Furlough has only partially helped travel agents, says Not Just Travel
The furlough scheme has not aided travel as much as other industries because agents have still been immersed in non-revenue generating work, the boss of Not Just Travel has said.
Steve Witt, co-founder of the agency network, said consultants have needed to keep working to refund and rebook thousands of customers whose holidays were cancelled due to Covid.
That has meant many businesses have been unable to furlough staff which has put further strain on already-stretched finances.
"While we have used the furlough scheme for a small amount of staff, we haven’t been able to use it as much as other industries," Witt said.
"This is because travel consultants are customer-facing service businesses. Our consultants and staff team have done a brilliant job helping customers to get refunds, rebooking their dream trips for later and offering advice and support – yet none of that generates any cash.
"We have been working harder than ever since the pandemic hit, ensuring our customers are happy – yet it means we take the hit financially."
He said hotels and resorts have closed and been able to save money by putting staff on furlough.
Agents, however, have been ‘busy working, dealing with those hotels and resorts, while waiting for the commission to come in when the customers actually travel’.
Nevertherless, Witt acknowledged that the furlough scheme has saved jobs, and called for it to be extended in next week’s budget.
He added that other measures to assist the industry – such as the ongoing deferral of VAT payments – would ‘go a long way to help small businesses’.
"Cash flow is king," Witt said. "While we have a strong business model and reserves, the travel industry as a whole has been hit hard. We’ve been able to implement a strong plan and continue to expand knowing that the biggest ever travel bounceback is right around the corner.
"Many other travel companies are not so fortunate."
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