Interview to the Managing Director Massimiliano Molinu of Gruppo Turmo Travel

  • 27 Apr 2020

From coaches in 1890 to a group of companies that year after year see a steady growth in turnover. What is the secret of a constantly evolving reality?

The intrinsic participation of the family in every step of the production process. As the numbers grow, the delegations grow, but we never lose the control of the process. Attention to quality, consumption, and possible economies of scale have rewarded us.

What consequences did Covid 19 have in the tourism sector and especially in the field of people transport?

A contraction of 95% of demand, an expected flow for 2020 in strong decline compared to expectations. Today in the most optimistic scenario we think of an expected economic result of less than 75% of 2019 turnover, a year that, fortunately, has seen us exceed the targets set and that is helping us today. Currently we have active only 50% of the Public Transport services that represents 15% of the total turnover, while the whole rental sector with driver both for cars and buses is completely still and already suffers from cancellations of important schedules of foreign markets.

How are you reacting to this unprecedented crisis?

We use social shock absorbers for employees in force, we have prepared moratoriums for Financing and Leasing, we try to squeeze all costs to the maximum to save part of the liquidity that will surely make a difference to the restart. We very much regret how the Government responds to this crisis, we understand the difficulty of the moment, but currently they have prepared guarantees projects in order to to draw on other funds that are still not transposed and active by the banking system. We must take in consideration that in the seasonal tourist company, especially in Sardinia, the annual turnover comes mainly from 5/6 months of activity, the same activity that is now affected because of the COVID. Each entrepreneur maximizes its revenues in the months of May/October, the same revenues that allow beyond the payment of the current operations also the reorganization of the future reopening of 2021.

Share with us your perspectives on the season 2020…

It will be a year of big economic and social sacrifices.

We had an economic fabric that on average used to pay after 60 days, company structures of costs, ready in February to make a great summer season and now we have structures probably oversized for the production that awaits us. Those who will have the strength to anticipate or to stretch the variable costs of production and to endure the possible lengthening of the payments will float for this year, the others will lose market share. I have great confidence for the Luxury and Medium-High individual Market in July, August and September but many concerns for the Medium, Medium-Low market and group trip.

At the present time, I find it difficult for a tour operator with pre COVID 19 weighted selling prices to be able to take the risk, if not almost obliged, of higher costs, dictated by social distances, caused by air and land transport and probably higher costs of the structure that will have to reach its break even with a lower occupancy than expected.