PRESS RELEASE: £17.5BN in online travel spend could be unlocked if policymakers take action now
Action needed to increase consumer choice, drive growth and support innovation, says Online Travel UK in new white paper
Online travel companies have helped over 36 million people search for or book travel over the past two years, and they could spend £17.5 billion on their next trip booked online.
But, according to a new white paper from Online Travel UK (OTUK), the government needs to act now to change outdated regulations, promote fair competition and remove barriers to innovation in the sector.
The paper, from the coalition of the best-known online travel companies in the UK, sets out that intermediaries, online travel agencies, booking and rail platforms help millions of UK consumers search or book travel products and services including flights, rail, package holidays and accommodation.
Online Travel UK says, “Online travel companies make it easier and more affordable for millions of UK families to travel. But without modernised rules and a level, competitive playing field, these benefits risk being eroded, leading to reduced choice, higher prices and outdated protections. We urge government and regulators to act and look forward to working together to secure a thriving, innovative travel sector that delivers for consumers and the economy.”
Consumer research for the paper outlines choice, value and protection as key drivers:
· 89% want to compare multiple options in one place.
· 37% cite value for money as their main reason for booking online.
· 91% say financial protection is important.
· 42% expect AI to grow in importance for their travel planning.
· 70% want a single app to search, plan and book.
OTUK calls on government and policymakers to take three urgent actions:
1. Modernise travel and holiday safeguards, increase consumer choice - update ATOL and Package Travel Regulations (PTRs) and eliminate Linked Travel Arrangements (LTAs) to reflect modern booking behaviours, remove unnecessary complexity, and ensure transparency in pricing and ancillary fees.
2. Promote fair digital markets and proportionate consumer rules - ensure dominant online platforms like Google treat all travel providers fairly in search results, advertising and AI-driven recommendations.
3. Deliver a world-leading travel tech ecosystem - invest in digital skills, innovation incentives and coordinated policymaking to make the UK a hub for travel technology.
The white paper outlines how online travel companies not only connect consumers to travel products and services worldwide, but also invest in technology, jobs and digital skills, which supports UK-based travel tech businesses to compete globally, driving growth.
“The UK can be a world leader in travel-tech innovation,” OTUK adds. “But only if government, regulators and industry work together now to protect consumer choice, ensure fair competition and support innovation. The actions outlined in our paper are targeted, practical and pro-consumer and we will continue in earnest to engage with policymakers on the detail.”
The full white paper The Value of Online Travel Companies in the UK: supporting consumers, growth and innovation is available at onlinetraveluk.com/whitepaper
