Manoj Vagh, OneTeam Chartered Accountants Manoj Vagh, OneTeam Chartered Accountants

Travel businesses resilient

By Manoj Vagh, Partner, OneTeam Chartered Accountants

We have just completed the six-month TAANZ bonding results for our 70 plus travel clients.

The travel business results are much better than most of our other clients who have been affected by Covid. Our travel clients were profitable or at break even for the six months ended April to September 2021.

How have they done this?
• They have diversified. Most agencies that we look after are hibernating, but a few have taken advantage of the opportunities available in the domestic market by taking guided tours namely cycling, off-track, off-road tracking, motorhome tours etc. 
Repatriating New Zealanders home. Several agents kept doing what they know best, using their airline experience and knowledge of MIQ to get people home. 
• Working on their business. Some say the pandemic has made them rethink how they do business, instead of working in the business they have had to work on the business. They have restructured, cut out all the unnecessary expenses and maximised their use of cash with help from government subsidies.
• Taking control of their finances. When you have a reduced income, you have no choice but to take control of your finances. We have been able to assist here with subsidy claims, cash flow forecasts, Tourism Transition funding and accessing other government funding.
• Accessing a sounding board for ideas, plans, forecasts, options.
We are here to listen, guide and help with plans as we know the client’s personal circumstances and their financial resources. We understand the risks and the stress they are under. Clear thinking in these times is essential.

If travel businesses continue doing this for a further few months, we believe they will survive. I am sure Kiwis would want to fly again with confidence in 2022 and who else is there to provide that confidence?

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