Top 10 Business Opportunities for Entrepreneurs in the Tourism Industry

The travel business has grown tremendously in the past few years, and the global international tourism industry doubled (+130%) in January 2022 compared to 2021.

The tourist industry has proved that it is one of the major thriving industries that business owners can benefit from. And the reason behind it is the buying power of customers.

Technological advancements have opened up a wide scope for travel businesses and business owners as people now have more access to new locations and sightseeing.

According to Statista, the global economic contribution to GDP is expected to reach 18,031 billion U.S. dollars in 2029. Thus, to succeed in business ventures, entrepreneurs need to look for a business model.

In this blog, let’s understand business opportunities for entrepreneurs looking for travel business ideas in 2023.

Top 15 Prosperous Business Opportunities in the Travel and Tourism Industry

The travel and tourism industry offers you plenty of business opportunities online or offline.

After selecting a business idea, you must focus on your target audiences and look for unnoticed loopholes to make your business successful.

After you identify the loopholes you need a good travel app that make it easy for your audience to find everything they want.

[You also Like | Cost to Build a Travel App in 2023]

You need to add important features to your app that make you stand out from the competition.

1. Workcations Business

Workcations business came to notice during the pandemic when people worked from home.

And now, it is quite a popular tourism business opportunity for travel business owners. The workcation business has let many young tourists reap the benefit of working from home from anywhere.

It began in 2020, and millions of people participated in it, and the experiment worked wonders for them.

With the changing scenarios in how people work, many companies started remote working options for employees.

Thus, it is the right time to create your “workcation” business for remote workers.

Current Status Of Workcation Business Market

In 2023, even after the dropping of covid cases worldwide.

There is no sign that this business will get closed as companies continue to offer remote work opportunities to employees, and many have no issues with working from home

If their employees are bringing in revenue.

The global Workstation market size is projected to reach multi-million by 2026.

2. Start An Airbnb Like Vacation Rental Business

Booking hotels and taxis is more expensive than renting a place, But you can implement the Airbnb business model to rent an apartment or a room.

[Also, Read | Cost to Build a Hotel Booking App]

Through your app/website, travelers can rent a property in their desired location, as many travelers prefer to stay with locals rather than opt for hotels.

It is great to earn extra income for locals by utilizing their unused rooms.

Current Status Of Vacation Rental Business Market

Many travelers look for vacation rental spaces to explore the place and cuisine.

And Airbnb is the major player in this business segment. ( let’s know if you want to develop an app similar to Airbnb)

And your business can be the other addition to a successful vacation rental business. 

In 2021, Airbnb saw bookings in 94,000 cities, increasing longer stays and much more. This all shows how huge is the demand for vacation rentals.

Also, as per the reports, the vacation rental market is expected to grow by $168.40 billion from 2022 to 2026 at a CAGR of 15.53% worldwide.

3. Kennel Business

Several dog owners do not take their dogs on vacation for numerous reasons.

An animal care business offers a great opportunity for dog owners to leave their dogs while they are on vacation.

Dogs in kennels have a safe place to rest, are fed, and exercise.

Anyone who enjoys dogs may be well-suited to own a kennel business, as most work entails caring for dogs.

Owners are frequently required to play with their dogs, and they are often required to move stubborn dogs physically.

As a result, owners should be in good physical condition.

Current Status Of Kennel Business Market

If we consider the United States, there are 85 million households that keep a pet, and it is growing rapidly.

Thus, starting such a business with limited competitors is a great way to let pet owners enjoy their vacation.

It is also best to start a pet vacation business, allowing pet owners to travel with their pets.

Your business will board pets and take care of their food, grooming, and so on, and owners can still enjoy their vacation.

The global pet business market was USD 20,727 million in 2020, and it is expected to grow by USD 28,561.9 million by 2026, at a CAGR of 6.12% in 2026.

4. Travel Agency

The travel agency helps customers travel to various countries and places.

Also helping them throughout the trip (from flight tickets to hotel accommodations) deciding where to go and how much per head charge is a daunting task.

But the travel business platform makes it easier for people to look for various tourist places with detailed information and budget.

Know About | Cost to Launch Travel App like Hopper

Current Status Of the Travel Business Market

In 2022, after the Covid pandemic, people are looking forward to traveling to different places.

This has increased the need for travel companies that offer unique travel destinations and unique experiences that people have never seen before.

The global online travel agency business was nearly $460.9 billion in 2020, and now it is expected to reach $972.1 billion in 2025 at a CGPR of 16.1%.

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5. Adventure Booking

Travel business is not limited to sightseeing, trying different cuisine, and discovering marketplaces. People these days prefer to do adventure activities.

And this demand for travelers has created adventure business opportunities for the entrepreneur.

People nowadays look for diverse destination places that offer unique adventures. Thus, this business idea is quite profitable if you allow customers to try unique adventures.

[Also Read | Cost to Develop Hotel Booking App in 2023]

Current Status Of adventure Business Market

People these days, especially youngsters, prefer to look for adventure activities while traveling to new places on weekends.

According to Allied Market Research, the travel adventure industry is experiencing remarkable progress and is predicted to reach an astounding $1.1 trillion by 2028, at a CAGR of 20.1 %.

6. Bike Rental Business

Ridesharing businesses have thrived in recent years, particularly since the rise of Airbnb.

One such shared business idea is the Peer-to-Peer (P2P) Bike Rental Marketplace, which connects trust-worthy bike owners with customers looking to rent or borrow a bike.

Renting a bike is very common, especially in cities where people commute every day in traffic.

P2P businesses are the best way to earn money and make it a success as you as a business owner will get a commission from every transaction without the need for resources like bikes.

Current Status Of Bike Rental Business Market

When traveling to local areas, cycling is a safer and healthier alternative for commuters.

Also, the growing rates of fuel have made them look for bikes, especially in foreign countries.

Statista says the global bike-sharing service market is expected to grow by $13.7 billion in 2026.

7. Snorkeling And Scuba diving Equipment Rental/Booking Business

Snorkeling and scuba diving are popular recreational activities and require equipment.

People who have a love for activities prefer this adventure activity.

You can sell or rent out different safety gear and equipment in your snorkeling business.

• A snorkel is a curved plastic tube used for underground breathing.

• A mask is used to safeguard the nose and face from the water.

• Diving fins are used to swim.

Current Status Of Equipment Rental Business Market

According to the Global scuba diving equipment market, recreational activities like scuba diving and snorkeling equipment are in great demand.

The global diving equipment market is estimated to grow at a CAGR of 6.41% in 2024.

8. Skiing Activity Booking/Rental Business

Skiing is a widely known leisure activity as well as a team sport that attracts various travelers.

The skiing activity reservation marketplace business allows users to connect to ski resorts worldwide.

There are also skiing equipment rental markets where small retailers rent or sell skiing equipment to customers.

In both cases, the marketplace administrator earns a small commission on each transaction.

Thus, as a business owner, you need to focus on customer safety and customer services to thrive in your business.

Current Status Of Skiing Activity Booking Rental Business Market

Many people love skiing activities and started such businesses to connect travelers to skiing booking online.

You can look for mobile app development or design a website for the same, and as per Statista report,

The worldwide ski gear and equipment market is expected to hit USD 1.74 billion by 2028.

9. Canoe And Kayak Rentals

Boat rental is a booming business that saw a significant increase in ticket sales last year, despite the impact of the pandemic on the tourism sector.

Boats appeared as a safe, dependable mode of transportation and recreation, protecting passengers from packed places.

From sailor boats to luxury yachts, boat rental has remained a lucrative business with massive growth.

Cruising, watersports, and fishing are the three major activities driving demand for boat rental businesses.

Current Status Of Equipment Rental Business Market

Fortune Business Insights says the global boat rental market will expand by $280.02 million by 2028 at a CAGR of 15.70%.

10. Hotel, Flight, And Car Rental Booking Business

People prefer to Google and search for places they want to visit, but digitalization has taken a lead role.

Before traveling, transportation and lodging are the critical factors to consider to make the trip worthwhile and comfortable.

[Detailed Guide | How to Build a Car Rental App like Turo]

Current Status Of Hotel, Flight, and Car Rental Business Market

A business that offers flight, hotel, and car services has a huge scope in the online travel market.

According to Allied Market Research, the online travel industry’s annual growth rate will reach $1,835.6 billion by 2031, with a CAGR of 14.8% from 2022 to 2031.

11. Campervan Rental Platform

In the recent few years, the nomadic lifestyle has become a growing culture in many parts of the USA and other countries.

While some adventure-seekers completely shifted from traditional home setups to campervans,

There are some people who switch between the two lifestyle approaches to keep their adventure spirit alive.

Such individuals don’t really want to commit to the long-term investment and maintenance of buying a campervan and prefer renting one when they want to embark on their road trips.

You can easily target this market by setting up a campervan marketplace that allows customers to choose between a variety of campervans for their road trips.

Keep in mind that a campervan marketplace would require all the necessary features so that people can book their preferred vehicle with zero hassle.

Current Status of Campervan Rental Platforms

Outdoorsy is one of the leading campervan rental platforms where users can compare different campervan options and book an RV for the preferred days with minimum hassle.

12. Campground Locator

People love the outdoors!

That’s a fact! However, not everyone has accurate information regarding the nearby campgrounds while hiking in the remotest parts of a national park.

For such individuals, you can create a campground locator mobile app that’ll help them find different camping locations in a particular area.

It’s worth pointing out that if you’re building such an application, offline mode will be a prerequisite.

Why?

Because the majority of these remote locations don’t have reception.

In such scenarios, users will mainly rely on their phone’s GPS sensors to access their location and find nearby campgrounds.

Current Status of Campground Locator

Campground locators and RV parking spot locator apps are gradually emerging.

If you build a campground locator app in 2023,

You can be one of the early ventures tapping into the industry.

13. Scooter Rental Marketplace

While the tourism business in a foreign country,

The majority of travelers want to experience the local culture and enjoy restaurant/bar hopping.

Unfortunately, that’s not possible with public transportation or a car

Due to the crowded streets.

That’s why many transportation startups have invested in scooter/bike rental marketplaces to let people travel on electric scooters/bikes and explore the streets at affordable rates.

Now, when it comes to starting a scooter rental marketplace,

You’ll have to tie up with a biking agency that designs such tech-driven scooters and bikes.

It’ll also be crucial to set up multiple parking spots so that people can easily pick up and drop off their rented scooters whenever they want.

Current Status of Scooter Rental Marketplaces

As of today, the USA market has dozens of scooter/bike rental companies that operate across different states of the country.

14. Social Media Platform for Solo Travelers

Backpacking and solo traveling has emerged as a trend in the travel industry

And many adventure enthusiasts are picking up their backpacks every now and then to explore a different part of the world.

While on a solo trip,

Many people want to get in touch with other solo adventurers to meet like-minded people.

For such people,

You can create a social media platform that primarily targets travel enthusiasts and backpackers.

Current Status of Social Media Platforms for Solo Travelers.

Travello is one of the most popular traveling platforms for solo travelers that allows people to find nearby backpackers in a foreign country.

You can build a Travello-like app to seep into the market and let people make their solo travels more memorable.

15. Translator App

One of the most common challenges for travelers is to communicate with the local people and contemplate the meaning of sign boards.

Across the globe,

The majority of countries have posted signboards in their native languages and for a foreigner reading these signboards becomes a real task.

That’s where digital translators come into the picture.

Through AR integration, these apps can let users translate any signboard into their native language and navigate their way to a foreign country without any hassle.

Current Status of Translator Apps

Even though Google Translator is one of the most popular digital translators,

its accuracy may not be up to the mark all the time.

That’s why people are always looking for new options that offer better accuracy.

Are you thinking of starting your own business?

If you are interested in starting your business, you need to research the tourism and travel segment you choose properly.

Also, consider some out-of-the-box features that your competitors fail to notice.

Whether you want to develop a website or a mobile app, hiring a development company with prior experience in your development segment is best.

Wrapping up

The COVID-19 crisis devastated the travel industry, but now people prefer to travel for a change from their daily routine.

This has enticed both customers and startups to launch new travel businesses.

However, before launching a travel and tourism business,

It is advised that you develop a search and select a strong business strategy and identify the loopholes and additional features that will give your business a competitive advantage.