TL;DR
- TUI’s UK Managing Director revealed that independent agents now handle 10% of their total bookings, and the company is expanding their trade team to keep up with demand.
- TUI’s CEO shared that his own Gen Z kids chose to use a travel agent instead of booking online.
- The data shows 61% of Millennials use agents, and the UK travel agency market is set to grow from £45.3 billion in 2025 to £61.9 billion by 2028.
What Happened at ABTA This Week
At this week’s ABTA Travel Convention, TUI UK Managing Director Neil Swanson shared some figures worth noting. Independent agents now account for 10% of TUI’s total bookings, and this channel is growing faster than TUI’s own retail shops.
Swanson said he “couldn’t be happier” with how independent agents are performing. TUI has doubled their trade team from 8.5 people to 17, with plans to expand further if demand continues.
The Data from Multiple Sources
61% of Millennials actively use travel agents during their booking journey. Gen Z, who grew up with smartphones in hand, show 23% using travel agents.
The UK travel agency market is projected to grow from £45.3 billion in 2025 to £61.9 billion by 2028. That’s an 8.2% annual growth rate.
TUI has increased its ATOL capacity by 2% to just under 6 million passengers for 2026, partly driven by growth from independent agents.
What TUI’s CEO Shared About His Own Family
TUI CEO Sebastian Ebel told The Telegraph about his own Gen Z children choosing to use a travel agent instead of booking their trips online. “Why should we spend all our time searching for the right thing? I want to hand over the problem to someone else,” says the TUI CEO.
Ebel also addressed the trust factor. With concerns about fake news and edited photos on social media, agents provide verification. “We can guarantee that what you do see, you will get,” said Peter Krueger from TUI.
The Commercial Picture
TUI reports that customers booking through agents generate higher margins compared to other channels. Ebel described retail customers as “higher value customers” and noted that “the quality of the retail customer is so much better.”
The company is increasing FAM trips by 10% and hosting more face-to-face educational events for agents.
Different age groups show different patterns. Millennials lead with 61% using agents, often for experience curation and complex trip planning. Gen Z sits at 23%, looking for convenience over spending hours researching online. While 90% of Gen Z research travel on social media, nearly a quarter turn to agents for the actual booking.
Where Things Stand Now
TUI has doubled their trade team and is planning further expansion. The UK travel agency market is projected to grow by £16.6 billion over the next three years. TUI’s investment in their trade team is based on data showing that customers booking through agents generate higher margins.
Major tour operators are backing the agent model with financial investment. Training opportunities are expanding. The data shows that younger travellers, despite being digital natives, are using agent services.
Agent Advantage Insight: TUI’s CEO watched his own Gen Z kids choose agent service over DIY booking because they wanted expertise rather than spending time on research.
