#because we (uk specifically other global north countries generally) are SO LOCKED IN to the hierarchy
Explore tagged Tumblr posts
Text
talking to friends about The Horrors, specifically the Trumpian Horrors, and, like
the more I consider it, the more I think that the best thing we outside the US can do - for ourselves, for the world, and for America as well - is to just holler to the fucking rooftops that AMERICA IS NOT THE WORLD.
By which I mean:
we do not let politicians, media, and our own social circles convince us that American issues are the only issues worth discussing;
we challenge politicians, media, and our own social circles on the politics of appeasement;
we challenge ourselves on the assumption that laws passed in the US affect us directly, and we do not place ourselves in American shoes;
we focus on our own shit. Not because it's more important, but because we need to remember that it still exists. Our eyes cannot be on the USA while the legislative and political rights in our own countries are eroded from under us.
we look to the rest of the world. We get used to viewing people who don't look like us, talk like us, or even like us as an equal and crucial part of the political landscape.
WE ARE LOUD ABOUT THIS. In politics, in activism, in social contexts, in our own assessment of our own politics, we remember and hold up that America is NOT the centre of the world, and that American hegemony is NOT inevitable.
This is not because I'm trying to undermine American struggles. This is because the Trump administration is strengthened and bolstered by every other country that chooses to suck the cock of American supremacy in the desperate attempt to maintain the last remnants of the old imperial order.
It is up to everyone in the world to challenge that, and to say: yeah, this fucking sucks, and we want America to be better, but we don't need America.
There are other markets. There are other allies and potential allies. There are other global powers (Personally I think we should try to dismantle global powers entirely, but, you know, one battle at a time) and there are other political shifts.
So much of the current rightward swing in the UK, at least, is directly modelled on MAGA to the point that it's the same movement, to the point where the branches of that movement feed power and influence to one another. You know what has consistently been one of the more successful tactics? Fucking reminding people that they are not, in fact, offering solutions to the problems Britain faces, because these are American solutions and we are not America.
idk it feels stupid to say this. it feels stupid to have to point out that Not Everywhere Is America, and it feels even stupider to think that this is something that needs pointing out to the systems of power. But the more I think about it, the surer I am that one of the tentpoles of American power, and therefore of Trump's power (in the US as well as beyond it!) is just... the willingness of so much of the world to say: yeah, sure, everything is America.
WE ARE NOT AMERICA.
AMERICA DOES NOT HAVE TO CONTROL US.
idk. maybe it won't change shit. but maybe yelling that at international power structures loudly enough - making noise about issues that are not American, focusing our efforts outside America, challenging American supremacy on the global stage - is, in fact, the most useful thing we can do.
#and this is NOT a call to ignore the dangers of an expansionist right-wing autocracy#this is a call to note them. watch them. and then talk about other things.#not even “never talk about the usa” but... like. challenge yourself. ask WHY the usa is always the first country to come up.#it's a fine line to draw bc like... ignoring problems does not make them go away#but nor does lavishing 100% of your attention on things outside your sphere of control#trump and his government act with impunity in part because the WORLD political establishment so frequently treats them as gods#because we (uk specifically other global north countries generally) are SO LOCKED IN to the hierarchy#we don't even necessarily see it! it's just a fact of political discourse that America Is The Great World Power#but that can and should be challenged. because: why tho?#but as long as the gop know they can browbeat the eu and un and nato into literally fucking anything#they will continue to act with impunity#but tbqh it is sound and fury signifying nothing! what are you gonna do? invade every country in the world?#national power is a story. that's all it ever is. it's a narrative that grows and strengthens through belief.#and unfortunately we cannot just stop believing in it. but we can challenge that belief. and i think we have to.#we have to look american crises dead in the face and say “yeah ok that's shit. and what else?”#idk i'm open to debate/argument on this (to a point) but this has moved from a personal gripe to#i actually think this is the best thing we can do communally?#...also when we accept american supremacy we also take on the exhaustion of american subjects#and then we lose all ability to provide support and perspective for those who are directly in the firing line#important imo to focus on sympathising with not identifying with#solidarity does NOT mean homogeneity. being conscious of our place outside the regime is also an important thing.#accept the limitations on what we can do to change it#but also accept that we are not the subjects of legislation or policy.#and most of all that we are not MORE beholden to solidarity with americans than with palestinians or sudanese or congolese or anyone else#idk it's 4am i'm probably not making much sense#but i feel Very Strongly
0 notes
Text
Greta Thunberg speech to MPs at UK Parliament Tue 23rd Apr
My name is Greta Thunberg. I am 16 years old. I come from Sweden. And I speak on behalf of future generations.
I know many of you don’t want to listen to us – you say we are just children. But we’re only repeating the message of the united climate science.
Many of you appear concerned that we are wasting valuable lesson time, but I assure you we will go back to school the moment you start listening to science and give us a future. Is that really too much to ask?
In the year 2030 I will be 26 years old. My little sister Beata will be 23. Just like many of your own children or grandchildren. That is a great age, we have been told. When you have all of your life ahead of you. But I am not so sure it will be that great for us.
I was fortunate to be born in a time and place where everyone told us to dream big; I could become whatever I wanted to. I could live wherever I wanted to. People like me had everything we needed and more. Things our grandparents could not even dream of. We had everything we could ever wish for and yet now we may have nothing.
Now we probably don’t even have a future any more.
Because that future was sold so that a small number of people could make unimaginable amounts of money. It was stolen from us every time you said that the sky was the limit, and that you only live once.
You lied to us. You gave us false hope. You told us that the future was something to look forward to. And the saddest thing is that most children are not even aware of the fate that awaits us. We will not understand it until it’s too late. And yet we are the lucky ones. Those who will be affected the hardest are already suffering the consequences. But their voices are not heard.
Is my microphone on? Can you hear me?
Around the year 2030, 10 years 252 days and 10 hours away from now, we will be in a position where we set off an irreversible chain reaction beyond human control, that will most likely lead to the end of our civilisation as we know it. That is unless in that time, permanent and unprecedented changes in all aspects of society have taken place, including a reduction of CO2 emissions by at least 50%.
And please note that these calculations are depending on inventions that have not yet been invented at scale, inventions that are supposed to clear the atmosphere of astronomical amounts of carbon dioxide.
Furthermore, these calculations do not include unforeseen tipping points and feedback loops like the extremely powerful methane gas escaping from rapidly thawing arctic permafrost.
Nor do these scientific calculations include already locked-in warming hidden by toxic air pollution. Nor the aspect of equity – or climate justice – clearly stated throughout the Paris agreement, which is absolutely necessary to make it work on a global scale.
We must also bear in mind that these are just calculations. Estimations. That means that these “points of no return�� may occur a bit sooner or later than 2030. No one can know for sure. We can, however, be certain that they will occur approximately in these timeframes, because these calculations are not opinions or wild guesses.
These projections are backed up by scientific facts, concluded by all nations through the IPCC. Nearly every single major national scientific body around the world unreservedly supports the work and findings of the IPCC.
Did you hear what I just said? Is my English OK? Is the microphone on? Because I’m beginning to wonder.
During the last six months I have travelled around Europe for hundreds of hours in trains, electric cars and buses, repeating these life-changing words over and over again. But no one seems to be talking about it, and nothing has changed. In fact, the emissions are still rising.
When I have been travelling around to speak in different countries, I am always offered help to write about the specific climate policies in specific countries. But that is not really necessary. Because the basic problem is the same everywhere. And the basic problem is that basically nothing is being done to halt – or even slow – climate and ecological breakdown, despite all the beautiful words and promises.
The UK is, however, very special. Not only for its mind-blowing historical carbon debt, but also for its current, very creative, carbon accounting.
Since 1990 the UK has achieved a 37% reduction of its territorial CO2 emissions, according to the Global Carbon Project. And that does sound very impressive. But these numbers do not include emissions from aviation, shipping and those associated with imports and exports. If these numbers are included the reduction is around 10% since 1990 – or an an average of 0.4% a year, according to Tyndall Manchester.
And the main reason for this reduction is not a consequence of climate policies, but rather a 2001 EU directive on air quality that essentially forced the UK to close down its very old and extremely dirty coal power plants and replace them with less dirty gas power stations. And switching from one disastrous energy source to a slightly less disastrous one will of course result in a lowering of emissions.
But perhaps the most dangerous misconception about the climate crisis is that we have to “lower” our emissions. Because that is far from enough. Our emissions have to stop if we are to stay below 1.5-2C of warming. The “lowering of emissions” is of course necessary but it is only the beginning of a fast process that must lead to a stop within a couple of decades, or less. And by “stop” I mean net zero – and then quickly on to negative figures. That rules out most of today’s politics.
The fact that we are speaking of “lowering” instead of “stopping” emissions is perhaps the greatest force behind the continuing business as usual. The UK’s active current support of new exploitation of fossil fuels – for example, the UK shale gas fracking industry, the expansion of its North Sea oil and gas fields, the expansion of airports as well as the planning permission for a brand new coal mine – is beyond absurd.
This ongoing irresponsible behaviour will no doubt be remembered in history as one of the greatest failures of humankind.
People always tell me and the other millions of school strikers that we should be proud of ourselves for what we have accomplished. But the only thing that we need to look at is the emission curve. And I’m sorry, but it’s still rising. That curve is the only thing we should look at.
Every time we make a decision we should ask ourselves; how will this decision affect that curve? We should no longer measure our wealth and success in the graph that shows economic growth, but in the curve that shows the emissions of greenhouse gases. We should no longer only ask: “Have we got enough money to go through with this?” but also: “Have we got enough of the carbon budget to spare to go through with this?” That should and must become the centre of our new currency.
Many people say that we don’t have any solutions to the climate crisis. And they are right. Because how could we? How do you “solve” the greatest crisis that humanity has ever faced? How do you “solve” a war? How do you “solve” going to the moon for the first time? How do you “solve” inventing new inventions?
The climate crisis is both the easiest and the hardest issue we have ever faced. The easiest because we know what we must do. We must stop the emissions of greenhouse gases. The hardest because our current economics are still totally dependent on burning fossil fuels, and thereby destroying ecosystems in order to create everlasting economic growth.
“So, exactly how do we solve that?” you ask us – the schoolchildren striking for the climate.
And we say: “No one knows for sure. But we have to stop burning fossil fuels and restore nature and many other things that we may not have quite figured out yet.”
Then you say: “That’s not an answer!”
So we say: “We have to start treating the crisis like a crisis – and act even if we don’t have all the solutions.”
“That’s still not an answer,” you say.
Then we start talking about circular economy and rewilding nature and the need for a just transition. Then you don’t understand what we are talking about.
We say that all those solutions needed are not known to anyone and therefore we must unite behind the science and find them together along the way. But you do not listen to that. Because those answers are for solving a crisis that most of you don’t even fully understand. Or don’t want to understand.
You don’t listen to the science because you are only interested in solutions that will enable you to carry on like before. Like now. And those answers don’t exist any more. Because you did not act in time.
Avoiding climate breakdown will require cathedral thinking. We must lay the foundation while we may not know exactly how to build the ceiling.
Sometimes we just simply have to find a way. The moment we decide to fulfil something, we can do anything. And I’m sure that the moment we start behaving as if we were in an emergency, we can avoid climate and ecological catastrophe. Humans are very adaptable: we can still fix this. But the opportunity to do so will not last for long. We must start today. We have no more excuses.
We children are not sacrificing our education and our childhood for you to tell us what you consider is politically possible in the society that you have created. We have not taken to the streets for you to take selfies with us, and tell us that you really admire what we do.
We children are doing this to wake the adults up. We children are doing this for you to put your differences aside and start acting as you would in a crisis. We children are doing this because we want our hopes and dreams back.
I hope my microphone was on. I hope you could all hear me.
2 notes
·
View notes
Text
British Military Prepares for Climate-Fueled Resource Shortages
When we don’t plan and prepare from a whole-systems perspective, our societies tend to respond to escalating crises by becoming more militarized to maintain order and control in an environment of escalating chaos. The irony is that this only tends to make our institutions even more brittle, weak and rigid—unable to meaningfully address the root causes of rapidly changing conditions.
That’s why we should be concerned to discover that the British government is planning for the inevitability of a catastrophic rise in global temperatures of nearly 4 degrees Celsius due to business-as-usual carbon emissions. The revelation comes from new research commissioned by the Ministry of Defence (MOD) in November 2019 to inform the MOD’S climate change strategy.
Noting that global temperatures “have been rising across the globe since the 1950s”, the final report from the MOD project published in June claims that “this trend is expected to continue and temperatures are predicted to increase by 2.3–3.5°C by 2100, despite the commitments of the 2016 Paris Agreement to limit the temperature rise to 1.5 degrees Celsius, by 2100.”
The report, titled A Changing Climate: Exploring the Implications of Climate Change for UK Defence and Security, uses this scenario of a potential 3.5°C temperature rise by end of century to forecast major new climate change developments “which will require increase demand for the Armed Forces to respond to unforeseen or extreme climate-related events, both at home and abroad.”
The report was prepared by the Global Strategic Partnership, an academic and industry consortium led by think-tank RAND Europe, convened to support the MOD’s Development, Concepts and Doctrines Centre, which studies strategic trends for the UK government.
A spokesperson for the MOD told me that the report had been commissioned “to understand how defense can best adapt to the challenges of climate change, whilst maintaining critical defense outputs.” She said that the report “will contribute to our ongoing Climate Change and Sustainability Review and help to inform the government’s wider Integrated Review.”
A Catastrophic Scenario
A potential 3.5°C temperature rise is well beyond the 1.5°C level considered by scientists as an upper ‘safe limit’ to avoid tipping planetary ecosystems into a dangerous climate era.
But what’s notable is that the report to the MOD doesn’t treat this as merely one potential worst-case scenario out of many, for the purpose of contingency planning. Instead, it puts forward the scenario unequivocally as an outcome which the UK government should simply expect to happen, rather than attempt to avoid.
This level of temperature rise, it acknowledges, would usher in a new era of catastrophes consisting of more frequent “extreme weather events, such as droughts, heatwaves, floods, heavy rainfall, storms or hurricanes”; the disappearance of Arctic sea ice “before 2050”; “rising sea levels in coastal regions and severe droughts in the Sub-Saharan region” which could “trigger population displacement”; as well as “natural resource shortages and competition as drinking water becomes scarcer and crop yields lower, or as crops are destroyed by extreme weather.”
2030 Perfect Storm
In this business-as-usual scenario, the report warns that as early as 2030, the world would face a perfect storm of food, water and energy crises.
“The demand for food and energy is estimated to rise by 50 percent by 2030, while water demand has been projected to increase by 30 percent,” the report concludes: “In regions where food shortages are combined with poor governance, climate change could contribute to civilian protests, rioting and an increased likelihood of violent conflict.”
Climate change would also drive greater risks of exotic disease outbreaks, while simultaneously disrupting transportation networks needed to sustain healthcare delivery and critical national infrastructure.
That the MOD is increasingly taking climate change seriously is of course welcome.
What isn’t welcome is the unshakeable assumption that by the end of this century, global average “temperatures will have risen by a predicted 2.3 to 3.5 degrees Celsius by 2100.”
Unfortunately, this grim expectation is based on analyzing a recent data from the United Nations Intergovernmental Panel on Climate Change (IPCC). The IPCC has warned that current government mitigation ambitions under the Paris agreement are heading well beyond the 1.5°C target toward exactly this dangerous scenario.
In other words, Prime Minister Boris Johnson’s defense mandarins are developing their new climate change strategy on the basis of assuming that current government business-as-usual approaches aren’t about to change.
What the MOD report neglects to acknowledge is that a 3.5°C global temperature rise represents the level of warming we would see if governments meet the inadequate emissions goals they signed up to under the Paris agreement. But as a team of climate policy scholars recently observed: “All major industrialized countries are failing to meet the pledges they made to cut greenhouse-gas emissions.”
This means that the catastrophic scenario expected by the MOD could still be conservative.
The economically optimal 3.5°C world
There could be broad ideological reasons behind the consistent reluctance of world governments to step up their climate commitments.
It so happens that the 3.5°C scenario has been prominently articulated not by the IPCC, but by the Dynamic Integrated Climate-Economy (DICE) model developed by economist William Nordhaus of Yale University. In this scenario, the world reaches 3.5°C by around 2100 and then continues to warm up to 4°C through the next century.
This model, which has significantly influenced government thinking around climate mitigation, sees 3.5°C as a desirable goal for international climate policy. But rather than aiming for climate safety, its goal is “economic efficiency.”
The idea is that it is better to ensure GDP growth now even if this locks-in dangerous warming, because this will mean that future generations will have far more wealth and therefore greater capacity to respond to climate catastrophe.
This scenario also coheres with the Trump administration’s expectations on climate change.
Two years ago, the Trump administration’s National Highway Traffic Safety Administration (NHTSA) concluded global temperatures would rise by as much as 4°C by 2100. Avoiding this outcome would require a shift away from fossil fuels that “is not currently technologically feasible or economically feasible,” the NHTSA report claimed, echoing Nordhaus’ thinking.
But Nordhaus was wrong. As a new study in Nature Climate Change found in July, many of his fundamental assumptions are outdated, and derived from “methodological shortcomings.”
The reality is that staying within the 1.5°C target for climate safety is feasible through a rapid transformation of energy, economy, land-use systems, agriculture, reforestation, and life-style changes—radical policy shifts which neither the US nor UK governments are pursuing.
The MOD’s current planning approach, then, is being developed on the basis of current government business-as-usual policy, which happens to closely fit the scenario that William Nordhaus considers “economically optimal.”
For all practical purposes, climate safety is being sacrificed on the altar of GDP.
When the climate collapses, war will save us
It is unsurprising, then, that having accepted the inevitability of catastrophic warming, the report calls for a massive program of new UK military interventions in response to a scenario of accelerating climate crises around the world.
The report identifies two main areas of heightened military activity. The first is “Military Aid to the Civil Authorities (MACA)” where British army support increasingly goes toward supporting societal functions in the homeland. This “is likely to grow in importance as more climate-related disaster events affect the UK.”
The second is “Humanitarian Assistance and Disaster Relief (HADR)”, which “the Armed Forces may be requested to provide… to local agencies overseas as part of UK commitments to international disaster relief.”
One major area where the UK military is urged to increase focus is “the Arctic and High North”, which rising temperatures are making “more accessible and transforming… into a new geostrategic area of focus.”
According to a 2018 report by the House of Commons Select Committee on Defence, the key interest in the Arctic is “the possibility of exploiting resources that have previously been inaccessible or commercially unviable to access” due to the loss of sea ice:
“In 2008, the US Geological Survey (USGS) estimated that technically recoverable resources in the Arctic amount to around 30 percent of the world’s undiscovered gas and 13% of the world’s undiscovered oil… The region is also thought to contain considerable reserves of rare earth metals and minerals.”
Projecting influence in the Arctic and beyond
Thus, the RAND Europe report urges the MOD to ensure a major military role for the UK in the Arctic to “project diplomatic influence in the global strategic security arena.” This militarisation of the response to climate change is also a way of countering the UK’s great power rivals:
“UK preparedness to deploy in response to climate-related events could become part of strategic messaging to UK and NATO adversaries… Moreover, if adversaries are seen to be more active in addressing climate change issues or in implementing expeditionary missions in relation to climate change, this may have strategic implications for the UK’s ability to project diplomatic influence in the global strategic security arena.”
Thus, the Arctic is expected to increase in strategic importance as climate change causes melting ice to make its mineral resources increasingly available.
“Specifically, the UK Armed Forces’ preparedness to operate and carry out expeditionary missions in the High North and Overseas Territories as part of climate-related crisis response operations could become more important in the future,” the report explains.
“With a focus on the Arctic and High North in particular, the opening of new geo-strategically important regions could also have significant implications for global shipping patterns—including for defence equipment transportation routes—particularly if military presence in the region is enhanced.”
Other regions where UK military interventions may become more commonplace could be in relation to climate-related disasters in the Caribbean, East Asia and Sub-Saharan Africa.
British military forces may also be called on to respond to flooding in major cities. This, the report says, could become a regular occurrence given that approximately 50 percent of the global population lives in coastal regions, with most of the world’s largest cities on or near the coast.
“Resource shortages”
Such purportedly humanitarian operations might also be needed to alleviate “resource shortages” due to complex climate impacts, the report admits:
“Climate change may necessitate lengthy HADR operations and environmental disaster relief interventions, while also requiring the ability to provide agile, short-term support in response to climate-related crises. Furthermore, resource shortages could lead to increased conflict and instability, requiring additional military operations.”
Resource shortages could directly undermine UK military operations by impacting key supply chains due to disruption from “extreme climate events.” In other words, the UK military might need to go to war simply to ensure its ability to go to war (by stabilising access to critical resources).
“Defence industry infrastructure is also likely to be exposed to climate-related events that could disrupt parts of or whole supply chains, affecting the supply of essential equipment and battle-winning capabilities,” the report warns.
Britain might lose “access to supply chain inputs such as minerals used for manufacturing defence equipment, platforms and components,” or if “violent conflict takes place in mineral-mining regions as a result of resource shortages.”
Such disruption could, in turn, undermine “force readiness.”
The MOD’s current planning approach demonstrates what happens when governments continue business-as-usual in the face of climate catastrophe: the military ends up stepping in to exert control. The problem is that you can’t defeat climate change with military intervention. In reality, then, the MOD’s climate strategy amounts to a recipe for losing control.
British Military Prepares for Climate-Fueled Resource Shortages syndicated from https://triviaqaweb.wordpress.com/feed/
0 notes
Text
Three travel startups tell us how they’re responding to the coronavirus crisis
With the globalized world going into partial or complete lock down over the Covid-19 pandemic, startups in the travel sector are facing a huge stress test and immediate disruption to business as usual as public health concern spirals and entire populations are encouraged or even forced not to travel.
The traditional travel hub of Europe has emerged as a secondary hotspot for the virus, after SARS-CoV-2 first emerged in China late last year.
Italy, France and Spain have all reported thousands of cases apiece, with the latter declaring a state of high alert today. Earlier this week Italy — the hardest hit EU country so far — imposed nationwide travel restrictions, with confirmed cases passing 12,000 as of yesterday. Several other EU countries have also implemented varying quarantine measures. More lockdowns are expected in the coming weeks.
In a further development, US President Trump sent shockwaves through EU institutions earlier this week by unilaterally announcing a 30-day ban on travel from most countries in the bloc.
Today the European Commission came out with its own response — laying out a $37BN package of measures intended to mitigate the socio-economic impact of Covid-19, including bringing forward €1BN out of the EU budget to act as a guarantee to the European Investment Fund to encourage banks to lend to SMEs in affected sectors.
“This is expected to mobilise €8BN of working capital financing and support at least 100,000 small and medium-sized businesses and small mid-cap companies in the EU,” the Commission said, suggesting banks will be in a position to act on the liquidity injection from April 2020.
Of course travel startups with investor capital in the bank aren’t waiting around to react to the coronavirus crisis. They’re already ripping up 2020 roadmaps and thinking again — swapping out marketing plans and doubling down on product and engineering, according to three businesses we spoke to.
We asked three European travel startups how they’re being impacted by the coronavirus crisis and what steps they’re taking to manage a demand crunch combined with ongoing — and potentially long term — uncertainty in the sector.
Berlin-based GetYourGuide, which has built a marketplace selling sightseeing tours and other travel experiences, and last year bagged a $484M Series E round; Omio, another Berlin-based startup that’s built a multi-modal travel aggregator and booking platform, backed by nearly $300M to-date; and Barcelona-based TravelPerk, a fast-growing business travel booking platform that’s pulled in more than $130M in VC funding as it shakes up a legacy space.
“Demand is dropping off a cliff”
All three told us they’ve seen a major drop in bookings combined with a rise in customer service demand as people with existing travel plans seek to get in touch to cancel or reschedule trips.
As of this week GetYourGuide said bookings for new experiences are down nearly 50% globally vs its demand forecasts for the past two weeks. While customer service enquiries have tripled in the past two weeks, and its global cancellation rate has ticked up by 20%.
Those that are still planning trips are doing so closer to home or with less advanced notice than normal — with bookings made within three days of the start time up 15%.
“It’s the biggest nuclear winter I’ve ever seen in online travel,” co-founder and CEO Johannes Reck told TechCrunch. “Everyone goes and prepares for Easter break and that is not at all happening. All of the European countries seem to be in lockdown.
“None of our Italian customers are booking, the German customers have degraded rapidly. France and Spain have recently followed. The UK has been more stable but seems to follow the same course now. And the US since [Trump announced the travel ban] as well… The US travel ban is now sealing it. So this will be a year of extreme turbulence of the travel market.”
For Omio it’s a similar story — with bookings over the last two weeks down between 30-40% overall across all markets, according to founder and CEO Naren Shaam, and a big spike in demand for customer service as worried customers look to cancel trips.
“The whole company is actually stepping in to help customer service because we’ve seen a spike in cancellations,” he said. “In general the impact is heavy. Demand is dropping off a cliff but it’s not as bad as we thought — but it is definitely heavy.”
It’s seeing similar changes in booking behavior. “Advanced booking has come down drastically,” he noted. “But we see a spike in short term last minute trips when people feel comfortable on the region — so that’s gone up a lot.”
TravelPerk told us it’s currently dealing with a drop in business globally of around 50%. Though co-founder and CEO Avi Meir is braced for further drops if more of the West goes into lockdown forcing more companies to scrap business trips.
“You would expect that it dropped to zero but right now people are still travelling,” he told us. “Everybody who can avoid traveling right now probably should and does but you have many people who just critically have to keep travelling — so we see around 50% drop right now.”
“Regionally of course as expected APACS has been the most affected in terms of our volumes — Japan, South Korea, Hong Kong and China down north of 95%. 100% depending on which day you’re looking and what country you’re looking at,” he added. “China is actually starting to open up a little bit but at the peak we looked at 100% — nothing was being booked in terms of destination.
“In terms of the more core markets for us, Italy is 84% down right now… You also see significant impact in Belgium, Netherlands, Holland, Sweden.
“France, Spain and UK are down year-on-year but not significantly yet. In the Western part of the continent and the UK people are still traveling relatively more than other countries.”
Demand for TravelPerk’s customer support has also never been so busy, he also said.
“We actually are switching some of our sales team to customer support in the coming weeks just to support the volume of tickets,” he noted. “We’re very proud that our metrics are not declining — meaning specifically service level; how fast we solve cases; our ‘C-sats’, customer satisfaction. The metrics we really care about. Are people happy and are we solving their cases fast?
“We’re keeping them although, so far, the past weeks have been the busiest in customer support since we started the company via number of tickets.”
TravelPerk has also seen radical changes to the usual booking window. “Most of the trips we see right now is somebody booking for tomorrow or for two days from now because they for know they can travel or have certainty they can travel,” said Meir. “Which is unusual compared to normal times. In normal times people book 20-21 days ahead on average. So you have a huge decrease in the booking window.”
While of its flagship products is actually seeing high demand in the current crisis situation, per Meir — given it’s designed to offer resilience against unforeseen changes to plans.
“We have this product, FlexiPerk, which allows the users to cancel or change for any reason and if they do they get at least 90% of the money back. FlexiPerk has been really, really on fire over the past few weeks — both in terms of users, those who are already on FlexiPerk and also new sign-ups which is actually driving a lot of our growth in terms of signs ups.
“It gives people the certainty — or it reduces the uncertainty — about the mid- term or long term future. So if you are planning a trip in September or in October it’s reasonable to expect to be able to travel but you don’t really know. And FlexiPerk really plugs this gap because it allows you to book now for September knowing that if you have to change your plans you can do so without losing the money.”
“Right now most of the airlines have changed their cancelation policies so we are able to get full refunds in many cases,” he added.
All three European businesses said the changes in demand had hit extremely rapidly.
“Up until maybe 2-3 weeks ago we were still growing,” Meir told us. “Because most of our travellers — or at least the headquarters of the travellers — are concentrated in Europe and North America so the impact was kind of delayed.”
“Since we’re more a global business we already started noticing Chinese outbound dropping — because we have an office in China — it hit us already around January, February. So we already saw that in our Chinese outbound dropping by 90+%,” added Omio’s Shaam.
GetYourGuide’s Reck said it was also forewarned of the looming crunch via their Asian business.
“We had already seen a significant decline in our Asian business,” he told us. “That was still so small and the overall growth in Europe and the US was so strong that it was negligible at that point in time — but it gave us a glimpse.”
Two of its investors, Japan-based Softbank and Singapore-based Temasek, also put GetYourGuide on early “red alert” over the novel coronavirus because other portfolio companies were suffering heavy impacts.
“We had two weeks to prepare which I guess put us ahead of the curve for most other US and European companies,” said Reck. “Then when corona hit, at the end of February, we’ve seen a very rapid decline and now the current global travel demand is roughly 60% down from where it should be at this point in time so we are massively depressed.”
The change is more marked for being set against “a tremendous start to the year” before the virus hit Europe — Reck dubs it “the best time in history of the company” — with January and February seeing it close to doubling business.
Rerouting resources in a travel crunch
So how are the three founders coping with a sudden revenue crunch combined with spiralling global uncertainty falling over their sector?
All three described being relatively well cushioned — on account of recent financing.
“We are in an incredible position because we’ve raised this massive round last year and we haven’t spent a lot of it,” said GetYourGuide’s Reck. “We’ve been very frugal with it. In the early months after the fund raise SoftBank was very angry with us that we were so disciplined and we weren’t investing more in growth. Now they’re, I think, very, very happy — the new role model for the portfolio.
“The good news is that as we come from a position of strength and we will survive and prevail for sure. That’s the positive news.”
With plenty of capital still in the bank the team has been able to quickly redirect resources on servicing near-term customer needs during the travel crunch.
“The way we’re seeing this internally is with every major crisis comes major opportunity. At this point in time we believe there’s incredible opportunity to make a real different for our customers, our suppliers and our ecosystem broadly,” Reck added. “For instance, for customers we have pushed immediately after we saw the news coming full flexibility on bookings and cancelations.
“Customers can now cancel all of the experiences 24 hours in advance, no questions asked, for a refund. If you go under 24 hours you actually get a gift coupon so you can rebook of the full value in the future. And if you’re affected by a lockdown you will get the full amount back no questions asked.”
“We’ve been doing mass cancellations for Italy. We’re just doing it for France. We’re doing it for the US because of the travel ban now. We refund our customers fully, no questions asked,” he added.
Reck also said it’s doing what it can to support suppliers who will also clearly be struggling from the same demand crunch.
“Wherever there’s an opening where we see demand popping up again we make sure it gets as quickly as possible to our suppliers,” he told us, saying its doubling down on its GetYourGuide Originals in-house short tours product. “We want to be a good partner. We don’t go in now and start to negotiate on commission rates or anything like that.”
Another area it’s spending on right now is localization — in order that it can support suppliers by being able to cater to demand cropping up off the beaten track.
“We’re translating our offering into more languages,” he noted. “We’re making sure the offering itself has better terms for the customers in terms of cancelation policies and we’re educating the suppliers around that — and that will ultimately drive their bookings. So we are doing quite a bit in order to make sure that they survive and that they get the revenue through our platform that they deserve.”
Zooming out, Reck told us he’s taking “a really long term view” on travel.
“The travel landscape through this crisis will inevitably change,” he predicted. “When the corona crisis is over online travel will look very different and just survival is going to be an incredible competitive advantage vs the rest. We believe that a lot of players will go bust. And we see that already as we speak so over the next couple of days you’ll see major layoffs, you’ll see restructurings, you’ll see people scramble.”
“That’s what we always said when we raised the SoftBank round. Ironically I never knew that long term view would actually mean that we freeze down for a year… but if you look at online travel over the course of history and you look at the big dips — like 9/11 was a massive dip and the following recession; the financial crisis was a massive dip — you see overall travel is a long term trend. And I think if you look at a ten year timespan even this corona crisis will just be a small dip in a growth curve.
“So I’m very long on travel over a longer period of time. And that’s where we’re doubling down. So we’re rather taking the opportunity now to really focus on product and engineering — and that’s something really liberating to me. Of not really having a 2020 budget anymore.
“The conversion gains on the margin won’t matter. So we can really double down on significantly improving the product for our customer and that means giving a better search and discovery experience, more personalized, curating more GetYourGuide Originals with our suppliers… So that when we come out of this crisis we come out with a better technology product and a much better supply base.”
“I think, as I said, just surviving will be a competitive advantage. Surviving with a better product and better supply will be magic — and that’s really what we’re betting on.”
Omio, meanwhile, is also in a position to look beyond the current crisis in demand.
“We are lucky to be well funded and have raised a lot of capital,” said Shaam. “We’re lucky to have very long term investors when you think of Kinnevik and Temasek — both of them…. almost like a mutual fund so basically long term capital.”
Nonetheless, the business has responded to plunging demand by trimming variable costs — while also viewing the demand crunch as an opportunity to rechannel investment into the core product.
“We’re cutting all variable costs, managing the costs better, taking precautions — using the crisis as an opportunity… fixing all the systems we could never invest in in scale because every month there’s a metric to meet. And really then rearchitecting for scalability,” he told us.
“Because the main thing is if you think of travel, human inherent desire to travel is never going to go down. Right now what we’re doing is bottling that in for 3-4 months but you’ve got to open the lid at some point — I hope — and when that comes out the demand will grow even faster. And we want to be ready for that. So we’re using this, call it, crisis as an opportunity to really build scalability. All the underlying architecture, campaign structures, whatever data flows were not perfect before, product messaging etc.
“The cash position of course is something we have an eye on, as stewards of capital, but it’s more so that we’re also using this as an opportunity to really think long term and how we actually benefit.”
Duty of care
As a crisis response, Shaam said Omio has put together three internal task forces to respond to immediate challenges — one focused on supporting its customers; another on its own employees; and a third concentrating on business stability and figuring out where to invest and where to pull back during unusual times.
On the customer support side Omio’s suppliers define cancellation policies so there’s only so much it can do but Shaam said it’s been putting out messaging to help users — creating a spreadsheet of cancellation policies listing companies that give refunds and those that don’t, and publishing updates on things like cancelled flights.
On the employee support side there’s a mix of well-being and practical issues being tackled.
“How can we protect safety regulations? Trigger points. We have clear guidelines… today we triggered that we work from home for 15 days,” he said. “How to protect mental health so nobody goes crazy sitting at home all day? Connectivity, all of that stuff. What if you have school shut down — how do you balance children at home alone with working at the same time? All of this stuff.
“There’s a lot of practical questions that come up — like the design team need to take their chunky monitors home so they can actually design. All of these things are being tackled by that task force.”
“As a startup you can actually bring these together very quickly,” Shaam added. “Today we had a small team — that team is now quite large, 10+ people going at all three workstreams. So let’s see how we survive.
“Again, there’s a lot of uncertainty but I feel that the best thing I can do is bring stability, bring confidence into the organization.”
TravelPerk’s Meir said the business is also most focused on responding to immediate challenges and needs — including keeping up with the demand it’s seeing.
Even though bookings are down new sign ups are up, he told us.
“The focus right now as an organization is really on the day by day — we need to make sure we keep providing the service,” he said. “We keep actually selling and a lot of companies are signing up. Sign ups are actually dramatically up. People are signing up they’re just obviously not travelling so we have a lot of short term priorities that are extremely important.
“Maybe if we hadn’t raised a C round last year — $100+ million — we would be in a different situation but right now we are fortunate to be in this position so we have to focus on short term priorities without knowing where it’s going to end.”
The company is also using a moment of plunging sales to direct attention on product. And is hiring more engineers to be able to accelerate product dev — including to build crisis response features.
“I’m sure we’re not unique in the tech world but we’re actually investing more in the product. So we keep hiring — we actually increased our hiring plan for product and engineering. And so far we’re not reducing our burn let’s say but we’re shifting that towards really what matters for our customers.
“We’re already ahead of the curve in product but this is a really good opportunity to keep pushing on our strengths and another one we’re doing is adjusting the business and the business model as well.”
Meir gave the example of a premium concierge service which it’s just decided to provide for free for all its users for the next three months. “Although it’s going to increase dramatically our costs in customer care it’s the right thing to do for our customers,” he said of that particular coronavirus triggered business adjustment.
“You’ll see some really cool stuff coming out,” he added. “The product team, together with the commercial team is changing roadmaps. In a way we threw the roadmap of 2020 to the bin and we started working on a weekly basis.”
Another example he gave is a new feature it’s launched in partnership with medical and travel security company, International SoS, to help companies not only track where in the world their employees are but ensure they have the medical or other crisis expertise support available should the worst happen off-site.
“It’s the best company in the world for duty of care,” said Meir. “It’s one of those topics that in normal times people don’t really like to think about it — but this is probably the highest request we were getting in the past 2-3 weeks from customers.”
“We went from idea to releasing it in less than 5 days of work,” he added. “So again reducing the risk, reducing the uncertainty piece. This is a thing that we’re going to do more and more as this situation evolves. If we have a request for a feature like ‘duty of care’ — which makes tonnes of sense right now — we’re going to shift the roadmap and do more of these kind of things.”
“This is a moment to be decisive and adaptable but also courageous and to invest in what makes TravelPerk stronger this year, next year and ten years,” he added. “This doesn’t change — we have great investors. We have a good cash position, great team. So we should keep hiring, we should keep investing in the product, we should keep investing in our service — so my biggest worry is that we [don’t] act out of panic or out of confusion — and that’s something we should be aware of and not do. But I’m happy to say that that’s not the case.”
As part of its own pro-active crisis response, TravelPerk has this week switched to 100% remote working — a radical change for Meir, who has deliberately required presence from his staff up to now for workplace culture reasons.
“We don’t do remote work. It’s something that’s one of these trendy things that we decided not to do yet for various reasons. We just think our culture is much stronger when people are physically in the same space and we switched from nobody does remote work to 100% remote,” he told us.
“We thought that the government — especially in Spain where most of our team is — is not reacting fast enough and aggressively enough [to Covid-19]. This is really unfair for the elderly and those who have previous health conditions…So we decided to take action… And I was just amazed how fast we transitioned from a company that doesn’t do remote to full on remote.”
GetYourGuide has also gone fully remote. “We did that on Monday,” said Reck. “Everyone called me crazy and now on Friday everyone wants to have our best practices playbook.”
“The health and safety of our employees and most importantly of the community around us [is our biggest concern],” he added. “We are in constant contact with everyone — to make sure people feel safe.
“They are now at home, they follow the news all the time. There’s huge psychological pressure — the travel market’s going down, the stock market’s going down — so for me by biggest role is to keep that strong engagement and morale and that people don’t feel threatened by the situation around them.”
As it happens, Reck is a biochemist by education — so likely one of relatively few founders in the travel space with hands-on lab experience of viruses. He’s also braced for the longest ‘nuclear winter’ of business disruption of the three startups we spoke to.
“What we know about this virus is there is no immunity in the population — meaning that this will continue to spread,” he said. “Every potential person is a host. And it’s very infectious and it seems to stick around quite a bit. And it puts a lot of stress on public health systems. So I personally anticipate there will be a very long lockdown in a lot of countries. And there will be only a very slow recovery. If you’d ask me we might see some reopening of the travel landscape in summer but I think that will be far diminished from a typical season. We’ll only see a full recovery towards May, June, July 2021. I don’t think it will be earlier than that.”
“It will get worse,” he added. “We know now it’s very likely there will be a lockdown [across the West]. My biggest wish for the next couple of weeks will be that employees continue to be healthy, safe and continue to be able to work and contribute like they’ve done.”
Omio’s Shaam is expecting at least several months of disruption to business as usual — pointing to the lack of a swift and coordinated response from governments to implement quarantine measures.
“We need a system-wide [response] like China or Singapore has done beautifully to really prevent it and I don’t believe that’s going to happen so we’re bracing for 3-4 months impact,” he told us.
“I just went out last night in Berlin with my wife for dinner and the restaurants are full, it’s crowded, the subways are full — full! Like not even 20% lower. Completely full. We had to make a reservation to get a table etc. So unless governments, in a very coordinated way, shut down borders for a period of 4-6 weeks so everybody goes into isolation in one go and everybody comes out — it’s going to drip feed for a long time because people are acting in different points of time on their own means.”
On the question of whether there will be a lasting impact on the travel market as the pandemic undoes global supply chains and routines, Shaam said again that’s likely to depend on how co-ordinated or otherwise the response is.
“There’s a lot of fixed costs part of travel. So I think the answer to that largely depends on how co-ordinated and how quickly we can contain. If we all actually manage to come back in 3-4 months I think we’re in a good place because it’ll bounce back quite strongly. If it’s drip feeding, and it takes the wind out for a very long time, then there will be a different situation but I hope not.”
In the meanwhile, with so many businesses getting au fait with virtual meetings and videoconferencing tools, the coronavirus crisis could also have a long term impact on demand for business travel — if lots of companies realize quite how much can be done remotely.
On this element of the crisis, TravelPerk’s Meir isn’t concerned.
“It’s an interesting theory,” he said, deferring from hazarding a guess on whether it will come to pass or not. “It doesn’t really matter for us as a company. Because companies spend $1.6TR a year on business travel. And it’s a market that is growing. Before this crisis predicted growth of 6 or 7% in 2020 — which is huge compared to the size of the market. So even if we’re talking about 10-20%, let’s say, at the edges this doesn’t change the picture. You still will have a tonne of business travel when we come back out of it.”
“If we zoom out a bit from this situation — there is a trend for more sustainable approach to travel,” Meir added. “So if so many things can turn into a Zoom call I don’t think it’s a bad idea for the planet. And we will do well. We’re not worried about a scenario like this.”
Here TravelPerk isn’t worried because the startup has another product for that: GreenPerk — a carbon offset offering it launched earlier this month. It’s been developed in partnership with non-profit Atmosfair, which works on decarbonization via UN-endorsed carbon mitigation projects.
“Many companies asked us to help them offset and reduce the impact that their travel generates and we thought that just reporting on what harm you do is not good enough. We wanted actually to make a difference,” said Meir. “One of the projects that we chose is efficient cooking stoves in Rwanda.”
GreenPerk uses an algorithm to calculate the carbon footprint of a given trip and then applies a per booking fee proportional to the pollution created — with the fee going to fund the carbon offset project.
GreenPerk is an opt in product — and Meir says it’s already had “amazing traction”, with more than 50 companies already signed up and using it.
“It’s unfair for us — people who live in very comfortable counties — to ask people in Rwanda to stop cooking their food but if we can help them transition to efficient and also faster ways of cooking then we should definitely do that… so the project funds efficient cooking stoves to replace the polluting ones.”
“If the world after this crisis looks like we are conscious about how we travel — when we do travel we try not to have an impact — and if, sometimes, making Zoom calls are better than face to face I think it’s not a bad scenario for the world. And we as a travel company will adapt like we always have,” he added. “It’s more interesting to look at the long term implication — rather than ‘is it good for our quarter or not’.”
from RSSMix.com Mix ID 8204425 https://ift.tt/2U2UUFj via IFTTT
0 notes