A cycling holiday looks like a simple product: good roads, good beds, a van for the bags, and a week of riding. Running one is a different job. You are committing to hotels months ahead, holding guests’ money for longer than most businesses ever do, promising a standard of service the law will hold you to, and taking responsibility for people who are a long way from home on a bike.
This guide is for anyone working out how to run a cycling holiday company in the UK, whether you are starting one or growing from day tours into multi-day trips. It covers the kinds of holiday you can sell, itineraries, accommodation, bikes, luggage and support vehicles, insurance, the package travel rules, insolvency protection, VAT, pricing and cash flow, guest information, booking systems, running the week and a twelve-month plan to launch.
Three honest notes before we start.
First, we build RideLoop, which includes tools for running holidays, so we are not a neutral party.
We describe RideLoop in one clearly marked section (section 13) and in the closing links. This guide is built from government guidance and public sources, which we link, and not from a claim that we run multi-day holidays ourselves.
Jump to that section →Second, the sums here are worked examples with made-up round numbers, built on example prices and costs, not anyone’s accounts. They show you the method. Replace them with your own figures.
Third, much of this guide touches the law, and the law here is unforgiving. Missing the required information, the contract or insolvency protection are criminal offences under the Package Travel Regulations. We give you the principle, link the source and say who to check with. Some rules depend on the details of your business, so please take advice from a solicitor and an accountant before you rely on any of this. Northern Ireland has its own rules for several of these topics, including employers’ liability and transport licensing, and this guide does not cover them. It is general information, not legal advice.
The short version
In this guide
01What kind of cycling holiday company are you running?
"Cycling holiday" covers several different businesses. Pick the one you are building first, because the answer changes almost everything that follows.
Guided holidays on fixed dates. A set itinerary, a departure date, a guide who rides with the group, a support vehicle, and a maximum and minimum number of guests. This is the classic model. Revenue per guest is high, and so are your fixed costs per departure: the guide and the van cost the same whether you have four guests or eight. Section 10 shows what that does to your margin.
Self-guided holidays. You supply the route, the bookings, the accommodation, the bikes and often the luggage transfers, but no guide rides with the guests. You trade the guide cost for a support line and good route information, and you can usually start on any date the rooms allow. The price is lower, the margin per guest is usually thinner, but you have no fixed per-departure cost to cover. Self-guided does not mean regulation-free: section 7 explains why.
Tailor-made holidays. A group or a couple tells you what they want and you build it. Margins can be good, but every itinerary is new work, and every one needs the same paperwork as any other package.
A mix. Some companies run a small number of guided departures at peak times and sell the same route self-guided the rest of the season. That is a sound way to fill rooms you have already committed to, but it needs a booking system that can hold one set of rooms and bikes against both products.
Then decide who you are selling to. A guided week for fit riders on road bikes and a leisurely self-guided week on e-bikes need different routes, different bikes, different hotels, different marketing and different support. Start with one lead customer and one first product.
If you have not yet run day tours, read our guide to starting a cycling tour business in the UK first. A day tour that lasts under 24 hours with no overnight stay is outside the package rules, is simpler to run, and is a good way to learn your routes and your guests before you commit to a hotel. This guide goes deeper on the multi-day side and does not repeat the day-tour material on land access, guide qualifications and risk assessments. If you also hire out bikes, our guide to starting a bike rental business covers fleet costs and break-even.
02Designing the itinerary
The itinerary is the product. Guests buy it, the hotels are booked against it, the guide leads it, and the legal information you must give before the sale describes it. Get it right before you do anything else.
Build it from ride times, not just distance. A flat 60 kilometres on a quiet road and a hilly 60 kilometres with a headwind are different days. Ride the route yourself, in both directions if you can, at the pace of your slowest likely guest, and write down how long it took with stops. Use that to set the day, not the number on a map.
Plan the shape of the week. A typical structure is a gentle first day, the harder days in the middle, a rest day or a shorter day in a long trip, and a short final day so guests are not rushing to a train. Rest days are a selling point and a safety margin, and they give you a free day to absorb weather.
Offer levels, but keep the logistics shared. Some companies sell the same route in two versions, an easier one and a harder one, so couples and groups of mixed fitness can travel together. That only works if you have the guides, vehicles and bikes to run both without doubling your cost. Set the levels clearly, in writing, so a guest can judge honestly which suits them.
Choose your stage towns for the beds as much as for the road. The best stage is useless if the only hotel within reach cannot take eight people, cannot store bikes securely or cannot feed a hungry group at six o’clock. Check the rooms first, then the road.
Have a plan B for every day. A closed bridge, a flooded section or a day of storms will happen. Know the shorter route, the transport option and the day you can drop. Write it down, so a guide can use it without phoning you.
Write the route down properly. Guided or self-guided, guests need a day-by-day description, a map or a navigation file, the distance and ride time, the meal and café stops, the water and bike-shop points, and an emergency contact. For self-guided trips this document is a large part of what the guest is buying.
Be honest about what is included. The package rules require you to describe the main characteristics of the trip, the accommodation, the meals, the transport and what the price covers before the guest commits. A clear, itemised "what’s included" list is also your defence when a guest says they expected dinner on the rest day. Build it once, and keep it in step with the itinerary.
Test it. Before you sell a departure, run it. Take a friendly group, a guide who does not know the route and a van, and run the full week, including the awkward hotel check-in. Every problem you find on the test costs you nothing. The same problem found by a paying guest costs you compensation and a review.
The land-access rules for guided groups, and what you need if you guide on Forestry England or Natural Resources Wales land, are covered in our tour business guide. If your holiday uses public roads and established cycle routes and does not guide commercially on managed land, much of that will not apply, but check each stage rather than assuming.
03Accommodation
Accommodation is usually your largest cost, the biggest early commitment and the main reason a cycling holiday is a package. Treat it like a supply contract, because it is one.
Know what you are buying. There are three common models. You can book a block of rooms at hotels, guesthouses or inns for each departure. You can build the holiday around a property of your own, priced by season or at a flat rate. Or, for self-guided trips, you can offer guests a curated list of places along the route and book the rooms for them. Each has a different risk. A block of rooms you have paid a deposit on is a cost whether or not you fill them.
Get terms in writing. For every property, agree and record:
- the number and type of rooms, and whether the price is per room or per person;
- the deposit, and the date each balance is due;
- the date by which you can release unused rooms without cost, and the cancellation charges after it;
- the meals included, and the cost and notice for dietary requirements;
- whether bikes can be stored securely overnight, and whether there is a place to dry kit, charge e-bike batteries and wash bikes;
- arrival and departure times, and what happens when a group arrives late;
- the contact you can ring out of hours.
Line the dates up against your own deadlines. This is where new companies go wrong. If your contract with guests lets you cancel a trip for too few bookings, the law fixes the notice you must give (section 7). Your hotel’s release date and balance date need to sit in a sensible order against that deadline. Section 14 and the cash-flow chart in section 8 show how the order matters.
Plan the rooming. Twin or double, single supplements, solo travellers, groups of friends who want to share, and accessible rooms. Get the rooming list from guests early, and send it to the hotels well before the day. Late changes to a rooming list are a common source of complaints.
Have a standby. Know a second hotel in each stage town you could move a group to if the first has a flood, a fire or a double-booking. The package rules put the duty to put things right on you, not the hotel (section 7).
Check the hotel’s own position. The organiser is liable to the guest for what the hotel fails to provide. You can seek redress from the hotel afterwards, but you carry the first cost. Choose suppliers you trust, visit them, and keep the paperwork that proves what was agreed.
04Bikes and e-bikes
Own, lease or hire in. Some holiday companies run their own fleet. Others hire bikes in from local shops. Your choice affects your cost per guest, your control over quality and your insurance. If you run your own fleet, our guide to starting a bike rental business has the costs, lifespan and resale sums.
One fleet, many uses. A bike committed to a holiday is out of your hire pool for the whole window, not just the days of riding, because it travels with the group and needs servicing before and after. If you also hire bikes by the day, you need one count of the fleet, shared between holidays, tours and hire, or you will promise the same bike twice.
Fit and set-up. Guests may spend several hours a day on the saddle. Measure riders when they book, not at the start line, and ask for height and inside leg, and any preferences for frame style. Collect pedal and saddle choices in advance if guests bring their own.
Service on a schedule. Bikes on a multi-day trip may take more wear than bikes on a day hire. Plan a full check before every departure and a quick one at the rest day. Carry spares and the tools to fix a puncture, a chain and a brake on the road. Keep a written record of each check. If a bike fails, you will want to show that it was serviced.
E-bikes. E-bikes can widen your market, especially on hilly routes. In Great Britain, an electrically assisted pedal cycle is treated as an ordinary bicycle if it has pedals and a motor with a continuous rated power of no more than 250 watts that cannot propel the bike above 15.5 mph, and riders must be 14 or over. Plan for batteries: range per charge against the day’s climbing, charging at every overnight stop, spare batteries or a support-vehicle swap, and clear guidance on carrying and charging them safely.
Helmets and kit. Helmets are advised by the Highway Code rather than compulsory. Decide your own policy, state it in your terms and information pack, and apply it consistently.
Brakes. Brakes must be efficient, and the Highway Code (Annex 1, "You and your bicycle") says you must ensure this. Build a brake check into every pre-departure service and keep the record.
05Luggage, support vehicles and drivers
A support vehicle carries the luggage, the spares and sometimes a tired rider. It is also where regulation hides.
Luggage transfers. On a cycling holiday guests ride and the bags go ahead. A hotel-to-hotel luggage run can be done by your own vehicle, by a local taxi or courier, or by a specialist transfer company. The guidance on package travel treats luggage transport that is part of carriage of passengers as intrinsic to it, and passenger carriage within a guided tour as part of the tour, rather than a separate travel service. It does not settle, as far as we could find, whether a separate luggage-only transfer between hotels on a cycling holiday is a separate service. Do not assume. Ask your adviser, because the answer affects whether the transfer is a travel service in its own right.
The guide as driver. On a guided holiday, it is hard for one person to guide and drive well on the same day. Plan for a separate driver, or a guide who has a clear end-of-ride shift. A tired guide behind the wheel is a danger to everyone.
Keep a plan for a breakdown. The van is a single point of failure. Know the recovery number, a replacement vehicle and what happens to the luggage if the van is stuck for a day.
06Insurance
Insurance is not a box to tick at the end. Ask for it early, in writing, because some cover will not extend to what you do.
Public liability. This covers injury to guests and damage to their property arising from your activities. Ask the insurer to confirm in writing that it covers paid cycling holidays, your guides, your vehicles’ use for support, any off-road riding and any e-bikes. Land managers such as Natural Resources Wales ask for proof of at least £5 million of public liability when you apply to use land they manage.
Vehicle insurance. A van used to carry luggage and guests in the course of business needs the right class of use. A standard policy may not cover it. Tell your insurer exactly how the vehicle is used and who drives.
Cover for the business. Think about equipment, bikes, cancellation costs you cannot recover and cyber risk. Cover can differ between insurers, so brief a broker who knows travel.
Insolvency cover is not liability cover. Insolvency protection under the Package Travel Regulations (section 8) is a legal requirement in its own right. No public liability policy provides it, and insurance against the failure of one of your suppliers does not replace it.
Travel insurance for guests. Some operators ask guests to take their own travel insurance. Ask your adviser what you may require and what you must tell guests, because the wording of your pre-contract information matters.
Risk assessment. Employers and the self-employed whose work affects other people must carry out a risk assessment, and if you have five or more employees you must write down the significant findings. A multi-day route with a different hotel, road crossing and hill each day needs one for each stage, and a written plan for the vehicle, the weather and the incident. See our tour business guide for how to structure it.
Under-18s. If you sell holidays to families with children, the adventure activities licensing scheme can apply to off-road cycling for payment to under-18s over remote terrain. The Regulations’ test has two parts, and both must be met: terrain that is moorland or more than 600 metres above sea level, and from which it would take more than 30 minutes to reach an accessible road or refuge. Providing the activity to young people is exempt only where each young person is accompanied by their own parent or legally appointed guardian. Road and cycle-path holidays are unlikely to meet the test, but check each stage.
07Package travel law, in depth
The Package Travel and Linked Travel Arrangements Regulations 2018 are the most important law for a cycling holiday company. They apply throughout the UK. This section follows the GOV.UK guidance for businesses (July 2022), which we read in full, and links to it here. It is a summary, not a substitute for it or for legal advice.
Is your holiday a package?
A package is generally a combination of two or more different types of travel service for the same trip. The guidance names four types:
- carriage of passengers;
- accommodation;
- motor vehicle hire;
- "any other tourist service", which the guidance says includes guided tours, excursions and the rental of sports equipment.
Accommodation plus an "other tourist service" is a package where that service is advertised as, or otherwise is, an essential feature of the trip, or makes up a significant share of the value. The guidance gives a rule of thumb of 25% or more of the value. On a cycling holiday, the cycling is almost always the essential feature, so a guided holiday with accommodation is very likely a package, and the 25% figure is not a safe harbour.
Self-guided holidays are not automatically outside the rules. Rental of sports equipment is an "other tourist service". If you sell accommodation and bike hire together as a cycling holiday, the bikes are the point of the trip even if their share of the price is small. The guidance lists six ways services can be combined into a package:
- 1the services are combined in a single contract;
- 2they are bought in a single booking process, such as a "shopping basket" or dynamic package;
- 3they are sold at an inclusive or total price;
- 4they are advertised or sold as a "package" or under a similar term;
- 5the contract lets the traveller choose services later, as with a gift box;
- 6the services are booked through linked online booking processes within 24 hours, with the traveller’s data passed on.
Do you sell accommodation together with guiding or bike hire?
Guiding, excursions and sports equipment rental count as an "other tourist service".
Is the other service an essential feature of the trip, or 25% or more of the value?
A rule of thumb from the guidance. On a cycling holiday the cycling is almost always the essential feature.
Are the services combined in one of these six ways?
Single contract. Single booking process. Inclusive or total price. Advertised as a "package" or similar. Traveller chooses services later. Linked online booking within 24 hours with the traveller's data passed on.
Outcome
Assume it is a package. You are the organiser. Take advice if you think it is not.
What is exempt
A trip under 24 hours without overnight accommodation. Trips organised only occasionally, on a not-for-profit basis, for a limited group of travellers. A trading company running holidays will not meet those conditions.
What is exempt. The guidance excludes packages lasting under 24 hours without overnight accommodation, and trips organised only occasionally, on a not-for-profit basis, for a limited group of travellers. A trading company running holidays will not meet those conditions. A day tour under 24 hours with no overnight stay is outside the rules. A week with hotels is not. Business travel is exempt only where it is booked under a general agreement, such as a framework contract with a business travel agency. A company booking a team ride through your normal booking channel is covered. The Regulations apply to "travellers", a wider group than consumers.
Intrinsic services. The guidance treats some things as part of another service rather than separate: luggage transport as part of carriage of passengers, minor transport such as carriage within a guided tour, and transfers between a hotel and an airport or railway station. Whether a luggage-only transfer between hotels is separate is the question we raised in section 5. Ask your adviser.
Linked travel arrangements. If you do not sell a package but help a customer buy separate services, you may be arranging a "linked travel arrangement". These carry limited insolvency protection and a requirement to tell the customer clearly that they are not buying a package. Whether you are arranging one depends on how the services are sold. You cannot opt into one to avoid the package duties.
What an organiser must do
If you sell a package, you are usually the organiser, and you take on these duties.
- Information before the sale. You must give the traveller the Schedule 1 pre-contract information, including the main characteristics of the trip, your identity, the price, the payment arrangements and any minimum number of travellers with the time-limit for cancelling. You must also use the standard information form: Schedule 2 where you can use hyperlinks, Schedule 3 where you cannot or the contract is made by phone, and Schedule 4 for packages formed through linked online booking. The form includes the details of your insolvency protection. The key pre-contract information becomes part of the contract and cannot be changed without the traveller’s express agreement, so any correction must be made clearly before the contract is made.
- A contract or confirmation. You must give the traveller a contract or confirmation containing the required items, including the name of the insolvency protection entity and a contact for complaints.
- Tickets and vouchers. Provide these in good time before the trip starts.
- Suitability for reduced mobility. You must say before the sale whether the trip is generally suitable for people with reduced mobility, and give more precise information if a traveller asks, taking their needs into account. Make sure your staff know where the stairs, the steep hills and the gravel sections are.
- Liability for performance. You are liable for the proper performance of the travel services in the package, even if hotels, transfer firms or guides provided by someone else deliver them (regulation 15). You have a right of redress against the supplier afterwards (regulation 29), but that does not change your duty to the guest.
- Fixing a lack of conformity. If a service on the trip does not match the contract, you must put it right, unless that is impossible or disproportionately costly. If you do not, the traveller may be entitled to a price reduction and damages, and compensation can include loss of enjoyment. The only defence to a price reduction is that the traveller caused the problem. Defences to damages are that the fault was the traveller’s, was caused by a third party unconnected with the services in the package and was unforeseeable or unavoidable, or was due to unavoidable and extraordinary circumstances.
- Assistance. You must give appropriate assistance without delay to a traveller in difficulty (regulation 18). You may charge a reasonable fee, no more than your actual costs, only if the traveller caused the difficulty intentionally or through negligence.
Changes and cancellations
- Transfers. A traveller can transfer the contract to someone else who meets the conditions, with reasonable notice before the start. The guidance treats seven days or more as reasonable. You may charge the cost of the transfer, which must be reasonable and no more than you actually incur.
- Price changes. You can raise the price after booking only if the contract reserves the right, only for the reasons the Regulations allow (transport costs caused by fuel prices, taxes or fees imposed by third parties, and exchange rates), and no later than 20 days before the start. A rise of more than 8% lets the traveller cancel without a fee.
- Significant changes. If you must change a main characteristic of the trip significantly, the traveller can accept the change or terminate without a fee and get a refund. Refunds are due without undue delay and within 14 days.
- Traveller cancels. The traveller can terminate before the start, and you can charge an appropriate and justifiable termination fee. Standardised fees are allowed if they reflect the time before departure and the expected savings and income from reselling the place, and you must justify the fee if the traveller asks. There is no fee if unavoidable and extraordinary circumstances at the destination or its immediate vicinity significantly affect the trip. Many travellers and insurers use FCDO travel advice as a rule of thumb, and the guidance says it is a critical consideration but not the only test. Borderline cases are judged one by one.
- You cancel for low numbers. You can cancel only if the contract states the minimum number of travellers and you notify the traveller within the set period: no later than 20 days before the start for trips of more than six days, seven days for trips of two to six days and 48 hours for trips under two days. The traveller gets a full refund, but not compensation. You can also cancel if unavoidable and extraordinary circumstances prevent you from performing the package, if you notify the traveller without undue delay before the start. The guidance says borderline cases are judged one by one, so do not assume that bad weather qualifies.
Penalties
Failing to provide the required information, the contract or insolvency protection are criminal offences, enforced by local authority Trading Standards, with the guidance also naming the Department for the Economy in Northern Ireland and the CAA. The penalty is a fine, and there is no maximum in England and Wales. This is why we place so much weight on getting the paperwork right before you advertise.
If you plan to sell to customers in the EU, or to run holidays there, note that the guidance says there is no longer mutual recognition of insolvency protection regimes between the UK and the EU, and suggests taking advice from the authorities in the EU countries concerned.
08Insolvency protection
The Regulations require an organiser to have security for the refund of all payments made by travellers and, where the package includes carrying passengers, for their repatriation, if the organiser becomes insolvent. The cover must protect payments from the deposit onwards, so have it in place before you take the first one. Not having it is a criminal offence (section 7).
The guidance describes these routes.
- Bonding. A bond is provided through an approved body. The guidance lists ABTA and ABTOT, which also runs the Bonded Coach Holidays scheme, so check the current list before you choose. The bond lasts no more than 18 months. Regulation 21 sets its amount as the lesser of the most customer money you expect to hold at any one time for trips not yet performed, and a minimum sum of not less than 10% of the payments you expect to receive in the 12 months from the start of the bond. Where passengers are carried, the approved body may add an amount for repatriation. The guidance describes the same calculation with a 25% figure, and 10% where the body has a reserve fund or insurance. The Regulations require approved bodies to have one, so ask the body which figure applies to you.
- Insurance. A policy with an insurer authorised in the UK, Channel Islands or Isle of Man, covering the same ground.
- Trust account. The travellers’ payments are held by an independent trustee until the contract is performed. The organiser pays the costs. If passengers are carried, repatriation insurance is also needed.
- ATOL. If the package includes flights, it is protected through an Air Travel Organiser’s Licence from the CAA, which applies instead of the other routes (regulation 19(6)).
Insurance against the failure of one of your suppliers does not replace organiser insolvency cover. The guidance also says the cover must protect all payments between deposit and completion.
What a bond might look like
Suppose you sell ten guided departures a season at £12,000 each, so £120,000 of payments a year. Suppose the most customer money you would hold at any one time for trips not yet performed, with many departures booked and paid well ahead, is £70,000. As we read Regulation 21 and the guidance:
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| Figure | Amount |
|---|---|
| Most customer money held at any one time | £70,000 |
| 10% of expected payments in 12 months (£120,000) | £12,000 |
| Lesser of the two: the minimum sum under Regulation 21 | £12,000 |
| For comparison, the guidance’s 25% figure (£30,000) set against the same £70,000 | £30,000 |
This is an illustration of how the rule works, not a quote. The approved body can specify more, including a repatriation amount.
Why it matters in the cash-flow
On this example departure, guests’ money is in your account from 26 weeks before the start, and by ten weeks before you hold over £10,000 for a week nobody has yet ridden. That is the money insolvency protection exists to safeguard, and the reason it is a legal duty and not an optional extra. It is also why you should not treat the balance as spare cash. The line above is not profit. It still has to pay the guide, the van and the VAT, and most of it belongs to the trip.
09VAT and the Tour Operators’ Margin Scheme
Two VAT rules matter. The first applies to any business. The second applies to you because you resell travel.
The registration threshold. The UK VAT registration threshold is £90,000 of taxable turnover in any rolling 12-month period. You must register within 30 days of the end of the month in which you pass it. If you realise your taxable turnover will go over £90,000 in the next 30 days alone, you must register by the end of that 30-day period. The threshold counts all of the company’s taxable sales, not only holidays.
HMRC’s Notice 709/5 describes the Tour Operators’ Margin Scheme as the scheme for businesses that buy in and resell travel services as principal or undisclosed agent. If it applies you must use it, even if travel is not your main business, and it covers trips enjoyed in or outside the UK. The notice is here, and we read all of it. The main points follow.
- What counts. Margin scheme supplies always include accommodation, passenger transport, hire of a means of transport, trips or excursions, and tour guide services. Bought-in extras such as catering, admission tickets and sports facilities become margin supplies when you sell them on unaltered, for the guest’s direct benefit, as part of a package with accommodation or transport.
- VAT on the margin. You account for VAT only on your margin, the difference between what the guest pays and what you pay for the bought-in services. You cannot reclaim VAT on the margin-scheme services you buy in. You can reclaim VAT on overheads, and on purchases for your in-house supplies, under the normal rules.
- Rate. The margin is standard-rated if the tour is enjoyed in the UK, and zero-rated if it is outside the UK. A journey partly in and partly outside the UK is apportioned. If you run trips abroad, take advice on the VAT rules of the destination country as well.
- Registration turnover. For the registration threshold, your taxable turnover counts the margin on your TOMS supplies, not the full price, plus the full value of your other taxable sales, such as in-house supplies.
- Invoices. You cannot issue VAT invoices for TOMS sales. Invoices to other businesses must carry a TOMS reference.
- Tax points. The notice describes two methods. Under one, the tax point is the date of departure or first accommodation, whichever is earlier. Under the other, each payment of more than 20% of the selling price also creates a tax point. You choose a method and cannot change it without HMRC’s permission.
- Schemes you cannot use. The notice says that you cannot use the Cash Accounting Scheme for TOMS supplies, and that new businesses cannot use the Flat Rate Scheme for them. The Annual Accounting Scheme can be used.
- Year-end calculation. A year-end TOMS calculation is mandatory even when there is no profit, and must be done straight after your financial year end. If every in-house and margin supply you make is standard-rated, you must use a simplified calculation. If any is zero-rated or reduced-rated, you need the full market-value or cost-based calculation.
- What is not a cost. Indirect costs are excluded from TOMS costs, including brochures, advertising, inspection trips, office costs, professional fees, finance costs, card fees, foreign exchange and agent commission.
- The incidental exception. A narrow exception exists where you buy in no accommodation or passenger transport for resale, and the turnover you earn from reselling other bought-in margin-type supplies is no more than 1% of your total gross turnover. It will not suit a cycling holiday company that books hotels.
- First year. If you have only just registered for VAT or started making TOMS supplies, you work out a provisional percentage for the first financial year.
A worked example
Take the guided example from section 10: eight guests at £1,500, a total of £12,000. Suppose the accommodation and meals cost £4,960, the freelance guide £1,120 and the hired support van and driver £1,400. We treat these three as the bought-in margin supplies. That gives a margin of £4,520.
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| Step | Amount |
|---|---|
| Selling price (8 guests × £1,500) | £12,000 |
| Bought-in margin supplies | £7,480 |
| VAT-inclusive margin | £4,520 |
| VAT on the margin, using the simplified calculation (margin × 1/6) | £753 |
So VAT is about 6% of the selling price. Card fees, insurance, bike servicing and your own overheads are not deducted in this calculation, because HMRC excludes indirect costs. Chart 1 and the table in section 10 include this VAT as a cost.
This example assumes a UK tour where everything you sell is standard-rated, that the guide and the van are bought in rather than your own, and that the costs shown are what you actually pay, including any VAT charged to you. A guide who is not VAT-registered charges none. If you employ the guide or own the van, those are in-house supplies and the sums change. It is a per-departure illustration. HMRC’s calculation is made once a year across all your trips.
10Pricing and break-even
Price a holiday from the bottom up. For every guest, list what you pay for, add what you must set aside for VAT and overheads, and see what is left.
What a guest’s price pays for
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| Per guest | Guided, £1,500 | Self-guided, £950 |
|---|---|---|
| Bought-in margin supplies | £935 | £590 |
| VAT on the margin (÷ 6) | £94 | £60 |
| Bikes, insurance, admin, support and card fees | £153 | £194 |
| Left over | £318 (21%) | £106 (11%) |
A guided week looks better per guest, but it depends on filling the departure. The guide and the van are fixed costs per departure: in the example, a guide at £160 and a van and driver at £200 a day for seven days. The self-guided week has no fixed per-departure cost, but at £106 a guest it takes volume, and 100 guests make £10,600 before marketing and your own pay.
Break-even and your minimum
The departure breaks even at four guests and loses money at three. That matters for the minimum you write into the contract. If you set a minimum of three, you will sometimes run a trip at a loss. If you set it at four, you will run it at about break-even, with no cushion. You may prefer a higher minimum, so that a departure that goes ahead has a reasonable margin. Decide your minimum from your own sums, state it in the contract, and remember that you can only cancel for low numbers within the notice periods in section 7. For a holiday of more than six days, that is no later than 20 days before the start.
How sensitive is it?
Profit on one departure in the guided example, at different numbers of guests:
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| Change | 4 guests | 6 guests | 8 guests |
|---|---|---|---|
| Example as shown | £223 | £1,385 | £2,547 |
| Price 10% lower (£1,350) | -£268 | £648 | £1,565 |
| Price 10% higher (£1,650) | £714 | £2,122 | £3,529 |
| Accommodation 10% dearer | £17 | £1,075 | £2,133 |
| Guide and van 20% dearer | -£197 | £965 | £2,127 |
A 10% price cut removes 10% of your revenue, which is a much bigger share of your profit. If your costs per guest do not fall, the whole discount comes off the bottom line. That is why discounting to fill a departure is dangerous, and why it is worth knowing your minimum.
Pricing rules to respect
- Show the full price. Since 6 April 2025, drip pricing, where mandatory fees appear only late in the booking, and fake or concealed incentivised reviews are banned under the Digital Markets, Competition and Consumers Act 2024. The CMA’s guidance (CMA207) explains the rules, and the CMA can fine up to 10% of global turnover. Show the price guests will pay, with mandatory charges included, from the start.
- No card surcharges. Since 13 January 2018, you cannot surcharge consumer debit and credit cards, under the Consumer Rights (Payment Surcharges) Regulations 2012 as amended. Trading Standards guidance (the Business Companion) says a booking or administration fee is allowed only if it is the same whatever payment method is used. Commercial cards sit outside the ban, though any surcharge on other payment methods must reflect your actual cost. Build the cost of card fees into the price instead.
- Single supplements and extras. State them up front. A guest who sees £1,500 and is then charged £300 for a single room will feel misled, and may have a claim.
- What the price includes. List it. Include the hire of the bike, meals, transfers, the guide and any tips or entry fees expected.
11Deposits, balances and getting paid
Choose a deposit and balance schedule that fits your own cash calendar. In the example, guests pay 20% at booking and the balance 10 weeks before the start, while the hotels want 30% at 20 weeks and the rest two weeks before. The result is the funding picture in section 8. If you take a smaller deposit than you pay a hotel, you fund the gap. If you take a larger one, you hold more guest money for longer, and your insolvency cover must be sized for it.
Write it into the contract. The deposit, the balance date, what happens to a late payer, the cancellation charges by date, and the refund timing. If the guest terminates, an appropriate and justifiable termination fee is allowed, so set a schedule that reflects what you will lose.
Mind the VAT tax points. Under one of the two TOMS methods, each payment of more than 20% of the selling price creates a tax point. A deposit of exactly 20% does not on its own, but the next payment will. You choose a method and cannot change it freely, so ask your accountant how your deposit level interacts with it before you take the first one.
Refunds. Where a refund is due, the Regulations require it without undue delay and within 14 days. A payment system that refunds quickly and automatically makes that easier.
Keep card fees in the price. A 1.5% fee on £12,000 is £180. You cannot surcharge, so price for it. Card fees are excluded from TOMS costs.
Keep the money straight. Money guests have paid for a trip that has not yet run is not working capital. A payment set-up where guests’ payments settle straight into your own account makes the arithmetic visible. Use a separate account or a clear ledger so you can see what is held for which trip, and talk to your adviser about the effect on whichever protection route you choose.
12Guest information, safety and health data
A multi-day holiday needs more information about guests than a day hire, and some of it is sensitive.
Collect what you need. Names, contact details, an emergency contact, bike measurements, riding ability and experience, dietary needs, room preferences, travel plans and anything the guest tells you about mobility or health that affects the trip. Do not collect what you will not use.
Health information is special category data. Under UK GDPR, health data needs both a lawful basis under Article 6 and a condition under Article 9, and the ICO suggests starting by considering explicit consent. Other conditions exist, so choose and record the one that fits. Say why you are collecting it, who sees it (the guide, not every hotel), how long you keep it and how it is deleted. The ICO has guidance on special category data.
Suitability information. The Regulations require you to say, before booking, whether the trip is generally suitable for people with reduced mobility, and to give more specific information if a traveller asks. Treat accessibility as a product decision, not a late add-on.
Waivers. A waiver or notice cannot exclude or restrict your liability for death or personal injury caused by your negligence. Under the Consumer Rights Act 2015, section 65(1) bars a trader from doing this by a contract term or a notice. Section 65(2) adds that a guest is not taken to have voluntarily accepted a risk just because they signed or knew about the term or notice. A waiver is still useful for recording what the guest understands and accepts about the risks of cycling, but it is not a shield. Take advice on the wording. See our guide to waivers.
Safety on the road. Brief every group on the first evening and again each morning. Cover the route, the weather, the stops, hand signals, group riding, road positioning and what to do in an emergency. As good practice, make sure the guide carries first aid supplies and holds a current outdoor first aid qualification, and that you have an incident log and a procedure for contacting emergency services and the guest’s emergency contact.
Keep records. Keep the information you gave, the contract and the confirmation, the waiver, the briefing log, bike checks and incident reports. If something goes wrong, the records are your evidence of what was agreed and done.
13A multi-day cycling tour reservation system
A day tour is hard to book. A holiday is much harder, because it is a chain of dependent commitments: an itinerary of days, rooms at each stop, a headcount shared by the guide and the van, bikes committed for a whole window and payments spread over months. A general booking tool that knows only about time slots will make you rebuild all of that by hand in a spreadsheet. Whether you are searching for a multi day cycling tour reservation system, multi day cycling tour booking software or cycling holiday company UK software, the test is the same: does it understand a holiday, or only a booking slot?
What a multi-day cycling tour booking system needs to do
- Build the itinerary once. Riding days, rest days and the stops in order, sold as one holiday, in one checkout.
- Attach the accommodation. Rooms held against the itinerary, whether you own the property or book hotels, and priced by season or at a flat rate. The system should know what happens if a room is not available on a night.
- Handle levels on the same trip. An easier and a harder option running together, without double-booking the van.
- Share the headcount. Guide, van and shuttle capacity are checked against the same group.
- Share the fleet. One count of the bikes, so a bike on a holiday is out of the hire pool for the whole window.
- State what is included. A "what’s included" list that is generated from what is actually in the booking and does not go stale.
- Payments over time. A deposit now and a balance later, with refunds that follow the contract.
- Minimum and maximum numbers. An alert before your own deadline, and a clear set of choices when a departure falls short.
- Paperwork. Health and rider information collected with consent, waivers recorded with a trail, and confirmation documents that carry the information the Regulations require.
- Compliance. Some gate, even a simple one, so a package cannot take real bookings until you have confirmed the duties in section 7.
- Your data. Export of bookings and customers, and no fee for leaving.
For how to compare suppliers on these points, with a full question list and a trial script, see our UK buyer’s guide to bike rental software. The method works for holidays too.
Self-guided cycling tour scheduling software
Self-guided trips need their own questions of any self guided cycling tour scheduling software, because the product is a chain of nights, not a departure with a guide.
- Can a guest choose any start date, and does the system check every night of the chain against room availability?
- Does it commit bikes across the whole window, and release them after?
- Can it schedule luggage transfers against each night’s route?
- Can it send the route documents and the emergency contact at the right time?
- How does it handle a change to one night once the chain is booked?
- Is there a way to see, on one screen, who is where tonight, in case of an incident?
If a supplier cannot answer these, it will cost you in spreadsheets.
How RideLoop handles it
How RideLoop handles it
We build RideLoop, so weigh this accordingly. This is what our Holidays page describes, read on 7 October 2026.
- A day-by-day itinerary with riding days and rest days, built once and sold as one holiday.
- Accommodation attached to the holiday, either your own property priced by season or at a flat rate, or a curated list of nearby places, with rooms held against the itinerary.
- Easy and Advanced skill levels on the same trip.
- A live "what’s included" list, generated from what is actually in the booking.
- One shared fleet. A bike committed to a holiday leaves the hire pool for the whole window, and holiday and tour guests share headcount and shuttle groups.
- Ride Guarantee, which watches the forecast and offers a free move to another date. If the guest accepts, the whole party moves together, with rooms, guides and committed bikes, and nothing is rebooked by hand.
- A self-certification step: before a package can take real bookings, you acknowledge your compliance duties. It is your own statement, not a review by us, and it does not replace advice.
On our Tours page, a departure exists from the first booking. The headcount is watched against your minimum with escalating alerts, and you choose: run anyway, offer a free reschedule, or cancel with automatic refunds. Nothing happens on its own. Guides and vans are allocated with skill and capacity checked, and the same guide cannot be double-booked. Elsewhere on our site, we say that payments settle to your own Stripe account, and that bookings and customers export as CSV, with no contract and no exit fee.
What we don’t do yet
Our Holidays page does not mention self-guided trips or scheduled balance payments, so ask us before assuming either. We do not have an accounting integration. You can see how RideLoop handles holidays, look at tours or book a walkthrough.
14Running the week: weather, low numbers and changes
Before the week. Send the final documents in good time: the itinerary, the route files, the hotel details, the rooming list, the emergency contact and the information on what to bring. Confirm bikes, fitting, the van, the hotels and the guide briefing. Check the forecast.
Day one. Meet guests, check in the bikes, fit and test them, brief the group and ride a short first stage. A calm, well-organised first afternoon sets the tone for the week.
Each day. Brief at breakfast. Check weather and route status. Count the group at each stop. Keep the van within reach. Log anything that goes wrong, even if it was fixed.
When something goes wrong. You have a duty to put a lack of conformity right and to assist a guest in difficulty (section 7). A sensible response is fast, personal and recorded: fix it on the day, offer an alternative, log what you did and, afterwards, tell the guest what you have done. If you have to pay for a replacement room or a taxi, keep the receipt, because you may be able to recover it from the supplier.
Weather. Decide your weather policy before your first booking and put it in the terms. Unlike a day tour, you cannot simply rebook the whole week. Know which days you can drop or shorten, what you offer for a day lost to storms, and what you do if the whole week is unrideable. Do not promise a refund you cannot make. See our posts on a rain policy and a weather guarantee.
Low numbers. Your decision date is set by the law and by the hotels. For a holiday of more than six days you must tell guests no later than 20 days before the start, and only if the minimum was in the contract. In the example in section 8, the hotel balances fall due two weeks before the start, so the 20-day deadline comes first. But the £1,488 of hotel deposits was paid 20 weeks out, and whether you can get any of it back depends on the release date you agreed (section 3). Put your own release dates next to your own decision date before you sign. Read more in our post on minimum numbers.
A guest cancels. Follow your contract and the rules: an appropriate and justifiable fee, or none where unavoidable and extraordinary circumstances significantly affect the trip, and a refund within 14 days when one is due.
You must change the trip. If a hotel closes or a route is blocked, you may have to change a main characteristic. If the change is significant, the guest can accept it or cancel for a refund without a fee, so tell them clearly and quickly and give them the choice.
15A twelve-month launch plan
This assumes you start in the autumn and aim to run your first departures the following summer. Compress or stretch it to suit.
- Months 1–2Decide and ride
- Choose your first product: one route, one level, guided or self-guided.
- Ride the route and write the ride times and the plan B.
- Draw up your first break-even from section 10, with your own numbers.
- Take advice from a solicitor and an accountant who know travel, before you advertise anything.
- Months 3–4Protect and insure
- Choose your insolvency protection route (section 8) and get quotes.
- Get insurance in writing (section 6), including vehicle cover and employers' liability if you will employ anyone.
- Decide whether you are VAT-registered, whether TOMS applies and who will do the year-end calculation.
- Check vehicle licensing (section 5).
- Months 5–6Contract and build
- Agree the hotel terms in writing, with release dates and balance dates.
- Write your terms, the pre-contract information using the standard information form, and your contract or confirmation.
- Choose and set up a booking system that can sell the product.
- Recruit and train guides and drivers, and test first aid cover.
- Months 7–8Test
- Run a full test week with friendly guests and an outside guide.
- Fix what breaks. Update the itinerary, the briefing and the packing list.
- Build the web page, photos and a clear "what's included" list.
- Months 9–10Open for booking
- Confirm that insolvency protection is in place before you take a payment.
- Publish dates and prices, with the full price shown.
- Start with a small number of departures and a small team.
- Months 11–12Run and learn
- Run your first departures. Log everything.
- Ask each guest for a review, honestly, and respond to problems.
- Check the real cost of each departure against your model.
- Re-check the rules in this guide and set your first year-end TOMS calculation in motion.
16Mistakes worth avoiding
- 1Selling before the protection is in place. Failing to have insolvency protection for a package is a criminal offence.
- 2Assuming self-guided means unregulated. If it is accommodation plus bike hire at one price, it is very likely a package.
- 3Treating guests’ balances as spare cash. The money is held for a trip that has not run.
- 4Paying hotels too early, or on terms you have not read. Deposits and release dates need to match your own cancellation deadline.
- 5Setting the minimum without doing the sums. A departure that runs at three guests loses money in our example.
- 6Discounting to fill a departure. A 10% price cut cost far more than 10% of profit in the sensitivity table.
- 7Forgetting TOMS. If it applies, you cannot reclaim VAT on bought-in supplies, and a year-end calculation is mandatory.
- 8Surcharging cards. It is banned for consumer cards.
- 9Hiding fees. Drip pricing is banned.
- 10Under-describing the trip. The pre-contract information is binding, and "I thought dinner was included" is a lack-of-conformity claim.
- 11No vehicle plan. The van is the single point of failure.
- 12Skipping the test week. Run it before a paying guest does.
- 13Booking by spreadsheet. A chain of rooms, bikes, guides and payments will outgrow it fast.
17Questions people ask
How do I run a cycling holiday company in the UK?
Decide what you sell, design and test the itinerary, agree the accommodation terms, arrange bikes, vehicles and insurance, put insolvency protection in place before you sell, set up VAT and the Tour Operators’ Margin Scheme, price from your costs and a break-even, and take bookings with a system built for multi-day trips. The sections above take each in turn.
Is a cycling holiday a package holiday?
A holiday that combines accommodation with guiding or bike hire is very likely a package under the Package Travel and Linked Travel Arrangements Regulations 2018, when that service is an essential feature of the trip or makes up a significant share of its value. The guidance’s rule of thumb is 25% or more. How you sell it also matters. A single contract, a single booking process or an inclusive price can create a package. Take advice if you are not sure.
Is a self-guided cycling holiday a package?
Often, yes. Rental of sports equipment counts as an "other tourist service". If you sell accommodation and bikes together as a cycling holiday, assume it is a package, and take advice if you think it is not.
Do I need to be bonded?
If you sell packages, you need insolvency protection. The guidance describes bonding through an approved body, insurance with an authorised insurer, or a trust account. If flights are included, it is protected through an ATOL instead. Check the current approved bodies and what each requires.
Do I need ATOL?
Only if the package includes flights. A UK holiday with no flights does not need one, but a holiday that includes a flight does, from the CAA.
What happens if I do not have insolvency protection?
Failing to provide it is a criminal offence, enforced by local authority Trading Standards. The penalty is a fine with no maximum in England and Wales.
Do I need to charge VAT on a cycling holiday?
If you are VAT-registered and buy in services to resell, you probably need to use the Tour Operators’ Margin Scheme, and account for VAT on your margin. If you provide everything from your own resources, normal rules apply to those supplies. Ask an accountant who knows travel before you set prices.
Can I charge extra for paying by card?
No. Since 13 January 2018, you cannot surcharge consumer debit and credit cards. Commercial cards sit outside the ban.
Can I cancel a holiday if too few people book?
Only if the contract states the minimum number, and you give notice within the set periods: no later than 20 days before the start for trips of more than six days. The guest gets a full refund.
Can I put the price up after someone has booked?
Only if the contract reserves the right, only for the reasons the Regulations allow (transport costs caused by fuel prices, taxes or fees imposed by third parties, and exchange rates), and no later than 20 days before the start. A rise of more than 8% lets the guest cancel without a fee.
Do I need a licence for the support van?
It depends on the vehicle and what it carries. A standard van of 3.5 tonnes or less used only in Great Britain does not normally need a goods vehicle operator licence. Carrying passengers for hire or reward may need a private hire or PSV licence. Check with your licensing authority.
How many guests should a departure have?
It depends on your guide, your van and the rooms you can get. Work out your break-even from your own costs, and keep a maximum that your van and guide can handle.
Can I run e-bike holidays?
Yes. The same e-bike rules apply as for hire: a 250 watt motor, assistance that stops at 15.5 mph, and riders 14 or over on public roads and cycle paths. Plan for charging at every stop.
Should I start with day tours or holidays?
Many new operators start with day tours because they are simpler to run. A trip under 24 hours with no overnight accommodation is generally outside the package rules, but check how you sell it, and compare insurance quotes for both. Add multi-day holidays once you know your routes, guides and numbers. Our guide to starting a cycling tour business covers that route.
What software do I need?
Something that handles itineraries, rooms, a shared fleet, headcount and payments over time, with a clear way to see minimum numbers. See section 13 and our buyer’s guide.
Can I run holidays and bike rental together?
Yes, and some businesses do. You need one fleet count shared across both, or you will promise the same bike twice. See our guide to starting a bike rental business.
Where to go from here
A good cycling holiday company is mostly unglamorous work done early: the contract with the hotels, the protection for guests’ money, the VAT method and a break-even that survives a bad week. Do those, and the riding takes care of itself.
If you are earlier on the road, read our guide to starting a cycling tour business in the UK. If you would like one place to build itineraries, hold rooms and bikes, and take payments, you can see how RideLoop handles holidays or book a walkthrough.
Bruno Mota
Founder and CEO, Motacycles Ltd
Bruno runs Motacycles, a bike shop and workshop, and builds RideLoop on the same counter. More about the team
