Below-cost tours (BCTs) have long been considered a serious issue in the travel industry, yet they have rarely been discussed from a tour guides’ perspective. Today’s tour guides are mostly freelancers, hired by tour operators to lead tour groups. While previous studies cover the management and behaviors of tour guides, there is little insight into personal perceptions of their work. To better understand BCTs, this study provides an intimate look at the phenomenon through the use of semi-structured interviews from tour guides and employment of nonparticipant observation on their experiences. The structural problems of the travel industry and impacts of BCTs on tour guide performance are explored and highlighted. Framed in the agency theory, the managerial implications and solutions to the BCT problems are discussed and recommended.
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