The Travel Network Group estimates a travel agency would need to sell seven more “average-priced” holidays to make up the salary costs for just one extra staff member under rising employment costs.
The consortium gave the comparison, based on a £3,000 holiday, to highlight the burden of impending additional business overheads for the 2025-2026 financial year as a result of the government’s autumn budget.
These include, from next month, the 6.7% increase in the national living wage and rise in employers’ National Insurance contributions to 15%, while 75% discounts on business rates are replaced by 40% rate relief instead.
The group said the additional costs meant it was encouraging its members to take proactive steps to protect their profitability.
It has suggested agents review overheads to find cost savings or improved efficiency, such as renegotiating supplier contracts for better rates, and increasing staff productivity by cross-training or skills development through its inhouse training academy.
Members are also being encouraged to attract new clients with targeted campaigns highlighting an agency’s personal touch and expertise using marketing resources from the group’s intranet, The Hub.
Chief executive Gary Lewis said: “Our members understand the importance of building strong, emotional connections with their customers. Providing an exceptional experience from the initial discovery meeting, right through to post-travel follow-up helps boost that loyalty and trust that every business needs.
“In times like these – where wage costs are on the rise – those relationships become even more crucial. By combining expert knowledge with genuine care, our members can maintain profitability while still delivering the personal touch their customers value. This personalised approach leads to repeat bookings and referrals, both of which are essential for staying profitable amid higher staffing expenses.”