More than half of UK inbound travel businesses report bookings for the first quarter of this year at the same level or higher than in 2019, according to a survey by the UKinbound association.
Almost two thirds of businesses expect their first-quarter revenue and bookings for the second quarter to at least match 2019. However, UKinbound reported: “High energy costs for attractions, supply side capacity issues for tour operators and difficulties with staffing across the industry are likely to be barriers to strong growth in 2023.”
Close to half (44%) of the businesses surveyed reported growth in US demand, boosted by the exchange rate of the dollar against sterling.
But three-quarters of attractions expressed concern at the cost of energy, 61% of tour operators were struggling with supply and half of businesses reported difficulties with staff recruitment and retention.
UKinbound chief executive Joss Croft, who was awarded an OBE in the New Year Honours list, said: “It’s great to see many businesses optimistic about this year.
“However, our members are still experiencing fundamental problems. Inflation and energy costs remain a big concern – particularly for attractions with the scaling back of support with energy bills from April.”
The survey was conducted in December among almost one-third of UKinbound members.