NEWS
From far left: Miles Morgan, David Moon, Paul Hardwick, Sandra McAllister and Paul Waters
Agencies battle to cut costs via closures and staff hours
Juliet Dennis
Travel agencies are urgently reviewing their business models to survive the winter until summer 2021 balances are due. As school summer holidays
come to an end, agents say they will effectively be operating “on thin air” until March, when they receive balance payments for May bookings. Some have reduced branch
opening hours while others are considering homeworking or renegotiating shop rents. Advantage Travel Partnership head
of business development David Moon said: “Some members are looking at a different business model, like homeworking, to strip costs out and some are reducing their working weeks. “Staff are working with owners to
find ways through winter. They want their businesses to survive and are willing to take some pain. “The reality is that it’s about cash. Forward business is pretty good for
travelweekly.co.uk
next year but for a lot of businesses it’s a case of ‘am I going to be able to hang in there to realise that income?’” South Wales miniple Tailor Made
Travel is putting 15 of its 20 stores into “hibernation” this autumn (see box). Other miniples said they
would keep shops open, but Miles Morgan Travel chairman Miles Morgan admitted: “It’s played out worse than I thought. It’s going to be survival of the fittest. “We are in a strong position
financially but this will test us. It’s just about how much money you have in the bank. We’ve got to survive on pretty much thin air until March.” Fred Olsen Travel moved to a
five-day week earlier this month, with branches shut on Saturday. Head of commercial Paul Hardwick said: “We were seeing very limited business that day so have opted to close temporarily to reduce costs and maximise the furlough scheme. November and December will be a big headache if there’s no
further government support.” Althams Travel, which has 32
branches in Lancashire, Yorkshire and Lincolnshire and a small homeworking team, will consider reduced staff hours for November and December if there is no further government assistance. Managing director Sandra
McAllister said: “We intend to keep every branch open; some may close on one quiet midweek day.” Premier Travel, which has 24
branches, is operating with minimum staff numbers, with some working reduced days. “We are trying to renegotiate rents if and where we can,” said director Paul Waters.
Welsh agency Tailor Made Travel will temporarily close 15 of its 20 stores this autumn as it strives to “save the business”. Agents have been told by chief
executive Simon Morgan the move is necessary to protect the business until travel resumes in volume. Tailor Made had yet to
confirm which five stores will remain open or staffing details, but directors were meeting this week to discuss plans to scale down the business.
TAILOR MADE TRAVEL ACTS TO ‘SAVE BUSINESS’ Staff in the 15 stores will be invited
to join a homeworking operation that Morgan hopes will bridge the period from the ending of the government’s furlough scheme to next spring. He said: “We have excellent
2021 forward bookings and this measure will ensure the survival of the company through this
terrible time. I hope and pray that our government will step in to help the
travel trade. Sadly, we cannot wait to see – we must act now to save the business.”
27 AUGUST 2020
7
PICTURE: Steve Dunlop
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