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As a result, Tellmeclub ran a lot of business with Taiwan Southeast Asia, Hawaii, Saipan, Guam and Europe. It offered few tours to Australia and North America. And because people dont use the internet with as much facility Tellmeclub started buying advertisements in papers, which seniors read.
Advertising prices from Asahi Shimbun or the Yomiuri Shimbun begin at about 10 million, and Tellmeclub would place one in each of the national papers on the same day. With this huge growth in overhead, Tellmeclub had to work on a volume basis, and so it would buy up all the tickets it would.
Another thing Tellmeclub learned about elderly customers is they didnt care about the destination, just the price tag, so it was easy to sell any destination as long as it was cheap. This quantity strategy could work during the 7 downturn but in the past few years the company get in front of its debts.
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When a member goes bankrupt the Japan Association of Travel Agents refunds customers, however, the amount of refunds depends on the size of the company. Tellmeclub was small concerning capitalization, therefore its limit for refunds would be 1 20 million, which represents less than 1 percent of the total sum of money spent on tours not taken.
Nonetheless, the expert interviewed by the paper thinks the government should inspect discount travel representatives more extensively, although consumers can help themselves by exercising discernment. If you purchase a package for six nights at a foreign exchange with hotel room, round trip airfare and tour guide for just 60,000, dont be surprised if you later find yourself stranded.
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