Ahead of Small Business Saturday on 07 December, The Advantage Travel Partnership, the UK’s largest independent travel agent partnership, has canvased its members to find out the impact of the recent budget announcement and their concerns for the year ahead.

The comprehensive survey uncovered significant challenges faced by independent travel agencies, with members reporting increased operational costs across multiple areas. Primary concerns include rising staffing costs, complex tax implications, and elevated employers' National Insurance Contributions, alongside the impact of increased Air Passenger Duty (APD).

The survey findings indicate a shift in consumer behaviour, with travel agency members noting increased caution in client spending patterns, partially attributed to the recent budget measures. These fiscal changes are expected to have substantial cost implications for travel businesses across the sector.

Looking ahead to 2025, members identified several critical challenges facing their businesses. These range from cash flow management and geopolitical concerns in regions such as Russia/Ukraine and the Middle East, to ongoing recruitment difficulties and evolving tax implications. Small businesses particularly face mounting pressure to maintain profitability while managing increasing overhead costs.

In response to these challenges, Advantage members are already implementing various strategic measures including recruitment freezes and targeted cost-reduction initiatives.

Julia Lo Bue-Said, CEO of The Advantage Travel Partnership, commented: "We knew from the outset that many of the changes announced as part of the Budget would impact our sector. This survey has provided crucial insights into the real challenges our members are facing and their concerns for the future.

“While our travel agency partners are implementing strategic measures to navigate these budgetary challenges, this Small Business Saturday serves as a vital reminder of the importance of supporting local businesses. Despite strong outbound travel demand and robust booking patterns for 2025, it's clear that business owners across all sectors are facing mounting pressures from multiple directions, creating challenging decisions between immediate survival and long-term growth."

This follows similar comments made previously by Kate Nicholls, Chief Executive of UKHospitality, who said the Budget will halt growth in the hospitality industry and that 2025 is set to be a painful year for the sector as a result of the rising costs.