Travel Agencies in the UK - Market Size, Industry Analysis, Trends and Forecasts (2025-2029)

Travel Agencies in the UK industry analysis

Revenue in the Travel Agencies industry is expected to grow at a compound annual rate of 12.3% over the five years through 2025 to €121.5 billion. The focus of the travel industry in the last five years has been recovering from the COVID-19 pandemic. Travel demand plunged during 2020 and 2021, when COVID-19 outbreak grounded flights and confined people to their homes. While domestic travel could continue in some countries, most travel agencies had no trips to sell. Since restrictions were lifted across Europe and globally (which happened at each country’s own pace), the travel sector has seen a resurgence in demand by trends characterised as revenge travel and responsible travel. People made up for lost time by taking more trips after COVID-19 restrictions had been lifted. In 2024 and 2025, consumers are still keen for trips but want value-for-money adventures instead as they’re cautious of their spending amid disposable income squeezes. International travel to Europe has also resurged, especially from the US, thanks to the more favourable dollar-to-Europe rate – a welcome trend for agencies. There’s concerns that President Trump’s administration and US tariffs could see a drop in US visitors, but in early 2025 numbers have been strong.

Trends and Insights

• The Russian invasion of Ukraine has knocked the tourism sector in Eastern Europe. Closed airspaces, no Russian tourists and low travel confidence have damaged agencies in Eastern Europe and agencies in central Europe offering packages to the region.
• Europe remains the top holiday location for international arrivals. While Europeans travelling around Europe feel more confident booking travel plans independently, international tourists use agencies to hop around countries in Europe.
• Larger agencies enhance their online presence. At the same time, a lot of bricks-and-mortar agencies have closed, helping OTAs agencies establish themselves. Fierce competition means the online market is rife with competitors.