Wendy Zhang/ Shanghai Daily news

Successive price cuts for European tours after the National Day holiday have brought the prices to the bottom, said an industry analyst yesterday, as reported in the Beijing Morning Post today.
The seven-day tour to Germany and Australia is only 8,980 yuan (US$1,082) and the eight-day tour to Germany, France, the Netherlands, Belgium and Luxemburg is 9,180 yuan.
European tours are usually around 8,000 yuan, so the current prices are already very close to the bottom, with only thin profits for travel agencies, said Xu Bing with the marketing department of the Beijing Shenzhou International Travel Agency Group.
Tour prices are mainly made up of airfares, local accommodation costs and entrance ticket prices at scenic spots. "Round-trip airfares usually cost 4,000-5,000 yuan, half of the total charges," Xu explained. Except for charter flights with airfare discount of 1,000-2,000 yuan, there are seldom airfare cuts for regular package tours, Xu added.
Hotels in Europe seldom reduce prices and domestic travel agencies have to choose distant hotels to save costs, he said, adding that hotels in the downtown areas usually charge 80-90 euros per night while those in suburban areas charge 50-60 euros. Therefore, there is limited room for the tour prices to be further reduced, he stressed.