4 Luggage Storage Business Success Stories [2024]
Short on space but big on travel? A luggage storage business addresses the perennial problem of tourists needing a safe place to store their bags while they explore their destinations.
In simple terms, a luggage storage service offers secure, short-term storage solutions for travelers' belongings. Customers can drop off their bags and head off bag-free to enjoy their activities.
The appeal of this idea lies in its low start-up costs and high convenience factor. Many travelers would gladly pay a fee to avoid lugging heavy bags around. By partnering with local businesses like cafes and hotels, you can minimize overhead costs and ensure a steady flow of customers.
Consider this: with the growing trend of remote work and digital nomadism, the demand for flexible travel solutions, including luggage storage, is only set to rise. Starting a luggage storage business isn't just about providing a service; it's about meeting an essential need within the bustling travel industry.
In this list, you'll find real-world luggage storage business success stories and very profitable examples of starting a luggage storage business that makes money.
1. LuggageHero ($1.2M/year)
Jannik Lawaetz, the CEO and Co-Founder of LuggageHero, came up with the idea for his business after experiencing the inconvenience of dragging his luggage around while traveling. His lightbulb moment came when he was stranded outside an Airbnb apartment with his luggage and had to convince a local shop owner to store his bags. Since then, LuggageHero has grown to over 40 locations in major cities across Europe and North America, offering travelers a convenient network of short-term luggage storage options.
How much money it makes: $1.2M/year
How much did it cost to start: $10K
How many people on the team: 12
LuggageHero CEO Jannik Lawaetz founded a network of short-term luggage storage options with +40 locations across the world and raised $2.25 million in funding in 2019, with aims to expand to +1800 locations using a POI algorithm, offering customers value and building a reliable team.
2. BagsAway Luggage Storage ($780K/year)
BagsAway Luggage Storage was founded by a software engineer who experienced the inconvenience of luggage while traveling. Recognizing the need for a solution, they pivoted their business from a pick-up and delivery service to a marketplace that connects travelers with on-demand bag storage locations. Since then, they have stored over 150,000 bags and expanded to over 50+ cities worldwide.
How much money it makes: $780K/year
How many people on the team: 2
BagsAway Luggage Storage is a worldwide marketplace that connects travelers and locals with convenient, secure, on-demand storage locations across key cities; they have stored over 150k bags for travelers thus far, have expanded to 50+ cities and plan to expand worldwide with new funding and members joining in.
3. Bounce ($300K/year)
Cody Candee, the CEO and co-founder of Bounce, came up with the idea for his business after experiencing the problem of carrying luggage while traveling and the inconvenience it caused. He wanted to create a solution that would allow people to store their belongings easily and eliminate the burden of carrying them around. After sitting on the idea for three years, Cody launched Bounce with his co-founder Aleks in 2017, and the business quickly gained traction, reaching over $100k of annualized revenue within the first 7 months.
How much money it makes: $300K/year
How many people on the team: 1
Bounce CEO Cody Candee shares his experience co-founding a successful short-term storage marketplace which generated over $100k in annualized revenue within the first seven months of operation, expanding to new cities and offering more options such as delivery.
4. Cubby Inc ($24K/year)
turn out to be a game-changer. Listening to feedback and constantly improving based on customer needs is crucial for the success of any business. Trusting your instincts and having the courage to take action is also key.
How much money it makes: $24K/year
How many people on the team: 1
Cubby is an online luggage storage marketplace that launched in July 2019, storing 700+ bags and expanding to 10 cities in the US, with plans to be in major cities across the country by the end of the year.
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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.
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