The pandemic has been followed by Russia’s invasion of Ukraine and, although bookings have not dried up, they have certainly been affected. Images of the destruction and suffering inflicted on innocents on Europe’s doorstep by Vladimir Putin are hardly conducive to booking a holiday.
But there are more basic reasons for the tension. The industry, rather than pulling together, is tearing itself apart. Operators and agents have been dragged through two years of unfair criticism by consumer media and are subject to regulations which were never meant to apply to the situations we have experienced, and are still having to face.
Airlines, subject to different regulations, have clashed with tour operators over refunds and responsibility for fulfilling contracts. Meanwhile, insurers, bond obligors and credit card risk departments treat their operator and agency clients as potential failures rather than sources of income.
Regulators have panicked and, having turned a blind eye to the use of customer monies for the past 50 years, have woken up to the reality, not realising it has been the use of this money that has enabled the UK travel industry to be the best value, most dynamic, competitive and sophisticated in the world.
We have fulfilled people’s dreams, but instead of allowing the industry to adjust to the proposed new regime over several years, regulators have decided to tighten the screws exactly when companies are at their most vulnerable.
New industry structures and representative bodies are forming – a clear sign that people aren’t happy.
The blame rests entirely with government, which conveniently forgets the billions we generate. We are subject to the CAA, the departments for transport, culture and business, as well as the Foreign Office, not to mention the unwarranted interference from the Competition and Markets Authority.
Each one issues consultations asking the same questions because they don’t seem to talk to each other. If these consultations were to lead to better laws, better regulations and less red tape, then bring them on – but they don’t.
What really needs change is never addressed – because it is too complicated for the government, because it needs primary legislation, or because it will upset someone or something they do not want to antagonise. So the government tinkers around the edges, ignores industry advice and does nothing to tackle the real issues.
What chance do we have? We have yet to find anyone with any stature to stand up for us in government. Civil servants are moved on as soon as they understand issues and become helpful, and we have to start all over again, explaining the difference between a charter and scheduled flight ad infinitum.
Then, there’s the oil price. Will airlines surcharge or won’t they? Have they really hedged and, if so, will they still surcharge? Who knows what will happen. And we have to strive for net zero, conveniently forgetting that our livelihoods depend on flying aircraft.
Noel Josephides is chair of Sunvil and a director of Aito
