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“Zero-fee” Tours

By------ 杨郑晶 张杰

孙瑞杰

由 NordriDesign 提供www.nordridesign.com

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The Facts Are ——

Hongkong female guide's abu

sive event香港女导游骂

人事件

Former national c

hampion Chen Yo

uming's sudden d

eath in Hongkong

event

前乒乓球国手陈佑铭香港猝死事件

The tourists of the "Five-day tour of Hongkong and Macao" were abandoned airport eve

nt港澳五日游，游客

被弃机场事件

July 2010July 2010

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Zero-fee tours

The local travel agencies( 地接社 ) in destination do not charge

the group travel agencies （组团社） for reception expense

s,but to offset the price and get profit by getting

rebate through the consumption of tourists.

touristslocal travel

agencygroup travel agency guide

shopping mall

optional field

tourfee

Commissions

人头佣金

Businessman head fee

商人头费

Consumption

Consumption

Rebate( 回扣 )

Rebate

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Classification of "Zero-fee Tours"

•Fare negative

(负团费）•Zero fare

（零团费）•Zero economic

profit

(零利润）

2 31

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As the result of over-competition

of our tourism market,

"Zero-fee"tours are considered h

armful to our tourism market ord

er and healthy progress of touris

m industry.

Economic Social

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Price War

Per capita income:

1999-------5854RMB2005----10493RMB

Economic perspective

The theory of supply and demand

Reason 1

Supply1990------------1063 travel

agenciesProfit margin---2.19%

1997------------4986 travel agencies

2004----------15339 travel agencies

Profit margin—— -0.03%

Demand

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Unreasonable market structure

Little salary+Rebate+Tips

Consumers are unable to fully understand what is contained in the tour and what is the real price.

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Psychology recognizes:

We tend to do what others do.

You are instigated by others or situations.

What you buy is for comparison.

Show offYour consumption is the proof to show

that you are rich.

Our suggestion: Make decision yourself rationally.

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Lawyers want to say something.

No laws

regional protectionism

Zero-fare

 local regulations

rules of local governments

local travel agency

Group travel agency

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What are the policymaker thinking about?

Does the system in practice runs well? NO

What are the ways?

4

How to change the system?

How to balance the profits between parties?

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Cycle graph

profits

policies

tour

laws;regulations;rules

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lawyer 、 psychologist 、policymakereconomist

They explain the phenomenon in the view of what they major in.

But the final reason may be profits.The theory of Rational person

So the solution should not neglect it.

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We are on the way!--solutions

•That is what we tourists

can do.•Never choose this kind of

group.•Do not do impulsive

consumption…and so on

•Take care of the balance of

profits.•Establish a new system of

pay and transfer•Make the price clear•Tour police

•Develop the tourism industry.•Development solve problems•Development –new profits—old profits maybe neglect—problem

may be solve

Thank you!