Lee Hayhurst and Samantha Mayling
ONS figures reveal revenue rebound 86%
Travel sector revenues saw sustained recovery in the first half of 2022 after slumping to a quarter of pre- pandemic levels in 2020 and 2021. Combined operator and agent
annual revenue in 2020 and 2021 was about £9.5 billion – a quarter of the £37.5 billion recorded in 2019 – according to Office for National Statistics (ONS) figures analysed by Kew Associates for Travel Weekly sister title Travolution. During the first lockdown in
2020, revenues in April, May and June were 7%, 6% and 8% of those in the equivalent months of 2019. However, revenues recovered in
2022, with February levels at 63% of 2019, March 67%, April 77%, May 88% and June 86%. ONS employment figures also
show the Covid impact on agency and aviation workforces. Both saw staff numbers slump by
10,000 last year compared with 2020, leaving 42,641 agents in the UK and 69,000 aviation employees. Agent numbers are forecast to
recover to 47,577 this year across 4,130 businesses, but remain well down on the 67,625 in 4,165 firms recorded by the ONS in 2016. The tour operator sector is much
smaller, with just over 21,000 staff working in 1,800 companies this year. Chris Photi, head of travel
and leisure at travel accountancy
Recruitment ‘still a priority’ despite fears of slowdown
Juliet Dennis
Travel agencies say staff recruitment remains a priority for businesses in the sector despite the forecast of a recession. Firms said they were forging
ahead with hiring plans in contrast with other industries as the cost-of- living crisis has failed to dent travel bookings and in anticipation of a busy January sales period. In contrast, technology and
finance firms have revealed plans to put recruitment on hold as global economic growth slows. The Travel Network Group chief commercial officer Vim Vithaldas
4 27 OCTOBER 2022
was among those to remain bullish. He said: “Recruitment has
been such a challenge in 2022 that members are not going to pause in their drive to staff their shops to the correct levels. They are continuing with recruitment plans, especially as there has been, as yet, no noticeable slowdown in booking patterns.” Barrhead Travel is also pressing
ahead with recruitment ahead of the peak season and taking on modern apprentices. President Jacqueline Dobson
stressed: “Recruitment still must be a priority for the industry, particularly bringing in new talent and targeting young people. There are headwinds
Operator and agent revenues in June 2022 versus June 2019
specialist White Hart Associates, said the pandemic “made businesses leaner and meaner”, with “increased efficiencies from their retained staff and improved IT”. “Travel agencies are also likely to
max out demands on existing staff levels before they recruit further, particularly given the uncertainties of the energy, cost of living and interest rates crisis,” he said. Stephanie Slark, membership
services director at The Travel Network Group, said members were holding more business partner or themed events in-store rather than elsewhere – but suppliers also have fewer sales staff so they are not always able to support agents. “In the past six-nine months, our
members have had to make tactical decisions around opening hours, for example, closing the shops on quieter days and overflowing calls to nearby branches,” she added. Cressida Sergeant, Traveltek chief
commercial officer, said: “Agents have needed to adapt and have invested in technology to streamline their processes and drive efficiencies
through payments and automation.” i IT spending: Business, back page
Many travel businesses are pressing ahead to fill vacancies
on the horizon for travel but, if we’ve learnt anything over the last few years, it’s the importance of securing and retaining talent to drive recovery.” Hays Travel and Althams Travel
said they had no plans to pause recruitment, while Premier Travel managing director Paul Waters said he saw “no reason to stop recruiting where we currently need staff” due to “continued growth”. Similarly, Spear Travels is “actively
recruiting to fill gaps prior to 2023” to be fully-staffed for the peak sales period. The agency chain also plans its first “big push” on apprenticeships. Advantage Travel Partnership chief executive Julia Lo Bue-Said
said travel firms had to guard against making short-term decisions that might affect long-term growth. “Businesses are still rebuilding
out of Covid and there is a shortage of talent. It’s easy to say ‘I’m going to stop everything’ but is that the right decision?” she said. Recruitment specialist C&M
Travel Recruitment reported a 21% increase in new travel vacancies since the start of June compared with 2021. Vacancies are 3% up on 2019, suggesting 2022 will be a “record year” for travel recruitment activity. Managing director Barbara
Kolosinska said: “There is a real battle for talent in the travel industry.”
travelweekly.co.uk
PICTURE: Shutterstock/Ground Picture
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