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By NISHA RAMCHANDANI, ZEINAB YUSUF and VICTOR KATHEYAS
AIRLINES aren't alone in trying to keep the lid on costs during the downturn - travel agents, too, are implementing measures to cope with the slide in business. 'Sales revenue is currently down 50 per cent compared with last year,' said Alicia Seah, senior vice-president of marketing for CTC Holidays. Weaker bookings this year were further hit by the outbreak of Influenza A (H1N1), she added. 'Bookings for the school holidays are picking up but due to the H1N1 situation, customers are still concerned,' said Asia-Euro Holidays marketing manager Darren Chew. 'There is a drop of 20 per cent compared with last year.' Amid such a slump in demand, travel agencies are going all out to cut costs to ensure the recession does not leave a permanent scar on the business. CTC Holidays has introduced 15-21 days compulsory unpaid leave for staff from May to July, based on salary scales. It has also shut down backend operations at weekends to save on utility costs and other overheads. Chan Brothers Travel has imposed compulsory staggered leave for staff from May to July to defray costs. But despite the challenging business environment, none of the travel agencies BT spoke to are laying off staff. 'We are generally trying to hold off that option as far as possible so as to boost morale and confidence,' said Ruth Lim, marketing and communications manager at Sino-America Tours. 'If need be, we will be looking at a flexi-work week and perhaps clearing annual leave for starters.' Asia-Euro Holidays has no plans to cut salaries at present. But Mr Chew said it may be forced to do so if sales targets are not met. Safe2Travel, which has a hiring freeze in place, has been cutting back on operational costs such as courier fees and office rent. Travel agencies are also making use of government initiatives to boost employee skills. Country Holidays, which specialises in trips to non-mainstream destinations such as the Himalayas and South America, is ramping up staff training. Its staff are also travelling more to keep themselves updated, said general manager Jess Yap. At Chan Brothers, employees have been sent for courses on tourism, sales and customer service, with the company tapping government initiatives to fund the training. 'We are preparing ourselves for the resurgence in the economy,' said spokesman Jane Chang. Business's return to pre-recession levels may take time, but there is some relief now that the H1N1 virus alert level has been lowered from orange to yellow. 'Although the majority of customers are adopting a wait-and-see attitude, there are some who are living their lives normally and are still booking their holidays,' said CTC's Ms Seah. Chan Brothers, which is trying to make up for lost sales by gunning for June holiday business, will see the results unfold soon. Ms Chang said consumers are more educated about the over-hyped severity of the swine flue virus and are aware that travel is on the cards as long as they take care.
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