Abstract:Tour guide’s service quality directly affects the travel agency’s reputation, whereas the travel agency’s reputation reversely acts on the guide’s achievements. The problem of the travel agency is how to motivate the tour guides’effort to improve the service quality. Studies the guide incentive contract from the perspective of principal-agent theory, and in view of the features of guide’s achievements influenced by travel agency’s reputation, introduces reputation function and designs an incentive contract considering the factors of travel agency reputation. The results show that a good travel agency’s reputation has positive significance to improve tour guide’s achievements and promote service quality, and it is critical to the travel agency’s long-term development.