The tourism industry was one of the first industries to be hit by the COVID-19 crisis. Travel bans, social distancing and self-isolation resulted in average occupancies going from 70% during March, which is generally a high season for the Western Cape tourism industry, to under 10% in a matter of weeks.
Many tourism businesses, like other small businesses, have limited cash flows. With a sudden loss of cash flow as experienced during the crisis, small businesses struggled to keep their staff and pay their monthly bills.
By offering discounts for future bookings, Rare Earth Retreats found a quick solution to generating cash flows in a cash strapped market. Take a look at how they went about it here.