Statistics say that approximately five travel agencies go bankrupt every year in Russia. But 2014, of course, broke all records in this regard. Experts say bankruptcy data cannot be considered an accident. Why are tour operators going bankrupt? What causes led to a crisis in the services market? How to protect yourself when traveling abroad? You can find answers to your questions by reading this article.
Reasons for Bankruptcy
At the height of the holiday season, all vacationers were following the news in alarm. Why are tour operators of Russia going bankrupt? The media unanimously say that the fault is the poor state of the economy of our country. The fall of the national currency, the geopolitical crisis and the decline in demand for services among the population are the main default factors for individual firms, industry experts say. But is it really so?
Invalid Management Decisions
The Federal Tourism Agency published data according to which in the first quarter of 2014 the flow of tourists decreased by 4%. Suppose that for individual tour operators the loss of customers for a short time reached 15 or 20%. However, in theory, these figures could not lead to fatal consequences for the company if it has the necessary reserves. Thus, we can assume that one of the reasons that accelerated the ruin of the tour operator is the incompetence of the leadership.
Conjuncture
Travel business is a high risk area. The company is committed to paying expenses, planning ahead. For example, she orders a charter flight and buys hotel seats in advance. Then, with all his might, he tries to sell permits, but he can not always find the number of customers he needs. That is why there are so-called "burning" tours, designed to recoup at least part of the cost.
Already at the beginning of this year, it was clear that the demand for the services of firms would decrease significantly. Those who rationally approached business planning reduced costs and stayed afloat. However, some businessmen were too optimistic about the future, hoping for high earnings in the season. Unfortunately, tourists did not live up to their expectation - this is the answer to why tour operators go bankrupt. A jump in the dollar was at this time a convenient excuse.
Intentional actions
There is an opinion that some unscrupulous companies used the crisis situation to their advantage. That is, against the background of the ruin of individual firms, they declared themselves bankrupt, collected seasonal jackpot and stopped activity. However, experts in the tourism industry believe that the ruin of tour operators in this scenario is unlikely. If earlier fraud flourished all the time, now law enforcement agencies are conducting serious checks for intentional fraud.
Rise in price of permits
The next reason why Russian tour operators go bankrupt is the increase in the cost of vacation abroad. Today, due to the unstable economic situation in the country, citizens are afraid to buy expensive tours. First of all, the fall in demand was in countries such as Tunisia, Germany or France. “Massive” destinations, such as holidays in Turkey and Egypt, remain popular. Nevertheless, firms' revenues are falling. If earlier Russians gladly took expensive trips, now they are trying to find something cheaper.
The rise in price of air tickets
Ruined tour operators claim that Russian airlines also contributed to their default. Aeroflot, Transaero and others tie the calculation of prices for their services to the exchange rate. And often the cost of tickets is growing even faster than the course itself. When booking charter flights, operators contribute 15-20% of the total cost in advance. It is clear that if the company has not gained enough customers, then it loses the security. And those who counted on the same number of tourists as last year suffered significant losses.
Lack of credit
Not all insurance companies renegotiate contracts with tour operators, so each of them is at risk. Many bankrupt companies worked until the last, hoping for the support of the bank. The nervousness prevailing in the tourist market forces banks to refuse to issue loans to unreliable companies.
Prohibition of travel abroad
The next answer to the question of why tour operators in Russia go bankrupt is a ban on travel abroad to employees of law enforcement agencies and the Ministry of Foreign Affairs. It is this part of the population that is the most wealthy and has never spared money on vacation for itself and its family. The infamous Labyrinth and Neva companies previously participated in government orders. Firms provided vouchers for government employees. And now partly connect their ruin with the loss of these customers.
Lack of licensing
Why are tour operators going bankrupt? Today, everyone can open their own travel company without any problems. To do this, just register as a legal entity, rent an office and connect to the Internet. The state no longer regulates the tourism industry and does not have significant leverage. Travelers are protected only by the insurance fund created by large companies. It is from him that funds are taken to close the debts of burnt colleagues. However, there are problems. For example, the Ascension insurance company worked with Labyrinth, Neva and many other operators. She took on an unbearable burden, signing more contracts than she could pay. As a result, tourists risk being left without money, since by law all debts will be paid proportionally: half or 30% of the total cost.
How to plan a trip abroad
Today, after the collapse in the travel industry market, we take the choice of a company more than seriously. In order not to be in the ranks of deceived travelers left to their fate, it is necessary to carefully weigh all the circumstances. First of all, you should find out which tour operators can go broke, and which confidently continue their work.
Tips for those who want to find a reliable company
- Consider the offers of several companies offering trips to your chosen destination. Too low a price should alert rather than please. The exception, for obvious reasons, are “hot” tours.
- Good reviews of friends and acquaintances about their trip are not an indicator of the reliability of the company. As experience has shown, ruined tour operators had no problems before and fulfilled their obligations. To make sure that you’ve made the right choice, take the time and browse the websites. It is better to look for news about the work of the company on independent portals, as on their resources tour operators post only positive reviews.
- Make sure that the company you have chosen is not experiencing financial difficulties. Remember that the relationship between the operator, the hotel and the airline is built on special principles. As a rule, the company makes payments once a month, not taking into account the schedule of arrival of tourists. And it’s not at all a fact that your money will go to pay for your accommodation and flight. The operator can spend them, for example, on advertising or the salary of employees. Delayed payment due to financial difficulties can lead to the fact that only immediately before departure you will find out that your ticket is invalid.
Increasingly, people in our country travel abroad on their own. And this is understandable - bankrupt tour operators could not fulfill their promises, and travelers were in a difficult position. Agree that the biggest plus of contacting a travel company is a trip without hassle. They will buy tickets for you, get a visa and reserve a room, select an excursion program. But more and more often there is a risk that you will not only not rest, but also get a mountain of problems. That is why many tourists are no longer looking for the reasons for the ruin of tour operators, but take matters into their own hands. Fortunately, with the development of the hotel booking service and airline tickets, you can prepare for the trip without even getting up from the couch.