Travel Company

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

Pat Walls

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Updated: October 9th, 2024

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

So you want to start a travel company?

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

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

Especially considering:

You could start a travel company with as low as $250
Based on our data, travel companies generate an average of $3.11M per year
You could see gross margins as high as 60% with travel companies

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 travel company.

Let’s dive in!

Is a travel company profitable?

Yes, a travel 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 $3.11M per year with an estimated gross margin of 65%, you could expect to recover your investment within 7 months or even less.

But of course, it all comes down to how much you earn compared to the potential revenues of your travel 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 travel company is doing and if any changes or adjustments need to be made to enhance or maintain your efforts.

Is a travel company worth it?

If you’re wondering if a travel company is worth it, the answer is a big YES. With travel companies, you have the potential to earn $3.11M 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 travel 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 travel companies case studies.

Examples Of Profitable Travel Companies

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

1. 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 11,114 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 10,401 founders

3. Solo Female Travelers ($1.8M/year)

Mar Pages, along with her business partner Meg, grew Solo Female Travelers from a small Facebook group in 2015 into a million-euro travel platform by 2023. Despite launching their tours amidst the pandemic, their emphasis on women-led, women-focused travel resonated deeply, propelling them to 300 guests across 14 destinations with unwavering organic growth.

Is it profitable? Yes
What's the gross margin? 30%
How much money it makes: $1.8M/year
How much did it cost to start: $100K

How We Launched a Women-Led Travel Company in the Middle of the Pandemic

"Read how Solo Female Travelers, a women-led tour company, grossed just over 1 million EUR in revenues in 2023 by offering tours in 14 destinations, empowering women through travel and contributing to more equitable tourism industries."

Read this case study

Read by 4,765 founders

Learn more about starting a travel company:

Where to start?

-> Travel company plan
-> How to finance a travel company?
-> How much does it cost to start a travel company?
-> Pros and cons of a travel company

Need inspiration?

-> Other travel company success stories
-> Marketing ideas for a travel company
-> Travel company slogans
-> Travel company names
-> Travel company Instagram bios

Other resources

-> Travel company tips
-> Blog post ideas for a travel company
-> Travel company quotes

How much can you make with a travel company?

With a travel company, you can make an average of $3.11M revenue per year (based on data reported by real businesses).

You can start with an initial investment as low as $250. Then, with proper knowledge and sustained effort, you could have an ROI (return of investment) within 7 months.

How much does a travel company make a week?

Based on our data, average weekly revenue for a travel company ranges around $64.7K. As such, you could see monthly revenues of $259K.

To know if your travel 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 travel company.

How much do travel companies owners make?

The income of a travel 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 travel company is about $64.7K. 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 travel company owner exists, success in this field requires a commitment to providing quality products and services and building a strong reputation within the community.

Travel Company Profit Margins

Generally speaking, a travel company can expect profit margin of around 65%. Profit margins refer to the percentage of revenue that remains after deducting all expenses associated with running a business. In the case of a travel 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, travel 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, travel company owners can ensure long-term sustainability and profitability for their business.

Travel company owner salary

The salary of a travel 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 travel company, in a prime position, might see an average weekly salary around the ballpark of $42.1K.

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 travel company may be a promising business to start - but the success of your travel company mostly depends on your effort and your approach.

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

Part of

Starting A Travel Company: Everything You Need To Know

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