The number of travel firms going bust jumped by a fifth last year as the sector was devastated by ‘on-off’ Covid restrictions.
International travel was down by around a third on pre-pandemic levels across 2021 and 82 travel agents and tour operators folded – up from 68 in 2020.
This year has started with a rise in insolvencies in the sector, which employs 500,000. Last month 15 travel firms went bust, up from nine a year ago.
Devastating: International travel was down by around a third on pre-pandemic levels across 2021 and 82 travel agents and tour operators folded
Research by Mazars found that the Omicron variant hit demand over a peak winter period.
The firm said a boom in staycations, where families spend holidays in the UK, has compounded the sector’s troubles.
Partner Rebecca Dacre said: ‘Many travel companies went into the off-season in a precarious position and have not come out the other side.
The on-off nature of travel restrictions has left lingering damage.’
She added that Omicron will have hit the sector’s recovery, meaning the spike in insolvencies could ‘just be the beginning’.
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