A number of travel agencies have placed their employees on a 4-day week due to booking cancellations as a result of the spread of Covid-19.

According to reports, some of these employees are losing between €300 and €400 a month in salary.

In comments to this newsroom, the Federated Association of Travel and Tourism Agents (FATTA) said these measures by travel agencies were being taken independently of the association.

FATTA president Iain Tonna said that "as an association we have made a number of proposals to the government in order to mitigate the impact on employees and minimise the instances where people are going to lose their job or have their working hours reduced."

He added that "placing employees on a 4-day reduced working schedule involves a whole process that needs to be followed. This does not only involve travel agencies, as every company such as supermarkets or car rental companies have the option of following such a process in extreme situations."

"So far, as an association we have not issued any directives, recommendations or suggestions to members to go on a reduced hour basis. Any agency that has done so, is doing it on a purely independent and commercial perspective," Tonna said.

Tonna said that "if we are given support, even temporary support, we can encourage agencies to only make use of this 4-day reduced week schedule as a last resort, rather than the first resort."

 He said that "agencies are service providers. Thus when looking at their costs, about 70% is usually for payroll. Therefore, if one ends up in a situation where revenue is drying up, one needs to curb costs to remain afloat, and thus one will inevitably turn to human resources."

"If support is given through the proposals we made to the government as an association, we will try to avoid resorting to a 4-day reduced week. Unfortunately, without support it is more likely that more agencies would opt for the 4-day reduced week option," Tonna said. 

He said that "the phones have stopped ringing, bookings have dried up, and the only thing that travel agencies seem to be currently doing is handling requests for changes and cancellations."

Tonna said that he "hopes that such a situation won't last for too long, however it is very unpredictable."

"The problem we are currently facing is one of perception, as people are panicking due to COVID-19, and rightly so. However some might be over reacting as several people are cancelling holidays which have been planned for the upcoming months of May, June and July," Tonna said.