There is no doubt that travel in every market around the globe has been impacted by the restrictions being imposed to contain Coronavirus, and business travel has not been immune.
There is much conjecture about the duration of these restrictions, but the reality is that right now nobody really knows, and the best guesses are anywhere between 3 and 12 months before the brakes come off.
What we do know is that the crisis is temporary, and at some point business travel will need to resume, for all the reasons that it existed in the first place. Whether that’s a slow ramp up or a ‘J-curve’ spike in bookings due to pent-up demand is still uncertain.
We’re not just a fair-weather friend
The impact this crisis has had on Serko’s travel management company (TMC) partners and their corporate customers is nothing less than extreme. Travel bookings, and therefore the source of revenue for TMCs and indeed for Serko, have decreased dramatically.
Serko’s position is that every single one of us stands ready to do everything we possibly can to help our partners through these challenging times, and in whatever form that may take – be it contract flexibility, marketing and commercial support or simply personal outreach.
We’re facing the storm head-on
Serko has taken firm and decisive action to keep our people safe and to respond to the macro-economic situation. We are in a fairly unique position of being able to use this period of slow client activity to pivot our resources and draw on our strong cash reserves to invest for the growth opportunities the recovery will present.
Our CEO Darrin Grafton summed it up in a recent market release “Our priority during this period of uncertainty is to maintain Serko’s current balance sheet strength and position. Our focus is ensuring the company continues to grow following this challenging trading period.”
Finding opportunity amid the chaos
As an integrated travel and expense technology company, Serko is in the fortunate position of having both a diversified revenue base and a compelling business solution to the challenge all organisations now face of needing to implement and enforce travel and expenditure controls.
With an experienced leadership team that has decades of experience in the travel industry, digital solutions and eCommerce, we have acted swiftly to adapt our 2020 strategy plans and prioritise investment into initiatives that we believe will present the most upside as the impacts of the crisis unwind in various markets.
“Serko presently has a strong cash balance, following its successful capital raising undertaken late last year, and the Executive Team and Board are optimising the business for long-term growth by carefully managing the allocation of capital during this period.” added Darrin.
In the market shift that accompanies any crisis, opportunity exists for those companies who are agile enough to solve the business challenges of the new paradigm. Serko is committing its capital and human resources to make sure our company and our partners are in pole position when the race resumes and the brakes come off business travel.