Further Covid-19 support announced by the government

Chancellor Rishi Sunak has announced further financial support from the government to help businesses and individuals that have been negatively affected by Covid-19.

He introduced the government’s Winter Economy Plan including a new Job Support Scheme to replace the existing furlough scheme, as well as tax cuts and deferrals. The Chancellor also announced an extension to the application deadline for the Coronavirus Business Interruption Loan Scheme (CBILS), the Coronavirus Large Business Interruption Loan Scheme (CLBILS), the Bounce Back Loan Scheme (BBLS) and the Future Fund.

Here are the key points from the announcement:

If you need any help understanding what these changes could mean for your business, please get in touch.

We will update our advice and guidance as more detail is provided on the support announced, please keep an eye on our news & insights page or follow us on LinkedIn for the latest updates.

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The COVID-19 crisis is rapidly evolving and the Government's response and the details of support on offer are continuously changing. We'll be updating our posts regularly to ensure our analysis and advice remains as accurate and useful as possible. To receive the very latest information as we release it follow us on LinkedIn.  If you have any questions in the meantime, please get in touch. 

Trust accounts in the travel sector: TTC comment in The Telegraph

TTC director Martin Alcock spoke to The Telegraph about trust accounts in the travel sector and rumours that the government plan to implement new rules to speed up refunds.

Here is the full article:

Screen grab of an article from The Telegraph on refunding customers in the travel industry

The original article can be found here – https://www.telegraph.co.uk/business/2020/09/19/travel-giants-ringfence-customer-deposits-speed-refunds/.

For information on the advantages and disadvantages of trust accounts, please see here.

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The COVID-19 crisis is rapidly evolving and the Government's response and the details of support on offer are continuously changing. We'll be updating our posts regularly to ensure our analysis and advice remains as accurate and useful as possible. To receive the very latest information as we release it follow us on LinkedIn.  If you have any questions in the meantime, please get in touch. 

BBC interview with TTC about the ongoing Covid-19 crisis

TTC Director Martin spoke to the BBC this morning to discuss how the travel industry is dealing with the Covid-19 crisis. He highlighted the need for a coordinated approach from the government to help travel businesses cope when there is a change in advice. Martin also discussed how confusion over the quarantine measures is negatively impacting the industry.

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The COVID-19 crisis is rapidly evolving and the Government's response and the details of support on offer are continuously changing. We'll be updating our posts regularly to ensure our analysis and advice remains as accurate and useful as possible. To receive the very latest information as we release it follow us on LinkedIn.  If you have any questions in the meantime, please get in touch.

Financial tests for ATOL licences

The Civil Aviation Authority’s (CAA) approach to financial assessments largely depends on the size of the ATOL licence required. As the licence size increases, so does the potential exposure to the Air Travel Trust Fund. Therefore, the CAA requires larger businesses to provide more financial information than smaller ones. This diagram demonstrates the commonly requested information needed by the CAA for September 2020 renewals. It takes into account the additional information required due to Covid-19.

If you need any help applying for an ATOL licence, or have any questions about the process, please get in touch. 

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The COVID-19 crisis is rapidly evolving and the Government's response and the details of support on offer are continuously changing. We'll be updating our posts regularly to ensure our analysis and advice remains as accurate and useful as possible. To receive the very latest information as we release it follow us on LinkedIn.  If you have any questions in the meantime, please get in touch. 

Coronavirus Business Interruption Loan Scheme (CBILS)

Many travel businesses have taken advantage of the Coronavirus Business Interruption Loan Scheme (CBILS) announced by the government in March to support companies that are losing revenue, and seeing their cashflow disrupted, as a result of the COVID-19 outbreak. If you are still considering using the scheme, there isn’t long left to apply. Unless there are any further announcements, the scheme is due to close to new applications on 30 September.

If you have already applied for CBILS but were unsuccessful due to being classed as an ‘undertaking in difficulty’, you may wish to consider reapplying. Previously, ‘undertakings in difficulty’ were unable to access the scheme because of EU rules but this has now changed, and businesses in this category which have fewer than 50 employees and a turnover of less than £9 million can now apply. For more information, please see Gov.uk.

If you are planning on applying, please be aware that lenders may have specific requirements. Below are the loan conditions provided by some participating, non-high street banks. It is not a complete list, so we recommend that you contact your preferred lender directly to understand their requirements, or please get in touch if you need any help.

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The COVID-19 crisis is rapidly evolving and the Government's response and the details of support on offer are continuously changing. We'll be updating our posts regularly to ensure our analysis and advice remains as accurate and useful as possible. To receive the very latest information as we release it follow us on LinkedIn.  If you have any questions in the meantime, please get in touch. 

The impact of Covid-19 on booking patterns and marketing strategies

The Covid-19 pandemic has had a significant impact on the travel industry. In this video, we discuss how customers are looking to travel again and reveal insights into current booking patterns. We also take a look at how travel companies have adapted their marketing to reach new and existing customers.

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The COVID-19 crisis is rapidly evolving and the Government's response and the details of support on offer are continuously changing. We'll be updating our posts regularly to ensure our analysis and advice remains as accurate and useful as possible. To receive the very latest information as we release it follow us on LinkedIn.  If you have any questions in the meantime, please get in touch. 

The travel industry’s W-shaped recovery

There have been many questions surrounding how the travel industry will recover from the coronavirus crisis. In this video, our director Martin discusses the reasons we believe the industry should be planning for a W-shaped recovery for the next few years.

If you would like a copy of the slides or have any questions on what’s covered in the video, please get in touch.

If you enjoyed this post, why not sign-up to our newsletter? Get our latest blog posts, industry updates and exclusive content. Join our mailing list here.

The COVID-19 crisis is rapidly evolving and the Government's response and the details of support on offer are continuously changing. We'll be updating our posts regularly to ensure our analysis and advice remains as accurate and useful as possible. To receive the very latest information as we release it follow us on LinkedIn.  If you have any questions in the meantime, please get in touch. 

Refund Credit Notes – updated guidance from the CAA

The government has confirmed that Refund Credit Notes offered against ATOL protected bookings are financially protected. In this document, we highlight eight key points from the CAA’s updated guidance, including exactly what information you need for your Refund Credit Notes.

The COVID-19 crisis is rapidly evolving and the Government's response and the details of support on offer are continuously changing. We'll be updating our posts regularly to ensure our analysis and advice remains as accurate and useful as possible. To receive the very latest information as we release it follow us on LinkedIn.  If you have any questions in the meantime, please get in touch. 

A bumpy road to recovery for the travel industry post Covid-19

It’s positive to see there are some early signs of recovery for the travel industry after some challenging months due to Covid-19. However, we know it’s not going to be an easy road to bounce back and there’s a bumpy road ahead. We’ve put together some key dates to keep in mind over the next few months, that could impact the recovery.

Key dates for the travel industry

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The COVID-19 crisis is rapidly evolving and the Government's response and the details of support on offer are continuously changing. We'll be updating our posts regularly to ensure our analysis and advice remains as accurate and useful as possible. To receive the very latest information as we release it follow us on LinkedIn.  If you have any questions in the meantime, please get in touch. 

Further changes to the furlough scheme – announced 12 June 2020

The government has issued new guidance outlining what the furlough scheme will look like from 1 July onwards. If you have furloughed employees there are a few things you need to consider. Some of the updated information is complex so we’ve pulled out the key changes to help ensure you’re ready for the new scheme.

We also have further details on the scheme here, if you have furloughed employees we recommend looking at the information on this page too.

Changes to the furlough scheme – announced 29 May 2020

Last week, further details on the furlough scheme were announced. Here’s a rundown of the key points:

        • From 1 August 2020, employers will have to pay National Insurance contributions and pension contributions
        • From 1 September 2020, the government will only reimburse 70% of an employee’s salary (up to a maximum of £2,190). Employers are required to contribute 10%
        • From 1 October 2020, the government will only reimburse 60% of an employee’s salary (up to a maximum of £1,875). Employers are required to contribute 20%

Furlough infographic

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The COVID-19 crisis is rapidly evolving and the Government's response and the details of support on offer are continuously changing. We'll be updating our posts regularly to ensure our analysis and advice remains as accurate and useful as possible. To receive the very latest information as we release it follow us on LinkedIn.  If you have any questions in the meantime, please get in touch. 

The impact of the Covid-19 crisis on your cash flow

Conversations during the Covid-19 pandemic have primarily been about the preservation of cash with a particular focus on reducing cash outflows in the short term, and increasing cash by utilising government assistance such as CBILS or the bounce back loan scheme.

When analysing cash, understandably most people have been focused on the very short term. The consequences of some of these actions are unlikely to be seen this year and with what appears to be some very early signs of borders preparing to open, if you haven’t already you should start to look further ahead.

Cash flow has in the past been inherently positive for most travel businesses and so forecasting hasn’t always been at the forefront for finance teams, but moving forward it should be a regular feature and even with the uncertainty that still exists, it’s important to start to now.

To start your thinking around this, here we’ve highlighted a few areas to consider. 

 

In the news: BBC interview with The Travel Trade Consultancy on the desire to travel in 2020

Martin Alcock spoke to BBC News on 21 May 2020 about how likely it is that people will be able to have a summer holiday in 2020.

The COVID-19 crisis is rapidly evolving and the Government's response and the details of support on offer are continuously changing. We'll be updating our posts regularly to ensure our analysis and advice remains as accurate and useful as possible. To receive the very latest information as we release it follow us on LinkedIn.  If you have any questions in the meantime, please get in touch.

In the news: The Travel Trade Consultancy featured in TTG

TTC Director Martin Alcock spoke to TTG Media about what the industry can expect from M&A activity, post-Covid-19. Here’s the full article, which can also be found on page 12 of TTG, published on 18 May 2020.

Pages 1&2Screen shot of TTG Media article on M&A post-Covid

Pages 3&4 Second screenshot of TTG article looking at M&A post-Covid

The COVID-19 crisis is rapidly evolving and the Government's response and the details of support on offer are continuously changing. We'll be updating our posts regularly to ensure our analysis and advice remains as accurate and useful as possible. To receive the very latest information as we release it follow us on LinkedIn.  If you have any questions in the meantime, please get in touch.