The Advantage Travel Partnership, Britain’s largest consortium of independent travel agents, has released its recent impact analysis* showing despite confidence to travel, its members expect another highly challenging year.

Around a quarter of members surveyed said pricing and the rising cost of living / energy prices would be the major challenges they face, with one fifth also highlighting the recruitment of experienced staff as a top concern.

Many members are also worried about the impact of rising costs on holiday prices next year, and the impact that this will have on consumer demand.

In the survey 92 percent of members also reported they’ve worked more hours or provided more support out of hours to deal with the challenges that this year presented, mainly driven by airline changes and cancellations. In addition, many businesses have grappled with a shortage of experienced staff as many left the industry in the past few years and businesses have had little time to invest into training newcomers.

Julia Lo Bue-Said, CEO, The Advantage Travel Partnership, said:

“Travel agents across the UK have worked tirelessly not only weathering the pandemic, which effectively resulted in a two-year travel shutdown, but also the last six tumultuous months of 'travel chaos' across the ecosystem. Agents now face their next monumental challenge of the cost-of-living crisis, whilst servicing debt, with spiralling operating costs. Whilst cashflow wasn’t an issue as they entered the pandemic, it will be now.

“We have seen the hangover of Covid leave travel agency business owners worried and concerned with debt they are now having to service. Businesses need leeway and space to be able to bounce back – which our members simply haven’t had. More costs and burdens placed on them will put them under increasing pressure and targeted support from the Government is needed now more than ever.   It is essential, particularly for businesses that have been severely impacted for almost three years now.    

“The news today from new Prime Minister Liz Truss about her plans to cap energy rises will be welcomed by business owners and come as a huge relief for consumers across the country.  But it’s not the holy grail. In a high inflation environment, households and businesses are already paying significantly more for their energy year-on-year and consumer confidence remains fragile. I’m hoping that targeted support for small businesses is something that will be high on this new Government's agenda. Small businesses such as travel agents have been crippled over the past two years due to Covid.  Local jobs and communities need protecting and travel agents remain under threat given they are still managing their businesses with a covid hangover.”

*Survey of Advantage Travel Partnership Members, August 2022