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COVID-19's impact on SE Asian travel agents and how they should adapt to survive
- 1. 12 JUNE 2020 HANNAH PEARSON COVID-19'S IMPACT ON SE ASIAN TRAVEL AGENTS AND HOW THEY SHOULD ADAPT TO SURVIVE
- 2. 1. IMPACT ON SE ASIAN TRAVEL AGENTS
- 3. LIMITED OPPORTUNITIES FOR REVENUE www.pearanderson.com | hello@pearanderson.com
- 4. COUNTRY INBOUND TRAVEL? OUTBOUND TRAVEL? DOMESTIC TRAVEL? Cambodia Indonesia Laos Malaysia Myanmar Philippines Singapore Thailand Vietnam Data correct as of 12 Jun www.pearanderson.com | hello@pearanderson.com
- 5. SQUEEZED ON BOTH SIDES www.pearanderson.com | hello@pearanderson.com
- 6. MALAYSIA
- 7. THAILAND
- 8. VIETNAM
- 9. VARIED FISCAL SUPPORT ACROSS SEA • Exemption of minimum tax payment until July • 20% of salary to be sponsored by the government • Registered tour agencies to be exempted from all taxes in June & July • Moratorium on tax instalment payments from 1 Apr to 31 Dec for tourism companies • Personal income tax relief of RM1,000 for tourism expenses • Wage subsidy of up to RM600 per employee • “Tourism Response and Recovery Program” • PHP 36 billion in soft loans • PHP 500 million for marketing and support for domestic tourism • Displaced employees can claim 5,000-8,000 PHP wage subsidy
- 10. VARIED FISCAL SUPPORT ACROSS SEA • Wage subsidy of 75% of salary up to $4,600SGD/ month until Aug • Property tax rebates and rental waivers • Enhanced training industry grants • STB Phase 2 will fund 70% of marketing costs for inbound travel agents • Bank of Thailand will also allocate 500 billion THB in soft loans to SMEs • Reduce contribution to social security fund • Furloughed workers can claim SSF at 50% of salary • 5,000 THB handout/ month for workers unable to claim SSF • License fees for international and domestic tourism firms reduced by 50% until YE • Government guaranteed credit package of $6.4 billion USD to help tourism businesses with loans
- 11. 1. IMPACT ON SE ASIAN TRAVEL AGENTS ✓ Limited opportunities ✓ Cashflow crisis
- 12. 2. HOW SHOULD TRAVEL AGENTS ADAPT TO SURVIVE?
- 13. MANAGE CASH FLOW TO AVOID BEING BURNT • Flexible cancellation policies • Negotiate with suppliers • Group tours • Sell without airline seats? • Self contract? • Stop creating own group tours altogether? www.pearanderson.com | hello@pearanderson.com
- 14. RE-FOCUS DESTINATIONS • Domestic first • Low-hanging fruit = complicated journeys which can’t just be booked directly online (e.g. Kinabatangan, diving, hiking) • ASEAN next • Deepen relationships with overseas tour operators • Learn what hygiene certifications international tourism boards are putting in place www.pearanderson.com | hello@pearanderson.com
- 15. FORGE PARTNERSHIPS • Tourism board schemes • Sponsorship,“free” marketing • Get talking to private hospitals for subsidised PCR tests www.pearanderson.com | hello@pearanderson.com
- 16. MAKE OPERATIONS MORE EFFICIENT • Digitalise as many functions as possible • Make remote working easier • Effective CRM, sales processes • Ensure precious leads are not lost • Look for low-cost marketing tools • Now is the time for experimentation www.pearanderson.com | hello@pearanderson.com
- 17. GET INFORMED TO COMPETE • OTAs will have information on hygiene procedures of hotels – will you? www.pearanderson.com | hello@pearanderson.com
- 18. 2. HOW SHOULD TRAVEL AGENTS ADAPT TO SURVIVE? ✓ Cashflow management ✓ Partnerships ✓ Destination re-focus
- 19. HANNAH PEARSON COVID-19'S IMPACT ON SE ASIAN TRAVEL AGENTS AND HOW THEY SHOULD ADAPT TO SURVIVE