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A brutal end is taking shape for what has already been a lost year for Europe’s travel industry, as Covid-19 manages a final blow to airlines, hoteliers and travelers.
A rapidly mutating strain of coronavirus that spread to the UK led Prime Minister Boris Johnson to curb holiday visits at home and abroad over the weekend. Italy, the Netherlands and Belgium were among the countries that closed their borders with the former state of the European Union, and others were preparing to continue the same.
Airlines that saw some of the typical holiday bustle now cancel flights or send empty planes so the stranded British can return. British hoteliers and holiday rental operators arrive empty during one of the busiest times of the year. Train operators faced chaos over the weekend amid a rush to leave London, while travelers hoping for a family visit or a sunny getaway spend time on the phone looking for refunds.
“Basically no one expected the winter to be good,” Citigroup analyst Mark Manduca said of the airline’s year-end grief. “We knew it was going to be bad, it’s bad, it turns out it’s going to be really bad.”
Contrast for airlines
The UK was the main European air travel market before closing on Sunday
Source: Eurocontrol, based on flights on 19 December
In the next few days, thousands of flights are likely to be canceled.
Prior to the latest blockades, airlines were expected to offer just under a million seats this week between the UK and Western Europe, said Anne Correa, vice president of air and airport services for consultancy Morten Beyer & Agnew. Although it has shrunk by more than two-thirds from a year ago,Until Christmas was supposed to be one of the few highlights of the industry this year.
Ryanair Holdings Plc i EasyJet Plc will see the biggest immediate impact, he said, as they sell 49% of the seats between the UK and Europe.
“These bans will lead to the disruption of travel plans for thousands of passengers and the loss of the airlines’ maximum revenue, ”said John Strickland of JLS Consulting.
Carrying the weight
Who pays often depends on the small print of plane and train tickets that few read until a crisis arrives. On social media, customers engage in reimbursement battles with airlines, train operators and ticket brokers.
Some airlines like EasyJet quickly said they will offer cash backs to customers who have an interrupted trip. British Airways and long haul specialist at IAG SA Virgin Atlantic Airways Ltd. he said he will limit compensation to vouchers or waive exchange rates.
Irish discount Ryanair said on Sunday that it will provide refunds when EU countries ban travel between 20 and 24 December, but not to other countries to which the airline is allowed to fly.
Stranded travelers
Beyond the damage to their wallets, potential travelers found their plans shattered. Twitter user Franchesca_3 he said he could not board a flight from Britain to Sweden, where he is moving, on Sunday because he would stop in Amsterdam, where the Netherlands had banned arrivals in the UK. He said he hopes to reach his destination before Sweden continues with its own ban.
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Frustrated people trying to leave the UK risk running out of a place to stay. The Premier Inn Wimbledon Broadway in south London said it was open, but anyone booking a room must prove they are there for a legitimate reason, such as business, by showing a letter or email.
Small holiday rental operators were also out of his pocket. Airbnb told customers they should receive a refund if travel is limited a policy established before the enactment of the last rules.
Cottages.com, the largest provider of self-catering accommodation in the UK, told owners to contact all guests living in a Level 4 area (including London and much of South East London). England) to cancel reservations and offer a reservation or subsequent refund.
Scotland will move to Level 4, the UK’s most severe blockade category, from December 26 to at least mid-January, while in Wales all holiday accommodation will have to close, Cottages.com said.
Trains and taxis
Railway stations serving express routes outside London were filled Saturday night amid an exodus before the new rules. Some travelers rented cars or booked taxis for hundreds of miles to escape the capital and be with loved ones during the holidays.
Eurostar International Ltd. said it will reimburse passengers who are unable to travel on their trains through the English Channel, although the impact will be limited by demand already circulating at less than 30% of the usual Christmas level that was made in the previous curbs.
Manduca, the Citigroup analyst, said the chaos at the end of the year would likely have an incidental effect, causing some travelers to delay booking earlier in the year to travel in the summer.
While expecting a negative sentiment on the shares of airlines in the short term, he said low-cost airlines like Ryanair could benefit from the power to set prices when travel recovers. Airlines have become more agile with costs and can adapt more easily to shorter booking times, he said.
“I don’t think it has a big impact on the fundamentals,” he said. “Summer can be really good.”
– With the assistance of Priscila Azevedo Rocha