An appeal for government support for high street travel agents has been issued to prime minister Boris Johnson and chancellor Rishi Sunak.
Dorking Travel owner Alistair McLean argued that ‘one size fits all’ business support measures during the Covid-19 pandemic lockdown have failed travel outlets.
And he warned of mass redundancies in retail travel when the staff furlough scheme is withdrawn,
McLean said in his letter: “I am writing to request more help for those, like me, in the retail travel business.
“The grant given to many high street shops has certainly helped, and the furlough scheme has also assisted many businesses to retain staff through these difficult times.
“However, there really are some major differences between travel agents and other retail shops on the high street.
“The local butcher has been able to continue to trade and has developed a very good home delivery service. Since the lockdown measures have been eased, the queues outside his shop have grown longer and longer.
“The clothing shop has also reported brisk on line sales and has developed a good home delivery service. Both businesses received the grant and are now exempt from business rates for 12 months.
“I would not wish to make believe it has been easy for them, but they have continued to have an income. The high street travel agent has not. In fact quite the opposite.
“Like other retailers, we are still obliged to meet our fixed costs (rent, wages etc).
“However, since March agents have been refunding money to customers, and this has included the commission we earned on the sale of the holidays when they were sold, in some cases in 2019 for 2020 departures. Many colleagues have had to dip into personal savings to meet the obligation.
“Whilst the bounce back loans are welcome, the money must be paid back at some stage.
“The owner of the butcher or the clothing shop has not had to refund money earned prior to the pandemic. Equally when other retail shops open, most will have an immediate cash flow.
“With no international travel allowed for the ‘foreseeable future’ (FCO wording) and the restrictions in place when some destinations are open, travel agents are not expecting many new sales for 2019 and must hope for travel departures in 2020.
“As the travel business is highly regulated and agents do not generally receive the commission earned until about 8 weeks prior to the customers departure this means no income for at least 8 months.”
McLean warned: “If the furlough scheme is withdrawn for us in retail travel, this will mean we will be unable to pay wages and redundancies will happen.
“Although landlords have been patient, rent need(s) to be paid and if there is no income, shops will close and revenue from the rates being re-introduced in 2021 will disappear.
“I believe high street travel agents should be given an additional grant. I also believe that we should be treated differently with regard to the furlough scheme and be allowed to rely on government assistance to retain our staff through these difficult months ahead.
“We are an important link in the travel business chain between tour operators and airlines. Travel agents will adapt in the months and years ahead and some indications show that consumers will go back to the high street agent.
“However, we need to be able to preserve our cash flow and we need help from government to achieve long term success.
“Without assistance I fear shops will lie empty, mass redundancies will take place especially amongst the younger generation and the consumers choice will be limited.”