> For the complete documentation index, see [llms.txt](https://david-oh.gitbook.io/insta-land/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://david-oh.gitbook.io/insta-land/market/3.-problems-with-package-tour-products.md).

# 3. Problems with package tour products

The structure of group package travel products is currently dominated by large Online Travel Agencies (OTAs) who leverage their buying power to purchase flights and hotels in bulk, offering low-cost travel packages to consumers. However, this structure has led to a complex and opaque distribution system where various industries are interconnected, resulting in intricate interactions between each step of the travel process. Furthermore, this dominant structure often leaves little room for local vendors and guides to make a profit, leading to a strained relationship between travelers and guides and the potential for conflict.

Consumers prioritize price comparisons when selecting low-cost travel products. However, this intense price competition creates pressure on large travel agencies to develop increasingly low-priced travel products, ultimately leading to lower quality services and a subpar travel experience. Therefore, this structural problem not only causes vendors and local guides to suffer financially, but also potentially leads to a strained relationship between travelers and travel agencies.

<figure><img src="/files/yIBAjeH53kpBOVSi0OnZ" alt=""><figcaption></figcaption></figure>

Despite the convenience and high demand for package travel, the current trend is still towards low-cost options. Therefore, it is crucial to re-evaluate the current travel industry structure to provide more sustainable and higher quality travel experiences for both travelers and local vendors. This shift requires industry-wide efforts to transform the existing travel product structure towards a more equitable model that benefits all stakeholders. Specifically, rationalizing guide fees and restructuring revenue models in the travel industry is necessary for long-term sustainability.