Looking for a travel agency business plan template? The Toolkit builds yours with your own numbers.
Adventure travel businesses look profitable until you account for guides, insurance, equipment, and the deposits paid to lodges and operators months before a trip runs. Margins that seem comfortable on a spreadsheet get squeezed quickly when bookings fall short or a trip has to be cancelled.
This sample plan shows how an adventure travel company structures its operating costs, prices its packages, and projects revenue based on trip numbers and group sizes.
Work through how Eastbrook Adventures manages its costs and builds its client base. Our Business Plan Toolkit gives you the same financial framework.
Executive Summary
Eastbrook Adventures was formed to provide hard-adventure sport/travel packages with upscale accommodations, gourmet food, and celebrity service providers to wealthy clients. Eastbrook Adventures’ hard adventures include helicopter-skiing, kayaking, white-water rafting, and mountain biking. The founders of Eastbrook Adventures are Jordan Stephan (MBA/JD), Jillyn Certo (MBA), and Loren Harlo (MBA). In addition to their business training, they are passionate about the activities Eastbrook Adventures will offer. An opportunity exists for two reasons. First, tourism is a growing industry, and within it adventure travel is one of the faster-growing segments. Second, there are few providers of hard-adventure travel to upscale clients. Virtually all companies that provide “hard” adventure activities appeal to a lower income client. Companies that appeal to a wealthier clientele generally provide “soft” adventure packages. Hard-adventure activities involve difficult physical requirements. They carry a higher level of risk than do “soft” activities. Soft adventure activities may involve some physical exertion, however they involve a low level of risk and can be engaged in by non-athletic people. The company’s target customers are high-income adventure travelers.
Financial highlights:
| Metric | Year 1 | Year 2 | Year 3 |
|---|---|---|---|
| Revenue | $1,176,400 | $1,638,900 | $2,117,500 |
| Gross margin | 31% | 32% | 33% |
| Net profit / (loss) | $27,500 | $115,800 | $228,500 |
Company Overview
Eastbrook Adventures is a travel agency operating in Denver, Colorado. It sells hard-adventure packages, such as helicopter-skiing, kayaking, white-water rafting and mountain biking, combined with upscale accommodation and gourmet food, a pairing few other providers offer.
Mission: To deliver consistent, high-quality service to every client, building long-term relationships based on trust and results.
Business objectives:
| Period | Target |
|---|---|
| Year 1 | Establish brand, build initial client base, reach monthly break-even |
| Year 2 | Grow revenue by around 40 percent, expand the trip calendar, hire a trip coordinator |
| Year 3 | Consolidate market position, target new customer segments, achieve strong net margins |
Market & Customer Analysis
Industry context
Guides, accommodation and activity permits are booked before a hard-adventure trip fills, so a trip that runs below its planned group size can lose money. Eastbrook Adventures' direct labour and contractor costs of $811,700 take 69% of its $1,176,400 first-year revenue, leaving a 31% gross margin to pay the founders, marketing and office.
At a 31% margin, each dollar of fixed cost needs about $3.23 of package sales to cover it. Monthly fixed costs of $28,100 therefore call for $90,600 of revenue a month, and year-one sales average $98,000, about 8% above that line.
A common rule of thumb for trip-based businesses is to set a minimum group size for every departure that covers that trip's committed costs, and to combine or cancel trips that fall short before deposits become non-refundable. With so little room in year one, that discipline carries the plan; by year three, revenue of $2,117,500 produces $228,500 of net profit, an 11% net margin.
Target customer profile
Eastbrook Adventures’ primary customers are wealthy, physically active travelers, based in the Denver, Colorado area and further afield, who want hard-adventure activities without giving up comfort. These customers prioritise quality and safety over lowest price and are willing to pay a premium for upscale accommodation and expert guides.
Competitor analysis:
| Competitor | Strengths | Weaknesses |
|---|---|---|
| Hard-adventure outfitters | Experienced guides, strong activity focus | Basic accommodation and food, aimed at lower-income clients |
| Luxury travel agencies | Upscale accommodation, wealthy client base | Mostly soft-adventure packages |
| Online travel sites | Wide reach, easy booking | No guided hard-adventure packages, little personal service |
Eastbrook Adventures’ advantage: Combining genuine hard-adventure activities with upscale accommodation, gourmet food and personal service is the primary competitive differentiator.
SWOT analysis:
| Positive | Negative | |
|---|---|---|
| Internal | Strengths: Specialist expertise; three committed founders; strong service quality; clear target market positioning | Weaknesses: Limited brand recognition at launch; single location; reliance on founders’ capacity in early years |
| External | Opportunities: Growing target market; underserved customer segments; digital marketing reach; referral network growth | Threats: Established competitors with greater resources; economic conditions affecting discretionary spend; potential new market entrants |
Sales & Marketing Plan
Eastbrook Adventures reaches its target customers through a combination of digital marketing, referral programmes, and direct outreach. The primary acquisition channels are local search (Google Maps and organic SEO), word-of-mouth referral from satisfied clients, and targeted paid advertising on social media platforms where the target customer is active.
Pricing approach: Pricing is set at a modest premium to the local market average, reflecting the specialist quality and reliability of the service. All pricing is transparent and communicated clearly before a trip is booked.
Sales process:
- Enquiry received by phone, email, or website contact form
- Initial consultation or discovery call completed within 24 hours
- Proposal or quote issued within 48 hours
- Contract or agreement signed; deposit collected where applicable
- Service delivered; follow-up contact made within one week of completion
Operating Plan
Eastbrook Adventures operates from Denver, Colorado with a lean team focused on service delivery quality over volume. Standard operating procedures cover client onboarding, service delivery, quality review, and client communication.
Staffing plan:
| Role | Year 1 | Year 2 | Year 3 |
|---|---|---|---|
| Founders (three partners) | 3 | 3 | 3 |
| Trip coordinators | 0 | 1 | 2 |
| Administration / support | 1 | 1 | 1 |
Key suppliers and partnerships: Eastbrook Adventures maintains relationships with a small number of trusted suppliers and subcontractors to ensure consistent service quality and the ability to manage periods of high demand.
Management Team
The founding team of Eastbrook Adventures, Jordan Stephan (MBA/JD), Jillyn Certo (MBA) and Loren Harlo (MBA), brings business training and a clear understanding of the target market. All three are active participants in the sports the company offers and share the leadership of the organisation.
Hiring plan: As the business grows, the priority is to hire people who share the company's commitment to quality and client service. The business will promote from within where possible and invest in staff development to reduce turnover.
Financial Plan
3-year profit and loss projection:
| Year 1 | Year 2 | Year 3 | |
|---|---|---|---|
| Revenue | $1,176,400 | $1,638,900 | $2,117,500 |
| Direct labour and contractor costs | $811,700 | $1,114,500 | $1,418,700 |
| Gross profit | $364,700 | $524,400 | $698,800 |
| Gross margin | 31% | 32% | 33% |
| Salaries and wages | $198,300 | $247,600 | $289,400 |
| Marketing and advertising | $68,400 | $79,200 | $88,700 |
| Rent and utilities | $28,600 | $29,500 | $30,400 |
| Other operating costs | $41,900 | $52,300 | $61,800 |
| Total operating expenses | $337,200 | $408,600 | $470,300 |
| Net profit / (loss) | $27,500 | $115,800 | $228,500 |
Break-even analysis:
- Estimated monthly fixed costs: $28,100
- Monthly revenue required to break even: $90,600
- Break-even is projected within the first year of trading.
Need your own travel agency business plan? Click here for the travel agency business plan template.