The long-term impacts on your cash flow of short term actions taken during Covid-19

1. The long-term impact on
cash flow of short-term
actions taken during
Covid-19
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2. Cash flow considerations
1 The implications of actions taken during Covid-19
2 The impact when borders slowly begin to open up

3. CBILS Payments falling due end of Q1 2021
Tax deferral VAT to be paid back by 31 March 2021
Furlough Ends in October – what do your staffing needs look
like?
Refund credit
notes
What % will convert into new bookings vs refunds?
Supplier credit
notes & refunds
Can you ensure credit notes are used if customers
don’t want to travel to the same destination?
When will refunds be paid?
Actions taken during Covid-19

4. Impacting cash flows Q1/2 2021
CBILS
Tax deferrals Refund
credit notes

5. Impact on cash flow when the world starts
opening up
Existing bookings New bookings Business model
If people are willing to
travel this summer
balances will be due –
positive impact on cash
flow but you will also
need to pay suppliers
Likely to have short
lead times with full
balances paid upfront –
positive impact on cash
flow
Some destinations will
open up before others.
Can you sell new
products to increase
cash flow?
Deferred bookings
Convert refund credit
notes into new bookings
where possible to
prevent refunds

6. Cashbalance,£
J F M A M J J A S O N D J F M A
A typical summer tour
operator pre-Covid-19
Financial help e.g. CBILS
taken during Covid-19 &
refund credit notes given
No financial help taken
and customer money
being refunded
Cash flow scenarios

7. Summary
1 Think beyond 2020 when preparing your forecast
2 Start to plan now - consider the minimum you need to
do to get through the next 12 months
3 Stress test your business using different scenarios

8. THE TRAVEL TRADE CONSULTANCY
www.thettc.co.uk