The promise of a road map for a return to international travel was derailed as 2021 draws to a close by surging Delta cases in the Northern Hemisphere and the new Omicron variant. The government’s home isolation proposals were met with relief by New Zealanders who had all but given up on the much-maligned MIQ lottery system, but met with despair by the domestic tourism industry who learned that international tourists would be very unlikely to return as they would need to start their New Zealand holiday with seven days of self-isolation.
Uncertainty and complexity have led to a surge in demand for the services of the remaining travel agents (30% of the original workforce) who have taken the time to study and set up systems to stay on top of their clients’ Covid travel obligations. These obligations include the outbound pre-departure testing requirements of the airlines, testing and vaccination requirements of transit cities (in particular Singapore, Doha and Dubai), and the vaccination and arrival requirements of the final destinations. The requirements on the return journey need to be considered as well. Omicron brought a sense of déjà vu with borders again closing (Japan) and pre-departure testing being reintroduced (the US and the UK).
Air New Zealand played the Christmas Grinch and announced that from July 2022 it would all but eliminate the commissions it pays travel agents for their services. After almost two years of helping mutual clients navigate Air New Zealand’s credit and refund policies for almost no revenue, and believing Air New Zealand’s “we couldn’t have done it without you” reassurances, the Walmart-like approach to partner relationships will be the final straw for many of the remaining small business owners and sole traders who are battle weary and yet to regain their mental health.
Like adapting to the advent of the internet, the move to an almost zero commission relationship will require travel agents to evolve and be very clear about the value they add. A service fee for researching and booking an itinerary, managing airline schedule changes, and advising on the Covid travel obligations can then clearly be compared with a traveller’s time (and level of comfort) involved in conducting their own research, booking directly through Air New Zealand’s website, and dealing with its call centre.
The Prime Minister’s ominous announcement that Cabinet will review the latest information on the Omicron variant before approving phase one of home isolation in January (for New Zealanders returning from Australia) suggests that the uncertainty of 2021 is far from over.