The rising cost of living and its impact on demand for holidays tops the concerns of travel agents, according to a survey of Advantage Travel Partnership members.
But the survey in August found an overwhelming majority of members reporting an increase in new customers, leading Advantage to claim “more travellers are choosing to book with an agent”.
Advantage regularly surveys about one quarter of its members and in the most recent survey respondents identified holiday pricing, the rising cost of living and soaring energy prices as the major challenges they face.
One in five highlighted the recruitment of experienced staff as their leading concern after many staff left the industry during the pandemic.
Nine out of ten members surveyed (92%) reported working longer hours or providing more out-of-hours support to customers to deal with the disruption to air travel this summer.
But 94% reported seeing an increase in new customers, with two-thirds of these new customers aged between 35 and 54.
The survey found widespread expectations of another “highly challenging” year to come despite evidence of consumers’ continuing confidence and desire to travel.
Advantage reported average booking values this summer were 11% up on 2019 and the value of early bookings for 2023 was on average 46% higher than at the same point in 2022.
Kelly Cookes, Advantage Travel Partnership chief commercial officer, said: “While we expect the next 12 months to be challenging, we remain optimistic. Our advice to customers would be book early [for 2023] to take advantage of the best deals and low deposits.”
Advantage Travel Partnership chief executive Julia Lo Bue-Said said: “Travel agents have worked tirelessly not only weathering the pandemic, but also the last six tumultuous months of ‘travel chaos’.
“Agents now face the monumental challenge of the cost-of-living crisis, with spiralling operating costs while servicing debt.”
She noted: “While cashflow wasn’t an issue as they entered the pandemic, it will be now.”
Lo Bue-Said argued “the hangover of Covid” and the debt businesses now have to service has left agencies needing “space to be able to bounce back which our members simply haven’t had”.
She insisted: “Targeted support from the government is needed now more than ever for businesses that have been severely impacted for almost three years now.”
Responding to the government announcement of an energy price cap, Lo Bue-Said said: “Plans to cap energy rises will be welcomed by business owners and come as a huge relief for consumers.
“But 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 targeted support for small businesses will be high on the new government’s agenda. Travel agents remain under threat.”