For much of the past two decades, traditional brick-and-mortar travel agencies have been in decline, with the ease and value of online booking platforms proving more favourable.
However, spending on travel has grown consistently since March 2021, with travel agents, airlines and package holidays all seeing renewed demand, according to Barclays’ ’10 Years of Spend’ report released in July.
Australian-founded travel brand Flight Centre has been at the heart of this revival. In the UK, the company has been expanding again after the pandemic forced it to scale back its physical stores.
For much of the past two decades, traditional brick-and-mortar travel agencies have been in decline, with the ease and value of online booking platforms proving more favourable.
However, spending on travel has grown consistently since March 2021, with travel agents, airlines and package holidays all seeing renewed demand, according to Barclays’ ’10 Years of Spend’ report released in July.
A third of consumers (33%) are allocating a greater share of income to holidays, while nearly half (49%) say they value travel more than they did 10 years ago.
Additionally, the traditional global travel agency sector is projected to grow from $149.14bn (£110bn) in 2024 to $157.74bn (£116bn) in 2025, according to the Business Research Company.
Australian-founded travel brand Flight Centre has been at the heart of this revival. In the UK, the company has been expanding again after the pandemic forced it to scale back its physical stores.
Pre-2020, Flight Centre operated 78 branches nationwide, but this was then reduced to 12. The company has since begun reopening, with a new North London store added earlier this year and further sites planned for South East London in the coming months.
Now, as the business expands physically, Flight Centre is also repositioning itself as a full-service travel retailer, offering tours and accommodation, instead of solely a flight booking agency.
“We’re definitely in a growth phase,” explains UK general manager Joe Beevis.
To support this shift, the company has launched one of its largest UK brand campaigns in recent years to build awareness and trust. The integrated activity spans print, digital, radio and out-of-home, including creative deployed across digital signage in-store.
Full page print ads and digital takeovers incorporate three variants of Q&A-style copy, where an unnamed consumer asks a question such as: ‘I thought you only sold flights?’
In response, Flight Centre UK’s brand voice responds with ‘This is awkward’, before going on to explain the full-service travel agency has been selling tailor-made holidays – incorporating cruises, tours, hotel stays and car hire – for over 40 years.
For over 40 years, Flight Centre’s tagline and position in the market have continually evolved, and this is really the next evolution of that.
Joe Beevis, Flight Centre
Beevis explains the intent is to “reframe” the perception of the brand, as well as to build engagement with new and existing customers.
“We’re selling experience to customers, not a physical product,” he says. “The creative has powerful visuals, a relaxed tone and leans on the brand’s cheeky Aussie roots with the language.”
The initiative forms part of Flight Centre’s wider global “brand modernisation” strategy. A new global tagline, ‘Your centre for travel’, was introduced earlier this year, positioning the company as a general provider of travel services rather than a flight-focused retailer.
“For over 40 years, Flight Centre’s tagline and position in the market have continually evolved, and this is really the next evolution of that,” says Beevis. “When customers are thinking about travel, we want them to think about Flight Centre and not just the flights.”
As part of its ongoing transformation, this month Flight Centre appointed Frances Sue as head of marketing. Sue, who previously held senior roles at WHSmith, Greene King and Currys, now reports to Beevis and global marketing head Megan Henderson in Australia.
The next era of travel
Despite the resurgence in travel agents, the rise of generative AI has had a noticeable impact on how consumers research and find inspiration for travel. Deloitte data shows between October 2023 and October 2024, the share of respondents using AI tools for trip planning doubled from 8% to 16%.
Yet Beevis insists technology alone cannot meet the needs of many travellers and that a physical presence provides customers with a sense of reassurance. He believes AI can play a role in helping customers with inspiration, but ultimately they will want to book with a brand they “know and trust”.
“They really want to sit down and discuss those trips with a person, and we see that feedback continuously,” he says. “We’re seeing customers really valuing the time that they spend sitting down in stores, over the phone or on email.”
The campaign targets the “broad British public”, but Beevis notes retirees remain among Flight Centre’s most frequent customers.
“They have more disposable income at that stage in their life. But equally, we also book a lot of families, couples and solo travellers,” he adds.
Beevis points to particular strength in bookings to Australia, in line with the brand’s heritage, and a recent uptick in demand for Asia. Tour and cruise bookings are also seeing double-digit growth, as travellers increasingly value curated, small-group experiences.
At a group level, Flight Centre Travel Group reported AU$289m (£140m) in underlying profit before tax for the year ending 30 June, a 10% decline from the AU$320m (£155m) achieved in 2024.
The UK market is performing ahead of the group average, notching up year-on-year growth of 15%.
