TNW: Survey – At least 50% of retail agencies will close

Last updated on

Half of all travel agencies in South Africa don’t have the cashflow to survive beyond July if the current travel ban continues, according to an Asata survey.

Ceo Otto de Vries says 50% of 132 travel agencies surveyed at the beginning of May said they would have to close within three months if the travel lockdown persisted, and 35% indicated they would have to do so within six months. He says the sample is representative of what is happening in the industry at large.

The survey tallies with opinions among industry leaders (who asked not to be named) that up to 60% of agencies are at risk. Otto believes ITCs, franchisees and businesses that drive high volumes and low margins are particularly under pressure.

“It really depends on how well businesses have managed the crisis at an early stage by conserving cash, mitigating risks around customer demands for refunds, managing receipts from suppliers and customers, rightsizing their staff and minimising all other costs to sustain the business as long as possible. Those that are able to conserve cash and mitigate costs are the ones who are going to be best positioned to survive through this,” says Otto.

Click here to read the full article.

The impact of COVID-19 on the travel industry is unprecedented and unpredictable. The nature of the content that is being shared on the ASATA coronavirus microsite is therefore constantly changing. Please check the date of the post to ascertain its recency.
Related News

Share: