Caboolture travel agents call for government funding, local bookings to help COVID-19 recovery
A Caboolture travel agent says the business of locals booking domestic trips could be a lifesaver as the industry calls for unprecedented government assistance in the face of COVID-19 disaster.
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A Caboolture travel agent has just ticked over a gut-wrenching $2 million in refunds for clients now homebound as a result of COVID-19 border bans.
Helloworld Travel Caboolture operator Jacinta Blundell, who operates four agencies across north Brisbane and the Sunshine Coast, said March 13 signified “Friday the Thirteenth” for travel agents across the state as the true economic impact of COVID-19 was revealed.
“That’s when all the suppliers and cruise companies started cancelling their forward trips,” Ms Blundell said.
HOW TRAVEL AGENTS ACROSS QLD ARE HIT BY COVID
Since then Ms Blundell’s staff have been undertaking the painful process of refunding millions of dollars to clients as trips across much of the country and the world are cancelled.
“It’s very mentally challenging,” she said.
“I get lots of emails in big capital letters saying ‘where is my money’.”
But she said the money was not with the travel agents, who take a small commission of bookings, but rather with the a vast array of suppliers across the world making the refund process both lengthy and challenging.
“No booking system was built to work in reverse.”
Ms Blundell is one of 4000 travel agents — employing 40,000 Aussies — experiencing a never before seen decline in business, and morale.
Ms Blundell said her staff across four stores had dropped from 18 to just seven, and all of her staff were on JobKeeper payments.
“It (COVID-19) put a pair of scissors straight through our income.
“It’s pretty damn grim to be honest.”
And she said the lack of government assistance had made things “very tricky”.
According to the The Australian Federation of Travel Agents, a $125 million support package is desperately needed by the industry, which had been a growth sector contributing $28 billion annually to the economy before COVID-19 struck.
The industry had been responsible for 70 per cent of international bookings made from Australia and gained some two-thirds of its total turnover value from international air and cruise which was indefinitely interrupted on March 18 and is expected to take a far longer recovery period than that of domestic travel.
“Almost all agents have experienced revenue falls of close to 100 per cent,” the federation said, adding that the plummet followed what had been a healthy 11 per cent year on year growth.
“Without tailored support these businesses will start closing.
“That means job losses, a gap in the market that the internationals will fill. They don’t pay taxes or employ locals.”
Currently, the federation estimates at least 25 per cent of local travel agencies will close.
Ms Blundell urged locals to explore Australia in the coming months, and to book their holidays with their local travel agent — saying it costs tourists the same as booking directly with a hotel themselves but gives hope to a local business which depends on commissions.
“That’s keeping the money back in our local community.
“When we do get a booking... we celebrate every little win.”
She said right now Queenslanders could not only explore the sunshine state but other locations including northern New South Wales, the Northern Territory, Norfolk Island and the ACT.
She also encouraged anyone with travel credits in place to look now at booking something for the future as a surge in interest will mean extremely limited availability for travel products around the world.
“If you are sitting on credits... get something in place,” she said.
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