ONE-FIFTH of travel agents and tour operators are at serious
risk of failure, a report by financial analyst Plimsoll Publishing shows.
Plimsoll looked at the sales growth and financial health of
1,987 travel companies over the past four years. Of these, it said 402 are in
danger of collapse. Another 261 are at high risk of failure. Those figures
could double if there is a recession in the second half of this year, the
report warns.
A spokeswoman for the firm refused to name the companies on
the danger list for legal reasons, but a copy of the report seen by Travel
Weekly included several well-known agents and operators.
ABTA head of financial services Mike Monk dismissed the
figures as “ridiculous” and said they could damage the industry if suppliers
and consumers believe companies are not financially sound.