Investing in Travel and Tourism: Ideas to Earn Money
The Travel and Tourism Industry
The travel and tourism industry is one of the fastest-growing sectors among others. Since the early 1950s, the growth of tourism both domestically in the developed countries and internationally has been phenomenal in its scale, and remarkably resilient to periodic economic and political adversity.
According to the report published by the World Travel and Tourism Council on the economic impact of global Travel and Tourism in 2019:
- Travel & Tourism has generated 10.4% of the global GDP.
- There are 319 million jobs that are supported by Travel & Tourism, which is 10% of global employment.
- One out of five of all global net jobs is created over the last five years within the Travel & Tourism sector.
Travel and tourism have been working hand in hand by being one of the booming sectors among the progressive countries, and even those who are working to improve their economies are also giving importance to these sectors.
Travel and Tourism: Is there a Difference?
Many people struggle to see a distinction between the two. First, because there is clearly a significant overlap between them and the concepts are closely linked. Second, because they both cater to people’s travel purposes and the duration of their stay in one place.
To explain it further, let us look at the following definitions provided on the article Travel and Tourism Industry; An complete Overview of All Activities:
Tourism is generally regarded as the act of traveling to a different location, for either business or pleasure purposes. However, it actually has quite a specific definition: the act of traveling to another environment, for at least 24 hours, but for no longer than one year, for purposes related to business or leisure.
Travel refers to the act of moving from one location to another. This can refer to long-distance travel, short-distance travel, overseas travel, domestic travel, and various other forms. Crucially, travel also includes both round trips and one-way journeys, and it covers a wide variety of different travel purposes.
Looking at the brief explanations, it may be hard to draw the line. Nonetheless, the tourism industry is concerned with people traveling for business or pleasure purposes, staying in their destination for at least one night, and then returning. By contrast, the travel industry has a wider scope, covering more travel purposes and durations.
Sectors within the Travel and Tourism Industry
The travel and tourism industry will not become a significant sector globally without its collaboration among various companies and sectors, which are the following:
Travel and tourism require overnight accommodation for different lengths of time. The accommodation industry offers various options for customers, catering to different budgets and requirements. Hotels, timeshare accommodation, agri-tourism and farmhouse accommodation, cruises, bed and breakfast, camping, and are some of the options that tourists can choose for their accommodation.
Without this sector traveling to and forth would not be possible. The transportation sector is concerned with the movement of people from one location to another and includes a wide variety of different types of travel, including air, road, rail, and water-based methods.
After tourists reach their travel destination, they would also need entertainment, even if that is not the primary purpose of their journey. However, in some cases, these days, companies or establishments providing entertainment are one of the major attractions drawing people to a location in the first place. Tourists guide and tours, shopping, casino, and others are some of the categories under this sector.
4. Food and Beverages
The food and beverage industry caters to the basic human needs of tourists and travelers. Similarly, there is a wide range of different company types that fall within this sector, such as nightclubs, bars and cafés, catering, and restaurants, which could serve as a reason why travelers love to visit a specific place or country or could provide socialization opportunities to them.
5. Related industries
There are many other industries that are more broadly linked to either tourism, travel industry, or both. These include companies that promote the interests of the travel industry itself, businesses that help to actually connect customers with travel and tourism products, and organizations that provide either practical support or logistical assistance for tourists and travelers. Travel agencies, tourism organizations, tour operators, travel agents, and financial services are among the related industries that also play a big part in the growth of the tourism and travel industry in a certain place.
Investing in Travel and Tourism: Ideas to Earn Money
As pointed out earlier, the travel and tourism industry is one of the main sources of income in most countries of the world. Investing in this sector means accessing countless direct and indirect job opportunities in the business sector, as well as profitable earnings. Here are some of the many opportunities to invest in the travel and tourism industries across the world:
1. Travel guide
One of the trips and activities related to tourism that an entrepreneur can successfully start with little or no money is to become a tourist guide. The main requirement to start this is to ensure that you can speak at least one or more foreign languages, as well as have adequate knowledge of the culture and heritage.
2. Custom tours
The development and sale of software applications related to travel and tours is another interesting way to invest in the industry. If you are a software developer, consider developing custom software applications to simplify the industry processes and operations and that fit perfectly into your client’s business.
If you are looking for a tourism-related and profitable idea or activity to be installed in a tourist city, then you can consider opening a gift shop. Most visitors usually prefer to buy local handicrafts, unique gifts, or native clothing.
4. Taxis and shutle buses
The taxi and shuttle bus business is another great business idea related to tourism that thrives quite well in a tourist city. Tourists constantly feel the need to move from one site to another, so there is a need for a shuttle bus service, which is also essential in transport activities from the airport to the hotel and vice versa.
The photography business is a commercial enterprise added to the value chain of the travel and tourism industry. Sure, most tourists always travel with their own cameras to capture beautiful places and moments, but the presence of a professional photographer is always particularly appreciated.
6. Reception services
Tourist accommodation services consist of welcoming tourists, providing them with useful information, deals, packages, and other opportunities available in the city.
7. Baggage delivery
Another business idea in the sector is the luggage delivery service which is all about helping travelers avoid long waits and tedious security checks.
8. Automatic self-service laundry
The self-service laundry business is another means of earning income from the travel and tourism business chain. As the name suggests, a self-service laundry is a space where people go to personally wash and dry their clothes; customers provide their own labor but still pay for using laundry equipment.
9. Canoes and motorboat rental services
The rental of canoes and motorboats is an interesting way to earn money, especially if you are an adventurous type. However, make sure you have taken a look into security measures before starting this type of business.
10. Travel and tourism consultancy
If you have solid experience, one of the best ideas to invest in tourism is a travel and tourism consulting business that will allow you to work with different types of clients, ranging from individual tourists to businesses and from private organizations to government agencies.
Most consumers are familiar with the travel and tourism industry from using its services for rest and relaxation during holidays, and these same activities could prove lucrative from an investing standpoint, giving you access to job opportunities in the business sector, as well as a good stream of revenue.