PATA predicts in 2021 Asia will drive early visitor recovery

Pacific Asia Travel Association forecasted that Asia is predicted to spearhead a return to visitor growth across Asia Pacific in 2021.

Considering the impacts of the COVID-19 pandemic, the volume of arrivals under a most likely scenario is now expected to return to over 610 million in 2021, barring any other unforeseen interventions. This initial recovery is expected to see growth of around three percent above 2019 levels. This will herald a return to the initial forecast levels shortly thereafter.

Asia is expected to rebound with the fastest growth rates relative to 2019 and the growth in international visitor arrivals will vary by the source regions.

The Americas, which is expected to show the lowest contraction in its rate of growth in 2020, is forecast to continue with much weaker growth rates over the years to 2024.

Asia is expected to generate significantly improved arrival numbers during the recovery phase in 2021. It will rebound from a loss of almost 104 million visitors between 2019 and 2020 to growth of 5.6% in 2021 relative to 2019, delivering more than 18 million more arrivals over that period.

In 2021 arrivals into the Americas are expected to be relatively strong with a net increase of 2.9 million visitors relative to the volume generated in 2019.

This is expected to be driven largely by intra-regional flows (Americas-to-Americas) which, after a decline of 4.3 million arrivals between 2019 and 2020, are expected to recover rapidly and generate more than 2.5 million arrivals into the Americas relative to 2019.

Tags: PATA

Hotel profit plunges amid COVID-19 rise in Europe

With cases in China starting to plateau, the World Health Organization (WHO) declared Europe to be the new epicenter of the coronavirus outbreak in March, fueled by the rapid expansion of the virus across Italy and Spain. This prompted governments across the region to scale up the measures to contain the spread, and several lockdown and quarantine orders ensued.

According to HotStats, the consequences on the European hotel industry were swift and devastating. Gross operating profit per available room (GOPPAR) in March 2020 plummeted by 115.9% compared to the previous year to -8.33 euros. This is the first triple-digit year-over-year decrease in profitability ever recorded in the HotStats database for Europe, as well as the first time GOPPAR turned negative in the region.

Driving this profitability slump was a massive contraction in demand. Occupancy in March plunged by 44.8 percentage points YOY to 27.4%, which in turn drove RevPAR down by 66.2%. A further 65.6% decline in total F&B revenue per available room contributed to the sharp 61.6% YOY fall in TRevPAR.

In response to this top-line nosedive, undistributed expenses on a per available room basis fell across the board, resulting in a 25.3% YOY decrease in overhead costs. Total labour costs also adjusted downwards by 28.8% YOY. However, these flex efforts were not enough to offset the lost revenue, and profit margin in Europe was recorded at -13.1% in March 2020, placing 45.7 percentage points below the same month of the previous year.

The March results are in stark contrast to the two previous months, as both January and February had recorded YOY GOPPAR growth, up 0.7% and 1.2%, respectively. However, the severity of the downturn in March made the first quarter of 2020 the worst-performing Q1 in Europe recorded by HotStats since it started charting the region’s data. The YOY contraction in GOPPAR for Q1 2020 was 49.9%, amply surpassing the previous record set by Q1 2009, when profit per room fell by 22.2%, the result of the Global Financial Crisis.

Italy was the hotspot of the coronavirus outbreak in Europe in March, as cases in the country increased from 400 at the end of February to more than 53,000 barely one month later. Lombardy, Italy’s most affected region, was the first to be placed under forced quarantine. As early as March 8th, the Italian government prohibited anyone from entering or leaving the northern region and its capital, Milan. Hoteliers in the city had already faced a profit per room contraction in the month of February, with a 27.1% YOY fall in GOPPAR. In March, the spread of the pandemic and the containment measures associated with it severely deepened this trend, resulting in a record 182.1% YOY GOPPAR drop to -€64.96.

Lost demand was at the heart of the top-line slump. Occupancy in the city marked an all-time low in March at 1.7%, a 69.5-percentage-point decline compared to the same month of the previous year. The average rate followed suit and was slashed by 21.5% YOY. As a consequence, RevPAR recorded a YOY contraction of 98.1%. F&B revenue was cut by 96.2% YOY on a per-available-room basis, and with the rest of the revenue centres sharing in this same downward trend, TRevPAR plunged by 96.2% compared to March 2019.

Expenses were slashed across all operated and undistributed departments to compensate for the precipitous revenue decline. Total overheads per available room were down by 49.4% YOY, and labour costs dropped by 53.8% YOY. However, this was not enough to prevent the erosion of profit margin in March, which placed 600.9 percentage points below the same month of 2019, at -574.1%.

Profit & Loss Performance Indicators – Milan (in EUR)

KPI	March 2020 v. March 2019	Q1 2020 v. Q1 2019
RevPAR	-98.1% to €3.49	-29.3% to €128.45
TRevPAR	-96.2% to €11.32	-32.7% to €192.12
Labour Costs PAR	-53.8% to €49.36	-18.2% to €89.68
GOPPAR	-182.1% to -€64.96	-67.6% to €22.71

Spain was another epicenter of the COVID-19 pandemic in Europe in the month of March, as the country increased its number of confirmed cases from 430 to more than 70,000 in the span of just a few weeks. Madrid was the hardest hit, spurring the regional government to decree the closure of all educational institutions and galleries on March 11th. Three days later, a nationwide quarantine order was enacted.  

After consecutive upticks in the first two months of the year, profit per available room took a massive hit in March, and GOPPAR was reduced by 127.7% YOY to -17.12 euros. Plummeting occupancy, down 59.7 percentage points YOY, fueled the 78.9% YOY drop in RevPAR. Further declines in non-rooms revenue added to the top-line plunge, and TRevPAR placed 75.8% below the previous year.

Hoteliers in the Spanish capital managed to flex overheads (down 31.9% YOY) and labour costs (down 33.4% YOY), but the unprecedented top-line contraction still resulted in a loss of 79.3 percentage points of profit margin YOY to -42.3%.

Profit & Loss Performance Indicators – Madrid (in EUR)

KPI	March 2020 v. March 2019	Q1 2020 v. Q1 2019
RevPAR	-78.9% to €25.07	-30.5% to €71.48
TRevPAR	-75.8% to €40.48	-30.0% to €104.67
Labour PAR	-33.4% to €35.07	-11.8% to €47.84
GOPPAR	127.7% to -€17.12	-59.0% to €18.45

Tags:  HotStats

GBTA Members Are Planning Their Post-Coronavirus Recovery Plans

Over the past several months the world watched the global business travel industry come to a halt but according to new research issued by the Global Business Travel Association, there are signs of optimism and recovery on the horizon.

The study found that most companies are planning a recovery for 2020 with one in three planning for a recovery in three months or less. 

To understand the coronavirus’s effects on business travel, GBTA conducted its sixth poll among the membership on April 17-22, 2020.  GBTA received responses from almost 1,600 member companies throughout the world.

“The global business travel industry remains at a standstill, but we are finally beginning to see some light at the end of this very long tunnel,” said GBTA Chief Executive Officer Scott Solombrino.  “GBTA members are planning their post-coronavirus recovery plans and most expect to be operational in 2020.  This is a positive sign. The majority of GBTA member companies expect domestic business travel to resume in the next 2-3 months and most expect employees will be willing to travel.  We have waited a long time for there to be optimism around the pandemic in our industry, and it should continue to grow as we get closer to halting the spread of this disease.”

Among the poll’s key findings are:

• Most companies are planning a recovery plan in 2020. One-third (35%) of GBTA members say they plan for their company’s post-coronavirus recovery plan in three months or less, while a quarter (27%) say they plan for a post-recovery in 6-8 months. In addition, only one in ten are planning for recovery in 2021, while one in four (28%) report they do not know.

• Among GBTA members who report their company has canceled at least some domestic business trips, six in ten (62%) say they expect domestic travel to resume in the next 2-3 months. One in five reports they expect domestic travel to resume in the next 6-8 months (18%) or are unsure (19%).

• GBTA European members (74%) are more likely than members based in North America (58%) to expect domestic business travel will return in 2-3 months. In addition, members based in North America (21%) are more likely to be unsure when domestic business travel will resume compared to members based in Europe (12%).

• • Eight in ten European members expect international business travel will resume in 2-3 months (33%) or 6-8 months (47%). Two-thirds of GBTA members in North America expect international travel to resume in 2-3 months (26%) or 6-8 months (38%).

• A majority of GBTA members (88%) expect employees will be willing to travel once restrictions are lifted. GBTA members from North America (90%) are more likely than members from Europe (83%) to expect their employees will be willing to travel after restrictions are lifted.

• Looking at what it will likely take GBTA members to feel comfortable with employees traveling for business, many information resources are perceived as being important including: a decline in new infection rates (92%), governments lifting travel restrictions or advisories (91%), guidelines or statements from public health agencies such as the WHO or CDC (90%), effective anti-viral treatments (89%), removing stay-at-home lockdowns (88%), a new Coronavirus vaccine developed and available to employees (85%), advice from a risk management firm/consultant (e.g., Worldaware or International SOS; 60%), and other companies allowing travel (49%).

• One in five GBTA buyer members note their company has reduced staff or laid off (21%), furloughed (21%), or cut employee salaries (20%) as a result of the coronavirus.

• GBTA supplier member optimism about the industry’s path to recovery vary. One in five (19%) say they are more optimistic than they were last week, while six in ten (57%) say they feel the same as they did last week. One-quarter (24%) feel more pessimistic about the industry’s path to recovery than they did the week prior.

• • GBTA supplier members note bookings from corporate customers have remained the same (41%) or decreased (49%) in the past week.

• Some GBTA members report their company does allow some essential travel. One-third (35%) say while their company has canceled or suspended all non-essential trips but allows some essential travel.

• GBTA member sentiment varies concerning the impact Covid-19 has had on the industry. When asked about layoffs/furloughs in the corporate travel industry, four in ten feel the worst has already happened (42%) while an equal number feel the worst has yet to come (41%). GBTA members in North America are more likely to feel the worst has already happened when it comes to layoffs and furloughs (47%) compared to members based in Europe (30%).

• • There is more consensus when thinking about canceled flights, with three in four (77%) GBTA members stating the worst has already happened compared to one in ten (15%) who feel the worst is yet to come.

• • Six in ten (62%) GBTA members feel the worst has already happened concerning hotels suspending operations compared to one in four (26%) who feel the worst is yet to come.   GBTA members based in North America (64%) are more likely to feel the worst has already happened regarding hotel suspensions compared to members based in Europe (53%).

• • GBTA members are more pessimistic about revenue loss for travel companies. Over half (56%) feel the worst is yet to come in terms of industry revenue loss while one-third (29%) feel the worst has already occurred.

• GBTA member companies have not opened international (98%) or domestic (93%) travel as companies continue to cancel and/or suspend almost all business travel regardless of destination. In fact, almost all GBTA member companies (57%) report they have suspended or canceled all business travel across the board.

• Business travel remains halted across the globe. Companies continue to cancel or suspend almost all business travel regardless of country or region. GBTA members report their companies have canceled or suspended “all” or “most” business trips to:
• China - 99% canceled or suspended
• Hong Kong - 99% canceled or suspended
• Taiwan – 99% canceled or suspended
• Other Asia-Pacific countries (e.g., Japan, South Korea and Malaysia) - 99% canceled or suspended
• Europe – 99% canceled or suspended
• Middle Eastern countries – 98% canceled or suspended
• Latin America – 97% canceled or suspended
• Canada – 95% canceled or suspended
• United States – 95% canceled or suspended

Tags: GBTA  Global Business Travel

‘Carefree Bookings’ offers risk-free reservations for more than 1,000 destinations and experiences

MIAMI, FL – Overseas Leisure Group, a luxury travel operator in 34 countries across the globe, announces its Carefree Bookings initiative, offering a risk-free method of booking across an attractive portfolio of more than 1,000 destinations and experiences around the world. The newly launched industry-wide program has been designed to allow travelers plan their next trip despite the uncertainty of future restrictions enforced due to the Coronavirus pandemic.

The Carefree Bookings campaign follows the nationwide survey by the leading Miami-based travel group recently conducted among 2,000 travel enthusiasts in the U.S., revealing that 72 percent are already making plans for their next vacation; 53 percent are planning to travel this summer or fall, and 42 percent are ready to make a reservation now if it there was no constraint or penalty. With millions of hospitality-related jobs on the line, it was deemed essential to obtain vital insight from travelers themselves.

Carefree Bookings offers a convenient method of making a reservation with some of today’s leading destinations and experiences around the world, without the need for a deposit and with no cancellation fee if travel plans change. Furthermore, the cancellation policy is truly carefree, whereby if payment isn’t made 7 days prior to the arrival date (to guarantee the reservation) the booking is automatically cancelled with no penalty whatsoever. These no-strings-attached terms for the Carefree Bookings initiative apply to travel between June 1st and October 31st, 2020.

Among the initiatives developed to protect the consumer’s interest, more than 1,000 hotels, resorts and experiential providers have decided to participate in the Carefree Booking program, including: COMO Hotels and Resorts, 1 Hotel, Auberge, Belmond, Crowne Plaza, Disney, Fairmont, Four Seasons, Hard Rock, Hyatt, InterContinental, Kimpton, Lowes, Marriott, Meridien, Peninsula, Ritz Carlton, Rosewood, St Regis, and Westin Hotels and Resorts.

In addition to the vast array of participating hotels and resorts, Carefree Bookings offers hundreds of unique experiences, such as surf lessons in Malibu with actor John Philbin (Point Break), and private helicopter rides with Papillon Grand Canyon Helicopters, among others. A full list of participating properties (with opening dates) and experiences can be found by visiting the Overseas Leisure Group website.

“After weeks of confinement, there is a growing need for freedom and new horizons,” says Felix Brambilla, CEO of Overseas Leisure Group. “We heard the same comments time after time: "I am ready to make plans but I cannot commit if there is a risk of getting penalized." Working with our hotel partners, we came up with the Carefree Bookings concept. More than a thousand properties already accepted to amend their usual T&Cs. We are very proud to be launching this initiative at a much-needed time!”

Carefree Bookings opens for reservations on Wednesday, April 29th and is available through travel agencies and advisors in the U.S., Europe and Brazil. Travel agents can make Carefree Bookings in real-time on the OverseasXpress platform at ox.live.

“In these extraordinary times, we believe strong partnership is fundamental to our business acumen, therefore we are thrilled to partner with Overseas Travel new initiative “Carefree Booking,” says Michele Bondanelli, Global Sales Director – Luxury, Lifestyle & Leisure for Hyatt. “A large number of Hyatt hotels are participating in the program across all brands and we look forward to welcoming their guests in the days, months and years ahead.”

"What a great way to address the current global situation and the effect it is having on travel,” says Kidist Grznar, Vice President of Papillon Grand Canyon Helicopters. “A ‘Carefree Experience’ is an amazing way to give people the opportunity to keep dreaming and move forward with their travel plans worry free.’ I am excited that Papillon Grand Canyon Helicopters is participating."

According to Statista, domestic and international travelers spent nearly $1.1 trillion U.S. dollars ($1,127 billion) in 2019 alone. When this sum is split by type of traveler, domestic travelers spent $972 billion, while international travelers spent $155 billion. Total travel expenditure in the U.S. is forecasted to reach $1.26 trillion by 2022.

Overseas Leisure Group is a growing global network dedicated to providing travel professionals with insider expertise for all luxury travel needs. The company is represented in 34 countries through 41 offices and continues to expand every year. Through its brands, Overseas Leisure Group provides unique luxury programs for individuals, groups and high net worth individuals. 

Tags: Overseas Leisure Group

Hyatt to introduce global hotel sanitisation measures

The Hyatt Hotels Corporation has decided to review standards of hotel cleanliness, hygiene, and sanitisation globally. The move comes in light of the ongoing COVID-19 pandemic that demands safety and hygiene measures in hotels. The company has also planned to introduce employee training and accreditation to ensure compliance.

More than 900 Hyatt group hotels around the world will undergo assessment as part of the strategy. The hotels would look forward to obtaining Global Bio-risk Advisory Council (GBAC) STAR accreditation, with hygiene practices and protocols upgraded under the direction of a cross-functional group of medical experts and industry professionals. GBAC is a division of the International Sanitary Supply Association- leading the worldwide cleaning industry collaboration. The council comprises experts in microbial and pathogenic threats and mitigation which deals with global health crises on a real-time basis.

Hyatt will be implementing a performance-based cleaning, disinfection, and infectious disease prevention program. The company would focus on establishing and maintaining hotel environments that are sanitary, safe, and healthy.

Employee training will be boosted in line with new protocols, while Hyatt will implement regular internal and third-party auditing to ensure standards are met and exceeded consistently. Daily colleague surveys will be introduced for internal reporting, which will also include standards for hotel working order and customer service, allowing management to make adjustments and improvements as necessary.

In addition, by September 2020, every Hyatt hotel will have at least one person trained as a Hygiene Manager who will be responsible for ensuring the property maintains Hyatt’s mandated operational cleanliness procedures. Mark Hoplamazian, President and CEO, Hyatt Hotels said in a statement that he looks forward to ensuring every Hyatt guest and team member feels safe within each hotel.

He mentioned that the company would also make sure that every aspect of a hotel’s operation has been refined with their safety in mind. He shared that to execute the plan successfully the hotel experience must be critically examined from every vantage point. He added that all rooms, lobbies as well as adjoining areas like spas and dining should be tested with the help of the latest research, technology, and innovation.

Tags: Hyatt Hotel and Resorts, Hyatt Hotels Corporation

Iberostar Group Incorporates a Medical Advisory Board

Iberostar Group consolidates its leadership in responsible tourism and the development of circular economy policies, implementing a resilience plan to face the hospitality industry’s challenges after the COVID-19 crisis.

“As an international hospitality company, people and the environment have always been a priority for Iberostar Group. We face new times and we need new solutions to promote circular economy policies in this scenario. Only resilient companies that are capable of meeting these challenges will be able to compete”, says Vice-Chairman & CEO Sabina Fluxá.

Following this line of action, Iberostar Group strengthens its long-term health and prevention strategy, placing it as a key pillar for its business development through the reinforcement of its circular economy and sustainability policies. The company created a Medical Advisory Board including experts in Public Health and Safety in the tourism sector. Among the experts is Sebastián Crespí Rotger, founder and president of the consulting firm Biolinea Internacional, who will be accompanied by other specialists of recognized international reputation. The experts are cooperating with the company’s sustainability office and together with its main executives and operational managers. The Medical Advisory Board leads the company in its adjustment to the new reality derived from the pandemic by auditing health and safety protocols and designing specific measures to guarantee the safety of customers and employees. These actions will follow the guidelines provided by public authorities and health institutions and comply with the responsible tourism model and circular economy policies which are at the core of the company's vision.

Dr. Sebastián Crespí has a solid and established career as a specialist and researcher of infectious diseases in tourist environments and will be accompanied by other renowned virology and epidemiology experts. Biologist and Doctor in Pharmacy, he has recently collaborated with the World Health Organization (WHO) in the preparation of the provisional guide "Operational considerations for the management of COVID-19 in the accommodation sector". His professional career has focused on the study of public health and research of water hygiene and infectious diseases in the tourism industry. For more than 20 years, he has managed the clinical laboratory of the Policlinica Miramar Hospital (Palma de Mallorca) and he is the founder and president of the consulting firm Biolinea International.

Tags: Iberostar Group 

Hospitality Ventures Management Group (HVMG) launches Associate Relief Fund

ATLANTA - , an Atlanta-based, private hotel investment, ownership and management company, announced it has launched a relief fund for its laid off associates impacted financially by the on-going coronavirus pandemic. Launched via GoFundMe across just the corporate office initially, the fund collected more than $20,000 in just two hours and has continued to grow as corporate associates, property associates, property owners and friends of the company continue to contribute.

“We are guided by our Purpose, ‘To be excellent in all we do so our associates, guests and partners LOVE us,’ so it was vitally important to us at HVMG to offer whatever support we can during these obviously trying times,” said Robert Cole, president & CEO, HVMG. “Due to this outpouring of aid, we continue to have funds being distributed in the form of gift cards for Walmart and similar retailers.”  

The fund is voluntarily supported by anyone wishing to donate to these in-need hotel industry workers. “Whether the associate needs the funds for essential items, groceries, medical bills or to care for a loved one, we are thankful for the generosity and encouraged to know that this money will make a difference for our associates in need,” said Susan Sanders, executive vice-president & chief human resources officer. “We work with each property general manager to ensure the funds are  distributed quickly in a fair and consistent manner. As the states are delayed by the sheer number of requests for financial aid, this assistance can help bridge the gap between filing and receiving state unemployment compensation.”

Tags: Hospitality Ventures Management Group (HVMG)

Bench Events Announces First Speakers for Second Episode of Hospitality Tomorrow

Following the successful launch of Hospitality Tomorrow, Bench Events' first virtual conference that took place earlier this month and attracted 5,343 hospitality decision-makers from 128 countries, today Bench Events has announced the first 30+ speakers for the second edition of Hospitality Tomorrow.

Powered by Bench Digital, Hospitality Tomorrow was launched to support the hard-hit international hospitality community during Covid-19, by offering a virtual conference platform that provides knowledge, facilitates information sharing and connects the industry.

Jonathan Worsley, Chairman of Bench Events, said: “Our goal for the last 25 years has been to bring the hospitality industry together around the world to network and to showcase best practice and thought leadership. Hospitality Tomorrow continues this journey and, as daunting as the challenge may seem, it’s crucial that we rebuild confidence in the global community. Now is the time to continue the conversation and to make those critical connections to build relationships, unity and actionable ways to support one another for a stronger response – as one industry, one community for one tomorrow.”

Virtually global, episode two of Hospitality Tomorrow (‘HT2’) will take place on Tuesday 12 May 2020. The interactive programme will follow the sun around the globe and is split into a focus on five key markets spanning the planet, starting at 06:00 GMT with a session on China and ending at 16:00 GMT with a focus on North America.

Anita Mendiratta, Special Advisor to the Secretary-General of UNWTO, will be co-hosting the event with Jonathan Worsley. Ahead of the event she commented: "COVID-19 has connected the world through the crisis. As discovered with Hospitality Tomorrow's first edition, leaders are determined to stand together - across the globe and value chain - to ensure rigorous examination of the challenges ahead so we are all ready to mobilise smart, sustainable solutions once our doors, borders and skies re-open. I am incredibly honoured to be a part of this remarkable, pioneering project, and excited to be part of our next edition as our global community reconnects on May 12th."

Back by popular demand, HardTalk presenter Stephan Sackur will be moderating several sessions of the HT2 programme that will, amongst others, cover key topics including the influence of technology on the world during and post Covid-19, trends and reinventions that are set to transform the industry, the future in art and culture, as well as sustainability, hospitality investment and asset management in the new normal.

The programme will once again have a stellar line-up of global thought leaders, the full list of speakers please can be found here. Confirmed speakers include: 

• Puneet Chhatwal - Managing Director and CEO, Indian Hotels Company Limited
• Jerry Inzerillo - Chief Executive Officer, Diriyah Gate Development Authority, KSA
• Lindsey Ueberroth – CEO, Preferred Hotels & Resorts
• B. Kachru - Chairman Emeritus & Principal Advisor South Asia, Radisson Hotel Group
• Neeraj Govil - Senior Vice President for South Asia, Marriott International
• Kate Nicholls – CEO, UKHospitality
• Marcus-Milan Arandelovic - Hotel Division COO, Aroundtown SA
• Wesley Paul - Founder & Executive Chairman, Gemin-i Analytics Ltd
• Anders Nissen – CEO, Pandox AB
• Priya Paul – Chairperson, Apeejay Surrendra Park Hotels
• Demian Hodari, Associate Professor of strategic management, Ecole Hôtelière Lausanne (EHL)
• Isabel Hill, Director, National Travel and Tourism Office at the U.S. Department of Commerce

The immersive conference experience will feature nine hours of interactive content and essential industry insights by global speakers on the main ‘live’ stage and in break-out sessions and roundtables, as well as live face-to-face networking and a virtual Expo hosted by the event sponsors.

Through a voluntary registration contribution for the first edition of Hospitality Tomorrow, Bench Events was able to fund 16 hospitality workers' livelihoods through Springboard and will continue to allocate funds from the ticket sales of this event to help hospitality professionals impacted by the struggling sector.

“The Charitable Committee at Bench Events is very pleased to support Springboard to help their efforts of continuing to provide crucial support services to people from disadvantaged backgrounds during this difficult time. This fund was built through the voluntary registration fee for Hospitality Tomorrow, in which 50% was pledged to help those in need from our industry impacted from the COVID-19 pandemic. Springboard helps people of all ages, backgrounds and walks of life with barriers into employment to fall in love with hospitality, leisure and tourism, as well as to gain the skills, knowledge and experience needed to forge a career in these industries”, commented Worsley.

More information about the agenda, speakers and how to register can be found at www.HospitalityTomorrow.com.

Tags: Hospitality Tomorrow

Incentives, an effective approach to boost the appeal of credit notes, says GlobalData

Cash conservation has become the top most priority as lack of demand is affecting the balance sheets. The credit note, an alternative to a cash refund, is now being widely used by the operators in their cancellation policies in a bid to preserve cash. The additional incentives are enhancing the appeal of credit notes that are enticing the travelers to opt for this alternative rather than a full cash refund, says GlobalData, a leading data and analytics company.

Johanna Bonhill-Smith, Travel & Tourism Analyst at GlobalData comments: “Additional bonuses that have been initiated on top of credit notes will boost the appeal of this alternative refund method, helping companies to preserve cash when reserves are depleting. 

“There has been much skepticism surrounding the credit note on the dates it can be used and ATOL (Air Travel Organisers License) protection. But certain operators are undoubtedly promoting this more effectively than others and are likely to encourage more travelers to take this option.”

TUI Group has introduced an automatic refund credit for travelers holidaying before 15th May 2020; an additional 20% credit has been added onto the booking.

Jet2 Holidays has updated the amendment policy, enabling travelers to change dates of their holiday in exchange for a discount of US$125 (£100) off if booked before 31st March 2021 and US$75 (£60)  off if booked before 1st April 2021.

Bonhill-Smith concludes: “Depleting cash reserves is a worry faced by all operators as travel has come to a standstill. It is likely all companies’ managements are urging travelers to opt for the credit option rather than a full refund, thus additional incentives are an effective way to boost the appeal.” 

Tags: GlobalData

Singapore Airlines offers complimentary rebooking of tickets

Singapore Airlines has decided to offer complimentary rebooking for all SIA and SilkAir tickets issued from March 15 to June 30. Therefore, travelers can continue to book flights with Singapore Airlines without any worry and hindrance. The action has been undertaken amid the COVID-19 pandemic as the carrier witnessed a huge 64.8% plunge in passenger travel demand.

The action enables passengers to readjust their travel plans without incurring a rebooking fee. Singapore Airlines said in a statement that that top-up fees might still apply in the case of fare differences in the new itinerary. Refunds related to flight cancellations would be made according to fare conditions. Customers who have used their miles to purchase flight tickets will have both miles and taxes refunded as well.

Any passenger who has directly booked their tickets with the airline will have to edit their itinerary details. The complimentary rebooking of their tickets can be redeemed through the “Manage Booking” section on the carrier’s website. Passengers who have booked their flights with travel agencies would have to contact their agents directly.

In addition, the airline has also prepared a COVID-19 Assistance Request form on its official website to attend any questions or queries of the customers. Previously, the carrier was forced to cut 96% of its capacity until the end of April 2020 due to the ban on short-term tourists from entering or transiting through Singapore and all non-essential travel restrictions since March.

Singapore Airlines have also grounded 138 of its 147 aircraft and retired its Boeing 777-200ER fleet early. Only 9 of the airline’s flights are being operated at the moment. Irrespective of the difficulties, the carrier has decided to execute the action to provide its passengers with increased flexibility during an unprecedented time. This move can also stimulate more bookings and gives customers the confidence that they will not lose out on anything if they are forced to change their travel dates.

Tags: Singapore Airlines