Operational issues and recruitment challenges easing – Aito
Ilaria Grasso MacolaCustomer demand, increasing competition and industrial action have emerged as some of the key challenges facing the UK’s specialist tour operator sector, according to new Aito research, although some long-standing issues for the association’s members have started to ease.
The association on Thursday (22 February) revealed more findings from its latest business confidence tracker survey, highlighting how levels of demand have become a primary concern to more than a third of specialists.
Nearly four in 10 respondents (37%) ranked it as a likely key obstacle to growth over the next 12 months; this is up from a figure of 29% over the past year.
Smaller operators, meanwhile, have emphasised how industrial action and strikes could threaten their business moving forward, while respondents of all sizes stressed the need to take a more targeted approach to marketing and advertising owing to robust competition and the fact digital advertising generates less "bang for buck".
Respondents, though, reported several long-standing challenges, such as operational issues and recruitment worries, have eased. Nearly three in five respondents (59%) cited operational challenges as a main concern for 2024, down from 65% in the previous year.
The number of businesses anticipating recruitment issues, meanwhile, has gone down from 47% in 2023 to 35% this year, with retention improving by 6.2%.
“As specialist tour operators and travel agents navigate the evolving challenges highlighted, adaptability and strategic planning are key to sustaining growth,” said Aito executive director Martyn Sumners.
“By addressing recruitment concerns, optimising operational efficiency, and staying attuned to shifting market dynamics, operators and agents can position themselves for success in the coming months.”
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