The number of travel companies entering insolvency has doubled in the last year, according to accountancy firm Wilkins Kennedy.
Between October 1 last year and September 30 2012, 86 agencies and tour operators became insolvent, up from 40 in the 12 months before that. The figures were mainly taken from court statistics.
The firm said that a mixture of the Olympic Games and the Queen’s Diamond Jubilee had hit the outbound market, which needed a strong year.
Partner Anthony Cork said: “A lot of struggling travel agencies needed an exceptional 2012 to keep their heads above water, but the once-in-a-lifetime combination of a home Olympics and Jubilee put paid to that.
“There were expectations of a spike in holiday bookings, but this wasn’t as large as expected or it failed to materialise.”
Cork also claimed that political and economic instability in favourite destinations such as Egypt and Greece had hit the sector, already suffering from the double-dip recession.
“The added problem is the lack of certainty around how long Greek or Egyptian instability will last. This makes it very tricky for travel companies to make contingency plans or adjust offerings with confidence,” said Cork.