It claims a quarter of agencies experiencing difficulty are currently running at a loss, while a third have seen an increase in their need for short-term finance, a sign that costs are running ahead of cash flow.
At a time when banks are less willing to lend, this means these companies in an even more vulnerable position, the report says.
As a result, as many as one in seven travel companies could disappear completely if this trend continues or deepens.
David Pattison, senior analyst at Plimsoll, said: ‘We are reading every day how the credit market and the world of finance is been hit, but nonetheless I was still surprised to see just how much the travel agents market is feeling the pressure.
'I hope this report is recognised as an early warning sign and managers read this and use the findings to steer a course though these tricky times.’
The analysis does show that smaller companies that have concentrated on the local and domestic markets are less exposed to the slow down in the market.
The report names the 1,000 companies best placed to gain in a recession and those likely to fail because their current strategy is unsustainable.
Copies are available for £350. For more information, email:
c.sherwood@plimsoll.co.uk