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One more leading Russian travel agency suspends operation

The company explained its decision by a dramatic decline in demand for travel services following the bankruptcy of several leading tourism companies in Russia

© ITAR-TASS/Yuri Smityuk

MOSCOW, September 10. /ITAR-TASS/. Another leading Russian tour operator, Yuzny Krest Travel, suspended operation on Wednesday.

The company explained its decision by a dramatic decline in demand for travel services following the bankruptcy of several leading tourism companies in Russia.

Established in 1998, Yuzhny Krest Group is among Russia’s top ten tour operators. It operates through two companies: Yuzhny Krest Travel and Romanov Club Luxury Travel.

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The former offers domestic and foreign travel services, and sells train and plane tickets, books hotels and accommodates foreigners in Russia. The latter organises premium foreign tours mainly in Greece, Indonesia, Dominican Republic, Cuba, the United Arab Emirates, and Thailand.

Yuzhny Krest has offices in Moscow, St. Petersburg, Yekaterinburg, Vladivostok, Ivanovo, Kazan, Kemerovo, Perm, Surgut, Tyumen, Khabarovsk, Khanty-Mansiisk, Novosibirsk, Samara, Ufa, and Yalta.

Its business has been insured by RESO-Garantiya Company with 100 million rouble coverage until March 11, 2015.

In the summer of 2012, Yuzhny Krest’s owners announced plans to attract a foreign investor, Australian Meiln Bank, which could acquire up to a half of the business. But the deal was never concluded.

In 2013, Yuzny Krest Travel’s earnings were reported at 1.9 billion roubles and net income at 1.7 million roubles.

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