GlobalData’s figures reveal of $1.9 trillion spent on outbound global travel in 2019, $166 billion (8.7%) was spent through the travel industry.

Although greater amounts were spent on transportation at $472 billion, retail at $461 billion and accommodation at $325 billion, GlobalData says a lack of expenditure across these sectors will have a roundhouse effect on travel intermediaries.

“Travel intermediaries act as the direct link in the chain of distribution between a company and the consumer base working in tangent with airlines, hoteliers, cruise operators and insurance providers,” said Johanna Bonhill-Smith, travel and tourism analyst at GlobalData.

“Therefore, the financial performance and downfall of any travel-related sector will have a dramatic effect on intermediaries.”

GlobalData said travel companies with a multi-branded strategy are likely to recover quicker from the Covid-19 pandemic because they can reach wider audiences.

Bonhill-Smith added: “As travel restrictions continue to impose on the freedom of movement the slump on consumer spending is not likely to lift anytime soon.

“It does remain clear, however, that the travel marketplace will be a lot less crowded as all companies struggle, with many on the verge of collapse.”