Eliana Willis

The travel sector is unwilling to be a “political orphan” any longer, ABTA chief executive, Mark Tanzer, has told an industry audience.
“Responsibility for outbound travel is spread across a number of government departments – and a single individual or department is needed to represent the interests of the sector,” he argued.
Tanzer was speaking at the Travel Matters conference earlier today.
Aviation minister, Robert Courts, had been due to appear at the event but pulled out at the last minute, a move Tanzer said was symptomatic of a wider disregard for the sector in government.
“We had hoped to have the minister for aviation join us here today, but unfortunately he has withdrawn because of a late diary clash.
“His absence today, necessary as I am sure it is, is nonetheless symbolic of a wide – in fact widening – gap between government and the outbound travel sector.”
He added: “When you look at how other countries have supported their sectors, we have not matched that level of support.
“We are way behind, and in many ways, we are the outliers in not having done this.
“We at ABTA have been making this case for months now and the urgency is increasing.
“The more of the summer season that is lost to travel restrictions, the more perilous the situation becomes.”ADVERTISEMENTTanzer explained 57 per cent of ABTA members said in February this year they only had cash for a further six months – “so jobs will be lost in the coming months,” he added.
ABTA has organised a Day of Action tomorrow in order to get this message across to the government.
“There is a bias against outbound travel in this country, with the government believing all money should be spent in the UK on domestic trips,” continued Tanzer.
“This is unfair, our members, who sell outbound trips from the UK, contribute a tremendous amount to the economy.”
He added: “The government has further damaged the immediate prospects for international travel by warning against leisure travel to amber list countries.
“This is despite having its own system of testing and quarantining on return, adding another major customer disincentive to the hurdles that are already in place.”
He concluded: “This is the darkest hour for the travel industry.
“Though it is said the darkest hour is just before dawn, we need to see the light soon.”

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WTTC warns losses will mount if travel reopening is delayed More

The UK will lose up to £639 million a day during July if international travel remains off limits, according to an open letter to the UK prime minister from the World Travel & Tourism Council (WTTC).
The global tourism body has written to Boris Johnson warning the UK faces a possible £20 billion loss if international travel is effectively delayed until August.
Up to 218,000 more jobs in the sector are also at serious risk of being lost, if no action is taken now, the WTTC added.
The letter to Johnson, signed by WTTC members including TUI, Silversea Cruises and the Travel Corporation, praised the progress made with the highly successful vaccine rollout, which the government should take advantage of, to allow the resumption of safe international travel and reactivate its economy.
Virginia Messina, WTTC senior vice president, said: “If international travel remains off limits for the whole of July, WTTC research has shown that every day, the UK would lose a staggering £639 million, severely delaying the economic recovery and competitiveness.ADVERTISEMENT“Stalling the resumption of international travel could cost the country dearly.
“We simply can’t afford any further delay – we are running out of time and money, with many more businesses in danger of going bankrupt, which would result in more jobs losses.
“However, there are steps that the government can take now so that by June 24th when the green list of travel destinations is updated, we can get travel safely moving again, bring certainty to a market begging for stability and help power the economic recovery.
“Only through these measures will the future be brighter for many and will we be able to achieve a long term, inclusive and sustainable recovery.
“The restoration of free cross-border mobility is essential to help drive the economic recovery from the pandemic.”
Image: Gonzalo Facello

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ABTA: Travel no longer willing to be a ‘political orphan’ More

Analysis from ABTA estimates that 195,000 people working in the UK travel industry have either lost their job or are at risk of losing their job due to the Covid-19 crisis.
The association is reiterating its calls for the UK government to provide tailored financial support to struggling businesses, and to safely restart travel so that businesses can generate income this summer.
The sector employs more than 526,000 people across the UK in ordinary times, meaning that the livelihoods of more than a third (37 per cent) of people in the industry face being wiped out.
ABTA says the findings show the immense pressure the travel industry is under after almost 18 months of severe restrictions which have curtailed the ability to trade.
It is urging the government to deliver a package of tailored financial support to see the industry through to recovery, which includes extending existing furlough and self-employed income support, extending full business rates relief and creating a new sector-specific ‘recovery grants’ regime for travel agents, tour operators and travel management companies.ADVERTISEMENTThe association says it is particularly critical that support is extended given that employer furlough contributions are due to rise at the end of the month and business rates relief will be tapered.
With international travel still largely restricted, travel businesses will not have the money to cover these costs.
The government is expected to review the requirements for international travel on June 28th, and the industry is also awaiting the next review of the traffic light list.
ABTA says the traffic light system, launched last month to deliver a safe, meaningful, risk-based restart to international travel, has been a false start, which has further dented consumer confidence at a critical time.
The system is not operating as intended, with overseas travel barely open, and as a result, the industry is on the precipice of losing a second peak summer season – crucial months which represents two-thirds of travel companies’ income.
Mark Tanzer, ABTA chief executive, said: “Travel businesses feel completely abandoned by the government, which has consistently failed to provide adequate support for an industry which has borne the brunt of the economic fallout from the pandemic. 
“People have worked tirelessly through the pandemic trying to stay afloat, taking on extra jobs, having to make long-standing, valued staff redundant, worrying about mounting debts.
“While we can clearly see the financial toll with jobs and businesses lost, the emotional toll of this ongoing battle, which still has no discernible end in sight, cannot be underestimated.”
The travel industry has taken the biggest economic hit of all sectors impacted by the pandemic, with Office of National Statistics figures showing revenues for travel agents and tour operators have been consistently down between 86-90 per cent each month since February 2020.
Despite this evidence, travel businesses are yet to receive any sector specific support from the UK government and have had limited access to more general grant support measures.
Image: Anete Lūsiņa/Unsplash

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Fewer than one in 100 travel insurance policies provide ‘complete’ cover for Covid-19 disruption, a Which? analysis of more than 250 policies has revealed.
While some travel insurers boast of offering impressive-sounding ‘Covid-19 cover’, the consumer rights body found that this means different things for different providers.
Which? found that many policies exclude plausible – and often expensive – scenarios, such as new lockdowns in the UK or destination country.
The organisation looked at 263 travel insurance policies’ Covid-19 cover and gave them ratings ranging from ‘basic,’ to ‘low,’ ‘superior’ and ‘complete’.
Just two policies, HSBC Select and Cover and Barclays Travel Pack, were rated as ‘complete’, which meant that they protected travellers against:

Cancellation due to changes in advice from the Foreign, Commonwealth & Development Office (FCDO) or government lockdowns prohibiting travel.
Testing positive for Covid or being told to self-isolate.
Medical costs and repatriation.

Both of these policies are available to customers of these banks and can only be bought alongside other insurance products.
A further 85 policies were ranked ‘superior’, providing cancellation cover for travellers having to self-isolate without a positive test, but not for FCDO advice changing.
Policies with ‘superior’ Covid-19 cover included those from popular providers such as AA, AXA and Staysure.
Just over half of the policies (142) were ranked ‘low’, including policies from Nationwide, Admiral and the Post Office. ADVERTISEMENTThis means that they offer some cancellation cover – but that does not go as far as covering travellers for cancelling in the event of needing to self-isolate without having a positive Covid-19 test result. 
There were 34 policies ranked ‘basic’, the lowest ranking.
Such policies provide travellers with cover for Covid-19-related emergency medical costs and repatriation, but not for cancelling a trip if a traveller contracts Covid-19.
Among well-known providers offering some ‘basic’ policies were Direct Travel, esure and Sheilas’ Wheels.
Every policy analysed offered cover for medical and repatriation costs for travellers that had caught Covid-19 while travelling.
Which? is calling for the government to work with regulators, such as the Financial Conduct Authority (FCA), to make every effort to ensure all travellers adequately understand their travel insurance cover and can access cover that protects them against sudden changes to travel restrictions when they would otherwise struggle to get their money back.
It should also be giving as much notice as possible if rules change.
Travel and insurance providers should be giving travellers clear information about their policies, including those relevant to cancelled flights, changes in travel advice and refunds, and clearly highlighting the policies’ limitations.
The FCA should monitor how well insurers are presenting this information.
Gareth Shaw, head of Which? Money, said: “As the removal of Portugal from the green list shows, last-minute disruption to holiday plans can happen – and our research shows that many travel insurers don’t offer much protection if it does.
“The government should work with regulators to ensure that travellers, should they choose to go abroad, are given clear information about what they will and won’t be covered for – and make sure that providers don’t make bold and confusing claims about their cover without being clear about the limitations. ”

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On the Beach has seen adjusted revenue for the six months to the end of March fall to just £12 million.
This is down 77 per cent from the £53 million reported for the same period last year.
The company reported £22 million in losses for the first half of the year, having taken the majority of its trips off sale while waiting for the outbound market from the UK to reopen.
Simon Cooper, chief executive of On the Beach Group, commented: “The group has experienced continued disruption through the first half, and this has remained as we head into the summer.
“As announced on May 12th, the board took the decision to extend the group’s off-sale period from June 30th to August 31st.ADVERTISEMENT“Given the recent change in status of Portugal from green to amber, the board is pleased to have taken this decision early, so as to avoid customers suffering yet more turmoil and disappointment.”
Looking ahead, On the Beach said booking volumes for summer 2022 remain low, but are “significantly ahead” of normal trading patterns.
This was partially due to the early release of flights for next year by most major airlines, a statement explained.
Cooper also offered praise to the authorities for enforcement action taken against airlines he said had been mistreating customers.
He added: “On the Beach has long championed the rights of both its customers and wider holiday consumers and the board was pleased to see that the Competition & Markets Authority (CMA) has opened cases to investigate whether certain airlines have broken consumer law, by failing to offer refunds for flights customers could not legally take, thereby leaving people unfairly out of pocket.
“It is pleasing to see increased regulatory scrutiny on the travel sector and I would like to see this taken one step further with other travel companies establishing trust accounts, similar to ours, so that all customer monies are ringfenced and can be immediately returned should their holiday be cancelled.”

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The government must stick to its roadmap and lift all restrictions on June 21st or risk further jeopardising the future of thousands of hospitality businesses and the jobs they provide, UKHospitality has warned.
The statement comes amid growing expectation restrictions will be extended for a further month in order to allow for more vaccinations to take place in the coming weeks.
The trade association however, argued any delay would be devastating for the sector and around 300,000 jobs would be put at risk – including those still on furlough.
Hospitality has been the hardest hit during the crisis, losing more than £87 billion in sales, leaving businesses deeply in debt and at risk of suffering “economic long Covid-19” if the right support is not forthcoming.
Even now, with partial reopening, sector sales remain down 42 per cent.ADVERTISEMENTA one-month delay to restrictions lifting would cost the sector around £3 billion in sales – but would also have a knock-on impact on bookings throughout the summer and into the autumn.
Alongside the impact on revenue, businesses are now facing a jump in costs with business rates payments set to recommence and employer contributions to furlough kicking in.
UKHospitality chief executive, Kate Nicholls, said: “The government has a balance to strike but due to the amazing efforts of the NHS in rolling out vaccines, it is time to lift the restrictions that are crushing businesses.
“A full and final ending of restrictions is the only way to ensure that businesses in this sector can trade profitably.
“If the government decides it has to keep some restrictions in place after June 21st, then it must prioritise those that do the least damage to business and commit to further supporting the sector.
“Confidence has been shaken so it is imperative that government postpones business rates payments until at least October and extend the rent and debt moratoria for hospitality businesses while a long-term solution to Covid arrears is found.”

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ABTA releases new Travel Day of Action information

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Updated information on the activities around the Travel Day of Action has been published by ATBA.
The event is scheduled to take place on June 23rd across the UK.
Luke Petherbridge, director of Public Affairs at ABTA, said: “The Travel Day of Action is an opportunity for the whole industry to urge the UK government and devolved administrations to speak up for travel.
“Throughout this entire pandemic the UK travel industry has had nowhere near the level of support needed to deal with the devastating impact this crisis has had on people’s jobs, livelihoods and businesses.
“Figures don’t do justice in explaining the financial and emotional toll this has taken on those working in travel.”ADVERTISEMENTHe added: “It has been fantastic to see such great support and interest in the Travel Day of Action, and there are lots of different ways that people will be able to get involved – including via social media, meeting with their MPs or joining events in London, Edinburgh or Belfast.”
There is more information on what to expect during the event here.
Petherbridge continued: “It is really important that people strictly follow the rules and requirements around Covid-19 and arrangements for the day.
“We want the Day of Action to generate positive sentiment and constructive support for the industry.”
He concluded: “Anyone wishing to attend the organised lobby on College Green, Westminster, must register in advance via their trade association.
“We have permission for 400 people to be on College Green at any one time and have two time slots, meaning we could have up to 800 people – including press, MPs and organisers.
“If you move beyond College Green then you will need to abide by all of the usual social distancing measures, including no groups of more than 30 people together outside.”

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