If you live in an area that sees a good number of tourists or has a number of interesting sights, you may want to consider operating your own local tour business. You would use a van or a small passenger bus to take your customers on a specialized tour of interesting sites in your area. This tour can be of just about anything; you are only limited by your imagination and the location you are in.
For example, if your area has been used as the backdrop for a number of movies and television shows, you could give tours of the various locations where the scenes were shot. Many large, and some small, cities lend themselves to this type of tour very well. Other types of tours could include homes of famous people (or where they lived before they became famous), where noteworthy people are buried, scenes of infamous crimes, or a combination of these and whatever else people would find interesting.
An important element of this type of business will be the person or persons who will direct the tour. Usually this is a two-person operation, where one person drives and the other provides the commentary. Some people are naturally good with crowds so if you are not, you would be well advised to hire someone who is. Many tour companies often hire out-of-work actors or comedians.
If you should decide to do the commentary yourself but have not had much experience speaking in front of others, then remember these tips about public speaking: The more you practice, the better you will get. If you want people to understand you, speak slowly and clearly. Practice what you will say until it is second nature. You will know when you have practiced enough and so will everyone listening.
Many tours of this type begin and end at an easy to find landmark or hotel. Some tour operators do a circuit of the local hotels picking up, and then later, dropping off their customers. Get to know the people who work and manage these hotels because they can be your best resource for new business.
Competition Your competition will depend entirely upon where you intend to operate. If you live in New York, Chicago, Los Angeles, or any of the other big cities in the country, you will compete against a number of established and well-funded (think nice, modern busses and professional guides) tour companies. This does not mean that you should not open one as well; it does mean, however, that you will need to spend the money up front for vehicles and itineraries that are able to keep up with the big boys (or girls).
Also remember, you will be competing against all of the other businesses that cater to the local tourist. This list includes theaters, concert venues, sporting events, theme and water parks, even restaurants and nightclubs.
Special Skills There are many skills you will need if you start and operate this type of business. If you intend to start a two-person operation, with one person doing the driving and the other one guiding the tour, you will both still have a number of other jobs. These will include marketing, bookkeeping, writing the scripts for guiding the tour, researching and laying out the tour itself, and do not forget, you will need to keep your vehicles spotless and in perfect running order.
When you first start out, make sure you do many trial runs through your tour. Actually drive the route and practice what you will say. It will take a number of times before you get the timing down. It will also take some practice to feel comfortable enough with the itinerary to make it fun and informative for your customers.
Licensing and Insurance Like all businesses, you will need to get a business license from your local authorities (usually city hall) to operate and the driver may have to get a Commercial Drivers License as well. You will need different types of insurance to cover you in case of loss, damage, or accident. You absolutely must consult with an insurance agent if you intend to operate your own tour business.
You are also advised to spend an hour or two speaking with a lawyer and an accountant. The money you spend might be the best investment you make because they can help you organize and setup properly and steer you away from any potential problems. It is also wise to have an attorney and an accountant who is familiar with your operation you can call if the need arises.
Spend some time before you meet with either one of these professionals thinking about the questions you will need answered. Write down as many questions as you can think of. You may desire to submit the list of questions ahead of time to give them time to prepare, but this may result in more hourly charges than you planned. Either way, it is important that you actually sit down and talk to them. You will learn much more than you think.
Pricing and Expenses Most tour companies charge per person. Many will vary the amount depending on the particular tour since they usually offer different tours of varying lengths at different times of the day or week. Many tours seem to start at about $25 per person and go up from there.
When setting your prices, you will need to take into account all of your expenses including all the expenses associated with your vehicle(s) such as maintenance, gasoline, loan or lease payments, and insurance. Do not forget about all your marketing and employee expenses as well.
When pricing your tours, you should also take into account what your competition is charging. Try to set your prices high enough to make enough of a profit that you can grow and prosper but not so high that you do not have any customers. You may also consider offering discounts to groups or seniors and children.