The established tour operators in St. Pauli feel threatened by our “pay-what-you-want” model, but that only shows we are doing something right. We prioritize fair conditions that put our guides in the middle of our business and that causes unrest among those who would rather cling to old structures.
In recent years, we at Robin and the Tourguides have repeatedly faced harsh and unfounded criticism from some established tour operators in St. Pauli. The criticism often targets our innovative “pay-what-you-want” tour concept, with claims that it exploits our guides or fails to pay them fairly. In reality, nothing could be further from the truth. In fact, our model allows guides to earn significantly more than the fixed hourly wages offered by most other tour operators. Let us show you why this approach not only empowers our guides but also sets a new standard for fairness and recognition in the industry.
On a standard tour in St. Pauli, guests usually pay between 20 and 30 euros per person. Taking the lower end of 20 euros as an example, groups often range from 20 to 25 participants, generating revenue of 400 to 500 euros per tour. On the upper spectrum, many tour operators pay their guides somewhere 100 to 150 euros for a tour, representing only somewhere between 20 to 30 percent of the total earnings. Not to forget that most guides are self-employed and bear the full burden of social contributions, including healthcare, pensions, and taxes, which can consume 60 to 75 percent of their income.
Additionally, some of the more prominent tour operators charge over 30 euros per participant while hosting groups of up to 30+ people. With the inclusion of features such as portable speakers that blare through the neighborhood, this results in revenues exceeding 900 euros per tour. While this is a valid business model, we are skeptical that their guides receive a fair share of the revenue comparable to the company’s.
Our approach, however, not only ensures fair compensation but also empowers guides to thrive professionally and financially within a sustainable framework. How this works? We take a small commission per paying guest, which amounts to 2.40 euros net to pay for the administrative and advertising costs of the company. That’s less than 20 percent of what the guests pay on average. The rest remains with the guide. That’s it!
This means our guides retain over 80 percent of the revenue from their tours. The notion that our guides are not paid fairly is simply unfounded. In fact, our guides earn considerably more than those working for most other providers in the area.We highly doubt that any other company or in this case, tour operator, allocates over 80% of their revenue to their workers, or in our case, the guides themselves. This level of revenue sharing represents a scenario that the overwhelming majority of workers in any industry as well as the tourism industry could only dream of. Our model ensures that guides are not only fairly compensated but are placed at the very center of our operations, creating a truly exceptional standard in the industry.
Despite taking an exceptionally small percentage of our revenue, we prioritize meaningful investments in people, the locals and the backbone of our company. Moreover, we actively support charitable initiatives and good causes, demonstrating a commitment that some operators may overlook entirely. This approach reflects our dedication to both community well-being and a fair, people-focused business model.
The criticism we face predominantly comes from owners or top managers of other tour operators who prefer a traditional, capitalistic top-down approach, where the majority of profits concentrate at the top. In contrast, we prioritize a grassroots model that challenges the “maximize profits for those at the top” mentality. Our approach is a worker-driven, bottom-up movement that empowers guides and redistributes revenue fairly. It’s no surprise that the “Kiez bosses” see our model as a threat, it proves that there is a better, more equitable way to operate.
Taking this into consideration, it’s no coincidence that we constantly receive applications from guides who previously worked for other tour operators in St. Pauli. Many tell us about poor working conditions, a lack of respect, and insufficient pay.
Not only do we believe in empowering our workers, but also our guests. While many other providers charge high fixed prices that not everyone can afford regardless of the quality of the tours offered, our tours are open to all. This is not only socially fair but also an important contribution to sustainability in tourism.
The attacks on our model are a clear sign that we are doing something right. We have flipped the script: with us, the guides, guests and local ecosystems are at the center, and the management is there to support them, not the other way around. We know our model threatens the established structures. But that is precisely our goal. We want to show that it is possible to work fairly, sustainably, and successfully. And if that means the “Kiez bosses” hate us, we’ll take it as a compliment.
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