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As a number of its Japanese clients were abroad on package tours on March 2 7, discount travel firm Tellmeclub filed for bankruptcy. Due for, all these tourists had return airplane tickets that are valid but would need to pay out of pocket for lodging that were originally included in the package.

One 7 1-year-old girl, quoted by the Mainichi Shimbun on April 1 , said she'd already shelled out 12 1,500 for five nights in Thailand with her husband, but Tellmeclub called her the day before their March 2 8 death to say the tour was canceled. When she followed , it gave her a telephone number to call to learn about a refund but nobody answered.

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As of April there were about 700 class 1 travel agents in Japan, meaning. According to Tokyo Soko Research, 2 7 travel companies went bankrupt because of competition, which is fierce among discount travel agents such as Tellmeclub during 201 6.

It had also hired 50 new people that were set April 1, to start work. Since its bankruptcy documents were filing, it was taking orders. The Mainichi Shimbun claims that the warning signs appeared several years ago. Back in 201 these details 4, Tellmeclub was accused of improper accounting methods for reporting as it was in the red, it was in the black.

Starting about a year ago, there were other, more threatening signs of trouble, when the company started a campaign for paying early and in cash (genkin ikkatsu nykin). The thought was that if customers paid the complete amount in cash and booked, they'd be given a discount.

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In the last months of Tellmeclubs presence, clients had to pay at the time so as to be given a discount of making the reservation, and in cash, which means going into the bank or post office and creating a remittance. Many Tellmeclub clients who were awaiting trips this spring had paid as far back as September.

When airlines are not able to meet some vacant seats and offer big discounts travel agents dont cover air tickets before departure. Payments had been already received by tellmeclub weeks or months . In accordance with traveling author Kotaro Toriumi through an interview on TBS Radio, but this practice has become more difficult in recent years owing to a few important improvements: There are now more foreign tourists coming to Japan, which means there are fewer vacant seats going out of Japan on return flights; and airlines are always downsizing aircraft so as to make booking more efficient.

In terms of accommodations, tour companies dont cover rooms until after the stay is over. One of the last straws that led to Tellmeclubs failure was the hotel bills that came due Among the travel periods of the year, break.

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It resold them and only bought discount tickets by airlines in bulk. Over the years, more discount travel companies emerged and did the exact same thing, and then airlines started selling their own tickets on the internet at costs.

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