After the implementation of the Tourism Law, travel agencies are prohibited from forcing shopping, and a rise in tour fees is expected to become common. Prices for outbound group tours to destinations such as Southeast Asia, Europe, America, Australia, Japan, and South Korea are generally increasing by 20% to 30%, with some possibly rising by 100%, and potentially doubling during the National Day holiday.
With just over a month to go before the “National Day” golden week, in previous years, promotional materials for National Day travel products would have been everywhere by now, but this year, things have been relatively quiet. As the “Tourism Law of the People’s Republic of China” will come into effect on October 1, explicitly banning zero or negative tour fees, adding shopping stops, and forcing shopping, major travel agencies are currently developing new types of travel products. It is understood that the first to be affected—“National Day” outbound group tour prices—are set to rise by 20% to 30% across the board, with “all-inclusive pricing, no shopping, no optional extras” becoming the main theme of travel agency offerings.
Outbound group tour prices surge by 20% to 30%
Currently, the common practice in the tourism industry is to attract customers with ultra-low tour prices, then make up for the shortfall through shopping and optional attraction fees. However, after the implementation of the Tourism Law, which prohibits forced shopping, a rise in tour fees is expected to become common. Prices for outbound group tours to destinations such as Southeast Asia, Europe, America, Australia, Japan, and South Korea are generally increasing by 20% to 30%, with some possibly rising by 100%, and potentially doubling during the National Day holiday.
It is understood that CYTS has taken the lead in launching “National Day” pre-sale products that comply with the new tourism law, offering truly zero optional extras and zero shopping. Among them, outbound tour routes from Shanghai to Sarawak, Kenya, and cruise lines are currently in hot presale. The 7-day tour of both North and South Vietnam plus Angkor Wat includes all fees, tips, and has no shopping or optional extras. In the fourth quarter, CYTS’s flagship product—the Americas Expert Program—will be launched. While ensuring high quality, it also offers exciting activities, such as a 300-yuan consumption card for overseas card spending over a certain amount, a 1,000-yuan discount exclusively for veteran members, and up to 1,000-yuan cashback for overseas spending with Everbright Bank VISA cards.
“The enactment of the Tourism Law is undoubtedly a good medicine for regulating the tourism market and improving service quality, promoting healthy tourism development and encouraging industry insiders to focus on quality rather than quantity. Tourists can also face it rationally—it’s not that the Tourism Law allows travel agencies to raise prices and make big profits, but that tourists can truly start enjoying transparent pricing and honest services.” Huang Jiayan, manager of the Southeast Asia Operations Department 1 of China Travel Service Head Office (Shanghai) Co., Ltd., told a business reporter that since the implementation of the Tourism Law coincides with the “National Day” golden week, the price difference for similar products compared to last year is actually not significant. High-end island leisure destinations, such as the Maldives, Mauritius, Saipan, and Bali, remain at the same prices as last year.
According to reports, the current “National Day” sales situation is good, and routes such as Singapore, Malaysia, and Thailand have also returned to normal prices. For example, the 7-day Bangkok-Chiang Mai tour departing on September 29 is priced at 8,999 yuan, all-inclusive, with no optional extras or shopping overseas, including driver and guide tips. For customers, going to Thailand will no longer involve the “Thai-style surprises.”
In addition to outbound travel, domestic travel will also become more “transparent and fair.” It is reported that starting in September, Lvmama Travel Network and Shanghai Airlines Holidays were the first to respond to the Tourism Law, jointly launching a series of products covering popular domestic travel destinations for long-distance travel, firmly eliminating zero or negative tour fees, and creating a pure play experience of “no shopping, no optional extras.” During the National Day golden week, a series of customized domestic travel products will also be launched to further enhance personalized travel experiences. For example, the Beijing pure play round-trip flight 5-day tour created for the “National Day” golden week is priced at 3,580 yuan, featuring special experiences such as riding a tricycle, exploring hutongs, attending a storytelling show, and a Quanjude roast duck dinner. Accommodation will be arranged at New Century Hotels. This route was priced at 3,380 yuan in September and already met Tourism Law standards. Prices will rise slightly during the golden week.
Shanghai Travel Agencies Launch Differentiated Products
Some consumers believe that the enactment of the Tourism Law will catch travel agencies off guard, but for CYTS, it is a milestone and positive development. A business reporter learned from CYTS Shanghai Branch that they are launching some differentiated products, such as bundled services of flights + visas with transparent pricing, or discounted packages for tickets and transportation, allowing tourists to purchase according to their actual needs.
As the first enterprise in the travel agency industry to propose a safe shopping commitment, CYTS ranked first in the national travel agency group comprehensive strength ranking released by the National Tourism Administration last year. As early as 2011, it launched a safe shopping commitment for tourism: “If goods purchased at designated shopping stores during CYTS outbound or domestic group tours, led by tour leaders or guides, have quality issues or do not match the written product descriptions, CYTS will be responsible for repairing or even exchanging the goods for you.”
Li Jing, Vice President of CYTS Holding Co., Ltd., said: “The introduction of the new Tourism Law will shift the focus of all market players from price to service. We believe that high-quality travel agencies, led by CYTS, will drive Shanghai travel agencies to respond positively.”
Ctrip Is Adjusting Its Products
It is understood that Ctrip, a leading travel enterprise in Shanghai, is also working intensively to adjust its products in accordance with the Tourism Law. “Starting from October 1, all our tour products will be all-inclusive, with guide service fees directly included in the outbound tour fees. Recommended optional extras will also be informed to tourists in advance, allowing them to choose for themselves.”
A Ctrip customer service representative said yesterday that the “National Day” golden week-related routes have already been adjusted. Taking the 10-day UK group tour as an example, the 70-pound tip that was previously paid during the trip will now be collected in advance. In the future, guide service fees for outbound tours will be directly included in the tour fees.
Lvmama Travel Network, which focuses on “independent travel,” stated that Lvmama has always emphasized the creation of quality travel experiences, continuously launching branded quality travel products such as “Happy Lvmama Travel,” “Childlike Joy,” and “Global New Concept,” focusing on tourist experiences with high-standard arrangements for accommodation and dining. The introduction of the new Tourism Law, while regulating the market, will also bring more development space for independent travel. Therefore, for Lvmama, the price factor has not been greatly affected.
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