How to Start a Tour Operator Business

More and more people seem to be gaining interest in the tour-operating industry. If you are interested in establishing your own tour operator business and investing in such resources as tour guide insurance, here are several points you need to consider and steps you need to take:

Identify the Niche First

Before you start your tour operator business, you must first explore the various niches and determine which niche you will specifically target. Wanting to have as many different guests as possible may seem like a good goal, but it is not specific enough. You should focus on the exact demographic that you want to target as you build your business. For instance, perhaps you want to target retired senior citizens over the age of 60 or married empty nesters over the age of 50. Keep in mind that single travelers are usually left wanting more from the travel industry, making this particular demographic a ripe option to consider.

Build Bonds with Local Suppliers

Once you have identified a specific niche, take the time to establish a bond and working relationship with local suppliers. From local guides and coach companies to hotels and restaurants, there is a wide range of opportunities available for building supplier relationships. Keep in mind that if you do not have a working relationship with quality suppliers that offer popular services to your guests, your tour operator business will not be able to deliver the type of premium quality services that your business will need to stay afloat and remain competitive in this industry.

Invest in a Quality Insurance Policy

Along with sourcing local suppliers, you will also need to invest in a solid tour guide insurance policy before you can get your business up and be running. Keep in mind that you are personally and professionally responsible for the lives and safety of each traveler that joins you on a tour. Investing in a public liability insurance policy is highly important in addition to obtaining other credentials and licensure – such as the Air Travel Organisers’ Licensing (ATOL) license and the ABTA bond. To determine exactly what type of insurance policies you should select, you must take a close look at the services that you offer.  In most cases, it is wise to at least consider professional indemnity and product liability insurance to complement the general liability policies. Doing so will help to keep your business protected and your travelers safe.

Hire Only the Best Employees

Now that you have the behind-the-scenes work taken care of, you must focus on the “face” of your tour operator business. Your travelers are going to thoroughly enjoy and remain engaged in conversation with the people that you hire as tour guides. Therefore, you should make sure that you search for and find the most talented professionals available to help take your business to a new level. Even though there are no formal qualifications for becoming a tour manager, there are still quite a few expectations within this particular role that your customers will expect your staff to exceed over time.