Wakanow’s CEO, Adebayo Adedeji, is witnessing firsthand the severe downturn in the online travel sector. April was a particularly tough month, with bookings plunging by 98% compared to March, which had already seen a significant drop.
Even before the coronavirus crisis escalated into a global pandemic, the travel industry was on a decline, compounded by widespread travel bans, particularly from China, the U.S., and European countries. This situation led to major revenue losses for airlines and travel agencies worldwide, pushing many into recession.
To adapt, Wakanow has taken several drastic actions, such as closing its head office, reducing customer service hours, and laying off staff. Adedeji noted that some of the job cuts were inevitable due to automation, but they were necessary to manage operational costs.
Despite the current travel restrictions, Wakanow’s website remains operational, offering local flight options between major Nigerian cities. However, Adedeji acknowledges that significant sales growth will likely only return once travel restrictions are eased.
In a bid to reinvent itself, Wakanow is exploring innovative approaches, including “video selling” – a new initiative allowing customers to schedule virtual sessions with Wakanow agents for personalized destination tours. This shift marks a departure from the company’s traditional operations, focusing on adapting to the changing post-pandemic travel landscape.
Wakanow, established in 2009, had previously faced financial difficulties, particularly between 2017 and 2018, but has since stabilized, thanks to a $40 million investment from Carlyle Group. This funding has helped the company remain committed to its financial obligations and service offerings.
Looking ahead, Wakanow plans to enhance its customer offerings by introducing flexible payment options like ‘Travel Now, Pay Later’. These efforts are aimed at reviving demand and making travel more accessible despite the ongoing challenges facing the global airline industry.
Adedeji, who joined Wakanow in 2019, brings retail and financial experience to the company as it navigates unprecedented challenges in the travel sector. While acknowledging the difficulties, he remains optimistic that the travel industry will rebound as people eventually look to explore the world again.
