Under what circumstances does a travel agency lose money?

The situations in which a travel agency may lose money may be as follows:

1. Bad weather: If the tourism activities organized by the travel agency encounter bad weather, such as heavy rains, typhoons and other natural disasters, there will be losses. Resulting in the cancellation of travel plans or changes in itinerary, thereby causing economic losses to the travel agency.

2. Low price competition: In order to attract customers, travel agencies lower the prices of travel products, but too low prices may cause travel agencies to be unable to make profits or even lose money.

3. Customer complaints: If customers complain about the travel agency's service quality, itinerary arrangements, etc., it may cause damage to the travel agency's reputation and economic losses.

4. Customer churn: If customers are dissatisfied with the travel agency's services, they may no longer choose the travel agency, resulting in customer churn and economic losses.

5. Operation and management costs: The operating costs of a travel agency include human, material, financial and other costs. If the operation and management are not good, the costs may be too high, causing the travel agency to lose money.