Aito has welcomed growing confidence among tour operators and travel agents following the results of the The Specialist Travel Association’s latest business confidence survey.
More than 96% of members said they expected turnover to increase or stay the same in the forthcoming 12-month period, a confidence level which is the second-highest since 2022.
The main perceived challenges have shifted from operational issues to supply and demand and competition.
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Aito executive director Martyn Sumners said: “It is encouraging to witness a growing confidence among Aito tour operators and travel agents in the second quarter of 2024.”
Pointing to the market challenges, he added: “We will continue to closely monitor these trends throughout the year to effectively support members of the Aito family and help them navigate the evolving landscape.”
A total of 54% of members cited supply and demand as the main factor expected to affect their business in the next year, with 48% citing competition.
Tour operators were particularly concerned about future demand, with 58.1% of tour operators selecting demand as their main challenge compared with 36.4% of travel agents.
Competition was deemed the greater issue for travel agents, with 53.5% of agents selecting it as the main challenge in contrast to 27.3% of tour operators.
The recent change in government was not deemed a concern for members, with more than 70% saying they were unfazed in relation to any potential impact on the level of support for small and medium-sized travel businesses.
Roy Barker, director of Spike Insight, which helped carry out the survey, said: “Confidence is improving again, but the market is hardening – members are not seeing decline, but the results suggest that things will ‘stay the same’ over the next 12 months.
“Challenges have flipped – it’s less about operational issues, regulations and recruitment, and more about market demand and competition.”
The latest Aito Business Confidence Tracker Survey is the seventh to have been undertaken.