Business Overview

Travelers often find themselves without an easy way to tote around the luggage that they need on a trip. While luggage can be left in a hotel room, this frequently isn’t an option before check-in or after check-out -- especially as more and more people opt for non-traditional accommodations that don’t always provide the amenities hotels do. Additionally, luggage can be safely left in a locked car, but many travelers in major cities don’t rent cars.

Luggage storage businesses give travelers who don’t have alternative options a way to safely stow their luggage so that they don’t have to carry it with them.

Who is this business right for?

Anyone who is reasonably fit and enjoys interacting with people may enjoy running a luggage storage business. Business owners occasionally need to lift heavy pieces of luggage, so it helps to be in good physical shape. Some of the customers business owners meet will have questions about the area (e.g. where to get lunch or where the nearest public transit stop is). Thus, a natural ability to converse with different people is helpful.

What happens during a typical day at a luggage storage business?

A typical day at a luggage storage business involves:

  • Accepting luggage from customers
  • Storing customers’ luggage
  • Handing luggage back to customers

A tag or identification system is normally used to track which luggage belongs to which customer. Identifying information is taken when luggage is dropped off and confirmed when customers pick up their luggage.

What is the target market?

The target market for a luggage storage business are travelers who don’t have a place to stow their luggage. These travelers may be:

  • People who are touring a city for one day
  • Job applicants who fly into a city for an interview
  • Travelers who are staying at an Airbnb or similar setup
  • Researchers who are in a city for a short amount of time
  • Consultants who are in a city to meet a client for a few hours

How does a luggage storage business make money?

A luggage storage business makes money by charging customers for storing their luggage. Fees are usually based on how many pieces of luggage are being stored and how long they’re stored.

What is the growth potential for a luggage storage business?

Most luggage storage businesses have a few locations throughout a city. For example, Vertoe has 10 locations in New York City. It’s possible, however, for a successful business to expand into other cities. City Copilot, another business that’s based in New York City, is planning on expanding to other cities throughout the world.