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Beginning next month, seniors joining tours organized by the Shanghai Great World International Travel Service will sign an additional contract with the company to secure extra benefits.

There are two significant changes compared to the basic contract every travel agency signs with clients. The extra benefits that senior citizens will receive include the elimination of a default penalty when the client can not make the trip due to health reasons and provides advance notice. Previously, seniors had to pay a 5 percent default penalty.

Seniors will also receive free travel insurance when hiring Shanghai Great World International Travel Service.

"It's more complicated but less profitable. Most of local seniors are not rich, and they are quite sensitive to prices, and most of them are not in good health, which adds much uncertainty to the business," said Song Jikun, a manager of Walking in China, a club of the Great World International Travel Service that deals with retired people.

Song said that these extra benefits were designed to give the elderly a sense of security.

A Shanghai Municipal Tourism Administrative Commission official regards the contract as a way of marketing and sales.

"Any contract for the benefit of consumers is encouraged only if the basic contract is not ignored," said the official, surnamed Zhu.

Established in 2000, the Walking in China club has more than 1,000 members. According to Song, two seasons - from April to June, and from September to November - see the largest number of retired tourists.

There are 2.5 million people 60 years or older in Shanghai.