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While a number of its customers were still abroad on package tours on March 2 , discount travel firm Tellmeclub filed for bankruptcy. Due to the manner its excursions are paid for, all these tourists had return plane tickets but would need to pay out of pocket for lodging which were contained in the package.
One 7 1-year-old woman, quoted by the Mainichi Shimbun on April 1 , stated she'd already shelled out 12 1,500 for five nights in Thailand with her husband, but Tellmeclub telephoned her the day before their March 2 8 death to say the tour was canceled. When she followed , it gave her a phone number to call to find out about a refund but no one answered.
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As of April last year, there were approximately 700 course agents in Japan, meaning traveling companies who can sell products such as package tours. According Tokyo Soko Research, two 7 travel companies went bankrupt through 201 6 due to competition, which is fierce among discount travel brokers such as Tellmeclub to.
It had hired 50 people that were set to start work. It was still taking orders as the company filed its bankruptcy documents. The Mainichi Shimbun says the warning signs appeared several years ago. Back in 201 4, Tellmeclub was accused for reporting when it was in the red it was in the dark.
Beginning about a year ago, there were other, more threatening indications of trouble, once the company started a campaign for paying early and in cash (genkin ikkatsu nykin). The idea was that if customers booked and paid the complete amount in money, they would receive a big discount.
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Clients had to pay at the time of making the reservation in order to be given a discount, also in money, which means going to the bank or post office and creating a remittance. Tellmeclub customers who were looking forward to trips this spring had paid as far back as September.
Travel brokers dont pay for airline tickets before death until a few days, when airlines are desperate to meet some empty chairs and offer discounts to tour businesses. Tellmeclub had received payments weeks or months . According to traveling author Kotaro Toriumi during a meeting on TBS Radio, however, this practice has become more difficult in recent years thanks to a couple of significant improvements: There are more overseas tourists coming informative post to Japan, which means there are fewer empty seats going from Japan on return flights; and airlines are continually downsizing aircraft in order to make booking more efficient.
In terms of accommodations, tour companies typically dont cover rooms until after the stay is over. One of the last straws that led to Tellmeclubs collapse was all the hotel bills that came due Break, among the heaviest travel periods of the year.
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It bought discount tickets by airlines in bulk and resold them. Over the years, more discount travel companies did exactly the exact same thing and emerged, then airlines themselves started selling their tickets over the internet at costs that were more affordable.