In 2025, India’s tourism industry is worth over ₹18 lakh crore, and even small towns are emerging as sought-after travel spots. With improved transport connectivity, more disposable income, and the rapid growth of digital bookings, running a tour & travel business can be both profitable and enjoyable.
For a passionate entrepreneur, this business offers steady earnings and the joy of sharing their town’s hidden treasures. A well-run operation in a small town can earn anywhere from ₹20,000 to ₹50,000 in off-seasons, and ₹50,000 to ₹1 lakh during peak tourist months. It’s not just a business—it’s a path to financial freedom while promoting the beauty of one’s own hometown.
Understanding Tourism Opportunities in Small Towns
Small towns often hold untapped tourism potential—heritage monuments, religious sites, local cuisines, and vibrant festivals. In 2025, travellers are seeking these authentic experiences over crowded, over-commercialised destinations.
A small town receiving even 10,000 visitors annually can be a goldmine for the right operator. Average domestic tourists spend ₹3,000–₹4,000 per trip, while foreign tourists spend ₹8,000–₹12,000. Packaging and presenting these attractions well can quickly set your business apart.
Researching Your Target Audience
The customer base for a small-town travel business is diverse:
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- Domestic travellers from nearby cities (often weekend trips)
- Out-of-state visitors seeking unique destinations
- International tourists looking for cultural immersion
By understanding their needs, you can design both budget and premium packages. For example, younger tourists may prefer adventure and photography tours, while families may enjoy heritage walks and food trails.
Creating a Business Plan for Tour & Travel Services
Your business plan should outline services such as guided tours, accommodation bookings, transport arrangements, and special event packages.
With the right mix of offerings, a small-town tour & travel operator can make ₹20,000–₹50,000 in off-season months, and during peak times like festivals or holidays, profits can rise to ₹50,000–₹1 lakh. These earnings depend on the number of bookings and the type of packages sold.
Legal Requirements and Business Registration
To run this business legally, you must register it. For a small operation, a sole proprietorship (₹2,000–₹5,000 registration cost) works well. Larger operations may prefer a Private Limited Company (₹10,000–₹15,000).
GST registration is mandatory if turnover exceeds ₹20 lakh annually. If you serve international clients, membership with tourism associations can enhance credibility.
Selecting the Right Location for Your Office
An office near a railway station, bus stand, or main market can attract walk-in customers. A 150–200 sq. ft. space in such a location typically costs ₹5,000–₹12,000 per month in a small town.
If you want to save costs, start from home and meet clients at hotels, cafés, or public venues. This can reduce annual expenses by up to ₹1 lakh.
Building Local Partnerships and Vendor Network
Here’s where the real advantage lies—there is no need to own commercial vehicles. Local taxi and bus operators often partner with travel businesses. You simply book customers on their vehicles and earn a 10% to 20% commission per trip.
For example, if a customer books a ₹3,000 day trip, your commission could be ₹300–₹600. With 50 such bookings in a month, that’s ₹15,000–₹30,000 in commission alone, without investing in a vehicle.
Developing Unique Travel Packages
Unique packages can increase customer interest. These may include:
- Local heritage and culture tours
- Village homestays with traditional meals
- Nature and adventure treks
- Festival and fair-based tours
Premium packages priced at ₹5,000–₹7,000 for two-day trips can significantly increase monthly revenue if marketed well.
Marketing Your Tour & Travel Business in 2025
In 2025, online marketing is a must. Social media ads costing ₹3,000–₹5,000 per month can reach thousands of potential customers.
Offline marketing—such as banners, flyers, and tie-ups with hotels—still works well in small towns. A balanced monthly marketing budget of ₹8,000–₹12,000 can deliver multiple times its cost in bookings.
Using Technology for Better Customer Experience
Invest in a user-friendly booking system (₹5,000–₹15,000 annually). Offer digital payment options and instant itinerary sharing.
GPS-based navigation apps and quick messaging tools also help customers feel secure and connected throughout their journey.
Hiring and Training Staff for Customer Service
Hiring one trained guide and a booking assistant may cost ₹15,000–₹25,000 per month combined.
Training should focus on communication, safety, and problem-solving. Well-trained staff lead to better reviews and more repeat customers.
Ensuring Safety and Quality Standards
Safety is non-negotiable. Always use trusted transport partners, ensure vehicles are well-maintained, and keep first-aid kits available.
Maintaining quality standards can lead to a 20–30% increase in repeat bookings, boosting long-term profits.
Managing Finances and Budgeting for Growth
Initial investment in 2025:
- Office setup: ₹50,000–₹1.5 lakh
- Registration & licensing: ₹5,000–₹20,000
- Marketing (first 3 months): ₹25,000–₹35,000
- Technology & software: ₹10,000–₹20,000
- Working capital: ₹50,000–₹1 lakh
Total: ₹1.4 lakh–₹3.2 lakh
Earnings:
- Off-season: ₹20,000–₹50,000 per month
- Peak season: ₹50,000–₹1 lakh per month
Expanding Services Beyond Local Tours
Once your local business is stable, expand into weekend getaways, intercity tours, and pilgrimage packages. You can also handle corporate travel and destination weddings—both highly profitable niches.
Expansion can increase overall earnings by 40%–60% within 2–3 years.
Conclusion
A tour & travel business in a small Indian town in 2025 offers low investment, quick returns, and seasonal profit spikes. You don’t need to own vehicles—partnering with local transport providers and earning 10%–20% commission per trip keeps costs low and profits high.
With the right marketing, partnerships, and service quality, earning ₹20,000–₹50,000 in off-seasons and ₹50,000–₹1 lakh in peak months is realistic. For anyone passionate about tourism, this is the right time to turn that passion into a thriving business.