Travel agents back in fashion

Travel agents are coming back into fashion with more customers recognising their value according to an industry report.

The number of people valuing the service of agents has risen from 30% to 40% in ABTA’s Travel Trends Report 2013.

The survey, published in association with the Foreign and Commonwealth Office also saw the number of holidaymakers booking through a high street agent slightly grow in 2012 to 27%, up from 25% in 2011.

It says the outlook for the high street looks positive for 2013, with many companies continuing last year’s trend of opening flagship and "experience" stores.

The report found that ATOL failures were lower than in previous years during 2012 but reported that a dozen airlines had failed including Spanair and Malev.

It says the failures highlight the need for ATOL Reform to be further extended to include holidays sold by airlines.

Mid-market operators are expected to feel the squeeze in 2013 as cash-strapped customers move to tailormade packages, luxury and all inclusive holidays.

The report predicts holidaymakers will not give up holidays but are expected to look for greater flexibility and value.

Mark Tanzer ABTA chief executive said: "The early indications are that forward bookings for 2013 are looking positive despite a continued squeeze on household budgets.

"The majority of British holidaymakers are reluctant to give up their annual holiday even in tougher economic times. In particular, we are seeing strong forward bookings for the luxury and all-inclusive sectors, which have both done well in recent years.

"We are also seeing an increase in demand for tailor-made holidays as consumers look for greater flexibility but with all the security of a package."

ABTA research shows younger travellers are taking more holidays with those aged 15-24 taking an average of five breaks in the UK or overseas in the past 12 months

This compares to an average of four holidays during the same period a year ago.

Early booking figures for summer 2013 suggest that destinations such as France, Greece, Italy, Spain and the USA will continue to prove popular next year.

Destinations to watch in 2013 include Ecuador, Ethiopia, New Zealand, and Tunisia.

By Diane Evans