Mazars found insolvencies jumped 17% from 59 to 69 over the past year, and from one to nine in July alone, CityAM reports, suggesting the end of furlough is likely to have put additional pressure on the sector.

Partner Rebecca Dacre told the publication the figures suggest the Covid crisis is "far from over" for the travel sector.

"Despite an increase in demand, many travel agencies face a shortage of cash with which to operate and a shortage of options for credit," she said.

"The insolvencies we’ve seen so far are likely to be the tip of the iceberg. In many cases, furlough support has been the only thing keeping travel businesses going. Now these firms will have to pay their whole wage bill and may find creditors knocking at the door."

Travel agents and tour agents face a critical period of winter trading, with travel restrictions at their most lenient since the start of the Covid crisis.

Winter departures will be a significant opportunity for agents and operators to ease cash flow worries, and get some sustained income into their businesses.

The latest TTG Travel Agent Tracker survey found 93% of agent respondents in the two weeks to Friday 29 October took new bookings, the highest rate since the start of the Covid crisis.

Moreover, nearly 80% of respondents said they took new bookings for winter 2021/22, suggesting the evident pent-up demand for travel is starting to be unlocked.