Most tour operators have a positive outlook for 2021. While 55% of respondents have a negative outlook for the second half of 2020, only 22% have the same outlook for 2021.
WeTravel has conducted an industry outlook survey of 592 tour operators worldwide to assess the impact of COVID-19. The key outcome is 70% of tour operators reschedule trips to October 2020 and beyond; 56% expect a major revenue decline this year but maintain a positive outlook for 2021.
Most tour operators have the confidence that travel will pick up again in the fall this year. Almost a third of respondents have rescheduled their trips to the period of June-September 2020. Almost 40% will postpone to October-December 2020. The rest plan to delay all their trips to 2021, while closely monitoring the situation.
Tour operators expect a major decline in revenue in 2020. More than half of the companies surveyed expect to see their 2020 revenue decline by at least 50% compared to that of 2019. 10% of companies even predict a >90% revenue decline this year. This number might grow higher as 21% of respondents are still not sure about the impact of COVID-19 on revenue this year.
Tour operators are caught between a rock and a hard place: travelers ask for refunds while operators’ money is tied with their vendors. Almost half of the respondents have managed to give full refunds to their travelers, while 27% are first waiting for refunds from their vendors. However, only 39% of vendors are willing to give full refunds to tour operators, while 11% are not willing to refund at all or even reschedule. Tour operators are trying to resolve the situation by offering travel credits or asking for a longer time horizon to complete refunds.
Most tour operators have a positive outlook for 2021. While 55% of respondents have a negative outlook for the second half of 2020, only 22% have the same outlook for 2021. Almost a third of the companies surveyed have a positive outlook for next year, 26% have a fair outlook, while 21% are still unsure. When asked how long it will take for the industry to recover, 44% believe that it will be 6-12 months.
Tatiana is the news coordinator for TravelDailyNews Media Network (traveldailynews.gr, traveldailynews.com and traveldailynews.asia). Her role includes monitoring the hundreds of news sources of TravelDailyNews Media Network and skimming the most important according to our strategy.
She holds a Bachelor's degree in Communication & Mass Media from Panteion University of Political & Social Studies of Athens and she has been editor and editor-in-chief in various economic magazines and newspapers.
