According to Moore Stephens, agencies are diversifying as they adapt to the internet age by offering more bespoke products.

The firm said the number of travel businesses failing over the past five years has declined from 47 a year to 33 a year.

At the same time, citing Abta figures, the firm says the number of Britons taking holidays is at its highest level since 2011.

Traditional agencies and tour operators were hit hard when the internet allowed holidaymakers to package up their own trips.

This was further compounded by the rise of price comparison sites and aggregators, OTAs and latterly, services such as Airbnb.

However, Moore Stephens says canny travel businesses are increasing finding niches in the market in which to prosper.

The firm says agencies are specialising to a greater extent than ever, while those offering bespoke, luxury travel are in significant demand.

Changing holiday habits such as the rise of activity-led trips and experiential travel have also lent themselves to the services traditional agents and operators, as has demand for travel to more challenging destinations.

Chris Marsden, restructuring and insolvency partner at Moore Stephens, says: “Travel agencies are performing better than they have been in recent years. New technology platforms and the evolving expectations of travellers have revolutionised the way the sector works.

“More travellers, especially from the younger generation, increasingly want an ‘experience’ rather than just a holiday – that gives travel agents and tour operators a real opportunity.

“It is harder to piece together those more complex, once-in-a-lifetime holidays from the internet, and that is where travel agents can still compete really well. The successful travel operators are those that have moved away from standard package holidays to more boutique and bespoke products.”

Marsden added agents’ access to beneficial rates and upgrades agents can access had helped rekindle relations with travel agencies.

“The market is both challenging and continually evolving, and agencies must fight to stay relevant against online-only competitors,” he said.

“Building customer loyalty by creating a bespoke experience through knowledgeable staff face to face is of paramount importance.”