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Why private tours are much cheaper in China

Many people are curious about why the prices of private tours in China are so cheap compared with in their home countries. Some are suspicious about the trust-worthiness and service standard of the Chinese travel agencies providing private tour services.

Think it this way. What you normally travel to China is to join a tour group on a predesigned travel package. This travel package is like a normal made-in-China product sold in your local stores. The retail price paid can be broken down into whole sale price, labor cost in your home country, profit markup by your local store, and anther transactional costs. Unlike package tours, a private tour in China can not be resold in bulk because it is not predesigned but customized. So you deal directly with the tour suppliers based in China thank for the Internet technology. This way you save a lot of money paid to the intermediaries.

For tips of finding a trust-worthy agency, keep reading Guide for finding good Chinese agencies, travel China for value.

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