Advantage's survey of its members ahead of the budget found that high interest rates were exacerbating existing cash flow strains and other “increased financial pressures”.
“Cash flow can be a big challenge for travel agents because they don’t see the profits they make from booking a trip until the trip takes place,” Advantage said.
“In terms of challenges for the year ahead, Advantage members also raised concerns around staff recruitment, salary increases, the impact of the cost of living crisis, rising prices, high corporate taxes and consumer confidence.”
Challenges aside, the survey also highlighted the efforts members are making to invest in the sustainability of their businesses, with almost a quarter committing to investing in human resources, 12% in booking tools online and 7% in new commercial sites.
Julia Lo Bue-Said, chief executive of Advantage Travel Partnership, said it was “of paramount importance” that the Government recognized travel's £80 billion annual contribution to the UK economy and supported its growth.
“It is really encouraging to see our members looking to invest in their businesses this year, but there is no doubt they will need government support as the industry faces continued geopolitical challenges and economic uncertainty to ensure that this growth can take place. ” said Lo Bue-Said.
Lo Bue-Said added that the UK Outbound Travel coalition led by Advantage, which includes Aito and Abtot among its partners, had submitted a number of policy requests to the Treasury ahead of the budget.
These include reducing business rates and providing new financial support to travel business owners who are still struggling to repay loans taken out during the pandemic.
