Tour operators have renewed the trade’s calls for more support from government on the way the furlough scheme operates in the travel sector.
Suppliers speaking on a Travel Weekly Webcast said they needed their staff to work on rebookings and refunds, but had been forced to furlough staff as no revenue was coming into their businesses.
Premier Holidays sales and marketing director Debbie Goffin said: “We definitely need more support. We can’t furlough staff that we need to rebook holidays.”
Caribtours chief executive Paul Cleary said the situation had left half the company’s staff working harder than before to support agent and direct bookings while others were not allowed to work. “50% of my guys are on furlough and the other 50% are working twice as hard for less money,” he said.
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Goffin pointed out a potential solution for the UK government would be to copy the furlough scheme in Jersey, in the Channel Islands, one of the operator’s destinations. This has allowed companies to furlough staff but also let them work based on the fact many of the island’s businesses are hugely reliant on tourism for income.
‘Hospitality a separate case’
“They have recognised that hospitality is a separate case,” said Goffin, who said there were “encouraging signs” the UK government was starting to recognise the travel and tourism industry’s need for a bespoke scheme.
She added: “I’m confident that at some point, there is going to be recognition that hospitality will be treated differently and that will all give us a little bit more time to get our ducks in line and work out how we can come out of this.”
But if the furlough scheme is left unchanged, she hinted travel businesses could have to make difficult financial or staffing decisions. She admitted: “It’s going to mean that we’re going to have to look very seriously at the future.”
‘Staff could leave sector’
USAirtours chief executive Guy Novik warned staff could leave the sector if the government starts to phase out the furlough scheme and expects firms to pay a higher percentage of employees’ salaries.
He said: “There’s some talk of it being phased, so that they might drop it [the amount government pays] to 60% [of salaries] and 40%. Clearly, in an industry that’s not renowned for big margins, the opportunity for companies to try to make up the difference between 60%, 40% and 100% of wages is probably not going to be practical, at which point staff may start to vote with their feet and decide they have to try and get a job elsewhere.
“It’s the uncertainty that is causing. People are hanging on and waiting for things to improve and worrying about when the furlough scheme may change will come to an end.”
