Furlough replacement scheme won’t help industry in any way, says SPAA president Joanne Dooey
It’s difficult to explain to people outside of the industry exactly how, and when, travel agents make their money. In all the lobbying the SPAA has done – and increasingly since the pandemic – I can’t believe the number of politicians I’ve spoken to who just don’t understand that travel agents don’t make a penny until the customer’s holiday is paid in full. We’ve even created a flow chart to explain, but it isn’t sinking in.
We were all awaiting some good news from Rishi Sunak last week in the build-up to his announcement of a replacement policy for the furlough scheme. But the result turned out to be a damp squib for the travel industry. Yes, the government is subsidising jobs that are “viable” – the chancellor’s word – by contributing towards wages if businesses employ staff for at least a third of their hours.
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But agents up and down the country can’t afford to pay staff wages at all when they are not bringing any money into the business. The catch-22 is that we really need staff working, to move or cancel holidays, and process refunds in a timely fashion. It’s our duty of care to our customers.
The SPAA, among others including the Save Future Travel Coalition, have been arguing for tailored support for the sector – but the sad truth is the travel industry will not get such a scheme as long as the politicians making the decisions don’t understand how our industry works.
Politicians perplexed
It doesn’t help that politicians group the outbound travel industry together with hospitality which, while facing problems of its own, isn’t in the same boat as travel in terms of needing staff to work to return all the money we were due to make this year. And politicians seem to think aviation is a byword for travel, forgetting the huge sector of agents and tour operators that makes it tick.
During furlough, staff were not allowed to work when we really needed them, and from November we’ll have to pay 55% of salaries for 33% of their hours. Simply put, the chancellor’s Jobs Support Scheme hasn’t helped us in any way. The reality is that we’re going to end up losing some very talented people from this industry as a result.
Ultimately, the only thing that will make travel agents’ jobs viable is a return of travel. The only way to get there is to introduce Covid testing at airports (and again between five and eight days afterwards) to reduce quarantine; and to fully regionalise quarantine to open up key markets like the Canary Islands, which could be key to salvaging any sort of winter market that would provide vital cashflow to see us through to next year. Until confidence comes back, there will be no significant travel industry.
Scotland’s issue
Of course, it doesn’t help the SPAA’s members in Scotland when the first minister openly tells the population not to travel overseas, or even holiday in the rest of the UK. My agency must be among the biggest bookers of Hoseasons since March, but since Nicola Sturgeon’s announcement last week, the phones have been non-stop with customers cancelling. It seems to me she’s using the pandemic to push her independence agenda rather than listening to the needs and expertise of business. We’re not taking this lying down.
We’ve lobbied hard throughout this crisis, in both Scotland and Westminster, including successfully calling for Scotland to be brought in line with England in terms of eligibility for grants for multiple branches.
Additional grants would help us until travel returns. The chancellor may have extended government loan schemes, but many fellow business owners I’ve spoken to don’t want to burden themselves with more debt. That, remember, was what brought Thomas Cook down. There are some really savvy independent travel agents who will find a way through this crisis, but not everyone will. Many now seem genuine when they say they’re ready to throw the towel in.
So Rishi’s big announcement may be a lifesaver for some industries, but until politicians can understand how our sector works, this policy will not stop mass redundancies or save viable travel businesses.
More: Job Support Scheme won’t change ‘cliff edge’ date for travel
Chancellor’s Jobs Support Scheme ‘writes off’ travel industry
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