Blurb from the author: Luckily, I haven't gotten bitten by travel fever even though I've stayed at home throughout the MCO (I haven't even left home for groceries), but I know some people feel like traveling as soon as it comes back allowed is. However, the tourism industry is currently suffering. But how bad is it? Can something be done about it?
With these questions in mind, Vulcan Post
3 tourism / travel startups were contacted to get an insight into the situation
We managed to do the following:
In the meantime it is likely
clear how the tourism industry was influenced, but what do these startups have
done about the situation?
The bleak picture
One of the biggest negative impacts, of course, was the number of tourist arrivals where customers canceled or rescheduled their travel bookings with Klook, Emily said.
This also applies to
LokaLocal and Rachael added that Visit Malaysia 2020 will be canceled.
All upcoming campaigns also had to be suspended.
For Tourplus said Rickson
us that they had already predicted the effects of the coronavirus outbreak
January as this already affected their plans to enter the Chinese market.
The reduction of
Chinese travelers have been a huge success for the travel industry, he said
said and added: “We were forced to switch our target market to other foreign markets
Markets, but in February, when the outbreak of the corona virus increased, all other foreign ones
The cities were also blocked and travel was restricted. "
Even if people had
still wanted to travel, governments started to ban it.
To cushion that
LokaLocal started discussions with MDEC to see how they promote and
change tourism through digital innovation.
In the meantime
Emily has eased the fear and insecurity of her customers
that Klook allowed customers who booked activities with participation
Date until April 30, 2020 to postpone the purchase or request a refund.
Weathering of the
In terms of their
Klook, own employees, made sure that they could offer a secure job and
virtual infrastructure that enables them to continue working at a high level.
“In Malaysia we have
prior to the announcement of a mandatory Work from Home (WFH) directive
Movement Control Order (MCO), ”said Emily.
"The team is too
Use this time to start several internal brushing projects
Improve skills that they can equip for the recovery of the market. "
Rickson admitted for Tourplus
that these are difficult times, but he hopes the team can stay in the company.
"Therefore we offer
Various options, including wage cuts and employee stock ownership plan (ESOP)
to those on the team who want to stay together, ”he added.
Dictionary time: An ESOP is a kind of employee benefit plan that is similar in many respects to qualified employee benefit plans and is subject to the same law (Retirement Income Protection Act). ESOPs are funded by the employer, not the workers. The inventory is held in a trust for employees who meet the minimum service requirements and is allocated to employees based on relative pay or a higher formula and distributed after the employee ends.
Over at LokaLocal, one
The aim of this crisis is to avoid layoffs wherever possible. That's why,
Your team has agreed to temporarily cut wages by 10-50%, with some being cut
In a statement, CEO
Chin Yoon Khen said they even moved offices to reduce theirs
"We give our best
to manage our costs and work leaner until the situation improves,
and if we can make it work through our alternative sources of income, ”Rachael said
Tourism becomes No.
The same is longer
Rachael shared that
LokaLocal expect this to be the case even after the MCO is canceled
Take some time for the tourism sector to warm up again.
"The truth is tourism
will not be the same after this outbreak. As a technology company, we have to
Adapt to these changes to stay relevant and stay ahead, ”she said.
"Our team is
Realignment of our strategies to use even more digital approaches that we are planning
to start later in the year. "
Earlier this year, they launched a content and marketing branch called MY 360 Playbook that raises awareness of local goals and supports companies through video marketing and branded content.
Now they have also initiated their online experiences, in which users can virtually connect to the local pool of experts from LokaLocal via online courses and webinars. The types of experiences ranged from attending an Ayurveda session to a virtual visit to Kampung Baru.
On the other hand,
Tourplus is considering partnering with local retailers to use the Tourplus guide
Resources that help them generate more income.
However, the project will only really take effect when the rebound takes place, as Tourplus can only build its foundations for the time being, Rickson said.
Klook Malaysia has
also explored ways to further support their dealers and
Partners who work directly with them to implement flexible policies and
"As part of our
Recovery plan, we also work closely with various partners, including
Tourism organizations around the world use Klook's data to close this gap
and curate better travel experiences for different segments of travelers
the future, ”Emily concluded.
Bottom line: While some of them may not be able to take immediate cash flow maintenance initiatives, none of them remain stagnant and remedial. Whether qualifying or working on the fundamentals of a new project for the future, there is always something to do that could be beneficial in the long run.
- Read more about what we wrote about the MCO here.
Selected image source: Vulcan Post / Tourplus / Rachael Lum LinkedIn