How to Handle Economic Adversity in the Travel Industry

AGi DMC

T

he world is all set for an economic crisis because of the Covid -19 pandemic which has affected millions worldwide. But what does that mean for the travel industry? The travel company is totally dependent on the ability of people to be able to travel and even though you may think that traveling is just for the sake of fun, you will be surprised to know that it is also a major contributor to the world’s economy.

The sector is a major contributor to the global GDP. There are around 250 million jobs that are offered by the travel industry. And the industry has a lot of growth potential too.

Disasters like the pandemic have a lot of impact on this industry. The first thing that people do when there is an economic or security shock is to cancel their trip plans.

All these show that the travel industry is indeed resilient. However here are ways to survive this adversity.

Take measures to deal with the economic difficulty impacting the travel industry


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Travel and tourism is among the first industries that feel the brunt of the economic activity so if you have been experiencing a drop in inquiries and an increase in cancellations then trust me that it is inevitable.

Use this time to build your relationship with your suppliers and strengthen your business relationship. As per research the business relationships of companies that are resilient are able to bounce back better post the crisis.

The bookings are going to increase once the crisis passes. So take measures to prepare your business as a tour operator for the same. You have also spent a lot of time developing your existing customer base. Do keep in touch with them and make them look forward to a fantastic tailor made tour in the future.

Customised travel experience helps to increase loyalty. Travel today has become easily accessible to all, thanks to the internet and this has also opened up many choices. To stand apart from the other travel agency businesses, it is important to be able to offer a seamless travel experience to your clients and also customise their travel plan as much as possible.

Travel restrictions and warnings are here to stay. To win your customers’ trust, ensure that you have a flexible cancellation policy. People may want to postpone or to cancel their vacations in the case of any emergency so make sure that you have some relaxed policies which will make the customers to book through you as they are assured that their travel bookings through you are risk free. This will not just let them to book with you in the future but they will also become your repeat clients.

Today it has become more important than ever to be able to provide an exceptional travel offering


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The coronavirus pandemic has brought a global economic recession along with it and thus it is not surprising that the tourism industry is getting ready to embrace this decline in bookings and see an increase in cancellations. However, it has been seen in the past too that customer confidence does surge after a crisis. With a vaccine for the pandemic on the way it is reasonable to expect that tourism will bounce back sometimes in the future, if not soon. Use this time to build client confidence and work on your marketing strategies so that you are well prepared when the surge in the travel industry takes off.