Over a quarter of the top 150 UK travel agencies are selling less than they were two years ago, while a similar proportion is reporting flat sales, according to Plimsoll Publishing.
Plimsoll's research found that, out of 150 travel agencies surveyed, 46 are showing no sales increases at all, while 40 are selling less than they were two years ago.
In addition, 94 companies have failed to increase sales at the same rate as their
investment and 73 increased their debts simply to hold their place in the market.
Plimsoll estimates the value of the 150 companies has fallen by around 40% in the last 12 months.
Twenty-one agents surveyed have been identified as having a failing business strategy, according to Plimsoll senior analyst David Pattison.
He said: ‘The recent slow down in the UK economy will only accelerate a long standing problem in the market.
‘Following the last few years which have been largely profitable, business leaders have been keen to invest heavily, and in turn have borrowed heavily.
‘Yet due to the turbulent economic climate of 2008 they are seeing very little by way of return.
‘This ambitious investment strategy has left some companies in severe financial danger, and as a result 21 companies have been awarded a danger rating in this study as result of their failing business strategy.’
He added: ‘The consequences are serious; these companies need to have serious rethink when it comes to their business models. It's likely that jobs will be lost and key projects could be cancelled in an attempt to control the spending.
‘But for some companies it could well be a case of too little, too late.’
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