UK-based TMCs are largely optimistic about the year ahead, with more than three-quarters expecting to achieve year-on-year sales growth in 2023.
The survey, conducted as part of the recently published Europe’s Leading TMCs 2023 report, reveals a generally positive outlook for UK-based agencies, despite current geopolitical challenges.
More than 50 UK-based TMCs took part in the survey between April and May, which also provided the basis of this year’s UK rankings.
The survey showed that despite the sector having to adapt to the pandemic, and then facing subsequent staffing challenges and turbulence from the war in Ukraine, most UK TMCs expect to see sales growth in 2023. More than half predict growth of up to 25 per cent, while a quarter expect to enjoy 25 to 50 per cent sales growth. One in ten predicted growth in the region of 50 to 75 per cent. Conversely, only 12 per cent expect to see sales decline this year.
For those forecasting increased sales, the growth is expected to come mainly from winning new customers, although more than a quarter of respondents hope to see increased activity from current corporate clients.
The survey also found that there is pressure on TMCs to look at their product offerings, with 65 per cent saying this is something to consider for future success. Nearly half of those surveyed are also considering growing business through meetings and events and nearly 30 per cent said they would need to diversify as a priority in order to create new income streams.
UK TMCs will also witness a larger focus on sustainability with almost all respondents expecting to see an increase in demand for reporting and consultancy in this area. More than 60 per cent of respondents also expected to see an increase in demand for consultancy on both duty of care and travel technology.
Meanwhile, nearly half of respondents highlighted geopolitical issues as a significant challenge to future success, exceeded only by the number of TMCs (more than 50 per cent) that pointed to ongoing difficulties recruiting skilled staff – a hangover from the fallout of the pandemic.
Just over 40 per cent of TMCs were worried about reduced margins, while recent NDC developments saw more than a third of respondent say content fragmentation was a concern. At the other end of the spectrum, TMCs were less concerned by credit and cashflow issues and growth in online adoption.
Regarding future demand for business travel, 41 per cent of TMCs believe demand will eventually return to pre-pandemic levels and 35 per cent think it will exceed previous levels. Just under a quarter of respondents believe it will be less than before.
Read more analysis of the UK market and the survey findings here, and explore the full Europe’s Leading TMCs 2023 report – including a rundown of the 25 largest agencies operating in the continent – here.