Research carried out by The Advantage Travel Partnership suggests a significant increase in customers turning to travel agents to book their holidays, with younger travellers leading the way.
Almost nine in 10 (88%) agents who responded to the consortium’s Business Impact Analysis survey in August said they were seeing an increase in new customers.
Almost a quarter said the new customers were aged between 18-34.
The survey also found 84% of respondents were continuing to invest in their businesses despite ongoing challenges, with 36% investing in marketing and 24% in technology.
A quarter said they were using AI to support with social media activity.
The cost of living, pricing and consumer confidence were identified as the main areas of concern, with 72% saying they were “slightly concerned” about the economic environment impacting their business.
A third of businesses said they still had outstanding loans following the Covid-19 pandemic, while a quarter said their operating costs had risen between 25% and 49% in the last six months.
Staff recruitment remains a concern, with 48% saying they were struggling to take on new staff.
When asked about government perceptions of the sector, 88% said they thought travel was not seen as a key economic driver, 56% said they didn’t think the government understands the travel sector and 64% want a minister specifically responsible for outbound tourism.
Advantage chief executive Julia Lo Bue-Said said: “Given the increase in new customers and managed travel programmes that our travel agency partners are seeing, and the fact that bookings are exceeding 2019 levels, we anticipate that there will be a record number of calls and visits to travel agents across the UK as people look to book their next trip with a local, trusted expert.
“It’s wonderful to see that although some disruption has persisted throughout the year, the desire to travel among brits has not abated. With current demand and a positive outlook for 2024 our members are continuing to invest in their businesses to grow customer bases.”
She added: “Whilst the results of our Business Impact Analysis shows that our agency partners and TMCs are seeing growth, it also shines a light on the pressures that small and medium size businesses continue to face as a hangover of the pandemic such as increasing costs and staff shortages.”
“What is reflected in the results of our latest Business Impact Analysis is that people are continuing to prioritise travel and that consumers have found there really is no substitute for agents who act as advisors, who know their clients and can provide expert consultation, support and peace of mind.”