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There are plenty of things to do around Cusco but the 3 most popular tours are (1) the Cusco City tour which also takes in the Inca fortress of Sacsayhuaman and other nearby Inca ruins perched high in the hills above the city (2) The Sacred Valley Tour which also includes a visit to Chinchero and (3) a tour by train to Machu Picchu, usually for just 1 day but even better if you have the time to spread the tour over 2 days with an overnight in Aguas Calientes. There are loads of travel agencies around the main Plaza de Armas selling these tours. The City Tour and the Sacred Valley tour are easy to booking just one day in advance, the City Tour can usually be booked in the morning and you can start the tour after lunch. Unless you specifically book a private tour you will usually just be grouped together with other visitors on a bus (can be up to 30 people in a group). When making a booking always ask what the maximum group size is, does the guide speak good English (or the language that you require), what time and where will you be picked up and get it all in writing with a receipt. Prices vary depending on the maximum size of the group and quality of guide. My personal experience of these tours is that the guides are usually just satisfactory but the tours are usually cheap and taking a tour is much more convenient than arranging the transport yourself especially if you are on limited time. Entrance fees are not usually included so its standard to have to buy your own Boleto Turistico and still have to pay an additional fee for entry to the Cathedral and the Qoricancha.
Day tours to Machu Picchu can often be bought a couple of days ahead of time but during the high season entrance tickets to Machu Picchu can sell out several days in advance and it can also be difficult getting the cheaper priced train tickets or sometimes any train tickets at all. My recommendation would be to book your tour to Machu Picchu at least a few weeks in advance or as soon as you have booked your flights. Why risk waiting until you arrive in Cusco?
A popular half day tour of the highlights of the city of Cusco including the Cathedral & Qoricancha Inca Sun Temple as well as taking in the nearby Inca ruins of Sacsayhuaman, Qenko, Puca Pucara and Tambomachay.
A full day tour of the Sacred Valley of the Incas including a visit to the Indian market at Pisac, lunch in Urubamba, a visit to the town & Inca fortress at Ollantaytambo and returning to Cusco by way of a different route stopping at the beautiful village and handicraft market at Chinchero. Some tours also visit the Inca Ruins at Pisac but this can add another 2 hours to the trip so less time is spent at the markets or other places. If you want to see the Pisac Ruins (I think they are well worth a visit) make sure you mention this when you book and also make sure its written on your receipt.
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