Travel agents are facing the brunt of the downturn in the tourism industry due to operators offering direct discounts to the public.

Travel agency owner Susan Watt shut down her shop two days ago, claiming that it was impossible to compete with cruise lines and operators selling direct to the public.

She said that issues were obtaining tickets for customers and cash flow was a problem and it was difficult to operate when the operators were undercutting net prices.

The cruise industry was particularly highlighted by Watt’s complaints, saying that customers were booking their cruises elsewhere and purchasing train tickets from her travel agency.

She said that there wasn’t much point in selling a £3000 cruise for only a £5 profit.

Watt plans to enter the travel industry again at some point and hopes that other travel agents don’t get forced into the same situation; however it seems inevitable that others will.

Other travel agents to close their doors include Kippax in Leeds, Cambulslang Travel in Glasgow, and Newbury cruise specialists Windsor & Neate, which all ceased trading since the downturn in the travel industry hit.

Retail claims coming from the failure of any of the agencies will be handled by Cega, the ABTA’s claim partner.