Following a bumper 2023 and a year of consolidation in 2024, agents tell TTG they are hopeful of moderate to strong growth in 2025 – driven by hopes of an economic upturn and strengthening consumer confidence.
Barclays’ monthly consumer spending reports have seen agents consistently outperform wider economic growth trends this year, with agents typically seeing strong growth in both spend and transaction figures. In November, the most recent data available, transactions with agents grew by 15.6% year-on-year and spending by 7.3%.
Data from Abta should give agents cause for positivity, with the association’s latest Holiday Habits research showing more people are seeking the reassurance that comes from booking with an agent – and are increasingly looking to travel professionals for inspiration.
The new year is also likely to be one where deployment of AI among SMEs comes to the fore, developments likely to provide agency owners new ways to approach the way they run their businesses and maximise the time and potential of their employees.
Speaking to TTG ahead of peaks, agents outlined their causes for confidence and optimism.
Westoe Travel director Graeme Brett said the Budget had given people clarity about their potential spending power. "Some people seemed to hold off booking before the Budget and now there seems to be a lot more enthusiasm for booking," he said.
"We had a couple say, ’there’s no point leaving any money for the kids’ inheritance as the government will just tax it, so we might as well spend it on us’."
Beverley Travel director and co-owner Karl Douglas was one of several agents who said they anticipate 2025 being their best year to date. "We feel pretty positive about 2025 and we always feel like the coming year will be our best year ever," he said.
Another was InteleTravel managing director Tricia Handley-Hughes. “I think travel agents will come to life in 2025 and I think it will be our best year to date."
Travel Village Group owner Phil Nuttall is another optimist. “There’s so much opportunity for travel agents going into 2025," he said. "There’s so much capacity, [so] travel agents need to make sure they add value and make sure they remain relevant."
Nuttall, though, stressed agents would have to demonstrate their value in a very competitive market, adding the tide of technological advances would also need to be backed up by "great people".
“We need to be on the front foot in every sector in the eyes of the consumer and the government, because all they see is numbers,” he warned.
Handley-Hughes was another to caution that the onus was on agents to prove their worth. “As a travel agent, you really have to sell your value,” she said.
"You need to be asking your customers how long it takes them to book a holiday and then be quicker than that.
“If you can do that, as an agent, then you will get repeat business.”
Other headwinds likely to challenge agents in 2025 include price matching, changes to employment law, and fiscal measures outlined in the Budget, such as increases in minimum wages.
"There are lots of reasons not to be positive, especially with the way the government is handling the economy and the travel sector in partocular,” Douglas added. “But we don’t give up, we don’t give in – we just keep going.”
Delmar World managing director Ann Anglesea said some of these factors risked eating into companies’ profits, but she was positive nonetheless.
"We’re very optimistic about 2025," she said. "We’re a 60-year-old business and 2024 was our best year ever. We’re gearing ourselves up for next year."
Abta chief executive Mark Tanzer said there was "big appetite" for travel in 2025. "A huge number of people will be turning to travel agents and tour operators to help make their holiday dreams come true," he said.
Published in the autumn, Abta’s 2024 Holiday habits report highlights some of the consumer trends from which agents can take heart.
Nearly four in 10 respondents (38%) said they booked a holiday with a travel professional in 2024, up from 34% a year earlier. Respondents cited the reassurance of knowing they have someone to help them if something goes wrong (43%) as the main reason for this, up from 34% in 2023.
Among those respondents who travelled abroad in 2024, there was a slight increase in the number who did so via a package holiday booking (62%, up from 61%); Abta’s research confirmed packages remain the most popular way for people to travel abroad, in line with years gone by.
In addition, of those respondents to Abta’s survey who booked with a travel professional over the past 12 months, 37% said they got their inspiration from agents and operators, matching the influence of input from family and friends.
Tanzer said a common theme of the trend towards booking with agents and other travel professionals was "access to expertise". We’re here to support members to deliver that service, and also shout about the huge value of booking with a travel professional, and the benefits of a package holiday," he added.
AI ’reshaping how businesses work’
Few agents will have been able to escape the missives this year that 2025 will likely be the year when AI becomes a part of every day business activities one way or another, whether that’s automation of tedious processes or social media content generation.
The Advantage Travel Partnership’s peaks campaign, That Just Booked Feeling, puts AI-generated imagery at its members disposal, allowing them to create content tailored to specific demographics or holiday types with greater ease.
“Using AI allowed us to create images that are visually engaging, relatable and highly targeted, while also showcasing how our members can harness AI to enhance their own marketing efforts," said David Forder, Advantage’s head of marketing.
Andy Headington, chief executive of digital marketing agency Adido, told TTG AI tools were "reshaping how many travel businesses work" by allowing agents and marketers to streamline processes and find new ways to approach tasks, such as image generation and copy writing.
However, he warned anyone dabbling with AI to remember the "golden rule". "Always treat AI outputs like a first draft and never the final version," he said. "Any AI-generated copy should be thoroughly vetted and edited to ensure you keep your brand’s tone and USP front and centre.
"It’s also wise to avoid any rushed or knee jerk reactions to how others are using AI tools. What is right for some businesses may not be right for yours. In fact, your existing workflow may actually be simpler and more effective."
Speaking at the recent Jet2holidays conference, James Malyon, the operator’s director of digital, unveiled a new AI conversational search tool for agents, and stressed AI wouldn’t replace jobs.
"AI is about enabling people to be the most effective version of themselves, in my opinion," he told agent delegates, adding they should think about using AI to identify and solve problems in people’s workflows, and help them become more effective and efficient.
