ABTA Travel Matters June 2021

1. ABTA Travel Matters
Wind Down
Workshop
June 2021

2. Today’s presenters
martin@thettc.co.uk
Martin Alcock
sarah@thettc.co.uk
Sarah Winship
simon@thettc.co.uk
Simon Brodie
jade@thettc.co.uk
Jade Stutely

4. CHALLENGE #1
VISIBILITY

5. Consumer Fundamentals - Spending
Source: Barclaycard spending report, 10 Jun 2021

6. Consumer Fundamentals - Unemployment
Source: ONS employment stats, Jun 2021

7. The rise and fall of Portugal
Source: Google Destination Insights Tool

8. …but ex-UK Travel search is still flat
Source: Google Destination Insights Tool

9. …and UK is lagging behind the EU
Source: Citibank research, Cirium, FlightAware

10. “Our updated base case is that 21.5m passengers are forecasted to
travel through Heathrow in 2021, representing a 2.7% decline
compared to 2020 but a dramatic 73.4% decline vs. 2019.”
Source: Heathrow Airport investor announcement, June 2021

11. CHALLENGE #2
STAKEHOLDER
MANAGEMENT

12. ATOL – Additional info

13. ATOL – new and improved

14. Consultation closes 31 July 2021
Consultation document can be found at:
https://consultations.caa.co.uk/cmg/atol-reform/

15. IATA Changes

16. CHALLENGE #3
TRUST & ESCROW
ACCOUNTS

17. Trust accounts – the basics
Bank account A trustee Trust deed Beneficiaries

18. Typical ATOL trust working
Trust a/c
Current a/c
Booking Supplier payment Departure
Balance due Return
1
2
3
4
X
Eg. £550
Credit/debit Credit/debit
X
X X
E.g. £250 E.g. £750
E.g. £200
E.g. £200

19. Typical ATOL escrow working
Current a/c Escrow a/c
Weekly calculation of
total aggregate of
gross ATOL client
money held:
If Escrow a/c balance is
less than 70%, company
must top up the account
to 70%
If Escrow a/c balance is
more than 70% trustee
can release cash down
to 70%
Credit/debit

20. CHALLENGE #4
RAISING FINANCE

21. €1.8bn of loans
and equity
€400m
convertible
bonds
£65 million equity
and £75m banking
facilities.
> $4bn convertible
bonds
£1.2 bn bonds and
£300m sale and
leaseback
£1bn from a range
of funding sources
Injection of growth
capital from private
equity firm Certares.
Crowdfunding
of £760k
Much Better Adventures
crowdfunding £1.3 million
from 964 investors.
Raised £1.2 m from
high-net worth
individuals and travel
executives
£4.25m
refinancing
£1.5m debt
funding
Injection of growth capital
from Genairgy

22. Funding options
Friends and
family
Crowdfunding
platforms
Existing
customers
Banks and
other lenders
High Net Worth and
private investors
Private equity
Stock market listing

23. Travel Trade Consultancy
Traveltradeconsultancy.co.uk