Travel Agents Industry Barometer Shows Resilient Sector Despite Rising Costs and Economic Uncertainty

The Irish Travel Agents Association has published the results of its Annual Industry Barometer, revealing that Ireland’s travel industry continues to perform strongly and remains profitable, despite rising operating costs and shifting consumer preferences.

The survey was completed by ITAA travel agent members across different sectors including leisure travel, corporate travel and other niche sectors. Overall, the findings point to optimism for the travel sector in 2026, with strong profitability providing a solid foundation amid rising economic and operational challenges.

Nearly half of travel agency respondents (49%) reported increased revenue in 2025 compared to 2024, with a further 24% reporting stable performance. Customer figures also showed resilience, with 41% of businesses reporting year-on-year growth. Profitability remained strong, with 86% of respondents stating their business made a profit in 2025.

Despite these positive indicators, the industry faces significant challenges. Political uncertainty was cited as the top concern by 70% of respondents, followed by rising payroll costs (51%), declining disposable income among consumers (46%) and increasing operating costs (35%). Recruitment difficulties and the cost of pension auto-enrolment were also identified as emerging pressures for the travel industry.

In addition to increasing operational costs, a significant 95% of respondents answered that they predict price increases on travel products for 2026.

Leisure travel continues to dominate the Irish agency sector, with almost 60% of respondents describing their business as leisure-focused. Families and couples represent the primary customer segments while summer sun holidays remain the most popular product category, followed by cruises, city breaks and adventure travel.

Survey respondents also highlighted growing competitive pressure from global online platforms, alongside concerns about a potential economic slowdown and geopolitical tensions that could impact travel demand. The ITAA continues to advise consumers travelling abroad to book with an IAA licensed ITAA member travel agency, to benefit from professional expertise, trusted advice and personalised customer service.

Clare Dunne, CEO of the Irish Travel Agents Association, said: “Our members demonstrated remarkable resilience in 2025, delivering strong results in a challenging global environment. The coming year will again test the sector, with geopolitical instability, rising costs and affordability concerns weighing on business confidence. However, ITAA travel agencies remain optimistic and focused on delivering value, expertise, trusted advice and top-class personal service to Irish travellers.”