Audit and tax firm Mazars has warned of more insolvencies in the travel sector, despite the fact borders are starting to reopen.
On the day the US opened to fully vaccinated Brits and other international travel, Mazars figures showed insolvency numbers among travel agents and tour operators were up 17% on last year.
The number of companies ceasing trading rose from 59 to 69.
In July, sector insolvencies rose from one to nine year-on-year.
Rebecca Dacre, partner at Mazars said: “These figures suggest the crisis is far from over for the travel sector.
“Despite an increase in demand many travel agencies face a shortage of cash with which to operate and a shortage of options for credit.
“The insolvencies we’ve seen so far are likely to be the tip of the iceberg.
“In many cases, furlough support has been the only thing keeping travel businesses going. Now these firms will have to pay their whole wage bill and may find creditors knocking at the door.”