A members’ survey last month found agents were expecting another “highly challenging year”, Advantage said. 

As well as cost inflation, a fifth of members highlighted recruitment of experienced staff as a top concern. Businesses are grappling with a shortage of staff due to many leaving the industry following the pandemic, with agents having had little time to invest in training newcomers. 

Most were also working extra hours due to airline changes and cancellations, with 92% saying they had had to provide out-of-hours support to clients.

Julia Lo Bue-Said, Advantage chief executive, said increased costs were agents’ next challenge following the chaos caused by the pandemic and its aftermath.

“Agents now face their next monumental challenge of the cost of living crisis, whilst servicing debt, with spiralling operating costs. Whilst cashflow wasn’t an issue as they entered the pandemic, it will be now.”

She said the government’s plan to cap energy rises “will be welcomed by business owners” but cautioned: “It’s not the holy grail. In a high inflation environment, households and businesses are already paying significantly more for their energy year-on-year and consumer confidence remains fragile. 

“I’m hoping that targeted support for small businesses is something that will be high on this new government’s agenda.

Small businesses such as travel agents have been crippled over the past two years due to Covid. Local jobs and communities need protecting and travel agents remain under threat given they are still managing their businesses with a Covid hangover.”