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The Bankruptcy Of Neva Travel Agency
July 20, 2014 16:42


The bankruptcy of “Neva” travel agency revealed the problems of the tourism industry. Russian tourist market undergoes a crisis. As a result of the short-sighted policy of some airlines and tour operators, supply outstrips demand.

The complexities of “Neva” had become known about a week before the company declared itself bankrupt. First wake-up calls came from Greece, where “Neva” sent tourists. Later the St. Petersburg travel agency declared itself bankrupt. Why did it happen? The fact is that the Russian tourist market undergoes a crisis.

Travel agencies of that market have quite serious risks that may end up in a sad way for individual companies and their customers. The first signs of the crisis emerged in the market back in 2012, when the travel agency “Lanta-Tour” turned bankrupt. Then the entry into Egypt was closed for Russian tourists for the first time, although temporarily, because of the revolution in this country. The Russian market began to experience crisis – the work of many travel agencies became too risky. That was why foreign travel agencies began to leave the market.

Currently there are almost none of these in Russia. Why did the crisis emerge? The fact is that the market was very excessive. Airlines leased too many aircrafts, and flights supply exceeded the demand. That is why many companies are dumping now, setting the cost of air service lower than that of air tickets. Some airlines began to sell cheap tickets hoping to kill the competition. As a result, a Russian tourist can have a rest abroad for 8-10 thousand roubles, and the extra costs for his/her vacation will be paid by the airline company and the tour operator. Additional payments are made out of working assets. But this technique only works while the demand is growing, this cannot last forever. Sooner or later it fails. For this reason the airline company “Moskovia” couldn’t bring Russian tourists back from Bulgaria.

For this reason the travel agency “Neva” stopped its work. Unfortunately we cannot escape from “last minute tours”, when our citizens are offered a vacation abroad on the shores of the azure sea 8-10 thousand roubles. It is not real to have a rest in Russia for this money. Therefore, buying a ticket “for a penny” Russian tourists should realize that they are in a risk zone, and anything can happen. Unfortunately, so far this is the reality of the Russian tourist market. 

Author: Anna Dorozhkina

Tags: Neva Travel Agency Russian Tourism    

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