Weathering the storm that never ends!
Could you weather the storm that never ends?
The unpredictability of tourism in general due to Covid 19 has made it almost impossible to plan any travel for business or leisure. Holidays have had to be cancelled, dates changed, or destinations moved several times for most people who dared to even make such plans. Business trips have had to be postponed, trade shows cancelled, and sales appointments moved online, with the customary handshake seemingly exiled to history. Having worked in tourism for many years the social element of sales trips, trade shows and conferences were legendary, and parties at events such as World Travel Market in London, ITB in Germany and Fitur in Spain will be engraved in people’s memories forever. Along with the hangovers that followed while trying to work on a busy show floor the following mornings. None of that has happened since the Pandemic began in 2020.
Now imagine you work in tourism as I did. Initially told that this ‘thing’ would only last a few short weeks. Then going into a full national lockdown. Jobs lost, no income, no government financial support, no end in sight. Impossible to make any plans. Watching businesses, some which were household names disappearing never to return. Suppliers and customers, many who had become like friends were no longer in your life. It was a dreadful time. However, many major elements of the tourism industry are still in limbo – The Coach Travel Sector being one of them!
Since the start of the Pandemic it has been impossible for coach operators to make plans and honestly believe them plans would ever become reality. Would there be another lockdown? Will testing requirements change? Will hotels, restaurants and theatres be forced to close but travel still permitted? Even as I write, many coach operators are eagerly anticipating the opening of the French border to UK tourists so that skiing holidays to The Alps can return and rescue at least a small part of the winter revenue. Traditionally a baron period for coach operators, the last two winters have been almost impossible for a lot of them. There has been no targeted government support for the industry throughout the Pandemic in England. Holiday brochures have been planned then changed several times before closing your eyes tightly and hoping for the best when placing the order with the printer. Unable to plan what type of work your fleet of vehicles will do. Will you hold out to see if inbound travel returns in the summer and coaches will be back touring the UK with American, Chinese and Australian tourists? Will schools regain confidence to plan trips into Europe? Will you focus on local private hire, keep distances and vehicles closer to home in case of any further lockdowns or last-minute rule changes? Moreover, you also have regulation changes with vast costs involved to navigate. PSVAR and Euro 6 remains a hurdle many hadn’t planned for. How will all of this be achieved and enough cash left in the business to meet financial standing requirements and meet PSVAR and Euro 6 goals?
It is an impossible task, but to weather the storm there is help available through an Asset Finance Broker. A lot of finance companies assisted coach operators during the lockdowns by giving payment holidays on asset finance and by giving access to some of the government lending schemes such as the CBILS scheme and the Recovery Loan Scheme. Brokers assisted hundreds of operators to get this in place and continue to work tirelessly to make things easier for coach operators. It is also possible to get new vehicles into your fleet and structure payments so that they will be low in the winter and higher when revenue is stronger during the summer. The government can not give clarity on when restrictions on travel will be removed and more importantly when Coronavirus will no longer be on every news bulletin forcing confidence in travel down to ground level. An asset finance broker will work with coach companies and finance companies to take the sting out of the financial hurdles which stand in the way of progress. Sales and Lease back or Sale and HP back can be arranged quickly to give a working capital boost to businesses. Short term loans can be arranged quickly, and property projects need not be placed on hold indefinitely. There is help available.
Hopefully the uncertainty wont last much longer and the efforts of the CPT and others to promote coach travel will help people 'get back on board' with confidence.
If you want to stay ahead of the competition then I will be happy to talk through your options. Feel free to contact me on 07807361624 or email [email protected]