China has begun a systematic crackdown on low-cost tour packages. The state tourism body China National Tourism Administration (CNTA) announced a plan to crackdown on unreasonably low-cost tour packages. The model involves tourism operators charging below-cost prices for group tours. But they eventually make most of their profit by getting rebates from retailers where the travel agencies take the tourists to shop. The low-cost trips with shopping account for over 90% of China's domestic tour group package business, according to a report of Indian news website IBTimes. |