Abta chief executive Mark Tanzer has told the government to “step up and support the travel industry”, saying the extended furlough scheme is still not flexible enough to reflect the ongoing demands on travel firms.
It was previously extended until the start of December after a second England-wide lockdown was announced from November 5 until December 2.
Tanzer said: “It is time this government stepped up and supported the UK travel industry. Other sectors who have been hit hard by the pandemic have received tailored support from the government – but travel has been left waiting in spite of clear evidence of the harm that is being done.
“While the extension of furlough may seem positive on the face of it, it needs to be much more flexible for it to make a difference to jobs and businesses in the travel sector – taking into account that staff will have to work on re-bookings and refunds but won’t be generating any income.
“Without the flexibility in furlough and tailored support for the sector, travel agents and tour operators face more brutal months ahead with little or no ability to sell holidays but mounting costs and rising redundancies.”
Tanzer’s comments were echoed by Miles Morgan, chairman of Miles Morgan Travel, who welcomed the furlough extension but added: “It does not address the issue that the travel industry has pretty much been closed down by the government. Unlike pubs we cannot furlough all our staff to save cost because of booking changes and refunds.”
Advantage Travel Partnership chief executive Julia Lo Bue-Said said the extension “will enable businesses to plan for the months ahead” but noted travel agents need staff working to manage cancellations and re-bookings due to ongoing travel restriction changes, quarantine measures and “yo-yo travel corridors” while receiving no income.
She added: “The travel industry desperately needs an exit strategy so it can start to rebuild confidence to encourage consumers and business travellers to start travelling again and provide travel agents and the broader industry the opportunity to generate revenue, at the moment the product that they sell – travel – has been taken away from them through a blanket travel ban.”
Lo Bue-Said reiterated calls for a “robust testing regime to be implemented at UK points of entry and a reduction in the quarantine period so that we can get people travelling safely once again”.
Paul Waters, director, of Premier Travel, also warned that more help was needed for the travel industry to get back on its feet.
He said: “The announcement from the chancellor is positive providing the flexibility in the furlough scheme remains.
“While it was necessary for government to extend the furlough scheme giving additional support through the winter we still have other important needs, for travel to be ready to restart as soon as this lockdown ends: the lifting of the current non-essential travel ban, better flexibility with the travel corridor policy and having testing in place.
“With the forced closure of our branches this has meant more staff will be furloughed, however, we remain fully operational offering the same service as before as if our doors were open.”
Despite the concerns, many agents expressed relief over the update.
World Travel Lounge managing director David McDonald said: “It’s brilliant news for us. It gives us the flexibility to ensure that we can survive as our biggest cost is payroll.
“If we can gain support from our local authorities then this would help keep all shops open for the long term but [the furlough extension] gives us the breathing space to allow travel to bounce back. I think it’s a huge benefit to the retail travel sector.”
The Business Travel Association also welcomed the move, saying many members had indicated jobs would be saved as a result.
Clive Wratten, chief executive, said: “The extension of the furlough scheme into 2021 is a welcome development. The vast majority of our members believe it will help them protect their businesses throughout the winter months, and many have indicated that it will enable them to save jobs that would otherwise have been made redundant.
“Whilst this will help protect the business travel sector, airport testing is the only way to get British business travelling again, and that is vital for UK plc. The government must have a testing plan fully in place for when this lockdown ends.”
Juliet Price, consultant executive director of Mice association the HBAA, said: “At last the chancellor has given us clear longer term information at an earlier stage so that the industry can plan ahead and not just wait with uncertainty until the end of lockdown.
“Yes, it would have been better to have had this available and announced before many jobs were lost and businesses jeopardised. However, added to the news today that the revised guidance allows ‘necessary’ meetings for less than 30 to continue being held at permitted venues in England, we now have positive steps forward for many business events and meetings companies, their staff, and the self-employed.”
She added: “It was a welcome relief to see special mention of the events industry sector in the government’s instruction to local authorities when distributing the discretionary funding pot. We need every possible support to keep all the talented people in our industry, including training them to work on hybrid and virtual meetings until major live events can begin again.”