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Coronavirus risks putting several travel companies out of business

Operators
Pippa Jacks
7 February 2020

The coronavirus could put several companies reliant on the Chinese market out of business, industry leaders have warned.

The current global outbreak is understood to have originated in the Chinese city of Wuhan

UKinbound boss Joss Croft said during a CEO’s round table at the association’s Annual Convention that several of his members lacked the financial reserves to survive the cancellation of so many bookings.

“Some members might go out of business before this clears up,” he said. “There are some with desperate cash flow problems, they’re just not getting any money in.”

Tom Jenkins, CEO of the European Tour Operators Association, reported that one of his members had had 2,000 cancellations.

“What we’re seeing is a complete breakdown in the Chinese market – 100% cancellations. Outbound companies [in China] are facing ruin,” he said.