Tour Company

How Profitable Is A Tour Company? (Updated for 2024)

Pat Walls

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Updated: September 6th, 2024

How Profitable Is A Tour Company? (Updated for 2024)

So you want to start a tour company?

And the first question that came to your mind was, “well, are tour companies actually profitable?”

With a market size of $540B - there’s plenty of business to go around.

Especially considering:

You could start a tour company with as low as $200
Based on our data, tour companies generate an average of $898K per year

There’s money to be made. Don’t worry.

But, I don't want to spoil it all. Below we’ll cover everything you need to know when it comes to the profitability of a tour company.

Let’s dive in!

Is a tour company profitable?

Yes, a tour company is generally a profitable business. However, you still need to consider several factors since these things always impact the overall outcome.

For instance, since average revenue is $898K per year with an estimated gross margin of 90%, you could expect to recover your investment within 9 months or even less.

But of course, it all comes down to how much you earn compared to the potential revenues of your tour company.

To determine whether your business is profitable, you should earn more than your expenses in the beginning months. However, while you're in your first month, it can be challenging to know what to expect.

Therefore, you should maintain a record of your monthly expenses and income to determine whether you're meeting your goals. By doing this step, you can see how your tour company is doing and if any changes or adjustments need to be made to enhance or maintain your efforts.

Is a tour company worth it?

If you’re wondering if a tour company is worth it, the answer is a big YES. With tour companies, you have the potential to earn $898K per year (this is based on data reported by real founders).

Further, you could have your initial investment back within months. Simply put, it’s a business worth a shot, especially if you have the resources and make the necessary efforts to achieve or surpass the target.

With a market size of $540B, it will be possible for you to build something that grows and turns into a flourishing business. As such, it’s the type of business you might want to consider starting.

Of course, you must learn and understand every aspect of running a tour company to ensure success. Still, as long as you have the initial investment and can endure a few months before your actual gains, this business could be worth it.

You might want to consider reading more specifics about successful tour companies case studies.

Examples Of Profitable Tour Companies

Here are a few examples of profitable tour companies, and a few more details about them:

1. Delicious Denver Food Tours ($900K/year)

Jessica Baumgart, the founder of Delicious Denver Food Tours, came up with the idea for her business after realizing her passion for food and travel while backpacking through 25 countries on a year-long trip around the world. With a background in marketing and communications, she began teaching cooking classes and eventually launched a food tour in Denver, which quickly gained popularity and now generates $20,000/month in revenue. Through relationship building with local restaurants and positive reviews on platforms like TripAdvisor, Baumgart has been able to attract and retain customers for her successful food tour business.

Is it profitable? Yes
How much money it makes: $900K/year
How much did it cost to start: $2K

How I Started A Wildly Successful Food Tour Business

How Jessica Baumgart founded a successful food tour business in Denver, which broke even and started making a profit after just three months, generating $20,000/month in revenue from offering different food tour experiences.

Read this case study

Read by 20,923 founders

2. Envi Adventures ($516K/year)

Corey Rust, founder of Envi Adventures, came up with the idea for his air tour business after realizing the potential in offering scenic flights over Multnomah Falls in Oregon, a highly visited tourist spot with heavy traffic. Despite facing initial skepticism, Rust started the business with minimal funds, creating a basic website and social media presence to generate interest. After a long search for an airplane, he finally found one and obtained the necessary approvals to launch his business, which has since experienced significant growth, reaching a revenue of over $30,000 per month in its second year.

Is it profitable? Yes
How much money it makes: $516K/year
How much did it cost to start: $300

How Corey Rust Started A Profitable Flight Tours Business

Envi Adventures, a Troutdale, Oregon-based air tour business, grew from making $7,000 in a month in its first year to over $30,000 a month in its second year, using Instagram and influencer marketing to create an interactive, personalized experience for guests.

Read this case study

Read by 10,151 founders

3. Under30Experiences ($3.6M/year)

Matt Wilson, co-founder of Under30Experiences, came up with the travel company idea after going on a life-changing trip to Iceland. He saw the opportunity to bring his community of young entrepreneurs on similar retreats, and after organizing a successful trip to Iceland, the idea caught on and the business took off.

Is it profitable? Yes
How much money it makes: $3.6M/year
How much did it cost to start: $5K

How We Started A $300K/Month Business Organizing Trips For Young People

Under30Experiences is a travel company for people aged 21-35 that runs small group trips around the world, with over 800 five-star reviews on Facebook, Google, and Yelp combined, and nearly hitting $5M in revenue before the COVID-19 pandemic.

Read this case study

Read by 10,971 founders

Learn more about starting a tour company:

Where to start?

-> How much does it cost to start a tour company?
-> Pros and cons of a tour company

Need inspiration?

-> Other tour company success stories
-> Marketing ideas for a tour company
-> Tour company slogans
-> Tour company names
-> Tour company Instagram bios

Other resources

-> Tour company tips

How much can you make with a tour company?

With a tour company, you can make an average of $898K revenue per year (based on data reported by real businesses).

You can start with an initial investment as low as $200. Then, with proper knowledge and sustained effort, you could have an ROI (return of investment) within 9 months.

How much does a tour company make a week?

Based on our data, average weekly revenue for a tour company ranges around $18.7K. As such, you could see monthly revenues of $74.8K.

To know if your tour company achieves the weekly profit target, you need to keep track of the total earnings you get per day. Afterward, you'll want to consider subtracting the expenses you have daily.

Learning your weekly profit can also show whether you're hitting your target goal for your tour company.

How much do tour companies owners make?

The income of a tour company owner can vary depending on various factors such as location, size, competition, and the owner's business skills.

But to give you some idea, the weekly revenue of an established tour company is about $18.7K. But this can be lower or higher depending on so many factors - it's almost impossible to say exactly.

While the potential for earning a good income as a tour company owner exists, success in this field requires a commitment to providing quality products and services and building a strong reputation within the community.

Tour Company Profit Margins

Generally speaking, a tour company can expect profit margin of around 90%. Profit margins refer to the percentage of revenue that remains after deducting all expenses associated with running a business. In the case of a tour company, profit margins can vary depending on various factors, such as the type and quality of products sold, the size of the store, and the level of competition in the area.

However, these figures can vary depending on the pricing strategy, inventory management, and overall efficiency of the business. To maintain healthy profit margins, tour company owners must focus on managing costs, negotiating favorable supplier terms, and providing high-quality products and services to attract and retain customers. By doing so, tour company owners can ensure long-term sustainability and profitability for their business.

Tour company owner salary

The salary of a tour company owner is an unpredictable figure. It's significantly influenced by numerous factors, including the store's location, its size, and the degree of competition. An owner of a well-established tour company, in a prime position, might see an average weekly salary around the ballpark of $16.8K.

But it's worth noting, such numbers aren't always consistent. The earnings can vary wildly, potentially swinging by as much as 80% either way.

Achieving consistent success and maintaining a reliable income stream in this industry requires a deep commitment. It's imperative to offer high-quality products, deliver impeccable customer service, and nurture a trusted bond with the community you serve.

Conclusion

In a nutshell, based on many of our examples, a tour company may be a promising business to start - but the success of your tour company mostly depends on your effort and your approach.

If you focus on these, you'll have a much higher chance of a profitable tour company.

Part of

Starting A Tour Company: Everything You Need To Know

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