Jane Chen / Shanghai Daily news

A 15-day economy tour to 10 European countries will be closed to local tourists as a leading overseas organizer for the service is cancelling economy tours services this month, today's Shanghai Morning Post reported.
The Hamburg-based CAISSA Touristic (Group) AG is the overseas partner of many local tour agencies for European tours, which sell for 13,300 yuan (US$1,608).
Starting November 3, CAISSA's suspension will affect tourists in Shanghai and the East China area, as well as the business of six local tour agencies in Shanghai, including Shanghai China Youth Travel Service and China Travel International Ltd. 
However, there are other agencies in Shanghai continuing the service, the Shanghai Morning Post report said, but they have switched to other overseas agencies in Europe.
The purpose of CAISSA's suspension is to avoid the negative influence of the euro-yuan exchange rate fluctuations, according to CAISSA president Chen Zhongyang.
As of late October, the value of the euro has risen steadily against the Chinese yuan and nearly hit a record high of 10.8 yesterday morning.  CAISSA has to suspend the service to avoid risks resulting from possible further rate rises.
CAISSA's economy route was already in the red in October, Chen said, noting, "if the service continues this month, we can't rule out the possibility of a loss of some 400 yuan for every traveler we receive."
In September, on the same route, the company generated a profit of 100 yuan from every customer, he noted.
Industry analysts predict CAISSA would soon resume the service after this month's business adjustment, considering the huge potential of China's European travel market.
However, industry sources said the economy European tour has been losing its appeal for local people.
After the weeklong National Day holiday, a tourism peak season, Shanghai Airlines Tours Service, a leading travel service agency in the city, has organized only 23 customers for this trip, said Wang Yan, who is in charge of the company's overseas business.
It is a sharp contrast with the hot market responses in September when the route was first opened, he added.
Prices of other European routes have also plunged.  The price of a nine-day three-country tour to France, Italy and Morocco, for example, has slipped from September's 13,500 yuan to 12,000 yuan.
The price cuts do not seem to be effective in attracting the customers, however, because local travelers complain the current prices are still too high.
As a result, some local agencies are returning back to the tours to South Asia areas, Australia and New Zealand, industry sources said.