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Travel industry has to realise that it is not a special case it is just one of many industries that are collapsing from the pandemic, but why should those industries that are scraping by have to support companies that (lets face in the online world) would be less likely to survive.The British economy needs to move away from its over reliance on a system where 'recycling money' in the key to the GDP and to one where we start to create things.
Miles.Spot on. What really frustrates me is when people say we may have lose a few people along the way...most of these good travel agents are NOT able to "lose a few workers" because the cost of redundancy cannot be funded because we have NO MONEY as we have given it all back and paid these people we should "losing" to service our valued clients.Therefore the only alternative for almost all travel businesses (and Destinology is the latest) is to pack up and liquidate the whole business.So when people wake up and realise "losing people" is not a viable option, we may get some sector specific help.ps. I know many businesses are hurting, but people do not fully understand the travel industry and the fact we haven't been able to use Furlough in many cases, so how about letting us do this when it matters - over winter!
Good point - my thoughts entirely in relation to cost of redundancy
Yes, well said Miles !
the NZ Government has introduced financial support for Travel Agents by covering ,to some degree ,the refunded commissions that agents have had to make for cancelled bookings - thus keeping some cash flow available to pay staff both to administer these refunds and/or to get FCNs to get rebookings and thus some future income, This would help agents who have salaried staff as well as self-employed agents who are currently just hung out to dry
the GVMT cannot allow the Travel Trade to benefit from further help.
WHY NOT? you scream.
Let's break this down.
The whole country is suffering, not just Travel.
Hotels, Bars, Night Clubs, cinemas, the arts, plumbers, electricians, flower shops, corner shops, etc are ALL SUFFERING
The GVMT has already blown over 200 Billion on the Furlow and rescue schemes.
They MUST come to an end in October.
As the chancellor clearly stated, people have already lost their jobs and more will follow.
We need to ensure that business's continue to operate, even if it involves loss of workers.
Hopefully by 2024 the world will be in a much better place and people will then be re-employed.
You obviously have no idea how travel is different from all these other businesses you mention "Hotels, Bars, Night Clubs, cinemas, the arts, plumbers, electricians, flower shops, corner shops, etc are ALL SUFFERING" of course they are suffering too as you also say we all are.. but.. none of these businesses have had to refund the sales they have made over the last 18 months - 2 years or more so not only not gaining much in the way of new sales... Travel is having to refund past sales. We have also HAD to keep staff on to help affected customers so the use of furlough is limited, the businesses you mention can close the shutters and take furlough for 100% of their staffing saving £1000s in payroll. A one size fits all approach does not work, this isn't a small industry..it is a huge contributer to the UK economy so the consequence of not supporting it is massive.
Bars lost a fortune (beer lifespan is short, they had to throw away millions of gallons of wasted beer each and every month of lockdown).
Food went off (bread, milk, etc) LOST MONEY.
Hotels lost a fortune, they had to keep running the water pipes every couple of days to ensure no bacteria build up, etc.
You think that hotels, bars, night clubs, cinemas, the arts, etc can simply close the shutters until the pandemic is over ?
OMG are you actually Steve Kane ?
Incoming tourism is small compared to outgoing tourism, therefore the 'hit' to the UK economy is a lot less than you think.
There will be no effective vaccine for at least 18 months.
Keeping just the travel industry furlowed for that period is going to cost the travel industry ten's of billions in TAX PAYERS MONEY and will lead to EVERY INDUSTRY DEMANDING THE SAME FURLOW EXTENTION.
That could cost the TAXPAYERS over 400 BN.
Better to do as the Chancellor said, 'THERE WILL BE JOB LOSES, BUT IT WILL PROTECT THE COMPANIES MOVING FORWARD'
In 18-24 months, confidence will return and people can they re-apply for positions.
I agree. Why do people think travel is special case. The G'ment said early on that it cannot save every job. They have spent huge sums of money to try and alleviate the situation. We should all stop moaning and get on with it!
A brilliant article Miles and very comforting to read that so many of us have similar thoughts.
Well said Miles - an intelligent, balanced view of where the UK Travel industry is at right now. There needs to be a clear package of assistance without further delay; the time for cloudiness, procrastination and the current 'wheel of fortune' quarantine approach is accelerating the demise of what was a strong and sustainable industry.
Great and insightful article Miles, as ever.