Recent Budget announcements have sparked discussions about potential staffing changes.
- Employers’ national insurance contributions and minimum wage are set to rise, impacting business costs.
- Industry leaders are divided on the potential impact on employment within the travel sector.
- Some firms are committed to retaining staff despite financial pressures.
- Others are considering adjustments in staffing levels to manage increased expenses.
The latest Budget announcement has led to mixed reactions within the travel industry, primarily due to the slated increase in employers’ national insurance contributions from April 2025 and a 6.7% rise in the national living wage. These changes are expected to impose additional financial burdens on businesses, prompting discussions about potential staffing adjustments.
Scottish Passenger Agents’ Association president Jacqueline Dobson acknowledged the challenging nature of the Budget for employers, highlighting that the increasing wage costs may force travel firms to re-evaluate their staffing levels. However, she remains optimistic about the prospects for 2025, predicting a strong year for members despite these challenges.
Abta chief executive Mark Tanzer expressed concerns about the Budget’s implications for travel businesses, noting the significant increase in employment costs. Small to medium-sized enterprises (SMEs) may find these additional expenses particularly burdensome, running into tens of thousands, as echoed by Idle Travel director Tony Mann, who anticipates a £15,000 increase for his business.
Despite these economic hurdles, many firms are committed to safeguarding their workforce. Polka Dot director Mark Johnson emphasized the importance of staff, stating that the Budget may add substantial costs but reaffirmed the company’s dedication to its employees. Similarly, Travel Village Group chief executive Phil Nuttall cited the company’s history of job protection during the Covid pandemic as a motivation to maintain this strategy.
While some are cautious about growth, Premier Travel continues to expand its team, contingent on sales growth. Managing director Paul Waters reiterated the critical role of staff within the company’s strategic plans, with recruitment and staffing approaches remaining largely unchanged.
Nicola Park, owner of Seaside Travel, maintained that despite the Budget’s challenges, her agency’s expansion plans would not be hindered, illustrating a determination to grow even amidst financial constraints. The Travel Network Group’s chief executive, Gary Lewis, described the Budget as a mix of challenges and opportunities, urging members to assess their situations and plan accordingly.
Additionally, C&M Travel Recruitment’s managing director Barbara Kolosinska welcomed the rise in the national living wage, anticipating that it might elevate other industry salaries and improve staff attraction. However, she acknowledged that this could slightly impact recruitment expenditure.
The travel industry faces a delicate balancing act between managing rising costs and retaining essential staff, as businesses navigate the challenges posed by the latest Budget.
