GlobalData says future profitability for travel companies threatened

Published on : Wednesday, April 8, 2020

GlobalData reveals that during the coronavirus-induced existential crisis has led to staff adjustments to stay operational and has put staff commitment under considerable strain.

 

The reputation, return on investment (ROI) and the financial performance of a company will be jeopardize by a de-motivated workforce.

 

Across the sector freezing recruitment, reducing working hours, decreasing pay, furloughing workers and, in some cases, redundancies have been adjustments undertaken by companies. To save costs staffing adjustments have been the most common action undertaken by travel management.

If drastic measures are taken, employee wellbeing should not be forgotten as the ethical standards of a company can reflect on the treatment of the workforce.

 

GlobaData’s Global Q4 2018 Consumer Survey found that 81% of the global traveler community are ‘always’, ‘often’ or ‘somewhat’ influenced by ethics.

Post-COVID-19, employers that have mistreated their workforce in any way may be shunned by the public but also by their own workforce, significantly affecting their operational performance

Johanna Bonhill-Smith, Travel and Tourism Analyst at GlobalData, said that this has now gone beyond freezing recruitment as the number of companies taking drastic measures increases dramatically day-by-day. Larger travel players such as TUI, Hays Travel and even the likes of online travel agents (OTAs) such as Booking.com have had to make substantial staff adjustments in order to save on costs during a time where cash is vital.


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