THE Australian travel industry needs to seriously consider the prospects of shutting down, according to a downbeat discussion paper prepared by a Travel Daily agent reader.
The open letter suggests agents and suppliers should face the reality that it will be some time before borders open, and only businesses which are able to either reduce expenses to almost zero or provide significant capital injections in the meantime will have a chance of re-emerging in the post COVID-19 world.
The document highlights the unique position that the industry is placed in, with uncompleted refunds, live travel credits and existing bookings complicating the process of any graceful business shutdowns.
“Who can I pass these outstanding obligations to, that can be trusted, and at what cost?” the paper asks.
Facing the grim reality, the writer argues, it could involve AFTA receiving Govt funding to create an “Agent of Last Resort” which would take on the management of any outstanding refunds, credits and live bookings, as well as administer grants and training to help re-establish the Australian retail and corporate travel industry once borders open and demand resumes.
The full discussion paper is included from page 8 of TD today.
We welcome further input via feedback@traveldaily.com.au.
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Source: traveldaily