Operators ‘aggravate the cashflow crunch’


Lee Hayhurst L


arge tour operators have been accused of exacerbating travel’s “cashflow crunch” by not paying suppliers. The accusation came after Tui Group


told hoteliers in Spain they will receive money owed for January to March in instalments, with 75% paid only after travel resumes. Meanwhile, Emirates-owned dnata has


temporarily extended supplier credit terms from 30 days to 120 days. James Weaver, managing director of luxury


operator Lusso Travel, said industry “big boys” flexing their corporate muscle were making it harder to get refunds from suppliers. He said: “Cashflow has crunched with some


suppliers and if you follow the money flow, my message is simple to these big companies: ‘You have my agents’ clients’ money and they want it back.’” Alan Bowen, legal advisor to the Association of


Atol Companies, said: “This goes to the real problem of consumers not believing us when we say the money has gone to the supplier and we can’t get it back. “As an industry, we’ve got to be careful we treat


customers, agents and operators, and suppliers fairly. All these relationships are very important.” The Caribbean Hotel & Tourism Association said


69% of members had not received tour operator money for the first quarter of 2020, with $219,000 on average owed to hotels. It has written to


industry associations, including Abta, to say this is threatening to bankrupt hoteliers. Jorge González, president of Cehat, the Spanish


hotel and tourism association, said: “This is a difficult situation for everyone, but operators need to understand this is a horrible situation for hotels.” Tui declined to comment on payment policies,


but said it had made advance payments to hotels for summer 2020 and was working in partnership to prepare for the resumption of travel. In a statement, it said: “In these unprecedented


times, we are focused on working together with our partners in our destinations.” Dnata, owner of trade-only brands Gold Medal


and Travel 2, said it had to keep a “sharp focus” on cashflow against the backdrop of “almost zero revenues” and its extended credit terms were for a temporary period to August.


Tui and dnata are among operators to have deferred payments to suppliers


Michael Palin speaking on the


BBC’s The Andrew Marr Show


‘Roadmap’ for V


Ben Ireland


isions of what travel’s ‘new normal’ might look like have been laid out as authorities call for common health and safety measures when tourism starts to return.


Tui chief executive Fritz Joussen called on EU member


states to develop a “roadmap for travel” to facilitate holidays in 2020 and said governments must provide a “clear perspective” on tourism in Europe. He said Greece, Cyprus, Portugal, Bulgaria and the


Balearics were possible destinations for later this year. Greece’s tourism minister, Harry Theoharis, confirmed


he wanted visitors to return and said social distancing should be expected on beaches and at pools and restaurants. Jamaica’s tourism minister, Edmund Bartlett, said


destinations must “adapt swiftly” by introducing health protocols to attract post-pandemic travellers. Ben Bouldin, Royal Caribbean International’s


vice-president for the EMEA region, said cruise ships were likely to be restricted to carrying fewer guests when they return, have stricter health screening and introduce social distancing measures in dining rooms.


Virgin plans 3,150 redundancies across airline and retail V


irgin Atlantic has announced plans to axe up to a third of its workforce as part of


cost-cutting measures that will see it move its Gatwick operation to Heathrow. Up to 15% of its Virgin Holidays travel agencies will also be closed, with the rest rebranded as


Virgin Atlantic Holidays as the company makes itself “fit for the future”. Virgin has 57 retail outlets – 21 v-room stores and 36 Next concessions – with the 15% closures to apply to the v-room chain only. A total of 3,150 roles are earmarked to be cut across the airline and retail businesses in a


6 7 MAY 2020 travelweekly.co.uk


“decisive” restructure to reduce costs, preserve cash and “protect as many jobs as possible”. The airline will fly only wide-body aircraft from


Heathrow and Manchester, while retaining slots at Gatwick for when demand returns. It will no longer use all seven of its Boeing 747s.


PICTURES: Shutterstock


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