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SINGAPORE – The liquidation of established travel agency STA Travel is a blow to the industry, but a wave of massive closures is not expected to follow for now, observers say.
Despite a close to zero business environment, the number of travel agency closures in the past eight months has remained relatively low at 22, about half the number in the same period last year, Board figures show. Tourism Board (STB).
Industry players say this is likely due to the fact that most operators have cut costs and gone into hibernation mode, kept afloat by government support schemes.
Some have also rotated to sell vacation packages in the domestic market, while agents serving inbound tourism are now targeting Singapore-bound international students.
STA Travel stopped its operations earlier this month, due to its Swiss-based parent company going insolvent. Up to 682 clients may be owed for amounts ranging from $ 7 to $ 84,088, according to a creditor notice issued by interim liquidators of the audit firm Deloitte and Touche.
It was the only travel agent closure in a nearly eight-month period this year that impacted customers, STB said.
Samson Tan, CEO of GTMC Travel, said that the extension of salary subsidies until March next year has been a lifesaver for many, while employees are also accepting pay cuts, attending training courses and being reassigned during the hiatus. .
GTMC Travel has also moved to a smaller office that it shares with another travel agency to save on rent.
“I think after March, if nothing happens and the government does not extend (wage subsidies), many can end it. But most can hold out until then,” Tan said.
Chan Brothers Travel said it has received “significant interest” in its recently launched home stay packages, which include hotel stays along with a guided tour of the Sungei Buloh Wetland Reserve.
It also attracts customers through Facebook live sessions offering travel tips for popular destinations like Japan and Taiwan when vacations to these locations are possible.
Alicia Seah, director of public relations and communications for Dynasty Travel, said the firm is preparing for the resumption of corporate travel.
With security considerations and country-specific requirements now a major concern for travelers, “the role of travel agents will be even more essential after Covid,” he said.
Steven Ler, president of the National Association of Singapore Travel Agents, said he sees the light at the end of the tunnel, given the high demand for structured itineraries and end-to-end travel solutions such as business travel pickup and essentials.
Singapore’s concession for larger conferences of up to 250 people will attract more visitors in the coming months, and the industry is working with ground operators to ensure a smooth process, Ler said.
There is also a strong pent-up demand for leisure travel, with vacations in nature, driving and sailing being the ones that arouse the most interest.
“Customers want to know what they should be aware of, such as when they should have the swab test, if they should be quarantined and if there is a list of approved places to stay. These are some of the pieces we are trying to put together. “, He said.
He added that travel agents are also looking to bundle insurance deals that cover travel abroad.
“We can’t sell any itineraries right now, but we can at least get an idea of potential areas of concern so that we can guide clients when things restart,” Ler said.
Ngee Ann Polytechnic senior tourism professor Michael Chiam noted that more travel agents may be forced to retire, given the long recovery looming for the tourism sector.
But demand for their services is likely to increase as travel restrictions are relaxed.
“Travel preferences and habits may change due to travelers’ safety concerns, so it is important that travel agents offer innovative (solutions) to take advantage of the upward trend,” said Dr. Chiam.
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