This page features essential marketing information for people planning on starting a touring business. Use the bookmarks below to navigate quickly to the section you require, or download the full pdf document (294 kb).

The basics
Deciding to start up a touring business
Am I ready to take the next step?
Reaching your decision
Meeting Government requirements
Insuring your business and planning for growth
Accreditation
Seek Advice
Planning for growth

The basics

• Make sure you and your family are ready – this industry has a demanding set of skills that will probably change your lifestyle
• Do your homework and know your local, state and federal requirements
• Ensure that you’re appropriately insured as a tourism business
• Good tourism businesses are always changing and growing; undertake all relevant research
• Be adequately resourced. It will take longer than you think to get things off the ground and to reach break-even, let alone make a profit
• Do you like dealing with people of all different types and personalities? Could you do it every day?
• Approach the business concept strategically; develop a business plan

Tip: Starting up in Tourism Workshop

Tourism Alliance Victoria, Small Business Victoria, Tourism Victoria and the OAMPS Group have combined their expertise and resources to develop an introduction to the tourism industry for new operators. Its intention is to provide a strategic insight across a range of essential business practices and improve overall business acumen and planning. For more information visit www.tourismalliance.com.au

Other valuable resources for business starters are:

• The Victorian Business Line - 13 22 15
• Business Victoria website - www.business.vic.gov.au
• Victorian Business Centres (20 kb)

Deciding to start up a touring business

What is a touring business?

A touring business provides transport along with scheduled guided itineraries, and sometimes also makes arrangements for meals and accommodation. Touring businesses generally own or lease vehicles and provide guides/drivers.

Types of tours

• Full & half day tours
• Extended tours
• Group package tours
• 4X4 Adventure tours
• Tag-along tours
• Walking tours
• Cycling tours
• Horse Riding Tours
• Winery Tours

Am I ready to take the next step?

Running a touring business is definitely not a nine-to-five job. How ready are you to take the next step? Ask the following questions:

• Have you thoroughly researched potential tourism markets and the level of competition in the area you plan to set up your business?
• Are you willing to work long hours, as tourism is not a 9 to 5, Monday - Friday industry?
• Have you investigated the local, state and federal licences and registrations that could be relevant to your business? Have you investigated insurance costs?
• Do you have the financial resources to cover start up and living costs, until your business becomes profitable? Could you survive 2-3 years before making a profit?
• Have you written a business plan, complete with a marketing plan and projected budget?

If you answered ‘No’ to any of the questions above, it is recommended that further research is undertaken before commencing your business. Start by completing this form: Step-By-Step: Are you ready to start a business.

Do you have the personal attributes to run a tourism business?

What skills do you have, and what skills gaps will you need to fill?
To help you to assess your skill level and training needs click here

Have you researched the market demand and need for your touring business?
To discover free and low cost research opportunities click here

Reaching your decision

The decision to commence a touring business requires careful consideration regarding the type of tour you intend to develop.

• Which area of the touring industry do you want to become involved in? i.e. full day, half day etc.
• Who are your competitors? How will your business be significantly different to other touring companies in your region?
• How much will the operation realistically cost to set up and how much money do you have available to invest in the business?
• Can you obtain affordable insurance cover to operate the business?
• Could you cover operating costs from other income sources or savings until the business breaks-even (typically 2-3 years)
• What types of customers will be attracted to your business? Are they readily accessible? Are there enough of them to sustain your business?
• Where and how will you find your customers?
• What knowledge and budget do you have at your disposal to market your business?
• Will your touring business represent quality and value for money?

Meeting Government requirements

Your main local, state and federal Government requirements are as follows.

Applying for a vehicle licence - Driver Accreditation (Commercial Passenger Vehicle)

To drive a bus or special purpose vehicle in Victoria, you must hold a Driver Accreditation as well as a Victorian Driver's Licence. This accreditation is required if your business will be providing a service carrying passengers by bus or a vehicle with more than 13 seats. Obtaining this accreditation will ensure you have met the prescribed standards relating to the provision of road transport passengers services, passenger and public safety, service to passengers and vehicle and equipment safety.

A commercial passenger vehicle is any motor vehicle that is used or intended to be used for carrying passengers for hire or reward. In addition to taxis and hire cars, commercial passenger vehicles include:

• Special purpose vehicles (e.g. vehicles used for weddings or tours);
• Restricted hire car vehicles including pre-1943 vehicles, four wheel drive tour vehicles, motorcycles and non-emergency ambulances
• Route, tour and charter buses.

Accreditation can be arranged through the Department of Transport.

Applying for a tour operator licence

All operators offering outdoor travel, adventure or educational tours on public land areas in Victoria on a commercial basis must hold a current tour operator permit. Non-profit organisations and schools are also required to obtain permits for their activities at specific public land sites. Commercial activities on public land which require a permit include, but are not limited to the following: bushwalking, bicycle riding, horse riding, canoeing, rock climbing and abseiling tours, and tours visiting the 12 Apostles, The Grampians and other National Parks.

Further information for prospective tour operators

Further licences, registrations and permits

• To register a business or company name: business name registration with Consumer Affairs Victoria, or company name registration with the Australian Securities and Investments Commission
• To register for tax: Tax File Number, Australian Business Number and GST / PAYG withholding registrations from the Australian Taxation Office.
• To play recorded music: music licences from the Australian Performing Rights Association and Phonographic Performance Company of Australia

Make the job easy – use BLIS

The easiest way to identify the range of licences, registrations and permits you will need is to use the Business Licence Information Service (BLIS).

Go to www.business.vic.gov.au/blis, click ‘Search the Victorian Business Licence Information Service (BLIS)’, choose the report type you want, and search for ‘tours’. BLIS will create a report of your relevant licences, application forms for those licences and details of the authorities you will need to contact.

Insuring your business and planning for growth

Insuring your business

As well as insuring your premises and assets, the following additional insurances can be critical for touring businesses.

• Public liability of at least $10 million to cover paying customers
• Product liability to cover prepared food or other products offered to guests
• Motor vehicle insurance
• Personal injury and/or income protection, especially if WorkCover is not applicable to your business. Personal injury and income protection are often taken out by sole traders and partnerships.

Learn more about this vital aspect of operating a tourism business

Accreditation

Accreditation is a set of industry standards established by the tourism industry to a model for better business practice and customer service. In other words, accreditation provides business operators with a guide or outline of industry requirements to help them plan, develop, improve and document their business practices and procedures.

Tourism Accreditation Board of Victoria Inc

The Tourism Accreditation Board of Victoria Inc (TABV) administers the accreditation program in Victoria.
TABV contact details: Address: Level 2, 10 Queen Street, Melbourne, VIC 3000
Phone: (03) 9620 4199
Email:
Website: www.tourismaccreditationvic.com.au

Seek Advice

Professional advice sought at this stage can save money and heartache down the track. Accountants, solicitors, business advisors, management consultants and experienced tourism staff can be sourced to provide objective and realistic advice. Don’t let your heart rule your head!

Planning for growth

Once you’re established, you need to plan for growth. Use the following contacts list to plan and develop an outstanding Victorian touring business.

Tourism Victoria’s online tourism excellence modules will also be an invaluable source of information as you proceed down the path to profitability.

View all the Tourism Excellence modules

View module 3 ‘Business Excellence’