How Much Does It Cost To Start A Tour Company? (In 2024)
Looking to start a tour company?
But curious about:
- how much it costs to start a tour company?
- what are the typical tour company startup costs?
- or the actual cost of starting tour companies?
Well, we have the data to prove it, supported by real tour companies and how much they actually cost to start.
Let's go over it.
What is the average cost of starting a tour company?
Based on our data reported by actual tour company founders, the average cost of starting a tour company is between $200 and $100,000.
Additionally, our data shows that the the median startup costs for a tour company are around $2.5K.
Remember, though, not all tour companies are the same - and neither are people's budgets. It's important to distinguish between different levels or types of tour companies
Real World Examples: How much does it cost to start a tour company?
We asked real tour company founders and business owners how much it actually cost to get started?
Here is what they said:
Alexandra Kenin
Founder of Urban Hiker SF ($3.75K/month)
"I spent $100 to reserve a domain name and host a website on Wix. Registering the business with the city of San Francisco cost about $90 and insurance cost about $700. I self-funded all of these charges."
Alexandra Kenin is the founder of Urban Hiker San Francisco, a tour business that takes clients on urban hiking tours exploring the unique stairways, hills, and trails around San Francisco.
Claire Robinson
Founder of StructurInfo (ZigZag Road Trips) ($9K/month)
"I did not have any costs except for basic website running costs. At the time, the platform I was using to sell the eBooks was free up to 5 eBooks. They were just taking a very small percentage of the sale for the Credit Card payment system."
Claire Robinson is the founder of StructurInfo, a travel blogging business that shares curated road trip travel guides.
Manoj Tulsani
Founder of Rayna Tours ($500K/month)
"We, being quite a primitive venture, didn’t have an adequate investment or a strong support system and had to pool our entire personal savings to fund our business."
Manoj Tulsani and Kamlesh Ramchandani are the founders of Rayna Tours and Travels, a destination management company that started in Dubai over a decade ago and now leads the industry with earnings exceeding $40 million per year.
Tom Shott
Founder of Front Desk USA ($10K/month)
"The business model at the time was simple. We charged $4,000 to produce the map the first time. The publisher would then find advertisers totaling more than $10,000."
Tom Shott is the founder of Front Desk USA, a hospitality map guide business that started in 2001 and works with over 1,000 hotels nationwide.
Mark E. Johnson
Founder of Hobnail Trekking Co. ($5K/month)
"Since launching, the company has grossed close to $60K, most of which has gone back into the business to cover start-up costs, etc."
Mark Johnson is the founder of Hobnail Trekking Co., an adventure travel company that facilitates treks to Mt. Everest Base Camp and other destinations in the Himalayas.
Tatev Manucharyan
Founder of Arara Tour ($11K/month)
"We bought a template for $70, another $70 went for the domain name and hosting."
Nune Tatunts is the founder of Arara Tour, a travel company that started in 2014 and has grown to be one of the leading tour operators in Armenia.
Marissa Waiters
Founder of Spread Your Wings Travel Agency ($7K/month)
"To start my business, I paid less than $200."*
Marissa Daniels is the founder of Spread Your Wings Travel, a travel agency business that started in 2019 and specializes in affordable travel deals.
Augustin Ndikuriyo
Founder of Augustine Tours ($54K/month)
"With my $1500 savings, an old DELL Laptop bought from a US Marine member who stayed at our hotel, I decided to embark on a new challenging journey with the hope of achieving something great for me and Burundi."
Augustin Ndikuriyo is the founder of Augustine Tours, a travel company offering wildlife safari and cultural tour experiences around East Africa, which specializes in designing tailor-made and bespoke safari packages.
Jessica Baumgart
Founder of Delicious Denver Food Tours ($75K/month)
"My start up costs were about $3,000, which included commercial insurance (in case a guest falls or has an allergic reaction to a tasting on the tour), building and hosting a website, filing my LLC, hiring a photographer to capture high-resolution photos of a tour and 'research' (i.e. eating a lot of good food)."
Jessica Baumgart is the founder of Delicious Denver Food Tours, a food tour business that started in 2017 and now produces $20,000 per month in revenue.
Corey Rust
Founder of Envi Adventures ($43K/month)
"I had enough room to spare financially to incorporate the business and to build a website. That’s about it. Hard to start an airplane business with just that."
Corey Rust is the founder of Envi Adventures, an air tour business based in Troutdale, Oregon, that takes customers on scenic flights over the Columbia River Gorge.
Enjoyed reading these real world examples?
Our platform is full of case studies of successful tour companies that you can learn from.
Starting a tour company - what you should know:
Starting a tour company involves various costs and considerations that can significantly impact your budget.
Licensing and Permits
Obtaining the necessary licenses and permits is a crucial first step. Costs can vary depending on your location and the type of tours you plan to offer. Generally, expect to spend between $200 to $1,000 for permits and licenses. In some cities, registering your business might add another $50 to $500. Research your local requirements to avoid any legal pitfalls.
Insurance
Insurance is essential for protecting your business against unforeseen liabilities. General liability insurance can cost between $400 to $1,200 annually. If you plan to offer adventure tours, additional coverage might be necessary, adding another $300 to $1,500 per year. Don’t skimp on this—accidents can be costly.
Marketing and Advertising
You'll need to invest in marketing to attract customers. A basic website can cost anywhere from $500 to $5,000 to design and launch. Monthly marketing expenses, including social media advertising, can range from $200 to $1,000. Consider cost-effective strategies like partnerships with local hotels or businesses to boost your visibility without breaking the bank.
Transportation
If your tours require transportation, vehicle costs are a significant factor. Purchasing a new 15-passenger van can set you back around $30,000 to $50,000. Used vehicles are cheaper but may require more maintenance. Don't forget to factor in fuel, which can add up to $200 to $400 per month, as well as maintenance costs, typically around $1,000 to $2,000 yearly.
Summary
Starting a tour company involves several key expenses, from licensing and insurance to marketing and transportation. By understanding these costs upfront and budgeting accordingly, you can pave the way for a successful tour business.
Potential Costs of Starting a Tour Company
Starting a tour company involves various expenses, from administrative costs to operational expenditures, all of which need careful planning and budgeting.
| Expense Category | Item/Service | Estimated Cost Range | Description/Notes |
|---|---|---|---|
| Administrative Costs | Legal registration | $200 - $1,500 | Depending on local regulations and legal complexities. |
| Business permits/licenses | $100 - $1,000 annually | Varies by location and type of tours offered. | |
| Insurance | $500 - $2,000 annually | Includes general liability, vehicle, and employee insurance. | |
| Accounting software | $200 - $500 annually | For managing financial transactions and bookkeeping. | |
| Legal consulting | $100 - $300 per hour | Required for contract reviews, compliance, and other legal matters. |
| Operational Costs | Office Space Rent | $500 - $3,000 monthly | Depending on location and size of the office. | | | Office supplies | $100 - $500 monthly | Includes stationery, print materials, and other basic supplies. | | | Technology (computers, etc)| $1,000 - $5,000 upfront | For computers, phones, printers, etc. | | | Software tools | $50 - $200 monthly | CRM, booking systems, marketing tools, etc. | | | Website creation/development| $500 - $5,000 one-time | For design, development, and initial setup. | | | Web hosting | $10 - $50 monthly | Ongoing hosting for your website. |
| Marketing Expenses | Branding/Logo Design | $300 - $2,000 one-time | Professional design services for brand identity. | | | Digital Marketing | $500 - $2,500 monthly | Includes SEO, PPC, social media marketing, and email marketing. | | | Printed Marketing Materials| $100 - $1,000 one-time | Brochures, business cards, posters, etc. |
| Labor Costs | Salaries for Employees | $2,000 - $5,000 monthly per employee | Depending on role and experience. | | | Tour guides | $15 - $30+ per hour | Wages can vary greatly depending on location and expertise. | | | Training expenses | $100 - $500 per guide | For first aid, safety training, and other certifications. |
| Operational Equipment | Vehicles | $20,000+ per vehicle | Depending on the type and condition (new or used). | | | Vehicle insurance | $1,000 - $3,000 annually | Per vehicle. | | | Fuel and maintenance | $200 - $1,000 monthly per vehicle | Regular operational expenses. | | | Tour equipment | $500 - $5,000 upfront | Depending on the tours offered (bikes, kayaks, safety gear, etc.). |
| Miscellaneous Expenses | Tax preparation | $200 - $1,000 annually | Cost for annual tax filing and preparation. | | | Contingency fund | 10% - 20% of total budget| For unexpected expenses or emergencies. |
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Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
