New Covid-19 report outlines travel industry frustration at response

The travel industry’s frustration with the government’s handling of the Covid-19 pandemic and lack of tailored support for the sector has been outlined in a new report.

The report features a summary of a roundtable discussion featuring representatives of the travel, hospitality and retail sectors which forms part of the wider Covid-19 Inquiry.

In it, bodies including Abta, the Advantage Travel Partnership, UKHospitality and Visit Britain explain the impact of the pandemic and subsequent measures on businesses.

Particular areas of focus include the travel industry’s inability to fully utilise the furlough system due to the need to process cancellations and refunds, and frustration at a lack of consistency in eligibility rules for other business support and relief.

Representatives also criticised the notorious “traffic light system” and weekly 5pm announcements made by foreign secretary Grant Shapps via social media which became known as “Shapps O’Clock”.

In a statement following the publication of the report, Abta said its submissions at the roundtable highlighted how measures “were often applied without full consideration to how the industry operates, and the different businesses within it”.

It also flagged inconsistencies in business support, saying its lobbying had led to travel agencies eventually being included in the scope of grants support when retail was closed, but noting other businesses including coach and tour operators received no national support packages despite being “effectively closed down”.

The association’s chief executive Mark Tanzer said: “The travel industry felt the impact of the Covid-19 pandemic like no other sector.

“When travel shut down, unlike most other businesses, travel companies couldn’t pivot – no international travel meant no revenue. We know some of our members are still feeling the effects, particularly the pressure of loan repayments.”

He added: “Of course, we recognise the immense challenge the pandemic posed the government, and the need to protect public health. However, as recognised in today’s report, often measures adopted were impractical and did not reflect business realities.”

Tanzer said: “It has been really important for the Covid-19 Inquiry to hear from the industry, and we were pleased to have been able to share our insight and members’ experience.

“If a similar situation arises in future, we need a policy response that protects public health but also recognises the impact on business, providing tailored measures and commensurate support.”

He also noted recognition of the role of Refund Credit Notes, an initiative instigated by Abta and eventually backed by the Civil Aviation Authority and government, which “helped to save many travel businesses, as well as providing confidence for consumers that they wouldn’t lose out financially”.

The Advantage Travel Partnership’s evidence to the round table stressed the financial burden placed on the sector and companies within it, which were unable to generate revenue and were often forced to take on debt to survive.

It said: “[It was] the real operational challenge that impacted inbound and outbound (travel). All staff had to work to manage all changes required without any cash coming in. You make money when passengers depart. It (the sector) was using its own cash to manage the changes required.”