UK travel sector sees rise in insolvencies during pandemic

Insolvencies of UK travel agents and tour operators increased in the past year, new research suggests.

The total jumped from 68 to 82, showing the impact of the pandemic on the sector, said advisory firm Mazars.

The emergence of the Omicron variant, coupled with lingering restrictions on UK tourists in some countries, have hit hopes of a return to demand for travel, its report said.

Rebecca Dacre, of Mazars, 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 in the sector with many consumers having lost confidence and put off bookings.

“The insolvencies we’ve seen so far could just be the beginning. Omicron restrictions will have blunted the recovery of the holiday sector and are likely to have further hit travel companies.