How to start a Local Tour Guide Company Business in UK USA (Business Plan)

Tourist Guide Small Business Ideas

Do you have these questions in your mind?

  • How to start a travel guide business?
  • How do I start a local guide business?
  • What is the income of a tourist guide?
  • How much do travel guides get paid?
     

In this article, you will find answers to all your questions. So please grab a cup of coffee, and let’s get started.

Table of Contents

What is Tourist Guide Business?

The tourist guide business provides guided tours and other travel-related services to tourists. A tourist guide may provide services such as planning and organizing tours, leading tours, providing information about local history and culture, and ensuring that tourists have a safe and enjoyable experience.


The services may be provided as a freelance guide or as part of a tour company and may include various types of tours, such as walking, bus, and adventure tours.


In this blog, we will discuss the step-by-step process of starting a tour guide business, the pros and cons of the industry, and some top resources and tools to help you succeed. 

Tourist Guide Small Business Ideas

Types of Tourist Guide Business Models

Several business models can be applied to a tour guide business in the USA and UK. 

 

1. Commission-based model:
In this model, the tour guide earns a percentage of the revenue generated from the tour. For example, if the tour company charges $100 per person and the guide earns a 10% commission, they will make $10.


2. Flat fee model:
In this model, the tour guide charges a flat fee for their services, regardless of the revenue generated by the tour. This model is standard for private tours or customized experiences.


3. Hourly rate model:
In this model, the tour guide charges hourly for their time. This model is standard for walking tours or short-term tours.


4. Subscription model:
In this model, customers pay a monthly or yearly subscription fee to access exclusive tours or experiences the tour guide offers.


5. Ad-based model:
In this model, the tour guide offers free tours and generates revenue by displaying ads on their website or social media pages.


6. Freemium model:
In this model, the tour guide offers basic tours or information for free but charges for premium experiences or services.


7. Auction model:
In this model, customers bid on tours or experiences the tour guide offers, with the highest bidder winning the term.


Each of these business models has its advantages and disadvantages, and the choice will depend on the goals and target market of the tour guide business.

Pros and Cons of a Tourist Guide Business

Here are some pros and cons of starting a walking tour business:

Pros:

  • Low start-up costs
  • Flexibility
  • Creative freedom
  • Personal satisfaction
  • Positive impact on the local economy

 

Cons:

  • Seasonal demand
  • Physical demand
  • Weather-dependent
  • Competition
  • Liability risks


These are just a few pros and cons of starting a walking tour business. As with any business, it is essential to consider these factors before deciding.

Tourist Guide Business Investment

The investment required to start a tour guide business in the UK and USA may vary depending on various factors such as the location, size of the company, and the services offered. 

 

 

1. Licenses and permits:
To operate a tourist guide business in the UK, you may need to obtain a license from the local council or national governing body. The cost of getting a permit can vary depending on the location and the type of services you plan to offer.

 

2. Insurance:
It is essential to obtain liability insurance to protect your business from any claims made against you by clients or third parties. The insurance cost can vary depending on the level of coverage and the size of your business.

 

3. Transportation:
You may need to purchase or lease a vehicle if you plan to offer transportation services. The cost of purchasing or renting a car can vary depending on the type of vehicle and the location.

 

4. Marketing and advertising:
To attract customers, you may need to invest in marketing and advertising. This can include creating a website, developing promotional materials, and running online and offline advertising campaigns.

 

5. Staffing (If you want to grow it like a Big Business):
Hiring tour guides, administrative staff, and other personnel can be expensive when starting a tour guide business. You may also need to invest in training and development to ensure your team is knowledgeable and experienced.

 

Starting a tourist guide business requires a team of skilled and knowledgeable staff to provide high-quality services to clients. Below are some of the types of staff that you may need when starting a tourist guide business:

 

  • Tour Guides:
    Tour guides are the face of your business and play a crucial role in providing a positive experience for your clients. You may require tour guides who are knowledgeable about the history, culture, and attractions of the destination and are able to communicate effectively with clients in their language.

  • Sales and Marketing Staff:
    Sales and marketing staff are responsible for promoting and selling your business to potential clients. They may manage your social media accounts, create marketing materials, and reach out to potential customers to generate leads and increase bookings.

  • Administrative Staff:
    Administrative staff handle the day-to-day operations of the business, such as managing bookings, scheduling tours, and communicating with clients. They may also handle accounting and financial management tasks, such as managing expenses and invoicing clients.

  • Drivers:
    If you offer transportation services as part of your business, you may need to hire drivers who are licensed and experienced in navigating the roads and traffic of the destination.

  • Translators:
    If you operate in a multilingual destination, you may need to hire translators to provide interpretation services for clients who speak different languages.

  • Event Planners:
    If you offer specialized tours or cultural experiences, you may need to hire event planners to organize logistics such as venue booking, equipment rentals, and catering.

  • Technicians:
    If you rely on technology such as audio systems, GPS devices, or cameras for your tours, you may need to hire technicians who can maintain and repair the equipment.

 

It is important to carefully consider your staffing needs and budget when starting a tourist guide business. You may choose to hire staff on a part-time or freelance basis to manage costs and increase flexibility.

Tourist Guide Small Business Ideas

How much will you earn in Tourist Guide Business?

The earning potential for a walking tour business can vary greatly depending on the location, the size of the company, the pricing strategy, and the level of demand for the tours. Experienced tour guides who work in popular tourist destinations or specialize in high-end terms can earn significantly more.

 

 

Tour guides typically earn between £100 and £200 per day, with some earning up to £500 per day for specialized tours or corporate events. But, again, the actual earnings can vary based on location, experience, and type of tour.

 

As previously mentioned, the service rate card of a tourist guide business can vary depending on various factors such as location, type of tour, group size, duration of the tour, language, and level of expertise of the guide.

Below are some additional details on the service rate cards for tourist guide businesses in the UK and USA:

UK:

  • Blue Badge Guides:
     The hourly rate for a Blue Badge Guide in the UK can range from £50-£100 per hour, depending on the location and demand.

  • Green Badge Guides:
    The hourly rate for a Green Badge Guide in the UK can range from £30-£50 per hour, depending on the location and demand.

  • Other guides:
    The hourly rate for other types of guides in the UK can vary, but may range from £20-£50 per hour.

USA:

  • Tour guides:
    The hourly rate for a tour guide in the USA can range from $40-$100 per hour, depending on the location, group size, and level of expertise of the guide.

  • City-licensed guides:
     In cities such as San Francisco and New Orleans, licensed tour guides may charge hourly rates ranging from $50-$200 per hour.

  • Other guides:
    The hourly rate for other types of guides in the USA can vary, but may range from $20-$80 per hour.

It is important to note that these rates are only a general guideline and can vary depending on the specific circumstances of each tour.

It is recommended that tour guide businesses research the local market and competition to determine competitive pricing and communicate their pricing structure effectively to potential customers.

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Tourist Guide Small Business Ideas

Checklist of Equipment Needed for Tourist Guide Business

The essential equipment required for a walking tour business will depend on the type of tour and the services provided. However, here is a checklist of some of the equipment that may be needed:

 

1. Comfortable Walking Shoes:
Tour guides should have comfortable and sturdy walking shoes.

 

2. Communication Equipment:
Tour guides should have reliable communication equipment, such as a two-way radio or mobile phone, to communicate with other guides or support staff.

 

3. Maps and Brochures:
Guides should have maps, brochures, and other materials to share with the participants during the tour.

 

4. First Aid Kit:
A first aid kit should be available on the tour in case of any accidents or injuries.

 

5. Umbrellas or Ponchos:
If the tour is conducted in an area with frequent rainfall, tour guides should carry umbrellas or ponchos to keep the participants dry.

 

6. Water Bottles: 

Tour guides should carry water bottles to keep themselves and the participants hydrated during the tour.

 

7. Audio Equipment:
If the tour involves providing audio commentary, tour guides may need audio equipment, such as a microphone and speakers.

 

8. Camera:
Tour guides may need a camera to take photos or videos of the tour.

 

9. Transportation:
If the tour involves transportation, tour operators will need access to a suitable vehicle, such as a bus or van, and the required licenses and permits to operate the car.


It’s essential to customize the equipment checklist according to the specific requirements of the walking tour business.

Tourist Guide Small Business Ideas

List of services in a Tourist Guide Business 

As a tourist guide, the types of products and services you can offer may vary depending on the destination, type of tour, and the needs and interests of your clients. However, below are some standard products and services that can be offered:

 

1. Guided tours:
This is the leading service that most tourist guides offer. You can provide guided tours of a city, a specific attraction, or a cultural or historical site. You may also offer customized tours to cater to the particular interests of your clients.

 

2. Interpretation services:
If you are fluent in a foreign language, you can offer interpretation services to tourists who may not speak the local language.

 

3. Cultural experiences:
You may offer cultural experiences such as traditional music and dance performances, cooking classes, or local craft workshops to give tourists a deeper understanding of the local culture.

 

4. Transportation services:
You may offer transportation services such as airport pickups, transfers, and transportation between different sites or attractions.

 

5. Accommodation booking:
As a local expert, you may offer advice on the best accommodations for tourists and help book hotels or other types of lodging.

 

6. Ticket booking:
You may offer ticket booking services for popular attractions, museums, or events.

 

7. Itinerary planning:
You may offer itinerary planning services, helping tourists plan their trip and providing advice on the best sights, activities, and restaurants to visit.

 

8. Photography services:
You may offer photography services, taking photos of tourists during their trip and providing them with a memorable keepsake of their experience.

 

9. Translation services:
If you are fluent in multiple languages, you may offer translation services for tourists during their trip.

 

10. Travel consulting:
You may offer travel consulting services, providing advice on travel arrangements, visa requirements, and other logistics related to travel.

 

It is essential to consider your specific expertise and interests when determining the products and services to offer in your tourist guide business.

Tourist Guide Small Business Ideas

Top 15 US Tour Guide destinations / cities

 

Here are 15 popular destinations or cities in the UK where people often take or need a local city guide for local tours:

 

  1. New York City, NY – with its vast size and numerous iconic landmarks, a local city guide can help visitors navigate and explore the city’s top attractions and hidden gems.

  2. San Francisco, CA – home to the Golden Gate Bridge, Alcatraz Island, and other popular landmarks, a local guide can provide valuable insights into the city’s history and culture.

  3. Las Vegas, NV – known for its entertainment and nightlife, a local guide can help visitors discover the city’s top shows, casinos, and attractions.

  4. New Orleans, LA – famous for its music, food, and architecture, a local guide can help visitors explore the city’s unique culture and traditions.

  5. Washington, DC – the nation’s capital is home to numerous museums, monuments, and historic landmarks, making a local guide essential for navigating and understanding the city’s rich history.

  6. Los Angeles, CA – with its sprawling size and diverse neighborhoods, a local guide can help visitors discover the city’s top attractions and hidden gems.

  7. Miami, FL – a popular destination for beachgoers and nightlife enthusiasts, a local guide can help visitors explore the city’s top beaches, restaurants, and cultural attractions.

  8. Chicago, IL – known for its architecture, food, and music, a local guide can help visitors discover the city’s rich history and cultural offerings.

  9. Honolulu, HI – with its stunning beaches and tropical climate, a local guide can help visitors make the most of their time on the island and discover its unique culture and history.

  10. Boston, MA – home to numerous historic landmarks and cultural institutions, a local guide can help visitors explore the city’s rich history and architecture.

  11. Seattle, WA – with its iconic landmarks like the Space Needle and Pike Place Market, a local guide can help visitors navigate the city’s top attractions and cultural offerings.

  12. Austin, TX – known for its music, food, and outdoor activities, a local guide can help visitors discover the city’s unique culture and attractions.

  13. Nashville, TN – with its vibrant music scene and historic landmarks, a local guide can help visitors explore the city’s rich history and culture.

  14. San Diego, CA – a popular destination for beachgoers and outdoor enthusiasts, a local guide can help visitors discover the city’s top beaches, parks, and cultural attractions.

  15. Portland, OR – with its hipster culture and vibrant food scene, a local guide can help visitors discover the city’s unique attractions and hidden gems. 

 

 

 

 

 

 

 

 

Tourist Guide Small Business Ideas

Top 15 UK Tour Guide destinations / cities

 

Here are 15 popular destinations or cities in the UK where people often take or need a local city guide for local tours:

 

  1. London – the capital of England, known for its iconic landmarks such as the Tower of London, Buckingham Palace, and Big Ben, a local city guide can help visitors explore the city’s rich history and culture.

  2. Edinburgh – the capital of Scotland, famous for its castle and Royal Mile, a local guide can provide insights into the city’s history and culture.
  3. Bath – known for its Roman baths and Georgian architecture, a local guide can help visitors explore the city’s rich history and architecture.
  4. Oxford – famous for its world-renowned university and beautiful architecture, a local guide can help visitors navigate the city’s top attractions and hidden gems.
  5. Cambridge – another historic university city, famous for its punting on the River Cam and beautiful architecture, a local guide can help visitors explore the city’s rich history and culture.
  6. York – a medieval city with a rich history, known for its stunning York Minster and the Shambles, a local guide can provide valuable insights into the city’s past.
  7. Liverpool – known for its Beatles’ connections, historic waterfront, and architecture, a local guide can help visitors explore the city’s unique culture and landmarks.
  8. Manchester – a vibrant and diverse city with a rich industrial heritage and modern cultural scene, a local guide can help visitors discover the city’s top attractions and hidden gems.
  9. Bristol – a creative and artistic city, famous for its street art and historic harbor, a local guide can provide valuable insights into the city’s culture and history.
  10. Belfast – the capital of Northern Ireland, with a rich history and culture, a local guide can help visitors explore the city’s landmarks and learn about its troubled past.
  11. Brighton – a lively seaside city, famous for its pier and vibrant arts and music scene, a local guide can help visitors discover the city’s unique culture and attractions.
  12. Glasgow – a vibrant and dynamic city, known for its stunning architecture and world-renowned art collections, a local guide can provide valuable insights into the city’s history and culture.
  13. Bath – known for its Roman baths and Georgian architecture, a local guide can help visitors explore the city’s rich history and architecture.
  14. Stratford-upon-Avon – the birthplace of William Shakespeare, a local guide can help visitors discover the city’s top attractions and learn about the life and works of the famous playwright.
  15. Canterbury – a historic city with a famous cathedral, a local guide can help visitors explore the city’s rich history and architecture, and learn about the Canterbury Tales.

 

 

 

 

 

 

 

Tourist Guide Small Business Ideas

Licenses in a Tourist Guide Business 

In the UK, the primary license used in the tourist guide business is the Blue Badge Guide qualification, issued by the Institute of Tourist Guiding (ITG). This qualification is recognized by Visit England, the national tourist board, and is required for guides who work with groups in certain tourist attractions and heritage sites.

 

In addition to the Blue Badge Guide qualification, some other licenses and certifications may be helpful in the UK tourist guide business, such as the Green Badge Guide qualification for specific regions or areas or the WorldHost customer service training certification.

 

The specific licenses required to operate as a tourist guide in the USA can vary by state and city. In some cases, a license or permit may be required to use a business, such as a tour company, in addition to any individual licensing requirements for the guides.

 

Some cities, such as San Francisco and New Orleans, require tourist guides to be licensed by the city to operate legally. In New York City, for example, the Department of Consumer Affairs issues licenses to tour guides who have completed a training program and passed an exam.

 

It is essential to research the licensing requirements for where you plan to operate your tour guide business and ensure that you and your guides have the qualifications and certifications to work legally and provide high-quality services to your clients.

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Tourist Guide Small Business Ideas

Health and Safety Measures in the Tourist Guide Business

The tourist guide business has a growing emphasis on health and safety measures. Below are some key health and safety measures that tourist guides can implement to protect themselves and their clients:

 

1. Regular sanitation:
Tourist guides should ensure that all surfaces and equipment used during tours are regularly sanitized to prevent the spread of germs. This includes cleaning vehicles, tour equipment, and other items used during times.

 

2. Personal protective equipment (PPE):
Tourist guides should wear appropriate PPE, such as masks and gloves, when necessary. They should also encourage their clients to wear masks and practice social distancing during tours.

 

3. Health screenings:
Tourist guides can perform temperature checks or health screenings on their clients before the tour begins to identify individuals who may be sick or at risk of spreading illness.

 

4. Social distancing:
Tourist guides should encourage social distancing among their clients during tours and limit group sizes to ensure that individuals can maintain a safe distance from one another.

 

5. Contactless payment:
Tourist guides can implement contactless payment options to reduce the risk of spreading germs through cash or credit card transactions.

 

6. Training and education:
Tourist guides should receive training and education on health and safety protocols and how to identify and respond to potential health risks during tours.

 

By implementing these health and safety measures, tourist guides can help protect themselves and their clients from illness and create a safe and comfortable tourism environment.

Tourist Guide Small Business Ideas

Conclusion

Starting a tour guide business in the USA or UK can be profitable and fulfilling. With the proper planning, resources, and marketing strategies, entrepreneurs can establish successful tour guide businesses catering to diverse customers.

Key factors include obtaining the necessary licenses and permits, creating compelling tour packages, developing a solid online presence, and leveraging social media and other marketing channels to reach a wider audience.

With a commitment to excellence and a passion for providing exceptional customer service, tour guide businesses can thrive and grow in these dynamic and exciting markets.

Want to Save Time in your Business Launch?

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A. In most cases, yes. Depending on your location, you may need a business license, liability insurance, and permits from local authorities. It’s best to check with your city or state government to find out the specific requirements for your area.

A. Consider the interests and preferences of your target audience. Choose a route that highlights the unique aspects and history of the area you’ll be touring. It’s also important to factor in the physical abilities and needs of your customers, such as wheelchair accessibility.

A. Research the local market and competitive prices to determine a fair and profitable rate. Consider the length of the tour, the level of customization, and any additional perks or services you may offer. You may also want to offer discounts for groups or loyal customers.

A. Utilize online platforms such as social media, Google My Business, and TripAdvisor to reach a wider audience. Partner with local hotels and tourism agencies to promote your tours. Encourage satisfied customers to leave positive reviews and spread the word to their friends and family.

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