Travel groups must rethink business models, On the Beach chief says

Travel companies must radically rethink their business models after the coronavirus crisis as they face paying out billions in refunds to customers due to the near-total shutdown in global travel, the CE of On the Beach has said. Simon Cooper, head of the online travel agent, warned that tour operators and airlines would have to stop using cash deposits for future bookings to support their operations after the pandemic prompted mass refund claims. “It’s painful enough being in an environment of zero revenue without being in an environment of zero revenue and having to pay money out,” he said. Most airlines and tour operators, including cruise companies, have been refunding customers for cancelled holidays using vouchers and credit notes in order to preserve cash — something that is not strictly permitted under EU law. <br/>