The ‘us versus them’ debate continues among tourism industry members who all continue to fight for survival amid the negative impact of unprecedented global COVID-19 pandemic. Tourism Update reader, Gary Lotter, points out that the industry is #allinthistogether.
He wrote in response to this week’s opinion piece by Martin Wiest, CEO of Tourvest Destination Management, where a user named 'David Livingstone' attempted to address the issue of cash flow through the safari lodge industry during COVID-19, but at the same time embraced a less-than-positive approach to tour operators in general, ending his comment with #weownthebeds #watchthisspace. 'David Livingstone' has since deleted his comment.
Lotter says: “Over the last 30 years, I've been fortunate to work in nearly every sector of the safari travel distribution chain; in lodge operations and sales, in both B2B & B2C tour operations, through traditional and digital channels, and in the biggest corporates to a tiny start-up.”
His letter continues:
Cash flow
During this time, I have been in countless discussions concerning the cash-flow dynamics of the safari travel industry, and the current debate regarding deposits and payments is completely understandable, considering the cash has stopped flowing.
I'm stating the obvious, but in my opinion, we appear to be spending a significant amount of time discussing symptoms, not the cause. We're understandably all desperate for cash and therefore focused on the location of the 'cash' in the system (symptom), but the problem is that the 'flow' (cause) has stopped and there is frustratingly very little we can do about that.
Irrespective of 'once-off' adjustments that could be made to move the cash currently in the system, unless it starts to flow again, we're probably, as the saying goes, 'moving deckchairs on the Titanic'. Even if the situation was such that future deposits were paid to lodges at the time of booking, I still don't believe it would be appropriate to spend it to cover current costs.
There are no doubt some unscrupulous tour operators out there. Still, in my experience, most are as passionate about Africa and its wildlife as any lodge operator, and work very hard to foster the idea that tourism is Africa's most sustainable conservation mechanism. That said, I don't believe it is in any way ethical for a tour operator not to pay a lodge for clients who have already travelled.
Commissions
Again, an endless debate and, believe me, I fully understand the high cost of running a safari lodge, but in my experience, lodge operators are quick to ignore the 'cost of distribution' in African safari travel. The sales and marketing costs of promoting the experience of an African safari to the end-user are extensive and, of course, this is where your ±30% commission goes.
Imagine for a minute that every tour operator and travel agent in the world disappeared, that you paid no commission and got to keep every cent a traveller paid for your lodge. Awesome, right!
However, from that rack rate, you need to allocate a sales and marketing cost to ensure that Mrs Schwarz in New York, Mr Johnson in Sydney and Paul Smith in London all choose a safari over a trip to the Bahamas. You also need to make sure that they select your country as the destination of choice in Africa and that they choose your lodge over thousands of others.
You also, somehow, have to collaborate with your fellow lodge owners to ensure that these travellers make their way successfully from home to a series of remote destinations in Africa. It's impossible to work out what this might cost, but I suspect it would be somewhat more than the ±30% you are currently 'paying'.
You are correct, #youownthebeds, but at the same time, I believe that we are also #allinthistogether and the last thing anyone needs is a #weownthedistributionchannel vs #weownthebeds battle.
