I have done organized tours with cycletouring clubs. On those tours, they provide a sag wagon to carry your gear (a limited quantity), they provide a bit of land to put your tent on, and they provide the food ... and the ones I've been on do an excellent job of providing the food.
The tours are also short - done over a long weekend - and have been in an area and on a route I wanted to go anyway.
The cost of those events has been relatively low. One I've done twice worked out to about $50/day ... the one I did last year worked out to about $40/day. That's not counting the 2 tanks of gas it cost me to get to and from the start/finish area.
I enjoy doing a tour like that once a year or so ... it's nice to meet other cyclists, to talk to people who have travelled and toured other parts of the world, and it's also nice not to have to haul all my stuff up and over mountain passes. Plus the food has been incredible!!
But I'm not sure I'd want to do a tour with a whole group of people that was much longer than that. I think 3 days is nice, and about my limit. I also like the freedom of changing my mind and deciding to go over here instead, or stopping at this town rather than the next one down the road, and so on.