My wife and I have done a supported week long tour a few times run by a cycling association here in Quebec, their prices have gone up a bit over the years but are about $800. I believe that they are exceptionally good at logistically organizing this sort of thing and are successful at this price range (its gone up about $100 over the last 5 years or so), and there are usually about 1500-2000 people doing it. A certain percentage go the hotel route, a certain percentage go the "have someone put up a tent and take it down every day for you" route (adds about $300 or 350) and the rest of us use our own tents.
no matter what, you can understand how a company has to run all the meals, all the logistics of moving everything (lots of trucks) have all the employees to put stuff up, take stuff down, set up this, set up that, tear down this and that, have insurance, organize shuttle buses for mech or injuries to transport people and bikes, school bus shuttles for getting people into town if we camp far away etc etc.
In other words, a heck of a lot of logistics----now why this american one costs 1200 and ours 800? I suspect its an organisational thing and / or the fact that this organization here is a bicycle advocator , Velo Quebec, so they first and foremost put promoting biking and getting people out there biking, although I very much suspect they are very efficient and still make it profitable at the same time as running a good fun operation.
I agree completely that for especially 1200 bucks, you can buy all your camping stuff and do this own your own--but thats the whole thing, this is for people who dont want that, and enjoy the social side of it. Le Grand Tour , the name of the velo quebec supported tour, is very social and fun. We see the same faces year after year.
In mycase, my wife isnt the sort to do a self supported tour, so getting out to do this is an incentive for her to ride more, and I do it so that we do a bike trip together.
all this doesnt really address why your event costs 50% more.....its probably because people pay it, so they can, and/or there is an expected amount of profit that they want to make so they have this price (which leads back to if people pay it, then it works)
here is the english web page for Le Grand Tour this year
http://www.veloquebecvoyages.com/e/d...the-grand-tour