Startup cost
$25k–$250k
TRUiC Business Ideas
How to Start a Luggage Storage Business
Decision Snapshot
Luggage Storage
Idea Score
41
Profit margin
6%
Break-even
4 mo–12 mo
Time to launch
12 wk–36 wk
Demand trend
Stable
5-yr failure rate
—
Capital intensity
Very high
Time commitment
Flexible
Part 1 - How to start a Luggage Storage business - Background
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.
Our guide is in 3 parts:
- Part 1 - How to start a Luggage Storage business - Background
- Part 2 - Our planner tool to see if this idea is the right fit for you
- Part 3 - Action plan to get started
What are the costs involved in opening a luggage storage business?
The startup costs involved with opening a luggage storage business are minimal. The biggest upfront expenses include:
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Leasing a commercial space
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Purchasing racks for storing luggage
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Procuring insurance for stored luggage
Business owners who want to keep their startup expenses llow may be tempted to skimp on these expenses, but doing so can be detrimental:
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Leasing an out-of-the way space to save on rent makes it harder for customers to bring their luggage to the location — and toting luggage around is precisely what business owners are trying to avoid.
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Forgoing racks limits how much luggage a business can accept without stacking luggage on top of itself, which can lead to damage
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Not having insurance may deter customers from leaving their luggage with a business
Instead, business owners who have limited capital should start by leasing a small space in a high-traffic area. This will help them attract customers while keeping their lease payments as low as possible. With a little creativity, a lot of luggage can be housed in even a small space.
What are the ongoing expenses for a luggage storage business?
The ongoing expenses for a luggage storage business are manageable. They include rent, utility payments, insurance premiums and employees’ salaries.
Who 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:
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People who are touring a city for one day
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Job applicants who fly into a city for an interview
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Travelers who are staying at an Airbnb or similar setup
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Researchers who are in a city for a short amount of time
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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.
How much can you charge customers?
Luggage storage businesses generally charge around $10.00 per day for each piece of luggage stowed. Bounce charges $5.90 per day, Free Your Arms charges $11.99 per day, and Vertoe charges $6.95 per day. Some businesses offer discounts for long-term storage or storing several items with them.
Fees for picking up and dropping off luggage may run anywhere from $34.99 to $79, with some prices even higher.
How much profit can a luggage storage business make?
A busy luggage storage business can earn a significant profit. At $10 per item per day, a business that stores about 27 items per day can bring in six figures per year. This doesn’t include additional payments for pick-up or drop-off services.
How can you make your business more profitable?
A luggage storage business can increase its revenue by offering additional services that travelers may need. These services may include package acceptance, key exchanges, copy, print and fax options, and concierge services.
Day-to-Day and Growth
What happens during a typical day at a luggage storage business?
A typical day at a luggage storage business involves:
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Accepting luggage from customers
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Storing customers’ luggage
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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 are some skills and experiences that will help you build a successful luggage storage business?
Successfully running a luggage storage business requires a good understanding of basic business principles. Business owners who don’t have prior experience owning a business may want to take one or more business courses from a local community college. Alternatively, there are many online business courses offered on platforms like Coursera and Open Culture.
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. Bounce, which originally began in just New York City, has since expanded to over 10,000 locations worldwide.
What are some insider tips for jump starting a luggage storage business?
Offering to pick-up and drop-off customers’ luggage at their location can greatly increase a business’ potential customer base. Customers who have lots of luggage or are on tight schedules may specifically look for a business that will come to their location. As a bonus, businesses are usually able to charge an additional fee for these services.
How and when to build a team
Many luggage storage businesses hire a small team of employees as soon as they open. Customers may need to drop off or pick up their luggage at any time of the day or night. Having a team of employees makes it possible to extend the hours when a business is open.
Part 2 - Is a Luggage Storage business the right fit for you?
Business Evaluation & Strategy Tool
We'll walk you through the four pillars every business needs: Points of Leverage, Marketing Strategy, Financial Model, and Personal Compatibility. At the end you'll see a personalized report and your action plan below will be tailored to your answers.
Step 1 of 4 — Points of Leverage
Every viable business has natural advantages. Below are common leverage points across four categories. Pick the ones that apply to your Luggage Storage business. We've pre-suggested a few based on your idea — review and adjust.
Step 2 of 4 — Marketing Strategy
Without a way to connect with customers, even great businesses fail. Pick the channels you plan to use to reach your customers.
Step 3 of 4 — Financial Model
Enter your monthly baseline costs — the minimum overhead to keep the business running. Then we'll calculate how many sales per month you need to break even.
Step 4 of 4 — Personal Compatibility
A business that doesn't fit your life will fail no matter how good the numbers look. Tell us how this business fits you.
Your Luggage Storage Evaluation Report
Complete the four pillars and your personalized summary will appear here.
Points of Leverage
Marketing Strategy
Financial Model
Personal Compatibility
Part 3 - Action plan to launch your Luggage Storage business in 90 days
Nine concrete steps to take you from idea to open business, grouped into 30-day phases. Complete the planner above and we'll highlight what's most important for your situation.
First 30 days — Foundation
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Form your legal entity
An LLC keeps your personal assets separate from business debts and lawsuits — the most common reason small business owners choose this structure. Sole proprietorships and partnerships do not provide this protection.
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Get an EIN and register for taxes
Apply for your free Employer Identification Number through the IRS, then register for any state or local taxes that apply to your business (sales tax, franchise tax).
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Open a business bank account and credit card
A dedicated business account is required to maintain personal asset protection. Mixing personal and business finances ('piercing the corporate veil') can void your LLC's liability shield.
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Set up business accounting
Recording expenses and income from day one makes tax filing easier and lets you see when the business is actually profitable. Use software (QuickBooks, Wave) or a part-time bookkeeper.
Days 30–60 — Compliance & Risk
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Get permits and licenses
State and local requirements vary widely. Brick-and-mortar businesses typically need a Certificate of Occupancy; service businesses may need specific professional licensing; food businesses need health permits.
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Get business insurance
General Liability Insurance is the most common starting point. If you'll have employees, most states require Workers' Compensation. Specific industries need additional coverage (product liability, professional liability, etc.).
Days 60–90 — Launch
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Define your brand
Your brand is how customers perceive and remember you. A clear name, logo, and visual identity make every later marketing decision easier and protect you legally as you grow.
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Create your business website
Every legitimate business needs a website. Social media pages are not a substitute — you don't own the platform. Modern website builders mean you can launch a clean site in a weekend without a developer.
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Set up your business phone system
A dedicated business number keeps your personal life private, makes the business look legitimate, and lets you route calls professionally. Cloud phone services start under $20/month.