WIILEMSTAD--The coronavirus has also struck tourism. The hospitality industry and aviation sector are being hit hard, as more and more holidaymakers decide to postpone their trip out of fear and/or necessity.
Dutch travel organisation Corendon currently has 40 per cent fewer bookings than normal during this period, Chief Executive Officer (CEO) Atilay Uslu told ING Business Boost. But he is looking at another situation as well.
In addition to the sharp drop in vacations – now about 1,000 bookings per day – Uslu and Corendon have a different challenge: they will open a new hotel on Curaçao in early April for which suppliers from various countries still have to deliver items. The new all-inclusive property is to directly employ 600 persons, but everything must be complete for the opening “and we will, of course, take care of that,” said Uslu.
He is also focused on what happens after the coronavirus. “Certainly; if everything gets going again, we must also be able to cope with that.”
All the current cancellations can lead to a “last-minute boom” once the threat is no longer acute, with everyone booking at the same time. Research from travel website Weflycheap.nl indicated that more than 84 per cent of the travellers who postponed their trip will still go on holiday as soon as the coronavirus crisis is over.
Especially to Italy and the Canary Islands travel has completely collapsed, Dutch travel agent association ANVR told the Algemeem Dagblad (AD) newspaper. “People wait with bookings for the May or summer vacation. They first want to see how the coronavirus develops,” said spokeswoman Mirjam Dresmé.
The negative travel advice issued by the Ministry of Foreign Affairs in The Hague to several areas in northern Italy is also financially affecting various travel organisations. This means they must cancel or rebook trips to destinations for which a “code red” has been issued, free of charge and bear the cost. “There is no reserve or insurance for that. That is simply business risk,” explained Dresmé.
The free cancellation or rebooking only applies to trips that are planned for the short term, not to those that would depart in a few weeks or months from now. “We are keeping a close eye on developments. The situation can change every day.”
ANVR does not dare to say how much damage the coronavirus has caused the travel industry to date. None of the travel organisations are in financial difficulties.
Several employees did, however, apply for a reduction in working time. Many more would be considering submitting a similar request.
In the meantime, various travel companies have already taken austerity measures due to the current decline in sales.
