The program will cover the following online travel business types. This is a quick reference where I highlight the strengths, weaknesses, rate the risk, the difficulty to start and the minimum budget I think you'll need to launch.
NEW Private Sale, Flash Sale, Member-only, Daily Deal, Group Buying travel sites.
Strengths: These travel sites are hot right now and all the rage. If I was going to start an online travel business today I would start a private sale or member-only travel site. Early entrants to the niche markets will gain market share and have first mover advantages.
Weaknesses: It will get competitive very quickly. Some believe these sites are just a fad.
Risk: 1-2 (very low risk)
Difficulty to start: 1-4 (fairly easy to start)
Budget to Launch: $1,000-$5,000
Tour/Trip Operators: in-bound, out-bound, receptive.
Strengths: Tour/Trip operators have been around for years. The business model is solid and many travel suppliers are use to doing business with tour operators. You can sell direct to consumers and you can wholesale to travel agents. You can start a business with one really good travel product.
Weaknesses: It can be difficult to break into this business. You will have competitors most likely that have been around for years.
Risk: 5-7 (moderate-to-fairly risky)
Difficulty to start: 2-6 (moderately easy to start)
Budget to Launch: $2,000-$100,000
NOTE* My wife and I started CollegeSkiTrips.com as a tour operator with $1,500, then we transitioned to an online trip operator when the Internet came about in 1997. You can keep your start up costs low by starting with one travel product.
Guides
Strengths: There is always demand for guides and you can break into the travel business very quickly by becoming a guide. Can be a very rewarding business. You can partner with hotels that can feed you the business in the early days.
Weaknesses: Your work will mainly occur in the field, on-site. This is not a homebased opportunity. It's difficult to make big money in the guide business.
Risk: 1 (no risk)
Difficulty to start: 1 (very easy)
Budget to Launch: $500-$5,000
NOTE* I was an Orvis-endorsed Fly-Fishing guide for 7-years in my early 20's, guiding in the summertime.
Destination Activity Providers
Strengths: There is always demand for great activities in destinations. You can partner with hotels that can feed you the business in the early days. This business is a great entry into the travel business.
Weaknesses: You will most likely be dealing with guests one-on-one and this will take you outside the home-office. If you are an outdoors person and like people this will be a great business for you.
Risk: 3-5 (moderately risky)
Difficulty to start: 3-5 (fairly easy)
Budget to Launch: $5,000-$25,000
Online Travel Agencies (wholesalers OTAs)
Strengths: Enables you to sell multiple travel products including lodging, air, car rental, vacation packages and much more.
Weaknesses: The OTA market is a very competitive market with direct competition from Expedia, Travelocity, Orbitz and the dozen or so of the other OTAs.
Risk: 7-10 (very risky)
Difficulty to start: 7-10 (very difficult)
Budget to Launch: $25,000-$1,000,000
Online Travel Brokers
Strengths: You can become an agent or representative for travel suppliers very quickly if you have an idea on how to bring them business. This could be a parttime job to create income while you build your main travel business.
Weaknesses: Some people may just view this as a job working for others but it's a quick entry into the travel business.
Risk: 0 (no risk)
Difficulty to start: 1 (very easy)
Budget to Launch: Free to up to $1,000
*NOTE* I currently consult for two large companies in the private sale travel market. Once in a while I introduce some of my hotel partners to these two clients. I earn a % of the sale proceeds if they run a sale together. It's a win-win for everyone.