More stories

  • in

    UKHospitality warns 600,000 jobs could go by spring

    UKHospitality has written to the chancellor of the exchequer, Rishi Sunak, warning that additional financial support is “absolutely vital” to ensure hospitality businesses survive a bleak winter.
    Funds will also be necessary to ensure companies are in a position to help power economic growth next year, the trade body argued.
    Ahead of the a spending review, the trade association is warning that hospitality is set to lose the majority of its ‘golden quarter’ with Christmas sales severely depressed, as it then heads into the worst quarter for sales, from January through March.

    ADVERTISEMENT

    The removal of the Job Retention Bonus (JRB) has also materially damaged businesses’ ability to survive and creates a £2.1 billion black hole in the sector’s finances in February.
    The letter follows the release of a new survey of hospitality businesses which shows that, by February, and without further government support, around 600,000 jobs will be lost against employment figures from the same month this year.
    The letter calls on the government to act in five areas to protect hospitality businesses:
    Announce a successor scheme to JRB as soon as possible, with an early drawdown facility
    Extend the business rates holiday for a further year from April
    Continue the VAT cut for hospitality and tourism for the duration of 2021
    Broker a workable solution on the huge rent debt hanging over the sector, supported by a moratorium extension
    Maintain the VAT Retail Export Scheme
    UKHospitality argues that this package of additional financial support will put the sector in a position to rebuild next year and continue its position as a major contributor to economic and social wellbeing across all regions of the UK.
    UKHospitality chief executive, Kate Nicholls, said: “The support received so far from government remains greatly appreciated, including recent announcements on the extension of furlough for our teams and grants for closed businesses.
    “Yet these do not go far enough to protect businesses’ bottom line, and, in the case of the removal of the Job Retention Bonus, actively damage their ability to survive.
    “The consequences of the withdrawal of the JRB are severe.
    “While the sector has done its utmost to retain staff, almost half of businesses believe that they will now be forced to make redundancies because of this decision.
    “More broadly, with the right package of support, the chancellor can help the sector navigate the challenging landscape ahead, protect as many viable businesses and jobs as possible, and allow people to enjoy safe and welcoming hospitality across the country.”
    Older
    Hong Kong-Singapore travel bubble delayed

    Newer
    Rocky Mountaineer to launch new United States trip More

  • in

    Mintrim appointed chief executive of Wendy Wu Tours

    Wendy Wu Tours has announced Glen Mintrim is to step up from the position of UK managing director to chief executive.
    The move takes place as part of a global restructure, and will be effective from the start of December.
    Since joining the operator in 2019, Mintrim has led Wendy Wu Tours through a strong growth phase, despite the challenges of this current year.
    He will lead the global senior team, driving an ambitious five-year growth and development plans as well as a significant focus on increasing support and resources for the trade.

    ADVERTISEMENT

    Announcing the appointment, founder Wendy Wu, said: “Glen is an exceptional leader.
    “His track record in transforming and expanding our business across multiple new platforms, as well as delivering a wide-ranging reset of the core UK business, has been extraordinary.”
    Wu added: “Glen’s depth of international experience, his collaborative leadership style, as well as his proven results in building a high-performance team at Wendy Wu Tours, will be an asset in the new chief executive position.”
    As part of the new global restructure, global sales director, John Warr, will take full responsibility for the sales teams and business development managers in Australia and New Zealand.
    Reflecting on his appointment, Mintrim said: “I am honoured and excited to take up this role with such an amazing and forward-looking business.
    “We have a great culture and a winning strategy that has enabled us to weather the challenges thrown at us this year whilst continuing to grow. Building further on our success is a challenge I accept with confidence and determination, not only our business but for the travel industry as a whole.”
    Older
    New chief executives for three Lufthansa airlines

    Newer
    Coin laying ceremony for Celebrity Beyond as construction continues More

  • in

    Hays Travel founder, John Hays, dies aged 71

    The travel industry is mourning the passing of John Hays, the founder and managing director of Hays Travel, who died today at the age of 71.
    A statement from the company said he died at work, doing “the job he loved”.
    John, who with his wife and co-owner Irene Hays bought the Thomas Cook retail estate a year ago, was at Sunderland head office of the company when he collapsed.

    ADVERTISEMENT

    The couple built Hays Travel into the largest independent travel agent in the UK, providing jobs and careers for thousands of young people over 40 years.
    Throughout the past year they did everything possible power to save jobs and protect the travel industry for the impact of Covid-19.
    A statement from the company said: “He was held in immense respect by his staff, colleagues, family and friends and was recognised throughout his life for his many achievements.
    “He was equally proud of his loyal staff who, under the direction of the board and senior management team, will ensure that the business continues to serve the customers of the largest independent travel agent as he would have wanted.”
    Hays Travel took over parts of Thomas Cook last year
    Hays Travel specialises in providing good value, quality holidays alongside excellent customer service.
    Commenting on the passing of John Hays, Andy Cohen, head of ATOL, said: “I’ve had the pleasure of knowing John for over 30 years.
    “He was a man of integrity and a very successful businessman who loved the travel industry.
    “I spent many hours over the years talking sport, travel and many other subjects with John, who would often offer me advice.
    “He was always a pleasure to be around, and I know he will be missed by many.”
    Before it took on hundreds of Thomas Cook shops last year, Hays Travel had 190 shops, 1,900 staff, and sales of £379 million, reporting profits of £10 million.
    Mark Tanzer, chief executive of travel trade organisation ABTA, said: “We were shocked and saddened to hear this afternoon’s news that John Hays has passed away.
    “John was a major figure in the travel industry over many years, and created one of the industry’s most successful companies.”
    Older
    Leone takes up leadership of Jumeirah at Saadiyat Island Resort More

  • in

    ABTA issues new plea for government support

    New figures from ABTA suggest nine in ten holidays were either cancelled or rearranged in July and August, as the Covid-19 pandemic caused havoc in the travel sector.
    The new findings are from a survey of members carried out at the end of October before the latest lockdown measures were announced.
    They also reveal that a third of businesses have not yet resumed active operations since the UK-wide national lockdown – demonstrating the constraints on the sector.
    The lack of an opportunity to recover means that in the current trading conditions businesses expect to end the year 93 per cent down on bookings compared to this time last year.
    Even before the latest lockdown, redundancies are estimated to have almost doubled over a three-month period – with 164,000 people either losing their jobs or having their jobs at risk in the travel and wider industries, up from 90,000 in August.

    ADVERTISEMENT

    In response, ABTA has renewed its calls to government to deliver a plan which provides tailored support for the industry and put measures in place to ensure a swift return to travel and boost consumer confidence after the lockdown has lifted.
    It acknowledges that while positive developments this week, in terms of securing a vaccine, will go some way to restoring consumer confidence in booking future travel plans, travel businesses need help now.
    It highlights that while other sectors – like hospitality, culture and the arts – have received specific support from the Government, travel businesses have been left wanting.
    Mark Tanzer, chief executive of ABTA, said: “The travel industry has had no meaningful chance to recover – bookings have largely vanished, cancellations are common as destinations move on and off the travel corridor list and the government is yet to deliver a testing framework for industry and customers.
    “The results are stark for businesses – job losses mounting at an alarming rate and viable, longstanding businesses closing their doors for good.”
    He added: “But there is demand for travel and we are starting to see people booking for summer 2021 – demonstrating the importance of travel and resilience of the market.
    “This will no doubt be boosted by the news of a vaccine, but we must remember that a robust vaccine programme is many months away and the industry is struggling now.
    “It is short-sighted of the government to overlook the industry as travel is fundamental to our economic recovery.”
    Older
    Campbell Gray Hotels signs for new project in Cairo

    Newer
    Qatar Airways adds new destinations to global network More

  • in

    TUI cancels trips to see Santa in Lapland

    TUI has confirmed there will be no trips to see Santa this year.
    The UK & Ireland subsidiary revealed earlier it had taken the “incredibly difficult” decision to suspend holidays to Lapland this winter.
    The move is due to the continued uncertainty surrounding travel and the unprecedented impact of Covid-19.
    Visiting Santa is a truly magical, once-in-a-lifetime family experience and TUI said it had worked extremely hard in recent months to try to ensure it can keep the magic alive and guarantee children and their parents a safe and enjoyable holiday.
    However, with the rapidly evolving travel environment and a Covid-19 test soon to be mandatory for Finland, TUI has decided that on this occasion, it would not be able to deliver on this promise and wanted to remove uncertainty for families.

    ADVERTISEMENT

    The health, safety and enjoyment of customers and colleagues continues to be the number one priority.
    All customers impacted by this decision are currently in the process of being contacted to discuss their options, which include the opportunity to amend for next year, receive a refund credit note with an incentive or choose to request a full refund.
    “TUI would like to apologise sincerely for any inconvenience and disappointment caused and thanks customers for their understanding,” added a statement/
    The TUI holiday experience to Lapland is expected to return in winter 2021.
    Older
    Six Senses Botanique to open in Brazil next year

    Newer
    Wizz Air launches carbon offsetting programme More

  • in

    Froggatt takes up Abercrombie & Kent leadership role

    Abercrombie & Kent has appointed Martin Froggatt to the role of executive vice president, destination management and as a member of the global management board.
    He will take up the role on Monday, November 9th.
    The job encompasses global leadership across Abercrombie & Kent’s destination management companies; of over 55 offices in more than 30 countries, and its luxury riverboat and lodges brand, Sanctuary Retreats.
    Froggatt joins the business with over 25 years’ experience in the travel industry with leading brands such as Walt Disney Attractions, TUI and Travelopia in both the UK and the USA.
    While at Travelopia, he managed the education, events and expeditions portfolios delivering record customer satisfaction scores, revenue growth and profitability.

    ADVERTISEMENT

    Under his leadership, the expeditions portfolio that included Quark Expeditions and TCS World Travel became market leaders through an unwavering focus on delivering the best customer experience.
    He was also instrumental in the delivery of several mergers and acquisitions, including the sale of Travelopia into private equity.
    Michael Wale, chief executive, Abercrombie & Kent, commented: “During these incredibly challenging times for the industry, I’m delighted to have Martin join us.
    “As a renowned travel industry executive with a strong people focus, it’s great to have him on our global leadership team who continue to innovate exceptional travel experiences for our clients.”
    Older
    easyJet makes further capacity cuts as Covid-19 restrictions hit Europe

    Newer
    Lufthansa to offer ‘negative only’ flights between German cities More

  • in

    IATA data reveals slowdown in aviation recovery

    Figures from the International Air Transport Association have confirmed that passenger demand in September remained highly depressed.
    Total demand (measured in revenue passenger kilometres or RPKs) was 73 per cent below September 2019 levels.
    This is only a slightly improvement over the 75 per cent year-to-year decline recorded in August.
    Capacity was down 63 per cent compared to a year ago and load factor fell 22 percentage points to 60 per cent.
    International passenger demand in September plunged 89 per cent compared to September 2019, basically unchanged from the 88.5 per cent decline recorded in August.
    Capacity plummeted 79 per cent, and load factor withered 38 percentage points to 43 per cent.

    ADVERTISEMENT

    Domestic demand in September was down 43 per cent compared to the previous year, improved from a 51 per cent decline in August.
    Compared to 2019, capacity fell by a third and the load factor dropped 12 percentage points to 70 per cent.
    “We have hit a wall in the industry’s recovery.
    “A resurgence in Covid-19 outbreaks – particularly in Europe and the US – combined with governments’ reliance on the blunt instrument of quarantine in the absence of globally aligned testing regimes, has halted momentum toward re-opening borders to travel.
    “Although domestic markets are doing better, this is primarily owing to improvements in China and Russia.
    “And domestic traffic represents just a bit more than a third of total traffic, so it is not enough to sustain a general recovery,” said Alexandre de Juniac, IATA director general.
    Older
    Wizz partners with CarTrawler for new rental options

    Newer
    Potential Hong Kong-Singapore travel bubble boosts demand More

  • in

    Fears for future of UK travel agents

    A new report from the Advantage Travel Partnership has found that 61 per cent of travel agents will run out of cash by the end of this year.
    The travel agent consortium released the findings as the UK enters a second lockdown, which effectively prohibits overseas and domestic travel.
    The results show the stark reality of how desperate the situation is for travel agents’ businesses and the bleak outlook for the broader travel industry.
    If blanket travel bans, quarantine measures and lack of testing continues, a further 27 per cent will run out of cash in the first half of next year, resulting in 88 per cent of agents running out of cash before June.
    This means – in a rather hypothetical situation that there will only be 12 per cent of travel agents still in business next summer.

    ADVERTISEMENT

    Julia Lo Bue-Said, chief executive at the Advantage Travel Partnership said: “When will the government wake up and see that an industry is collapsing in front of them?
    “These results are deeply concerning, but sadly are indicative of many businesses throughout the travel industry.
    “We need an exit strategy from our government to outline how we are going to move forwards.
    “Hospitality and retail had to ensure they were Covid-19 secure when they reopened in the summer, and travel needs its own equivalent – we must have a robust testing system in place and quarantine periods reduced to give us any chance of surviving this crisis.”
    Older
    Tracol takes top finance role at Skyscanner

    Newer
    Wizz partners with CarTrawler for new rental options More