Time is running out to save the UK's tourism industry, says leading travel agent

The UK travel industry could collapse into ruin unless the Government takes urgent measures to protect it, a leading travel chief has warned.

Ali Shah, the CEO of online travel agent TravelUp, has claimed that tens of thousands of tourism jobs could be lost if plans to wind up the furlough scheme go ahead, causing “irretrievable harm to every aspect of the sector.”

He has also cautioned that the industry is suffering from a crisis of confidence among travellers, caused in large part by the failure of UK-based airlines to refund passengers whose flights were cancelled due to the Covid-19 pandemic.

“Of course, managing a pandemic is no easy task for the Government, and the travel industry must take some responsibility in adapting to the new reality,” said Mr Shah.

“Many companies have faced the task head on, drastically restructuring their businesses, and providing customers with more flexibility and support. Yet so far this has not proved enough to safeguard the ailing travel industry. Many passengers are still experiencing frustrating refund delays, and travel agents have found themselves in a constant battle trying to get customers’ money back for cancelled flights.”

With tourism businesses among the worst affected by the pandemic, and most struggling against dwindling revenues as a result of worldwide travel bans, it is estimated that some 90,000 workers in the travel sector – which supports almost 10 per cent of UK employment – have already lost their jobs.

Bookings for international holidays are still well below normal levels, and Mr Shah has stated that unless the Government’s furlough scheme is extended beyond October 31 (its current end date), or a new financial aid package is provided, then many businesses will be forced into bankruptcy.

TravelUp is also spearheading a new campaign, Trust Account, which is lobbying the Civil Aviation Authority to ringfence flight fares as a precaution against further travel bans sparked by renewed surges in coronavirus infections, thereby ensuring the money is there for customers to be refunded.

It is estimated that airlines still owe up to £7 billion in reimbursement for cancelled flights, with many having far exceeded the seven-day limit for refunds to be processed, as stipulated by the Denied Boarding Regulations.

“If we are to recover consumer confidence in travelling, it is time passengers felt like governments, airlines and travel companies were on their side. Along with clearer guidance and warnings on quarantine rules and consumer rights, Government Ministers and the CAA, need to consider a drastic rethink of the way the industry operates.

“We need to provide flexibility like never before and trust that people will keep faith with travel.”

TravelUp itself faced controversy during lockdown after it was accused of amending its terms and conditions to include a “small administration fee” for processing refunds.

Its marketing director, Craig Ashford, said the admin charges were introduced after the company incurred "substantial costs" while pursuing airlines for reimbursement.