance of experienced professionals. These tours are designed to cater specifically to the interests and desires of the traveler, ensuring a personalized experience. The average selling price for these Customized Tours depends on the duration, destination, and specific requests made by the client, but generally starts around $500 and can go up significantly based on the intricacies and luxury level of the tour.

In addition to Customized Tours, PanoramaQuest Adventures facilitates Transportation Arrangements for their clients. This service is crucial for a seamless travel experience, connecting various points of interest with ease and comfort. Whether it’s airport transfers, car rentals, or private chauffeur services, PanoramaQuest ensures that all transportation needs are handled efficiently. Prices for Transportation Arrangements vary depending on the type of transportation and distance covered, with airport transfers starting from $50 and upwards.

Understanding the importance of comfortable and convenient lodging, PanoramaQuest Adventures also takes care of Accommodation Reservations. From luxury resorts to cozy bed and breakfasts, they can book a wide range of accommodation options to suit any preference and budget. The cost of this service is reflective of the accommodation’s standard and location, with hotel reservations starting at around $100 per night.

For those looking to explore their destination with local insight, PanoramaQuest Adventures provides Guided Tours and Activities. These tours are led by knowledgeable guides who can offer in-depth information about the history, culture, and natural beauty of the area. Activities can range from hiking and biking to cultural tours and wine tastings. Prices for these guided experiences start at $75 per person, varying based on the activity’s nature and duration.

Last but not least, recognizing the importance of safety and peace of mind while traveling, PanoramaQuest Adventures offers Travel Insurance and Assistance. This essential service covers unexpected events such as trip cancellations, medical emergencies, and luggage loss. The cost of Travel Insurance and Assistance starts at $25, depending on the length of the trip and coverage level chosen by the traveler.

In summary, PanoramaQuest Adventures stands out by offering a full suite of travel services tailored to individual needs and preferences. Their dedication to creating memorable, hassle-free experiences is reflected in their diverse offerings and competitive pricing.

Promotions Plan

We at PanoramaQuest Adventures understand the importance of effective promotional methods to attract customers in the competitive tourism industry. Our primary aim is to offer unique and unforgettable experiences to our guests in Prescott, AZ, ensuring they leave with lasting memories and a desire to return. To achieve this, we will employ a multifaceted promotional strategy that encompasses both traditional and digital marketing efforts.

Firstly, online marketing will serve as the cornerstone of our promotional efforts. We will leverage the power of social media platforms, such as Instagram, Facebook, and Twitter, to showcase our adventure tours through captivating imagery and engaging content. By sharing customer testimonials and live-action videos of our tours, we expect to build a strong online presence that resonates with our target audience. Additionally, we will optimize our website for search engines to ensure potential customers easily find us when searching for adventure tours in Prescott, AZ. Email marketing campaigns will also play a crucial role, keeping our subscribers informed about upcoming tours, special promotions, and company news.

Beyond online marketing, we will engage in community events to foster local support and awareness. Participating in local festivals, trade shows, and other community gatherings will allow us to connect directly with residents and visitors, offering them a personal glimpse into the exciting experiences we offer. Collaborations with local businesses, such as hotels and restaurants, will further expand our reach, providing mutual benefits through co-promotional efforts.

To enhance our visibility, we will also implement a referral program that rewards customers for bringing new adventurers to us. This word-of-mouth marketing strategy will complement our online efforts, creating a network of satisfied customers who are eager to share their positive experiences with friends and family.

Press releases and media outreach will be utilized to gain coverage in local and regional publications, highlighting our unique offerings and special events. This media attention will not only enhance our credibility but also attract a broader audience interested in adventure tourism.

Lastly, we will offer introductory discounts to first-time customers, encouraging them to experience our tours at a reduced rate. These promotions, combined with our high-quality service, will ensure that first-time visitors become repeat customers.

Together, these promotional methods will ensure that we at PanoramaQuest Adventures become a leading tour operator in Prescott, AZ, known for delivering exceptional adventure experiences. Through a balanced mix of online marketing, community engagement, and strategic partnerships, we expect to attract and retain a loyal customer base eager for adventure.

VII. Operations Plan

Our Operations Plan details:

• The key day-to-day processes that our business performs to serve our customers
• The key business milestones that our company expects to accomplish as we grow

Key Operational Processes

To ensure the success of PanoramaQuest Adventures, there are several key day-to-day operational processes that we will perform.

• Respond promptly to customer inquiries through email, phone calls, and social media platforms.
• Manage bookings, cancellations, and rescheduling requests efficiently.
• Gather and analyze customer feedback to improve service offerings.
• Design and update tour packages based on market research and customer preferences.
• Coordinate with local vendors and service providers for accommodation, transportation, and activities.
• Ensure all required permits and permissions for tour locations are obtained and up to date.
• Develop and execute a marketing strategy to reach target customers through various channels, including social media, email marketing, and local advertising.
• Maintain an engaging and informative website with up-to-date information on tours, pricing, and special offers.
• Collaborate with local businesses and tourism boards for cross-promotion opportunities.
• Track daily revenues and expenses to manage cash flow effectively.
• Prepare and review financial reports monthly to assess financial performance and make adjustments as necessary.
• Ensure compliance with all local, state, and federal tax requirements.
• Recruit, train, and manage staff to ensure high levels of customer service and safety standards.
• Schedule staff efficiently to cover all tours and customer service needs.
• Conduct regular staff meetings to review performance, gather feedback, and communicate any changes in operations or policies.
• Regularly review and update safety protocols for all tours and activities.
• Ensure all equipment used is maintained and meets safety standards.
• Stay informed of and comply with all local regulations affecting the tour operator business.
• Utilize technology to streamline booking and payment processes for customers.
• Implement systems for tracking customer interactions, preferences, and feedback to personalize service and enhance customer satisfaction.
• Analyze operational data to identify trends, opportunities for improvement, and areas of success.

PanoramaQuest Adventures expects to complete the following milestones in the coming months in order to ensure its success:

• Launch Our Tour Operator Business : This involves the initial setup, including creating a compelling brand, developing a user-friendly website, establishing a social media presence, and setting up necessary business operations like accounting and customer service systems.
• Obtain Necessary Permits and Licenses : Ensure compliance with local, state, and federal regulations by acquiring all necessary permits and licenses required for operating tours in Prescott, AZ, and surrounding areas. This might include permits for accessing national parks, wilderness areas, and other regulated spaces.
• Build Relationships with Local Vendors and Partners : Establish partnerships with local businesses such as hotels, restaurants, and transport services. These relationships will be crucial for offering package deals, enhancing customer experiences, and managing costs effectively.
• Hire and Train Staff : Recruit a team of experienced guides, customer service representatives, and operational staff. Implement a training program that emphasizes safety, customer service excellence, and local knowledge to ensure a high-quality customer experience.
• Launch Marketing Campaigns : Develop and launch targeted marketing campaigns aimed at attracting our initial customer base. This includes leveraging social media advertising, local tourism boards, travel forums, and partnerships with local businesses to increase visibility.
• Conduct Pilot Tours : Before fully launching, conduct a series of pilot tours to gather feedback, adjust itineraries, and ensure every aspect of the tour meets high standards. This will help in refining the product offering and improving customer satisfaction.
• Implement a Customer Feedback System : Establish a mechanism to collect and analyze customer feedback systematically. This will be vital for continuous improvement, addressing any issues promptly, and adapting to changing customer expectations.
• Achieve Operational Efficiency : Streamline operations to reduce costs and improve customer service. This might include optimizing tour schedules, improving booking systems, and enhancing supply chain management for any products sold or used during tours.
• Reach $15,000/Month in Revenue : Develop and execute strategies to grow revenue through increasing tour bookings, upselling additional services, and expanding the customer base. Regularly review financial performance against targets to ensure the business is on track.
• Expand Tour Offerings : Based on customer feedback and market demand, gradually introduce new and unique tour experiences to attract a broader audience and encourage repeat business. This could involve thematic tours, exclusive access tours, or seasonal events. By systematically achieving these milestones, PanoramaQuest Adventures will mitigate risks, build a solid foundation for its business, and set the stage for long-term success in the competitive tour operator industry.

VIII. Management Team

Our management team has the experience and expertise to successfully execute on our business plan.

Management Team Members

PanoramaQuest Adventures management team, which includes the following members, has the experience and expertise to successfully execute on our business plan:

Jayden Taylor, President

Jayden Taylor’s expertise in the travel and tourism industry is both extensive and impressive. With a solid track record of running a successful tour operator in the past, Taylor has demonstrated an exceptional ability to navigate the complexities of the tourism sector. His leadership skills, combined with a deep understanding of market dynamics and customer preferences, make him an invaluable asset to PanoramaQuest Adventures. Taylor’s previous experience has honed his capabilities in strategic planning, operations management, and customer service excellence, laying a strong foundation for steering PanoramaQuest Adventures towards achieving lasting success in the adventure travel market.

IX. Financial Plan

Funding requirements/use of funds.

To accomplish our growth goals, PanoramaQuest Adventures needs $312,000 in funding. Key uses of this funding will be as follows:

Financial Projections

5 Year Annual Income Statement

5 year annual balance sheet, 5 year annual cash flow statement, what is a tour operator business plan.

A tour operator business plan is a document that outlines the strategies you have developed to start and/or grow your tour operator business. Among other things, it details information about your industry, customers and competitors to help ensure your company is positioned properly to succeed. Your tour operator business plan also assesses how much funding you will need to grow your business and proves, via your financial forecasts, why the business is viable.  

Why You Need a Business Plan for your Tour Operator Business

A business plan is required if you are seeking funding for your tour operator business. Investors and lenders will review your plan to ensure it meets their criteria before providing you with capital. In addition, a tour operator business plan helps you and your team stay focused. It documents the strategies you must follow and gives you financial projections you should strive to achieve and against which you can judge your performance.  

Tour Operator Business Plan Template PDF

Download our Tour Operator Business Plan PDF to help guide you as you create your business plan for your own tour operator business.  

How to create a tour operator business plan in 8 steps

Preparing to Write a Business Plan

Tour operator business plan template.

• Tips and Tricks for A Strong Tour Operator Business Plan

Wondering how to turn your tour operator idea into a real business? The first step to launching a startup and getting investors onboard is to develop a formal proposal called a business plan . Whether you want to start a travel agency, a walking tour company, or an adventure travel business, you will use a business plan to communicate exactly how you plan to make your idea come to life. 

Creating a tourism business plan might sound daunting; in this article, we’ll show you how to do one and offer lots of advice for first-time founders. You’ll be able to use this article as a tour operator business plan template to write your own sample business plan (as an exercise) or to create the real thing.

To more clearly illustrate how to create a tour operator business plan, we’ll use a sample business as we go through each section. Our sample business is a small tour operator startup that specializes in ecotourism in Thailand.

Before you start to create your official business plan, it can be helpful to think through several aspects of your business so that you are fully prepared to address each topic in the business plan template. One excellent preparation exercise is to complete a Business Model Canvas for your company. 

The Business Model Canvas encourages you to think critically about your customers, cost structure, revenue streams, marketing strategy, and more. It’s the perfect warm-up for your business plan because you’ll incorporate your Business Model Canvas notes into the actual business plan document. We recommend that you do this exercise with your co-founders, if you have any, and with a whiteboard – you’ll probably make lots of changes as you go!

You can find a printable Business Model Canvas template here .

Your tour operator business plan should contain at least seven sections: an executive summary, a company overview, a description of your services, an analysis of your market, an implementation plan, a team summary, and a financial plan. You might have one or more appendices at the end, if you have additional relevant information to include. The finished product should be formatted nicely and incorporate your company’s logo and branding.

Executive Summary

A Step-By-Step Guide to Creating a Tour and Travel Business Plan

Are you thinking about starting a tour and travel business? If so, you will need to create a business plan. This document is essential for any business, and it will help you map out your goals and strategies.

In this blog post, we will outline a step-by-step guide on creating a tour company business plan. By following these steps, you will be able to create a plan that is tailored to your specific business. Let's get started!

Why Your Tour Company Needs a Tour Company Business Plan

For any tour company to be successful, they need to have a well-developed business plan.

A business plan acts as a roadmap, providing essential information on the market and industry you are operating in, the marketing strategy you can use to reach your target audience, pricing structures and legal regulations related to the operations of your business.

A well-crafted plan also allows entrepreneurs to budget their tours, identify potential areas of risk before they start operations and find ways to gain competitive edge over competitors. It serves as an invaluable guide that can help businesses make informed decisions on all aspects of running a prosperous venture while also providing assurance that they are compliant with all applicable local laws.

Benefits of a Tour Operator Business Plan

Having a written plan helps you set realistic objectives and develop operational marketing strategy built for success. So when starting out with your own tour company, it pays to invest time into creating an effective business plan that covers all bases.

Doing so will enable you to launch a strong product that stands out and provides customers ultimate satisfaction!

How do I write a tour operator business plan?

Now that you understand why a tour and travel business needs a well-crafted business plan, you're probably wondering how to create one. Sure, you can just use a tour business plan template, but it's still better to craft your own tour business plan.

So, here are the steps you need to follow to create one.

Executive summary

An executive summary is the first and most important part of your tour business plan. In a single page, you should include your company's mission and vision statement, objectives and strategies, financial projections and any other relevant information. This is the part where you need to grab people's attention and make a strong first impression.

As the word executive summary suggests, though, make sure it is short and to the point . You don't want to bore readers with lengthy introductions or details they don't need.

Important points to add in your executive summary are the following:

• clear business concept
• goals and vision
• what sets you apart
• your target market
• marketing strategies
• projected financial state
• the purpose of your business plan, whether to attract investors or strictly for your own planning purposes

Company overview

Your company overview should give a detailed understanding of who you are and what you do as a tour business. Explain your company's history, vision and mission statements along with the services you offer.

Be sure to also include not only what you do, but why you do it. Your company may have a unique angle that sets you apart from the competition.

For example, what is it in your skydiving or guided tours or adventures that sets you apart from the other you in your area? Defining your company overview serves as a brand story that your customers can connect to and guides you to the right direction.

Industry analysis

This is where you discuss the broad and deep travel industry research in your specific industry. An industry analysis is also called that market analysis of your travel business.

You need to identify the current tour and travel trends, understand your target market, evaluate existing tour companies in your field and analyze your strategies.

When analyzing the tourism industry where your travel agency business operates, you should also be aware of any new tour technology, laws, and regulations. Doing your due diligence on the tourism industry will give you a better understanding of the tour market and how to position your tour business.

Competitor analysis

Your tour business plan should also include a competitor analysis. This helps you understand the market forces and how your business can compete against them.

Analyzing tour competitors should include looking at your prices, packages and tour quality. Doing this will help you come up with ways to position your tour business and make it stand out.

You might also conduct a SWOT analysis to identify your company's strengths, weaknesses, opportunities and threats.

Customer analysis

Having a tour plan that includes an analysis of your customers helps you understand your target clients. It involves researching their needs and preferences, satisfaction and feedback.

By doing customer research, you can better customize packages and services to meet your customers' needs. This will help them build loyal customer relationships, eventually resulting in more tour bookings.

Operational planning

Here goes the most detailed and meaty part of tour business planning. In this important section, you should include your legal structure, risk management strategies and management plans.

You should also include safety measures and policies they are planning to implement. This helps businesses stay organized, be accountable and avoid tour-related risks.

This is also where you will consider any tour software they might need to manage operations – from booking software, distribution channels, or any other partnerships with other businesses.

Team Summary

Use your team summary section to list the key people involved in your tour business and their roles. This is also where you can list any experts, guides, operators, and the management team you will be working with.

Using an organizational chart will allow you to quickly visualize the team structure and make sure all tour business roles are filled.

Financial planning

Your financial plan is an essential element of successful business planning. When creating a business plan, you should include revenue forecasts and expenses. They can also include pricing strategy, cost control methods, cash flow forecasts, financial statements and balance sheets.

Having a tour financial plan will help you make better business decisions, raise capital and compile budgets. If your travel company is seeking potential investors, you should also include your investment strategies and exit plans.

Marketing plan

It goes without saying that tour marketing is an important component of tour businesses.

Your tour business plan should include marketing strategies and promotion tactics. This includes your pricing, advertising channels, and other marketing ways. You should also consider how you are going to use social media and other tour-related technologies to reach your target customers.

Wrapping up

Creating a tour business plan can be overwhelming, but it is essential for tour businesses. Taking the time to do your research and include all the necessary elements in your tour business plan will help ensure success.

As an overview, here are the parts of a successful tourism business plan:

• executive summary
• company overview
• competitor analysis
• customer analysis
• operational plans
• team summary
• financial planning
• marketing plan.

Get started with Ticketinghub

Investing in tour technology and software is also a great way to make your tour business stand out from the competition. Online reservation software for tour operators like Ticketinghub is designed to help tour businesses manage tour bookings, marketing and operations.

Our platform is simple enough for any business owner to use yet powerful enough to grow a large travel company's sales. We offer the most complete solution on the market with features like automated pricing, customizable booking engine, instant online quotes and more than 40 different languages supported by our customer service team.

Furthermore, you can integrate other programs and tools such as Google Analytics, Stripe, SumUp, and more.

Make the most of your tours and activities reservations with Ticketinghub. Book a demo to learn more today.

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Tour operator business plan guide.

Before you start to create your official business plan, it can be helpful to think through several aspects of your business so that you are fully prepared to address each topic in this business plan guide. One excellent preparation exercise is to complete a  Business Model for your company. 

Download Business Plan Guide PDF

With your Business Model prepared, you can now more easily complete your Tour Operator Business Plan .

Your  tour operator business plan  should contain at least seven sections:

• an executive summary,
• a company overview,
• a description of your services,
• an analysis of your market,
• an implementation plan,
• a team summary, and
• a financial plan.
• You might have one or more appendices at the end if you have additional relevant information to include. The finished product should be formatted nicely and incorporate your company’s logo and branding. For assistance with branding, reference the Entrepreneur Tour Operator Toolkit – Branding & Marketing Guide .

Executive Summary

As the first component of your business plan, the  executive summary  is arguably the most important section. If you’re pitching your idea to investors, they’re likely very busy people, so you want to  grab their attention  from the beginning. The executive summary should contain a concise outline of your tour operator company’s objectives and goals, your  mission and/or vision statements , your key success factors, and a clear description of your value proposition. 

Company Overview

Think of this section as what you would post on the “About” section of your tour operator company’s website. The  company overview  should explain who your company’s key leaders are, how and when the business started, what the ownership structure looks like (if you have investors, for example), where your office is located, and an outline of your current assets and debts. If you’re in the early stages of your business, this section might be quite short.

Operations Plan

The  operations plan  is where you describe exactly what your company will offer. What kinds of tours will you sell? Where exactly will you operate? This is the type of information you would list on your website for potential customers or guests to read – but without too much of a sales pitch. 

In this section, it can also be helpful to include a description of the full “ life cycle ” of your business. What happens before, during, and after a tour? What steps does the guest complete, and what happens behind the scenes at your company’s office?

It might be helpful for example, to illustrate how someone could book a tour perhaps six months in advance on your website. Between booking and arrival, coordinate accommodation, meals, and transportation with partner providers. When the tour concludes, offer transportation back to the airport and follow up with a special offer to book another tour with us at a discount. 

Market Analysis

This section explores  your specific niche  within the tourism industry and the geographic location(s) where you plan to operate. Who are your target clients or guests? Who are your main competitors? What trends exist in this industry sector? Is the number of visitors to your location increasing or decreasing? Try to include  statistics from reputable sources  whenever you can. Destination Marketing Organizations (DMOs), Chambers of Commerce, and the New Mexico Tourism Department, just to name a few, can provide valuable insight and add credibility. This section should leave no stone unturned so that your reader can truly understand your market conditions.

For example, try to include information about travel trends in New Mexico, economic trends, the number of new hotels being built, etc. We would also explore the ecotourism market; are more people choosing eco-friendly travel options today compared to five years ago? What companies are the current ecotourism market leaders?

Later in this toolkit, you will have an opportunity to further flush out your marketing plan utilizing the Entrepreneur Tour Operator Toolkit – Branding & Marketing guide .

Implementation

Now that you’ve explained your business idea and described the market in which you plan to operate, it’s time to outline exactly  how  you will bring your tour operator business to life. This section should include a  SWOT analysis, details about your marketing and pricing strategies, and a sales projection. 

In the  SWOT analysis , you will explore your company’s strengths, weaknesses, opportunities, and threats. What does your company offer that nobody else in the market does? What are some potential challenges that you will need to face? Using an ecotourism company example, a threat could be natural disasters – if there are floods or mudslides, our business cannot operate. On the other hand, an opportunity is that more people are interested in eco-friendly travel options. 

Your  marketing and pricing strategies  should be very specific. How will customers find your company? Which online channels will you use? Will you work through travel agents or directly with your customers? 

Your pricing strategy should include the exact rates you plan to charge for at least a year in advance. For example, will you charge different prices for different packages? For low season vs. high season vs. holiday periods? With rates increasing 5% each year? And/or consider a 10% discount for advance purchase bookings made at least 6 months in advance and charge a cancellation fee for any reservations canceled within 3 months of the tour departure date. Based on your pricing strategy, you can create a sales projection that will estimate your company’s sales performance, preferably over the next three years.

Team Summary

After you understand what your tour operator business will do, you’ll wonder  who  is going to make it happen. And if you’re planning to launch a full-fledged tour operator business, you’re probably not going at it alone. The  Team Summary  section should include a thorough plan for your company’s organizational structure, key leaders, employees, and training processes. 

Do you already have a management team in place, or will you need to hire additional leaders? How many  employees  will you need, and how much will you pay them? And how will you train and develop your employees? The Team Summary should answer all of these questions and provide enough information for potential investors to understand exactly how you plan to staff your business, pay your employees, and ensure all team members are trained properly. 

Financial Plan

The  financial plan  is extremely important to potential investors because they will want to maximize the return on their investment. Your  financial plan  is essentially a  projection  of your  revenue streams and cost structure for your company’s first five or so years of operation. It will include not only revenue from ticket sales and costs from employee salaries, but also details like  tour-operator software  costs, insurance, taxes, marketing spend, depreciation of assets, interest on loans, and more. 

A break-even analysis is a critical part of the financial projections in the business plan for a new business. Financing sources will want to see when you expect to break even so they know when your business will become profitable.

But even if you’re not seeking outside financing, you should know when your business is going to break even. This will help you plan the amount of startup capital you’ll need and determine how long that capital will need to last. A one-page break-even analysis template is available to help you through this exercise.

In general, you should aim to break even in 6 to 18 months after launching your business. If your break-even analysis shows that it will take longer, you need to revisit your costs and pricing strategy so you can increase your margins and break even in a reasonable amount of time.

If you don’t have a finance background yourself, it may be helpful to seek assistance from an accountant or someone who knows the ins and outs of financial modeling. 

Additional Information

In an appendix, you can include  supporting information  or statistics that may be helpful for potential investors, but not essential to your business plan. For instance, you could include a full report on trends that you used in your Market Analysis section.

Tips and Tricks for A Strong Tour Operator Business Plan

In summary, writing a business plan is certainly not an easy task. It’s time-consuming and requires a lot of thought, but a well-written business plan can lead to significant growth for your company. As you complete your business plan, keep these pieces of advice in mind:

• Conduct thorough research on your market . When you pitch your company to investors, you want to be seen as an expert, so learn as much as you can about your competitors and market trends.
• Simplify your words and descriptions whenever possible . A business plan is not the place to wow your reader with flowery language – instead, you want your reader to easily grasp your value proposition. Think about writing so that a fifth-grader can understand it. The last thing you want is for your reader to be confused about what your company actually does.
• Don’t be afraid to make changes . As you work on your business plan, you might discover that some aspects of your business need to be adjusted for the greater good of the company. After all, the companies that are the most adaptable are the ones that survive!
• Get a second opinion  (or a third or a fourth). A good test of your business plan’s readability and clarity is to let someone outside your industry read it, like a family member or friend. If they have a lot of questions, you might need to adjust your descriptions or more clearly explain your plans.
• Proofread ! Your business plan is a reflection of your company’s values. If your formatting is sloppy and your text is full of typos, your reader might question whether you have the attention to detail necessary to run a successful business.

Back to Tour Operator Toolkit Outline

Tour Company Business Plan: Everything You Need to Know

A tour company business plan is a document that contains all the ideas an individual has for the business. 3 min read updated on January 01, 2024

A tour company business plan is a document that contains all the ideas an individual has for the business. It's like have a roadmap to follow to keep the company heading in the right direction.

The Sections of a Business Plan

Basic Information

A tour company business plan contains several sections to be developed in a clear and detailed manner, such as a description of the company, partnership opportunities, and market analysis. It will also include information for an operations plan, a marketing plan, and a list of the products and services your company will provide.

Within the business plan, you'll be providing information that includes financial projections for the business, which will take into account how the seasons can affect tourism, and a selling theme or proposition explaining why your tour company surpasses the competition.

Executive Summary

This portion of the business plan provides a concise summary of each section.

Business Overview

This section describes the business. It will include:

• Business formation information.
• Business type.
• The legal structure of the business.
• Business location.
• The means of doing business, i.e., street-based or internet based.

Operations Plan

The operations area fully describes how the business will operate and be set up. It will also include when tasks will be implemented and who will be responsible for completing the tasks.

Market Analysis

Market analysis is an important area and one that has several questions that need informative answers. You'll provide information on who your major competitors are, what their pricing strategy is, how you'll price products/services in relation to their price structure, what the demand is for your product or service, the market demand for your product, and what the consumer behavior is toward the product or service.

Team and Management

The team of employees is the driving force of the company. Describe the team, the role of each team member, and who will need to be hired to support the execution of your product/service.

Describe your plans for implementing your ideas to promote a successful business.

Financial Plan

Outline the financial forecast for the business. The information covers effective pricing, marketing budgets, cost of sales, cost of staff, and other elements/costs affecting the business.

Legalities of Starting a Tour Company

• Name the business something that's memorable and descriptive.
• Check to see if the domain for the name you've chosen is available. If so, buy it.
• Register the business to make it official.
• Choose the business structure : a partnership, corporation, or sole proprietorship. Evaluate the pros and cons of each structure prior to making a decision.
• Contact the tourism board in your area to find out what the requirements are for opening a tour company.
• Check with your particular city or state about the permits and licenses needed to operate a tour company.
• If you're planning to be a tour guide, you may need to complete a course to attain a license. Check with the tourism board for your area for requirements.
• Open a business bank account to handle tracking of revenue and expenses.
• Purchase liability insurance to ensure the business isn't held liable. Common types of insurance for tourism are property insurance, accounts receivable insurance, and commercial general liability insurance.

Starting a Tour Company

There are several things to do before opening for business as a tour company.

Choosing a Niche and Finding Your Passion

Choose a focus for your company. Keep that focus fresh and stay passionate about the service you're providing.

Repeating the same information to clients several times a day is repetitive and can become boring. The boredom will reflect in your voice, and your customers will pick up on it, which won't be good for business.

Evaluate Your City

Do your homework to determine if your city will benefit from a tour company. Things to consider include if the city is a popular tourist destination, current travel trends, and if there's anything your company can offer that isn't already available.

Identify Your Target Market

Know who your company is focusing on and what areas to cover, such as outdoor activities, fine dining, and points of interest or things to do.

Research Competitors

Know your competition. This means having an understanding of their operations and how you can make yours stand out from the crowd.

If you need help with a tour company business plan, you can post your legal need on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.

Hire the top business lawyers and save up to 60% on legal fees

Content Approved by UpCounsel

• How to Open a Tour Company
• Creating a Business Plan
• Parts of Business Plan and Definition
• How to Start a Business: A Comprehensive Guide for Entrepreneurs
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• IT Company Business Plan
• Business Description Outline
• How to Make a Business Plan Format
• Business Plan for New Company
• Business Plan Contents Page

How to start a Tour Operator business in 2024: A step-by-step guide

By Brieanne Biblow

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There are so many benefits of being a tour operator , but taking the first step to start your own tour company? That can feel daunting. Like any start-up business, there are lots of pieces that need to come together before you welcome your first customers. With countless resources out there, it’s easy to get overwhelmed when you’ve asked yourself “How do I start an online tour operator business?” We’re here to give you more than just a few tips on starting a travel and tour company. Dive into our practical step-by-step guide on how to start your own tour company.

How to start a Tour Operator business in 2024

1. choose a business niche, 2. register your tour company, 3. design your tour, 4. build relationships  , 5. market your tour, 6. launch your tour, choose a business niche.

Find your passion

The first step to becoming a tour operator is to know what you’re passionate about. If you survey a handful of happy tour guests, do you know the number one thing they’ll say makes a difference between a good tour and a tour they’ll recommend to all their friends? A passionate tour guide.

Your passion for cooking could translate into delicious food tours, or your love of the outdoors could turn into hiking tours, even a passion for all things spooky could transform into starting a ghost tour business. So, take some time to find your passion that you can’t wait to share with others every day.

Evaluate your city

Once you have your passion in mind, it’s time to take a look at your city. Is it a popular tourist destination? Is there anything that’s not being explored? While passion is key, it’s equally important to identify if there’s an opportunity. Passion without opportunity is just a hobby. Check in with your local tourism board to see if they have any market research reports that outline the opportunities and challenges in the industry.

Dig into travel and tourism trends

The travel and tourism industry, like any industry, can see larger trends in pop culture trickle down and open up entirely new business opportunities. Your potential customers are being influenced by trends, so why not do some research, incorporate ones that feel like a fit for you, and watch more bookings roll in.

Some 2024 tourism trends that will be influencing travelers:

• Multi-generational tours : Post-retirement boomers will be looking to travel with their entire families. So creating a tour offering that has something for the whole family could be a great idea.
• Cultural connection : More and more, savvy travelers are always looking for something truly authentic to the destination they’ve traveled to. That doesn’t mean you have to be the authentic expert. Instead, think about exploring opportunities to partner with other start-up businesses in your community that could add this element to your tour offering.
• From screens to reality: Keeping a pulse on popular TV shows and movies can be a great way to come up with unique tour ideas that can target new customers for your business.

Identify your target market

Now that you have innovative tourism ideas , you need to map out what your ideal potential customer looks like. Think about the types of people that will be attracted to your tour.

• What’s their age demographic?
• Where are they coming from?
• What language(s) do they speak?
• What interests do they have?

Who your customers are will determine many of the decisions you make later. This information will also be crucial when you create your marketing strategy. So, take the time to get to know your target market.

Research your competitors

Having found your tour idea and evaluated the market in the previous section, you’re almost ready to register your tour company. But first, you’ll need to research your competition, so you know what you’re up against. Head to Google and search simple like “tour operators near me” and ask yourself:

• What are they doing well?
• Where are their gaps?
• What are their price points like?

Then, find ways to differentiate yourself and stand out.

Register your tour company

With your research complete, now is a good time to consider your options for registering your business. Go to your local tourism board and find out the requirements for starting a tour company in your area. Here are some of the legalities you might have to go through.

Name your tour business

The first thing you need to do is name your business. Your tour name will be used in all of your documentation. Make sure your name is both memorable and descriptive. The most important is if the website domain is available. If your name checks all the boxes, go to your local Registrar of Companies to get it approved and then purchase your domain.

Register your business

Now that you have a name you’re ready to make things official by registering your business. There are different options for how you register— sole proprietorship, partnerships, corporations. Speaking to a small business accountant is a great idea to understand the tax implications of each option. Then, evaluate the pros and cons of each before you make your decision.

Get your business license and permits

Once you’ve registered your business, you’ll need to get a local business license. Check in with your local municipality to do this. You might need to obtain additional permits and licensing based on where you are operating and if you have any vehicles.

Purchase liability insurance

Protect your business, yourself, and your guests by getting liability insurance. Accidents happen, that’s a given. But to ensure that you aren’t held personally liable, you’ll want to meet with an insurance company to learn about what coverage your business needs. Some commonly required in the tourism industry are:

• Commercial General Liability (CGL)
• Property Insurance
• Accounts Receivable Insurance

Register as a tour guide

If you are guiding, you might need to complete a course to become a licensed tourist guide. This allows you to take tourists around a designated geographical area. To find out if you need to register as a guide, check in with your local tourism board.

Open a business bank account

Now that you have a business license, you’ll want to open a corporate bank account. This will help you keep track of all your expenses and revenue and make accounting a lot easier.

Design your tour 

Write your business plan

With all the legalities taken care of, it’s time to write your business plan.

A business plan is a document that holds all of your ideas. It’s your roadmap that helps you determine how you’ll move forward. Include your company description, market analysis, partnership opportunities, and small business goals . It should also include your marketing plan, operations plan, and a list of your vendors, products, and services. It should also contain a variety of financial projections for your first 1-5 years of business. Remember: it’s okay if you don’t have all the answers right away, but it’s good to know what to focus on as you grow.

Side note: once you get up and running, you should learn how to develop a strategic plan to help you reach your ultimate vision for your tour operator business.

Create your Unique Selling Proposition

With your business plan in hand, it’s time to lock down your unique selling proposition.  This explains what makes your tour better than the competition. It’s the benefit that travelers can only get by booking with you — like that you provide ethical travels & tours .  You should be able to define this in one sentence.

Set your tour pricing

Now that you’ve evaluated your market it’s time to determine the value of your tour and choose what you will charge. It’s important to consider your operating costs and market value as well as what you think customers are willing to pay. This part often feels overwhelming for a lot of start-up businesses, which is why we’ve created our free Tour Operator Costing Sheet .

Craft your brand story

Now comes the fun part—it’s time to create a compelling story for your tour. Make sure it has a definite beginning, middle, and end. Find themes that you can carry through the entire experience. A clear narrative makes your tour more memorable.  The goal is to have your guests telling their friends all the neat things they learned in the weeks that follow.

Design a tour logo

Once you’ve created a story for your tour, it’s time to design your brand around it. The first step is to create a logo. Your logo is the visual representation of your business. It will be used in all of your marketing collateral. You can choose to work with a graphic designer, or give free tools like Canva a try. Lookin for some inspiration? Check out more ideas for branding your business .

Build a travel website

Alright! You’re finally ready to create an online presence for your business . This is how many travelers will find you when researching their trips. If you don’t know how to build a website you have a few options; you could hire a contractor, or try your hand with tools like: Wix , Squarespace , or WordPress . Whatever you choose, make sure your website works with online booking system (like Checkfront 😉).

Set up an online booking system

You don’t just want travelers to find you online; you want them to make, and pay, for reservations right on your website. To do this, you need an online booking system . Your booking system can also be used to process your in-person and over the phone reservations. Here are a few links that will help you find the platform that’s right for you.

• What is an Online Booking System?
• How to Create an Online Booking System in 24 Hours (or Less)
• Start Using Checkfront’s Booking System for Free

Build Relationships 

Talk to other tour guides

When starting a business, many entrepreneurs think they need to do everything on their own. This can lead to loneliness and frustration. But, you don’t have to do it alone. Many guides would be happy to share their knowledge with you. Go out and build relationships with other operators in your city, who aren’t direct competitors. Online communities like Tourpreneur are an invaluable resource for tour operators at any stage of their business.

Connect with the local tourism community

Take any opportunity you have to build relationships with local business . While it’s difficult to walk into a room full of strangers and feel like an outsider, you won’t regret pushing yourself to meet other business owners. You’ll feel connected to people in the same boat as you and get a lot from the relationships you make. Just don’t forget to give back. Here are a few key relationships you should build locally:

• With your local city council
• Your local tourism or destination management organization (DMO)
• Your local tourist information office
• Hotel front desks and tour desks

Market Your Tour

With your target market defined and your marketing strategy ready to go, it’s time to get the word out about your amazing business! From online travel agents to social media to email marketing, we’ll cover it all:

List your tours on OTAs

Make it easy for travelers to find you by listing your tour on online travel agents (OTAs). OTA’s like Viator, Expedia Local Expert, Google Things To Do and GetYourGuide already have experience in digital advertising and have built up a mass following. While they will take a commission from your sales, they also have a significant amount of marketing spend at their disposal that your business can benefit from.

Think about it like selling vegetables — while you could set up a booth at a local farmer’s market, you’ll probably get far more customers by selling in a grocery store.

Implement SEO best practices

Now that you’re tour is listed with a couple online travel agents, it’s time to start driving traffic to your website. The best long-term strategy to do so is through search engine optimization (SEO). You can use SEO best practices to optimize your site for Google and other search engines. One of the best things to do is to SEO optimize your product descriptions . That way when someone searches for something related to your tour, your website shows up in search results.

Buy Google Adwords

While SEO is great, it’s a long-term strategy and can takee time to crawl up Google or Bing’s search rankings. To get immediate results you can buy AdWords. Instead of waiting for Google’s algorithm to show your website on the results page, you bid on specific keywords related to your business so your site shows up on top of the page.

Start email marketing

With steady visitor traffic coming to your website, you’ll want to capture their emails so you can stay in touch with them. Email marketing is a powerful tool when done right but it will take some work to stand out in your customers’ inboxes. Our Complete Guide to Email Marketing for Tourism Operators is a great place to start.

Get on Facebook and Instagram

Social media is where your customers are likely spending most of their time online, so you should be there, too. Creating a Facebook page and Instagram account will let you connect to your customers, post pictures of your tours, and make your company information easy to share and recommend. Plus, you can use Facebook Messenger or Instagram’s Direct Messages to answer questions and use the ad network on both platforms to help more people discover your tour.

Launch Your Tour

Host Your Friends and Family

As you prepare for a successful business launch , you’ll want to do a few test runs. We recommend a pre-launch buzz campaign or hosting a few friends and family first. Think of it as your dress rehearsal. Go through the tour from start to finish and collect as much feedback as you can. Once you feel confident that you’ve worked out the kinks, you’re ready to launch! 

Final thoughts

Building your own tour business is no easy feat. From designing a tour and evaluating your market, to building relationships, your brand, your online presence, and getting those first customers through the door. There’s a lot of pieces to put together. However, following this step-by-step guide and your intuition you’ll have a successful tour operator business in no time.

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How to create a business plan for a tour or activity company

Each TrekkSoft customer has their own story about how and why they became a tour operator or activity provider.

Some tour operators realised that they love educating others and providing them with meaningful cultural experiences.  Others started activity companies simply because they love the sport, activity, or adventure and wanted to introduce others to it.

Whatever your company and passion, you'll need a business plan to make sure your venture is both financially and conceptually viable. Let us help you out.

1. Fill our Business Model worksheet

We've created a Business Model worksheet especially for tour and activity business owners  looking to define their business ambitions and map a direction forward. Print out a copy, have a few pens handy, and unleash your business creativity. You could also have fun covering a large print-out with Post-it notes.

DIY task: While working on the worksheet, ask yourself:

• Who are my key partners?
• What are my key activities?
• What are my key resources, e.g. online booking software ?
• What are my value propositions?
• What do my customer relationships include?
• What are my customer segments?
• What channels are important to my business, e.g. partnering with travel agents ?
• What is my cost structure?
• What are my revenue streams?

2. Define goals and objectives for your tour business or activity company

Imagine your business five years from now. What will it look like? How many customers will go on your tours per week, or how many activities will be bookable on your website?

Picture the future, define 5-10 concrete objectives, and then list the steps required to get there.

Some goals and solutions include:

• Reach new markets > Partner with local travel agents and activity providers
• Improve booking experience > Enable online bookings to save customers time with a software provider such as TrekkSoft
• Expand the tours I offer > Identify gaps in the market that I can fill with my experience and resources, then run trial tours to collect feedback from

3. Work out your finances on your business model

No matter how enthusiastic you are, it's important to ensure that your tour business or activity company makes economic sense. You're an entrepreneur, after all!

Ask yourself:

• How much initial investment will my tour company need?
• When will I start getting a profit?
• If I get any investment, when can investors (including myself) expect a return?
• What are my projected profits over time?
• Will I be able to devote myself to the tour or activity business in a financial sense?
• What kind of salary or income can I expect from my tours or activities?
• What are the chances the business will fail? 
• What will happen if it does?
• How can I reduce risk, or plan for a worst-case scenario?

4. Define exactly how your tours and activities are of value

A  useful tool from Strategyzer is their Value Proposition Canvas , which makes it easy to define  how you are creating value for your customers and how to design products and services they really want.

5. Create a marketing strategy that's optimised for your customers

One marketing plan doesn't fit all, especially considering the wide range of tours and activities on the market.

• Who is my target audience?
• How old are they?
• Where are they from?
• What do they do for a living?
• What experience and memories do they want to gain from my tour or activity?

Next, research and create a marketing strategy that these customer segments will best respond to.

You may consider print marketing, or a well thought-out text and visual marketing strategy. Also, effective social media use is key to your marketing efforts, especially if you're targeting millenials.

• How to create a marketing plan for tour and activity operators
• A complete guide to visual content marketing for professionals in the tourism industry

While these steps are general, be sure to tailor each step on your marketing plan to your audience. Talk in their language and promote your tours or activities in a way they'll respond to. Good luck!

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How to Create a Business Plan for Your Tour or Travel Company

Do you have the next great tour business or travel company idea, but don’t know how to turn it into reality? You’ve found your niche and even come up with the best tour company name ever, but who do you tell and how do you get started? 

Table of Contents

Why your tour company needs a business plan.

We’ve previously covered topics on how to build your business, but one beneficial, even crucial, practice before you start is to write up a small business plan, one that compiles all the important aspects of your brand in a single 15-20 page document. Having a simple tourism business plan will help you plan for the future and even discover new things about your brand. 

Whether you’re a young entrepreneur building a tour startup in search of investors, or you’re an established tour operator looking to better understand your business and take it to the next level, a tour operator business plan can help guide you in the right direction. 

The Benefits of a Business Plan

As mentioned above, a tour company business plan is a document that outlines all the important aspects of your tour business. From your company goals and objectives, to your team members, and even your financial statements, a business plan is an effective tool for analyzing the ins and outs of your business.

It is the ultimate document used to convince investors and lenders to support your tour company. If you’re not looking for investors, writing a simple business plan for your tour business is still useful practice to align the leaders in your company, discover any shortcomings you might have missed, and plan for future growth.

How to Create a Tourism Business Plan

Now that you understand why having a small business plan is important, you’re probably wondering how to write one. You can use a business plan template, but it’s good to know why you’re including the information it asks for. It’s also acceptable to cater the content of your business plan to suit your unique company, but there are certain sections that investors expect to see, making them beneficial for you to include.

Here is what you need to include in your company’s business plan: 

Executive Summary

One of the most important sections of your business plan will be your executive summary, which serves as a high-level overview of your business, providing highlights of the fundamentals of your brand.

You’ll notice that most, if not all, of the topics covered within your executive summary will have their own dedicated section later on in your business plan. Because the executive summary is typically limited to a single page, leave the nitty-gritty details for their respective sections and use the executive summary as a way to simply introduce the topics to your reader. 

Executive summary topics:

• What is your business and what does it do? Do you host walking tours or provide bicycle rentals? Are you a tour guide or do you run a themed hotel experience? Give the reader a clear understanding of your business concept.
• What are your business goals and where do you envision your company in the future? How do you want to see your business grow?
• What makes your business different from your competitors? Whether you’re renting out a specific product like Segways or providing a service like guided tours, discuss what sets you apart from (and makes you better than) similar businesses in your industry.
• Who is your target audience? Who are you selling to and why are they interested?
• What is your marketing strategy? How do you plan to connect with and convert your customers?
• What is your current financial state? What is your projected financial state?
• What is the purpose of your business plan? Are you looking to secure investors and/or lenders? If so, how much are you asking for? You won’t need to discuss this if your business plan is strictly for your own planning purposes.
• Who is on your team, what are their job titles, and what do they do?

Again, like your business plan as a whole, not all of the topics listed above may be applicable to your business or your specific needs, so include only what you see fit. 

Company Overview

Your company overview should give your reader a detailed understanding of who you are and what you do. This includes technical topics like your business description, structure, and model, but should also cover the heart and soul of your company. That is, not only what you do, but why you do it. Developing your brand story is an important step to branding in the travel and tourism industry .

What is it about running a bungee jumping business, wine tasting tour, or spelunking course that inspires you? What is your company’s mission, vision, purpose, and USP (unique selling proposition)? What are your business goals and objectives, both short-term and long-term? Defining these aspects of your business helps readers, whether investors or your own employees, connect with your business at a deeper level.

Market Analysis

Another important section to include in your business plan for your tour company is a detailed market analysis. Even if you’re creating your business plan for internal use only, conducting market analysis and research is an excellent way to gauge your position within your industry, identify areas of concern, and create an effective marketing strategy using the 7 Ps of Travel and Tourism Marketing .

Things to consider in your market analysis include your target market and demographic, whether your marketing strategy is aligned with your target market, where you want to position yourself in the industry in relation to your competitors, and where you have room to improve. 

Try conducting a SWOT analysis for your tour business to explore your:

• Strengths – what do you do well?
• Weaknesses – what could you do better?
• Opportunities – are there gaps in your industry that you can take advantage of?
• Threats – what external factors affect your chance of success?

Team Summary

Use your team summary section to outline the leaders and key players in your tour company. An organizational chart works well to display this information and will usually explore members of management and other key personnel, their job titles, and their roles and responsibilities. Be sure to address how each person plays/will play an integral role in the success of your tour business or travel company.

Even if your business is very small or you run a sole proprietorship, it’s still worth including a team summary section so that potential investors can get to know who they’re investing in. A team summary adds a human element to your business plan and can help build your readers’ confidence by showing them that they can trust the leaders (even if it’s just you) to bring the company to success.

Financial Plan

Discuss your finances. What is your current financial state, what is your future financial projection, and how do you plan on getting there? If you’re looking for an investment, how much do you need? Include relevant documents, paperwork, statements, calculations, etc. to back up the numbers you’re sharing.

Marketing Plan

Needless to say, tour marketing is one of the most important aspects of your tour business.

Your business plan should have a detailed marketing strategy and promotional tactics, including pricing strategy, advertising channels, and innovative tactics. It should also leverage social media and other tourism-related technology to reach your target market effectively.

Your Business Plan Can Set You Up For Success

Investing the time up front to create a simple business plan for your tour company is worth the effort, and is crucial to becoming a successful tour operator. Going into anything without a plan can be risky, and starting a tour business is no different. 

Once you know how to write a business plan and understand the main components that make one effective, you’ll have an invaluable tool for securing investors and planning your company’s growth in the competitive tourism and travel industry. There’s really no better time than now, so go out there, write a killer business plan, and start the tour business of your dreams .

Written By | Edward Nieh

Edward Nieh is a freelance writer and copy editor working across multiple mediums for clients from various industries. He has a degree in creative writing with a focus on screenwriting for feature films.

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Sightseeing Bus Tours Business Plan

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Double Decker Tours of Washington

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.">.

The Company

Double Decker Tours of Washington, LLC (DDTOW), located in the city of Washington, DC is a new sightseeing company in its formative stages.  It is being organized to take advantage of a specific gap in the local sightseeing tour market.  The gap exists in high quality, reasonably priced sightseeing tours in the nation’s capital away from the city center, indicating that a new entrant tour company could be expected to capture a significant portion of the current sightseeing tour market.

The Company’s Mission

Double Decker Tours of Washington’s mission is to provide safe, reliable and fun sightseeing tours to the visitors of Washington, DC using London-style double-decker buses.  Nine of the buses will be open top for sunny warm and beautiful days and three will be closed for cold and inclement weather.

Product and Services

DDTOW will provide daily sightseeing tours and charter services in Washington, DC.  We will survey the White House, Capitol Building, Supreme Court, Senate Office Buildings, House Office Buildings, Museums, Library of Congress, etc., as well as Adams Morgan, the U Street Corridor, Catholic University and many other sites that make up the city. 

Marketing and Sales Strategy

DDTOW will develop a message that touring with us is fun and we will project that message over the airwaves and in print.  We will kick off our message using Comcast Cable System in the Washington area as well as hosting parties for certain tour association decision makers and the media.  We plan a pre-opening marketing budget of $80,000.  As we profit, we will spend about 1% of gross revenues on advertisement and marketing.  We will also distribute survey cards to assess what we are doing right and identify what we are doing wrong.

The Competition

Our main competitors in the Washington sightseeing market are:

• Tourmobile:  Tourmobile is based at East Potomac Park and is authorized by the National Park Service to conduct sightseeing tours along the National Mall and in Arlington National Cemetary.  Tourmobile uses a shuttle service employing 85-passenger trams along the Mall and 120-passenger trams in Arlington.  They have been in business for over 25 years.  Tourmobile was started in 1969 as a subsidiary of Universal Studios to provide interpretive services along the National Mall.  In 1981 Tom Mack bought the company making Tourmobile, Inc. a locally owned Washington DC company.  Tourmobile has over 42 vehicles and serves upwards of 2 million riders annually.
• Historic Tours of America:  HTA operates in Washington as the Old Town Trolley and DC Ducks.  HTA is a national company with outlets across the country.  HTA, like Tourmobile, uses a shuttle system for its passengers and they use 35- to 60-passenger trolleys.
• Grayline:  Grayline International is a global company with offices and tours around the world.  Grayline contracts out its services to local bus lines and runs multiple tours.  Grayline runs the Lil Red Trolley as its service in Washington.
• Zohery Tours:  Zohery Tours is a local company that runs 15-passenger vans and 45-passenger coach buses.  Zohery tours are about 3 hours in length.

Target Market

In recent Washington Convention and Tourism Corporation figures, it showed that 17.6 million people came to visit Washington, DC, spending over $10 billion dollars; $4 billion of that on sightseeing and tourism related activities.  Although overnight leisure travel increased significantly while day-trip volume was down, the good news was that average trip expenditures increased to levels of $480 per day per trip. Many of the trips that were made to the city centered around visiting historical places and museums (36%) and  shopping (24%).  In leisure travel, 36% of visitors were solo travelers as compared to 80% of business travelers and 23% of leisure travelers came with children as compared to 6% of business travelers.  Also many of our visitors to the city have income of over $75K, were married, had no children, were in the 35-54 age group, and had an advanced degree.  Visits from foreign tourists fell three years ago by 19% and by 14% two years ago, but over 1 million foreign tourists came to Washington, making it 8th in US destinations by foreign visitors.

Michael Frank Coleman* will serve as member manager. He has extensive experience in the Washington sightseeing industry, working for Tourmobile and conducting walking tours around town.  Mr. Coleman has a knack for recognizing opportunities and developing staff members to take advantage of those situations.  Mr. Coleman will assemble a staff of experienced tour professionals to oversee operations and market our services.   

Paul F. Williams* has over 30 years of entrepreneurial experience in international and private sector business development and will act as DDTOW’s business development manager. 

*Confidential and proprietary resume data has been omitted from this sample plan.  

Tickets sales and boarding of the buses will take place at the MCI Center at 601 F Street in Northwest Washington.  This site gives us great foot traffic in the heart of the entertainment district as well as ample parking and public transportation access.  The buses will be stored and serviced by Peter Pan Bus Service in Tuxedo, Maryland thereby reducing staff cost and insuring top notch services for our customers.  A small office located on Third Street in Northeast Washington will serve as administrative offices.

Our research and projections indicate that the demand for sightseeing tours in and around Washington is sufficient to provide Double Decker Tours of Washington, LLC with revenues of over $14 million dollars in its first full year of operations, utilizing 15 used London-style double-decker tour buses and selected routes throughout the city.  These sales figures are based on capturing 453,000 customers out of a potential customer base of 22 million people.  Second year revenues are expected  to exceed $17 million serving over 500,000 customers with additional advertising and expanded tours.  The DDTOW plan has the potential for a more rapid growth due in part to new memorial and other venues that are opening in Washington in the near future.  In short, the demands for tours in DDTOW’s target market during the coming year will be more than enough to support DDTOW’s anticipated market share.  These sales levels will produce net profits of $13 million dollars in the first operational year and $15 million in year two.  Net profits in year one will be over 60% of sales and will maintain that level in year two.  The company’s long term plan is part of the due diligence package.  The first few months of formative operation will burn cash (see the Start-up table later in this document) until revenue can commence.  This is due to the organizational and regulatory obligations of a new tour operator but aggressive marketing and promotion will readily make up for the slow start.  

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After our service starts, we will keep a close eye on sales and profit.  If we are on target at the end of year two,  we will look to expand into a new market.

Risk Evaluation

With any new venture, there is risk involved.  The success of our project hinges on the strength of acceptance of our new tours and buses.  After year one, we expect a lot of competition in the form of the established tour operators banding together against us.

Ideally, DDTOW would like to expand into the Baltimore, Richmond, Atlanta and Miami markets over the next ten years.  At that time, we will entertain the possibility of a buy-out by a larger Sightseeing/Tour operator or seek to sell to a new owner.

Funds Sought and Utilization

DDTOW is seeking financing of $800,000, in the form of a five-year loan.  Most of the planned start-up costs are apportioned to the following areas in approximately declining value:

• Purchasing twelve 70-passenger London-style double-decker sightseeing buses, nine of which are open top for beautiful days and nights and three closed top for cold or inclement weather.
• Provisions of a sufficient cash reserve to assure timely payment of operating costs of the buses for the first three months.
• Costs associated with recruiting, training, and paying operational crews.
• Marketing, advertising, and public relations costs, including the cost of setting up a website capable of offering tour information and making online sales and reservations, and related Internet marketing, as well as conventional print and broadcast advertising, and public relations activities.
• Administrative and legal costs incurred in setting up the business and the tour operations.
• A reserve to cover overall operating costs, aside from bus operating costs, over at least the first three months of operations.

The following chart illustrates the highlights of our business plan over the first three years. 

1.1 Objectives

Double Decker Tours of Washington will have as it primary objectives the following elements:

• To establish and operate a new tour company aiming specifically at touring the monuments, memorials, museums, and government buildings of the capital city as well as touring the historic neighborhoods away from the city center.
• To implement an organizational and marketing strategy that will, beginning in the first months of operation, achieve an average load per bus of 65-85 percent depending on season and increasing thereafter to 75-100 percent, thereby maximizing revenues and return on investment while reducing risk.
• To achieve revenues of about $14 million by our first full year of tour operations, exceeding $20 million by our third year.  Also to expand into newer markets in the Baltimore-Washington corridor.
• To achieve net operating profits of 60-70 percent within the first 12 months of tour operations and steady growth enabling rational expansion of the company thereafter.
• To achieve the following results starting with twelve 70-passenger London-style doubledecker buses obtained through purchase to serve the touring public in Washington and incrementally expanding the fleet as demand grows.
• To gear operations, and present a professional, serious, growth-oriented image from the outset, that will set the stage for a reasoned, planned expansion, mirroring growth rates projected for the first years of operations.
• As an element critical to achieving DDTOW’s other key objectives, to identify and develop strategic alliances through the DC Chamber of Commerce, the Greater Washington Board of Trade, the Washington Convention and Tourism Corporation and other Washington associations and tourism groups. 

1.2 Keys to Success

In descending order of importance, the five critical keys to success for Double Decker Tours of Washington are:

• Employing an experienced, highly professional management team that combines vision; realism; financial ability; solid knowledge of the Washington tour/sightseeing market; familiarity with, and belief in, the utilization and benefits of the latest computer informational technologies; realization of the crucial importance of an organization personnel to its success; and a total commitment to the overall mission and goals of Double Decker Tours of Washington.
• Intelligent, progressive, and aggressive marketing that identifies the company as a different kind of player, one that is sharper and smarter, with a higher level of professionalism and operational standard than is the norm in the Washington region.  Concentration on safety, with highly trained, dedicated, and professional personnel, caring for the customer and the customer’s needs and straightforward, understandable fare pricing will form key pillars of the marketing strategy.
• Identification, through careful market research, of unserved or under-served routes in the city that may be of interest to our customers and enable high load factors and profitable operations.
• Use of a fleet of London-style doubledecker buses that offer an unobstructed view of the city from the top deck and offers a high level of comfort, safety, and fuel and operational efficiency.
• Use of information technology to reduce staffing and other operational cost; expand the potential market base; readily capture sales opportunities; and enhance customer convenience and satisfaction.

1.3 Mission

Double Decker Tours of Washington, LLC has a mission to provide safe, professional, reasonably priced sightseeing services to our customers.  We intend to fill a niche in the Washington sightseeing market that is unmet at this time, to sites in the city that are not currently shown, as well as highlight the sites that are known to millions of visitors.  We will operate and maintain the best fleet of buses available and we will never skimp on safety or customer service.  We will always have and promote fun tours so that when the customer leaves us, they will remember the good time they had and recommend us to a friend or relative.  We will provide friendly and courteous service from the time we meet to the time they leave.  

With a combination of clean buses, friendly and informative and helpful driver guides along with outstanding customer service, DDTOW intends to lead the other companies and make our standards their ambition.

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

Double Decker Tours of Washington is a new company that will provide daily sightseeing tours in Washington DC.  Its sales and boarding point will be located at the MCI Center in Northwest Washington, and administrative offices on Third Street in Northeast Washington.  The operation will focus on:

• Providing regular sightseeing tours of the nation’s capital to include monuments, memorials and other sites of interest.
• Provide charter service for special groups.
• Provide tours of other historical and interesting venues away from the city center.

2.1 Company Ownership

Double Decker Tours of Washington will be created as a closely held private District of Columbia Limited Liability Company based in Washington, DC. It will be owned by its founder and principle investors. 

2.2 Company Locations and Facilities

2.2.1 hours of operation.

DDTOW will be open seven days a week.  Tour service will begin at 8:30 am during the spring and summer months and 9:00 am during the winter.  Our evening tour service will begin at 6:30 pm during the winter months and 7:30 pm during spring and summer.  We will be closed on Thanksgiving and Christmas.

2.3 Start-up Summary

Most of the planned start-up costs are apportioned to the following areas:

• Purchasing twelve 70-passenger London-style double-decker sightseeing buses, nine of which are open top for beautiful days and nights and three closed top for cold or inclement weather.  We budgeted $225,000 for the buses, and it will cost us an additional $100,000 for the paint job.
• In addition to the twelve buses, our other long-term assets will include the audio-visual system that will be installed on the buses, for which we budget $80,450.
• Provisions of a sufficient cash reserve to assure timely payment of operating cost of the buses for the first three months.
• Costs associated with recruiting, training and paying operational crews.
• A reserve to cover overall operating costs, aside from bus operating costs, over at least the first three months of operations. 

  Start-up capital will be financed through investment and long-term loans.  Start-up details are located in the table listed below.

Double Decker Tours of Washington will provide double-decker bus sightseeing tours throughout Washington and close-in memorials.  We will survey the national monuments, White House, US Capitol, and the many government buildings along the way during a 2-1/2 to 3 hour  tour.  DDTOW will run 12 converted London-style double-decker buses, giving our tour customers an unobstructed photo opportunity of the many beautiful sites in Washington. 

To make us different from the rest of the companies that operate here, we will aggressively advertise our services and stress and strive for the best service, tours and customer service in the industry.  To accomplish this, we will present surveys to our customers after every tour and we will evaluate our services at our weekly meetings to expand what we are doing right and correct what we are doing wrong.  Each night, our buses will be cleaned and serviced to prevent breakdowns and each day, before tours begin, we will inspect ourselves to make sure that we are presentable to our customers.  To expand our services to the widest amount of people, in the future, we will install a multilingual audiovisual system aboard each bus that will explain the tour in Spanish, French, Japanese and German, as our driver guide narrates in English.

3.1 Service Description

Double Decker Tours will be a full service tour and sightseeing company which will also provide charters for special occasions.  DDTOW’s knowledge of the nation’s capital, it’s rich history, and it’s local entertainment and cultural areas will ensure we provide our customers with a well narrated tour.  Our competitive rates and our focus on customer satisfaction will position DDTOW as a tour company that will be able to weather the economic climate that is facing Washington today and help garner repeat business. 

Our tours will consist of surveying the White House, Capitol, Senate Office Buildings, House Office Buildings, Library of Congress, Supreme  Court, Botanical Garden, National Gallery of Art, Smithsonian Museums, Washington Monument, Holocaust Museum, Hains Point, Jefferson Memorial, Roosevelt Memorial, Lincoln Memorial, Kennedy Center, Georgetown, Iwo Jima Memorial, Embassy Row, National Cathedral, Ford’s Theatre, FBI Headquarters, Union Station, Japanese-American Memorial and many other sites throughout the city.

3.2 Competitive Comparison

The Washington DC tourism and convention market before September 11, 2001 was robust and  hosted more than 18 million visitors annually.  Since that time, the industry has seen a reduction in the number of visitors because many of the sites that were open now have been closed or access restricted.  Although this may present a deterrent to many people, Washington has many visitors that still come for business and pleasure, so that while depressed, the market is growing and will climb back to previous levels in the future.  In the Washington metro area, over 4 million people make this their home so Double Decker Tours will have many customers to choose from.  DDTOW will tailor its tours to take advantage of areas that are still open.

3.3 Sales Literature

Brochures to feature our tours and services will be produced locally and distributed to hotels, information service kiosks and the Washington Visitor Center.  Direct mail, advertisements and sales promotion literature will be utilized as needed.

3.4 Special Interest Tours

Double Decker Tours of Washington will concentrate on the local sightseeing and tour services, but we will also develop special interest tours for Black History Month, Veteran’s Day, Cherry Blossom Festival and others to showcase the diverse cultural aspect of the city.  We will employ multilingual narrators to cater to our foreign visitors. 

In the future, DDTOW will add buses to our fleet so that we may offer a shuttle service narrative tour in the same way that Tourmobile does today.  We intend to expand into the Annapolis and Baltimore markets.

Market Analysis Summary how to do a market analysis for your business plan.">

In recent 2002 WCTC figures, overnight leisure travel increased significantly, while day-trip volume was down, but the good thing was that average trip expenditures increased to 2000 levels of $480 per day per trip.  Many of trips that were made to the city centered around visiting historical places and museums (36%) and  shopping (24%).  In leisure travel, 36% of visitors were solo travelers as compared to 80% of business travelers and 23% of leisure travelers came with children as compared to 6% of business travelers.  Also many of our visitors to the city have income of over $75 thousand, were married, had no children and were in the 35-54 age group.

Our potential customers are people who want a unique tour experience at a reasonable price.  These will include people who come to the city for the day, leisure travelers, honeymooners, budget-conscious travelers, business travelers, families, students and seniors.

4.1 Market Segmentation

• Sightseeing, R&R, Honeymoon, Special Interest: Our most important customers will be the people who visit Washington for sightseeing, rest and relaxation, on their honeymoon or are here for a convention or other special interest.   We will develop special pricing to encourage honeymooners to spend some time with us and we will highlight their recent marriage during the tour.  Because we support our service people, we will offer discounts to active duty and retired military personnel during Memorial Day and Veteran’s Day holidays.
• High-income:  For these travelers price is not an option, so by pricing ourselves in the middle of the market, we will be able to attract these customers.
• Budget conscious travelers, families, students and seniors:  This group of travelers will find our prices competitive and the tour unsurpassed by the existing tour companies.

Overall, we split our potential market into the DC visitors and Washington area residents. The table below summarizes our market analysis projections.

4.2 Target Market Segment Strategy

Double Decker Tours is located in Washington, DC, our nation’s capital.  The monuments, memorials, theatres, museums and other points of interest make this one of the most visitor intense cities in the country.  Each year over 18 million visitors come here and with the opening of the new convention center, an additional 3-4 million are expected.  Also in the next year, many new sites will be opened such as the World War II Memorial Museum, City Museum, US Capitol Visitor Center, Martin Luther King Memorial and American Indian Museum bringing many new visitors and potential customers to the city. 

All who come for a day trip or who are here for business or pleasure and stay overnight will be in our target market.  We will develop our marketing message to attract these customers and our company policy and aim will be to develop repeat business through word-of-mouth advertising and paid advertisement in the local media.  Our proposed location at the MCI Center will also help in attracting customers since it will be in the heart of the entertainment district with plenty of parking and access to Metro.

4.2.1 Market Opportunities

In addition to 4 million residents, the Washington area also welcomes around 18 million visitors annually.  As indicated above, both of these groups represent DDTOW’s potential customers.  Market research shows that our potential customers spend over 45 weeks per year in a work setting and when they come to Washington, they have between 3 to 7 days to experience our fair city.  Many take sightseeing tours to get an informative layout of the monuments and other points of interest.  This allows them to familiarize themselves with the historic monuments of the nation’s capital in a relaxing and informative way.

4.3 Service Business Analysis

The US travel and tourism industry is the third largest retail industry generating revenues of over $100 billion dollars a year.  The industry is separated into two main categories, business and leisure travel.  Each constitutes about 45% to total revenues.  The remainder of revenues are generated from combined business/leisure travel.  The market is further divided into domestic and international travel.  Domestic travel accounts for more than 70% of generated revenues.  Business travel can be divided into two categories, the medium and large corporate account and the small independent businessman.  Leisure travel is classified according to the types of trips they take, age, and income.

The four primary leisure travel groups are:

• Adventure, Special interest, R&R, Honeymoon and Sightseeing
• High-income Travelers
• Budget-conscious Travelers
• Families, Students and Seniors

4.3.1 Competition and Buying Patterns

There are many companies in Washington providing sightseeing, tours and charter services.  Most of them have one or two things in common, they use coach buses (45 passengers), Trolleys (35-40 passengers) or Tram (85-120 passengers) and the two largest, Tourmobile and Old Town Trolley, use a shuttle system where they stop at certain points in the city so the passenger can get off and explore the site.  Double Decker Tours may do this in the future, but our focus at this time will be to provide clean buses and  informative tours from a single pick-up and drop-off point.  During the warm spring, summer, and fall nights we will conduct a three-hour tour where we will make three stops so that our customers can explore the Jefferson, Lincoln, and Roosevelt memorials.

4.3.2 Main Competitors

Our main competitors in the Washington sightseeing industry are:

• Tourmobile :  Tourmobile is based at East Potomac Park and is authorized by the National Park Service to conduct sightseeing tours along the National Mall and in Arlington National Cemetary.  Tourmobile uses a shuttle service employing 85-passenger trams along the Mall and 120-passenger trams in Arlington.  They have been in business for over 25 years.  Tourmobile was started in 1969 as a subsidiary of Universal Studios to provide interpretive services along the National Mall.  In 1981 Tom Mack bought the company making Tourmobile, Inc. a locally-owned, Washington, DC company.  Tourmobile has over 42 vehicles and serves upwards of 2 million riders annually.
• Historic Tours of America :  HTA operates in Washington as the Old Town Trolley and DC Ducks.  HTA is a national company with outlets across the country.  HTA, like Tourmobile, uses a shuttle system for its passengers and they use 35- to 60-passenger trolleys.
• Grayline :  Grayline International is a global company with offices and tours around the world.  Grayline contracts out its services to local bus lines and runs multiple tours.  Grayline runs the Lil Red Trolley as its service in Washington.
• Zohery Tours :  Zohery Tours is a local company that runs 15-passenger vans and 45-passenger coach buses.  Zohery tours are about 3 hours in length.

Strategy and Implementation Summary

DDTOW will focus it’s efforts, initially, on tours in and around the city of Washington.  Being the nation’s capital, its rich history attracts visitors from across the country and around the world.  Estimates from the Washington Convention and Tourism Corporation concludes that over 18 million visitors come to the city spending over $10 billion dollars.  Most of the money is spent on lodging and food but a considerable portion is spent for touring and sightseeing.  By tapping into 2% of the potential market or 453,000 customers,  Double Decker Tours is posed to make over $14 million dollars in sales during it’s first full year of operations.  We intend to advertise heavily in the region to attract customers and hold unique events to help boost sales.

Another method we will utilize to capture sales will be a Welcome Aboard photograph.  How this works is that as our customers are boarding the bus for a tour, we will take a photograph of them and when they return, we will have a digital photo board with their picture on it.  If they would like their photo, we will print it and frame it with one of our DDTOW frames, and we will let them e-mail their photo to anyone in the world from our e-mail server.

5.1 Competitive Edge

DDTOW’s competitive edge is recognizing a niche market that is unfulfilled at the moment.  That market consists of introducing to the Washington sightseeing public the other city away from the monuments and memorials of the Federal City.  Groups such as CulturalTourismDC, HeritageDC, DowntownDC and the mayor’s office are spending millions of dollars to entice visitors to the scenic and entertainment sections of Washington.  DDTOW can take advantage of this promotion by introducing a fleet of London-style double-decker buses and specialized tours in the areas that are being highlighted.  Tourmobile, because of their charter with the National Park Service, cannot operate off the National Mall and Old Town Trolley, being a national service, has established their routes and at this time are not interested in exploring areas that may not be profitable to them.  We, on the other hand, with aggressive marketing and promotion in conjunction with the above groups can capitalize on that new and emerging market as well as provide regular tour around the monument and memorial that most tourist want to see.

5.2 Marketing Strategy

Double Decker Tours adheres to the theory that the goal of business is to create and keep customers happy.  Our marketing strategy will reflect this goal as we build our reputation in the Washington sightseeing/tour market.  Many of DDTOW’s potential customers spend over 55 weeks per year in a work setting and when they come to Washington, they have between 3 to 7 days to experience our fair city.  Many take sightseeing tours to get an informative layout of the monuments and other points of interest. 

DDTOW will promote the capital city of monuments, memorial and historical sites plus we will provide them with a view of the other city.  Our tours will take them to the neighborhoods that they might have seen in the movies, our entertainment districts, and other prominent sites that will pique their interest.  At the end of the tour, our goal is have each and every customer leave the bus with an ear-to-ear grin.  That way when the customer goes home, they will tell their friends about our service and the beauty of Washington.  We will also follow up our tours with survey forms so that we can get feedback from our customers so that we may improve.

5.2.1 Pricing Scheme

Much of Double Decker Tours’ pricing is determined by our competition.  The price of sightseeing in Washington ranges from $15 to $40.  By setting our price at the level of $30, we will appeal to the budget conscious traveler as well as those that price is not an option.  With a potential market of over 22 million people per year, we are basing our first year figures on servicing 453,000 or 2% of the potential visitors.

5.2.2 Promotion Scheme

The overall concept and design of Double Decker Tours of Washington sets the stage for its promotion.  Marketing and promotion will stress the unique buses, the fun you can have with us and quality of tours that will set it apart from the rest.  Strong public relations combined with well-placed, well-designed, distinctive advertising appealing directly to people who are our prospective customers will help get the word out.

5.2.3 Marketing Scheme

Customers will be reached through traditional marketing communication methods.  Research suggests that our target market customers, and travelers in general, are Internet savvy, so before traveling to Washington, many will access the Web for sightseeing information and may make reservations or purchases via that medium.  Besides, the Internet will serve as an effective means of communication and distribution of information about our services.  DDTOW will target our customers initially at our kiosks and bus stops as we board our passengers, giving them brochures and other literature that they may share with their family and friends, but we will also look at cable television, radio and other inexpensive media to get our message out.

5.2.3.1 Marketing Effort

The marketing effort will employ a mix of vehicles to convey our message and presence.

• Print media — local newspapers, free weeklies
• Broadcast media — local programming and special interest shows
• Hotel guides — concierge relations, Chamber of Commerce, Board of Trade, Washington Convention and Tourism Corporation brochures
• Misc. — Yellow Pages, charity events

The marketing effort will be split into three phases using the media vehicle described above:

1) Opening — An advanced notice (press packet) sent out to all media and printed announcement ads in key places, rack brochures, direct mail/giveaways.  Budget – $80,000

2) Ongoing — A flexible campaign (using above media), assessed regularly for effectiveness.  Budget – $12,000 per month in the first year

3) Point of sale — A well trained staff can enhance the customer’s overall experience.  Word-of-mouth referral is very important in building a customer base.

5.2.4 Futuristic Plans and Strategic Opportunities

DDTOW, upon successful operation of two years, will begin to develop strategies and plans geared towards opening new offices and sightseeing services in Baltimore, Annapolis, Miami and eventually Atlanta, expanding as the need and resources allow.

5.3 Sales Strategy

Double Decker Tours will aggressively sell the benefits of touring with us by implementing the following action items:

In our first months of operations we will:

• Begin a major advertisement campaign to let the Washington area sightseeing public know that there is a new tour in town.
• We will host a party for the concierges of all the major hotels in Washington and present them with an incentives offer for referrals to DDTOW.
• We will join the DC Chamber of Commerce, Washington Convention and Tourism Corporation and Washington Board of Trade and cohost a meet and greet party for the local business, media and government officials and invite decision makers from the area.
• We will buy inexpensive media time throughout the year on local radio, in the print media, on television and cable television outlets to promote our tours and the fun that you can have traveling with Double Decker Tours.

In the future we will:

• During the school year we will offer discount tours to area schools and during the summer we will offer discount tours to area colleges and universities for their incoming freshmen and their families.
• Develop special tours such as ‘Lovers Only’ tours at Valentine Day.
• Host Fraternity and Sorority night tours.
• Develop ‘Movie Scene’ tours.
• Host Family Reunion special tours.
• Develop Veterans tour specials.
• Host a once a year Stone Cold Family Picnic tour.
• Add to our product line a picture-taking ability so that before customers go on one of our tours, we will take pictures of the group and have a framed portrait waiting for their return, as well as the ability to send the picture via e-mail to anywhere in the world.

Our commitment is to maximize the pleasure of our customers so that their time with us will be one of the most memorable parts of their trip to Washington.  As we grow and profit, Double Decker Tours intends to spend from 5% to 10% of gross revenues on advertising thereby raising DDTOW’s image in the regional tour and sightseeing market.

5.3.1 Sales Forecast

The sales forecast is based on DDTOW capturing a 2% share of the over 18 million visitors that visit Washington along with the approximately 4 million people that live in the metro area.  That means that DDTOW would have to service 453,000 customers during the 2004-2005 year, 543,600 during the 2005-2006 year and 652,300 during the 2006-2007 year.  These figures are based on running an average of 24 tours per day divided between 12 buses during the summer and  8 to 18 tour per day during the winter months.  During the summer months in Washington, with the amount of advertising  and aggressive marketing that we plan to do, DDTOW will be able to meet the goals that we have set for ourselves. 

Another service that DDTOW will offer our customers will be a digital photograph of their group.  As the groups prepare to board our buses, we will take photographs of them.  After they finish the tour and return to the MCI Center, we will have a framed photo of them already mounted along with a digital copy that they can e-mail through our Internet station to anyone in the world.  We will charge only $10 dollars for this and we forecast only about 1 in 15 will take advantage of this option.  This is an option that none of our competitors are using at the moment.

The table below summarizes our sales forecast.  We have chosen to treat only fuel and photo processing and Internet connections as our direct costs of sales, while some of our other projected expenses related to the service delivery, such as drivers’ salaries, are reflected in our Profit & Loss projections later in this document.

5.4 Milestones

Double Decker Tours of Washington’s important milestones are detailed in the following table.  DDTOW believes that it is important for a company to set goals because this helps determine the company’s strategy and tactics, and maintain company focus.  The milestones are seen as progress points and will be used to measure DDTOW’s success in reaching it’s goals.

What the table doesn’t show is the commitment behind it. Our business plan includes complete provisions for plan-vs.-actual analysis, and we will hold monthly follow-up meetings to discuss the variance and course corrections.

Web Plan Summary

DDTOW will establish a presence on the World Wide Web, linking it to the Washington Visitor Center Web site, to promote our tours, accept electronic mail to answer queries and take reservations.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

Mike Coleman and Paul Williams will serve as member managers, however, DDTOW is a small company and its administrative staff will share in management duties and decision making.  This will make it important for each member of the team to be capable in all aspects of the business.  Prerequisites for all administrative employees will be cash handling, personnel management, computer skills and sightseeing/tour experience. 

We will train our staff to become competent in these areas and we will embark on a continuous training program for all employees.  Our operations staff will consist of experienced driver/guides, many of whom have already worked in the local market and we will contract out to certain narrators for special projects.  DDTOW will contract the maintenance of the buses to Peter Pan in Tuxedo, Maryland, which services Old Town Trolley and Grayline’s Lil Red Trolley, so that the fleet will be well maintained at all times.

7.1 Personnel Plan

DDTOW will begin operating with 22 full time positions.  The positions are as follows:

• Member Manager – Michael F. Coleman
• Member Business Development – Paul F. Williams
• Marketing / Sales Associates (4)
• Courtesy Captains (4)
• Driver/guides (12)

Member Manager and owner, Michael F. Coleman, age 50, has knowledge of the local sightseeing and touring industry in the Washington area.  Mike has gained his sightseeing and tour experience from working for Tourmobile and conducting walking tours in the city over the past two year.  From that experience, he has gain an unique perspective of what it would take to start and run a successful tour and sightseeing company.  Mike has also been involved in scheduling, guiding and many administrative functions needed for running a business. 

Before starting Double Decker Tours of Washington, LLC, Mike sold health care products under the Equinox label until the company went out of business in November 1999.  From that experience, Mike learned how to motivate a sales force, help design new sales strategies and develop creative ways to market the products.

Before that, Mike was a software and database consultant to different companies throughout the Washington area working for such firms as Computer Sciences Corporation, Computer and Applied Sciences, Inc., General Services, Inc., the General Services Administration and PATA USA.  In this capacity, Mike was responsible for scheduling, customer service, writing numerous reports and billing of services. 

Mike also worked as a member of the board for the H Street Northeast Merchants and Professional Association.  Working on the board with numerous business people gave Mike an insight into the day-to-day operations of small businesses and gave him a chance to meet other business people through the associations membership in the Greater Washington Board of Trade.  Mike, as a member of the board, also worked on the H Street Festival Committee in 1999, which re-introduced the H Street Festival back to Washington after a long hiatus. 

Mike also wrote and independently published a book called the Fitness Diary, which allowed fitness enthusiasts to document their workouts.  The Fitness Diary was well received by bodybuilders and those that just wanted to look good.

Member Business Development, Paul F. Williams, has over 30 years of entrepreneurial experience in computer and information technology, export promotion, international business development, private sector development, technology transfer and management and technical assistance domestically and in Africa.  Mr. Williams is founder and president of THE INFORMATION PROCESSING COMPANY, INC. (TIPCO, INC.), an international trade and business development firm.  His company consults with governmental and private sector organizations, businesses and individuals on issues involving domestic and international trade and business development. 

Mr. Williams was the counselor and instructor in International Business Development/Export-Import; past Counselor/Director of Cities In Schools Youth Entrepreneurial Empowerment Project; creator and coordinator of the Volunteer Consultant Corp at Howard University Small Business Development Center; Chairperson, International Trade Committee of the Black Presidents’ Roundtable Association (BPRA); Chairperson, International Trade Committee of the D.C. Chamber of Commerce and many other accomplishments.  Mr. Williams will develop strategies for increasing business for DDTOW.

Marketing/Sales Associates:  The individuals selected for these positions will have extensive experience in the local tourism and sightseeing industry.  They will have a proven track record in generating sales.  Their responsibilities in this position will be to develop marketing and sales materials and campaigns as well as supervising sales personnel as we grow.

Courtesy Captains:  The individuals selected for these positions will have customer service experience as they will be our face to the public.  They will hand out literature about the company and our tours, help customers board the buses and answer questions or complaint that come up.  The Captains will also take photographs of our customers as they board the buses for later sales.

Driver/Guides:  The individuals selected will be required to have a Commercial Drivers License and Tour Guide License.  Drivers will have local knowledge of the city and they will be responsible for the safety of the buses and passengers and will present informative, humorous tours to our customers.

7.2 Compensation and Incentive Plan

Compensation and incentives for employees and managers of Double Decker Tours of Washington, LLC is as follows:

Courtesy Captains and Driver/Guides will receive overtime pay (currently estimated at 20%) in addition to their regular salary.  Also all employees will be covered under a health, dental, and vision plan after three months of employment.  Plans for a profit sharing or 401(k) plan will be available for employees.

At Double Decker Tours of Washington, we believe in an incentive based entrepreneurial approach to management.  To have the employee want to work and make money, we will institute programs that will benefit the employee as well as the company.  For example, when we sell photographs of our passengers, the Courtesy Captains will make a commission on the photos sold during their shift.  How this will benefit them is that a receipt will be processed with the CC name on it so that when a purchase has been transacted, that CC is credited with the sale, thus the commission.  At this point, we will assess what commission will be paid.  For the drivers, we will allow them to compete for tips as well as overtime pay.  But we will also keep tabs on their attendance and appearance.  At the end of the month, those drivers that have the best attendance record and appearance will be allowed to compete for the monthly bonus.

7.3 Advisory Committee

Mr. Coleman is in the process of assembling a group of established businessman as his board of advisors so that he may learn from them the lessons they have learned before encountering them himself.

7.4 Professional Support

• Stitcher, Mosley & Company, PA of Lanham-Seabrook Maryland has been tapped to be our accountants.
• DH Lloyd and Associates have been contacted about our insurance needs.

Financial Plan investor-ready personnel plan .">

Double Decker Tours of Washington’s financial plan is detailed in the following sections.  Preliminary estimates suggest a substantial profit after our first two quarters of operations.  Income estimates are based on garnering 2% of the tourist/sightseeing business in Washington with a growth rate of 20% for the next three years and a growth of 10% after that.

All our financial projections present a conservative but realistic depiction of DDTOW’s financial position based on loans and financing of $800,000.

8.1 Important Assumptions

DDTOW, LLC assumes the following:

• Market growth projections for sightseeing will be down because of war fears that permeate the city but with over 4 million residents in the area and over 20 million visitors per year, DDTOW, LLC will be able to experience a 20% growth rate over the next three years.
• Local economic conditions will remain viable and favorable to the tourism industry for the next five years.
• International conditions will change from a war footing to peace thus increasing tourism to the city.

8.2 Break-even Analysis

The break-even analysis is based on an average monthly fixed cost of approximately $121,200. By placing our ticket price between Tourmobile’s price and Old town Trolley’s, we needed only4,000 riders per month to break even. On a thirty-day basis that comes to about 134 riders per day or 12 riders per bus per day. During the fall, spring and summer months, we will more than surpass that number of riders.

8.3 Projected Profit and Loss

Our projected profit and loss is shown on the following table, with sales increasing from more than $14 million the first year to more than $21 million the third, and profits varying substantially for the start-up phase of this business. We show a profit in the first year on 2% of 22 million visitors to the city or 453,000 customers which equals 1,286 customers per day or making two tours per day for 12 buses.

As with the break-even analysis, we are projecting very conservatively regarding cost of sales and gross margin. Our cost of sales should be much lower, and gross margin higher, than in this projection. We prefer to project conservatively so that we make sure we have enough cash.

The detailed monthly projections are included in the appendices.

8.4 Projected Cash Flow

Cash flow projections are critical to our success. Our analysis shows strong cash generation over the projected period. Some of our assumptions for the cash flow table below are as follows:

• We start repaying on the $800,000 five-year long-term loan at the very beginning of our operations. The first few months will be critical to our survival as we need to make sure that our cash balance remains strong.
• We do not plan any additional long-term asset purchases, except for those summarized in the start-up table earlier in this document, for the first year. During the second and third year we budget $100,000 for each year for additional long-term asset, which may include some additional or replacement buses.
• We assume collecting the District of Columbia’s sales tax (5.75%) off the ticket sales. These sales taxes will be paid out quarterly. For all additional purchases (i.e., operational expenses and capital assets) we assume prices inclusive of applicable sales taxes.

The monthly cash is shown in the illustration below, with one bar representing the cash flow per month, and the other the monthly cash balance. The annual cash flow figures are included here and the more important detailed monthly numbers are included in the appendices.

8.5 Projected Balance Sheet

The balance sheet in the following table shows managed but sufficient growth of net worth, and a sufficiently healthy financial position. The monthly estimates are included in the appendices.

8.6 Business Ratios

We expect to maintain healthy ratios for profitability, risk, and return. The following table outlines some of the more important ratios from the Sightseeing tour company industry. The final column, Industry Profile, details specific ratios based on the industry as it is classified by the Standard Industry Classification (SIC) code, 4725.9902.

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Travel Tour Agency Business Plan

1. executive summary.

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.

We are on the brink of penetrating a lucrative market in a rapidly growing industry. The current trend towards an increase in the number of tourists entering the country presents an opportunity for Sephats Tours to penetrate the market.

An opportunity for Sephats Tours’ success exists because the national tourism industry is growing at a rapid pace annually.

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.

Our services will be positioned very carefully: They will be of extremely high quality, comfortable, informative and tailored to the clients needs such that they will enable individuals to have a greater appreciation of the natural environment and its intricacies.

Our marketing strategy will be based mainly on ensuring customers know about our existence and the service(s) we fulfill. Hence our intention is to make the right information available to the right target customers. This will be done through implementing a market penetration strategy that will ensure that we are well known and respected in the tourism industry.

We will ensure that our prices take into consideration peoples’ budgets, that these people appreciate the service(s), know that it exists, and how to contact us. The marketing will convey the sense of quality in every picture, every promotion, and every publication.

Our promotional strategy will involve integrating advertising, events, personal selling, public relations, direct marketing and the Internet, details of which are provided in the marketing section of this plan.

It is important to recognise that we do not intend to just take individuals on sightseeing excursions, but also to ensure that they appreciate nature through informative briefings on objects’ origins.

This element will assist in differentiating us from our competitors and contribute towards the development of a sustainable competitive advantage.

Hence we need to engage the right people in the right place at the right time if we are to ensure optimum growth. We intend to develop our team so that our people can grow as the company grows – a mutually beneficial relationship.

We project sales to increase from more than P350,000 (Botswana Pula [P]) the first year to more than P556,500 the second, and P630,000 in the third year.

In a nutshell, we do not just intend to market and sell our service, but to market and sell travel solutions and a total-quality environment. This will ensure we establish a reputable corporate image.

1. Objectives

Our business strategy will revolve around the need to provide quality service to our various target customers, in the process fully satisfying their needs. This shall be undertaken through recruitment of a professional team and the provision of good quality custom-designed travel packages, catering to the client’s particular needs.

With time our marketing campaign will increase the awareness of our services in the various market segments we shall be targeting. This is particularly so with the organisation looking at establishing a clear advantage(s) in an increasingly competitive market.

We will provide clients with the opportunity to focus on their core activities whilst their transportation side needs are fully satisfied. Marketing material shall be professionally done so as to be reflective of our intended image and reputation.

We shall position ourselves as a quality commercial transportation operator that provides customer-need fulfillment, enjoyment, reliability and a good image. We intend to establish a good rapport with all the relevant stakeholders, especially hotels and travel agents.

We also intend to have well-designed brochures and other promotional material that will enable clients to have an understanding of the types of services we offer and advantages of utilising them.

In addition well-done, informative brochures, fact sheets and business cards often have a triggering effect on clients contemplating utilising our services. Hence this will undoubtedly generate increased sales of our service.

In summary we intend to attain the following objectives:

• Continuously provide enjoyable quality excursions/trips on time and on budget.
• Develop enthusiastically satisfied customers all of the time.
• Establish a market presence that assures short-term and long-term profitability, growth and success.
• We are fully committed to supporting growth and development in the tourism and overall economy of Botswana.
• Contribute positively to our communities and our environment.

Internally we intend to create and nurture a healthy, exuberant, respectful, and enjoyable environment, in which our employees are fairly compensated and encouraged to respect the customer and the quality of the service we intend to provide.

In addition follow-up will be mandatory so as ensure customer satisfaction and make any improvements as recommended by the customers in future.

We seek fair and responsible profit, enough to keep the company financially healthy for the short and long term, and to fairly remunerate employees for the work and effort.

3. 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 realise 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.

2. Company Summary

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.

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.

1. Company Ownership

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.

2. Start-up Summary

Thus far the directors have contributed one hundred and sixty seven thousand pula (P167,000) to purchase a Mercedes Benz mini bus currently in its possession and P30,000 for cash expenses. Total start-up expenses covered (including legal costs, business plan compilation, license costs and related expenses) come to approximately P5,000.

3. Company Locations and 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.

3. Services

Sephats Tours is a travel company that intends to deliver leisure travel excursions to customers. Sephats intends to guide customers in selecting a trip(s) based on pre-defined vacation criteria. This analysis will be based on user profiles, set by the consumers, which includes preferences such as:

• Activities sought
• Destination, and
• Time of Travel

A traveler will hence be able to select areas of interest based on their preferences and subsequently identify destinations to visit.

The intention is to provide customers with access to exclusive travel destinations, service to fully appreciate destinations through information packages, not just sight-seeing, and access to special interest travel according to the group’s/individual’s preferences.

1. Competitive Comparison

There are presently few competitors offering services similar to ours. However considering the pace of change and current growth rate of the tourism industry luring many companies into the sector, this may be short-lived.

Hence there will be a need to not only firmly establish ourselves on the market, but also strongly differentiate ourselves from these other businesses. However on a broader scale our competition comes in several forms:

The most significant competition are hotels and travel agencies offering travel excursions to their clients. They undertake this service in order to establish a competitive advantage over their competitors.

However, instead of directly competing with them we intend to establish good working relationships in the form of strategic alliances such that we are able to offer the service for their clients and thus enabling them to concentrate on their core activities whilst ensuring customers are fully satisfied.

Our key advantage in this regard will be our specialty of the service and hence wide knowledge ensuring customer satisfaction at all times as well as flexibility in providing the service. Existing hotels, lodges and travel agencies may identify the opportunity to diversify into our intended services utilising their current client database.

Naturally, existing clients will be inclined towards utilising these familiar companies due to the fact that a good relationship may have already been nurtured over the years during their business dealings.

This presents a potential challenge to us, as we need to aggressively market our services and expertise in the field. Existing safari operators that mainly focus on the remote environs such as Maun and Kasane are at times able to compromise, offering excursions in and around Gaborone, though very rare. Hence we intend to focus on this market. An analysis of competition is provided in the Market Analysis section of this plan.

2. Service Description

Sephats Tours intends to offer the service and knowledge a discerning leisure traveler seeks whilst on vacation, with the intention of seeing and appreciating the numerous sights in the area.

Keeping in mind the comforts of a tourist, our fleet shall be very well maintained and designed as per customer standard and expectations. However not wanting to limit ourselves we intend to be open to special hire by churches, organisations, groups, schools and sports teams, amongst other related groups.

The game reserves and lodges that we intend to be our main destinations are:

• Mokolodi Nature Reserve
• Goborone Game Reserve
• Gaborone Dam
• The Oodi and Mochudi Craft Villages
• Kolobeng and Thamaga
• Khutse Game Reserve

Below is a briefing of several places of interest and their various attractions.

• Mokolodi Nature Reserve: Set in a wide valley just 10 minutes drive from the city, this scenic reserve offers a well-developed network of game drives and stone and thatch chalets overlooking a water hole. Mokolodi also offers the rare opportunity to track rhino or to walk through the bush with young elephants. These excursions offer excellent photographic opportunities. Evening drives can include a bush braai giving visitors the chance to see the more unusual nocturnal creatures.
• Gaborone Game Reserve: This 550 hectare reserve provides an ideal get-away for tourists who can see a remarkable range of wildlife in the park including rhino, eland, zebra, gemsbok, wildebeest, kudu, ostrich and impala, all on well-maintained bush roads that are designed for easy access. Bird watching in the Gaborone Game Reserve is excellent, particularly along the eastern edge, bounded by Notwane River, and it typifies the incredible diversity of bird life to be found throughout the Gaborone area.
• Gaborone Dam: On the south bank a remarkably rich variety of bird and wildlife can be seen, including herds of impala, kudu and scuttling families of warthog. New picnic sites, which are currently under development will also provide places of interest. The Gaborone Yacht Club is the main attraction on the dam with its swimming pool, bar and wide verandah overlooking the water off a rocky koppie in the middle of the dam which often becomes an island in the wet season.
• The Oodi and Mochudi Craft Villages: In Oodi the main attraction will be the Lenstwe-la-Oodi weavers. In Mochudi apart from traditionally decorated Setswana architecture, the tourists will find the most southerly baobab trees in Botswana and traditional crafts including the Ithuteng Tin Workshop and Ikgabiseng handmade jewelery. The Phuthadikobo Museum in Mochudi will also be an attraction site.

Other sites will include Matsieng Foot Point, Gemsbok National Park, Mabuasehube Game Reserve, Legaga la ga Kobokwe, Central Kgalagadi Game Reserve, Nxaii Pan and Khama Rhino Sanctuary.

Integrating the above places of interest into our tours we intend to be offering the following tours:

• “Capital Crusade” – City Tour: This will be a professionally guided tour around the city centre including visits to the Main Mall, Finance Mall, National Museum, City Council Library, Gaborone Station, and House of Parliament including others. These tours shall be eye opening in terms of the normal Botswana town folk life style providing knowledge and information throughout the guided tour. Included in this package will be refreshments and information folders detailing the main sites and history of Gaborone. This tour will cover approximately 50 kilometers taking about half a day to complete. Cost: PX per person.
• “Cultural Enrichment” – Cultural Tour: This shall involve tours to the main historical and cultural sites in and around Gaborone including Mokolodi Nature Reserve, Oodi and Mochudi Craft Villages, including the cultural dances. This tour shall reveal the ‘Kgotla’ – cultural villages, traditional paintings and art, as well as the traditional lifestyle. Obviously baobabs will make for good viewing. The tour package will include an information folder, guided tour and refreshments. This tour will cover approximately 200 kilometers taking the whole day to complete. Cost: PY per person.
• “The Essence: Past & Present” – City & Cultural Tour: This will be a combination of the cultural tour and city centre excursion. This will be marketed as a “total package” enabling tourists with very little time to appreciate the Botswana lifestyle, both in the present and past. This tour will invariably take the whole day and cover approximately 250 kilometres. The tour package will include the information folder, guided tour, refreshments and a picnic lunch. Cost: PZ per person.

3. Macro-environment

At a large scale research demonstrates that tourism is undergoing a rapid growth of unsurpassed nature. Generally there is a trend towards shorter stays but increased visits, as individuals strive to experience as many cultures as possible, including seeing as many attractions as possible.

Increasingly Botswana is being marketed as “one of the few places in Africa where game sanctuaries have remained completely unspoiled.

A destination that unlocks the mystery of nature – an oasis in a wilderness which is an ideal escape for nature lovers. Very little of this fascinating country has seen human habitation – this is true Africa in all her remoteness and authenticity.

With such marketing in place the number of tourists entering the country is bound to increase, presenting a larger potential market for ourselves. This potential market is what we seek to tap.

4. Sales Literature

The business will begin with a general corporate brochure establishing its position on the market. This brochure will be developed as part of the start-up expenses including the business cards and Company Profile, mainly for the large organisations that often recommend services to potential customers.

Compliment slips are also intended so as to raise awareness of the company and its services. We also intend to have information pamphlets that will provide information on our various tour packages. Literature and mailings for the initial market forums will be very important.

5. Fulfillment

The key fulfillment and delivery will be provided by the employees of the company. The real core value will be professional expertise, provided by a combination of expertise, experience, hard work, and education (in that order). Hence we intend to ensure that the work we undertake is always thorough and relevant to the clients’ needs.

We will turn to reputable companies for supplying the necessary individuals and groups for our services. Hence the need to establish good relationships with our strategic allies.

6. Technology

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.

7. Future Services

In putting the company together we have attempted to offer enough services to allow us to always be in demand by our customers and clients. The most important factor in developing future services/products is market need.

Our understanding of the needs of our target market segments shall be one of our competitive advantages. It is critical to our effort to develop the right new services. In the future, Sephats Tours intends to broaden its coverage by expanding into additional markets.

One of the main services it aims at providing is to become a destination management company that brings alive the magnificence of this country to the traveler. This will be done by co-coordinating the traveler’s entire experience from hotel bookings, safaris and tours, greeting and porter services, and to tour packages and incentives. However in doing so we will strive to ensure that it is compatible with the existing products and company personnel.

As time progresses the intention will to provide a Southern Africa tour package covering the whole of southern Africa.

4. Market Analysis Summary

We are today experiencing a rapid growth in the economy of unsurpassed nature. This has been brought about by, amongst other things, the relaxation of foreign exchange policies and macroeconomic policies geared towards attracting foreign investors into the country.

The fiscal and monetary policies of the government geared towards maintaining growth with social justice have largely contributed towards this, evidenced by our economy averaging a growth rate of 7% since 1990 – very high by international standards.

The current drive and emphasis by the government on diversification of the industrial base away from the minerals sector presents an opportunity for Sephats Tours to make a valuable contribution towards achieving this goal. Having undertaken a thorough and comprehensive research of the market we realized that there was a need for a tourist transport company that focuses on providing leisure excursions to tourists.

Though there are mobile operators currently on the market, some of whom have been in existence for a relatively long period of time, we believe that there is a market need for one that specializes on providing comfortable and enjoyable transport to tourists and visitors.

This, also considering the fact that, potentially Botswana’s richest natural resource, the tourism industry is becoming an increasingly important player in the economy and may in the long term prove even more valuable than mineral resources in earning foreign exchange.

Aware of the fact that operating in such a market is largely dependent on good networking, we intend to establish networks and strategic relationships with various hotels, lodges and travel agents to ensure a steady stream of clients.

However in so doing we intend to ensure that the service we provide is of extremely high quality and comfortable. Our initial overall target market share shall be 10% of the market, mainly focusing on the greater Gaborone area and southern Botswana.

We appreciate that entering such a market is not a ‘bed of roses’ and will require us establishing strong links with strategic partners as outlined previously. Hence we intend to implement an aggressive marketing strategy, well supported by the other business functions.

The above prognosis influenced our decision to enter the tourist transport industry.

1. Market Segmentation

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 realise 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.

2. Target Market Segment Strategy

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 organisations’ 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 realise 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.

2.1. Market Needs

Though the tourism sector has undergone rapid growth over the last decade the vast majority entering this sector have rushed to the North where we have the Okavango Delta, Chobe National Park, and other sites as attraction points.

Very few have focused on south and central Botswana. With this in mind we intend to exploit the untapped market in this area so as to provide our customers with a good service and realize our business objectives.

We understand that our target markets need more than just being shown the areas of interest but also to be informed about their significance and origins. Hence we don’t just intend to provide a service(s), but to provide one of unparalleled nature relative to the market.

2.2. Market Trends

Of all the uncertainty surrounding this industry, one fact is certain: tourism is here to stay. The only question is how large the industry will become and whether it can sustain, if not exceed, its current growth rate. However large the market ultimately becomes, the company strongly believes that travel will be an important component of this market place. Tourism statistics provide a reliable guide as to the size of the market.

According to the latest tourism statistics total arrivals for 1998 amounted to 1,351,798 representing an increase of approximately 12.65% from the previous year. Of the total arrivals in 1998 205,146 (15.2%) were holiday/tourists whilst 319,440 (23,6%) were visitors, both groups of which constitute our target market, totaling approximately 524,586 individuals.

Source: Tourism Statistics 1998 – Central Statistics Office .

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How To Write A Great Business Plan For A Tour Operator

The first step for any person starting a tour operator business is to sit down and write a business plan..

A business plan for a tour operator shouldn’t just be written to give to banks, consultants, or compliance solutions such as Protected Trust Services. The most important reason to write a business plan is for you. A great business plan will allow you to place your ideas on paper and allow you to reflect and develop different ideas and strategies for your tour operator business to be a great success.

Don’t be intimidated by a business plan for your tour operator business.

We understand that it may seem very formal and intimidating to write a business plan. But, it shouldn’t be, and absolutely doesn’t need to be. This one document is quite simply what it says on the tin, so to speak, – A plan for you and for your business.

A great business plan is always short, concise and to the point.

The true key is to write to your audience – make sure whomever is reading this business plan will fully understand your business plan.

What needs to be included in a business plan when starting up a travel business.

The executive summary.

This is a concise document summarising what is in each section of the business plan.

Business Overview

This area describes your business, point to include:

Business formation history

The type of business

The legal structure – are you a Limited Company?

Location of the business

Means of doing business – are you internet based, high street based etc

Operations Plan

This area should fully describe how your business will work. How will the business be set up, who will be responsible for different tasks, when will different tasks be implemented and completed – In essence, how will your tour operator business operate?

Market Analysis

Arguably this is one of the most important elements. It is imperative that you understand your competition and your place in the market.

The major questions to answer within this area:

• Who are your major competitors? Include a little on their history and their success.
• How much are your competitors charging and how will you price in relation?
• How much demand is there for your product?
• Market demand and consumer behaviour towards the products you intend to offer. Who is your target market?

Team and Management

You may have a great idea but the team who will drive your company are the key to true success. In this section describe your team, their roles and also who you will need to hire to fully support an excellent execution of your product.

How are you going to turn your ideas into a phenomenal tour operator business? Within this area you should fully cover your marketing plan, sales plan and also show how you going to measure your success.

Financial Plan

This area is your eyes! Your financial forecast is incredibly important for any startup tour operator business . Every penny going in and every penny going out should be included. This will allow you to see how to price effectively, marketing budgets, cost of sales, staff costs and every element of monies concerning your business.

We have an ideal financial forecast template for travel businesses and also a very simple business plan template for you to follow. Do email us at [email protected] or call 0207 190 9988 and our consultants will always be more than happy to support you. Our advice is completely complimentary.

For a solid understanding of how to write a business plan do take a look at the following link which is full of extensive explanations that we feel will really help you. How to write a business plan.

If you’d like to discuss this further, please get in contact with one of Protected Trust Services’ (PTS) lovely staff members by calling 0207 190 9988 . Or, you can visit our member support and travel trust account pages to learn more about how we protect you.

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Tour Operators Marketing Plan Template

• Great for beginners
• Ready-to-use, fully customizable Subcategory
• Get started in seconds

Marketing is the lifeblood of any successful tour operator. To stand out in a crowded market and attract more travelers, you need a solid marketing plan that covers all the essential elements. That's where ClickUp's Tour Operators Marketing Plan Template comes in!

With this template, you can easily create a comprehensive marketing strategy that helps you:

• Identify your target audience and understand their needs and preferences
• Develop compelling tour packages and services that resonate with potential travelers
• Implement effective marketing channels, such as social media, email campaigns, and content marketing, to reach your target audience
• Track your marketing efforts and measure their impact on bookings and revenue

Don't let your tour business get lost in the noise. Use ClickUp's Marketing Plan Template to elevate your marketing game and attract more travelers today!

Benefits of Tour Operators Marketing Plan Template

A well-crafted marketing plan can be a game-changer for tour operators, helping them achieve their business objectives and stand out in a competitive market. Here are some benefits of using the Tour Operators Marketing Plan Template:

• Streamline your marketing efforts by outlining clear goals, target audience, and messaging strategies
• Increase brand visibility and attract more potential travelers through targeted marketing campaigns
• Optimize your promotional activities and allocate resources effectively for maximum ROI
• Stay ahead of the competition with a comprehensive analysis of market trends and competitors
• Track and measure your marketing performance to make data-driven decisions and enhance your strategies

Main Elements of Tour Operators Marketing Plan Template

ClickUp's Tour Operators Marketing Plan template is designed to help you effectively market your tour operator business. Here are the main elements of this List template:

• Custom Statuses: Track the progress of your marketing tasks with 6 different statuses - Cancelled, Complete, In Progress, Needs Input, Planned, and To Do.
• Custom Fields: Utilize 6 custom fields such as Quarter, Task Type, Impact, Progress, Percent Completion, and Effort to provide detailed information about each marketing task and monitor its performance.
• Custom Views: Access 5 different views to gain a comprehensive understanding of your marketing plan. These include Key Results, Timeline, Getting Started Guide, Objectives, and Progress Board.
• Project Management: Leverage ClickUp's powerful project management capabilities to streamline your marketing efforts. Use features like task dependencies, time tracking, and integrations to enhance collaboration and drive success.

How to Use Marketing Plan for Tour Operators

If you're a tour operator looking to create an effective marketing plan, follow these steps using the Tour Operators Marketing Plan Template in ClickUp:

1. Define your target audience

Start by identifying your ideal customers. Consider factors such as age, interests, location, and travel preferences. Understanding your target audience will help you tailor your marketing efforts to reach the right people.

Use custom fields in ClickUp to categorize and track your target audience segments.

2. Set clear marketing goals

Decide what you want to achieve with your marketing efforts. Are you looking to increase bookings, expand your customer base, or promote a new tour package? Setting specific and measurable goals will help you stay focused and track your progress.

Use Goals in ClickUp to set and track your marketing objectives.

3. Choose the right marketing channels

Determine which marketing channels will be most effective in reaching your target audience. Consider using a mix of online and offline channels such as social media, email marketing, SEO, content marketing, and partnerships with travel influencers or local businesses.

Use the Board view in ClickUp to create a visual representation of your marketing channels and track your progress.

4. Create compelling content

Develop engaging content that showcases the unique experiences and benefits of your tours. This could include blog posts, videos, stunning imagery, customer testimonials, and interactive maps. Tailor your content to each marketing channel to maximize its impact.

Use Docs in ClickUp to create and collaborate on your content ideas and strategy.

5. Analyze and optimize

Regularly review your marketing efforts to see what's working and what can be improved. Analyze key metrics such as website traffic, conversion rates, social media engagement, and customer feedback. Use this data to make informed decisions and optimize your marketing strategies.

Use Dashboards in ClickUp to visualize and analyze your marketing performance across different channels and campaigns.

By following these steps and utilizing the Tour Operators Marketing Plan Template in ClickUp, you can create a comprehensive and effective marketing plan that helps you attract more customers and grow your tour business.

Get Started with ClickUp’s Tour Operators Marketing Plan Template

Tour operators can use the Tour Operators Marketing Plan Template to effectively plan and execute their marketing strategies to reach their target audience and drive bookings.

First, hit “Add Template” to sign up for ClickUp and add the template to your Workspace. Make sure you designate which Space or location in your Workspace you’d like this template applied.

Next, invite relevant members or guests to your Workspace to start collaborating.

Now you can take advantage of the full potential of this template to create a comprehensive marketing plan:

• Use the Key Results View to set measurable targets and track the success of your marketing campaigns
• The Timeline View will help you visualize your marketing activities and deadlines
• Refer to the Getting Started Guide View to get familiar with the template and understand how to best utilize its features
• The Objectives View will help you define the goals and objectives of your marketing plan
• Use the Progress Board View to track the progress of each marketing task and ensure everything is on track
• Organize tasks into six different statuses: Cancelled, Complete, In Progress, Needs Input, Planned, To Do, to keep track of progress
• Update statuses as you work on each task to keep your team informed of progress
• Monitor and analyze the effectiveness of your marketing plan to optimize your strategies and achieve maximum results.

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