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    STA Travel ceases trading in UK as pandemic bites

    STA Travel has ceased operations in the UK, further illustrating the economic plight faced by many companies in the wake of the Covid-19 pandemic.
    The company grew out of a student travel business and specialised in trips for young people, including gap years and volunteer projects.
    Before the news was confirmed, STA Travel had more than 50 shops in the UK.
    A brief statement on the STA Travel website read: “Please be assured that if you had a previous booking with us, or hold a live booking, you will receive further communication in the coming days.
    “We are sorry for the inconvenience and the limited information available to you at this time.”
    Around 500 jobs are likely to go following the closure.

    pic.twitter.com/CzRK5NJ4SH
    — STA Travel UK (@STATravel_UK) August 21, 2020
    A statement from ABTA added: “The news that STA Travel, which was a long-standing ABTA Member, has ceased trading will send a shockwave through the industry, bringing to life the very real pressures that travel is under at the moment.
    “STA Travel will be a name that is familiar to most people who will have used them to travel or been aware of their name on the high street, and this distressing news will sadly affect the livelihoods of hundreds of employees.”
    ABTA added many customers would have used STA Travel to book package holidays as well as individual air tickets.

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    The majority of holidays sold were flight inclusive packages, which are protected by ATOL, while scheduled airline ticket bookings should proceed as normal.
    Non-flight-based packages will be protected, said ABTA.
    “If customers booked a package holiday through STA Travel, and the holiday is provided by another tour operator, they will need to contact the tour operator who should be able to confirm that their booking will go ahead as normal,” said the spokesperson.
    STA Travel, which originally stood for Student Travel Australia, but was later rebranded Student Travel Association, was founded in 1971, and specialises in long-haul, adventure and gap year travel.
    The firm said: “Over recent months, the company took decisive measures to secure the business beyond Covid-19.
    “However, sales have not picked up as anticipated, due to consumer uncertainties, further restrictions and renewed lock-down measures, which are expected to largely continue into 2021.”
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    WTTC launches travel recovery analytics tool

    A new in-depth data dashboard highlighting the recovery of travel demand across flights and hotels has been launched by the World Travel & Tourism Council (WTTC).
    The technology also examines the shifting intentions of travellers through online travel searches.
    The one-stop data shop or Interactive Covid-19 Travel Demand Recovery Dashboard was alongside McKinsey & Company.
    This unique tool provides users with easy access to qualitative and quantitative travel data at the global and regional level as well as for 33 major countries around the world, by revealing travel demand since the beginning of the year and is updated on a fortnightly basis.
    The dashboard offers a useful way to navigate through a vast array of data as travel demand around the world changes, in response to the gradual reopening of borders as travel restrictions are across the globe are eased.

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    Free to all WTTC members and non-members, it presents two distinct views based on Google trends and searches, and bookings via research partners in the project.
    ForwardKeys provide flights data, while STR shares hotel occupancy levels.
    Gloria Guevara, WTTC chief executive, said: “We have created a unique dashboard featuring qualitative and quantitative data to provide the insights which could be crucial to help the tourism sector re-start and map out the path to its recovery.
    “Our dashboard will enable decision makers to track the impact of public policies by monitoring the positive and negative fluctuations of flight and hotel bookings and also online travel searches, as well as consumer confidence.
    “Data is essential for businesses, government and other organisations to make informed choices and drive the policy which will revive a sector that has suffered disproportionally due to the pandemic.”
    More Information
    Take a look at the dashboard here.
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    Latest WTTC Safe Travel recipients revealed

    Croatia, Ecuador and Ghana have become the latest destinations to be awarded a global safety stamp by the World Travel & Tourism Council (WTTC).
    Ecuador received its WTTC Safe Travels stamp, following a major government announcement which will see international travellers arriving with a negative test taken within the previous ten days, exempt from its 14-day isolation.
    This move will help reopen its tourism sector and provide a significant boost to the economy, authorities argue.
    WTTC created the Safe Travels stamp in May this year to allow travellers to identify destinations and businesses around the world which have adopted the global standardised health and hygiene protocols.
    Gloria Guevara, WTTC chief executive, said: “Our Safe Travels stamp continues to go from strength to strength and we are delighted to see even more popular countries and destinations from all corners of the world adopt our global health and hygiene protocols.

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    Awkwardly for the WTTC, Croatia may be the next country removed from the quarantine-free safe list for UK travellers.
    With 219 new cases in the 24 hours to Wednesday afternoon, the infection rate is four times higher than in the UK, prompting concern the country could follow Spain and France off the list.
    Nikolina Brnjac, Croatia minister of tourism and sports, said: “Croatia is very proud to work with WTTC during these difficult times.
    “As a popular European and Adriatic destination, we are doing our best to face all difficulties and to secure stability and safety for the local population and for all the travellers who have decided to visit us this year, despite the current circumstances.
    “To make the new normal possible, we have gone to great lengths to prepare the necessary safety-protocols and measures.
    Since the launch of the Safe Travels stamp, destination countries and cities around the world have now adopted new protocols, including holiday heavyweights such as Tunisia, Indonesia, Egypt and Dubai.
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    Cox & Kings targets solo travellers

    Luxury small group tour specialist Cox & Kings has reported an increase in demand for solo travel.
    On the back of a lockdown which saw borders close and airlines cancel flights, travellers are itching to get out and see the world – regardless if their friends and family would like to join.
    In research conducted in the height of the pandemic, solo travel came in the top three of the types of trip consumers would like to go on, highlighting luxury travellers’ desire to explore the world post lockdown no matter what.
    Reacting to the increase in demand Cox & Kings have released the first three solo places booked on select departures of their most popular trips with no single supplement to pay.
    Kerry Golds, managing director of Cox & Kings, commented: “We’re getting the distinct impression from our enquiries that there is pent up demand out there, particularly from solo travellers.
    “The British people have wanderlust in their DNA, so it’s no surprise that lockdown was a wakeup call for some people to dust off their bucket list and get something booked no matter if it is without their family and friends.

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    “We have known for a long time that solo travellers don’t feel they’re well catered for by the travel industry – with high single supplements often quoted as an example of this.”
    Golds added: “Now, with the introduction of our new no single supplement for the first three places booked, solo travellers are keen not to miss out – our recent launch to our database generated an 220 per cent uplift in enquiries for our 2021 programme from solo travellers and some tours have already sold out.”
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    UKinbound urges tailored support for tourism sector

    UKinbound has released its latest business barometer results, indicating that the recent government stimulus, designed to help businesses and the economy, falls short.
    The trade body has found recent support will not help a significant number of valuable companies in the inbound tourism industry.
    Over half (52 per cent) of businesses stated that the VAT reduction would not be beneficial to them, with just one in five stating the policy would positively impact on business.
    When questioned on the merits of the job retention bonus, nearly two-thirds of businesses stated they hoped to be eligible, however one in ten companies said that they do not expect to bring anyone back from furlough.
    Confidence levels about the impending 12 months also sit at a near-record low, with just 13 per cent of respondents stating they are confident about bookings/visitor revenue/customer orders in the next year.

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    The survey also asked members about their bookings/visitor numbers/customer orders in quarter two, with 96 per cent confirming they were down on the same period last year, by an average of 92 per cent.
    Just last month, July, the association expressed grave concerns that its tour operator and destination management company members will need to make around 10,000 job cuts, and over half will fail within the next six months if the government does not intervene.
    Joss Croft, chief executive of UKinbound, commented: “Our latest business barometer results further confirm that many inbound tourism businesses are in critical need of specific support, and that the government’s ‘one size fits all approach’ leaves many out in the cold.
    “Our members are hopeful that the international market will return from spring 2021, but this leaves a gaping hole in business finances until then, and although the VAT cut and job retention bonus is welcome, they alone will not help previously profitable inbound tourism businesses stay afloat.”
    Image: VisitBritain
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    TUI secures new government funding as losses mount

    TUI has secured an additional €1.2 billion in stabilisation funding from German state-owned development bank KfW.
    The deal will see the holiday giant extend an existing credit line by €1.05 billion.
    The drawing of this amount is subject to TUI issuing a convertible bond in the amount of €150 million to the Economic Stabilisation Fund and a waiver by the bondholders of the senior notes due in October next year.
    Both conditions as well as other formal requirements need to be fulfilled by September 30th.
    The company said the €1.2 billion stabilisation package strengthens its position and would provide sufficient liquidity in the current volatile market environment.
    TUI chief executive, Fritz Joussen, said “The additional stabilisation package allows us to focus on the operations and at the same time to drive forward the realignment of the group.
    “Already before the pandemic, we had initiated the next transformation of TUI: the transformation into a digital platform company.
    “This transformation will now be significantly accelerated.
    “Our integrated business model is intact. Summer holidays are taking place again in all markets.
    “We introduced massive cost reductions early and implemented them quickly and consistently.

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    “However, no one knows at present when a vaccine or medication will be available and what effects the pandemic will have in individual markets in the coming months.
    “Therefore, it is right and important to take further precautions together with the German Federal government.”
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    Also today, TUI said it had successfully resumed travel activities in all European markets.
    In mid-June, the company was the first travel company to bring German guests to Majorca in a pilot project.
    After the official end of the travel warnings for most European destinations, holidays were also launched in the remaining TUI markets at the beginning of July.
    In July, more than half a million customers across Europe travelled with TUI on their summer holidays.
    Furthermore, demand for holidays remains “very high” – since the resumption of travel activities, 1.7 million new bookings have been received group-wide.
    However, TUI reported added losses on an EBIT basis for the first nine months of year, including the impact of Covid-19, totalled €1.9 billion.
    Joussen added: “Our integrated business model with aircraft, transfers, hotels and cruise ships is intact and has proved its worth in this difficult environment.
    “During the crisis it has enabled us to be the first travel company to fly guests on holiday.
    “The summer holidays are conducted responsibly and with the highest standards of hygiene in all markets.”
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    GBTA calls for transatlantic cooperation to reopen travel

    The Global Business Travel Association, has reiterated the importance of cooperation between the European Union, Canada and the United States to restore safe travels and reboot the economy.
    The body is urging the European Commission, EU governments, Ottawa, and the White House to pursue talks to find a resolution for transatlantic travel, based on reciprocity, proportionality, and the latest scientific advice.
    “GBTA has repeatedly called on these governments to adopt a coordinated approach in responding to Covid-19 and the evolving situation.
    “As a select number of countries recently chose to reinstate travel restrictions, we would like to stress the importance of closely following the recommendations of the

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    European Centre for Disease Prevention and Control (ECDC), the United States Centres for Disease Control & Prevention (CDC), Public Health Agency of Canada and the World Health Organisation (WHO) to ensure consistency and restore consumer confidence in air travel,” said Dave Hilfman, executive director of the GBTA and a long-time senior airline leader.
    “We encourage open conversations to continue, as well as appropriate communication to the general public. Maintaining transatlantic ties is in the best interest of citizens and the economies of the for all,” added Hilfman.
    Any compromise on travel is, unlikely, until the United States reduces the number of Covid-19 cases it reports daily, with 53,000 new infections recorded yesterday.
    This compares to 385 in Canada, and just a handful in many European countries.
    “Safety is paramount and should weigh heavily in discussions of restarting travel.
    “Contact-tracing applications can effectively help fight the pandemic but can only do so if they are subject to a common set of standards to enable rapid exchange of information and limit the risks of further outbreaks,” added Mark Cuschieri, chair of the European advisory board at the GBTA.
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    Saga to launch Covid-19 holiday insurance

    Saga will become one of the first insurers in the UK market to extend the terms of its travel insurance policies to include some cover for cancellation due to Covid-19.
    The policy update will apply to all new and renewing customers.
    The cover means that any customer taking out a new policy from today will be able to claim up to £10,000 per person insured if they need to cancel a holiday because they receive a positive Covid-19 test in the 14 days before their trip departure date.
    These changes have been introduced to provide customers with the confidence to travel in the coming weeks and months. 
    It is also in response to increasing customer demand – cancellation cover was named as the second most important thing companies could do to make people more comfortable about travelling abroad in a recent Saga survey.

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    As travel advice continues to change, Saga will review its policy terms to ensure customers receive significant value from the cover.
    Saga will also introduce further elements of cover based on customer feedback.
    Kevin McMullan, head of product, Saga Health and Travel Insurance, said: “With travel restrictions continually changing, many people may be worried that much-anticipated holiday plans could be cut short, or increasingly reluctant to go at all.
    “Now more than ever people need to feel confident and reassured when planning to travel overseas.
    “We’re continuing to review and update our products to ensure they reflect the needs of our customers.
    “However, we know the impact of coronavirus is far-reaching.”
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