Less capital investment by travel agencies has both advantages and disadvantages for the development of travel agencies.

It will reduce the overall quality of China's travel agencies, affect the international competitiveness of China's tourism industry and reduce the service quality of travel agencies.

Travel agencies have less capital investment and low industry barriers. If the government does not consciously control the quantity, it will grow rapidly, thus forming fierce market competition.

At present, the low-price competition of travel agencies is not conducive to the healthy development of the entire travel agency industry. We need to fully understand the harm of low-price competition in the travel agency industry, find out the reasons and think about countermeasures. Through the joint efforts of the tourism administration department and the travel agency industry, we can get out of the market cycle of low-price competition, comprehensively enhance the competitiveness of the entire travel agency industry, and make the whole industry develop healthily and orderly.