Tour operators belonging to the National Tour Association
have refunded close to a billion dollars to customers for Covid-19-related
cancellations, according to an NTA survey.
The association also reports that 43% of tour operators and
70% of tour suppliers have furloughed or laid off workers because of the global
travel shutdown.
The member survey, completed April 3, revealed that tour
operators canceled more than 59,000 trips affecting nearly 1.8
million travelers. The bulk of cancellations were for travel in March, April
and May, but tour operators said they were also seeing cancellations as far out
as 2021.
On average, tour operators said they had refunded $1.8
million, which means NTA members alone had sent back close to a billion
dollars, the group said.
Each tour suppliers, meantime, reported refunding customers
an average of $334,000.
“This survey reflects the depth of damage done to our
industry by this virus: people furloughed and positions terminated, tours
canceled, businesses closed and refunds issued,” said NTA president Catherine
Prather. “I hear real concern from our members due to the uncertainty and lack
of control in the situation, yet I also continue to see their resiliency as
they look to what they can control and how they can move through the crisis.”
The good news: 80% of tour operators and tour suppliers are
seeking help under the Cares Act federal stimulus package.
NTA said its members are applying for both Economic Injury
Disaster loans and assistance under the new Payroll Protection Program.
Meanwhile, only about half of destination marketing
organizations plan to apply for help, in part because many don’t qualify. Many
DMOs are 501c6 organizations, which are not eligible. Other nonprofits are
eligible, such as 501c3s.
NTA said it hopes Congress makes a change to include 501c6s
when lawmakers approve a new round of funding for the Payroll Protection
Program.
The NTA survey shows 43% of responding tour operators had
furloughed or laid off employees and 31% had reduced staff hours. Seventy
percent of tour suppliers had furloughed or laid off employees.
DMOs were faring slightly better, with 59% saying they had
reduced staff positions or hours.
Ninety-three percent of DMOs said they had frozen or reduced
their budgets, as had 88% of tour operators and 74% of suppliers.
The vast majority of DMOs and tour companies also reported
remaining open for business, with staff working remotely. At least half of
responding tour suppliers said they were temporarily closed, with others
operating on reduced hours or having employees work from home.