Ian Bell, head of travel at business advisors RSM UK and Tim Robinson, RSM’s travel specialist, predicted the peak January booking season was “likely to slip a month or two” as consumers absorb the latest government requirements and await the next review of travel testing measures in early January.

RSM warned: “This is likely to lead to continued shorter lead times and the knock-on impact of reduced cashflow and forecasting uncertainty for travel businesses.”

It added: “Agents and operators will need to build more flexibility into booking options to gain consumer confidence and avoid being dependent on the unpredictability of late bookings. 

“The continuing uncertainty will make differentiators, such as moveable deposits, the ease of changing bookings and assistance with testing requirements very valuable in convincing customers with pent-up wanderlust to commit.”

Sustainability credentials would also influence booking patterns, RSM warned.

RSM also predicted a capacity squeeze would have a knock-on effect on late sales.

It said: “Opening up with continued market uncertainty is likely to see many operators restrict capacity, thereby reducing their downside risk. This will see businesses focussing on their loyal customer base and not hunting through wider marketing. Reducing capacity should create margin opportunities and a lower reliance on late bookings to shift committed product.”

RSM also predicted “a war for talent” emerging as businesses look to replace staff lost during the pandemic.

“To be attractive, offering flexible working patterns, apprenticeships, training schemes and the ability to work remotely will be key,” it added.