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Ken Lucci of Driving Transactions
Industry consultant and Chauffeur Driven contributor Ken Lucci of Driving Transactions hosted a webinar on Tuesday, October 20, entitled From Crisis to Recovery: Mapping Out the Road Back. Sponsored by FASTTRAK, the Zoom meeting offered strategies to help operators restart and rebuild your passenger transportation business. The hour-long session was attended from dozens of operators from around the country, and featured guest speakers Eddie McCoy of FASTTRAK and Edward Kaye of Schickler Kaye.
Lucci opened the meeting by welcoming McCoy, who discussed the development and features of FASTTRAK’s new URL-based Envision software package. Next, Lucci gave an overview of Driving Transactions’ valuation and consultation services, and provided a brief outlook of what the luxury ground transportation is facing in the near future.
With many banks and lenders hesitant to grant borrowers a third round of deferments, Kaye provided negotiation strategies and general financial advice for operators struggling during the pandemic. Financial forecasting and creating a clear “story” are essential for dealing with lenders. With the used commercial vehicle market at a low, banks are hesitant to reclaim assets, so providing an honest and reasonable outlook for the future is likely to help when negotiating terms.
On October 29, Lucci and FASTTRAK are hosting another free webinar featuring Simon Curtis of Curtis Gabriel. Topics will include How to Create Revenue Pivots, Why Choose Social Media & It’s Versatility, Maintaining Your Presence, and Growth Strategies Coming Out of COVID. To attend, email terrie.lane@curtisgabriel.com for Zoom credentials.
[10.27.20]
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The COVID RELIEF NOW Coalition, representing major public and private sector groups including the U.S. Travel Association, launched a recent digital advertising campaign urging policymakers to quickly approve a new COVID-19 relief package that addresses the needs of businesses and workers impacted by the pandemic.
The ads highlight the need for additional relief, noting the widespread business closures, layoffs, and precipitous decline in state and local revenues facing the American economy. Congress passed the $2.2T CARES Act at the end of March, which provided the one-time Paycheck Protection Program, but subsequent sweeping relief packages have been marred by politics. Several bills with wildly disparate price tags have been proposed in both chambers but have failed to advance, leaving businesses in the travel and tourism sectors without critical aid to bridge the pandemic. With COVID cases again rising around the world, prompting additional restrictions, the need is more important than ever.
The coalition continues to expand, with current membership just shy of 300 different public and private sector organizations—emphasizing the widespread demand for relief legislation.
“With millions of Americans out of work, tens of thousands of businesses on the brink of collapse, and communities big and small facing cutbacks in vital services, it is beyond time for Congress to act,” said the coalition. “As the economy teeters and businesses are facing an uncertain winter, we encourage Congress to act without further delay to minimize additional damage to Americans’ lives and livelihoods.”
Coalition steering committee members include the American Apparel and Footwear Association, the American Hotel and Lodging Association, Asian American Hotel Owners Association, the Go Live Together Coalition, the International Council of Shopping Centers, the International Franchise Association, the National Association of Counties, the National Conference of State Legislatures, the National Governors Association, the National League of Cities, the National Restaurant Association, the National Retail Federation, the Small Business and Entrepreneurship Council, the Society of Independent Show Organizers, the United States Conference of Mayors, and the U.S. Travel Association.
Visit ustravel.org for more information.
[10.27.20]
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- Category: Industry News
According to the most recent Global Business Travel Association (GBTA) poll, conducted between October 12-16, more than three-quarters of respondents (75 percent) believe that rapid testing prior to departure, and waiving quarantining requirements for those who test negative, are among the best ways to reopen international travel. Among European members specifically, this number rises to 86 percent.
When asked about the biggest barriers to travel, 63 percent of European GBTA members and 43 percent globally, cited government travel restrictions and policies, such as quarantine and entry restrictions, followed by company policy (32 percent), employee unwillingness/reluctance to travel (9 percent), and company cost savings (6 percent).
“The current patchwork approach to travel, particularly across Europe, is prolonging the devastating effects of COVID-19 on both the industry and the economy as a whole. It is evident from our latest poll that our members would welcome the opportunity to travel again in a safe environment and would be satisfied with the rapid testing approach pre-travel,” said Catherine Logan, Regional VP of Europe GBTA.
Despite the rapid growth and necessity for virtual meetings, 82 percent of respondents still feel face-to-face meetings are ‘more’ or ‘much more’ effective. Fewer feel virtual meetings are equally effective (14 percent) and just 2 percent see virtual meetings as more effective.
“There is a clear indication that regular business travelers are looking forward to returning to travel and the benefits of a face-to-face meeting are undisputable. Almost all GBTA members (94 percent) flew for business prior to March 2020, before the start of the pandemic, but just 6 percent have flown since—a clear illustration in the loss of revenue not only for the business travel industry, but from corporations not closing new business deals to the wider global economy and GDP,” commented GBTA Interim Executive Director Dave Hilfman.
The impact of COVID-19 is reinforced by the poll figures which finds 59 percent of GBTA member companies reduced staff or laid off employees as a direct result of the pandemic, while 52 percent furloughed employees, and 48 percent introduced pay cuts. Almost half (46 percent) of those GBTA member organizations with furloughed employees report seeing some return to work in some capacity.
The lack of government support continues to be a point of contention and 62 percent of members think it is ‘very likely’ or ‘likely’ that further reductions or staff layoffs are inevitable if additional government aid is not received. Half (51 percent) predict further furloughs and 46 percent believe further pay cuts are likely or ‘very’ likely without government interaction.
The current short-term forecast for travel remains unchanged with 90 percent of GBTA member companies still not open to International travel and 68 percent domestically, as companies continue to cancel and/or suspend almost all business travel regardless of destination.
“The need for government support for business travel suppliers is evident. GBTA is collaborating with other industry associations, industry bodies and supplier members to lobby governments in each of the key business travel regions for more financial support and a swift, safe return to business travel,” said Hilfman.
View the entire poll results here.
GBTA has been polling members since the beginning of the pandemic; the results of all polls can be accessed here.
Methodology
GBTA conducted a poll of its members across the globe from October 12-16, 2020. A total of 927 responses were received.
Visit gbta.org for more information.
[10.23.20]