• Having a tour guide to explain sights as you're looking at them helps you get more out of the trip.  A guide can also be an excellent resource for questions about Egyptian culture and history.
• Package tours can sometimes work out cheaper than booking the individual hotels, boat rides, and admissions yourself
• Special permits or government escorts are required to visit some areas, and a tour operator can easily arrange this in advance.
• Transportation without a tour can be hard to arrange on your own.

There are several different options

• Book a package tour with a group.  This is the most economical way to go - especially if you're interested in seeing just the major sites and don't need to go off the beaten path.  Themed tours can be a fun way to meet people with similar interests to your own
• Book a private tour with close friends or family.  Private guides are surprisingly inexpensive
• Book your travel yourself, and hire a private guide - Egyptologist once you arrive in Egypt.   Guides are available at all the major sites, but you'll be limited to who is available at that moment.

Questions to ask:

• What level of education will the guide have?  Will they have a background in Egyptology?  Will they speak your language fluently
• What if something goes wrong during the trip, will you have a local number to contact the company?
• What are the agency's policies on cancellation?
• What sites are included in your tour?
• What accommodation will you be staying in?
• As to see a breakdown of expenses
• What tips will be expected during your tour.  Expect to tip your guide as well as any drivers during the trip.
• Can the tour accommodate any special needs or dietary needs?
• What level of physical activity will be expected?

Our notes:

• Having a private guide helped us appreciate the temples and tombs even more.   Our guide was very educated, and was able to take us around the sights at our own pace and explain everything to us.  He even taught us to decipher some of the hieroglyphics! We, of course, had lots of questions about details and all the new things we were seeing and he was able to give us great, thoughtful answers.  We felt that having a guide gave us a depth of understanding that we would not have gained had we visited the sights on our own.  We felt that the guide was well worth every penny we spent.

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