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How to price a guided tour

Work out every cost for each guest, add a fair payment for your time, and then add a margin, before you choose a price. A price copied from someone else, or set simply to be cheap, often means that you are paying for your guests' tour yourself.

List every cost

Variable costs, which you pay for each guest:

• entrance fees to museums, sites or reserves;
• food and drink at a host or eatery;
• a host's fee, for example for a craft workshop or a visit to a home;
• water and small extras;
• bicycle or equipment hire;
• commission to an agent or booking platform.

Fixed costs, which you pay for each tour however many guests come:

• a co-guide's or back-marker's fee;
• your travel to and from the meeting point;
• a share of your yearly costs: registration and first aid renewals, training, equipment, marketing, insurance and phone data, divided by the number of tours you expect to run in a year.

Your time. Count all of it: preparation, travel, the tour and the follow-up. Decide a fair hourly rate. A side hustle that pays less than your time is worth is a hobby.

Work out the cost for each guest

cost per guest = variable costs per guest + (fixed costs + your time) ÷ number of guests

Then add your margin.

Check the market

• What do similar tours charge in your area, and what makes yours different?
• What can your guests pay? Overseas visitors, local families and school groups have different budgets.
• What is included? Say clearly what the price covers and what it does not.

Kinds of price

• Per guest, for scheduled group tours.
• A private tour price, for one family or group, usually a set price up to a number of guests.
• Group rates for schools and organisations, agreed in writing.
• Children's prices, if your costs for children are lower.

Show prices in rand, including everything that guests must pay, so that there are no surprises.

Do not compete only on price

Underpricing makes it hard to pay hosts fairly, invest in safety or survive the quiet months. Compete on quality, stories and service.

Know your minimum group

Because of fixed costs, a tour with too few guests loses money. Work out the number of guests at which your price still covers your costs and your time. Decide beforehand what you will do when fewer people book, and set a maximum group size that you can manage safely.

Deposits and cancellations

Write your deposit and cancellation rules before you need them, and send them with every booking.

Tips

Tips are common in tourism, especially from overseas visitors, but they should never be expected or demanded.

• Say the same thing to every group, for example that tips are welcome but never expected.
• Never treat guests differently because of what you think they will tip.
• Agree beforehand how tips are shared with a co-guide.
• Record tips as income.

Your price should pay for your work. Tips are a bonus.

Taking payment

• For advance bookings, use a bank transfer to a dedicated account, or a payment link from your bank or a reputable provider.
• On the day, use a card machine or cash, collected before the tour starts.
• Avoid carrying much cash, and bank it promptly.
• Give a receipt or confirmation for every payment.

Keep simple records

For every tour, record the date, the guests, what each paid and how, deposits and refunds, tips, and every cost with its slip. You need these records for tax, and they show you which tours pay best.

Food, hosts and entrance fees are often the biggest part of your costs. Agree prices with hosts in advance and pay them promptly.

This guide is based on Chapter 10 of Tour Guiding as a Side Hustle, which includes a price calculator.