Focus Travel Partnership's Abby Penston
Focus
Travel Partnership chief executive Abby Penston has accused the UK transport
secretary Grant Shapps of a “lack of understanding of the business travel
management company community” and of “trotting out platitudes” in a letter she received
from him.
Penston
had sent her local MP Therese Coffey a letter outlining her concerns about the
government’s lack of support and engagement with business travel, ahead of the travel
day of action in June.
She was
surprised to receive a response from the transport secretary himself.
“The
response from Grant Shapps trots out familiar sounding platitudes,” said
Penston.
In
his response, the transport secretary wrote: “The Government has put forward an
unprecedented package of support for businesses throughout the pandemic
including the Coronavirus Job Retention Scheme, a range of government-guaranteed
business loans, as significant packages of direct business grants for
businesses that are required to close, or which are severely affected by the
restrictions put in place to tackle Covid-19 and save lives, business rates relief
and cuts in VAT.
“We
estimate that the air transport sector (airlines, airports and related services)
would have benefitted from around £7bn of Government support since the start of
the pandemic.”
Penston
said, “Grant Shapps and the government’s failure to engage properly with the
business travel sector is evident in his complete lack of understanding of the
business travel management company (TMC) community in the travel ecosystem. He
has failed to recognise this sector throughout the pandemic but also in his
communication with me. His response wraps the entire travel and tourism sector
into one.”
Regarding
Shapps’ response, she said, “The Job Retention scheme has been good, but with
major constraints still in place, and borders opening very slowly, corporates
remain cautious when it comes to booking travel as duty of care has become
king. Recovery is and will remain slower than leisure.
“Along
with the constantly changing travel environment our TMC partners are telling us
that bookings are taking much longer. Travel arrangements are frequently
changed, and more resource is required per booking. Clients need much more
advice and guidance from their TMC and they rely on them for information
ranging from testing and border controls to protocol restrictions and duty of
care obligations. All of which require 24/7 servicing."
She
added, “Grant Shapps referenced my query on the lack of support for our sector.
Let me spell it out. Business travel management companies have not benefited
from any VAT cuts. There is no VAT on flights or rail, and clients can claim
VAT back on hotel services. None of this helps the travel management companies.
“There
was confusion over business travel agencies not being classed as travel
agencies because most don’t have a shop front. Leisure agents with a retail
unit were automatically given grants, whereas business travel agents, who are
mostly office-based, received nothing. Also, those TMC companies using
serviced offices are not eligible for relief on business rates.”
Summing
up her reaction to Shapps’ latter, Penston said, “If border restrictions and
constraints are still in place business travel management companies need
dedicated and targeted support from this government.”