Fear of the future of British travel agencies

According to a new report from the Advantage Travel Partnership, 61 percent of travel agents will run out of money later this year.

The travel agency consortium released the results after Britain launched a second blockade effectively banning overseas and outback travel.

The results are clear about how difficult this situation is for the travel agency business and the broader prospects for the tourism industry.

If the general travel ban, quarantine measures and lack of testing persist, another 27% will run out of money in the first half of next year, and 88% of agencies will run out of money before June.

That means – in a somewhat hypothetical situation, only 12 percent of travel agents will be working next summer.

Julia Lo Bue-Said, CEO of the Advantage Travel Partnership, said, “When will the government wake up and see the industry crumble before them?

“These results are very worrying, but unfortunately they lead to many companies in the tourism industry.

“We need a strategy to get out of our government and show how we’re going to move forward.

“Hospitality and retail must ensure they are protected against Covid-19 when it reopens this summer, and travel needs the same thing – we have to have a stable testing system and cut quarantine time to give us time.” chance to survive this crisis. “

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Why has tourist stocks taken a hit today

What happened
Fears of growing coronavirus cases on the market today hit travel inventories such as Booking Holdings (NASDAQ: BKNG), MGM Resorts International (NYSE: MGM) and Marriott International (NASDAQ: MAR).

Over the weekend, new cases of COVID-19 in the US hit a record high of around 80,000 new infections on Friday, and cases in much of Europe continue to hit new highs, threatening large parts of the continent. Several Atlantic nations have begun blocking measures to control the spread. France enforces 9:00. Night time in most countries.

If the weather turns colder, investors appear fearful of another wave of the virus that epidemiologists have been warning about for months.

By 2:20 p.m. EDT, share orders were down 5.7 percent while MGM was down 5.8 percent and Marriott was down 5.8 percent. At the same time, the S&P 500 fell 2.2%.

And what
The three stocks are exposed to the tourism industry in different ways, but are fundamentally dependent on travel for all of their businesses.

Booking Holdings, an online travel agency that also owns Priceline, Kayak, and Rentalcars.com, relies on Europe for most of its business, with Booking.com as the clear market leader. As a result, companies will be hard hit by the extensive blockade in Europe. Cases on the continent fell to minimal levels over the summer, but a second wave could affect results in the fourth quarter, including the holiday season, and in 2021.

Order revenue fell 84% in the second quarter, indicating the severe impact of the first block. As an online travel agent, booking fees are more flexible than other travel companies because most of the costs are related to marketing. It offers an advantage over badly affected sectors such as shipping lines and airlines, but still represents an operating loss of $ 484 million. Even after you’ve eliminated about 85% of your marketing budget.

MGM’s casino operator business is primarily focused on the Las Vegas market with resorts including Bellagio, Mandalay Bay, The Mirage and MGM Grand. And while the number of cases in Nevada is more moderate than some parts of the state, MGM is relying on tourism and business conventions that are likely to suffer longer if cases increase again. TSA data show that air traffic is recovering gradually. Last week the United States had its first day with more than 1 million passengers since March, but that trend could easily be reversed.

Revenues decreased 91% in the second quarter as Vegas casinos were closed for most of the period. However, recently the company focused on online gaming through BetMGM and received a $ 1 billion investment from IAC with at least one account identified. Investors believe the shares are underestimated.

After all, Marriott, the world’s largest hotel company, is also exposed to business travel and tourism, despite the fact that their properties are scattered all over the world. Even though most Marriott properties are franchisees, the company still faces major challenges as franchisee revenue declines.

Revenues fell 72 percent to $ 1.46 billion in the second quarter as employment rates fell. In addition to facing the challenges of COVID-19, Marriott is also at risk of disrupting home-sharing services such as Airbnb, which now has more rental space than Marriott and will be privately listed for an IPO in August, freeing up more capital for expansion. stand up. . Airbnb also appears to have weathered the pandemic better than the hotel industry, as they are taking advantage of the flexibility of its model.

What now
All three stocks have fallen since the start of the year, but not as much as you might think. As the chart below shows, reservations are 15% while Marriott and MGM have lost about a third of their value.

It seems that this graph shows that if the next wave of the virus is worse than expected and creates a lockdown effect, this stock could fall further. We’ll learn more as the company reports earnings in the coming weeks.

MGM is in first place with the result on Thursday. Analysts expect sales to fall 63% to USD 1.23 billion and a loss of USD 1.01 per share. Even though the numbers both improved from the second quarter, projections still show MGM is in a deep hole.

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Travel restrictions are severely threatening the tourism industry

The Oireachtas Tourism Committee has heard about the damaging effects of travel restrictions caused by the tourism industry’s use of Covid-19.

Industry officials said they were talking about a “perfect storm” that has left a huge vacuum in the Irish economy.

Ruth Andrews, Chair of the Tourism Rehabilitation Task Force, said: “Tourism is the main local labor-intensive sector in Ireland and generates very significant export and tax revenues.

‘It is embedded in Ireland’s cultural fabric and social life and is of great importance to the regional economy.

“Because tourism is so integrated into the economy and so diverse and composed mostly of SMEs, it suffers from a lack of visibility and recognition as an internationally traded service.

“Covid is creating an ideal storm for tourism.

“The need to trade in an environment requiring limited social distancing and gatherings, and the fact that travel restrictions are causing overseas tourism to almost disappear, threatens the survival of a large part of Ireland’s tourism ecosystem.”

Due to strict travel restrictions, very few international travelers have visited Ireland since March.

“We are in a very unsafe place. Many companies will struggle to survive.”

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Top 10 travel destinations in the world

  1. Petra, Jordan

This terrestrial Atlantis, an ancient hardstone desert city, was once home to the Nabataeans, an AD civilization that specialized in stone temples and monumental tombs. Guests arrive through a narrow, dim, 1.2 km long canyon called the Siq, which suddenly opens to reveal the enormous Khazneh, a 40-meter-high treasury perched on top of a pillar. The rocks are attractive, the scale is impressive, and film fans can see many locations from Indiana Jones 3.

  1. Galapagos Islands, Ecuador

Owned by Ecuador but cooped up in the East Pacific, the islands that inspired Charles Darwin are as unique as ever. The so-called “Evolution Laboratory” where iguanas still bask on the jagged rocky beaches, sharks and turtles are still present at every session, and the famous Galapagos turtles still fight among the island’s grassy scrub. The ecosystem is fragile and tourism is tightly controlled, which makes it even more attractive.

  1. Uluru-Kata Tuta National Park, Australia

Deep in the reds of Australia, the monolith, formerly known as Ayer’s Rock, rises above the desert, surrounded by an endless sea of ​​sand. The rock was permanently closed for climbing last year after years of campaigning by Anangu residents who believe that the spirits of their ancestors were found inside the rock. Perhaps the rock’s most prominent feature is that two thirds of it is mostly underground.

  1. Delta Okavango, Botswana

Uluru and Petra are top of the list, but we will assume you are less familiar with the fourth option – the swamps in Botswana on the Okavango River. This stunning desert, swollen every year by the flood waters of the Angolan mountains, is one of the world’s most underrated safaris that you can enjoy from the prow of a motorboat or from an engraved canoe. Lions, rhinos, elephants, zebras and buffalo roam the endless delta islands, while local leopards have adapted to their habitats by learning to hunt giant catfish. Visits are strictly regulated to protect flora and fauna. Book in advance.

  1. Yellowstone National Park, USA

A center of geothermal activity in three states and 8,991 square kilometers, Yellowstone was designated the world’s first national park in 1872 and remains one of its most impressive. Attacking all the senses, the smell of sulfur filled the nostrils and a bubbling gust of geyser filled the air. The wildlife here is large, healthy, and mostly brown – from crocheted buffalo to elk, clumsy grizzly bears to wandering wolves.

  1. Lake Bled, Slovenia

This original postcard is the only European entry to break into the top 10. It has a castle on one bank, the president’s house on the other, and a pretty little white brick church on an island in between. A constant stream of tourists can cross the 6 km long coast, ride a gondola or take a leisurely swim, surrounded by pine trees and the peaks of the Slovenian Alps. Everyone will enjoy the panoramic view twice – once with the lake view and once on the neat mirror surface.

  1. Iguazu Falls, Argentina-Brazil

You’ve heard of Angel and Niagara Falls, but maybe you’ve never come across this giant waterfall on the Argentina-Brazil border. As the largest waterfall system in the world, you can hear the thunder floods long before you see it and a thin mist of moisture fills the air. It is not easy to get to, but fearless travelers will be rewarded with howling monkeys, hoarse parrots, and wildly uncontrollable forests.

  1. Angkor Temple, Cambodia

Angkor Wat, the crown jewel in a series of temples and shrines with more than 1,000 inhabitants, has a notorious reputation for having a large moat that leads to a 55-meter central tower surrounded by lush Cambodian jungle on all sides. obtained. Most guides recommend visiting at sunrise, as morning light falls over the complex, illuminating the intricate carvings and reliefs with bright orange light.

  1. Salar de Uyuni, Bolivia

Part natural wonder, part optical illusion, part perfect plane. The crystal-clear surface of these Bolivian salt flats looks like a post-apocalyptic desert crack during the dry season, unlike anything else in Mad Max. After the rain, a thin layer of water turns the apartment into a perfect glass mirror that blends salt and sky into the illusion of a cloudy blue. Take note of where the horizon is prior to your visit as you may not be able to see it while you’re there.

  1. Annapurna Circuit, Nepal

If you’re looking for a relaxing beach getaway, you’ve come to the wrong place – the Annapurna Circuit is a hard work destination. Epic transitions around Nepal’s Himalayas – from rice fields at the foot of mountains to snow-capped Thorong La Pass – climate change from tropical to arctic and culture from Hinduism to Tibet. However, their grafts feature some of the greatest views in the world and mountain huts serving hot tea which tastes better because it’s hard to come by.

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Thomas Cook to be just online

Thomas Cook’s tourism brand will continue it after last year’s spectacular collapse of the company that cost thousands of jobs.
However, new companies will only go online without the planes, hotels and shops of the old business.
The owner of the brand, Fosun China, is looking to revive Britain’s oldest travel company in a matter of weeks to mark the start of next season’s booking season.
However, the exact timing will depend on when Thomas Cooks receives a work license.
The 179-year-old company collapsed under a pile of debt, causing the largest peaceful repatriation to date, bringing home 150,000 British tourists from abroad.
Fosun is already a major shareholder in the business, paying £ 11 million last November for Thomas Cook’s brand, website and social media accounts.
The Thomas Cook website is very limited although it does not sell holidays.
The company needs a license for Atoll from the regulatory agency, civil aviation authority. There are reports that can be given in a few days.
Fosun, who owns Club Med Resorts, declined to comment.
What’s wrong with Thomas Cook?
Hays Travel was “devastated” by nearly 900 job cuts
UK travel restrictions: which countries are on the list?
A source said Thomas Cook “is eager to work until Christmas. Then people’s minds turn to summer vacation and there will likely be a huge delay in demand due to this year’s coronavirus elimination.”
The timing of Thomas Cook’s relaunch is also subject to additional restrictions and quarantine rules for overseas travel due to the coronavirus pandemic.
Spain is Thomas Cook’s favorite travel destination.
The tourism and tourism industries have been hit badly by the fall in trade in the coronavirus. British company Hays Travel, which buys most of Thomas Cook’s street shops and employs many former employees, has cut nearly 900 jobs.
And Tui, Thomas Cook’s biggest rival before the collapse, received EUR 1.2 billion in aid from the federal government.

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