Firms embrace state wages offer


Ben Ireland


Travel agencies of all sizes are taking up the government’s offer to pay 80% of wages of staff left out of work due to the coronavirus crisis. Chancellor Rishi Sunak told


businesses the state will cover up to £2,500 a month of salaries for firms to furlough staff through the Coronavirus Job Retention Scheme. Kuoni, which had revealed 70


redundancies before the measures were announced on Friday, will now be able to retain staff. Derek Jones, chief executive of parent company Der Touristik UK, said the “lifeline” meant “we can now protect as many of our team as possible” and that letting staff go “was a very difficult [decision] but at the time I believed we were left with little option”. Barrhead Travel president


Jacqueline Dobson said the agency was “liaising with the government for access to the Coronavirus Job Retention Scheme” as it operates with a “reduced team”. Mark Swords, co-director of one-


branch Wimbledon agency Swords Travel, said he would look to furlough two members of the team but said the chancellor’s announcement had been “a little bit confusing at first”. “We were really excited we were going to get our staff covered but it


Chancellor Rishi Sunak


actually means they have to remain off work, which is not ideal because we need them in the business,” he said. “They also apparently won’t get paid until at least late April.” Other companies are also utilising


the wage support. Cosmos and Avalon Waterways chief executive Giles Hawke said it looked “really valuable” at “headline level”. Sunak’s announcement came


alongside a deferral of VAT for businesses until the end of June, and followed measures introduced last week. They included a business rate ‘holiday’ for the retail, leisure and hospitality sectors, an extension of the Business Interruption Loan Scheme to 12 months, interest free, for up to £5 million, and cash grants of up to £25,000 for smaller firms. Mark Johnson, operations director


of 19-branch agency Polka Dot Travel, said agencies would be “crazy not to” look at the loans. He added: “They’re on favourable terms in an unprecedented situation, so I think a lot of companies will apply for them.”


WHAT DOES FURLOUGH MEAN?


A furlough is a leave of absence from work. In the current crisis, this means when a firm asks an employee not to work but doesn’t make them redundant.


Trade awaits ru Ian Taylor


The industry was still awaiting government confirmation of a suspension of refund rules on Atol bookings as Travel Weekly went to press on Tuesday. Compliance with the


However, consumer association


Package Travel Regulations’ (PTRs) requirement to refund consumers within 14 days of cancellation threatens many firms with insolvency following the cancellation of millions of bookings. Abta has called for temporary


changes to the PTRs, pointing out they “were not designed to cope with an industry-wide collapse”. The association took the matter


into its own hands last week, advising members to delay refunds and issue ‘refund credit notes’ on Atol-protected bookings, initially up to July 31. Media reports on Monday


suggested transport secretary Grant Shapps was poised to relax the rules on refunds in line with Abta’s request following a meeting last Thursday.


4 26 MARCH 2020 STORY TOP


Which? hit out at a “backdoor bailout” of the industry, saying a change to the law would be “unacceptable”. It argued consumers might choose to accept a credit note but should not lose the right to claim a refund. This followed European


Commission guidance on March 19 encouraging consumers to accept credit


notes as long as they are allowed to


seek a refund later. Abta has warned the Departments


for Transport (DfT) and Business (BEIS) that enforcement of the PTRs “would result in mass failures”. It pointed out this would lead to long delays in refunds, meaning: “Consumers will not see their money any quicker by enforcement.” The association wants refund


credits allowed in place of cash refunds “with all protections carried forward” and the 14-day payment window extended to four months. It has also told ministers tour


operators should not be responsible travelweekly.co.uk


Transport secretary Grant Shapps (left) and business secretary Alok Sharma


PICTURE: Shutterstock


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