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Home / Hawkes Bay Today

Travel industry hit hard during lockdown

Napier Courier
22 Apr, 2020 01:20 AM4 mins to read

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The Jennings bubble working from home is (from left) Ryan, Riley, Stephen, Gail and Tyler.

The Jennings bubble working from home is (from left) Ryan, Riley, Stephen, Gail and Tyler.

With accommodation bookings cancelled, flights refunded and borders closed, the travel industry looks to be in freefall. But You Travel Napier boss Stephen Jennings remains upbeat in the face of the Covid-19 crisis, which he says has hit his industry the hardest.

"New Zealand is very good at getting over things quickly. As a travel agent we've had to deal with bombings, Sars, volcanic eruptions, earthquakes and tsunamis.

Over time people won't be able to wait to get out," Stephen says.

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But for now it's mop-up time, with Stephen and his tight-knit You Travel team working hard to sort out clients' travel packages.

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"At the moment we are 'dismantling' people's holidays — cancelling, advising clients of refunds, managing and getting their money back."

Stephen says the first indicator of the crisis beginning to unfold was when reports from China began hitting the media.

The next ominous sign was when postponements and cancellations of conferences in Europe and Asia began. His team was receiving constant updates and information from airlines, MFAT (Ministry of Foreign Affairs and Trade) and WHO (World Health Organisation), as the borders were closing and restrictions were being put in place.

"It started to get real for us. We weren't freaking — we were trying to keep clients calm and encouraging them not to make irrational decisions. Some reacted and cancelled too soon, so missed out on refunds."

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He says once the crisis really started to take hold, the team looked at their files and
advised clients which way to go forward.

"We need to look after our clients' mental and financial wellbeing — we always have their best interests at heart."

The biggest frustration has been each organisation working differently.

"At one point we were having airlines changing their Covid-19 policies several times in a day. We would tell the client they would be getting a refund, later in the day that would change to a credit."

However, Stephen acknowledges New Zealand was well-placed climate-wise when this crisis hit.

"February, March and April are not big months to be going overseas — it's winter in Europe. From that perspective there are not as many Kiwis as there would be in June, July and August."

Having said that, Stephen says the travel industry is hit doubly hard, with no new
bookings in the foreseeable future and having to wear the brunt of refunding clients' money for cancelled bookings.

"We're quite possibly going to be looking at negative income for a few months."

He says recovery in New Zealand will be interesting as we're heading into winter: "They don't call it the low season for no reason."

He believes everyone will start to compete for their share of the travel dollar.

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"Hawke's Bay will have to compete fiercely with other regions to get people to come here. One of our advantages is our climate and most of our attractions go all year — our wineries and Art Deco tours are still operating — we're placed quite well."

He says no matter how much planning is done, the travel industry relies on Governments' decisions on when borders will open.

"For the domestic market we may start with a single bubble with Australia, then the Pacific Islands and then people will want to go further afield."

Stephen believes all the way through this crisis, people are starting to see the value of booking their holidays through an agent.

"We've had so many positive comments about clients having been offered options they didn't know they had. Others may be really, really struggling. The value of the travel industry has never been more appreciated than it is right now."

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