Travel Leaders Group is seeking immediate assistance for the tens of thousands of travel agency businesses around the country in danger of shutting down due to the coronavirus pandemic.
"Without the survival of this essential element of the distribution channel, a travel industry recovery would be next to impossible," the company said.
Travel Leaders Group CEO J.D. O'Hara sent the urgent request to President Trump, the Treasury Secretary and House and Senate leadership asking for a relief package for travel agencies, many of which are small businesses. This includes cash-flow replacement grants of $10 billion and no-interest loans or loan guarantees of at least $20 billion in order to pay workers, benefits, creditors and various other assistance.
With more than 4,000 employees and a U.S. network of more than 50,000 travel advisors, Travel Leaders Group's collection of businesses account for approximately $20 billion in annual travel sales.
Without immediate intervention, travel agencies and travel management companies that support millions of consumers and corporations are in danger of a broad failure, Travel Leaders Group said. It estimates that, through mid-March, transactions have declined by 60-90 percent and are worsening as more countries close borders.
It is a general misconception that everyone books their own travel directly with travel suppliers and through online travel websites. In 2019, travel agencies sold more than $76.5 billion in airline tickets covering more than 302 million passenger trips. Travel agencies sell over two-thirds of cruises and 68 percent of tours, according to research consultancy Phocuswright. There were nearly 13 million annual cruise passengers from U.S. ports in 2018.
"The interconnected travel industry is in serious peril if all of its elements are not included in a relief package. A workable package must include travel agencies and travel management companies," O'Hara stated.
"Travel advisors have been a lifeline for business and leisure travelers who have found themselves stranded as flights are cancelled and borders are closed, helping them find a way home," O'Hara noted outside of the letter. "Our people have been working around the clock to assist travelers with rebookings and cancellations, while navigating through the ever-changing policies and conditions. They have been caring for their clients, while cutting back on expenses and trying to manage cash flow to save their businesses."
For the latest travel news, updates and deals, subscribe to the daily TravelPulse newsletter.
Topics From This Article to Explore
