To start a tour company, choose a destination and trip style you know deeply, and decide whether you sell to travellers or to other travel companies. Design two or three trips you can run well. Then set up the company, get the licences, permits and insurance your market requires, and contract your suppliers. Price each trip from its real costs, build a website that collects requests, and run your first departures with clear checklists.
This guide walks through each step with examples. They include a two-person safari operator in Tanzania, a DMC in Bali and a walking tour company in Portugal. You will also find a costing example, a startup checklist and answers to common questions.
The 10 steps at a glance
- Pick a destination and a trip style.
- Decide who you sell to: travellers, trade partners or both.
- Design two or three trips you can run well.
- Set up the company, licences and permits.
- Get the right insurance.
- Contract suppliers and agree clear terms.
- Price every trip from its real cost.
- Build a website that turns visitors into requests.
- Find your first travellers or trade partners.
- Run your first trips with checklists, then review.
Tour company, DMC or travel agency?
A tour company designs trips and is responsible for delivering them. That responsibility is what sets it apart from a travel agency. It also shapes your licences, your insurance and your pricing.
| Type | What it does | Typical buyer |
|---|---|---|
| Tour operator | Designs and sells its own trips, often as packages | Travellers, sometimes agencies |
| DMC (destination management company) | Runs ground services in one destination: transfers, guides, hotels, activities | Agencies and tour operators abroad |
| Travel agency | Books trips and services from other companies | Travellers |
You can be more than one of these. A safari company in Arusha may sell direct to US travellers and also act as the ground operator for agencies in Europe. If you plan to resell other companies’ trips, read our guide on how to start a travel agency too.
1. Pick a destination and a trip style you know deeply
Your local knowledge is the product. Travellers pay a tour company because it knows which lodge has the better guides, which road floods in April and which beach is quiet in August. Start where you have that knowledge.
Then choose a trip style. Some examples:
- A two-person safari operator in Arusha running private, tailor-made safaris in northern Tanzania.
- A DMC in Bali handling transfers, villas, guides and day trips for agencies in Australia and Europe.
- A walking tour company in Portugal running small group hikes on fixed dates in spring and autumn.
Each of these runs differently. Private tailor-made trips need fast proposals and flexible pricing. Fixed-date group tours need marketing to fill seats and a clear plan for when a departure is too small. A DMC needs trade rates, quick quotes and reliable delivery.
2. Decide who you sell to
You can sell direct to travellers (B2C) or to other travel companies (B2B). The choice changes almost everything else.
Selling direct gives you a higher price per trip and a direct relationship with the traveller. You also pay for all the marketing and answer every question yourself.
Selling to trade partners, such as agencies and overseas tour operators, gives you volume with less marketing. You sell at net rates, and the partner adds their margin. You need sharp quotes, fast replies and a reputation for reliable delivery.
Many operators start with one and add the other later. The Bali DMC above sells only to trade. The safari operator might start direct, then add two partner agencies in the UK once its trips are proven.
3. Design two or three trips you can run well
Start small. Two or three well-tested trips beat a catalogue of twenty that you have never run. For each trip, write out the day-by-day plan, the stays, the activities, the transfers and what is included.
Build your trips from parts you can reuse. A night at a certain lodge, a guided walk or an airport transfer will appear in many itineraries. Store each one once, with its description, photos and cost, and reuse it. An itinerary builder with a library of stays, activities and transfers makes this quick and keeps your prices consistent.
Test each trip before you sell it widely. Run it yourself, or sell the first departure to friends or past clients at a fair price, and ask for honest feedback.
4. Set up the company, licences and permits
Register your company and open a business bank account. A limited company or LLC separates your personal assets from the business. Ask an accountant which structure suits you, and how VAT or sales tax applies to the trips you sell.
Then look at two layers of rules.
Rules where you operate. Many destinations license tour operators, guides and tourist vehicles. Tanzania, for example, requires tour operators to hold a tourism licence. National parks often have their own permit and fee systems. If you plan to own a company abroad, check the foreign ownership rules too. In Indonesia, for example, foreign-owned companies usually need a specific company type. Ask the local tourism authority and a local lawyer.
Rules where your travellers live. If you sell packages to travellers in the EU, the Package Travel Directive (EU) 2015/2302 requires the organiser to protect travellers’ payments against insolvency. In the UK, flight-inclusive packages usually need an ATOL licence from the Civil Aviation Authority. Other packages need insolvency protection under the Package Travel Regulations 2018. In the US, some states require seller of travel registration, including California, Florida, Washington and Hawaii.
These rules can apply even when your company sits in another country. A DMC that sells only to trade partners usually leaves these duties with the partner who sells the package. Agree in writing who is the organiser. Check the current rules for every market with the official body or a travel lawyer before you take bookings.
5. Get the right insurance
A tour company carries more risk than an agency, because you deliver the trip. Talk to a broker who knows tour operators. The main types to ask about are:
- Public liability, for injury or damage during your tours.
- Professional liability, also called errors and omissions (E&O) or professional indemnity, for claims about mistakes in your advice or bookings.
- Vehicle insurance that covers commercial passenger transport, if you own vehicles.
- Insolvency protection, where the law requires it for packages.
Ask your suppliers for proof of their own insurance and licences, too. Trade partners will often ask to see yours before they work with you.
6. Contract suppliers and agree clear terms
Your suppliers are the lodges, hotels, drivers, guides and activity providers who deliver your trips. Good supplier terms protect your cash and your margin.
For each supplier, agree and write down:
- The rate, and whether it is net or includes commission.
- The deposit and final payment dates.
- Release dates for rooms or seats you hold.
- Cancellation terms.
- Who to call in an emergency.
Line up your own client payment plan with these dates. If a lodge wants full payment 60 days before arrival, your balance from the traveller should arrive before that. Our guide to tour operations best practices covers supplier deadlines and confirmations in more detail.
7. Price every trip from its real cost
Price each trip from the bottom up. List every cost per person, add a buffer, then add your margin. Here is an example for a seven-day private safari for two people. All figures are made up for illustration.
| Cost item | Per person (USD) |
|---|---|
| Lodges, six nights | 2,100 |
| Vehicle and driver guide | 500 |
| Park and conservation fees | 450 |
| Airport transfers | 50 |
| Buffer for price changes | 100 |
| Total cost | 3,200 |
Now set your margin. Margin is your profit as a share of the selling price. Markup is your profit as a share of the cost. They are easy to confuse.
In this example, the operator wants a 25% margin. The selling price is the cost divided by 0.75: 3,200 ÷ 0.75 is about 4,270 per person. The profit is 1,070 per person, which is 25% of the selling price. A 25% markup would give only 4,000, a margin of 20%.
If you sell through trade partners, decide whether your net rate leaves them room for their own margin. Also watch currency. If your costs are in Tanzanian shillings and your prices are in dollars, a currency move can eat your margin. Many operators add a currency clause or review prices each season.
8. Build a website that turns visitors into requests
Your website should show your trips clearly and make it easy to send a request. A page for each trip, an about page and a request form are enough to start.
Each trip page needs a short summary, the day-by-day plan, what is included, a starting price and a clear button to ask about it. Real photos from your own trips work better than stock images.
The request form should ask for dates, group size, budget and interests. When a request arrives, reply within hours. Our guide on how to respond to travel requests faster shows how to write a first reply that gets an answer.
From day one, keep requests, proposals and bookings in one system. OpenVoy is an operations system built for this, with versions for tour operators and DMCs. It covers request forms, follow-up automations, the itinerary builder and booking management.
9. Find your first travellers or trade partners
If you sell direct, start with people who already trust you. Tell past clients, friends and your local network. Write useful guides on your destination, such as when to visit, how long to stay and what a trip costs to run. Ask every traveller for a review after the trip.
If you sell to trade, make a short list of agencies and operators that sell your destination. Send each one a sample itinerary with net rates and a short note on what makes your trips different. Trade shows and agent training trips can help once you have a few partners.
Whichever route you take, send your proposals fast and make them easy to say yes to. Our guide on how to write a tailor-made travel proposal covers structure, pricing and follow-up.
10. Run your first trips with checklists, then review
Your first departures set your reputation. Use a checklist for every booking, so nothing depends on memory. A simple pre-departure list covers:
- All supplier bookings confirmed in writing.
- Deposit and balance received on time.
- Traveller details, flights and dietary needs shared with suppliers.
- Final itinerary and emergency contacts sent to the traveller.
- Guide and driver briefed.
Booking management with payment plans and checklists keeps this in one place for every trip. After each trip, spend 20 minutes on a short review. What went well, what went wrong and what will you change next time? Small fixes after each trip add up fast.
Startup checklist
- Destination and trip style chosen
- B2C, B2B or both decided
- Two or three trips designed and tested
- Company registered and business bank account open
- Local licences and permits in place
- Package and insolvency rules checked for every market you sell to
- Public liability and professional liability insurance in place
- Supplier terms written down, with payment and release dates
- Every trip costed line by line, with margin and currency checked
- Website with trip pages and a request form
- One system for requests, proposals, payments and checklists
- Pre-departure checklist ready
Frequently asked questions
Do I need a licence to start a tour company?
Usually, yes. Many destinations license tour operators, guides and tourist vehicles. If you sell packages to travellers in the EU, UK or certain US states, their rules can apply too. Check with the local tourism authority where you operate and the official body in each market you sell to.
What is the difference between a tour company and a travel agency?
A tour company designs trips and is responsible for delivering them. A travel agency books trips and services from other companies. Many small businesses do both, so check which rules apply to each part of what you sell.
How do I price a tour?
Add up every cost per person, add a buffer for price changes, then add your margin. Remember that margin is a share of the selling price, while markup is a share of the cost. Check your currency exposure and leave room for trade partners if you sell through them.
Can I start a tour company with no experience?
You need deep knowledge of your destination, or a partner who has it. Business skills you can learn as you go. Many founders worked as guides, drivers or agency staff first. If you are new, start with one trip and run it yourself.
How many trips should I start with?
Two or three. That is enough to show range and few enough to run well. Add more once each one has a few happy travellers and a tested price.
Next steps
Before you spend money, put your plan on paper with our travel agency business plan template. It works for tour companies too, and includes a worked numbers example.
Book an OpenVoy demo to see how your requests, itineraries and bookings can run from one system from your first trip.