Should You Expand? A Decision-Making Framework for Small Tourism Operators
Expansion sounds exciting—more bookings, new locations, bigger teams. But for small tourism operators, expansion can also bring risks, complexity, and growing pains. So how do you know when it’s the right time to grow your business?
This guide gives you a practical, decision-making framework to help you evaluate if expansion makes sense, and how to do it wisely.
1. Define What "Expansion" Means for You
Expansion doesn’t have to mean building a second lodge or adding 20 employees. It can look different depending on your business goals and resources.
Common Expansion Options:
Adding a new tour or experience
Hiring seasonal staff to increase capacity
Extending your operating season
Opening a second location or partnership site
Launching an e-commerce or product line (e.g., branded merch, local food items)
Tip: Define success on your own terms. Bigger isn’t always better—sometimes smarter is.
2. Assess Demand: Are You Turning Away Guests?
Start by looking at your current demand. Are you fully booked during peak season? Do you have a waitlist? Are customers asking for services you don’t currently offer?
Key Questions to Ask:
Have your bookings steadily increased over the last 2–3 years?
Do you consistently reach full capacity during high season?
Are guests asking for new types of experiences (e.g., guided winter tours or wellness retreats)?
Are competitors offering more than you—and getting results?
If the answer is “yes” to several of these, expansion might be a natural next step.
3. Run the Numbers: Can You Afford to Expand?
It’s easy to get caught up in the “vision” of growth. But financial readiness is non-negotiable.
Run a Basic Expansion Feasibility Check:
Calculate your current profit margins
Estimate the cost of expansion (equipment, staffing, marketing, etc.)
Forecast additional revenue required to break even
Build a buffer—unexpected costs will show up
Tool Tip: Use a free business planning template from the Business Development Bank of Canada.
4. Evaluate Operational Readiness
Do you have the systems in place to handle more customers, staff, or locations without losing quality? Expanding before you're operationally ready can hurt your reputation.
Checklist:
Do you have standard operating procedures (SOPs)?
Can someone else run things if you step away?
Is your customer service scalable?
Is your tech (booking system, CRM, etc.) ready for more volume?
If you're still managing everything in your head or doing manual bookings via email, it’s worth tightening your operations first.
5. Consider the Human Side
Expansion usually means more people—whether it’s guests, staff, or partners. Are you ready to lead a larger team and manage a more complex business?
Ask Yourself:
Do I enjoy managing people?
Can I delegate without micromanaging?
Am I prepared to spend more time on admin and less on front-line work?
If the thought of hiring or leading a team makes you nervous, consider mentorship or leadership training before expanding.
Tourism HR Canada offers leadership and training resources.
6. Align Expansion With Your Lifestyle Goals
Many tourism operators start their businesses to enjoy freedom, flexibility, and a connection to their community. Expansion can threaten that if not done thoughtfully.
Ask:
Will growth give me more freedom or less?
Will it allow me to hire help or trap me in more work?
Will this move bring me closer to burnout or balance?
Growth should serve your life, not overtake it.
7. Pilot Before You Leap
Before making a big investment, test your idea. A pilot program can validate your assumptions and uncover issues early.
Examples of Pilots:
Offer a new tour or package for one season
Rent equipment instead of buying upfront
Partner with another business before opening your own second location
Gather feedback from customers and staff. Use the data to refine your idea before scaling up.
8. Secure Funding and Support
If your expansion plan looks viable, explore funding opportunities available to tourism businesses in Canada.
Useful Resources:
Indigenous Tourism Association of Canada (ITAC) grants and programs
Provincial tourism agencies often have grants, training, and marketing support.
Also consider speaking with your local Economic Development Office or Chamber of Commerce for tailored guidance.
Expansion Is a Strategy, Not a Destination
There’s no one-size-fits-all answer to the question of growth. For some operators, expansion means hiring help to reclaim their time. For others, it’s about opening a second lodge or launching a national tour brand.
Whatever it looks like for you, let your decision be data-informed, customer-driven, and values-aligned. At Roamlii, we support businesses like your meet you where your need lies. Book a Discovery Call today and let us help your business grow. Because growth is only worth it if it moves you closer to the kind of business—and life—you want.
