It’s stating the obvious to say that the past few months have been very hard for travel agents, in particular.
We have all changed. We all must change – and adapt. Nothing is predictable right now – and certainly not travel and holidays.
Short Term Rental accommodation appears to be in pole position when we are eventually allowed to travel within state, and interstate, but within Australia only. The Short Term Rental folk have never been formally introduced to our wonderful travel agents but, in these current extraordinary times, this might just be a match made in heaven. People WANT to stay in private holiday homes, STR’s want guests and travel agents need a safe and reliable product to sell to clients.
A number of consumer-related travel issues have dominated media coverage since the moment it became very clear that travel had been abruptly halted. Gaining momentum week after week, travel consultants quite quickly found themselves caught in the crosshairs of intense, and largely unfavourable, media scrutiny.
Representative body AFTA, and its ceo Jayson Westbury, charged into the media fray to present ‘the other side of the story’ on behalf of agents, but events last week turned that well-intentioned advocacy into a sour and curdled mess, forcing the AFTA Board to accept the resignation of its ceo, and appearing to leave agents without a champion – for now*.
Little wonder travel agents are feeling battered and bruised.
And, in the midst of all the external chaos, many individual travel agents and smaller agencies are telling us that they are really hurting, as they struggle like every other sole trader and small business in the country now to bring in revenue, concerned about job losses and keeping their companies afloat.
Unlike some other businesses able to embrace the so-called ‘pivot’ and ‘innovate’ their model into something that might survive our ‘new normal’ until they can resume operations again at full tilt – travel is altogether different.
Travel is stuck.
Yes there is animated talk about lifting some domestic travel restrictions soon, with a view to having us all holidaying in Australia by the July school holidays. We know that as some state borders stay closed to visitors, some of us may only be able to holiday within our home state, initially.
Timing on all of this? Well, that’s hard to say, we’re told. And we understand the caution.
At the moment there is no genuine supply of travel product and, equally, there is little or no demand for travel product.
Some tour operators and cruise lines are offering buy now/travel later international packages, wisely with long use-by dates and guarantees of future credits should the nominated date of departure be pushed back by global government edicts.
Equally, some tour operators and cruise lines are packaging buy now/travel later domestic itineraries. But even these departure dates are hamstrung by states re-opening borders, our ports signaling the return of cruise ships, and our government giving the green light for Australians to travel within the whole of Australia once again.
Consumer confidence is low.
Add to this: some people are very keen to travel again; some are too scared to travel any time soon; some have lost their jobs and regular income and can’t afford to travel; some have already been obliged to take their accrued annual leave.
If wholesalers and tour operators, airlines and cruise lines, hotels and resorts and tourism organisations around the globe are all twiddling their thumbs right now, unable to conduct their business as usual, the flow-on effect to the point of sale folk, the consumer-facing folk, the frontline folk – travel agents – is obvious.
Supply and demand
Is there demand right now from consumers who want to book and pay for travel?
A trickle.
Why?
Because everything surrounding travel is still so uncertain
Is there a steady supply of travel product right now?
A trickle.
Why?
Because there is no travel right now.
Cruise lines and airlines are on pause, hotels and resorts are on pause, tour operators are on pause.
Where does this leave travel agents?
Without the flow of supply and demand that drives their businesses and brings in revenue.
The plain truth for travel agents
• Agents need to see cashflow now
• Agents need to create revenue streams now
• Agents need something to sell now
• Agents MUST sell domestic travel now
Domestic travel – ask yourself these questions
Who will be likely to holiday first?
- Families with school-aged children
- Retirees
- Self-funded couples of all ages
- Multi-generational family groups
- Millennials
Where will they holiday?
Either within state or, when state borders open, interstate.
Choosing regional areas over cities.
What type of holiday will they choose?
• People have been living within their own four walls for some time now. It’s likely that, when given the option to holiday in Australia, most people will choose space – beaches, lakes, verdant valleys, vineyards, open plains – over confinement.
• People have been hanging with their pets 24/7 – they’ll be looking for pet-friendly accommodation too!
• People have been living in small family groups for some time. Natural trepidation after isolation will mean some families will want to maintain a degree of separation from ‘others’ – they will want to holiday in a private rental home or cabin, perhaps camp/caravan. They too will look for space.
• Retirees will opt to camp or caravan, or choose a well-equipped holiday rental apartment or small home/cabin.
• Self-funded couples will seek out eco cabins, luxury home rentals, resorts and, perhaps, holiday apartments
• Millennials will largely look to holiday with friends – rent a big home, camp, eco adventures.
• Multi-Generation families will want to rent a big, luxury private rental home where the whole family can be comfortably accommodated and all of the lockdown missed momentous occasions – birthdays, Easter, arrival of grandchildren, marriages and engagements, anniversaries and deaths – can be acknowledged and celebrated together.
Hotels
Sadly, hotels are not going to be a hot favourite for several reasons:
• Aussies have been confined – a hotel room, however spacious, is an echo of the weeks of in-home isolation, and many people live in apartments. Moreover, media reports of disgruntled travellers quarantined in hotel rooms for 14 days has highlighted the downside of hotel living – no opening windows = airless and claustrophobic; fear of virus transmission in common areas e.g. lobbies, lifts, dining and bar areas, gyms and spas.
• People are wary about selecting a ‘safe’ hotel – media coverage of hotels in every city (and some regional hotels) being given over to quarantined return travellers, telehealth ‘sick rooms’ and people quarantined because they have tested positive to COVID-19.
• Lack of trust regarding cleaning and sanitising practices as they relate to COVID-19
• A hotel is no fun if its facilities, including gym, spa, restaurants, bars and pool are closed or restricted.
• A city hotel stay is no fun if the city is not “sparking”. Most people enjoy a city stay for the attractions, outings, theatres, dining, bars, cafes, nightlife and vibe – and without these bonus elements, a city hotel stay will likely be replaced by a quiet country getaway.
Winter is upon us – what about snow holidays?
We just don’t know yet.
Will our favourite ski resorts be allowed to open? Will lodge/resort accommodation be restricted/diminished in order to foster social distancing?
Will some people head to snowy regions, regardless, and look to stay in private homes instead? Will ‘Christmas in July’ holidays boom as people choose country home rentals/open fires and the warmth of family and friends holidaying together?
Travel agents have a distinct advantage when it comes to managing the re-opening of holidays and travel within Australia – your clients.
Talk to them … what do they want? Where would they like to holiday? What type of accommodation would they like to book?
Travel agents ARE the frontline folk in this industry. YOU are the link between customer and supplier. While everyone else speculates – government, health authorities, tourism organisations, tour operators, hotel groups, airlines, cruise lines – YOU are the only ones with a direct line to the people who will, ultimately, travel!
Use those incredible relationships with your clients that you have nurtured; talk with friends and family about their holiday aspirations; use your natural social skills to have these conversations, and you can start to design the future of your business.
Beginning this week, Travel Monitor will be rolling out a series of dedicated, agents-first information and practical solutions to help you to stay in business, bring in revenue, grow your business and be standing – and thriving – at the other side of this.
We want to remind you that you are NOT behind the 8-ball; you are not without resources. YOU are the best resource in your business.
What are you waiting for? You KNOW you’ve got this!
*Travel Monitor is a fan of the advocacy work AFTA undertakes on behalf of agents in Australia and looks forward to continuing our support once the dust settles and a new ceo is announced.
