ASTA Sounds the Alarm over the Future of U.S. Travel Agencies

Caribbean News…
06 August 2020 10:58pm
Zane Kirby

American Society of Travel Advisors president and CEO Zane Kerby is sounding the alarm over the need for more federal relief for the travel industry as Congress and the White House struggle to come to an agreement over the next wave of coronavirus relief.

According to Travel Pulse, Kerby released a statement highlighting the dire circumstances for travel agencies:

“All businesses in the country have been impacted by COVID-19 in one way or another, but few sectors have been as hard hit, or face a longer road to recovery, than the travel agency industry. With more than 90 percent of our members reporting revenue down 75 percent or more versus 2019, layoffs and furloughs spread wide throughout the industry and a projected three-to-12 month lag time in business income returning after bookings resume, It cannot be overstated–these are incredibly difficult times for travel agencies across the country.

It’s hard to imagine, but the situation would have been even worse without the relief programs provided by the CARES Act. Without additional relief from Congress and the federal government, these negative trends will continue, and widespread agency closures will become the norm. An astonishing 71.3 percent of travel advisors will be out of business in six months or less without additional relief. This would leave travel suppliers’ main distribution channel crippled, and the traveling public left without access to the critical services that travel planners provide.

“We view this outcome as unacceptable, and call on Congress to include in the next COVID-19 relief bill provisions to prevent it, including the inclusion of travel agencies as eligible recipients in any airline payroll support funding, the RESTART Act to provide long-term forgivable loans to the hardest-hit businesses and an extension at least through the end of the year of expanded unemployment benefits for laid-off agency employees and independent contractors. As the only trade association advocating for travel advisors, we are spending every waking hour making this case to Congress, and encourage anyone who hasn’t yet participated in our grassroots campaign to do so today.”

In a recent member survey conducted between August 4-5, ASTA found that the impact on agencies has been devastating.

 

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