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Serious Old-timer travel agency goes bust!

Scrooball (clone)

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Travel agency Konsortium Express and Tours suddenly shuts down, nearly 1,000 customers affected
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CK Tan
Posted on 23 February 2018 | 8,124 views | 12 comments
A travel agency, Konsortium Express and Tours has closed down, and an estimated 1000 customers affected.

Based in Golden Mile Tower, the agency which specialises in coach trips to Malaysia, cited a ‘financial crisis’ as the reason for it suddenly ceasing operation on Thursday (Feb 22).

The news came as a shock for many of the travel agencies located in the area.

An employee from one of the establishments told Shin Min Daily News that Konsortium’s office was lit at around 10pm on Wednesday (Feb 21).

Everything seemed normal, he said.

However, on Thursday morning (Feb 22), the office was suddenly closed.

A security guard also revealed that a colleague had seen Konsortium’s employees moving out many cardboard boxes out from the office late in the night, and told him about the closure.

A spokesman for Grassland Express, Mr Chen Wenfa, told reporters that he found out at 7am that Konsortium’s office was closed, and realised that there was a notice of closure placed on its door.

Said Mr Chen:

“Our two companies have been working together for many years. Sometimes, when we are overbooked, we will direct our customers to them.

“We did not know they were going to shut down.”

Another spokesman from WTS travel, Mr Xie Zhaocong, said that he was shocked to learn of the news.

Mr Xie said that more than 20 customers were originally scheduled to set off on the day itself.

According to Shin Min Daily News, other than coach trips, Konsortium also sells travel packages for cruises, guided tours, and tickets to local attractions.

It is believed that almost 1000 customers were affected by the sudden closure.

In an official statement by the Singapore Tourism Board (STB), it said that those who had purchased travel insurance prior to the closure should approach their insurance providers for assistance.

Those who have not purchased insurance can seek the help of the Consumers Association of Singapore (CASE) or the Small Claims Tribunal (SCT) for help in seeking compensation.

In addition, the National Association of Travel Agents Singapore’s (NATA) Surface Transport Committee is rallying local transport operators to take over the affected bookings should the need arises.

STB also took the opportunity to remind consumers to take measures to safeguard their own interests, such as paying by instalments and purchasing travel insurance which provides coverage for unforeseen events, such as when a travel agent turns insolvent.
 

nayr69sg

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Only sinkies are so big on these travel agency crap.

With internet bookings nowadays so easy to book your own flights hotels car rental attraction tickets etc.
 

eatshitndie

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Only sinkies are so big on these travel agency crap.

With internet bookings nowadays so easy to book your own flights hotels car rental attraction tickets etc.
many sinkie aunties and ah sohs don’t know how to use apps on smartphones. they need bangla and pinoy toy boys to teach them. as for sinkie uncles they already know how to wechat to khalwat with mei meis.
 

sweetiepie

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my uncle say some type of people that wear clothe over their head also borrow money from credit card and pay by instalment when go tour.
 

Scrooball (clone)

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NOTICE-2.png


Can like this one? Konsortium took all the deposits from customers, then suddenly without warning, they closed down. Isn't that fraud?

They even have the cheek to tell affected passengers to CLAIM FROM TRAVEL INSURANCE or go to Small Claims Tribunal!

The owners should be caned and jailed!
 

Bonut

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NOTICE-2.png


Can like this one? Konsortium took all the deposits from customers, then suddenly without warning, they closed down. Isn't that fraud?

They even have the cheek to tell affected passengers to CLAIM FROM TRAVEL INSURANCE or go to Small Claims Tribunal!

The owners should be caned and jailed!
Same like parallel car importers. They are private limited company and have limited liability. They didn't set up the business to con. But I understand last time travel agencies need to place a few hundred thousand deposit with STB in order to get the travel agent licence. Don't know if the requirement has been scrapped.
 

Scrooball (clone)

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Well sure i get the limited liability shit, but these bastards are clearly out to cheat customers since they continued to collect deposits before closing down abruptly.

That's the problem with Singapore. Consumer rights are a joke. U get screwed, u have to pay money to CASE, and they will try to contact the conman who screwed u. They do not have the rights to press criminal charges on those conmen!
 

Bonut

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Well sure i get the limited liability shit, but these bastards are clearly out to cheat customers since they continued to collect deposits before closing down abruptly.

That's the problem with Singapore. Consumer rights are a joke. U get screwed, u have to pay money to CASE, and they will try to contact the conman who screwed u. They do not have the rights to press criminal charges on those conmen!
You raised a good point. I think in future deposit money and company money must kept separate, just like law firm got client's account and office account. So the moment these bastards touch clients' deposit money, it becomes CBT.
 

Scrooball (clone)

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The problem is nobody gets jailed and caned for these outright fraud cases!

Business owners can just suka suka close down and run away with the money collected.

Even if u litter, u can get fined. If can't pay u may go to jail. How come never hear of these business owners getting screwed by the law?
 

Scrooball (clone)

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http://www.straitstimes.com/busines...nsortium-invests-in-hr-for-sustainable-growth

SPONSORED CONTENT
Tour agency Konsortium invests in HR for sustainable growth
PUBLISHED
MAR 28, 2016, 4:00 AM SGT
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Brought to you by

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The tourism industry is a competitive one, with many tour agencies vying for business and trying to outdo each other with better travel packages and service. Konsortium Express & Tours Executive Director Joe Lim realised last year that one way to truly uplift standards at his firm and grow his business in a sustainable way was to invest in a better human resource (HR) strategy. He spoke to The Straits Times about his company's HR journey.

WHY IS TALENT IMPORTANT TO YOUR BUSINESS?
People are the key driver of my business. When employees are in high spirits, they positively engage my potential customers to create more pleasant experiences for them and convert them into ‘paying’ customers who purchase our travel packages. No one will buy a holiday package from an unhappy sales representative as they are unhappy of the poor service rendered even before they go for the holiday!

WHAT WAS LACKING IN YOUR PREVIOUS HR STRATEGY?
Our approach to HR was very conventional. We hired HR executives who would administer payroll and leave and on my request, they would sometimes make changes to HR policies. This typically meant cutting costs and scaling back on employee benefits. While this approach saved money, it negatively impacted staff morale and sales suffered as a result.


We always cap HR costs as a percentage of sales but this would mean that the number fluctuates from year-to-year. When profitability is high, HR costs increases as we can afford more employee benefits and privileges. When the economy is slow like now, we reduce the cost-to-sales ratio to conserve cash flow and ensure the sustainability of the business.

So previously, whenever I lowered the cost-to-sales ratio, our HR executives would interpret it as a hiring freeze and this will cause friction between the HR and sales departments. The sales team complained about not hitting their sales targets as there were no sales representatives stationed at the counters but HR was unwilling to hire new staff to control costs. It was this refusal to hire that led to a drop in sales which then ultimately increased the cost-to-sales ratio.

And so you tapped on Spring Singapore's HR Shared Services (HRSS) programme in October 2015. The programme allows you to outsource some of your HR operational activities and leverage on IT to enhance your HR systems and processes. How has things changed since?
Prior to participating in the HRSS programme, we hired HR executives who did not see the implications extending beyond HR, bearing in mind the wider business needs. This negatively affected my business.

By outsourcing my HR operational activities, I now do not require an in-house HR executive to manage day-to-day operational HR activities like payroll processing and benefits administration for 50 employees.

Through the use of cloud-based HR info systems managed by the HR shared service provider, employees can now self-service and apply for leave, claim and manage attendance tracking online, resulting in time savings.Furthermore, due to the large SME client base that the HR shared service provider has, the provider was able to aggregate demand and offer all their clients additional benefits like discounted group medical and subsidized dental coverage, at no additional cost. Hence, I am able to provide my employees with better employee benefits without more cost to the company.

We are also able to access professional HR advisory services where the provider would use our data and HR analytics to advise and help us make important HR decisions.

WHAT WERE SOME OF THE CHANGES THAT KONSORTIUM MADE AS A RESULT OF THE HRSS PROGRAMME?
We started by studying our P&L and identified areas of the business that needed improvement. We studied and revamped our sales commission structure to incentivise greater sales. This means that the more sales a counter staff closed, the higher the percentage commission he would earn as compared to the previous model where a flat commission rate was given regardless of sales achieved.

Improvements in performance management was also made such that we can now track and measure staff performance through a monthly KPI and People Analytics metrics and monitor report. To cascade this down the levels, we held a KPI briefing for all nine department heads and managers to ensure that everyone was clear and aligned to the new performance measurement tracking structure. Today, with a glance of the document, I can have an overview of the progress made by my employees and company.

HAS THIS ALSO CHANGED THE WAY YOU RECRUIT AND TRAIN NEW HIRES?
New hires who join the company are immediately presented with the performance blueprint containing Konsortium's KPIs and process flows. This is so that employees know what they are hired to achieve, how to achieve it, and consistent reporting keeps employees informed if they are on track to meet their KPIs.

High performers are identified from the monthly reports, and these high performers are asked to complete a 90 questions “success drivers” questionnaire. From the answers given, we try to frame the profile of employees we want. This increases the chances of hiring the right candidate who would fit and excel in Konsortium.

DO YOU THINK YOUR IMPROVED HR STRATEGY IS ALSO HELPING YOU THROUGH THE CURRENT ECONOMIC SLOWDOWN?
Certainly yes. With HRSS, I am now able to focus on upskilling and continuously educating my counter staff, who can bring in my sales and tide us through this economic slowdown. In fact, to-date, Konsortium’s coach business is averaging more than 20 per cent profitability, outperforming the industry. :rolleyes::rolleyes::rolleyes:
 

no_faith

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Company knew they are in crisis.
Give a last push and promotion, see whether can bring in the cash to overcome the crisis.
If failed, then shut down.

But so many msians working in sg, coaches cannot survive?

STB didnt go check on these tour agency on their finance? Since quite number of them have resort to this.
 

Bonut

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Oh...now travel agent no need to furnish banker's guarantee to STB liao. The amendment came into effect in Jan 2018:
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ijrxpy
 

Scrooball (clone)

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So why don't i just open a travel agency. Offer travel packages of $200 for 2 weeks trip to Paris. Collect all the money and then just close down. No law to punish me what!

This is the most retarded shit in Singapore by far.
 

zeebjii

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So why don't i just open a travel agency. Offer travel packages of $200 for 2 weeks trip to Paris. Collect all the money and then just close down. No law to punish me what!

This is the most retarded shit in Singapore by far.

I think already been done. Open for business during tour/furniture fair, collect deposits, close down and run road after that. Can't recall anyone was caught and prosecuted.
 
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