Business confidence drops among UK inbound tour operators

Less than half of UK inbound tour operators are confident about their businesses in the next 12 months.

The latest UKinbound Business Barometer found industry confidence has dropped, with 49% of businesses stating they are confident about the upcoming 12 months.

This is 10 percentage points down on the last Barometer in November/December 2018 but higher than the 40% figure from September/October 2018.

Confidence has declined since September/October 2017 when it was 60%. In January 2017 the figure reached 82%.

The latest UKinbound Business Barometer results, based on business activity in March and April 2019, revealed that bookings, visitor numbers and customer orders were the same or higher than March and April 2018 for 74% of businesses.

Yields were also the same or up for 78% of companies during the same periods.

The survey also asked members for their views on regulating sharing economies in tourism.

It found that over half of members believe that sharing economy tourism businesses, such as AirBnB, should be subject to the same regulations as other businesses in the sector.

When pressed further, over 71% of members said further regulation would provide more protection for customers and create a level playing field for all UK businesses that operate in the tourism sector.

The new research, undertaken in collaboration with Qa research, echoes the views shared by the Tourism Alliance.

Earlier this month the Tourism Alliance wrote to the new minister for arts, heritage and tourism, Rebecca Pow, urging her to take forward the recommendations of the 2018 Tourism All-Party Parliamentary Group Inquiry into the sharing economy.

The inquiry found many businesses which advertise on sharing economy platforms do not comply with legislation aimed at protecting customers.

Joss Croft, CEO UKinbound, said: "We will always welcome those innovations in the tourism industry that provide our visitors with greater choice. The majority of sharing economy businesses have brought to market some fantastic new product and present an exciting new way to travel, but it’s only fair that all businesses in the UK tourism industry – including those in the sharing economy – are regulated as appropriate so that customers rights and more importantly their safety are protected.

"The global tourism industry is very competitive and we need to continue giving international visitors a reason to choose the UK over other destinations. If our industry doesn’t operate on a level playing field, we can’t guarantee quality which will jeopardise the UK’s global reputation as a world-class tourism destination.

"LA, Amsterdam, Paris, have all adapted to the changing ways consumers are purchasing travel and the UK needs to do the same."