Published on Thursday, November 22, 2012

Rising costs hit wannabe agency owners

Rising costs and increased regulation have led to more agency owners looking to join home working groups.

Travel Counsellors says nearly one out of every two new agents joining the company this month has been an agency owner and believes they are wanting to run their own business but need more support.

It also claims the recent ATOL changes have played a part in many looking for alternative options, with agency owners facing hefty costs to obtain their own ATOL licences under the new flight-plus scheme. 

Travel Counsellors' managing director Steve Byrne said: "There is no doubt that life is tougher than ever for agency owners who have built up great customer relationships but are bogged down in the high cost structure of being on the  high street which is why we are seeing a marked increase in enquiries from agency owners."

Travel Counsellors has reported a 36% increase overall in recruits joining since the start of the year.

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The recent insolvency of Low Cost Travel Group, one of the large players in the travel industry had a big impact on the travelers, hotels and all related players from both wholesale & retail arms. There were about 27,000 people on a holiday who had booked through the company comprised of a €200 million wholesale arm and €500 million OTA / retail arm.