Travel Industry Update - January 2026

9 January 2026
PRIORITY saw a very good start to 2025 with strong volumes in quarter one, but things soon slowed again with national and global factors only serving to sustain uncertainty for the rest of 2025.
 
Business was severely impacted by changes to employer national insurance contributions and further increases to the minimum wage. Any positive economic news was easily dulled by ongoing national and global uncertainty including the conflict in Ukraine and the disruption following changes in both economic and foreign policy in the US. For the UK economy investment remains sluggish, while an exponential increase in cyber-attacks impacted on multiple sectors.
 
For the travel industry, cost pressures including wages, food and energy, remain a key concern, and there’s no sign that this will change in 2026.

• While inflation is forecast to return to pre-pandemic levels, 2026 will also see substantial increases in business rates and the minimum wage.
• Safety and security concerns and poor performance in the UK Travel Industry continue, as demonstrated by the roll out of the European Entry Exit System and the nationalisation of rail operators.
• While there may be a desire to phase out exclusive use contracts at hotels, this type of business is still appealing to venue operators due to the lack of confidence in the UK economy.
• While a freeze on rail prices should be positive for the consumer, regulated fares represent around 45% of rail fares, so it remains to be seen how rail operators may look to increase costs in other ways.

From a travel and expense policy perspective PRIORITY continues to provide assistance and guidance, whether this be around navigating cost pressures, or looking at ways to engage travellers to ensure that the policies in place serve to balance the needs and welfare of everyone involved.

Please contact your travel team at PRIORITY.