Who remembers the ” Lost in Space ” TV program? Come on, most of you I am sure.
The theme for this week is about ” warning ” of what is happening with increased regularity in our industry. And how you can significantly decrease the risk of being caught yourself.
As 2020 starts to unfold, I see this pattern building which is both worrying and concerning. At the risk of sounding negative which I am not, I feel it my duty to discuss and show you how to avoid this significant challenge which has cost hundreds of thousands of travellers an enjoyable holiday experience, in the past 12 months.
Last year it was Thomas Cook, Bentours, Tempo Holidays and One Ocean Cruising. Then, last week Excite joined the list of travel company collapses. I also see Trivago featuring prominently on the news for all the wrong reasons. Watch this space as Trivago will find it hard to bounce back.
Most, but not all travellers lost there dream holiday and their money. And of course, their stress levels soared sky-high. All when they were supposed to be excited about relaxing and enjoying new experiences.
So why didn’t all travellers lose their money? I will reveal why, shortly.
Leading Causes Of These Collapses
First, though let’s look at what is one of the leading causes of these collapses. Actually, there are more than one. Firstly there is the obvious reason. They simply ran out of funding due to poor cash flow management.
Another major factor which is not considered by most people is that the owners of these companies had other business interests which sucked cash of what was a good travel business.
Thirdly, the travel industry is undergoing massive market changes thanks to the internet.
These are good and not so good as many businesses simply fail to make the necessary changes quickly enough.
And finally but certainly not least is the economy is not as buoyant as it was. Just look at the empty business premises around Perth and even here in Albany. Unfortunately, I predict several more travel companies will cease operations during 2020.
How To Reduce Your Risk When Booking A Holiday
Now I did promise there is a way you can significantly reduce your risk of a disrupted holiday from business collapse. And that is, book with Travel With Purpose and use a credit card to pay for your holiday. While this won’t stop a travel company from going under it does ensure your precious capital will be safe.
Travel With Purpose does not have the financial skills or capital to review every supplier we recommend, however, because we are part of the Hello World group they do the diligence on our behalf. Freeing us up to do what we do best. Guide you through the holiday creation component of travel.
That was a pretty heavy start to 2020 however, it MUST not be ignored in my opinion. I have the obligation to share with you the good bad and the ugly about travel if I believe it can impact your holiday.
Travel Predictions For 2020
Now I want to close this week with a couple of predictions about travel in 2020. Expect a lot more special deals from all suppliers especially cruise companies. They will try and make the shortfall from your onboard spending. There are some incredible new ships
being built that are transforming the cruise experience.
An example is Viking which this week announced a new Exploration ship due to come in service in 2022. And get this some cruises are already sold out!!! Hard to believe I know however it is a testimony of how well Viking understand what their customers want.
Now it is natural to wait when you see a bargain hoping it will get cheaper.
Travel tends to work the opposite way with the best deals well in advance and then if any inventory is still available it is often offered in anther market (country) to protect the local brand.
I see this changing and causing a lot of confusion in the market. My advice is if you see a deal that is acceptable then be grab it and be happy.
The Best Is Always Left Till Last!
You know the old saying “the best is always left to last” then this is exactly what I am doing.
It is official we are very excited to announce Danielle Hopkins has rejoined Nilla, Kelly and I as she decided not to return to Ireland. Danielle spent 12 months in Ireland working as a specialist cruise agent.
Next week Danielle will give you an update on her adventures.
Enjoy the best Australia day weekend you can. I am playing golf Saturday and Sunday in the Wittenoom Cup. Wish me luck.
PS. I would love it if you respond and tell me what you are looking forward to most from travel in 2020. Would you do that please?