According to the latest data from Lloyds Bank’s UK Sector Tracker, the tourism and recreation industry – which includes travel agents – reported output growth of 53.2.
A reading on the tracker above 50 indicates expansion, while a reading below 50 indicates contraction.
However, despite continuing to grow after becoming one of the fastest expanding sectors in March, tourism was one of the only sectors covered by the tracker to not increase its headcount.
This was because, Lloyds said, the travel and hospitality sectors were less concerned about the future impact of inflation, and more optimistic about future output growth than at any point in over a year.
The findings come after C&M Travel Recruitment found the number of candidates being placed in new travel jobs fell to its lowest level in 16 months in April.
More parts of the economy, Lloyds found, were hiring in April (10 out of 14 sectors tracked) than at any time in the last six months.
Meanwhile, the tracker’s measure of future output growth expectations over the 12 months across the economy rose to its highest level in 13 months (71.4), as businesses were less concerned about the effect inflationary pressures will have on output over the coming year.
Jeavon Lolay, head of economics and market insight at Lloyds Bank Corporate and Institutional Banking, said: "Our report suggests that hiring activity is firming again as, alongside a pick-up in activity levels and improving confidence, many businesses reported that it was easier to recruit staff.
"Nevertheless, while labour availability may have improved, competition for staff is still intense in some industries and rising wages were increasingly cited as a key reason for raising output prices in April."
