A traveler stopped in front of the shopping center entrance.
Less than 30 seconds after getting off the bus, he already wore an expression that suggested he had to make a decision. To go in or not. The guide said, “You can just look around,” but he didn’t know if he meant it or not.
I have watched that scene for a long time. This is not a story from my days working as a guide. It is a scene I still encounter every day in Northern Vietnam. If you are preparing for Northern Vietnam for the first time... This articleI also recommend reading this.
Package tour optionsWhere did fruit and shopping come from?
When a travel agency creates a package tour, the first thing they do is compare prices.
It has to be even slightly cheaper than competitors to sell. That is why prices go down. Airfare, hotel, bus, and guide labor costs must all be included within this price. However, that alone is not enough to break even. This is where 'options' and 'shopping' come into play.
Options, or optional tours, are activities for which travelers pay extra locally. These include things like boat tours, night tours, and watching traditional performances. A portion of this amount goes to the travel agency and guide as income. Shopping works in the same way. If a group is taken to a specific store, a certain percentage of the sales is paid as profit. This is precisely why lacquerware shops, jade stores, and coffee plantation-operated stores are included in package tour itineraries.
The structure is simple. Low base price + covering all costs with local revenue. Guides make a living by adding commissions to their low base salaries, while travel agencies recover the margins locally that cannot be covered by the basic selling price.
Consumers have also chosen this structure.
What is interesting is that this structure is not a problem unique to travel agencies.
Consumers compare prices. Given the same itinerary, they choose the cheaper option. While some may question, “Why is this so cheap?”, most simply press the booking button. As a result, the market moves toward low-price competition, and travel agencies make up for the lost revenue elsewhere.
In a sense, consumers are co-designers of this structure. The implicit agreement, "I'll go low, but I'll spend some locally," has evolved over time into an industrial structure.
The real problem is transparency.
This structure itself is not bad.
Travel agencies designed this model for rational reasons, and consumers have chosen this structure due to the price. The problem lies in the fact that this 'contract' is not explicitly stated. Travelers do not receive an explanation before departure stating, "This is the profit structure of this trip." Consequently, they end up hesitating in front of shopping centers.
Do I feel bad for the guide if I don't go in? Do I have to buy something if I do? That awkwardness arises because no one told me clearly. It is not a problem of structure, but a problem of transparency.
Neither side is right or wrong.
Ultimately, this is not a story about a bad system. It is a story about what you want.
If you want to fill your itinerary at a low cost and enjoy local shopping as part of the trip, a package tour is a perfectly reasonable choice. On the other hand, if you want to personally select every detail of the itinerary and want your guide's recommendations to come from genuine sincerity rather than a commission, you need a different type of travel.
The important thing is to know the structure upon which the method you have chosen stands. The more you know, the more comfortable your choice becomes, and a comfortable choice creates a good journey.
For those who wish to experience Northern Vietnam without a package tour, please refer to the '‘Tour Inquiry‘Please consult through [link/contact]. A guide with 10 years of residency will personally design your itinerary.
The author resides in Ha Long Bay and works as a tour guide, operates a travel agency, and engages in local investment.
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