Most members of the Advantage Travel Partnership have seen their operating costs soar by 50% in the last six months although consumer demand for travel remains strong despite cost of living pressures.
The majority (92%) of the consortium’s agents believe the outbound sector needs greater support from across the political spectrum, with 60% still carrying debt from outstanding government loans following the pandemic.
The situation is compounded with more than 90% of agents saying their operating costs have increased by up to 50% in the first half of the year.
Despite this backdrop, 81% of agents are in profit for the financial year to date and 63% of agents report feeling optimistic about the year ahead.
The results come from a business impact analysis of leisure and business Advantage members released to coincide with National Travel Agent Day.
Advantage chief executive Julia Lo Bue-Said said: “When we consider the environment in which travel agents have had to trade over the past two years, together with the recent travel chaos across the travel ecosystem, we also see the unwavering tenacity of the sector and the resilience of travel agents themselves.
“The profession is certainly not for the faint-hearted. Agents across the UK have had to trade through the toughest of times and continue to face the harsh reality of a two-year shut down, high costs and labour shortages, and not even the surge in demand can mask the operational challenges facing so many agents today.”
However, she added: “Travel agents have continued to reinvent themselves and more than ever, we are seeing how they are becoming an even greater trusted partner for travel, with consumers seeing the true value of the support they can provide.”
Advantage members reported a 94% increase in new customers, with 30% of agents seeing an increase in the 35-44 customer group, and 33% from 45–54, highlighting the appetite for a “secure and positive” travel experience.
With sustainable travel high on the agenda for many consumers, 63% of agents would like Advantage to support them with their approach.
Lo Bue-Said added: “The recent rise in cost of living doesn’t appear to be dampening consumer appetite for travel.
“Banking lifelong memories with family and loved ones is what we all want to do, and in a world that is becoming increasingly uncertain, booking with a travel agent brings added value and certainty.
“Our business impact analysis results make me feel optimistic, and I truly believe that the great British travel agent is having a resurgence – someone to make sure your travel plans go without a hitch – and if they don’t – providing support when you need it most.”