NEWS
Since I became Abta chair in January, the industry has faced the Middle East conflict, jet fuel
jitters, a new EU border system, the hottest UK summer on record, extreme weather in Europe and a new prime minister. The travel sector is never dull, but this was a lot even by our standards. It has reinforced to me the importance of Abta’s
Ailsa Pollard ABTA CHAIR
Abta will urge government not to make travel unaffordable
continuing support for its members, its countering of misleading media narratives, and of ensuring we are fit for the future as a sector. The last of these points will be the focus when I attend Abta’s Travel Convention in Madeira next month, with its theme of ‘Managing Uncertainty with Confidence’. Ahead of the convention and as summer draws
to a close, it seems a good moment to take stock of how the industry has fared and to look ahead. The summer began with
the continuing impact of the Middle East conflict on travel to and through the region. Concerns have, thankfully, eased, but the situation there is far from resolved. Entry/Exit System (EES)
Combine all this with ongoing cost-of-living
concerns and inflation starting to creep up, and you have a market which is healthy in terms of people’s appetite to travel, but where they are increasingly cost-conscious. Margins will continue to be tight for many in our sector. Looking ahead, the lates market and focus on value seem likely to continue. Abta’s recent research showed cost-of-living concerns have been the key driver in delaying bookings.
“Disincentivising
concerns – operationally and in the media – seemed to peak in the spring then settled down, partly because, as Abta urged, contingency measures to manage queues became more widely used. I hope this flexible approach is continued, without unduly delaying implementation of the full system. Abta is pressing the relevant authorities at every opportunity to allow contingency measures to apply for longer.
travel through higher taxes would limit the growth potential our sector has for the UK economy”
Confidence rebound But it does seem as though some lost confidence in travel is coming back, with Travel Weekly’s research published in mid-August indicating uplifts in consumer sentiment. However, the Budget next month could determine how much that revival in confidence continues. The chancellor has said he will give the public “breathing space” in their finances, but how the government approaches doing so is important for us. I hope the government
works in partnership with the travel industry to create the right environment for growth and investment. Most importantly, they must not inadvertently make travel unaffordable for many consumers.
Abta’s recent Value of Outbound Travel
Late bookings Then there was the UK heatwave. While some reported an uptick in domestic bookings, other Abta members believe it encouraged customers to go overseas. I’m in the ‘Mad Dogs and Englishmen’ camp – having had a taste of summer here, I still booked the Mediterranean for part of the season. That’s the position many consumers took too. Many members have reported how late a market
it’s been, with Abta’s research showing many clients booking as little as two weeks ahead of departure. That will have made planning difficult for the industry, not least in managing availability and pricing. But on the flip side, many are also seeing bookings for 2027 and even into 2028 increasing.
14 10 SEPTEMBER 2026
Report showed our sector accounts for 818,000 jobs, delivering £52 billion gross value added to the economy every year. Disincentivising travel through higher taxes would limit the growth potential our sector has for the UK economy. Our industry should be taxed fairly. When Air
Passenger Duty is already at the highest level in Europe, further taxes might start making holidays unaffordable for some. Abta will be strongly making these points shortly in its Budget submission to the government on behalf of members. Uncertainty isn’t going anywhere. But if this year
has shown me anything, it’s that the industry doesn’t wilt in the heat and, most importantly, consumers want to travel. Abta will help its members navigate the ever-changing environment with confidence.
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