Τρίτη, 31 Μαρτίου 2020

Airlines Facing Rapid Cash Burn

IATA: Airlines Facing Rapid Cash Burn

Geneva – The International Air Transport Association (IATA) published new analysis showing that airlines may burn through $61 billion of their cash reserves during the second quarter ending 30 June 2020, while posting a quarterly net loss of $39 billion.

This analysis is based on the impact assessment IATA released last week, under a scenario in which severe travel restrictions last for three months. In this scenario, full-year demand falls by 38% and full-year passenger revenues drop by $252 billion compared to 2019. The fall in demand would be the deepest in the second quarter, with a 71% drop.

The impact will be severe, driven by the following factors:
  • Revenues are expected to fall by 68%. This is less than the expected 71% fall in demand due to the continuation of cargo operations, albeit at reduced levels of activity
  • Variable costs are expected to drop sharply—by some 70% in the second quarter—largely in line with the reduction of an expected 65% cut in second quarter capacity. The price of jet fuel has also fallen sharply, although we estimate that fuel hedging will limit the benefit to a 31% decline. 
  • Fixed and semi-fixed costs amount to nearly half an airline’s cost.  We expect semi-fixed costs (including crew costs) to be reduced by a third. Airlines are cutting what they can, while trying to preserve their workforce and businesses for the future recovery. 

These changes to revenues and costs result in an estimated net loss of $39 billion in the second quarter.

On top of unavoidable costs, airlines are faced with refunding sold but unused tickets as a result of massive cancellations resulting from government-imposed restrictions on travel. The second quarter liability for these is a colossal $35 billion.  Cash burn will be severe. We estimate airlines could be burning through $61 billion of their cash balances in the second quarter.

“Airlines cannot cut costs fast enough to stay ahead of the impact of this crisis. We are looking at a devastating net loss of $39 billion in the second quarter. The impact of that on cash burn will be amplified by a $35 billion liability for potential ticket refunds. Without relief, the industry’s cash position could deteriorate by $61 billion in the second quarter,” said Alexandre de Juniac, IATA’s Director General and CEO.

Several governments are responding positively to the industry’s need for relief measures. Among countries providing specific financial or regulatory aid packages to the industry are Colombia, the United States, Singapore, Australia, China, New Zealand and Norway. Most recently, Brazil, Canada, Colombia, and the Netherlands have relaxed regulations to allow airlines to offer passengers travel vouchers in place of refunds.

“Travel and tourism is essentially shut down in an extraordinary and unprecedented situation. Airlines need working capital to sustain their businesses through the extreme volatility. Canada, Colombia, and the Netherlands are giving a major boost to the sector’s stability by enabling airlines to offer vouchers in place of cash refunds. This is a vital time buffer so that the sector can continue to function. In turn, that will help preserve the sector’s ability to deliver the cargo shipments that are vital today and the long-term connectivity that travelers and economies will depend on in the recovery phase,” said de Juniac.

Read Alexandre de Juniac's remarks
View the COVID-19 Cash burn analysis (pdf)

Tags: IATA

eabourn Extends Voluntarily Pause due to COVID-19

Seabourn Ovation – Ultra Luxury Cruise Ship | Seabourn

Seabourn, the world's finest ultra-luxury travel experience, will extend the voluntarily pause of global operations for its five cruise ships for an additional 30 days.
The 30-day extension includes sailings scheduled to depart through May 14, 2020.
The brand had announced an initial 30-day pause in global operations, which took effect on March 14, 2020. The decision is a proactive response to the unpredictable circumstances evolving from the global spread of COVID-19.
Seabourn will be communicating changes to voyages scheduled to depart in the extension window with all booked guests and their travel advisors.
Seabourn guests on impacted voyages will receive a 125% refund of the fare paid in the form of a future cruise credit, which can be applied toward any future cruise through December 31, 2021. For guests who do not opt to choose the 125% future cruise credit, a 100% refund of the monies paid to Seabourn will be reimbursed to the original form of payment.
Guests and their travel advisors will be sent communications on how to manage cancellations and desired compensation online. Seabourn asks guests not to call the Reservation Call Center for information about the cancellations due to the possibility of high call volumes and the potential of long on-hold wait times.

Tags: CruisesSeabourn

The Jackson Hole Travel and Tourism Board requests that destination visitors stay home

The Jackson Hole Travel and Tourism Board requests that ...

JACKSON, WYO. - The Jackson Hole Travel and Tourism Board requests that all potential visitors prioritize their own health along with the well-being of Jackson Hole and the surrounding communities by staying home at this time. "Our finite local resources and the limited capacity of our local health care system are not adequate to support tourism due to the COVID-19 pandemic".
The Teton County health officer has issued an emergency order closing most businesses that include a range of hospitality providers - from taverns and tasting rooms to fitness centers and museums. The three regional ski resorts - Jackson Hole Mountain Resort, Snow King Mountain Resort and Grand Targhee Ski Resort - have all closed for the remainder of the 2019/'20 winter season. Both Grand Teton National Park and Yellowstone National Park are closed to all park visitors until further notice. There will be no visitor access permitted in either park.
"We encourage visitors to pause or reschedule their travel plans rather than cancel their trips altogether. Much of the community's livelihood depends on tourism, and although we are disappointed to temporarily close our doors to would-be travelers, the health and well-being of everyone is our greatest priority.
We look forward to welcoming our destination visitors once travel is recommended and when we are again able to provide the resources, amenities and services required for everyone to fully enjoy our beautiful region."

Five Things to Do When Travelling to a New Foodie Destination

USA: New foodie destination

Every destination can be a foodie destination, though certain cities and areas are going to stand out above the rest. By choosing a destination based on its dishes, you are ensuring you can stimulate your senses and open up a whole new world of flavors. The possibilities are endless.

Once you’ve picked your destination, all that is left is to head on over. To truly enjoy the experience and to enjoy that foodie holiday to its maximum you are going to want to follow this guide:

1.   Save Up Your Budget to Enjoy the Top Foods

If you want to eat well, you are going to want to save up a huge budget for your meals. This doesn’t mean you will be eating at Michelin starred restaurants the whole time, but that you have the option. It will also be best to save up for an accommodation option that features a fully stocked kitchen. While eating out is certainly a highlight, so too is using the fresh delicious local ingredients to make your own meals.

2.   Visit All the Food Markets

Food markets are the best places to be for a foodie. You’ll find great lunch options, get to taste a variety of products, and course, be able to bring some items home. Spices and other jarred items are perfect gifts for yourself or your loved ones.

3.   Ask A Local Where to Eat Next

Don’t be afraid to ask the locals! Many know English no matter where in the world you are. A good place to start is to ask the vendors at one of those food markets. Don’t be offended if they cannot answer, but keep persevering. You’ll have a list of quality hidden haunts in no time at all.

4.   Get Involved with the Culture

Getting involved and excited like a local is one of the best ways to truly enjoy any trip, and in many cases, you can combine your love of food and drink with these cultures. Europe, in particular, has a thriving fiesta culture that follows their biggest sport – football. You can get equally excited as them by investing in some football betting of your own. You’ll be able to get excited and thrilled during a game in a pub with other fans just because of a bet – no matter how small.
It’s thrilling to partake in this lively culture, and often you won’t have to go far. In fact, you’ll even be able to find local haunts at the same time, letting you enjoy your foodie holiday and experiencing something new.

5.   Take a Cooking Class to Learn Local Dishes Yourself

Last but not least, look into booking a cooking class for yourself. Learn local dishes first-hand and enjoy a unique experience you’ll remember forever. Online booking sites often highlight such experiences. You’ll be able to find them on AirBnB, for example, and be able to choose an option that is taught in English.

Nevada Gambling Recovery Providers Go Digital

Nevada Gambling Recovery Providers Go Digital

Nearly 180,000 Nevadans struggle with a gambling problem. COVID-19 has changed everyone's daily lives; especially those who struggle with this issue.

These individuals may now face the added stress of potential layoffs, decreased income and increased isolation as all nonessential businesses across the state temporarily close.
But there is hope.
These individuals and their loved ones are now in a position to evaluate their lives, and they don't have to do it alone. Despite social distancing and sheltering in place guidelines, the State of Nevada, through ProjectWorthNV.org, and problem gambling providers have removed the barrier to obtaining help. Treatment providers are evolving recovery methods and going digital with low-cost or free telehealth services.
Nevada's state-funded problem gambling recovery centers are providing telehealth services to accommodate social distancing protocols and to continue offering their confidential services during the pandemic.
  • Reno Problem Gambling Center and New Frontier Treatment Center in northern Nevada have completely shifted to digital care.
  • Las Vegas-based centers, Robert Hunter International Problem Gambling Center and Mental Health Counseling and Consulting, continue to provide in-person recovery and are adhering to social distancing guidelines. They are also providing treatment via confidential phone calls and HIPAA-compliant video conferencing.
  • Bristlecone Family Resources in Reno is offering telehealth care for its outpatient services and following social distancing guidelines with its residential program participants.
Those looking for virtual recovery resources can visit ProjectWorthNV.org to find the list of providers continuing to offer resources including digital care, as well as national call, text and chat helplines.
"Nevadans may turn to online gambling now that casino gaming and sports betting aren't options," said Alan Feldman, chair of the Advisory Committee of Problem Gambling (ACPG). "There are some Nevadans who already struggle with gambling problems and others that may begin to struggle now that they are faced with more free time and the possibility of increased loneliness or boredom. Add to this the potential economic pressures from all of the business closures, and this becomes a good time for gamblers to reevaluate their resources and seek treatment if necessary."
Project Worth connects website visitors to five state-funded treatment centers – three in northern Nevada and two in southern Nevada.

U.S. hotel RevPAR forecasted to drop 50.6% for 2020

Uus-Sadama Hotel — RAAM Architecture

HENDERSONVILLE, TENNESSEE - Due to the impact of the COVID-19 pandemic, the U.S. hotel industry is projected to report a 50.6% decline in revenue per available room (RevPAR) in 2020, according to a special forecast revision from STR and Tourism Economics. 
“The industry was already set for a non-growth year, now throw in this ultimate ‘black swan’ event, and we’re set to see occupancy drop to an unprecedented low,” said Jan Freitag, STR’s senior VP of lodging insights. “Our historical database extends back to 1987, and the worst we have ever seen for absolute occupancy was 54.6% during the financial crisis in 2009. With roughly six of 10 rooms on average empty, already wavering pricing confidence will take a significant hit and drop ADR to a six-year low.”
 2020 Forecast2021 Forecast
Occupancy-42.6% (37.9%)+57.3% (59.7%)
ADR-13.9% ($112.91)+3.7% ($117.05)
RevPAR-50.6% ($42.84)+63.1% ($69.86)
Source: STR/Tourism Economics
STR’s latest monthly data (February) showed 55,734 hotels and 5,341,586 rooms in the U.S. Property closures are expected to lead to a 14.9% decline in room nights available for the year. 
“Travel has come to a virtual standstill, but we expect the market to begin to regain its footing this summer,” said Adam Sacks, president of Tourism Economics. “Once travel resumes, the combination of pent-up travel demand and federal aid will help fuel the recovery as we move into the latter part of this year and next year.”

UK mood shifts after first week of lockdown as Brits blast ‘overzealous’ police

UK mood shifts after first week of lockdown as Brits blast ...

After clamoring for stricter measures, some in the UK have started complaining about a “police state.” Transport minister Grant Shapps admitted some officers had been “heavy-handed” but insisted most have been doing a “good job.
The mood of most Britons seems to be shifting, just one week after Boris Johnson announced a coronavirus lockdown.
Following a raft of calls for more draconian measures, and criticism of the government for not imposing stricter controls, the country now appears to be concerned about a loss of civil liberties and about the hugely-damaging economic fallout.
Police have widely been slammed for being ‘over-zealous’ in enforcing the new rules, brought in to slow the spread of COVID-19.
Stories of cops using drones to shame walkers in rural areas, dyeing a lake black to put people off going swimming, even officers instructing shops to stop stocking Easter eggs, have all faced a backlash.
#PoliceState started trending on Twitter in the UK as users blasted security forces for going too far.
Secretary of State for Transport Shapps said there had been “one or two instances” of police being heavy-handed with enforcement measures on social distancing.
He told Sky News: “I am sure there are individual examples where perhaps you look at it and think that is perhaps a bit further than they should have gone but in general terms, I think the case is that, if people help everybody out, including the police, by staying home and the rest of it, then there will be no problems.”
Shapps also warned that the UK had to be careful to ensure that the “cure” wasn’t more harmful than the pandemic itself.
He said: “One of the things we need to be careful not to do is completely crash our economy to the point where it is impossible or very difficult to pick up again afterwards.
“Otherwise, we will be in a position where we can’t re-start the economy and millions of people will be forced into a poverty situation that would do more harm than the virus itself. That’s really the balance.”
Yesterday former supreme court justice Lord Sumption branded Derbyshire Police “disgraceful” over their handling of the new controls.
He told the BBC: “The tradition of policing in this country is that policemen are citizens in uniform, they are not members of a disciplined hierarchy operating just at the government’s command.
“This is what a police state is like. It’s a state in which the government can issue orders or express preferences with no legal authority and the police will enforce ministers’ wishes.”
However, despite the criticism, the UK’s chief scientific adviser revealed that the social distancing measures were starting to work.
At a Downing Street press conference, Patrick Vallance expressed cautious optimism that the “dramatic” reductions in travel and contact were making a difference.
He said: “The measures are in place. They are making a difference, they are decreasing the contact which is so important to spread the disease, and we’re doing a good job at cutting that down.”

Tags: COVID-19, UK

Krispy Kreme to Give Away Thousands of Free Doughnuts to Healthcare Workers

KRISPY KREME® to Give Away Thousands of Free Original Glazed ...

Krispy Kreme is giving away thousands of free Original Glazed® dozens to thank the healthcare community and share joy among customers and neighbors.

To share joy among the millions in the medical community, and to show our gratitude for all they are doing, beginning Monday, March 30 – National Doctors’ Day – and on every subsequent Monday through National Nurses Week (May 6-12), Krispy Kreme will provide all healthcare workers free dozens of our iconic Original Glazed® Doughnuts, the company announced.
Just go to a Krispy Kreme drive-thru, tell them what you need and show your employer badge. That’s it. Pick up some free dozens on the way to work for you and your colleagues, or maybe a free dozen on your way home to family after a long shift.

Friends and Neighbors

The company added, "Also, we’re going to help our customers share joy with their neighbors, because being separated doesn't mean we can't be sweet. On Saturdays beginning March 28, Krispy Kreme will add a free dozen Original Glazed® Doughnuts to every pick-up, drive-thru and delivery order that includes a full price dozen Original Glazed Doughnuts or more, encouraging customers to put a smile on a neighbor's face by giving them the free dozen. In fact, each free dozen will include a special smiley-face doughnut; we call it our “Be Sweet Dozen.” The thousands of free dozens on Saturdays will be securely sealed and bagged individually, along with instructions for contactless drop-off, including social distancing and safety guidelines.​
While we’ve adjusted hours of operation at shops in some communities to comply with state and/or local government guidelines, most Krispy Kreme shops and drive-thrus in the U.S. are open for pick-up orders. Doughnuts are also available for delivery within 10 miles of participating shops through our website and app, and you can visit KrispyKreme.com for details regarding our Acts of Joy and other updates regarding our response to COVID-19. ​
Like everyone in these times, we’re anxious. We’re concerned. We’re also all in this together. Thank you, healthcare workers and everyone supporting them, including our Krispy Kremers, who make a personal commitment every day to share joy. We are grateful for the opportunity to enable the sharing of joy and look forward to seeing millions of smiles! (Help us find you by using #KrispyKreme and tagging @krispykreme.)"

Tags: Krispy Kreme

COVID-19: Insights on travel impact, EMEA by Sojern

Covid-19: Περισσότερο από 1 δισ άνθρωποι σε όλο τον κόσμο σε ...

With more than 345,767 confirmed cases and over 14,927 deaths from COVID-19 globally, we are undoubtedly seeing significant impact across all industries around the world, including the travel industry.
Whilst no-one can anticipate the full impact of these exceptional circumstances, Sojern's data can provide some insight into how travellers are responding to the current situation, the more long-term impact that COVID-19 will have on destinations, and when the first signs of recovery start to appear. 
These insights are based on data collected on the 24th of March 2020. We will be reviewing our data on a weekly basis in order to provide a regular view of trends and patterns in consumer behavior. 
As Expected, Global Flight Bookings to Europe Are Drastically Down 
Analyzing consumers’ travel plans gives some sense of the gravity of the situation and it will come as no surprise that global flight bookings to Europe have declined drastically with Italy seeing almost a 94% year-over-year decline in flight bookings last week. This is to be expected given the travel restrictions currently in place as a result of the ongoing COVID-19 pandemic. The UK showed a 63% decline in year-over-year flight bookings last week, down from 37% the previous week. This is significantly down but less so than other countries in Europe. We expect we may see this downward trend increasing given the government updates and expected heightened restrictions in the UK. 
Global flight searches to Europe have followed a similar downward trend with France and Germany showing a less pessimistic view than countries such as Italy and Spain.
Travellers Showing Signs Of Confidence For January 2021
Whilst travel bookings are clearly down year-over-year, we are seeing a very early spike in global travellers opting for longer lead times and booking flights in the last 14 days to the UK and Spain for January 2021 with booking levels even above the levels from last year.  In fact, we are seeing a significant 242% increase in global flight bookings made in the last 14 days to the UK for January 2021. We are seeing a similarly high booking level for Spain with a 160% increase in global flight bookings made in the last 14 days for trips to the UK with departure dates in January 2021. Even Italy, although still below average year-over-year levels, is showing an upward trend for January of next year. This could be a result of some airlines announcing their winter timetables early and also releasing a more flexible cancellation and booking policy increasing consumer confidence in booking trips for a date when they feel that this pandemic could be in the recovery phase.  
When we look at flight searches made in the last 14 days, we can see that the Middle Eastern, Western and Eastern European and North American travellers appear keener to reinstate their travel plans as soon as they can and are showing interest in travelling to the UK towards the end of the year.  Both Eastern and Western Europe show a very early increase in year-over-year travel intent for January 2021 with an above-average year-over-year increase of 164% and 97% respectively compared to the same time last year. Given that the departure date is extremely far out these numbers are only indicative at this time. Travellers from Asia appear more pessimistic about their future travel plans to the UK.
We will continue to share more insights as we monitor the situation. Whilst the implications for many industries look potentially bleak right now, eventually, some kind of normality will be restored.  Although it’s not yet known when these insights will hopefully help shape strategies in rebuilding the travel industry after one of its most catastrophic events. 
Looking for actionable insights that can help inform your next steps? In partnership with Hospitality United. The club, Sojern Vice President of EMEA, Chris Blaine, looks at the latest data on travel impact to Europe and shares a few ideas for how hoteliers can respond and be ready for recovery.

Tags: Sojern