How to write a Tour Operator

Business Plan

Executive Summary

The first part of your tour company business plan is the executive summary. In plain terms, the executive summary serves as an introduction to your business plan. 

Although writing the introduction may seem complicated, it simply needs to be eye-catching. In other words, you should write a concise overview of your touring business. 

This section should highlight the key points of your tour operating business plan. Try to capture the reader's attention and interest, encouraging them to keep reading. 

Here's how you can write an effective executive summary for a tour company business plan:

1. Start with a hook
2. Give a quick overview of your touring business
3. Explain the market opportunity
4. Provide a financial snapshot
5. Briefly mention your goals
6. Conclude with a call to action

Open with a brief, engaging introduction to the tourism industry. Mentioning your company's unique value proposition (UVP) can capture attention.

Then, you can provide a short description of your company. Include basic details such as location and offered services.

Here's a good example:

Adventure Travel Co. is a full-service tour operator offering eco-friendly tours in Victoria. Our focus is on providing unique, sustainable travel experiences that cater to nature lovers and adventure seekers. Our goal is to become the leading tour operator in the region, targeting travellers aged 25-45 with a passion for outdoor activities.

You can devote a quick section to your target market. Summarise the opportunity you're addressing in the tourism industry.

It's important to mention your key financial expectations. This includes projected revenues, profitability, and any financial targets.

End with a quick call to action (CTA). When writing an executive summary, the CTA should be used to invite readers to continue.

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Business Description

Writing a business description is the next step. 

Start with a brief introduction to your touring business, including the name, location, and other details. 

Explain the primary focus of your tour company and the type of tours you offer.

There are four types of tour operators:

1. Inbound tour operators: These operators provide tours for travellers coming into a particular country. They specialise in domestic travel packages and are experts in their own country's destinations.
2. Outbound tour operators: These companies offer tours for residents travelling to foreign destinations, organising international travel packages.
3. Domestic tour operators: They focus on organising trips within a specific country or region.
4. Specialty tour operators: Some tour operators cater to niche markets, such as adventure travel, eco-tourism, cultural tours, or luxury travel.

Once you specify what kind of tour company you have, you can move on to the following elements. These include:

• The company's history or startup story
• Your vision and mission statements
• Key goals for the business (e.g., becoming a market leader in eco-tourism)

The mission and vision statements are important elements of your tour company business plan.

Here is an example of a mission statement for a tour operator:

To create immersive, sustainable travel experiences that inspire a deeper connection to nature and promote environmental conservation.

Here's an example of a vision plan:

To become the leading provider of eco-friendly adventure tours in Victoria by promoting responsible travel and creating unforgettable experiences for outdoor enthusiasts.

Finally, summarise the main goals and objectives of your business, which you can present like this:

Market Analysis

The third section of your tour operating business plan is the market research. 

Writing a business plan is not only about providing necessary information. You also have to offer a careful analysis of your market and industry. 

This shows readers you will know what to expect when you launch your business in the travel industry. 

These are some areas you should cover in this part of your business plan:

• Industry overview
• Target market demographics:
• Competitor analysis
• SWOT analysis 
• Market needs

First, you should provide an overview of the tourism industry. 

It's best to focus on the segment relevant to your business. This could be adventure tourism, eco-tourism, cultural tours, etc.

Make sure to include information on industry trends, growth rates, and external factors influencing the market.

For example, economic conditions, environmental concerns, technological advancements…

You also need to describe your target market. Include demographic information such as age, income level, gender, location, and psychographic information. 

You should also mention whether you are targeting individuals, groups, families, or corporate clients.

Competitor analysis is very important for business planning. It shows you their strengths, weaknesses, and market positions.

It also gives you an opportunity to determine what makes you stand out. Explain how you will address those market gaps. 

You can present your SWOT analysis like this:

Explain the needs and desires of your target market. Then, you can talk about how your tourism business will fulfil those needs.

Market research is one of the main components of your business plan.

Organisation and Management

The next step is to outline your tour operating business structure. In other words, you need to explain how your company is organised and managed. 

Discuss the following details:

1. Key roles and responsibilities
2. Owners and management team qualifications
3. An organisational chart (if applicable)
4. Staffing plan

Start by describing the legal structure of your business. Is it a sole proprietorship, partnership, Limited Liability Company (LLC), or corporation? 

Make sure to explain who owns the company. If there are any key shareholders or stakeholders involved, don't forget to include this information. 

Introduce the key members of your management team. This includes their names, titles, roles, and responsibilities.

Provide a brief bio for each team member that highlights their relevant experience and qualifications. 

Here's an example:

• CEO → Oversees entire company, reports to owners
• COO → Manages day-to-day operations and reports to the CEO
• Marketing Manager → Oversees marketing strategies and reports to the COO
• Tour Guides → Lead tours, report to the COO
• Customer Service Team → Handles client inquiries and bookings, reports to the COO

If applicable, include an organisational chart that shows the hierarchy, like the one in our free business plan template:

If you want, you can provide a more detailed description of each team member's roles and responsibilities.

If your business is planning to hire more staff as it grows, outline the hiring strategy. 

Discuss the roles you will need to fill, the qualifications required, and the timeline for hiring.

Products or Services

When writing any type of tourism business plan, you need to explain what exactly you offer. As a tour operator, it's important to highlight your services. 

This section should explain:

1. The types of tours you provide
2. What makes your offerings unique
3. How your services address the needs of your target market

Begin by explaining the main tours or services your business offers. You can go into detail about the types of services you offer, including:

• Transportation 
• Accommodation
• Meals
• Guided activities
• Tours

Here's an example:

We offer guided hiking, kayaking, and camping tours across Victoria. All our tours are designed to have minimal environmental impact. We use local guides and eco-friendly transportation. Packages range from half-day tours to multi-day excursions, with prices starting at $100 per person.

When it comes to the types of tours, mention if your company offers:

• City tours
• Eco tours
• Adventure tours
• Cultural tours
• Day tours
• Food and wine tours
• Historical tours
• Luxury tours
• Festival and event tours

Explain what makes your tours and services unique compared to competitors.

Focus on any special features or differentiators that will attract customers. For example, sustainability practices, small group sizes, or exclusive access to locations.

Your tour operating business might offer customised services. For example, tailor-made tours, group packages, or partnerships. If so, outline them here. 

Include any value-added services like travel insurance, equipment rental, or concierge services.

You can also provide an overview of your pricing strategy. 

This can include price ranges for different tours and how pricing is structured (e.g., per person or group). 

You can also talk about the factors that might influence pricing. These could include seasonality or group size.

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Marketing and Sales Strategies

The marketing and sales strategies section is very important. It's also necessary to show readers you have a plan to attract and retain customers. 

This is very important for tour operators. 

These are some elements this part should include:

• Target market analysis
• Marketing goals
• Marketing channels
• Customer acquisition strategy
• Sales tactics
• Customer retention

Start by briefly describing your target market. This includes the demographic and psychographic characteristics of your ideal customer. 

This is important as it guides your marketing and sales approach.

The next step is to state your marketing goals. These goals could be related to:

1. Brand awareness
2. Customer acquisition
3. Customer retention
4. Increasing online visibility

Next, detail the specific marketing channels you will use to reach your target audience.

This can include digital marketing, social media, partnerships, and traditional marketing methods. For each channel, explain how you will use it to promote your tours.

You also need to explain how you will measure the success of your marketing and sales efforts. You can do this with key performance indicators (KPIs). 

Talk about how you will sell your tours and convert leads into customers. This section should cover both online and offline sales strategies.

Here's an example:

Our sales strategy is built around a seamless online booking experience and personalised customer service. We will offer multiple sales channels, including direct bookings through our website, inquiries via social media, and phone or email bookings. Our trained customer service team will provide prompt and personalised responses to all inquiries, ensuring a smooth and stress-free booking process.

Operations Plan

Your tour operator business plan should also include an operations plan. Here, you will talk about how your company will function on a day-to-day basis. 

It includes details on logistics, staffing, supply chains, scheduling, etc. 

Talk about the operational elements important for delivering the tours and services your business offers. 

Detail the day-to-day operations of your business, including:

• Location and facilities
• Suppliers and partners (e.g., transportation companies, accommodation providers)
• Staff hiring and training process
• Scheduling and logistics for tours
• Customer service and booking
• Safety and risk management

You will want to explain where your business is based. This includes facilities you use for operations. 

When writing a tour operating business plan, it's important to explain how you plan to schedule and coordinate your tours. 

Include information about:

1. The frequency of tours
2. The logistics involved ( transportation and accommodation)
3. How you will make sure tours run smoothly

Detail your staffing needs. For instance, tour guides, customer service representatives, and administrative staff. 

Don't forget to explain the roles and responsibilities of each position. You will also want to discuss how you plan to recruit, train, and manage your staff.

Detail your process for recruiting and training tour guides and other staff involved in the direct operation of your tours.

Next, you will want to explain how customers will interact with your business. This process includes everything from the booking to post-tour follow-ups. 

You can also talk about customer satisfaction and how you plan to achieve it. 

Finally, describe the safety protocols and risk management plans you have in place. 

Financial Plan

You must include a financial plan in your tour operating business plan.

The financial plan outlines the financial health, projections, and funding needs of your tour-operating business. 

It is key for demonstrating your company's profitability, sustainability, and growth potential. Investors, lenders, or stakeholders will be especially interested in this section.

It provides a financial outlook for your business, including:

• Startup costs
• Revenue projections
• Profit and loss statement 
• Cash flow analysis
• Break-even analysis
• Funding requirements (if seeking investors or loans)

Begin by detailing the initial costs required to start your business. 

This should include all upfront expenses, such as equipment purchases, marketing, and office setup. 

Explain how your business will generate revenue. This includes a breakdown of your pricing, types of tours offered, extra services, and any upsell opportunities.

Provide a sales forecast that projects the expected revenue over the next three to five years. 

Include a basic profit and loss statement to show your expected income, costs, and profitability over a specific period (typically three to five years). 

Provide a cash flow statement to show how cash will move in and out of your business.

You can also add a break-even analysis. This analysis shows when your business will start generating profit.

If you are seeking investment or financing, you need to add a section on funding requirements.

Specify how much capital you need and how you plan to use the funds.

Conclusion

The last part of your tour operating business plan is the conclusion.

Here is where you summarise the key points of your plan. You can also reinforce your tour operating business's potential for success.

You can also reiterate your request for any funding or support, which you can do with a final CTA.

The goal is to leave a strong final impression on readers, such as investors or stakeholders. With a good business plan, you can convince them of your business's viability.

Here is a quick example of a concluding paragraph for a tour company business plan:

Adventure Travel Co. wants to take advantage of the growing eco-tourism market with a well-rounded team, a unique product offering, and a solid marketing strategy. We are confident that with the right funding, we can become a leader in sustainable travel experiences in Victoria.

Appendix

You can also add an appendix if you'd like. It's not obligatory, but it's handy for supporting documents. 

Include any additional documents or resources that support your business plan, such as:

• Resumes of key team members
• Detailed financial statements
• Market research data
• Legal documents (e.g., licenses, permits)
• Partner agreements
• Financial documents
• Detailed tour itineraries

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