How To Start A Travel Towel Business in 2023 (Step by Step)

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The travel towel business has become very popular over recent years. People love traveling because they can enjoy their vacation without having to worry about carrying heavy luggage or spending too much time packing. They also don’t have to worry about bringing extra clothes or toiletries along with them.

Starting a travel towel business isn’t too complicated. All you need is some creativity and determination. The good thing about travel towels is that they sell themselves. Once you get started, you won’t want to stop. There are many ways to earn money from a travel towel business, such as selling wholesale, retail, or even renting out your towels. Read this article to learn more about how to start a travel towel business

how to start a travel towel business

What is a Travel Towel?

A travel towel is a piece of towel that we usually carry while traveling. If you wonder if there is a difference between a normal household towel and a travel towel, yes, there is a small difference. Travel towels are generally light in weight and made of a different material that is softer and easily foldable. 

Towels are the most essential things people carry while they travel. They have to be light-weighted and easy to fit in your backpack. Hence, the travel towels are made differently. 

Types of Travel Towels

Travel towels can be of many types. Based on the material used in towels, they can be differentiated. The materials can be Microfibre, Bamboo, Turkish Cotton, and Linen. Among these, microfibre is most commonly used. Turkish Cotton is the next one in line that most people like to buy. Both these materials are soft, and towels made of these materials are easily foldable. 

Why a Travel Towel Business

There can be several reasons why one should start a travel towel business. In general, towels are the most essential thing in every household. For a traveler, it is even more essential. Hence, having a travel towel business will always be a profitable one. 

The average traveler spends $1,000 per year on toiletries, which means that you could easily sell $100 worth of towels each month. If you decide to start a travel towel business, here are some tips:

  1. Choose a product that has high demand among travelers.
  2. Find out what other businesses are selling similar items.
  3. Determine how much profit you need to cover costs.
  4. Start small and build up from there.

What Do You Need to Start a Travel Towel Business

If you want to start a travel towel business, you need a few things beforehand. Following are the things you need to start a travel towel business, 

  • Market Research: It is very important to research the market before you start on anything. The competitors, market price, and other market analysis. It helps you to anticipate the future of your business. 
  • Decide whether to Manufacture or Buy Products: You can either manufacture the products or can buy them at the wholesale price. You need to decide on that before you start your business.
  • Decide the Material: If you are manufacturing towels, then you must decide what type of material you want to sell. On the other hand, if you are selling ready-made towels, then you can sell diverse materials. 
  • Business Plan: A solid business plan is required. This business plan includes business structure, estimated cost, funding options, business accounts, and other related matters. Business plans help entrepreneurs to anticipate the future market.

How to Start a Travel Towel Business

Travel towels are a popular item to sell during the travel season. They’re also a fun product to make yourself. Here’s how to start a travel towel business.

Step 1: Choose a Product Line

Choose a product line that you enjoy making and that will appeal to travelers. For example, you could choose a travel towel made from terry cloth fabric. Or, you could choose a towel made from vintage fabrics like linen or cotton.

Step 2: Select a Fabric

You have probably made up your mind about which fabric you’re selecting. However, select a fabric that appeals to you. Cotton is a classic choice, but you may prefer something softer, like silk or microfiber. Microfibre is one of the most in-demand fabrics for travel towels.

Step 3: Determine Your Pricing Strategy

Pricing strategy depends on several factors, including the type of fabric used, the size of the towel, and the number of towels you plan to produce. For example, if you decide to go with a terrycloth towel, you’ll probably charge $20-$25 per towel. But if you choose a cotton towel, you may charge $40-$50 per towel. Besides, you need to check competitors’ prices before you set any price for your products.

Step 4: Register Your Business

The next step is to register your business with the Secretary of State. Before registering your business, you must have a name for your business. Your travel towel business can be registered as an LLC, a Sole Proprietorship, a Corporation, and a Partnership if you have a partner with you. 

A single-member LLC is similar to a sole proprietorship but less complicated. If you want to start an LLC, then you must follow the simple steps. If you want to know more about LLCs and their guidelines, explore LLCBuddy

Step 5: Create a Website

Create a website that showcases your products and allows customers to purchase them online. Include images of your products so buyers can envision exactly what they’d receive when purchasing yours. Also, make sure to provide payment gateways for online purchases. Additionally, link your social media pages with your website, and provide contact information. 

Step 6: Get Started

You are all set to start your business. Start selling your products. Sell your products directly to consumers via Amazon, eBay, Etsy, or another marketplace. You can sell your products offline as well. It is easier to sell your products online than in offline stores. 

Step 7: Promote Your Products

Promoting your products requires some creativity. You can advertise your products via email newsletters, Facebook ads, Google AdWords, and Pinterest.

Step 8: Grow Your Business

Grow your business by increasing production capacity and expanding distribution networks. Social media promotions and online selling help you grow your business more than offline stores. Offline stores cover only local buyers, whereas online and social media stores cover buyers from across the border. 

After Setting up Your Travel Towel Business

After your business is registered, you must get a few things. Following are the points to note after you set up your business, 

  • Get permits and licenses to run your travel towel business. Permits and proper licenses are very important for any business to run it legally. Failing to obtain permits on time can lead to heavy penalties.
  • Get insurance and coverage for your employees. To protect your business and professional assets, it is necessary to get your business insured. Besides, if your company has employees, you must get employee coverage. 
  • Get business bank accounts, business tax accounts, and other business accounting tools. It is wiser to separate personal and professional accounts to check business expenses and tax filing.
  • File an Annual Report. Some states do not have annual reports. Instead, businesses have to file Franchise Tax Reports. For example, if you start an LLC in Texas or you have an LLC in California, you will be paying an annual Franchise Tax. Whereas, for an LLC in Florida or an LLC in Wyoming, there is no tax to pay. Hence, they have to file an annual report. 

Cost to Start a Travel Towel Business

The cost of starting a travel towel business starts from $80 and can go up to $70,000. Based on the type of business you will start, the cost varies. The average cost is $30,000. If you start an offline store for your travel towel business, you might need additional store maintaining and designing costs. For your online store, an eCommerce website will be enough. No additional cost require. 

There is a state fee to register your business. If you’re going to register your business as an LLC, then it would cost less than other structures of business in some states. Based on the state, the fee will vary. After registering your business, there will be maintenance costs such as annual reports, tax reports, and others. Also, businesses must pay business taxes (except for an LLC) and sales taxes. In states like Texas and California, there will be Franchise Tax for LLCs. Besides, you have a corporate tax for other business structures. 

Revenue From a Travel Towel Business

Travel towels are the kind of products that can be sold around the year if you want. Even when you’re on a business tour, a towel is one thing you always need. If you plan to sell a high-quality towel for travel purposes, it might give you a high-profit margin for each product. However, you might not get a lot of buyers. On the other hand, if you sell mid-quality products at a mediocre price, it might bring more sales, leading to more profit. 

The average price of a travel towel made of microfibre is $25 (approx). The price depends on the quality and the size of the product you’re selling. On average, a towel seller makes around 20% profit. This is just an estimated number and can be changed over a period of time; based on the type of business, location, quality, and material. 


How to start a travel towel company?

The first step would be to find out what kind of towels travelers use. Then, create a website where customers can browse through different types of towels and choose which one they want. Finally, offer free shipping for orders above $100.

How to make money from selling towels online?

Selling towels online is easy and fun. All you need is a website, a towel design, and some towels. The best way to sell towels online is through Amazon FBA. This means that you ship directly to Amazon, which takes care of all the fulfillment processes for you. Once you start making sales, you can hire someone to help you scale up your business.

Where to find wholesale suppliers?

Wholesale suppliers for travel towels are available online. Most of them offer high-quality travel towels at affordable prices. Apart from online, you can search offline stores that sell travel gear at wholesale prices.

Should I have an online store or a physical shop?

Having both options is great because you can choose which one works best for you. If you decide to go with an eCommerce site, then you need to be able to sell items quickly and efficiently. This means having a high volume of sales per hour. On the other hand, if you want to open a brick-and-mortar location, then you should consider hiring someone who has experience running retail stores.

What kind of marketing strategy should I use?

The best way to start a travel towel business is to create a website where customers can order towels. Then, you need to find ways to market your site to potential customers. There are several different types of marketing strategies available to you, such as search engine optimization, email marketing, display ads, affiliate programs, etc.

Why Start Travel Towel Business is So Important

Gone are the days when travelers would carry bulky, heavy towels in their already brimming suitcases. Today, travelers are seeking lightweight, compact, and quick-drying alternatives that not only save precious space but also provide the comfort and functionality of a traditional towel. Enter the travel towel – a soft, absorbent, and durable solution designed specifically to meet the unique requirements of the modern explorers.

Travel towels offer numerous advantages that set them apart from their traditional counterparts. Firstly, they are designed with space-saving in mind. These towels are cleverly crafted to fold and pack easily, occupying a fraction of the space compared to regular towels. Whether it is a backpacking adventure or a soothing beach escape, travelers can now equip themselves with a compact towel that leaves ample room for other necessities while reducing the weight on their shoulders.

Moreover, travel towels are made from innovative materials that enhance their functionality and versatility. Most travel towels are infused with advanced moisture-wicking technology, enabling them to absorb water swiftly and dry rapidly. This feature proves invaluable, particularly in humid environments or during long trips where frequent towel use and washing might not be viable. As a result, travelers can rest assured knowing their towel will remain fresh and usable even after several uses.

Another compelling reason why the travel towel business is of paramount importance today is its eco-friendly nature. With sustainability becoming an increasingly crucial aspect in every industry, travel towels are no exception. Most travel towels are crafted using recycled or sustainable materials, reducing the ecological footprint associated with their production. By choosing a travel towel, consumers are not only embracing a convenient product but also contributing to the preservation of our planet.

One often overlooked aspect of travel towels is their ability to enhance personal hygiene while on the road. Public restrooms, shared accommodations, or even unexpected outdoor ventures can present hygiene challenges that require quick and efficient solutions. Travel towels offer the perfect on-the-go hygiene solution, ensuring travelers always have a clean and reliable tool at hand. From drying hands to wiping surfaces, these towels are true companions, promoting cleanliness and well-being in unfamiliar surroundings.

The travel towel business is gaining momentum worldwide as savvy entrepreneurs identify the market’s needs and respond with ingenuity and innovation. Whether it is through imaginative designs, eco-conscious materials, or practical features, these businesses understand the importance of catering to the ever-evolving demands of the modern traveler. By offering a lightweight, compact, and multipurpose product that simplifies travelers’ lives, the travel towel industry plays a vital role in shaping the way we experience our journeys.

In conclusion, the emergence of the travel towel business is not a coincidence but a response to the changing needs and lifestyle of today’s travelers. These innovative towels have redefined the concept of convenience and practicality, allowing individuals to embrace a new level of efficiency and comfort while exploring the world. As the travel industry continues to flourish, the importance of the travel towel business will only grow, providing travelers with indispensable tools and the freedom to roam with ease.


Starting a travel towel business is easier than many people think. You don’t necessarily need any special skills or knowledge to do this. It’s also very profitable. Follow the steps mentioned in this article, and you’ll see how easy it is to start a travel towel service. If you have any queries or want to share your experience with us, please comment below and connect with us.

About Author & Editorial Staff

Steve Goldstein, founder of LLCBuddy, is a specialist in corporate formations, dedicated to guiding entrepreneurs and small business owners through the LLC process. LLCBuddy provides a wealth of streamlined resources such as guides, articles, and FAQs, making LLC establishment seamless. The diligent editorial staff makes sure content is accurate, up-to-date information on topics like state-specific requirements, registered agents, and compliance. Steve's enthusiasm for entrepreneurship makes LLCBuddy an essential and trustworthy resource for launching and running an LLC.

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