- What happened?
- Why did this happen, and should we expect new bankruptcies?
- How to protect yourself as much as possible from risks before departure?
- How to reimburse funds already paid and what to do if the bankruptcy of a travel agency caught you abroad?
Travel agency "Neva", one of the oldest and largest travel companies in Russia, announced the suspension of its activities. The most likely scenario today is bankruptcy. How does this threaten the industry as a whole and each traveler individually? How to protect yourself as much as possible from falling into a situation faced by thousands of Neva clients? What if the bankruptcy of your travel agency still overtook you on vacation? Portal V OTPUSK. RU understood these and other issues together with the director of insurance of INTOUCH company Mikhail Efimov.
What happened?
About 20 thousand people who have already paid for the vouchers will not be able to use them and will have to make a lot of efforts to get their money back.
About 7 thousand people are in foreign resorts, many of them without paid accommodation or return tickets.
These are the figures of the statistics announced today by the Federal Tourism Agency. However, what is behind these numbers?
In fact, we are faced with the collapse of one of the most stable and reliable travel companies in Russia. At least, this was the perception of the Neva that existed in the mass consciousness up to the “black tourist environment” on July 16. The image of this travel agency "Neva" has earned due to two factors: firstly, it was one of the largest companies in Russia in its field, and secondly, it worked on the market for 24 years. And after all, the classical rules for choosing a travel agency are advised to first of all pay attention to these two factors.
But this time the "classics" failed: the collapse of the "Neva" is an event from the world of postmodernism, in which you and I happened to live. This is the conclusion you make when you learn about the official figures that preceded the suspension of the company's activities. These figures indicate: in 2013, "Neva" earned about 2.5 million rubles. The amount of her debt obligations as of the same year amounted to more than 420 million rubles. Simple arithmetic suggests that Neva's debt exceeded its income by about 168 times. And at the same time, the company continued to sell vouchers until July 16. Moreover, if the circumstances for Neva had developed a little better, it is quite possible that it would have been selling to this day.
Of course, such a situation is possible only in the modern world, where a country with one of the largest external debts lends money to other countries. This is because the postmodern world is based solely on trust. In this sense, “the exit of the Neva from the banks” can lead to the consequences that Alexander Sergeevich Pushkin described in The Bronze Horseman: a destructive flood that will not pass unnoticed.
But will it? To answer this question, you need to turn to the reasons for the collapse of the "Neva".
Why did this happen, and should we expect new bankruptcies?
It makes sense to talk about the reasons for the impending bankruptcy of Neva from at least two positions. One of them is the explanations of the travel agency itself. In the message of "Neva" it was noted that everything is to blame: the economic crisis, the difficulties that have arisen in relations with foreign partners, as well as the ban on travel abroad for certain categories of citizens, which came into force this spring. According to the travel agency, these reasons provoked a drop in sales by 25% at once.
However, there is another position that also deserves attention. This version has been repeatedly voiced by experts over the past couple of weeks, assessing the state of the tourist services market. In their opinion, we are talking about a systemic problem that requires - accordingly - a systemic solution. Six months ago, one of the world's largest consulting companies, PricewaterhouseCoopers, conducted a study of the Russian market, which showed that two-thirds of all tours in Russia are sold below cost. This is directly related to the astronomical figures of the Neva debt, which were announced above: companies by any means need to earn money to pay off current debt obligations.
Thus, the vicious circle is closed: in the short term, debts are extinguished, in the long term, they only grow. This forces travel agencies to again go to any measures in order to sell vouchers and earn money to pay off new short-term debts. Naturally, in such a situation, any serious external changes leading to a decrease in sales (for example, a fall in the ruble and a decrease in the purchasing power of the population) immediately break the thin film of stability.
And according to these rules, according to the above study, 60% of Russian tour operators work. Therefore, for all its unexpectedness, the collapse of the Neva turns out to be predictable. With the same degree of probability with which we can predict the bankruptcy of most of the companies operating in the market today - 50/50.
Add to this the fact that the departure from the market of such a large and significant player as Neva is an additional blow to the reputation of the entire travel industry. The tourist flow this year has already decreased by 30%, and this situation will only exacerbate the distrust of companies, even the most reliable ones. What will happen to these companies then, if sales today - their only hope not to close tomorrow - is understandable. The question is, what should we do in this case?
How to protect yourself as much as possible from risks before departure?
Taking into account all of the above, we can draw a disappointing conclusion: the only way to guarantee yourself to insure yourself against falling into a similar situation is not to use the services of travel agencies, but it is better not to fly anywhere at all, because air carriers also tend to go broke. Obviously, this scenario is unrealistic: the percentage of individual travelers is growing from year to year, but in a broad sense, not everyone is ready to refuse the services of intermediaries.
Mikhail Efimov advises to follow a number of rules that will help you protect yourself as much as possible from risks when contacting a travel company:
- Study the news regarding the travel agency you are going to contact. Often, information about upcoming problems "leaks" into the media in advance.
- Carefully read the contract that you conclude with the travel company. Your awareness will be your weapon.
- Before traveling, contact the hotel and the airline to check if your accommodation and flight fees have been transferred. If the answer is no, immediately call the travel agency and ask for an explanation.
- Try to provide a plan of action in case of force majeure: put additional funds on your phone account (they may be needed for international calls), have an emergency reserve of funds with you in case you need to pay for accommodation or tickets on your own, write down the addresses and phone numbers that you may need in such a situation.
- Insure against cancellation. Moreover, it is best to do this not in the partner company that the travel agency offers you, but in an independent insurance company. Remember, however, that travel cancellation insurance covers circumstances directly related to the tourist: a sharp deterioration in health, refusal to obtain a visa, etc. The bankruptcy of a tour operator, in accordance with the law "On the Basics of Tourist Activities in the Russian Federation", is covered by voluntary liability insurance, which the company itself concludes with the insurance company.
How to reimburse funds already paid and what to do if the bankruptcy of a travel agency caught you abroad?
In the event that you have already bought a ticket, but have not yet had time to fly away, and your tour operator has gone bankrupt, you must submit an application to Rospotrebnadzor and the prosecutor's office. The statements should detail the situation and attach copies of all documents to it.
The next step is getting insurance compensation. After you contact the insurance company with the presentation of all documents, the insurer has 30 days to pay compensation. If during this period your claims were not satisfied, you can go to court.
If you are in trouble while on vacation, stick to the following rules:
- Call the tour operator (the company that forms the tour) and the travel agency (the company that sells ready-made tours). Difficulties could arise at any stage. If an agency runs into problems, a tour operator can help you. If, on the contrary, the tour operator acted in bad faith, there is hope to get help from the agency.
- If the hotel says that the room has not been paid for, then there are only two options: to leave or to pay on your own. But first, it is necessary to draw up an act of refusal to move in, which will be signed by two witnesses (indicating their passport data). Also, this act must be signed by the representative of the hotel. This document can later serve as proof of your case in the course of court proceedings.
- If you are not allowed out of the hotel, demanding payment, immediately contact the Russian diplomatic representatives in the host country. Only law enforcement agencies have the right to detain you, such actions on the part of the hotel representatives are illegal. It is also worth making it a rule to never leave your passport with the hotel administration. After registration of the check-in, you have the right to pick it up and must use it.
- If you pay for this (or any other) hotel yourself, collect all evidence of your spending: checks, receipts and statements. Photo and video materials can also become evidence when clarifying the circumstances of the situation in which you got through the fault of the travel agency.
- After returning home, file a claim for damages for the failed tour, attaching all the documents and evidence collected to it. You can transfer it to a travel agency, or to an insurance company that was the guarantor of the agency, or to your own insurance company, where you purchased a policy with coverage of expenses in case of unfair work of a travel agency that spoiled your vacation.
Mikhail Efimov clarifies: “The law determines the limits of the financial guarantee in the event of a tour operator's bankruptcy. If this limit has already been spent, the refusal of compensation is absolutely legal. So asking for a refund is not something to put off until tomorrow. And one more important point: the activity of tour operators, but not of travel agents, is insured - check in advance if the company, with whose help you are going to go on vacation, is engaged in resale”.
When contacting a travel agency, even a large, reliable and reputable one, do not forget these tips. The principle “trust but verify” is more relevant today than ever for interaction with the Russian travel industry.
