Industry bodies are urging further support to businesses from new chancellor Kwasi Kwarteng in Friday’s mini-Budget.
The calls came as the trade said the government’s new energy relief scheme would help businesses dealing with rising energy bills.
Abta chief executive Mark Tanzer said: “The support laid out by government today will help to take the pressure off travel businesses dealing with rising energy bills, and it is good to see that this help will be in place for all businesses for a six-month period.
“When carrying out its three-month review, government must take into account the impact of the Covid-19 pandemic when considering sectors for further support, and that businesses have been dealing with rising costs for many months now.
“Travel only re-opened in March 2022, so the sector’s recovery is furthest behind any other industry. Many businesses took on debt to get through the pandemic, which is now falling due for repayment.
“These are government-backed loans, so it is in the government’s – and ultimately the taxpayer’s – interest to ensure travel businesses are helped and eligible for the full support.”
He added: “The chancellor has the opportunity to use Friday’s mini-Budget to provide further support, for example by extending business rates support beyond the end of the current financial year and working with the British Business Bank to give businesses more headroom with the repayment of loans taken on during the Covid-19 crisis.
“Abta will be working to represent the needs of the sector to Government over the coming months and in the run up to the three-month review.”
Julia Lo Bue-Said, chief executive of The Advantage Travel Partnership, said: “We have been eagerly awaiting an update from Government on their plans to help businesses with rising energy bills and whilst their announcement this morning on the cap is a gesture, it’s simply not enough.
“Travel businesses have not only had to deal with a global pandemic, that essentially resulted in a two-year shut down, but have also had to limp through the last summer where the after-effects of Covid have continued to wreak havoc across the travel ecosystem. During this time they have also had to service debt from loans secured and are now having to deal with the further crises of rising operating costs.
“In a recent survey of our members it revealed that 22% of those who responded perceive the cost of living/fuel increases to be their biggest challenge facing them, second to pricing at 25%, which will be impacted by fuel increases and other rising costs.
“Unlike other sectors, travel has been totally forgotten in terms of government support over the past two years and help is now needed more than ever.”