Julia Lo Bue-Said, chief executive of Advantage Travel Partnership, said the extension of the furlough scheme would be “positive news for many sectors” but pointed out “travel businesses continue to be unable to take full advantage of the support package in its current form”.
“Travel agencies do not make any money until their clients travel, but they still have to employ people to facilitate bookings and amend cancellations and refunds when required,” Lo Bue-Said said. “Therefore, even while there is no money physically coming through the door, furlough simply doesn’t work for employers in this sector by the very nature of the business.
“The criteria that need to be met by businesses to be entitled to the government grants means that 50% of our members do not qualify because they work from home or an office and do not operate from a retail premises. Support with deferral of business rates and grants for all travel agents, regardless of their operating environment are what we need to help travel agents survive. There is an immediate pressure on these businesses because they have been unable to earn any income for 12 months now due to government-imposed restrictions.
“While the plan to ease lockdown has initiated some positive signs of recovery in terms of enquiries and bookings, travel agents are in a state of financial limbo because the details of how and when we will travel is still fuelled with uncertainty and restrictions. We know testing is critical to the recovery of travel, and we need government to take a lead on bringing down the cost of testing so that a future holiday is still affordable for families.
"The media focus to date has been on leisure travel, however the government must not forget the lucrative business travel sector which will be intrinsic to the recovery of many other important sectors of the economy.”
Jacqueline Dobson, president of Barrhead Travel, also welcomed news of an extension to the furlough scheme, insisting this would be “key to safeguarding jobs in the travel industry until border restrictions are lifted and the industry can begin its recovery.”
However she added: “With the confirmation that furlough contributions for employers will increase from July, we must, in turn, see restrictions on travel ease in tandem to balance our recovery. As we wait in anticipation for further guidance from the Global Travel Taskforce, it is now imperative that this time is used for all four devolved nations to agree a collective response to reopening both inbound and outbound travel.
“Decisions about travel must be made in unison across the UK, as a disjointed approach will further hamper our industry’s recovery during 2021.”
Gary Lewis, The Travel Network Group chief executive, said: “We welcome the announcement of measures of support that bring financial help throughout this year and into next.
“The extension of furlough until September will create much-needed breathing space for many of those employed by the sector. The continued self employment support extended and access to new restart grants will combine as a lifeline for many businesses striving every day to survive until travel can reopen.
"The 100% business rate holiday until the end of June and then a further nine-month tapered benefit will also help many manage the challenges of increased debt whilst trading our way into 2022.
“Despite seeing green shoots of recovery, there is still a long road ahead for the industry and it now is essential the Global Travel Task Force and then government agree the protocols to open up the boarders safely to enable a full recovery not only for our travel industry but the whole economy.”
Steve Witt, co-founder of Not Just Travel, added: "Today’s budget reflects a strong all-round mix of measures to help get the economy back on track. Given the hugely difficult position all governments are in right now, this is a solid plan which will help a lot. For the small business, the extension of furlough, grant access, rate relief and access to recovery loans, there are lots of options.
"So far, the chancellor has stopped short of specifically helping the travel sector, however the measures announced today will go a long way to giving consumers confidence without hitting their pockets.
"As a result, they will be encouraged to spend their money on travel either in the UK or overseas. The quicker we can get customers travelling again, the quicker the industry can support itself."
Business travel
Elsewhere in the industry, Clive Wratten, chief executive of the Business Travel Association, said: “The BTA welcomes the extension to the furlough scheme which will save jobs across the sector. However, business travel has again been excluded from vital grants at a time when travel management companies are precluded from doing their jobs by international travel restrictions.
"It is imperative that the new Global Travel Taskforce brings forward a framework in which business travel is fully integrated, and enables it to resume and contribute to the UK economy once more.”
Operators
Kerry Golds, managing director of A&K and Cox & Kings, noted the chancellor’s “industry-specific support for the arts, retail and hospitality” yet said “there was still no mention of the beleaguered travel industry”.
“Arguably, international travel will take the most time to recover to levels of £200 billion it contributes annually to the UK economy, and the employment of four million people.”
Inbound
Joss Croft, CEO, UKinbound, added: "The extension of furlough is very welcome news for our industry, as is the business rates holiday and its further cut.
"We’re also pleased that leisure grants of up to £18,000 will be available for businesses that need to stay closed for longer, but we urgently need confirmation from government that tour operators, coach operators, language schools and event organisers will be eligible for these grants, having been unfairly excluded to date.
“It was, however, disappointing and a huge missed opportunity to hear that sector-specific support, which has been rolled out in Scotland, will not be provided.
"The VAT cut will be beneficial to hospitality and domestic tourism businesses, but its impact on inbound tourism, and the export value it delivers that will take longer to restart, will be minimal.
"The inbound tourism industry still has a long road to recovery and the government needs to recognise this.
"International inbound tourism to the UK can play a crucial role in supporting the country’s economic recovery, and its levelling-up and global Britain agenda, but this will only be possible when it’s safe to travel again. Until then we need the government to continue its dialogue with the industry and understand that further support is urgently required."
