Travel agents say the cost of travel will rise this year

A significant 95% of respondents predict price increases on travel products this year, survey shows

Summer sun holidays remain the most popular product category, followed by cruises, city breaks and adventure travel.

Half of Irish travel agents reported an increase in revenues last year, compared to 2024, a new survey shows, with almost all agents forecasting a rise in travel prices this year.

The Irish Travel Agents Association (ITAA) said its Annual Industry Barometer showed the industry continued to perform strongly and remain 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.

Nearly half of travel agency respondents (49%) reported increased revenue in 2025, 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 saying 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.

A significant 95% of respondents predict price increases on travel products this year.

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. 

Irish Travel Agents Association chief executive Clare Dunne said its 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.”