Joint ventures make sense when your tour or activity product complements the offerings of another operator.
But engaging in a joint venture is also a big risk – so before you dive in, dot your i’s and cross your t’s.
Here are our top tips for tour and activity operators looking to establish a joint venture.
It goes without saying that there needs to be an obvious benefit in partnering together so that it’s worth the time and effort you’ll both be putting into it.
There are an array of different types of tourism operators – accommodation providers, shuttle and transport operators, and of course tours and activities. It’s likely that there will be more than one business partner involved.
For example – if you offer walking tours, you can partner with an abseiling operator in the region, a a local zoo, a small hotel, and a shuttle service.
Some of the key benefits both parties experience:
You will be able to offer a more attractive itinerary by combining your resources and expertise, instead of trying to build it all yourself.
Everyone involved needs to be on the same page for your joint venture to work.
Do a background check and ask yourself:
You and your partners need to be in it for the long haul, so it’s important to take your time with decisions like these.
Start off your joined venture on the right foot. Before any work takes place, formalise your partnership with a contract.
Key elements of your contract include:
You should definitely get professional advice from a lawyer, accountant, and financial broker before you finalise the agreement.
Like any relationship, its success requires a consistent investment of your time and effort.
Some items that should be on your checklist:
Show your commitment to the success of your joint venture by making your partners feel important.