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More Cash Needed to Travel as Deals End


1-Aug-2003 -
Travelers will begin paying more for both domestic and overseas tour packages beginning today. The increased charges are a result of airlines raising fares, said local travel agencies in Shanghai.

Officials from Shanghai travel agencies estimate prices will rebound to the pre-SARS level, ending the preferential deals aimed at bolstering the tourism sector.

To rejuvenate the tourism industry, stagnant for months due to SARS, local travel agencies cut prices for most travel packages in July.

With the attractive bargains and the repressed desire to travel, a large wave of tourists vacated the city last month.

"The number of people applying for trips was as high as that of last July," said Peng Haibin, sales manager of the Shanghai Dazhong International Travel Service.

Peng also said that airlines will raise fares by an average of 10 percent, effective today.

"The companies will raise the prices for those flying to the favored tourism destinations, such as Qingdao, Kunming and Dalian," Peng said.

The price hikes of tour packages will range between 10 and 20 percent.

Higher costs will also affect overseas travel.

Hong Kong-based Dragon Airlines raised ticket prices today, and said the 3,600 yuan (US$433) package for two tourists on a four-day trip to Hong Kong, which attracted thousands of Shanghai vacationers, has ended.

Another reason for the price hike of outbound trips is the increased charge of the overseas travel counterparts.

"We received a notice earlier that our overseas partner would raise the service charge on August 15, and we have to adjust the package price in line with the changes," said Chen Shuiqin, outbound travel manager of the Shanghai China Travel Service.

She said a five-day trip to Bali, Indonesia, currently costs 4,500 yuan, but was more than 6,000 yuan before SARS.

"The pre-SARS price will soon be back," she said.
1-Aug-2003 -

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