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Zero-dollar tours are strictly illegal in China, as they are associated with exploitative practices to coerce tourists into spending money Salespeople would officially sign contracts with customers to sell tour packages at higher prices, but actually charge customers much smaller fees. When a CCTV undercover reporter signed up for a five day, four night tour from Chongqing to Tengchong, Yunnan to visit several destinations in the area, the price listed on the CTS website was 1,500 yuan ($232), but she was only charged 780 yuan ($121) when registering in person. The undercover reporter was even offered an additional 100 yuan ($15) discount. She was told flying directly to Dali, a famous city near Tengchong, would be cheaper. The ticket price was 980 yuan ($151), but there was a buy one, get one free promotion. The price listed on the contract was also 1500 yuan, and the undercover reporter was informed that the discrepancy between the price charged and the price listed on the contract was to deal with potential inspections from tourism officials. The price listed on the contracts customers signed with CTS was higher than what they were charged in an attempt to hide the practice from authorities To ensure that customers joining tours would have enough money to spend on souvenirs, participation in the tours were limited to people between the ages of 26 and 65. According to an insider, customers were divided into three categories based on their perceived purchasing power, often associated with where the customers were from within China. After the contract with CTS was signed, the tourists were then passed over to third-party travel agencies in Chongqing or Yunnan. These agencies paid CTS a commission, the size of the commission depended on the overall perceived purchasing power of the tourists.
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