With the peak tourist season approaching in July, the Beijing Modern Business Newspaper reports the cost of traveling to China's most popular locations is set to soar.

According to the report, travel agents say increasing demand coupled with rising transportation costs have caused group tour prices that depart after July 10 to rise by 20%. Air and train fares have also increased by almost 500 yuan.

The report also found that the high summer tourist season has the biggest impact on domestic destinations, with costs at popular spots increasing before the crowds arrive.

"Airlines, hotels and businesses in scenic spots can feel the pulse of the traveling market very accurately," said Tian Ling, General Manager of the China Youth Travel Service's domestic department.

Tian Ling said the continuing popularity of places like Guilin and Lijiang meant travel agents could only get 20% discounts on transport during peak periods, compared to 50% before summer.

Some travel agents have tried to increase their market by introducing special family-friendly tours. Small group tours for just two to four people are also now available to Kunming, Zhangjiajie and Chengdu.

(CRIENGLISH.com July 3, 2006)