Remember when we were all afraid of the year 2000 and the Y2K bug? Those were the days.
After a harrowing 2020, travel professionals took the following year to pick up the pieces; it was a time filled with difficult decisions just to stay afloat, including rethinking business strategies, closing in-person offices, and restructuring staffing. After the challenges of 2020 and 2021, members believe the industry will be able to catch its breath and move forward this year
While NTA’s 2021 Year-end Business Survey results had an overall positive vibe, here’s an important insight: Half of responding tour operators expect to close out 2022 behind their income levels for 2019, with 23% of sellers expecting to finish behind. Many operators (71%) plan to alter their business models to accommodate uncertainties. And sellers cited a list of contributing factors that will change their day-to-day operations.
Courier reached out to NTA members and asked them specifically about changes as well as silver linings. Here’s what they had to say:
What changes are you making within your own business model? What are you keeping the same?
Kaitlyn Dunneback, Witte Travel & Tours: We are keeping our business model the same. Our business model was working perfectly up until 2020, so we are staying the course and plan to be back at pre-COVID levels by 2023.
Philip Sheldon, Hanns Ebensten Travel: We have added a special newsletter for every tour, spelling out COVID-19 protocols for each country we visit—and for returning home. This includes arranging for pre-return tests meeting the current U.S. requirements (now one day instead of three). Clients then pay the local provider directly.
We are preparing to close our physical office and have all staff work remotely. They can then decide where they want to live. One staff member lives in Spain, so he can answer calls when U.S.-based staff members are sleeping.
With an ongoing risk of variants, we will keep our staffing at about 50% of pre-COVID levels.
Jerry Varner, Making Memories Tours: We are not making any major changes to our business model.
We are being much more thorough in our itineraries concerning breaks, lunch, and dinner options while on tour, due to the staffing shortages.
Most buyers (76%) listed COVID and health concerns as a major factor for business, with a significant number also listing the challenge in finding suppliers that serve the group market (52%), and increased prices (51%). 37% cited changes in consumer behavior and interests. How have you been navigating the changes brought on by these factors within your own business? Are there any other factors making a notable impact on your business?
Kaitlyn Dunneback: Fear of COVID has impacted our business more than COVID itself. Once the fear subsides, we are expecting a lot of pent-up demand and to be very busy in the second half of 2022.
Philip Sheldon: We offer tours to many remote areas around the world. We may need to cancel some tours since flights are already sold out many months in advance. These include a trip to Easter Island in June, and to Ushuaia, Argentina, for an Antarctica cruise this month. We would normally expect airlines to add flights, but this may be impossible with shortages of both staff and aircraft.
The typical booking window is far shorter than in 2019. Especially for destinations such as Israel, Australia, and Japan that have been closed to all visitors, clients want to defer deposits until the country re-opens. They are holding on to their money instead of risking another cancellation and having to ask for a refund or credit.
Jerry Varner: We do have concerns over COVID for (this) year, but at this point, we have chosen to “wait and see” and respond to the situation as it evolves, as opposed to assuming the worst. People are ready to get back to traveling in the Midwest, and we are eager to serve them.
What are some things that have kept you going during these troubling times?
Kaitlyn Dunneback: The strong bond between us and our suppliers has kept us going. We are all in the same boat and have all worked tirelessly together to cancel and postpone numerous tours. Now that groups are traveling again, our bond is even stronger. We are all excited for the comeback.
Philip Sheldon: My partner and I raise rabbits. After a long day of explaining to people why we can’t offer their tour, it’s nice to return home. My rabbits are always excited to see me (or at least the food I bring them).
I have also valued my professional friendships, especially the NTA Owners Network. During this challenging time, we have taken turns being mentors to each other. My company has benefited from loans, grants, and tax credits that I would not have been aware of without information from NTA and from my peers.
Jerry Varner: My faith and my “farmer optimism.” When farming and ranching, you always have to believe next year will be better, and three times out of 10, it usually is.
What are your silver linings?
Kaitlyn Dunneback: We have 62 tours on the books for this year, and we anticipate almost all of them traveling.
Philip Sheldon: After COVID shut everything down, we evaluated every expense and made cuts that will never return. This will make our company healthier in the long term.
Jerry Varner: There truly is a pent-up demand for traveling in our part of the world. Bookings are far and above anything we have done in the past.
What will be your main focus throughout 2022 and moving into 2023?
Kaitlyn Dunneback: Our main focus will be to continue doing what we do best, and that is giving our clients the best possible tour within the confines of the budget. We’ll focus on why we do what we do, and on our passion for helping clients travel.
Philip Sheldon: Working with clients to apply numerous credits to 2022 and 2023 trips, then working with our worldwide suppliers to make sure those trips happen!
Jerry Varner: Providing tours that people will want to go on and implementing them as close to perfection as we can.
