Travel agencies face dilemma
20/4/2004 17:35
Sudden airfare increases have driven local travel agencies to a
dilemma, with long-distance domestic tours receiving a cold shoulder, the
Jiefang Daily reported today.
According to new air-pricing regulation
effective today, domestic airlines are allowed to cut airfares by a maximum of
45 percent and to sell tickets at prices of up to 25 percent more than their
face value.
In order to maximize profits for the upcoming May Day holiday,
all domestic airlines have decided to raise airfares by 25 percent. However,
local travel agencies received sign-up packages for tours as of two weeks ago,
and haven't prepared for the airfare hikes.
Airfare from Shanghai to Chengdu
currently rose from 1,460 yuan to 1,610 yuan (US$176-US$194), driving up the
tour prices to Jiuzhaigou by 300 yuan. Airfare from Shanghai to Beijing
increased from 1,030 yuan to 1,130 yuan, inflating tour prices to Beijing by 200
yuan.
"If the tour price increase is less than 100 yuan, we can cover the
costs, but we cannot accommodate increases of up to 300 yuan," said a spokesman
with a local travel agency, adding that at present, they have to negotiate with
consumers, expecting them to pay half of the additional costs.
However, some
consumers are planning to cancel their trips.
To date, local travel agencies
are scrambling to change the tour prices on their advertisements, but fewer
locals are interested in the long-distance domestic tours. Local residents are
turning to shorts trips around the city, doubling the local hotel prices.
The Shanghai Sightseeing Bus Center has offered 114 tourist itineraries for
the weeklong holiday, with 559 buses available.
Wendy Zhang/ Shanghai Daily news
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