ABTA Travel Matters wind down workshop

1. ABTA TRAVEL MATTERS
WIND DOWN
WORKSHOP
June 2021

2. martin@thettc.co.uk
Martin Alcock
sarah@thettc.co.uk
Sarah Winship
simon@thettc.co.uk
Simon Brodie
jade@thettc.co.uk
Jade Stutely
TODAY’S PRESENTERS

4. CHALLENGE #1
VISIBILITY

5. Source: Barclaycard spending report, 10 Jun 2021
CONSUMER FUNDAMENTALS - SPENDING

6. CONSUMER FUNDAMENTALS - UNEMPLOYMENT
Source: ONS employment stats, Jun 2021

7. THE RISE AND FALL OF PORTUGAL
Source: Google Destination Insights Tool

8. …BUT EX-UK TRAVEL SEARCH IS STILL FLAT
Source: Google Destination Insights Tool

9. …AND UK IS LAGGING BEHIND THE EU
Source: Citibank research, Cirium, FlightAware

10. “Our updated base case is that 21.5m passengers are forecasted to
travel through Heathrow in 2021, representing a 2.7% decline
compared to 2020 but a dramatic 73.4% decline vs. 2019.”
Source: Heathrow Airport investor announcement, June 2021

11. CHALLENGE #2
STAKEHOLDER
MANAGEMENT

12. ATOL – ADDITIONAL INFO

13. ATOL – NEW AND IMPROVED

14. Consultation closes 31 July 2021
Consultation document can be found at:
https://consultations.caa.co.uk/cmg/atol-reform/

15. IATA CHANGES

16. CHALLENGE #3
TRUST & ESCROW
ACCOUNTS

17. Trust accounts - the basics
Bank account A trustee Trust deed Beneficiaries

18. Trust a/c
Typical ATOL trust working
Booking Supplier payment Departure
Balance due
Eg. £250
Credit/debit
X
Credit/debit
X
Eg. £750
Return
Current a/c
Eg. £200
Eg. £200
X
Eg. £550
X
Eg. £800
1
2
3
4

19. Escrow a/c
Typical ATOL escrow working
Current a/c
Credit/debit
Weekly calculation of
total aggregate of
gross ATOL client
money held:
If Escrow a/c balance is
more than 70% trustee
can release cash down
to 70%
If Escrow a/c balance is
less than 70%, company
must top up the account
to 70%

20. CHALLENGE #4
RAISING
FINANCE

21. €1.8bn of loans and
equity
€400m convertible
bonds
£65 million equity and
£75m banking facilities.
> $4bn convertible
bonds
£1.2 bn bonds and
£300m sale and
leaseback
£1bn from a range of
funding sources
Injection of growth
capital from private
equity firm Certares.
Crowdfunding of
£760k
Much Better Adventures
crowdfunding £1.3
million from 964
investors.
Raised £1.2 m from high-net
worth individuals and travel
executives
£4.25m refinancing £1.5m debt funding
Injection of growth
capital from Genairgy

22. FUNDING OPTIONS
Friends and
family
Crowdfunding
platforms
Existing
customers
Banks and other
lenders
High Net Worth and
private investors
Private equity
Stock market listing

23. martin@thettc.co.uk
Martin Alcock
sarah@thettc.co.uk
Sarah Winship
simon@thettc.co.uk
Simon Brodie
jade@thettc.co.uk
Jade Stutely
TODAY’S PRESENTERS
www.thettc.co.uk

24. THE TRAVEL TRADE CONSULTANCY
www.thettc.co.uk