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While a variety of its customers were overseas on package tours, on March 2 , discount travel company Tellmeclub filed for bankruptcy. Owing to the manner its trips are paid for, these tourists had return airplane tickets that are valid but would have to pay out of pocket for lodging that were included in the package.
One 7 1-year-old girl, quoted from the Mainichi Shimbun on April 1 , said she had already shelled out 12 1,500 for five nights in Thailand along with her husband, however, Tellmeclub telephoned her the day prior to his March 2 8 death to state the tour had been canceled. It gave her a telephone number to call to find out about a refund but nobody replied when she followed .
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As of April last year, there were about 700 course agents in Japan, meaning travel firms who can sell products such as package tours. According to Tokyo Soko Research, 2 7 travel companies went bankrupt due to competition, which is fierce among discount travel agents such as Tellmeclub during 201 6.
It had hired 50 men and women that were set April 1 to start work. It was taking orders Since the business filed its bankruptcy papers. The Mainichi Shimbun claims the warning signals appeared several years ago. In 201 4, Tellmeclub was accused of improper accounting practices for reporting when it was actually in the red, it was in the black.
Starting about i was reading this a year ago, there were other, more ominous indications of trouble, when the company launched a campaign for paying premature and in money (genkin ikkatsu nykin). The thought was that if customers booked and paid the complete amount in money, they would receive a informative post discount.
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In the past couple of months of Tellmeclubs presence, customers had to pay in the time in order to be given a discount of making the reservation, also in cash, so going to the bank or post office and making a remittance to Tellmeclub. Tellmeclub customers who were awaiting trips this spring had paid for them as far back as September.
When airlines are not able to meet some vacant seats and give discounts to tour businesses travel agents typically dont pay for airline tickets until a few days before departure. Tellmeclub had already received payments months or even weeks beforehand for these chairs. According to travel writer Kotaro Toriumi during an interview on TBS Radio, however, this practice has become more difficult in recent years owing to a couple of significant developments: There are now more foreign tourists coming to Japan, which means there are fewer empty seats going out of Japan on return flights; and airlines are continually downsizing aircraft in order to make booking more efficient.
As for accommodations, tour companies dont pay for rooms until after the stay is finished. Some of the last straws that led to Tellmeclubs collapse was the hotel bills that came due for tours which took place One of the year's heaviest travel periods, break.
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It resold them and bought discount tickets in bulk. Over the years discount travel companies did exactly the same thing and emerged, and then airlines started selling their tickets on the internet at more affordable prices.