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      MMGY companies Grifco and Ophir to merge

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      PR agencies MMGY Grifco and MMGY Ophir are to merge.
      The agencies, which were both founded by industry leader Claire Griffin, will combine to run as MMGY Grifco in London.
      “We are thrilled to be joining together Grifco and Ophir PR to help our business evolve to the next level,” said Griffin. 
      “Combining the expertise of our two teams brings clients even greater knowledge, resources, partnership opportunities and experience in the luxury travel and lifestyle sector.”
      The brand merger sees a company restructure that includes some team promotions.

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      Former associate directors Alexandra Delf and Flora Beaumont will take the reins of the day-to-day running of MMGY Grifco as its new managing directors.
      As managing director, executive vice president, Delf will lead the organisation’s client and media relations efforts.
      Formerly associate director of Ophir PR, she has a wealth of international experience and a proven track record of launching and building global luxury travel brands.
      As managing director, operations, Beaumont will oversee financial management, growth, client strategy and team management.
      She was formerly associate director of Grifco PR and has spearheaded impressive company growth over the past five years.
      Griffin, who founded Grifco and Ophir PR nearly two decades ago, will remain an integral part of the Grifco business and assist in broader parent company initiatives as partner, MMGY Global.
      “This merger of two MMGY Global brands represents an evolution to our approach in providing dedicated service to luxury and lifestyle brands in Europe, and we are delighted to have two natural leaders in Alexandra Delf and Flora Beaumont at the helm,” said Craig Compagnone, chief operating officer for MMGY Global.
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      UNWTO promotes domestic travel to offset Covid-19 downturn

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      As restrictions on travel begin to ease globally, destinations around the world are focusing on growing domestic tourism, with many offering incentives to encourage people to explore their own countries.
      According to the World Tourism Organisation, with domestic tourism set to return faster than international travel, this represents an opportunity for both developed and developing countries to recover from the social and economic impacts of the Covid-19 pandemic.
      Recognising the importance of domestic tourism, the United Nations agency has released the third of its tourism and Covid-19 briefing notes – Understanding Domestic Tourism and Seizing its Opportunities.
      UNWTO data shows that in 2018, around nine billion domestic tourism trips were made worldwide – six times the number of international tourist arrivals (1.4 billion in 2018).
      The publication identifies ways in which destinations around the world are taking proactive steps to grow domestic tourism, from offering bonus holidays for workers to providing vouchers and other incentives to people travelling in their own countries.
      UNWTO secretary general, Zurab Pololikashvili, said: “UNWTO expects domestic tourism to return faster and stronger than international travel.
      “Given the size of domestic tourism, this will help many destinations recover from the economic impacts of the pandemic, while at the same time safeguarding jobs, protecting livelihoods and allowing the social benefits tourism offers to also return.”

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      The briefing note also shows that, in most destinations, domestic tourism generates higher revenues than international tourism.
      In OECD nations, domestic tourism accounts for 75 per cent of total tourism expenditure, while in the European Union, domestic tourism expenditure is 1.8 times higher than inbound tourism expenditure.
      Globally, the largest domestic tourism markets in terms of expenditure are the United States with nearly US$1 trillion, Germany with US$249 billion, Japan US$201 billion, the United Kingdom with US$154 billion and Mexico with US$139 billion.
      Given the value of domestic tourism and current trends, increasing numbers of countries are taking steps to grow their markets, UNWTO reports.
      This new Briefing Note provides case studies of initiatives designed to stimulate domestic demand.
      These include initiatives focused on marketing and promotion as well as financial incentives.
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      Fosun to bring Thomas Cook brand back to market

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      Fosun to bring Thomas Cook brand back to market

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      Fosun is preparing to relaunch Thomas Cook as an online travel agency in the coming days, in a dramatic return for the brand.
      The travel giant ceased trading in September last year under a mountain of debt.
      The Chinese conglomerate, which was previously the largest shareholder in Thomas Cook, then stepped in and acquired the branding rights to the company for £11 million in November.

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      Ahead of a potential relaunch, Fosun has now received an ATOL licence for a new venture from the Civil Aviation Authority.
      The CAA website has been updated to show Thomas Cook Tourism (UK) Company has been granted the licence under ATOL number 11806.
      Despite its previously huge scale, carrying hundreds of thousands of passengers anually, the revived Thomas Cook is expected to carry less than 50,000 passengers in its first year.
      The initial ATOL licence is for 364 passengers to the end of September.
      A refreshed website is currently calling on potential Thomas Cook passengers to register their interest.
      Image: Stephan Schulz/DPA/PA Images
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      IATA warns of looming catastrophe for UK aviation sector

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      The International Air Transport Association has outlined the need for an urgent rescue plan for UK aviation, in the face of what it brands an “imminent unemployment catastrophe”.
      The United Kingdom is experiencing an air transport crisis, which threatens to put more than 820,000 people out of work across the entire UK economy, IATA said.
      The damage has been exacerbated by government policies, particularly the imposition of quarantine measures which kill demand for air travel.

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      Without immediate action, the UK will fall behind international partners and will quickly lose its coveted position as the third biggest global aviation market, the trade body said.
      In order to resume air connectivity and save thousands of jobs, the UK government must set out a rescue plan for UK aviation.
      IATA proposes a four-point plan to outline a roadmap for lifting quarantine measures and create a short-term boost to demand:
      A testing regime, to unlock travel from high-risk countries.
      A review of the infection threshold for quarantine that is fully transparent and aligned with international partners.
      A suspension of Air Passenger Duty to kick-start demand.
      Extending the furlough scheme for the air transport sector until border restrictions are lifted and the industry has a chance to recover.
      “The stop-start-stop closing of the UK to the world is not a successful survival tactic for Covid-19.
      “Without a rescue plan, 820,000 jobs will be vaporized by quarantine and they may never come back.
      “The answer is a COVID-19 testing regime that manages the risk to keep people safe from the virus. And it will avoid apocalyptic unemployment that is sure to devastate society and the economy,” said Alexandre de Juniac, IATA director general.
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      Job cuts at American Express Global Business Travel in UK

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      Job cuts at American Express Global Business Travel in UK

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      American Express Global Business Travel has confirmed it will make cuts to its workforce in the UK as the hospitality industry continues to battle the fallout from the Covid-19 pandemic.
      The company has more than 18,000 staff in 140 countries, with 2,200 based on the UK.
      A statement explained: “GBT is in a very strong financial position, but in the current environment we have to reset our cost base to more closely align with demand.

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      “We have taken measures to protect as many jobs as possible, including the use of government support schemes where available, voluntary retirement and voluntary severance programmes, and introducing new flexible working options.
      “There are some areas where unfortunately these measures alone are insufficient. 
      “Only in these specific circumstances, we will consult with our colleagues on the difficult decision to implement involuntary reductions.
      “We continue to consult with and support affected colleagues throughout this period.”
      Reports suggest a third of the UK workforce could go, but no firm details were forthcoming from the company.
      Last year, Amex GBT reported business travel gross sales of $3 billion for the UK, a figure buoyed by its merger with Hogg Robinson Group.
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      ABTA issues new call for government support

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      Convened by ABTA, the Save Future Travel Coalition has written to the UK treasury and other relevant departments with a joint budget submission.
      The travel industry group has outlined plans for tailored support for the sector.
      The letter highlights the strategic and economic importance of both outbound and inbound travel, and the serious situation that businesses face.
      It is signed the leaders of ABTA, Advantage Travel Partnership, AITO, ATAS, the BTA, the SPAA, SBiT, the Travel Network Group and UKinbound.
      Setting out a plan to save future travel, which includes changes to quarantine policy, the introduction of testing and the granting of an APD holiday, the coalition explains that with the right policy and regulatory support the government can save jobs and ensure the viability of the travel industry.

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      Luke Petherbridge, director of public affairs at ABTA, said: “Through the Save Future Travel Coalition, we are uniting behind common asks and seeking to amplify the voice of travel.
      “Our message is clear, travel is a critical strategic sector for the entire UK economy, which underpins the air routes and other transport links that are vital for the UK’s global trade.
      “Failure to support the travel sector will setback the UK’s economic recovery, and it’s vital the government acts quickly to support businesses and retain jobs.”
      Heathrow chief executive John Holland-Kaye earlier warned the UK could face serious economic consequences if action was not taken to protect the aviation sector, while IATA issued a similar caution.
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      IATA warns aviation capacity will be vital for Covid-19 vaccination

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      The International Air Transport Association has urged governments to begin careful planning to ensure full preparedness for when vaccines for Covid-19 are approved and available for distribution.
      The association also warned of potentially severe capacity constraints, with as many as 8,000 aircraft needed for the huge task.
      Air cargo plays a key role in the distribution of vaccines in normal times through well-established global time- and temperature-sensitive distribution systems.
      This capability will be crucial to the quick and efficient transport and distribution of Covid-19 vaccines when they are available, and it will not happen without careful planning, led by governments and supported by industry stakeholders.
      “Safely delivering Covid-19 vaccines will be the mission of the century for the global air cargo industry.

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      “But it won’t happen without careful advance planning.
      “And the time for that is now.
      “We urge governments to take the lead in facilitating cooperation across the logistics chain so that the facilities, security arrangements and border processes are ready for the mammoth and complex task ahead,” said IATA director general, Alexandre de Juniac.
      Vaccines must be handled and transported in line with international regulatory requirements, at controlled temperatures and without delay to ensure the quality of the product.
      While there are still many unknowns (number of doses, temperature sensitivities, manufacturing locations, etc.), it is clear that the scale of activity will be vast, that cold chain facilities will be required and that delivery to every corner of the planet will be needed.
      Working effectively with health and customs authorities will, therefore, be essential to ensure timely regulatory approvals, adequate security measures, appropriate handling and customs clearance.
      This could be a particular challenge given that, as part of Covid-19 prevention measures, many governments have put in place measures that increase processing times.
      “Delivering billions of doses of vaccine to the entire world efficiently will involve hugely complex logistical and programmatic obstacles all the way along the supply chain.
      “We look forward to working together with government, vaccine manufacturers and logistical partners to ensure an efficient global roll-out of a safe and affordable Covid-19 vaccine,” said Seth Berkley, chief executive of Gavi, the Vaccine Alliance.
      On top of the transport preparations and coordination needed, governments must also consider the current diminished cargo capacity of the global air transport industry.
      IATA warned that, with the severe downturn in passenger traffic, airlines have downsized networks and put many aircraft into remote long-term storage.
      The global route network has been reduced dramatically from the pre-Covid 24,000 city pairs.
      “The whole world is eagerly awaiting a safe Covid-19 vaccine.
      “It is incumbent on all of us to make sure that all countries have safe, fast and equitable access to the initial doses when they are available.
      “As the lead agency for the procurement and supply of the Covid-19 vaccine on behalf of the COVAX Facility, UNICEF will be leading what could possibly be the world’s largest and fastest operation ever.
      “The role of airlines and international transport companies will be critical to this endeavour,” said Henrietta Fore, UNICEF executive director.
      The potential size of the delivery is enormous.
      Just providing a single dose to 7.8 billion people would fill 8,000 747 cargo aircraft.
      Land transport will help, especially in developed economies with local manufacturing capacity.
      But vaccines cannot be delivered globally without the significant use air cargo.
      “Even if we assume that half the needed vaccines can be transported by land, the air cargo industry will still face its largest single transport challenge ever.
      “In planning their vaccine programs, particularly in the developing world, governments must take very careful consideration of the limited air cargo capacity that is available at the moment.
      “If borders remain closed, travel curtailed, fleets grounded and employees furloughed, the capacity to deliver life-saving vaccines will be very much compromised,” concluded de Juniac.
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      Cities Direct closes in wake of Covid-19 slowdown

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      Cheltenham-based Cities Direct has closed in the wake of the Covid-19 pandemic.
      The news was announced earlier by Martyn Sumners, executive director of AITO, following consultations with managing director, Jace Quick.
      Sumners explained: “Cities Direct had been a member of AITO for nearly nine years and had traded for 20 years. 
      “The company had full financial protection in place via the CAA, ABTA and IPP.
      “Understandably, in the current very difficult trading climate, they saw a lack of consumer demand and felt that they would be throwing good money after bad if they battled on and borrowed money.

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      “At AITO, we are hugely sorry about the demise of Cities Direct.
      “Jace and his team will be missed, and we wish them well for the future, whatever they each decide to do as individuals.”
      Cities Direct was launched in September 2000.
      A statement from the company said: “We have had an incredible 20 years developing and growing Cities Direct in an ever-evolving industry. 
      “We have very much enjoyed the experience, and would like to thank our staff, travel industry partners and many loyal customers for all their support over the years.
      “We had so many exciting plans for the future of the business, but the impact of Covid-19 travel restrictions has been devastating.”
      Sumners said the failure should prompt government action to support the travel sector.
      He added: “In such problematic times, while AITO battles to convey to the many government departments to which we report the myriad problems that our SMEs are encountering – without much in the way of reaction or assistance to date – this is a clear indication of the desperate straits that many formerly vibrant companies find themselves in, through no fault of their own.
      “We hope that this first AITO Covid-19 casualty signals clearly to government that the many U-turns it has taken over the past six months have severely shaken consumer confidence when it comes to booking overseas holidays.
      “The entire outbound travel market is under intense pressure.
      “We need government support to enable us to survive and to continue to pay our usual enormous amounts of tax into the exchequer for the greater good. 
      “The alternative is too depressing for words.”
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