The brand, which is part of Midcounties Co-operative, operates 76 travel agencies in the UK, as well as working with more than 140 independent agents through the Co-op Travel consortium.
Co-op Travel said the spread of the Omicron variant of Covid-19 had caused a 20% fall in high street footfall in some areas in recent weeks.
This factor, combined with increased testing requirements for travel, had caused a “devastating impact on consumer demand”, just as the industry approaches its post-Christmas peaks booking period.
Sara Dunham, chief officer for travel and leisure, added: “After almost two years of restrictions, the impact of the Omicron variant is having a devastating impact on UK travel operators, just when there was increasing optimism around business in 2022.
“The reality is that many smaller or local operators, in particular, will not be able to continue without government support if, as expected, the sector faces ongoing uncertainty and a decline in bookings.
“We are therefore calling on the government to step up and take action now to protect livelihoods and prevent many smaller operators going out of business.”
Co-op Travel said it was joining Abta in calling for tailored winter resilience grants for travel firms, as well as assistance for businesses facing loan repayments at a time when they have no income, and the extension of business rates relief for travel companies for the 2022-23 financial year.
Co-op Travel joins call for govt support to avoid ‘bleak winter' for travel
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