Feeling The Burn, Travel Suppliers Focus On Cash And Cost Cuts

Lodging and transportation companies lost money in the first quarter and they're losing more during the second. What matters now is shoring up liquidity and improving cash burn for the second half of the year and into 2021. To bolster reserves, suppliers are taking out loans, tapping into credit facilities, cutting spending and reducing workforces. They curtailed or suspended many services. Buyers should be cautious. 

Most providers will probably survive, perhaps with court-supervised restructuring, but there is no guarantee. Everyone will look different. Pricing may fluctuate in the months ahead. With uncertainty on supplier . . .

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Author: David Jonas

David Jonas in 2006 co-founded business media firm ProMedia.travel after ten years as a journalist with Business Travel News. David rejoined BTN in 2010 as executive editor when its parent company acquired ProMedia, and in 2014 co-created The Company Dime. David has a bachelor's degree in communications from Cornell University.
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