Coronavirus: Travel agencies count loses, ticket sales drop by 50%

Coronavirus has affected the sale of tickets and reservations on international routes. The virus, which has spread globally, caused a 50% drop in travel agencies’ ticket sale and sale of ticket and reservations for international trips.

The decline occurred few days after the coronavirus became a pandemic, spreading beyond China and the Asian region into other continents like Europe, America and Arab nations. It was learnt that travel agencies had previously experienced a 20% drop, but it further declined to 50%.

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Nairametrics had reported how the coronavirus spread was impacting businesses and economies negatively. In Nigeria, the Minister of Finance disclosed that President Buhari’s administration would review the 2020 Budget due to the virus. Also, trade has been affected due to Nigeria’s business ties with China, where the virus started from.

According to President of the National Association of Nigeria Travel Agencies, Bankole Bernard, Nigeria is not the only country where travel agencies are experiencing a day rop in their sale of ticket and reservations on international routes.

Bernard said airlines were canceling flights to avoid the spread of the virus. “Right now, the US is a no-go area; Italy and many other countries have been shut down and South Africa’s coronavirus cases are growing rapidly.

“Drop in sales is now at 50 per cent; airlines are cancelling flights to affected areas, and when there are no bookings, airlines cannot fly empty planes. Only few airlines with deep pockets are surviving this period.”

Africa is the go-to place for travel agencies now as Western countries begin to restrict flight into their airspace. This is because coronavirus is not widespread in Africa.

Although the aviation industry is expected to recover in June, forward bookings are being hit severely by the virus, and according to Aviation analyst, Olumide Ohunayo, domestic airlines will not be affected compared to foreign flights.

He, however, stated that“We expect some losses to come to our travel agencies and service providers because the airlines will cut frequencies and downgrade equipment into Nigeria. With the ban, frequencies to Africa will be reduced,” he told Punch.

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