Budget to push up Hays Travel's business costs by more than £6 million

Dame Irene identified several bright spots on the horizon, by way of relief. These included predictions of further drops in interest rates after the Bank of England last week lowered the rate from 5% to 4.75%, a move that will bring down borrowing costs and free up more disposable income for consumers. She also highlighted stable oil prices.

She added agents can also benefit from the fact “inflationary pressures mean consumers are focusing even more on value and quality and the relationship they have with businesses".

Other positive trends identified by the Hays owner and chair include a 9.3% year-on-year increase in travel spend during the six months to the end of June this year, and 13.6% growth for agents over the past year.

Dame Irene also highlighted data showing how consumers are looking for greater reassurance when buying a holiday, up from 34% last year to 43% this year.

Elsewhere, the business is continuing to invest in its retail portfolio, she said, with five new shops opening this year. More than £9 million has been spent on refurbishing existing stores this ear, with another £5.25 million earmarked for next year.

Head of retail Paula Barrett said Hays agents had enjoyed a strong first six months of the independent’s current financial year during the period to 31 October, while new measures to drive sales include a fresh focus on long-haul and opening more shops for Sunday trading.