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This year’s earlier surge in oil prices meant a big knock-on effect in fuel surcharges on long-haul airline tickets |
JAPAN. Nippon Travel, a leading Tokyo travel agency which operates overseas tours, predominantly to northern Europe, halted its operations on 10 September, according to Travel Journal International (TJI) Online*.
The travel agency, a member of the All Nippon Travel Agents Association (ANTA), plans to file for bankruptcy with the Tokyo District Court.
TJI reported that, in a letter to customers and clients, the company explained that it had become incapable of making payments for air tickets and hotel rooms due to the sudden drop in sales caused by declining overseas travel linked to hikes in fuel prices. The travel agency has cancelled all tours from 10 September.
The Â¥60 million (US$567,000) of customers’ money held for tours scheduled to depart after 10 September will be compensated under the Japan Association of Travel Agents’ security bonds system.
Established in January 2003, Nippon Travel posted ¥2 billion (US$18.9 million) in annual sales in fiscal 2005, of which 80% were from online business.
It had planned to be a listed stock company by 2010.
*Editor’s note: For the full report please visit https://tji.tjnet.co.jp. The Moodie Report works closely with TJI Online, the pre-eminent provider of information on the Japanese travel industry. Week in, week out, it provides timely and sharp analysis of the all-important Japanese travel market – international and domestic. It comes with our highest recommendation.
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