A Business Impact Analysis of Advantage Travel Partnership’s members found 84% of respondents were currently investing in their businesses, with some now using forms of AI (artificial intelligence) to support their social media activity.
Advantage members have benefited from a surge in new clients, particularly those in the 18-34 age group, with 88% seeing an increase in new customers this year – continuing the post-pandemic trend of consumers seeking the advice and expertise offered by agents.
This increased use of agents has been boosted further by continued disruption to travel services this year, including last week’s air traffic control (ATC) meltdown.
But it’s not all good news with the survey showing that 72% of Advantage members are “slightly concerned” about the current economic environment’s impact on their business. Their top concerns are the continued cost-of-living increases, rising holiday prices and consumer confidence.
One-third of agents also have outstanding loans due to the Covid-19 crisis, while 25% have seen their operating costs shoot up by between 25% and 49% in the past six months.
Other ongoing issues include recruitment, with 48% of agents still struggling to find new staff, while 64% said that higher holiday prices were having a “slight impact” on the growth of their business.
More positively for the trade, a separate poll of 2,000 consumers found that they were continuing to prioritise holidays abroad despite the cost-of-living crisis, with 74% planning to take an overseas break in 2024 and 76% looking to book earlier than usual to save money.
They are also becoming more adventurous with their choice of destination with 68% planning to book somewhere completely new in 2024 rather than return to an old favourite.
’We anticipate record agent activity’
Julia Lo Bue-Said, chief executive of The Advantage Travel Partnership, 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.
“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.”
Lo Bue-Said added that the results of the research 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”.
