General Discussion / Re: Advice about Unique Bicycle Touring Company
« on: November 18, 2010, 07:06:22 pm »One other thing that can have a major impact on your economic analysis. Have you factored in the cost of the RV itself? A Class A motor home capable of accommodating 7 or 8 people (6 riders plus the driver and cook/mechanic) in reasonable comfort and with the amenities you propose is going to cost over $100,000, probably WAY over. Will you be able to set your rates to recover that investment in any reasonable time? Also consider maintenance costs like tires, oil changes, etc. aren't free, particularly on something the size of a large RV.
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Those are good points. The rig I'm looking at will sleep only five or six riders, plus driver and mechanic and is $65,000 (5th wheel). The answer is no, I can't recover the cost in a reasonable amount of time, but I'm going to buy the rig anyway for my own travels, so its purchase won't be strictly for the business. The business would just be a way to get back some of the costs and to enjoy a kind of rolling bed and breakfast side business--definitely not a full-time business. It's not a motorized RV, but the costs of engine maintenance will, of course, be transferred to the enormous truck required to haul this beast. And then there are costs of maintaining the rig's air-conditioning, refrigeration, plumbing, etc. And, of course, liability insurance as well as other insurance.
The main problem I'm facing, I feel, is knowing in advance whether I can target 5 or 6 riders who are willing to live in a dormitory situation; there would be four bunks and up to two double beds available--one being the master bedroom. As one member pointed out, snoring can be a real problem. On the other hand, I've slept in a tent for Ragbrai, and you can't get away from snorers even in a campground. Fortuntatly, most riders are tired enough to sleep through anything!