AGENTS and operators are
most likely to default or close
their doors between November
and January, according to
canvassed travel companies.
This is due to a combination
of slow booking months and
higher expenses over this
period.
This season, Heyneke Tours,
One for Travel Services and
Sikukuu Travel (Trip and Travel)
all made headlines for fraud
and/or non-payment of travel
services.
Other industry cases reported
on over the last few years that
all made headlines during this
season include Bets Olivier
(Dec 2016); Travel Zone (Dec
2016); Harvey World Gateway
(Jan 2013); Travellers Choice
(Jan 2012); and Club Travel
Honeydew (Dec 2011).
An airline representative who
wished to remain anonymous
told TNW that he had
previously worked at agencies
where he had seen cash being
rolled over to cover expenses
during this period. “December
is a quiet booking period and
January is generally more of a
quoting month than a booking
month, with most corporates
only resuming regular bookings
during February each year.
Additionally, expenses are
higher during this period.
Staff bonuses are often paid
and year-end functions take
place at this time of year and
supplier payments for the
peak season bookings are
suddenly due for payment.
These combined factors will
often result in an agency being
forced to close its doors at the
end of this period.”
David van den HeeverLiebenberg,
travel director for
Marmalade Toast Bespoke
Travel and Destination
Management, agreed,
suggesting that agents should
be extra vigilant with cash flow
management forecasts over
this period and to adhere to a
strict “money in, money out”
policy when it came to paying
suppliers.
