A niche can be defined as “a place or position suitable for a person or thing” or as “a distinct segment of the market”. So, what exactly does that mean for your tour or activity company? It simply means that you’ll define a narrow focus for your adventure business which will help you to target a specific market.
There are many benefits to picking a niche, including positioning yourself as an expert, which allows you to differentiate from the competition. Imagine this, if an adventurous millennial is looking to book a tour, would they go with a tour company who specializes in adrenaline-filled tour experiences, or would they choose a company that offers tours for families, retirees and seemingly everyone else under the sun? Chances are, they’ll pick the tour business that specializes in the exact experience that they are looking for.
Selecting a niche for your tour/activity company can feel like a difficult and overwhelming process. It’s important to remember that picking a niche does not mean you’re excluding a huge portion of potential clients. It simply means that you can stop chasing “anybody” and start attracting a specific market. Picking a niche will not limit your sales – it will actually make growing your business much easier.
So, you’re convinced that you need to pick a niche for your adventure company, but where do you begin? Well, you can start with a strategic plan outline, or you can answer 3 questions we’ve compiled which may help you build a better brand as well.
1. What am I passionate about?
You should decide what you are passionate about, and see if you can pick a related niche. Perhaps you are passionate about sustainability and the environment, if so then you can sell ethical travel experiences. If you’re interested in history, then your tour business might be solely focused on historical tours of the local area. By choosing a niched based off of your passions, you’re not only making a smart business decision, but you’re also ensuring that you’re wildly passionate about every aspect of your business.
2. What does my market demand?
No matter how passionate you might be about a something, if there is no demand in the market, you cannot sell it. For example, you may passionate about craft beer, but if there are no successful, local, craft breweries, you will have a very difficult time creating a winning beer tasting tour. Similarly, if you are crazy about water skiing, but live in a land-locked area, with one tiny lake, where water sports are not popular, you may want to re-think your niche.
3. How much local competition is there?
You might own a helicopter tour company, and you’re passionate about yoga. Better still, yoga is insanely popular in your local area. So, you have the idea to offer “Heli-Yoga”, combining a helicopter tour with a yoga class. Even though it seems like you have a winning idea, there is one more question to answer. It’s important to check the competition in your area. A quick google search might tell you that there are already 5 other local helicopter companies that offer “heli-yoga”. At this point you will need to differentiate in some other way, such as price, clientele or otherwise.
As you’re starting a tour company, don’t forget to keep a niche in mind. Find the perfect overlap between what you want to do, what your market demands, and what your competition isn’t doing, and you might just have the perfect niche.