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Expectation Vs Reality: What Now For Travel Agents & Suppliers?

Its been a week since the federal government quietly released initial details via Austrade of its $130 million extensions to the COVID-19 Consumer Travel Support Program. A week later – where are we at?

Its been a week since the federal government quietly released initial details via Austrade of its $130 million extensions to the COVID-19 Consumer Travel Support Program. A week later – where are we at?

In 10 days JobKeeper will end, leaving travel agents, touring and travel businesses without any further guaranteed financial support for their staff or operational costs until international borders reopen again – scheduled at this stage, though still based purely on speculation in late October.

While it was finally confirmed last week by Austrade that there will be a ’round two’ $130 million Consumer Travel Support package for eligible individuals and operators including loans, the harsh reality is that as per the ill-fated $128 million ’round one’, some will benefit while others will miss out altogether.

Those that are lucky enough to receive any additional funding this time round will also likely not get anywhere near enough versus what JobKeeper covered to bridge the seven-month operational chasm between April and late October when some degree of outbound revenue is forecast to return.

Rope-bridge
An unstable bridge too far?

To rub even more salt into the already extensive industry wounds, seven days after Austrade’s announcement, the only timeline given on their website is “The opening date for Round Two has not yet been announced, but is expected to open in April 2021.”

Excuse me? So JobKeeper is ending in 10 days on March 28 and the timeline for applications to begin are “Expected to open in April 2021?”

Near where I live there’s a restaurant that has been ‘expected’ to open since January. It’s still closed.

Running any size of a business is tough enough at the best of times, let alone in a pandemic. So please show me how anyone is supposed to take any confidence or guarantees from Austrade’s blurry update to plan their next move for survival.

Not surprisingly, the level of shock, frustration and outright anger in response to all of this from the industry at large is at an all-time high. And rightly so.

Taking a broad cross-section of comments from our social media channels and the vast amount of messages we have received at Karryon, the theme is clear. “Helplessness, sadness, disappointment and a feeling of being let down and left behind.”

border closed

The last 12 or so months have already been devastating with the loss of thousands of great people and businesses from our beloved industry.

On the eve of the one year anniversary since Australia’s international border closed and the entire travel industry literally grounded to a halt, the feeling of being essentially dismissed by the government couldn’t have more of a sting for travel agents and tour companies.

Particularly when you consider the tireless high-level political lobbying of government politicians from so many individuals, businesses and industry bodies in recent months to ‘Save the travel industry’ – Together In Travel.

What were we all lobbying for again? To be heard. To be understood. And most importantly, to be supported in the short-term.

In response, the aviation industry was heard loud and clear and again, rightly so. They have done it tough and continue to do so and have been supported generously and appropriately.

A healthy aviation sector is the backbone of the industry eco-system and only stands to benefit everyone long-term. We need them back in the air with people onboard flying confidently again and desiring more travel beyond Australia when that can happen.

And of course, while the ‘booking direct’ piece initially announced by the government missed the mark, it is reportedly being worked through to include travel agents.

Qantas Jetstar

For that reason, I don’t think it is necessarily fair or helpful to blame the aviation sector or deem them any more or less worthy than anyone else in the industry in being financially supported as they have been.

The greater injustice is the complete lack of understanding from the federal government to take a measured and fair approach for every sector of the industry with its support programs.

They are the people we should all be furious at and asking serious questions of. What was the thought process here? Did they listen at all? Why all the lip-service and no action?

How on earth did they decide that 8600 grounded international crew being unable to work is any different to travel agents or operators not being able to sell international travel and left to deal with sorting billions of dollars of customer credits and repatriations of stranded Australians, essentially working for free?

Both are constrained of work by the same ‘out of their control’ enforced issue. Both have the same bridge to cross to get to financial safety before they can reap the rewards of the pent up demand we statistically know will happen – in an expected seven months. Maybe.

There’s that word again. Expected.

When we all collectively set out a couple of months ago to lobby the federal government to ‘Save the travel industry’ post-JobKeeper ending, it was with the aim and expectation of supporting all of the industry so that it could stay afloat in the short-term to thrive again for the long.

Why is it then, that such a large percentage of the industry has since essentially been left hanging out to dry while others have been saved?

Right now, unless common sense and leadership prevail and this is resolved, the reality versus our expectation couldn’t be more different.

What do you think? Share your thoughts and email us at editor@karryon.com.au

Note: Karryon will not receive any further support post JobKeeper ending on March 28.