HomeBusinessNumber of travel firms going bust jumped by fifth last year

Number of travel firms going bust jumped by fifth last year


Number of travel firms going bust jumped by fifth last year as sector was devastated by ‘on-off’ Covid restrictions


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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