§1What this business is
In a large city that is not a tourist destination, you run guided city tours in your own air-conditioned 15–20 seat vans, short walking tours, special-interest tours (food, craft, history) and same-day excursions to nearby hills, lakes, forts or pilgrim spots. You hire extra vehicles and freelance guides when needed. Customers are business visitors, wedding and hospital visitors, MICE travellers and local residents with guests.
Capacity: Year 2 plan: 6,000 full-day and 10,800 half-day city tour customers, 7,200 walking-tour, 2,400 special-interest and 4,200 excursion customers.
§2Is it right for you?
Who it is for
Someone who knows the city's history and sights well and can design and sell tour packages.
Who it is not for
Someone who cannot manage drivers and guides daily or handle breakdowns and delays.
Advantages
- Few such services exist in non-tourist cities
- No hotel or restaurant to build
- Can add guide service, vehicle hire and event management later
- Local residents also use it for visiting guests
Drawbacks
- Most of the money goes into vehicles that lose value quickly
- Business falls in the monsoon
- Depends on good guides and punctual drivers
- Entry tickets and parking at spots must be managed
Skills you need
- Designing tour itineraries
- Managing drivers, guides and vehicles
- Online selling and hotel tie-ups
- Handling emergencies on the road
Why difficulty 3/5: Vehicles are easy to buy, but steady bookings and reliable staff take work.
§3Market
Who buys
- Business and conference visitors
- Visitors for weddings, education and healthcare
- Local residents with guests
- Corporates, housing societies, senior citizens and college groups for excursions
How it sells
- Own website
- Hotel front desks
- Online travel platforms
Good to know
- The report targets cities above 20 lakh people that get 20,000–50,000 visitors a day, such as Ahmedabad, Indore, Lucknow, Kanpur, Coimbatore and Patna.
- Walking tours are kept to two hours and about three kilometres.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Air-conditioned 15–20 seat vehicles | 2 | ₹30,00,000 |
| Website, printed literature and initial souvenir stock | 1 lot | ₹5,00,000 |
From: SIDBI Stand-Up Mitra project profile — City Tour and Excursions (2018) — private guide — confirm locally
- Bottled drinking water and souvenirs for each customer₹15.00 L a year in year 2
- Fuel₹5.00 L a year in year 2
- Food and beverage on excursions₹10.00 L a year in year 2
From: SIDBI Stand-Up Mitra project profile — City Tour and Excursions (2018) — private guide — confirm locally
§5Licences & registration
- Shops and Establishments registration
- GST
- Tourist vehicle permits and registration from the Regional Transport Office
- Police permission for parking at tourist spots
- State tourism department registration for tour operators where available
§6Schemes & subsidies
- Stand-Up IndiaCentralClosed₹10 lakh – ₹1 crore loan
- CGTMSECentralActiveNo collateral, up to ₹10 crore
The ₹24.30 L term loan fits Stand-Up India (₹10 L–₹1 crore) for SC/ST and women founders; CGTMSE can guarantee it. It is above the MUDRA limit of ₹20 L.
§7Money
How the investment is worked out: Two air-conditioned 15–20 seat vehicles ₹30.00 L, website, literature and initial souvenir stock ₹5.00 L, three months' office rent deposit ₹0.60 L, preliminary expenses ₹3.56 L, working capital margin ₹1.25 L = ₹40.41 L, rounded to ₹40.50 L.
Working capital: ₹1.25 L margin; no working capital loan planned.
Prices from 2018 — machinery and building costs will be higher now.
§8Export potential
Export council / board: Not verified yet
- No HS code or export body has been checked against an official list yet.
§9Risks — where people fail
- Vehicle breakdowns and accidents
- Seasonal drop in visitors
- Poor guides spoiling reviews
- Fuel and maintenance cost rises
§1030 / 60 / 90-day plan
A general plan that applies to any business. A plan for this business will be added after research.
- Days 1–30: Visit a working city tours and excursions unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
- Days 31–60: Udyam and the licences you need (Shops and Establishments registration, GST), a project report (DPR), and the scheme or loan file.
- Days 61–90: Space and machines, trial production, and first deliveries to 10 customers.
§11Who to connect with
Associations, clusters and training institutes — the directory is being built. Connect
§12Watch
There is no episode on this business yet. Shows are coming soon on the Podcast page.
Want to start City Tours and Excursions?
DPR, loan file or registration — ask us on WhatsApp.
¶Sources
Data review: 6 October 2026. Spotted a mistake? Report it. For information only — not legal or financial advice.