On Oct 30, China’s National Tourism Administration held a conference announcing regulation of unreasonably low priced tourism services. As a result, some online tourism enterprises indicated that they had removed the relevant products one day later.
The tourism administration at the conference singled out nine large travel enterprises, including Tuniu, Tongcheng and Ctrip, which then took steps to delete more than 800 low-price services from their websites.
In recent years, unreasonably low priced tourism products have been a chronic disease of the tourism industry. Taking the hot line Thailand tour as an example, in spite of travel agencies’ promises of no forced shopping, the fact is that low-quality catering and forced shopping programs are part of most tours.
On Oct 26 the National Tourism Administration held a meeting with online tourism enterprises including the Travel Channel of Alibaba, Qunar and Cncn Travel, warning them to immediately rectify their products.
Having received the order, Cncn Travel has already eliminated unreasonable low-price products and strengthened the review over new products on line. And Alibaba also announced that it will thoroughly check relevant products and remove them as necessary.
Ctrip, a leading provider of travel services with more than 10,000 travel agencies online replied by saying that they set up a minimum price limit system before putting any tourism services into operation.
The system can automatically calculate the minimum prices based on big data including real-time market conditions. In cases of unusually low prices, the system automatically sends warnings to operators for further review.