Travel agencies slash prices after holiday
11/5/2004 17:37
Many travel agencies in Shanghai have cut their prices by up to 30 percent
after the Labor Day holiday, especially on overseas and domestic long-distance
tours, the Shanghai Evening Post reported today.
After the holiday, although
short trips around the city are still popular, overseas and domestic
long-distance tours are losing favor.
Hainan tours saw the largest price
reductions after the holiday, from 2,500 yuan (US$301) to less than 1,000 yuan,
or more than 50 percent.
The large price cuts have raised concerns among the
public that local travel agencies have made huge profits during the golden week
holiday.
However, travel agencies said they are getting unfair treatment.
"Accommodation and traveling expenses soared in Hainan during the holiday,
so we have to raise prices," said a spokesman with a famous local travel agency.
"We, together with two other travel agencies, signed a one-year plane-charter
contract with the airlines, but after the holiday, we can sell only 40-60
percent of the air-tickets, so we have to cut prices," he pointed out. All the
travel agencies pricing the tours at 700-800 yuan are losing money, he said.
"We are involved in an unfavorable competition, because if you don't run the
business, many others will," he stressed, adding that they have to shoulder the
risks themselves.
"The current price slump is temporary, and we are expecting
a booming market by the end of the month or early next month when comfortable
weather will encourage more people to travel during their annual leave," said a
manager with another travel agency.
Wendy Zhang/ Shanghai Daily news
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