Trade bodies have warned the government “not to make the same mistakes again” as they call for longer-term support for the sector to survive the cost-of-living crisis.
The government has unveiled plans to cap average household energy bills at £2,500 a year for two years from October.
Businesses will receive “equivalent support”, with energy costs capped at the same price per unit as households, but only for six months.
More: SPAA president calls for trade unity to tackle cost-of-living crisis
A review of proposals for business is due in three months, with ongoing support possible for “vulnerable industries”, which are likely to be the highest energy users.
Abta, Aito and The Travel Network Group welcomed the support but highlighted the need for help beyond the next six months, travel’s ‘low season’.
Abta chief executive Mark Tanzer called the six-month limit “disappointing”.
He said travel firms “should be eligible” for support beyond winter and urged the government to “look at other ways” to help, such as extending business rates support and working with banks to provide “respite” on repayment of Covid loans.
Tanzer said: “Our members are heading into the cost-of-living crisis after the worst two years in the industry’s history, with small to medium-sized businesses particularly vulnerable.”
Aito executive director Martyn Sumners described the measures as “a positive step” but said six months was “far too short a period to deliver real help”.
He said: “The industry was the hardest-hit in the pandemic, according to the Office for National Statistics, and had a difficult restart to trading due to ongoing issues with flight cancellations and airport staffing.
“Not all businesses benefited from grant schemes in the pandemic. We therefore urge the government not to make the same mistakes this time around, and to include support for agents and operators well beyond the initial six months.”
The Travel Network Group said the lack of detail and time limit were “extremely concerning” and warned the crisis could be “the last straw” for businesses.
Chief executive Gary Lewis said: “The scheme hasn’t outlined specific plans and savings for businesses, which have an increased threat of financial ruin during this crisis.
“The idea of negotiating long-term contracts with energy suppliers will be hugely welcomed, but only if this will enable bills to come back down to reasonable levels.”