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How to set tour guide rates: half days, supplements, overtime and cancellations

Most disputes with guides are not about money. They are about what the rate actually covered: when the half day started, who paid the tickets, what happens when the group cancels at seven in the morning. This guide walks through each decision and how to write it down so the invoice matches the service.

What goes into a tour guide rate?

A rate is not a number. It is a number plus a set of assumptions: how many hours, how many people, which language, where the service starts and ends, and what happens if something changes. When those assumptions live in someone’s head, the number gets argued about at invoice time.

So before you decide amounts, decide the structure. Every rate card an agency uses with its guides answers the same questions:

  • The base unit: half day, full day, hourly or per service.
  • What the unit includes: hours, start point, end point, group size, language.
  • Supplements: what costs more, and by how much.
  • Overtime: when it starts counting and how it is measured.
  • Travel and transfers: time spent getting there, waiting, and expenses.
  • Cancellations: what the guide receives if the service does not happen.
  • Tickets and expenses: who pays, and how they are reimbursed.

This article does not give market rates. They vary by city, language, season and the guide’s own situation, and any figure here would be out of date in your market. What it gives you is the framework, so whatever amount you agree is clear to both sides.

Half day, full day or hourly: which rate structure works?

Most inbound agencies and DMCs end up with a half-day and full-day base for tours and excursions, and an hourly rate for short services and overtime. Here is how the options compare in practice:

Common base units for guide rates and where each one fits.
Base unitFits bestWatch out for
Half dayCity walking tours, museum visits, morning or afternoon excursionsDefine the hours included (and whether 4 hours means 4 or 4 and a half on the day)
Full dayDay trips, coach excursions, programmes with lunchLunch break counted or not, and the latest finish before overtime
HourlyShort visits, airport meet and greet, overtimeA minimum number of hours, otherwise a one-hour job costs the guide half a day
Per serviceRepeated, fixed-format products, such as the same tour every dayGroups that run long still need an overtime rule
Common base units for guide rates and where each one fits.

Whichever you choose, the most important line on the rate card is this one: when the clock starts. The cleanest rule is that it starts at the meeting time you gave the guide, not when the group arrives. If a coach from the airport is 50 minutes late, the guide has been working for 50 minutes.

Which supplements should a guide rate card include?

Supplements are where improvisation does the most damage. If one coordinator adds something for a large group and another does not, guides notice, and the rate card stops meaning anything. List them, with a fixed amount or rule each:

Language

Rare languages are a supply problem: if only two guides on your team speak Japanese or Polish, you pay what it takes to keep them. Some agencies use a single supplement for any language outside their main three or four; others set one per language. Either works, as long as it is written.

Group size

A guide with 15 people and a guide with 45 on a walking tour are not doing the same job. A threshold above which a supplement applies is simple to check, because PAX is already on the service. Decide whether you count the tour leader and whether it is the booked or the actual number.

Time of day and calendar

Early starts, evening tours and bank holidays are the usual ones. Write the cut-off times (for example, a start before a set hour) rather than “early morning”, so there is no debate about whether 7:45 counts.

Extra roles

A guide who also handles the audio guide receivers, works alongside an interpreter, or acts as tour leader for a multi-day programme is doing more than guiding. If you pay for that, list it as its own line.

How should overtime work for tour guides?

Overtime disputes almost always come from one of three gaps. Close all three and they mostly disappear:

  1. From when it counts

    The end of the hours included in the base unit, measured from the meeting time. Some agencies allow a short grace period before overtime starts; if you do, say how long.
  2. In what increments

    Per started half hour, per full hour, or per minute. Per started half hour is easy to check and feels fair to both sides.
  3. Who authorises it

    If the group asks to extend, the guide should tell the office, which agrees it with the operator. Unauthorised extensions are where the agency ends up paying overtime it cannot pass on.

    Red flag: overtime discovered only when the invoice arrives, with no record of the actual end time.

Record the actual end time on the service on the day, not at the end of the month. It takes ten seconds and it is the only evidence either side will have.

How do you pay guides for transfers and travel time?

Transfers are a different product from tours, and they need their own rate. An airport meet and greet, a transfer to the hotel and a short briefing on the coach is short work with a lot of waiting around flight times. An hourly rate with a minimum, plus a waiting rule if the flight is late, usually works better than forcing it into a half day.

For excursions that start outside the city, decide whether travel to the start point is paid time and who covers the cost (train ticket, fuel, parking). If the guide travels on the coach with the group, that is normally working time. If they make their own way to a castle 60 miles away to meet the group there, it is a grey area unless the rate card settles it.

What cancellation terms should you agree with guides?

A freelance guide who keeps a date free for you turns down other work. If you cancel the day before, they lose the day. Cancellation terms are how you keep good guides through the season, and they need to be agreed before it starts.

A clear cancellation rule has four parts:

  • Notice windows: for example, more than a set number of days, between that and 24 hours, and same day.
  • What the guide receives in each window: nothing, part of the rate, or the full rate.
  • What counts as the cancellation time: when you notify the guide in writing, not when the operator told you.
  • Reductions: a full day cut to a half day, or two guides reduced to one, should follow the same logic.

Who pays for entrance tickets on a guided tour?

Tickets, reservation fees and headsets are costs of the service, not part of the guide’s fee. Treat them that way in three steps:

  • Buy in advance wherever you can, with vouchers or a group booking in the agency’s name. The ticket type and entry time go on the service, so the guide knows what is booked.
  • If the guide has to pay at the door, it is a reimbursement against a receipt, agreed in advance.
  • Keep it on its own line, never added into the guiding fee. Mixing them confuses the VAT on the guide’s invoice and makes month-end checks much harder.

How do you keep a rate card per guide and per operator?

An agency has two rate cards, even if it only writes one: what each operator pays you, and what you pay each guide. Keep them as separate documents, and keep both dated and versioned per season.

On the guide side, start with one standard card for the whole team. Then record exceptions per guide (a senior guide with a higher full-day rate, a guide who only does transfers) as named variations, not as a private arrangement remembered by one coordinator. Send each guide their card in writing before the season, and get a reply that they accept it.

On the operator side, some operators buy a product with guiding included, others pay for the guide separately. If an operator has its own conditions (a minimum group size, a set tour length), note them next to that operator so whoever assigns the service applies the right rate.

Rates set up once in Partners: name, amount and VAT for each one, ready to attach to services.

In Partners, the rates are set up once and each service carries its main rate plus any extras (an interpreter, audio guides, transport, a supplement). The guide sees the breakdown on the service itself, so the agreed amount is not a message somewhere in their phone.

How do you avoid invoice disputes with guides?

Disputes happen when the invoice is the first time anyone writes down what was agreed. The fix is to write it down earlier, at each step:

  1. The rate is on the service before the guide accepts

    Including supplements. If a guide accepts a service, they accept its rate.
  2. Changes update the service, not a chat

    If the PAX goes up past a threshold or the tour gets longer, the supplement is added to the service the same day.
  3. Actual times are recorded on the day

    Especially the end time when there is overtime.
  4. Guides invoice by service reference

    Each invoice lists the services it covers. Checking it means comparing it with the list of completed services for that guide.

    Red flag: a single monthly total with no references, which only the guide can reconcile.

  5. Expenses come with receipts, on separate lines

    So reimbursements never get mixed with fees.

The invoice itself is the guide’s document, and its content depends on their status. In the UK, for instance, GOV.UK lists what an invoice must include: a unique number, the supplier’s and customer’s details, a description, the supply date, the invoice date, the amounts and, if the guide is VAT registered, the VAT. Whether a guide charges VAT is for them and their accountant to decide, not the agency.

In Partners, the guide selects the services they want to invoice from their portal, uploads their own invoice as a PDF, and it stays linked to those services, with the net amount and VAT shown separately. You check it and mark it as paid. The full cycle is explained on our page about tour guide invoicing.

When should you review guide rates?

Once a year, before the operators’ programmes arrive, is the natural moment: you know what you will be selling, and your guides know what they are committing to before the busy months. Reviewing mid-season creates two prices for the same work in the same month, which is exactly what the rate card exists to avoid.

It also helps to look back at the season before you change anything. Which supplements were applied most? Where did overtime keep appearing? A recurring overtime on the same excursion usually means the base unit is wrong for that product, not that the guides are slow. If you are planning the team for next year at the same time, our guide to peak season tour guide planning covers the other half of the work. And if you are weighing what software would cost against the hours you spend reconciling, see how much tour agency software costs.

Frequently asked questions

How to set tour guide rates: a guide for agencies

Should tour guides be paid by the hour or by the half day?

Both work. Half-day and full-day rates are easier to quote and invoice, and they suit most city tours and excursions. Hourly rates suit short services and transfers. Many agencies combine them: a half-day or full-day base with a defined number of hours, plus an hourly overtime rate once those hours are exceeded. What matters is defining the hours included and when they start.

What should a tour guide cancellation policy include?

Notice windows (for example, more than a set number of days, between that and 24 hours, and same day), the share of the rate the guide receives in each window, what counts as the cancellation time, and what happens if the service is reduced rather than cancelled. Write it down before the season and send it to every guide, so nobody discovers the rule when the first group drops out.

Who pays for entrance tickets on a guided tour?

That depends on your agreement with the operator, but the safest internal rule is that the agency buys tickets or vouchers wherever it can. If a guide has to pay at the door, treat it as a reimbursement with a receipt, on a separate line from the guiding fee, so the amounts are never mixed and VAT treatment is not confused.

How do I avoid disputes when guides invoice the agency?

Agree the rate before the guide accepts the service, record it on the service with any supplements, note the actual end time if there was overtime, and ask the guide to invoice by service reference. Then checking the invoice means comparing two lists that should match, rather than reconstructing the month from emails and messages.

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