Advantage members seek help with Covid debts and high interest rates in spring Budget

Advantage’s survey of its members ahead of the Budget revealed high interest rates, meanwhile, were exacerbating existing strains on cash flow and other "increased financial pressures".

"Cash flow can be a big challenge for travel agents, as they don’t see the profits they make from booking a trip until the trip takes place," said Advantage.

"In terms of challenges for the year ahead, Advantage members also reported concerns about staff recruitment, wage increases, the impact of the cost of living crisis, higher prices, high corporation tax and consumer confidence."

Challenges aside, the survey also highlighted efforts by members to invest in future proofing their businesses, with almost a quarter pledging to invest in people, 12% in online booking tools and 7% in new trading locations.

Julia Lo Bue-Said, chief executive of the Advantage Travel Partnership, said it was of "paramount importance" the government recognised travel’s £80 billion annual contribution to the UK economy and supported its growth.

"It’s really encouraging to see our members are looking to invest in their businesses this year but there is no doubt that they will need the support of the government as the industry navigates continued geopolitical challenges and economic uncertainty to ensure that this growth can take place," said Lo Bue-Said.

Lo Bue-Said added the Advantage-led UK Outbound Travel coalition, 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 fresh financial support for travel business owners still struggling to pay back loans taken out during the pandemic.