Dropping demand pushes Travelsystem off Yekaterinburg market

October 31, 2014. Travelsystem, a tour operator, is no longer a player on Yekaterinburg market: the company cut back on the number of flight offers and is to close down its local representation on November 1, 2014. The decision was taken in order to cut costs after demand for Europe-bound trips had sagged, Travelsystem’s website states.

At the same time, the company’s Moscow, Saint Petersburg, Rostov-on-Don, Krasnodar, and Samara branches go on with business as usual.

‘The European business standards Travelsystem rests upon leave no room whatsoever for dumping, artificially boosted sales, or unjustifiably low prices. Sales have been sagging noticeably since March 2014, with demand for European tours plummeting by over 35%. This means we are forced to reconsider both our flight offers and the relationships we have with our partners. It is not altogether improbable that Travelsystem comes back onto Yekaterinburg market after the winter; this, however, will depend on the market opportunities at the time,’ says the company Tourism Director Irina Lurye.

According to the company representatives, the operator will meet all the obligations relating to previously booked tours, all tourists will be able to fly to their destinations and get hotel accommodation. Agents with an increased commission on flights operated from Yekaterinburg will still enjoy this preferential-terms commission should cooperation be resumed.


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