ABTA Chief Executive Mark Tanzer described the past year as ‘interesting and challenging’ but he told the ABTA Convention taking place in Madeira this week that he was still feeling ‘positive’.
He said the headlines of ABTA’s latest Holiday Habits report were ‘broadly positive’ with the number of people going on holiday nearly back to pre-pandemic levels.
“Demand has held up well despite a range of challenges this year, and that looks set to continue, as does the willingness to prioritise spending on travel over other discretionary items,” he said.
During the opening session of the Convention, Mark added: “Our research shows that if you have got disruption, people tend to go back to travel agents.”
However, he admitted that 2026 had been ‘a tough year for the travel industry’.
“The conflict in the Middle East shook the sector, not just in terms of the initial disruption to travel, but also the ripple effects of changes to fuel supply and prices. How we travel to and through the Middle East has changed and there does not appear to be an immediate resolution of the disruption on the horizon.
“Closer to home, Europe’s new Entry/Exit System, and climate-related events such as wildfires and extreme heat, have also affected people’s travel plans. Together, this is a lot for an industry to deal with over a short period,” he added.
“Perhaps, though, it is the cost of living – more than anything – that has been the constant challenge shaping customer behaviour. While people do continue to spend on travel, they are leaving it much later to departure before committing to their holiday. It is a pattern that is becoming regular for travel businesses, adding increased pressure and unpredictability.
“However, whenever there is disruption it’s an opportunity for the organised travel sector to show its strength and value. More people book with travel agents and tour operators, and more people are choosing a package holiday for the protections it offers, with customers seeing these ways of booking as routes to securing good value for money during these cost-conscious times.
“The difficulties of the last 12 months aren’t behind us but, as an industry, we can move forward with confidence that organised travel remains in demand, and we are part of a growing industry that now contributes £57bn annually to the UK economy.”
Mark said he was also positive about Prime Minister Andy Burnham’s new Government’s initial response to the tourism industry, but urged it not to ‘pile more costs’ on the industry in the forthcoming Budget, including further rises in air tax.
In an interview with Sky news presenter Jonathan Samuels, Mark also said he didn’t see AI as a threat, saying it should be viewed as a ‘member of the team’, not a replacement for the team.
