The Ongoing Effects of Covid-19
I know Covid-19 has impacted everyone reading this article, in ways both large and small. The travel industry has been affected even more significantly than it was on 9/11. I know many of the brands and suppliers we use will never be the same.
Just this past week the major airlines implemented a new policy that requires all passengers to wear a mask or they will be denied boarding. Our primary escorted tour company (Globus), as well as our primary river cruise company (Avalon), are having daily meetings trying to find a way to proceed with their trips in a way that allows people to adhere to social distancing guidelines. How do you keep people apart when they are all traveling together on a motorcoach? On a cruiseship?
Our resort partners in the Caribbean have hired infectious disease specialists to help them make certain they are providing safe experiences for their guests. Those maids and grounds keepers that were part of the “invisible” work force are now very much front and center.
The biggest change you, as the consumer, will see, is in the amounts of deposit now required to book a trip. For the past 15 years our fun in the sun vacations only needed around a $150 per person deposit. I booked a $3036 trip to Lt Lucia last week for a honeymoon. The deposit was $2004.
So many travel suppliers lost so much money that they are now going to require a much larger deposit as a desperate measure to increase their cash flow.
Many of the online agencies closed their doors, stopped paying refunds, or turned off their phones. The biggest online agency in the world turned off their phone system. For weeks. Their online booking engine was no help, so their customers were just abandoned. Another (bookit.com) simply closed their doors. The day the outgo exceeded the income they quit. No one is getting a refund, several hundred people were stranded, and they didn’t take down their booking website. So customers continued to book trips, not realizing the company was permanently closed.
Sandals also turned off their phone systems. As Sandals specialists we have an inside agent we call for our bookings, and thankfully they did not turn off her phone. I felt terrible for all of those customers who booked directly with Sandals. Can you imagine the bride who had a destination wedding planned in the middle of this with no one she could call or email?
If you booked a trip and were eligible for a refund it is taking 60-90 days to process, when it previously took 7 business days. It’s exasperating for so many travelers. There are big rewards for customers who could accept letters of credit rather than refunds. Most of our suppliers offered an additional 25% on each booking. So when I rescheduled a $4,000 Hawaiian honeymoon last week, the couple had a $5,000 credit to spend on the new booking.
Going forward customers are expecting amazing price points for future travel. Travel is a supply and demand business, and certainly our fall travel pricing is lower than I’ve seen in years. But, by 2021 people are going to be looking forward to the vacation they missed in 2020. That’s going to increase demand, which will in turn increase pricing. If you plan to travel, try to travel this fall to get the most bang for your buck. If you have to wait until 2021, please book your trip as early as you possibly can for the best pricing.
My agents and I were literally working around the clock for over three weeks, with hour upon hour of hold times, getting our customers safely home (we had three big groups in Europe right when the travel ban was implemented), rebooked and refunded. All of our personally escorted groups for 2020 have been canceled.
Now more than ever, if you are going to travel globally, it is critically important to buy locally. If you are shopping, please support our local businesses. Walmart, Amazon etc. are not only surviving but thriving during this pandemic, your friends in business right down the street are not so lucky.
I know this too shall pass, and luckily I will be able to keep my entire staff throughout this ordeal. All any of us can do is stay safe, support our local businesses, and look forward with hope to a brighter tomorrow. #keepthefaith