Top 10 Business Opportunities for Entrepreneurs in the Tourism Industry

June 21, 2022

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The tourism and travel industry has grown tremendously in the past few years, and the global international tourist 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 the wide scope for the tourism industry 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 2022.

Top 10 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.

1. Workcations Business

Workcations business came into notice during the pandemic when people worked from home. And now, it is quite a popular business opportunity for business owners. 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 “workcatation” business for remote workers.

Current Status Of Workcation Business Market

In 2022, even after 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 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 are more expensive than renting a place, but you can implement the Airbnb business model to rent an apartment or a room. 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, 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%. The global Kennels business market is expected to grow at a CAGR of 6.12% in 2026.

4. Travel Agency

The travel agency helps customers travel to various countries and places, helping them throughout from flight tickets to hotel accommodations as deciding where to go and how much per ahead charge is a daunting task.

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

Current Status Of 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 $972.1 billion in 2020, and now it is expected to reach $972.1 billion in 2025 at a CGPR of 16.1%.

5. Adventure Booking

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

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 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 a 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.

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.

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

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.

About the Author Sandeep Kumar is a Director at RV Technologies. Having an inclination towards software development, Sandeep always ensures to stay on top of the latest development technologies and how to implement them in real-world projects. He is always ready to share his insight with the developers so that they can also leverage the modern-day tech stack and build futuristic digital solutions for clients. Apart from overseeing all the development projects, Sandeep also likes to write down and share his insights with the world to familiarize people with the latest technologies and their potential in our everyday lives.

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