FUTURE SPRING FORUM


CONFERENCE


Photi tips further decrease in Atol and Abta numbers


A


sharp decline in Atol holders and Abta members during the pandemic is forecast


to continue despite a strong bounce-back in bookings as most travel companies’ finances are “shot to pieces”. Leading industry accountant


Chris Photi, head of travel and leisure at White Hart Associates, warned the decline in tour operator and travel agent numbers won’t abate and the cost of living will “impact demand”. Photi told the Travel Weekly


Future of Travel Spring Forum: “There were 2,100 Atol holders before the pandemic. Now there are about 1,600. By March 2023, I predict another 100 will go and there will be 1,500. “Some may just have stopped


Most balance sheets


have been shot to pieces. There have been few failures because of support mechanisms


selling Atol products. Some trade licences have not been renewed due to a change in the VAT rules. But there is a trend. “We see a similar trend with


Abta members – 1,106 prior to the pandemic, reduced to 928 at the last renewal. That is going to reduce further between now and June.” Photi noted: “Most travel


companies’ balance sheets have been shot to pieces. There have been few failures simply because of


Travel Weekly Future of Travel Spring Forum 2022: Industry leaders assess Chris Photi


government support mechanisms. The industry has criticised the government, [saying] it hasn’t done enough, and I agree. But these mechanisms kept businesses alive.” However, he argued: “The


elephant in the room is the cost of living. It’s going to impact demand. If inflation is 10%, lower-income groups are probably going to book fewer holidays [and] staff are going to be looking for higher salaries.” Photi added: “As you bounce


back, your merchant acquirer is going to see more cash coming through and the risk start to increase. We already see CAA pressure for trust accounts and Abta pressure for higher bonds. That is an issue. The bounce-back is not going to be without problems. You want to retain good staff, but you’ve got to look at your overheads.”


Companies that lead on sustainability ‘will reap the rewards’


Travel companies need to take the lead on sustainability and explain to customers why they are making changes to reduce their carbon footprint, delegates were told. Cosmos chief executive Giles Hawke said he believes


sustainability is not yet at the forefront of consumers’ minds when they book a holiday but that will change in time. “Consumers will one day vote with their feet and


book with sustainable companies,” he said in a panel discussion. “It’s not happening now, but it will come. “Some of it will be up to us as tour operators or


hoteliers to force that change, and I think consumers will be pushing for it more and more, including luxury consumers.” Hawke said he believes companies with sustainability


at their core will also reap the rewards in terms of attracting new employees and staff retention. He added that the “tangible push” from suppliers to become more sustainable gave him “great optimism”.


10 26 MAY 2022 Giles Hawke Aishling McLoughlin Aishling McLoughlin, business development director


of Iberostar, said the hotel group faced “resistance” when it first became plastic-free but that guests had since adapted. “We explained why we were doing it to clients and


now they appreciate it,” she said. “Luxury doesn’t have to mean waste, and that’s what clients are understanding more and more.”


‘Offer flexible working to at


Travel businesses need to listen to the wishes of their staff and consider flexible working practices if they are to attract and retain the best talent, speakers at the forum said. But they warned increased flexibility


around remote and hybrid working needed to be monitored to ensure productivity was not negatively impacted. Phil Nuttall, chief executive of the Travel


Village Group, said his company was seeing growth in its homeworking division, but that there was not a large shift by those in retail roles looking to change tack. He added: “We’re actually bringing more


people into retail, which is encouraging.” Nuttall said the company had brought


in more flexibility across the business, but added: “You have to monitor that flexibility. We’re open to the idea of people working


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