Travel companies desperately ‘need government help’

The UK travel industry has reached a “critical point” and is calling for further support to cut job losses.

Measures to curb the pandemic have already led to the loss of about 39,000 jobs, said the travel agency Abta.

About 65% of travel companies had to resign or start a consultation process.

Abta said the sector desperately needed “tailoring” as many more jobs would be lost.

The Association of British Travel Agents (Abta) warned that more job losses were set to come when the government’s furlough scheme was phased out, unless new support measures were introduced.

“With the government’s stop-start measures, the resumption of travel has not gone as hoped for the sector, and thus companies continue to be negatively impacted and jobs are lost at an alarming rate,” said Abta’s CEO Mark Tanzer.

“Coming to the end of the traditional peak booking period, we have reached a critical point, as existing government measures to support companies are starting to taper off, the result of which, according to this survey by ABTA members, will be ruinous for living conditions of more people. “

Abta said many travel companies after the lockdown had not yet begun, with cruise companies and school tour operators still closed for business.

More travel companies could go bust

“We have already seen well-known and respected companies that would normally fall into administration, and more are sadly set to follow,” Mr Tanzer said.

STA Travel, which specializes in long-distance travel primarily aimed at young people and students, stopped trading on Friday, putting 500 jobs at risk.

And in August, Hays Travel announced it would cut nearly 900 jobs due to canceled vacations due to new travel restrictions for coronavirus.

Before that, in July, the UK’s largest tour operator said it would close 166 High Street stores in the UK and Ireland, affecting 900 jobs, on top of plans in May to cut 8,000 jobs worldwide.

Abta has written to Chancellor Rishi Sunak asking for more support in the form of a package of measures specifically targeted at the travel industry, including a temporary suspension of Air Passenger Duty for next summer.

If there were a second lockdown, 96% of travel companies report that it would have a critical or serious impact on their ability to survive, Abta warned.

“Travel desperately needs the government in its next review to provide tailoring as tens of thousands more jobs will be lost,” Mr Tanzer said.

The government has changed its travel guarantee rules for countries where emerging cases of coronavirus have caused their concerns in the past week, adding 11 more countries, including France, the Netherlands, Austria, Malta and Monaco.

Travelers returning from countries on the UK quarantine list must self-isolate for 14 days.