To examine the current situation of local Chinese tourist guides, the writers took a field trip of a 4-day Hainan tour and recorded all the episodes of it. Based on the case analysis, the article intends to illustrate the strategy of "Low Price Compet...
To examine the current situation of local Chinese tourist guides, the writers took a field trip of a 4-day Hainan tour and recorded all the episodes of it. Based on the case analysis, the article intends to illustrate the strategy of "Low Price Competition", currently adopted by local Chinese travel agencies, which will cause a fatal damage to the tourism industry in the long run. That is to say, 1) tourist guides' benefit will be directly sacrificed as their wages will be reduced to the price cutting competition; 2) tourist guides being exploited might earn commission and kickbacks from tourists; 3) suffering tourists might lose confidence to travel agencies; and 4) tourists might choose group traveling. At last sales volume of travel agencies will become lesser and the future development will be totally declined. To tackle these problems, the writers suggest that local Chinese travel agencies should rally the salary system of tourist guides and improve their treatment in order to attract and keep up more excellent industrial service providers.