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While a number of its Japanese customers were still on package tours on March 2 , discount travel firm Tellmeclub filed for bankruptcy. Owing to the way its trips are paid for, all these tourists had return plane tickets but would have to pay out of pocket for lodging which were included in the bundle.
One 7 1-year-old woman, quoted from the Mainichi Shimbun on April 1 , said she'd 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 was canceled. It gave her a telephone number to call to find out about a refund but no one answered when she followed .
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As of April last year, there were this link about 700 course 1 travel agents in Japan, meaning travel firms who can sell products like package tours. According to Tokyo Soko Research, 2 7 travel businesses went bankrupt during 201 6.
It had also hired 50 people who were set April 1, to start work. As the company was filing its bankruptcy papers, it was taking orders. The Mainichi Shimbun claims that the warning signs appeared several decades ago. Back in 201 4, Tellmeclub was accused for reporting when it was in the red, it had been in the black.
Beginning about a year ago, there were other, more threatening indications of trouble, when the company launched a campaign for paying early and in cash (genkin ikkatsu nykin). The idea was that if clients booked and paid the complete amount in money, they would receive a big discount.
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Customers had to pay in the time in order to be given a discount of creating the reservation, also in cash, so going into the bank or post office and making a remittance. Tellmeclub customers who were looking forward to trips this spring had paid as far back as September.
Travel brokers typically dont cover air tickets before departure until days, when airlines are not able to meet some empty chairs and offer large discounts. Tellmeclub had received payments weeks or even months . In accordance with traveling author Kotaro Toriumi during a meeting on TBS Radio, but this practice has become harder in recent years thanks to a few important improvements: There are more foreign tourists coming to Japan, meaning there are fewer vacant seats going from Japan on return flights; and airlines are continually downsizing aircraft in order to make booking more efficient.
In terms of lodging, tour companies dont pay for rooms until after the stay is over. One was the hotel bills that came due for tours that took place during the New YearsOne of the year's heaviest travel periods, break.
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It only bought discount tickets from airlines in bulk and resold them. Over the years, more discount travel firms did exactly the same thing and emerged, then airlines started selling their tickets on the internet at prices.