How Many Travel Companies Went Out of Business?
The global pandemic of 2020 had a devastating impact on the travel industry, with many businesses having to close their doors. The number of travel companies that went out of business is difficult to estimate, as many companies were forced to restructure or adjust operations in order to survive.
The International Air Transport Association (IATA) reports that passenger numbers worldwide fell by 70%, with only 1.8 billion passengers travelling in 2020 compared to 6.8 billion in 2019. This decline has had a significant impact on the travel industry, with airlines reporting losses of over $84 billion in 2020.
Furthermore, the decline in demand for international and domestic travel has had a knock-on effect on other parts of the tourism industry, such as hotels and tour operators. According to data from STR Global, hotel occupancy rates declined by 57% in 2020 compared to 2019, resulting in hotels closing their doors or reducing operations significantly.
At the same time, tour operators have had to cancel trips due to restrictions imposed by governments around the world. The lack of tourists has resulted in financial losses for many tour operators who now face an uncertain future.
It is impossible to determine how many travel companies went out of business during this turbulent period, however it is likely that many businesses have been forced into insolvency due to the decline in demand for travel services and products.
As countries around the world begin to ease restrictions and open up their borders again, it is hoped that consumer confidence will return and people will start travelling once more – allowing many businesses within the travel industry to survive and thrive again.
Conclusion
The global pandemic has had a devastating effect on the travel industry with airlines, hotels and tour operators all experiencing significant losses due to reduced demand for their services and products.
It is impossible to determine how many travel companies went out of business due to these circumstances but it is clear that there has been a significant impact on the sector as a whole. With vaccines being rolled out around the world, there is hope that consumer confidence will return and people can begin travelling again – allowing businesses within this sector an opportunity to recover from these challenging times.