COVID-19 leaves travel agencies and small businesses everywhere feeling strapped -- it's a high hurdle, but it's one the entire small business community is jumping together. For more advice from other small business owners on staying adaptive and coming out of this strange time on top, subscribe to LACRM's new newsletter just for small business community tips!
The world has been changing rapidly with the spread of COVID-19, and with those changes come economic challenges. With shelter in place orders across the world, the travel industry is slowing down, at least for the time being. As a small business the margins can be small, and it’s important to adjust your business budget where you can to weather this economic storm.
Just because the economic landscape is changing, doesn’t mean that you should immediately change everything about your business. It’s important to make it through this challenging time, but you also need to make sure that when things get back to normal, your business can too.
As you consider approaches to cutting costs, make sure to take the full picture into account. It may be tempting to slash your business budget quickly, but you could end up cutting costs in places that can help you come back. There may be difficult decisions ahead, but as Entrepreneur recommends,
Many companies have also begun to change policies related to refunds, cancellations and rebookings. Those new policies may be a temporary response to COVID-19, or they may become permanent adjustments. Either way, you want to make sure you know exactly what each policy is so you can effectively communicate that to your clients and follow up later.
Now is also a good time to do that book-keeping you may not normally have time for. As Penny Gray of Gilchrist & Gray Tailored Travel recommends,
Consider too, if you’re working with other small businesses, this is likely a difficult time for them and they may have a limited ability to negotiate costs. As Entrepreneur's Handbook suggests,
“Governments around the world are already putting together initiatives to support small business owners, and this is something that is evolving on a daily basis. Be up to date with how your governments can help cut costs.” - Entrepreneur
Caroline Joyner of Not Just Travel recommends a few low cost marketing tips: