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China clamps down on pricing rorts

Online travel services are set to go through an even greater boom in China as a new law kicks in, in the country, which bans the rampant practice of “zero- or negative-fare tours”, which refers to tour services sold by travel agents at or below cost in order to attract travelers, who are later forced to purchase goods or tip agents during their tours.

Many travel agencies have promised that there will be no purchasing, tipping or paid travel sessions other than those listed in the contracts. Du Yili, deputy director of the China National Tourism Administration, said that rather than considering the changes to be price hikes, “the current rises signal a return to the normal level. It shows that the new law has already had a positive impact,” Du said. “The travel agencies have adjusted their business operations according to the rules stipulated in the law.”

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