Because of the coronavirus pandemic, people around the world are encouraged or required to remain at home except for essential errands. This means that many small businesses, including those in the travel industry, are facing difficult situations. Even though they are essential for the economy of many countries, they are deemed non-essential and forced closed. In the UK alone, small businesses represent almost 50% of the private sector, employing more than 20 million workers. Keeping that in mind, it is important for travel businesses to adapt during the coronavirus pandemic if they, and our economy, are to make a comeback.
Here are some ways that travel business owners can protect their businesses during the coronavirus pandemic and be prepared for the time when we can open back up again:
Focus On Cashflow- maintaining a steady cashflow is important for any travel business. Smaller travel industry businesses are particularly vulnerable in this situation, especially if they can’t get enough funding to match their losses. With the average small business only able to last less than five years in a good economy, it is even more crucial to stay afloat now. If your travel company is struggling, contact your lender, mortgage company and the local government and ask about any COVID-19 aid programmes that are available for small businesses. You worked hard to earn your ATOL Licence and become an ATOL Consultant, you don’t want to lose your business now.
Secure Access To Capital- although many travel related businesses have postponed future expansions or business dealings during the coronavirus pandemic, they still need capital. Many of these businesses have building leases, mortgages and other short-term, high-interest debt obligations to cover. Having enough capital to cover these debts will allow your travel business to remain sustainable until you are able to reopen.
Approach Local Policy Makers- in many countries, struggling or failing small businesses are able to apply for emergency funding. Small businesses need emergency stimulus funding and only policy makers can provide that, so be sure to reach out to your local policy makers and ask about any stimulus schemes that might be available for travel related businesses. Those with an IATA Consultant or ABTA Consultant should be able to apply for emergency funding first.
Contact LI Advisors
To learn how you can get your ATOL, ABTA and IATA certifications, contact LI Advisors and speak with an expert in UK travel regulations today.
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