Executive pay cuts, hiring freeze and domestic boost for Helloworld.
Helloworld Travel Limited has just released an update on its response to the COVID-19 situation, saying it is taking “decisive action to reduce the adverse outcomes of coronavirus on travel demand”.
For the remainder of the financial year the company’s non-executive directors and Chairman will take no fees, while CEO Andrew Burnes will take a 30% salary cut, alongside the company’s Executive Management Team which will be paid 25% less.
All non-essential recruitment has been halted, and Helloworld employees are being asked to take paid or unpaid leave while all discretionary expenses are being reduced or eliminated.
Burnes said over the last two weeks the company had seen a steady decline in bookings in some parts of the business, particularly cruise, inbound to Australia, wholesale to Asia and Europe and in corporate international travel.
“Who knows how long this will go on, but will eventually get better and the world will recover and we want to ensure we are well positioned when that happens to meet the leisure and corporate travel demands of our customers in Australia, New Zealand and around the world,” he said.
The company is also increasing its domestic leisure offerings, and promoting destinations still regarded as safe to travel.
Helloworld noted that domestic travel demand in the corporate sector had held up so far, while the company had also seen an increase in demand for domestic leisure travel “which is a welcome sign given the negative impacts of the bushfires and of coronavirus on inbound visitor arrivals”.
More details in today’s issue of Travel Daily.