The third edition of BDO’s annual report, The Travel Diaries, predicts that a looming liquidity crisis will squeeze certain operators to the point of failure, notably those with the "weakest business models" or those who entered the crisis with insufficient cash reserves.
BDO’s analysis of the balance sheets of many UK outbound travel operators conducted at the start of the crisis found that in many cases, where revenue was recognised on departure, deferred income exceeded cash.
