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A brutal end takes shape for what has already been a lost year for the European tourism industry, as Covid-19 manages a final blow to both airlines, pubs and passengers.
A mutant strain of coronavirus that has spread rapidly in the UK has prompted Prime Minister Boris Johnson to stop on holiday visits at home and abroad on weekends. Italy, the Netherlands and Belgium are among the countries that have closed their borders to the former state of the European Union, and others are preparing to follow suit.
Airlines that have seen a glimpse of the typical holiday bustle are now canceling flights or sending empty planes so that the stranded British can return. UK hoteliers and holiday home operators come empty-handed in one of the busiest times of the year. Train operators faced chaos over the weekend, in a hurry to leave London, while passengers hoping to sneak in on a family visit or a sunny getaway spend time on the phone looking for refunds.
“In essence, no one expected the winter to be good,” Citigroup analyst Mark Manduca said of dismantling the airline industry. “I knew it was going to be bad, it’s bad, it looks like it’s going to be really bad.”
The setback for airlines
The UK was the first air travel market in Europe before the blockade on Sunday
Source: Eurocontrol, based on December 19 flights
In the coming days, thousands of flights may be canceled.
Prior to the latest blockages, airlines 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 at consulting firm Morten Beyer & Agnew. Although this has dropped by more than two-thirds from a year ago,up to Christmas was supposed to be one of the few highlights for the industry this year.
Ryanair Holdings Plc and EasyJet Plc will have the biggest immediate impact, she said, as it sells 49% of its seats between the UK and Europe.
“These bans will disrupt travel plans for thousands of passengers and lose peak revenues for airlines,” said John Strickland of JLS Consulting.
Carrying the heavy
Who pays often depends on the small footprint of plane and train tickets that few read until a crisis breaks out. On social networks, customers have engaged in reimbursement struggles with airlines, train operators and ticket brokers.
Some airlines such as EasyJet have quickly stated that they will offer cash refunds to customers whose trip has been interrupted. British Airways and long distance specialist of IAG SA Virgin Atlantic Airways Ltd. has stated that it will limit the compensation to vouchers or waive modification fees.
Irish discoverer Ryanair said on Sunday it would offer refunds if EU countries ban travel between 20 and 24 December, but not in other countries to which the airline is allowed to fly.
Blocked passengers
Beyond the damage to their wallets, future travelers found their plans destroyed. Twitter user Franchesca_3 he said he could not board a flight from Britain to Sweden on Sunday, where he is moving, because he will stop in Amsterdam, where the Netherlands has banned arrivals in the UK. She said she hopes to reach her destination before Sweden follows its own ban.
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Those prevented from trying to leave the UK risk being stranded without 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, showing a letter or email.
Small holiday rental operators were also out of pocket. Airbnb told customers that they should receive a refund if travel is restricted, according to a policy implemented before the adoption of the latest rules.
Cottages.com, the UK’s largest self-catering accommodation provider, has told owners to contact all guests living in a Tier 4 area – including London and much of the south-east of England – for cancel reservations and offer a reservation or subsequent refund.
Scotland will move to level 4, the most severe blockade category in the UK, from December 26 to at least mid-January, while in Wales all holiday accommodation must close, Cottages.com said. .
Trains and cabins
Railway stations serving express routes in London were packed on Saturday night amid an exodus ahead of the new rules. Some travelers have rented cars or booked taxis for travelers who travel hundreds of miles to escape the capital and be with their loved ones for the holidays.
Eurostar International Ltd. has said it will reimburse passengers who cannot travel on its trains through the English Channel Tunnel, although the impact will be limited by demand already underway at less than 30% of normal boarding previous.
Manduca, a Citigroup analyst, said the chaos at the end of the year is likely to have a knock-on effect, prompting some travelers to make late-summer bookings.
While expecting a negative sentiment on the short-term airline’s actions, he said low-cost carriers such as Ryanair could benefit from pricing power when the journey returns. Airlines have become more agile with costs and can adapt more easily to shorter delivery times, he said.
“I don’t think it will have a big impact on the fundamentals,” he said. “Summer can be pretty good.”
– With the assistance of Priscilla Azevedo Rocha