The findings from the association’s latest Business Confidence Tracker Survey in July reveal members have identified supply and demand (54%) and competition (48%) as the main challenges they expect to face over the next 12 months.

Tour operator members, the data shows, were slightly more concerned about future demand (58% vs 36% for agents), while agents’ worries swung slightly more towards competition (54% vs 27% for tour operators).

The association’s membership has been largely unfazed by the recent change of government, with seven in 10 (70%) saying they didn’t have any concerns about how the shift from a Conservative to a Labour administration would affect the level of support for SME travel business.

Most notably, the survey – Aito’s seventh – captures a resurgence in business confidence, with 96% of respondents expecting turnover to increase or stay the same over the next 12-month period.

“Confidence is improving again, but the market is hardening – members are not seeing decline, but the results suggest things will ’stay the same’ over the next 12 months,” said Roy Barker, director at Spike Insight, which co-authored the survey.

Aito executive director Martyn Sumners added: “The latest results have unveiled intriguing shifts in market challenges, particularly moving from more operational matters to focus on relating to demand and competition.

"We will continue to closely monitor these trends throughout the year to effectively support members of the Aito family and help them navigate the evolving landscape."