TL;DR: book tours directly with the guide or through their website.
Hello again!
We often see people asking for recommendations for tours, be it in Lisbon, Sintra, Porto, Douro Valley, Lagos, Algarve, etc.
If you intend to book tours, you should make them a top priority, alongside accommodations and flights. These three things combined make up the essentials of your trip. They define when you’re coming, where you’ll be staying, and what you’ll be doing while you’re in Portugal.
Where to look and how to book.
A good starting point is browsing online platforms to see what they offer. You can look at our Tour Guide Directory for guides. Airbnb Experiences, Get Your Guide, Tripadvisor, Viator, etc. are also great places to read some reviews and stay informed. But that is it. You can also find reviews on our Facebook group.
The platforms listed above charge substantial commissions to their providers when you book tours. Below are a couple of screenshots from different platforms, to give you an idea of how much you’re paying extra.
For example, a 30% commission rate means you pay €100 for your tour, but the provider will receive €70. So, you’re paying €100, but you will receive a €70 tour. Note that providers CANNOT change the commission rate, except on Viator/Tripadvisor. There, the minimum commission is 26,3% but can go as high as 50%!!!
When comparing prices, make sure to understand what companies offer (full inclusions or transportation/guiding services) and the type of tourism (mass, niche, etc.). For a more in-depth explanation of a tour cost breakdown, read this excellent post by José Right.
Companies offering low prices on these platforms typically have reduced margins and rely on mass tourism to stay afloat. When you see several ads from the same company, for very similar tours, that’s a sign of warning. I have seen companies promote “small group” tours, and then use buses or multiple minivans for the same itinerary.
On the opposite end of the spectrum, you have more expensive tours. Often these are overpriced on these platforms because of the commission. If you reach out to the tour guide directly, they will most often offer you a much better rate. This may possibly save you hundreds of dollars/euros.
These platforms may have advantages, but some costs are unnecessary for providers due to legal obligations in Portugal. For example, commissions are meant to help pay for insurance, but third-party insurance is mandatory for Portuguese tour businesses. In Portugal, companies must hire their own insurance, resulting in a double charge for the same coverage.
Why these platforms are good for consumers, but not individual guides.
In my opinion, the greatest advantage of these platforms is their cancellation policy. The cancellation policy is generous for travelers, offering full refunds if a tour is canceled up to 24 hours before. The platform disregards it, which is inconsequential for mass tourism operators, leading to their greater prevalence on such platforms. Most of them will overbook because they have relatively high rates of cancellation and no-shows.
For an individual trying to start a business (or a one-man show), a cancellation is a big loss of revenue. Most are trying to pay rent/mortgage, put food on the table, and put kids through school. If you commit to such a guide, please do your best to show up. Leave the rest up to your guide, and they will provide you with a memorable day. We’re humbled, happy, and grateful for every person we meet and share one or more days with.
A final word of caution:
Before the internet and online platforms, a common way of getting recommendations was to ask the hotel concierge. In fact, the definition of concierge is someone who is there to answer your questions and attend to your needs. Nowadays, from personal experience, hotel concierges often prioritize recommendations based on commissions, rather than solely on the best options. They often request sums similar to those on online platforms, sometimes without considering your best interests.
Sérgio Costa
Link to Original Post.