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He sees big problems for the industry because of the crown: “It will be chaos”
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The tourism industry will take years to recover from the crown.
That assessment is carried out by the insurance giant Nordic Guarantee, which now cancels all guarantees to travel companies.
– Many will be greatly affected by this, a source tells Aftonbladet.
Closed borders, quarantine rules and new habits. The corona pandemic has fundamentally changed the travel industry, and it will be some time before demand returns. As a consequence, the insurance company Nordic Guarantee chooses to suspend all travel guarantees, Aftonbladet says.
– Yes, it is true that we have chosen to end that business completely, says sales and marketing manager Michael Gantén.
– It was a difficult decision to make. We have been working with travel guarantees for many years.
Photo: PRESS
Michael Gantén, Director of Sales and Marketing for Nordic Guarantee.
According to the company’s analysis, the travel industry will not recover until 2022 at the earliest.
– We believe that the activity will be limited for a longer period of time. It could mean increased costs for us if we do not take this action.
Entrepreneur: “It’s the nail in the coffin”
All companies that organize package tours must establish a travel guarantee with Kammarkollegiet. This can be done directly to the authority or through a guarantee issuer.
Nordic Guarantee is one of the main players in the field, with 129 companies as clients. The total amount of the insurance amounts to just over SEK 394 million.
– We will never be able to find a new guarantee as the market looks like today, says an affected entrepreneur.
– We will be forced to declare bankruptcy. The situation was difficult before. This is the nail in the coffin.
The tour operator, who wishes to remain anonymous, believes that many companies will have a difficult time finding new insurers.
– There will be chaos in the industry.
Ving has a guarantee of 54 million
Kammarkollegiet documents show that Nordic Guarantee’s largest customer is the Nordic branch of the shipping company MSC Cruises. Second is Ving, which was acquired by Norwegian hotel magnate Petter Stordalen last year. The charter company has a guarantee of SEK 54.3 million.
Communications manager Fredrik Henriksson says, however, that Ving will not be affected by the changes.
– We have five guarantee issuers, of which Nordic Guarantee is one. We have a multi-year agreement with them and it remains.
Henriksson does not share the grim prognosis for the future of the travel industry.
– In the near future, it is more hesitant, absolutely. But for the fall break and before winter, we see growing interest. For next summer, we have 20 percent more bookings today compared to the same period last year.
Nordic Guarantee’s Michael Gantén emphasizes that consumers will remain protected.
– We will present a formal request for termination of guarantees issued to the Chamber of Deputies on September 30, and then it is applied a month later.
– All the people who book during that period are covered by the guarantee, even if the trip takes place in the future.
Regrets any problems that may arise due to the company’s decision.
– We understand that many companies face a difficult situation. But we cannot take risks that we believe will cost us significantly more in damages and payments than we receive in premiums.
– I hope and believe that organizers with sustainable business models will find other solutions.
Facts: this is how the travel guarantee works
► All companies that organize package tours must have a travel guarantee with Kammarkollegiet
► The guarantee means that clients receive compensation if the tour operator goes bankrupt.
► Companies can establish the guarantee directly with Kammarkollegiet, or through a third party. The size of the sum is determined by the budget of the company.
► The travel guarantee does not apply if you have only booked a plane ticket or a hotel.
► The website of the Chamber of Deputies contains more information and a list of companies that have a travel guarantee
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