Online travel firms claim £17.5bn of extra spend can be ‘unlocked’

White paper calls for changes to ‘outdated regulations’ to boost growth

As much as £17.5 billion in travel spend could be unlocked if policymakers change outdated regulations, promote fair competition and remove barriers to innovation, say online travel companies.

A white paper published by Online Travel UK (OTUK), an association of leading online travel firms, says the sector has helped more than 36 million people search for or book travel over the past two years.

Consumer research for the paper outlines choice, value and protection as key drivers for growth in the online booking of flights, rail, package holidays and accommodation.

The new white paper found that 89% of respondents want to compare multiple options in one place, 37% cite value for money as their main reason for booking online and 91% say financial protection is important.

Some 70% of respondents said they want a single app to search, plan and book travel, and 42% said they expect AI to grow in importance for their travel planning.

To help unlock the additional travel spend, OTUK has called for three ‘urgent actions’.

This includes modernising travel and holiday safeguards, increasing consumer choice, updating ATOL and Package Travel Regulations (PTRs) as well as eliminating Linked Travel Arrangements (LTAs) which the association says will ‘reflect modern booking behaviours, remove complexity, and ensure transparency in pricing and ancillary fees’.

It also calls for the promotion of ‘fair digital markets’ and ‘proportionate consumer rules’ to ensure that dominant online platforms like Google treat all travel providers fairly in search results, advertising and AI-driven recommendations.

OTUK also wants to see a world-leading travel tech ecosystem delivered in the UK, with investment in digital skills, innovation incentives and coordinated policymaking to make the UK a hub for travel technology.

A spokesperson said: “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and a level, competitive playing field, these benefits risk being eroded, leading to reduced choice, higher prices and outdated protections.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.”

The white paper also says that 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, but only if government, regulators and industry work together now to protect consumer choice, ensure fair competition and support innovation,” the spokesperson added.

“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 here.