Travel demand has “soared” but the industry faces multiple challenges on its recovery journey, warned Julia Lo Bue-Said, CEO of the Advantage Travel Partnership at the organisation’s conference in Madeira.
“Whilst we’re in recovery phase it’s clear our industry has a long journey ahead,” she said, adding that while demand for travel has soared since January and 95 per cent of members are optimistic about navigating out of the pandemic, there remain “significant challenges ahead”.
Balance sheets have been “decimated”, said Lo Bue-Said, adding that there is increased business debt from maximising grants and CIBLS loans as well as VAT deferrals that now need servicing.
She continued: “The cost of living crisis, challenging cashflow, merchant providers view of risk alongside how regulatory bond values are being set as well as ensuring we can regenerate travel with sustainability front of mind are all issues the industry is now facing.”
Furthermore, she pointed to industry infrastructure “buckling” under the pressure of the recent resurgence in travel, complicated and ongoing travel restrictions, regularly changing flight schedules, and the “passport shambles”.
The complexity around travel has presented an opportunity for agents across business and leisure travel that has led to a “phenomenal increase in new to agent business”.
“Every booking is, however, more complex with, on average, a human touch by a consultant needed at least three times during the transaction process – and we’re seeing this for all types of travellers both in business and leisure,” said Lo Bue-Said.
The Advantage boss also criticised the UK government’s policy on border closures which “we know now led to unnecessary and hugely detrimental border closures and restrictions resulting in minimal public health benefit,” referring to a recent report from the House of Commons’ Transport Committee.
Lo Bue-Said concluded: “The first sector to feel the impact of the pandemic remains one of the only industries still facing considerable challenges. The travel industry must not be swept under the carpet, forgotten or put itself in a position of being a constant punching bag. Tough times are far from over. Our entire ecosystem needs protecting against future economic shocks, some of which are about to reach our doorstep.”