Hospitality and Travel

Risks Facing Hotels in 2026, and How To Mitigate Them
Risks Facing Hotels in 2026, and How To Mitigate Them 1000 667 James Hallam

In this post we will take a look at some of the trends and challenges that hotels may have to deal with in 2026. We will also explore how hotels and other hospitality businesses may manage and mitigate these risks.

Key Risks Facing Hotels

In 2026, we expect to see a range of risks continuing to impact the hospitality industry. In particular, we expect to see hotels continue to face the following challenges:

  • Cyberattacks
  • Rising Costs and falling profits
  • Staff shortages

We’ll look at these risks in more detail and explore what hotels can do to help mitigate the risk.

Cyberattacks for Client Data

Cybercriminals are getting smarter every year. Advances in artificial intelligence means that their cyberattacks are getting harder to detect, and harder to resist.

Hotels are prime targets for cybercriminals. Hotels store lots of valuable client data on their systems, and it is unlikely that your hotel staff will have received dedicated cybersecurity training to help them understand the risks.

How can your hotel meet the growing risk of cybercrime?
Through investing in staff training, and in advanced cybersecurity solutions. You could also acquire specialist cyber insurance. In the event of a cyberattack, cyber insurance can provide cover for customer data loss, for system breaches, and for any legal fees you might face following the incident.

Be sure to read our full guide to cyber insurance, and what it covers.

Rising Costs, Falling Profits

In recent years, hotels have struggled with rising energy prices and supply costs. And the problem is that guests are also feeling the pinch. If fewer people can afford holidays, then hotels across the world will see their profits tumble.

How can hotels mitigate the risk of rising costs?
There are a few ways in which hotels can stay afloat in this precarious economic landscape:

Hotel Staff Shortages

Across the world, hotels are struggling to attract and retain the skilled staff they need to deliver exceptional customer experiences. Low wages, demanding working conditions, and a lack of career progression means that many have left the industry to look for better paid and less stressful opportunities.

How can hotels tackle staff shortages?
How can you recruit and keep talented workers in such an environment? Through endeavouring to be the best possible employer:

  • Pay your staff as generously as you can. Also think about benefits, including healthcare, paid sick leave, pension contributions, and staff discounts. Yes, all of this will increase your overheads. But investing in your staff can lead to vastly improved customer satisfaction scores; while reducing staff turnover will help you make savings on recruitment costs.
  • Think about the work/life balance. Hotels run round the clock, which can lead to unpredictable rotas and unsociable hours. Consider ways you can help your staff manage these demands, such as through flexible hours, job sharing, time-off-in-lieu, and so on.
  • Aim to create a culture of open communication. Encourage your staff to talk about their concerns, and you may be able to intervene and offer solutions before any serious problems arise. Your frontline staff may also have some great ideas on how you might improve your hotel’s overall operational efficiency too.

Will Your Hotel Insurance Give You The Cover You Need in 2026?

Finally, as we enter the new year, it may be worth reviewing your hotel insurance to ensure it is still giving you the cover you need. The risk landscape for hotels is changing all the time, so a “comprehensive” policy from a few years ago may not necessarily cover you for all risks today.

James Hallam is an independent Lloyd’s broker with a dedicated team of experienced insurance specialists. We are committed to protecting your hotel, your staff, and your guests from every risk you might possibly face in 2026 and beyond.

Find out how we can help you get a bespoke and cost-effective hotel insurance policy today.

 

What AI Tools Are Travel Agents Using and How Do They Affect The Industry?
What AI Tools Are Travel Agents Using and How Do They Affect The Industry? 1000 667 James Hallam

Many travel agents have turned to advanced AI tools to help them in their day to day role. In this post we will look at some of the key AI tools travel agents are using, and explore how they are changing the industry.

How Travel Agents Are Using AI

There are a number of uses of AI for travel agents to help them with their day to day tasks, and to do an outstanding job for their customers. There are a number of key ways travel agents are using AI at the moment, including to help:

  • Plan trips and anticipate up-coming trends
  • Tailor exceptional experiences for their customers and their interests
  • Offer real-time customer service

We’ll explore the specific AI tools travel agents are using to help with each of these tasks and what exactly they can help with.

AI Tools For Travel Agents Planning Trips and Identifying Trends

Some AI tools are specifically designed to make life easier for travel agents when it comes to planning complex trips:

  • Pruvo – This application uses AI models to monitor hotel prices after booking, sending automatic alerts if it detects a price drop. Travel agents can use this service to help their clients make significant savings on the cost of accommodation.
  • Mindtrip – This application can plan personalised trips based on a user’s preferences. The travel agent may need to check on the quality and the feasibility of the app’s suggestions, but this can still make planning tailored travel itineraries a lot quicker and easier.
  • Clickup – This application relies on dedicated AI prompts to help travel agents identify trending destinations and generate personalised itineraries, all while navigating the complex regulatory landscape.

AI Admin Tools For Travel Agents

These AI tools can automate certain admin tasks, which can help travel agents streamline their processes:

  • Legalese Decoder – Ever struggled to understand how certain laws and regulations may impact international travel? This application uses AI to simplify complicated legal documents, to help you ensure your trips stay compliant with all relevant laws. Skimit is a similar tool that can summarise lengthy articles and documents, helping travel agents stay on top of the latest travel trends.
  • Runware – Formally known as PicFinder, this is a tool that can automatically source high quality images to suit your specific content needs. Combined with an AI outreach tool such as Hotreach, this can make content marketing a lot easier for travel agents.

AI Customer Service Tools For Travel Agents

Finally, many travel agents have started to explore the potential of chatbots for providing high quality, real-time customer service around the clock. Previously, customers had to call or email their travel agents and wait for a response, which may have taken hours, or even days. But with chatbots, customers can quickly get the information they need, precisely when they need it.

Advanced chatbots are driven by Natural Language Processing (NLP). This gives them a greater understanding of context and nuance, which makes them much more effective at responding to customer requests and queries. They can even handle cancellation requests and visa questions.

Kayak on ChatGPT is one such chatbot that can help users quickly make detailed travel plans. Some travel agents are looking for ways to integrate such chatbots into their apps, websites, and booking platforms, enabling them to deliver high quality customer service and tailored travel experiences with ease.

Looking To Enhance Your Travel Agent Services With Advanced AI Tools?

At James Hallam, we specialise in providing bespoke insurance packages to UK travel businesses. We are the trusted insurance brokers to ABTA and AITO, and we have close partnerships with ABTOT, Advantage, ABTOI, PTS and ITT.

These specialist travel bodies are actively exploring the potential of AI for transforming the world of travel. So if you want to revolutionise your processes with advanced AI tools, our trusted partners will certainly be able to help. And at the same time, we can help you ensure you have the dedicated insurance you need to cover you and your customers for whatever the future might hold.

Find out how we can help you today.

 

Hotel Sustainability: How to Get the Basics Right
Hotel Sustainability: How to Get the Basics Right 1000 667 James Hallam

Travellers are increasingly concerned about the environmental impact of their trips, which is why some travellers are consciously seeking out greener and more sustainable travel options. According to one survey, 69% of all travellers now seek more eco-friendly travel options.

In this post we will outline some key aspects of hotel sustainability, to help you reduce the environmental impact of your business.

The Benefits of Hotel Sustainability

  • Save money. Sustainability can mean taking steps to improve your energy efficiency while reducing the amount of water you use, all of which can help bring down your bills.
  • Improved community relations. Another aspect of sustainability can involve buying local, and making the best use of resources on your doorstep. So, in short, it can mean giving back to your community. If your customers are worried about the effects of overtourism, your sustainability initiatives may demonstrate that you are not part of the problem.
  • Meet customer expectations. As we mentioned above, certain travellers are actively choosing more sustainable travel options. Investing in hotel sustainability may help you stand out in the crowded travel and tourism market.

How to Start Your Hotel Sustainability Journey

The best place to start with hotel sustainability is through working to reduce your energy and water use. There are a number of ways you can do this:

  • Try LED lighting
    Use energy efficient LED lightbulbs wherever possible. You can also use motion-activated lights in corridors and other communal areas, which will automatically switch off when the room is not in use.
  • Encourage towel and bed linen reuse
    Ask customers to reuse their towels, dressing gowns, and bedding as much as possible, to cut down on the amount of laundry you need to do. You could offer customers a small discount if they choose to forego certain aspects of your housekeeping.
  • Reduce water use
    Reduce the water pressure in your showers, so that customers will use less water.
  • Update appliances to efficient models
    Switch your appliances to greener models wherever possible. An older fridge, for example, may use a lot more power than a brand new, energy-efficient fridge.

The Next Steps to Sustainability

Think Local

  • Local recruitment: Try to recruit from your local area, to cut down on the amount of travelling necessary for your staff to get to work.
  • Local produce: Also order as much of your produce as possible from your local area. This will help you reduce your food miles, while also providing a nice boost to your local economy.
  • Seasonal menus: Offer seasonal menus rather than a set menu, so that you can serve whatever produce is currently available, and so that you do not need to import ingredients from overseas.

Get Certified

Many industry bodies offer hotel sustainability certification schemes.

Getting certified will probably mean that your hotel will have to meet strict sustainability criteria. Working towards meeting this criteria will itself show you which aspects of your operations you need to focus on, while also providing an effective means of measuring your process.

Once you’re certified, you will likely receive an official certificate, and your hotel may get listed in sustainable travel directories. You may also get an official logo to use on your website, which will immediately highlight your commitment to sustainability.

For an example of how sustainability certification works, take a look at the World Travel and Tourism Council’s initiative.

Choose Sustainable Suppliers

Finally, as part of your hotel sustainability commitment, you should only work with suppliers who take sustainability as seriously as you do – whether they are decorators, cleaners, laundry services, or caterers.

This can extend to your insurance provider. James Hallam is an independent Lloyd’s broker with access to a hand-picked selection of A-rated insurance providers. We share your commitment to sustainability, and you can read more about our environmental policy.

Find out how we can help you today.

Hospitality Business Rates Reform: What Changes To Expect
Hospitality Business Rates Reform: What Changes To Expect 1000 667 James Hallam

Following a Government report, certain UK hospitality businesses may pay lower business rates from April 2026.

In this post we will outline the contents of the Government report, and assess what they might mean for your business.

What’s in the Transforming Business Rates: Interim Report?

On 11 September 2025, HM Treasury published an interim report detailing their findings from the Transforming Business Rates Discussion Paper. The report sets out some key areas for reform with a view to removing certain barriers to investment.

The key points include:

  • In the Autumn Budget 2024, the Chancellor announced lower tax rates for retail, hospitality, and leisure businesses with Rateable Values under £500,00, which would come into force from April 2026.
  • It’s not a final policy or set of recommendations but the interim report provides an update on the Government’s findings while outlining their next steps.

Proposed Changes

The report is not a set of policy recommendations. Businesses will have to wait until the Autumn Budget 2025 to get any specific details about exactly what is going to change.

Some proposed changes, though, are:

  • The removal of business rate “cliff edges”, meaning that there will no longer be significant jumps in rates bills between bandings.
  • Possible enhancements to the Small Business Rates Relief (SBRR) scheme, and to the Improvement Relief scheme, to support growth and investment in the industry.

You can read the full interim report.

How Has The Industry Reacted?

UKHospitality has described the report as “positive”, saying that the removal of cliff edges and other barriers to investment will help rebalance the system. But they have urged the Government to “level the playing field” through applying the maximum possible discount to the multiplier for all hospitality properties under £500,000, along with a zero rate for hospitality properties over £500,000.

They have also suggested that, along with lowering business rates, the Government could further help the high street through fixing National Insurance Contributions and cutting VATs. The Night Time Industries Association (NTIA) has called for similar reforms, suggesting that they could “unlock investment, safeguard jobs, and give small businesses the confidence to scale.”

Other trade bodies have suggested additional reforms that could help the hospitality sector. For example, certain organisations in the spirits industry are petitioning for a freeze on alcohol duty.

Is Your Business Ready For Reform?

The Autumn Budget 2025 will take place on 26 November, during which the Government will presumably announce the rates for the new multipliers. Depending on the size of your business, you may start paying lower business rates from April 2026. However, depending on the size of your business, these reforms may result in you paying higher rates.

The interim report suggested that the government will fund the discount through applying a higher rate to all businesses with a rateable value over £500,000. According to the report, this would affect less than 1% of all UK hospitality properties, and would mainly affect “retail giants” with “large distribution warehouses”.

According to Office for National Statistics (ONS) figures, the hospitality figure has suffered up to 89,000 job losses since the Autumn Budget 2024. While some are expecting the 2025 budget to provide a lifeline, it is understandable that others may be wary of what is to come.

At James Hallam, We Can Help You Protect Your Hospitality Business

We understand that these are trying times for hospitality businesses. That is why we are committed to helping you protect your business, through getting true value out of your specialist insurance cover.

James Hallam is an independent Lloyd’s broker with access to a hand-picked selection of A-rated insurance providers. We can help you safeguard your business against whatever the coming years may bring, with tailored insurance cover at a competitive price.

Find out how we can help you today.

Overtourism Destinations and How Travel Agents Can Help Combat It
Overtourism Destinations and How Travel Agents Can Help Combat It 1000 563 James Hallam

Growing numbers of travel agents and tour operators are working to address overtourism, either through promoting alternative destinations, or through focusing on more sustainable travel packages.

In this post we will outline what overtourism is, and explore some of the areas currently affected by the issue. We will also discuss some ways travel agents and tour operators might help combat overtourism.

What is Overtourism?

In short, overtourism means that so many tourists are visiting an area that it is starting to cause problems. These problems might involve:

  • Overcrowding
  • Pollution, due to excess traffic or increased waste
  • Loss of “local colour” or “character”
  • Reduced living standards for locals, as tourist needs take priority over local concerns

In some cases, overtourism may even cost lives. In September 2025, a funicular railway crash resulted in 16 deaths and 21 injuries. The president of a local residents’ association blamed the crash on excessive tourism. They claimed that overuse by tourists placed too much of a strain on the vehicle, resulting in excess wear and tear that ultimately led to disaster.

Top Destinations Suffering From Overtourism

  1. Venice, Italy – Where daily visitors often outnumber permanent residents, and where rising property prices have made housing unaffordable for most.
  2. Barcelona, Spain – Many local businesses have become souvenir shops, and rising costs have meant that some locals can no longer afford to live in their family homes. Some locals even took to protesting against tourists with “tourist go home” signs.
  3. Kyoto, Japan – Historic geisha areas now display signs explicitly requesting that tourists respect local customs and private property. In high season, public transport can get so crowded that some locals struggle to get around.
  4. Machu Picchu, Peru – These 15th century Incan ruins are so popular that the area is facing problems with litter, eroding pathways, and even damage and erosion to the stones themselves.
  5. Dubrovnik, Croatia – Dubrovnik is a popular stop for cruise ships. Over 500 visit the city each year, resulting in huge crowds and increased pollution. Yet because these passengers only spend a few hours in the city, they typically do not spend much money. This means that Dubrovnik may experience all of the downsides of mass tourism, while enjoying very few of the benefits.

How Can Travel Agents and Tour Operators Combat Overtourism?

Do your research about overtourism in your destinations. Before you arrange any trip to any destination, take some time to research:

If so, take it as a sign that you may need to rethink your approach.

Find and promote alternative destinations. Source lesser-known locations and you can help to relieve some of the pressure on popular, overcrowded destinations while still providing rich and rewarding travel experiences for your customers. This might involve finding “dupe” destinations – essentially, places that offer:

  • broadly similar experiences to more popular spots
  • less crowds
  • lower costs
  • less negative impact on locals

Go off the beaten track. If you are going to sell trips and packages to popular destinations, you could still help combat overtourism through sourcing alternative itineraries. Look for:

  • alternative routes and experiences
  • tours with quieter or off-peak hours if you want to include popular and iconic hotspots
  • the opportunity to encourage people to travel outside of the high season

For more ideas on how you can offer high quality tours and packages while minimising the harmful impact of travel, read our guide to sustainable travel.

Specialist Support For Travel Agents and Tour Operators

Your customers should have total peace of mind when booking trips or packages from you. If something goes wrong with one of your trips, we can help you ensure that you and your customers are covered for any resulting claims.

At James Hallam, we specialise in bespoke insurance services for travel agents and tour operators. Our tailored services can help you get the cover you need at a truly competitive price.

Find out more about our specialist insurance services for travel agents and tour operators.

Hotelier Insurance: 5 Key Considerations Every Hotel Should Address
Hotelier Insurance: 5 Key Considerations Every Hotel Should Address 1224 392 James Hallam

By David Noble, Director of Hospitality & Travel, James Hallam Insurance Brokers

Having worked closely with hoteliers across the UK for many years, I’ve seen first-hand the dedication, resilience, and attention to detail that define the hospitality industry. At James Hallam, we’ve proudly served the sector since 1982 – and one constant remains: no two hotels are the same and neither are their risks.

Here are the five most important hotelier insurance considerations to ensure your business is properly protected and positioned for long-term success.

1. Every Hotel Has a Unique Risk Profile – Understand Yours

The first step in developing the right hotelier insurance strategy is understanding the specific risks your hotel faces. A boutique city hotel has very different exposures compared to a seaside resort or country estate.

Factors that influence the cover you need:

  • Location and surrounding risks
  • Services and amenities offered
  • Guest demographics and booking trends

Our role is to tailor insurance that reflect these nuances to ensure you’re not overpaying for cover you don’t need – or under-protected where it matters most.

Find out more about how we can help you assess your risk profile.

2. Don’t Overlook Business Interruption Cover – It’s Crucial

One of the most underestimated forms of hotelier insurance is business interruption insurance. From fires and floods to power outages, operational disruptions can happen unexpectedly – but the financial fallout often lasts months.

Why it matters:
Business interruption insurance supports your hotel by compensating for lost income and fixed overheads during closure periods. It’s essential that the indemnity period matches a realistic recovery timeline. We work with our hoteliers to model realistic recovery times and build the right protection around them.

3. Cyber Risk Is a Modern Hotelier’s Reality – A Business-Critical Issue

The hospitality industry has become a prime target for cybercrime. From guest data to booking systems and point-of-sale software, hoteliers handle an enormous volume of sensitive information daily. A cyber breach doesn’t just result in downtime, it can lead to serious reputational and legal consequences.

What to include in your hotelier insurance policy:

  • Cyber insurance for financial protection
  • Staff training on cybersecurity best practices
  • Regular system audits and updates

Cyber resilience is no longer optional – it’s a core part of your insurance planning.

4. Documentation Can Make or Break a Claim

Effective hotelier insurance doesn’t stop at having the right cover – it also requires strong documentation to support your claims.

Recommended practices:

  • Maintain an incident report protocol
  • Keep equipment and maintenance logs
  • Train staff in proper reporting procedures

Well-kept records can significantly speed up claims processing and ensure fair settlements.

5. Choose a Broker Who Knows Hospitality

Not all insurance brokers understand the complexity of the hospitality industry. At James Hallam, our hospitality team is made up of specialists who live and breathe this sector. We understand the regulatory pressures, the staffing challenges, the seasonal changes.

We provide:

  • Industry-specific advice
  • Ongoing claims support
  • Strategic risk management tailored to your operations

Hotelier insurance isn’t just about policies – it’s about partnerships built on trust, experience and advocacy.

Let’s Talk Hotelier Insurance

Whether you’re reviewing your current insurance or planning a new strategy, I’d welcome a conversation. Our goal is to ensure your hotel is protected – today, and for whatever comes next.

Contact David Noble: david.noble@jameshallam.co.uk
Or book a call with our hospitality insurance team

A Hoteliers Guide to Managing Risk
A Hoteliers Guide to Managing Risk 600 400 James Hallam

For hoteliers, providing exceptional guest experiences is the top priority. However, ensuring the safety of both guests and staff, protecting the property, and managing operational risks are just as critical to running a successful business.

At James Hallam, we work closely with hoteliers to identify risks, implement proactive solutions, and ensure they have the right insurance coverage in place. Nick Maddox, our risk management specialist, shares his insights on the most pressing risks facing the hospitality industry today—and how hotels can stay protected.

Understanding the Biggest Risks

While fire remains one of the most significant concerns for the hospitality sector, advancements in construction and fire prevention have helped reduce the risk to life. However, the financial impact of a fire has increased, largely due to rising material costs, limited availability of skilled trades, and planning or heritage restrictions.

Beyond fire, slips, trips, and falls continue to be the most frequently reported incidents in hotels, making up nearly 50% of all accident claims. In fact, over the past year alone, we’ve seen a 13% rise in these incidents. This highlights the importance of maintaining a safe environment through proper flooring, lighting, and staff awareness.

Common Pitfalls in Risk Management

One of the biggest challenges we see is that while many hotels have detailed policies and risk assessments, they often fail to implement them effectively. Risk management should not be seen as a tick-box exercise but rather as a core part of daily operations.

To be effective, risk management should follow three key steps:

  1. Identify the specific risks to the business
  2. Develop practical and achievable control measures
  3. Ensure staff are properly trained so that risk management becomes part of the hotel’s culture

Taking a Proactive Approach to Risk Reduction

Every hotel has a unique risk profile, but there are key areas that all hoteliers must focus on, including:

  • Fire safety – Ensuring compliance with fire regulations and best practices
  • Food hygiene – Reducing the risk of contamination and foodborne illness
  • Health & safety – Preventing accidents through proper training and procedures
  • Property protection – Safeguarding the hotel’s physical assets
  • Cybersecurity – Protecting guest and business data from cyber threats

Beyond meeting legal and regulatory requirements, hotels must also demonstrate effective risk management to insurers. Without the right safeguards in place, claims may be delayed, reduced, or even declined. Regular internal assessments, or engaging an external risk management specialist, can help ensure compliance and minimise exposure.

The Importance of Staff Training

A strong risk management culture is key to protecting any hotel, and this starts with ongoing staff training. At James Hallam, we focus on four core principles that help embed risk awareness across teams:

  • Communication – Keeping staff informed about risk management policies
  • Consultation – Encouraging team input to identify potential hazards
  • Collaboration – Working across departments to ensure best practices are followed
  • Coordination – Ensuring all teams are aligned on risk mitigation strategies

Effective training not only reduces risk but also helps staff feel confident and engaged in their roles, creating a safer and more efficient working environment.

Mitigating Cyber Risks in Hospitality

Hotels rely on digital systems to manage reservations, guest data, and payments, making them a prime target for cyber threats. While most businesses outsource IT security to specialist providers, hoteliers should take an active role in understanding how their data is protected.

We always recommend:

  • Conducting regular cybersecurity assessments to identify vulnerabilities
  • Ensuring robust data protection measures are in place
  • Considering comprehensive cyber insurance to safeguard against potential breaches

How James Hallam Supports Hoteliers

At James Hallam, we work with hoteliers to tailor risk management solutions that go beyond just insurance. Our comprehensive risk audits assess both insurable and non-insurable exposures, ensuring that hotels:

  • Meet regulatory and compliance requirements
  • Implement best practice risk management
  • Provide insurers with clear and accurate risk assessments

By taking this proactive approach, we help our clients not only secure the right insurance cover but also reduce the likelihood of claims—ultimately protecting their business and reputation.

Final Advice for Hoteliers

Risk management isn’t about reacting to incidents; it’s about anticipating what could go wrong before it happens. Successful hoteliers are those who can predict the future by identifying emerging risks and taking action to mitigate them.

By adopting a proactive and structured approach to risk management, hoteliers can create a safer environment, protect their assets, and ensure long-term success. At James Hallam, we are here to help every step of the way.

Contact Nick Maddox
Email: nick.maddox@jameshallam.co.uk
Tel: 07876 204692

How Travel Agents Can Offer More Sustainable Travel Options
How Travel Agents Can Offer More Sustainable Travel Options 500 220 James Hallam

In late 2024, Booking.com surveyed nearly 28,000 travellers who planned to travel for business or leisure over the next couple of years. Among other things, they asked these travellers about their key priorities when planning trips.

A major priority for many travellers – and one which appears to be getting more important with every passing year – is sustainability.

In another survey, around 75% of travellers said they want to travel more sustainably in 2025.

In this post we will briefly explain what “sustainability” means in travel and tourism, before discussing how travel agents and tour operators can offer more sustainable travel options.

What Makes a Trip Sustainable?

For many, “sustainability” is synonymous with CO2 emissions. The lower the emissions associated with a trip, the more sustainable that trip will be. This can mean travelling shorter distances with a greater reliance on less carbon intensive forms of transport. A train will likely be more sustainable than a plane, for example.

Yet there is more to sustainability than carbon emissions. Sustainability also means taking steps to protect the “essence” of a place, whether that is a unique local character or a fragile eco-system.

So, as well as reducing their carbon footprints, travellers want to tread lightly wherever they visit; to immerse themselves in the local culture while avoiding activities that might in some way compromise the environment or the local community.

How Travel Agents Can Offer More Sustainable Travel Options

Below we will discuss some ways that travel agents and tour operators can offer more sustainable travel options in 2025 and beyond.

Sustainable Travel and Accommodation

Ideally, you could prioritise destinations that your customers could easily reach by more sustainable modes of transport, such as coach or train. Yet to remain competitive in a crowded and fast-moving industry, you will likely always have to sell packages and experiences that will involve air travel.

So, instead of avoiding air travel entirely, aim to only work with airlines that have achieved sustainable certification, such as the IATA Integrated Sustainability Program. Also, remember that direct flights are always better than a series of connecting flights, as planes emit the most CO2 at take-off and landing.

Similarly, when it comes to accommodation, try to avoid the major resorts and hotel chains. Instead, look to the smaller, independent, and boutique accommodation providers – those who are more likely to employ locals and to source their food and other supplies from the local area.

Create Off-the-Beaten-Track Packages and Support Independent Business

“Vintage Voyaging” is a type of travel experience Booking.com predicted will become popular in 2025. This means “embracing a thrifty or vintage mindset when travelling”:

“It’s about immersing yourself in a place’s history and heritage. These trips treat the experience of travelling as a souvenir in itself, with vacationers seeking to enjoy deeper cultural connections with the destinations they visit by rejecting globalised consumerism and choosing to shop locally instead.”

How might a travel agent or tour operator offer such a “vintage voyaging” experience? Through creating packages that will allow customers to travel to emerging “off-the-beaten-track” locations, ideally with lots of independent shops, restaurants, and accommodation options.

Take a look at 10 such sustainable travel destinations the BBC recommended in early 2024.

Get Accredited

If you want to attract the green-minded traveller, then it will help to get accreditation to highlight your commitment to sustainability.

For example, the Global Sustainable Tourism Council (GSTC) offers a certification scheme. If you join the scheme, you can also join the GSTC Market Access Program, a global network of hotels and accommodations that also have certification.

Tailored Support For Tour Operators and Travel Agents

At James Hallam, for over 35 years we have provided dedicated insurance services for travel agents and tour operators. Our tailored services can help you get the cover you need at a truly competitive price.

Find out more about our bespoke insurance services for travel agents and tour operators.

 

Future Trends and Predictions for the Travel Industry in 2025
Future Trends and Predictions for the Travel Industry in 2025 500 310 James Hallam

In this post we will share some of the trends that could shape the travel industry in 2025 and beyond.

No matter what happens in the travel industry over the next 12 months, you can depend on us to get you the cover you need, at the best possible price. Find out more about our specialist insurance services for travel agents and tour operators.

How Will Climate Change Impact the Travel Industry?

In recent years some parts of the world have experienced record high temperatures. This made certain destinations too hot for tourists, while making it difficult for some aircrafts to take off. There have also been numerous extreme weather events, which inevitably impacted the travel and tourism industry.

Will 2025 also see soaring temperatures, heavy rains, flooding, and storms? In any case, travel industry leaders are already anticipating how a changing climate could affect the way we travel.

Travellers could face more risks, and disruptions may become more frequent, and more severe. Plus, travellers may choose to avoid formerly popular destinations to avoid the risks of extreme heat and possible flooding, such as certain continental cities and coastal resorts.

Read our full guide to how climate change may affect tourism destinations.

What Do Customers Want From Their Travel Experiences in 2025?

In late 2024, Booking.com surveyed their customers to get an idea of the sort of trips that might prove popular in 2025. Here are their key travel predictions for 2025:

  • Travellers are increasingly concerned with sustainability. (link to other Jan blog)
  • People are looking for “authentic” experiences. Resorts and package deals may prove less popular than in previous years. Instead, travellers will look for “off-the-beaten-path” experiences, with particular interest in wellness, adventure, nature-based activities, and “nocturism”. That means “nocturnal tourism”, with trips focused on activities that take place at night, such as stargazing.
  • As well as catering to solo travellers and couples of all ages, travel and tourism operators should also deliver travel experiences for the whole family.

Predicted Trending Travel Destinations for 2025

Booking.com also predicted a few trending destinations for 2025:

  • Sanya, China
  • Trieste, Italy
  • João Pessoa, Brazil
  • Tromsø, Norway
  • Willemstad, Curaçao
  • Tignes, France
  • Villajoyosa, Spain

New Opportunities for the Travel Industry from Technology

Technology is revolutionising the travel and tourism industry. According to research from Mastercard, 56% of travel companies are focusing their strategic planning on rising customer expectations for digital user experiences.

What sort of digital trends will reshape the travel and tourism industry in the coming years? AI will mean that automated systems will increasingly replace human interactions. Airlines may turn to biometrics and facial recognition systems in lieu of boarding passes.

Customers will increasingly expect a totally streamlined and personalised experience, where travel companies recognise and meet their needs in real time, ideally without the customer needing to take any actions themselves.

New Cyber Security Risks for Travel Agents

As ever, along with bringing new opportunities, technology also brings a host of new threats. A growing reliance on interconnected digital systems will put travel companies, and their customers, at increased risk of cybercrime. Plus, agencies have warned that cybercriminals are now using AI tools to automatically target and attack businesses.

If you are a travel agent or tour operator, and you have not yet taken steps to secure your systems, make 2025 the year you start taking cyber security seriously. Read our full guide to cyber security for travel agents and tour operators.

We Can Help You Make The Best of the Opportunities that 2025 Will Bring

At James Hallam, for over 35 years we have provided dedicated insurance services for travel agents and tour operators. Our tailored services can help your business stay resilient and competitive, no matter what challenges and opportunities 2025 might bring.

Find out more about our bespoke insurance services for travel agents and tour operators.

Tourism Destinations and the Impact of Climate Change
Tourism Destinations and the Impact of Climate Change 500 334 James Hallam

In this post we will assess how climate change might affect the tourism industry. We will also discuss some precautions you can take as a travel agent or tour operator to safeguard your business and your customers.

When Summer Holidays Become Dangerously Hot

Summer 2023 was one of the hottest in recent memory. Greece had to evacuate over 2,000 holidaymakers as temperatures reached 45°C, and wildfires broke out on the island of Rhodes. Visitors to Rome also chose to end their holidays early due to the heatwave. Meanwhile, many flights were cancelled as aircraft were simply unable to take off in the hot, dense air.

Summer 2024 was not as intense as the previous year. In Athens the July temperatures reached a daily average of around 32°C. In Rome, the daily average temperature in July was around 28°C. Yet there were still concerns about the excessive heat. Athens once again was forced to close schools and some major tourist attractions.

How a Rise in Extreme Weather Conditions Affect the Travel Industry

As well as rising temperatures, some attribute extreme weather conditions to the changing climate. Climate scientists have linked heavy rains, flooding, drought, wildfires, and storms to climate change, all of which will affect the travel and tourism industry.

Certain coastal destinations are also concerned about rising sea levels. According to one University of Cambridge study, around 60% of Caribbean coastal resorts may be at risk of sea level rise.

The Travel Industry’s Carbon Footprint

The World Economic Forum has pointed out that the travel and tourism sector accounts for around 10% of all global greenhouse gas emissions. On top of this, total emissions from tourism are forecast to rise by around 25% by 2030.

It is easy to imagine how governments may penalise travel companies for these emissions, via taxes, fines, and strict regulations. This will increase the cost of doing business, which companies will pass on to their customers. Global travel, then, may become increasingly expensive in the coming years.

What is the Impact of Climate Change on Travel and Tourism?

  • New Tourist Destinations – Tourists may choose to avoid previously popular city locations, such as Athens and Rome, along with coastal resorts where rising sea levels are a concern.
  • New Risks – All travellers may face an increased risk of encountering extreme weather events, such as fires, floods, and storms.
  • More Travel Disruption – It may become more likely that holidaymakers will have to abandon their travel plans as a result of rising temperatures and other risks.

How Can Travel Agents and Tour Operators Prepare For A Changing Climate?

  • Be Flexible – You may not always be able to sell the same packages, and the same destinations, as you do today. Keep an eye on global travel trends so that you can identify the popular new travel destinations as early as possible.
  • Get The Right Cover – Make sure that any travel insurance you provide includes cover for the risks associated with extreme weather events. Plus, if rising temperatures means that holidaymakers will face more cancellations and uncertainty, it is vital that you get cover for supplier failure, and other forms of disruption.

We Can Help You Ensure You Are Fully Covered for Emerging Risks as a Travel Agent or Tour Operator

At James Hallam, we have provided dedicated insurance services for travel agents and tour operators for over 20 years. The global travel agency has changed significantly over the past few decades, but we have always helped our travel and tourism clients stay resilient.

We will take the time to understand your business so we can tailor the best possible travel and tour insurance programme for you and your customers. So if you are concerned about how your industry might be affected by a changing climate, we can help you prepare for any additional risks you might face.

Find out more about our specialist insurance services for travel agents and tour operators.

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