Question

This is for my microeconomics task

What are the challenges faced by travel agencies due to COVID-19 ? Discuss and explain at least 4 challenges

400 WORDS

Answer 1

1) Loss of business: Due to the lockdown all around and international/domestic flights being shut down, the airlines, which is the most important part of the industry have to stay grounded and are not able to generate sufficient amount of income to meet their operation commitments.

2) Returning money to customers: There were customers who had booked their tickets with the airlines or with the hotels well before in advance. Such customers are now contacting the companies to refund their amount since all services stay shut. This poses as a major challenge in front of the companies. Some companies are however trying to resolve the issue to some point, by offering the customers an option to postpone their ticket or visits.

3) Companies are not able to forsee for themselves when and how will this pandemic end. Thus, they are also not able to set their future goals or objectives accordingly.

4) Challenge to recover the operational costs: It is difficult for the companies to recover their operational costs in such a situation, like salaries to employees who are working from home, or the cleaning staff that has to come to the hotels everyday to mainain cleanliness, etc.