2020 will remain a historic year in the course of human history for a long time to come. It was the year that witnessed the introduction of the coronavirus; a virus that ravaged the world depressed the global economy destroyed businesses and led to over a million deaths. It is difficult to find a single sector of the economy not adversely affected by the virus. One noticeable effect of the virus was the restriction of movement which was based on the communicable nature of the virus. Hence governments around the world adopted a lockdown on human movements and congregation. While some sectors of the economy appear to be picking up speed, the transportation industry has not shown any sign of major improvement, especially in the western world so far in the year 2021. The main factor responsible for this phenomenon as well as the sectors within the travel industry hardest hit by this pandemic is examined below.

Virus Mutation

Much has happened since the first outbreak of the virus was announced in Wuhan, China end of 2019 however, the virus is still unravelling. The different mutations of the virus that have been reported in the UK and other parts of the world is especially a worrisome challenge for stakeholders in the transport industry. This is because the more prevalent the virus remains, the more possibility of more lockdowns and palpable fear and anxiety for travel by commuters. All of these will likely severely impact the transport industry in terms of revenue and if this phenomenon is prolonged then some companies may become insolvent.

The UK went into another lockdown with different tiers recommending different measures that the government hopes will curb the further spread of the virus. Whenever the lockdown is lifted, the transportation industry will likely experience the slowest pace of development as certain travellers may remain sceptical about the safety of public transport systems. When the lockdown is over, the industry will remain volatile as a report of another outbreak even if unconfirmed could create panic which could negatively affect the fortunes of transport companies.

Package and Luggage Delivery Services among the Hardest Hit

Tourism and transportation have a lot more in common than just the letter “T”, they are intertwined and complement each other. Globally, the tourism industry contributed to $8.9 trillion to the global GDP in 2019. Tourism is also a major employer of labour all around the world. Since travelling is deemed a type of education in itself, luggage service companies have been a major facilitator of tourism even though their role seems negligible. As individuals and groups travel from one location to another, luggage service companies have been profiting hugely. However, since the pandemic has involved a lot of travel restrictions and lockdowns, patronage of package delivery and luggage service has been reduced. Businesses operating along the busy pre-pandemic shipping route between the United Kingdom and New Zealand have had to adjust to strict lockdowns and closed routes. The luggage companies based in the United Kingdom have faced the same challenges as the package services operating the opposite route from New Zealand to the United Kingdom. During the pandemic, borders were closed, making international logistics difficult to predict. The ray of hope, however, is that coronavirus is not the first global pandemic and since the world was able to recover from the previous one then a full recovery from this pandemic is possible, although it may take a while.

Travel Insurance and Travel Accessories Companies also Affected

Travel insurance feeds off a rise in the volume of travel bookings and this applies to entrepreneurs involved in the sale of travel accessories. The relevance of their service offerings or the sustainability of their organization is tied to a higher volume of travels. It is therefore apt to state that the solution to the depression suffered from this pandemic can only be eased when full recovery has been made. Occasionally, high demand may be recorded in spite of the lockdown due to many people deciding to travel immediately after the relaxation of a lockdown. However, even this would be rare and unsustainable. Even when travel restrictions have been lifted, the rigours involved in undertaking a trip such as being quarantined and tested on arrival may be so discouraging for prospective travellers and since the option of virtual meetings has largely increased in recent times, it’s hard to predict a profitable year ahead for travel insurance companies.

While some sectors of the economy can be flexible and may operate virtually, the transport industry does not have this luxury and heavily relies on physical congregation and movement. Although significant advancements have been made in the fight against the virus based on the development of vaccines, until the virus is completely eradicated then a complete recovery for the transport sector is unlikely both in the UK and other parts of the world. The good news is that the state of events in the travel industry will not remain like this forever, it will pick up at some point but how soon it will remain unknown for now.