Keywords

1 Introduction

The global outbreak of COVID-19 caused a substantial decline in the desire for tourism [1]. In 2020, there was a significant 74% decrease in international arrivals, resulting in a reduction of export earnings by USD 1.3 trillion. Moreover, this decline posed a threat to approximately 100 to 120 million jobs in the tourism industry [2]. External limitations like border closures, restricted transportation, mandatory quarantines, and vaccine passport requirements, coupled with internal factors such as risk perceptions, health concerns, fear of the pandemic, loss of control over behavior, and coping challenges, significantly impacted travel decisions [3]. Consequently, the aviation industry, accommodation providers, transport operators, travel agencies, and related sectors endured severe hardships [4]. The consequences extend beyond the financial losses experienced by tourism service providers, as they have also had a significant impact on the overall demand for tourism [5]. In a promising sign of recovery, international tourist arrivals surged to 80% of pre-pandemic levels during the first quarter of 2023. The recovery in 2022 had achieved a 66% level overall, making the current year's progress even more impressive [6].

This study aims to comprehensively analyze the profound effects of the COVID-19 pandemic on travel agencies and outline potential strategies for recovery. In order to address this overarching question, the following research questions have been formulated: To what extent have tourism agents been impacted by the pandemic? Are businesses demonstrating the necessary resilience to withstand the challenges posed by COVID-19? How has the pandemic influenced tourist behavior leading to new tourism trends?

2 The Pandemic’s Impact on the Tourism Industry and Paths to Recovery

2.1 The Travel Market

The spread of COVID-19 has had a significant negative impact on the global travel industry [7]. According to UNWTO [8], international tourist arrivals plummeted by 74% in 2020 compared to 2019, severely impacting the aviation sector. With most fleets grounded and travel demand at an all-time low, the strain on the aviation industry surpassed that of the SARS outbreak and 9/11 terrorist attacks [9]. This decline resulted in the loss of approximately 120 million jobs and an estimated USD 1.2 trillion in export revenues [10]. The cruise tourism industry also experienced a significant economic decline, with its total contribution decreasing by 91.1 billion (59%) from 154.5 billion in 2019 to 63.4 billion in 2020, leading to a reduction of 590,000 jobs (50.6%) [11, 12]. However, revenues from international travel and tourism sur-passed the $1 trillion mark in 2022, increasing by 50% in real terms over 2021 and regaining 64% of their pre-pandemic levels [6]. Global employment in the travel and tourism sector increased somewhat in 2022 compared to the previous year. Despite the growth, there were 295 million travel and tourist jobs globally in 2022, which is still below pre-pandemic levels. This number is anticipated to increase to 320 million in 2023 [13].

Greece heavily depends on tourism, ranking third among countries with a significant connection to this industry, constituting around 21% of its GDP [14]. However, in 2021, the number of overnight stays by travelers drastically decreased by −43.5% compared to 2019, with travel receipts also declining by −41.6% to €10,328 million [14]. This sharp reduction reflects the pandemic's adverse impact on Greece's tourism sector, which relies heavily on international visitors for economic growth [15]. Despite challenges, the Balance of travel services saw some recovery, reaching €15,751.5 million in 2022 [16]. According to the latest WTTC [17] report, the sector has recovered 82% of pandemic job losses and is expected to create over 17,000 jobs this year, aiming to reach pre-pandemic employment levels of 820,000 in Travel & Tourism, matching the peak in 2019.

2.2 Travel Agencies

Travel agencies and tour operators faced an unprecedented economic crisis, primarily driven by widespread cancellations and delays caused by the COVID-19 pandemic [18]. This has resulted in a substantial loss of revenue, creating a dire economic situation for these businesses [19]. However, few investigations have been conducted on the association between Covid-19 and travel agents [19]. Celik and Atac [19] studied the impact of Covid-19 on travel agencies. They found that many agencies had to temporarily halt their business activities, resulting in a significant reduction in turnover, with some experiencing a decrease of 81% or more compared to the previous year. To cope with this situation, agencies have been implementing strategies such as offering grants and credit assistance to support their operations. Additionally, negotiating the postponement of payment dues has been another approach adopted by many agencies to alleviate immediate cash flow pressures. The goal of Atsiz and Eşı̇tti’s [20] study was to determine how the Covid-19 epidemic affected the travel agencies based in Çanakkale. The study's findings demonstrated that the Covid-19 pandemic had a negative impact on travel agencies, that they gave hygiene regulations a high priority and implemented them on their buses and excursions, and that the needs and demands of visitors to the agency altered. Tanakov et al. [21] investigated the impact of digitalization on travel companies and client perspectives. The study revealed significant changes in consumer behavior, with travelers increasingly relying on social media, online travel agencies, and websites to plan their trips. As a result, travel agents must rethink their digitalization strategies to effectively reach their target audience. The COVID-19 pandemic further emphasized the need for adaptation and innovation to meet changing consumer demands, especially with the rise of remote communication methods in selling tourism offerings. The study of Pradini et al. [22] attempted to determine what marketing techniques are employed by travel agency enterprises or travel agents to survive in the Covid-19 pandemic. Based on the findings the following recommendations can be made: Focus on the marketing tactics that have been used to reach the goals that have been set; continue to innovate to keep customers; use employees in sales marketing to build databases to attract more clients; maintain good relations, particularly with those employees who are still in the workforce; and follow government advice to adhere to health protocols to prevent the covid-19.

3 Methodology and Sample

The study used a quantitative research method, surveying Greek travel agencies from January to March 2023. A Greek version of the questionnaire was created and hosted on Google Forms. The survey link was distributed to 430 email recipients across Greece and 132 usable questionnaires were collected. A convenience sample was utilized. Since there were no previous questionnaires available, a focus group consisting of 5 experts was convened to assess the effectiveness of the questions in capturing the relevant topics. Their input helped establish the face validity of the instrument. Following this, a pilot test of the survey was conducted, and participants’ feedback and comments were used to revise and refine the questionnaire.

In Table 1 the agents sample profile is presented. The majority of the surveyed businesses (62.1%) employ 1–5 employees, while 18.9% have more than 15 employees. In terms of years of operation, 70.5% have been operating for over 11 years, with 9.8% operating for 6–8 years or 9–11 years. Only 0.8% are newly established (less than 2 years). The main activities of the businesses include tour operating (31.1%), sale of transport tickets and incoming services (18.2%), bus charters (15.9%), Meetings, Incentives, Conferences and Exhibitions (MICE) services (6.1%), rent a car services (4.5%), and outgoing services or other related activities (3%).

Table 1 Agents’ sample description
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4 Findings and Discussion

The majority of participants (55%) experienced a significant revenue decrease of 81% and above, while 24.2% reported declines ranging from 61 to 80%. Additionally, 15.9% noted a revenue decrease between 41 and 60%. Conversely, 8.3% reported a minimal decline of 0% to 20%, and 7.6% saw a decline of 21% to 40%. Notably, 66% believed that relevant revenues for 2022 would decrease compared to 2019, while 31.8% anticipated an increase, and 18.2% expected revenues to remain the same. In terms of cost reduction, respondents sought cooperation with other companies (23.5%) and reported staff reduction (15%). Technological infrastructure enhancement (11.4%) and alternative cost reduction methods (8.3%) were also mentioned. Commission reduction or branch closure was implemented by 7.6% of respondents, and 5.3% changed suppliers. Additionally, 3.8% ensured cost reduction through asset sales (Table 2).

Table 2 Actions taken to reduce cost
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During the lockdown period, respondents demonstrated a proactive mindset by utilizing the time in various ways. A significant portion (25.8%) focused on planning for the post-Covid-19 era, while 12.1% invested in training for staff or skill development. Innovation and adaptation were emphasized, with 15 respondents developing new products. Maintaining customer connections was important, as approximately 10.6% utilized social networks. Diversification was pursued by 12 respondents through new activities. Rest and personal well-being were recognized by nine participants, while adaptability was shown by some respondents (9) through industry changes. Overall, businesses demonstrated diverse approaches, including planning, training, product development, customer communication, new activities, rest, industry change, and other innovative strategies during the lockdown period (Table 3).

Table 3 How agents took advantage
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A five point Likert scale was used to investigate agents’ satisfaction with the government support measures (Q1). In Fig. 1, it is evident that the opinions of the respondents are diverse, showcasing a range of perspectives. The data reveals that 35% of the participants expressed complete dissatisfaction or dissatisfaction, while 25% maintained a neutral stance. Notably, 40% of the respondents reported being satisfied or very satisfied with the subject at hand.

Fig. 1
A horizontal bar graph illustrates the distribution of the responses in percentages. C 4 has the highest distribution for response 1, whereas C 3 has the highest distribution for response 4. The lowest is response 2 and 3 in C 1, C 2, C 3, and C 4.

Agents’ satisfactions with governments support measures and companies’ resilience

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The questions, namely Q2: “My business had the resilience to deal with the pandemic,” Q3: “My business adapted to the new data created by the pandemic,” and Q4: “The company’s revenue during the pandemic was sufficient for its sustainability,” were designed to assess the agents’ resilience. To assess the reliability of this dimension, the Cronbach's alpha coefficient was employed. The obtained value of 0.746 suggests a satisfactory level of internal consistency among the questions, indicating that the measure is reliable.

The responses from the agents indicate a diverse range of opinions. Regarding Q2, 41% of the agents disagreed or completely disagreed that they possessed the resilience required to navigate the challenges posed by the pandemic. Conversely, 43% agreed or completely agreed that they did have the necessary resilience. For Q3, a significant majority of 61% of the respondents claimed that their companies successfully adapted to the new data generated by the pandemic, demonstrating their ability to adjust their strategies and operations accordingly. Furthermore, when it comes to Q4, a substantial majority of 76% of the agents stated that their companies’ revenue during the pandemic fell short of ensuring long-term sustainability. Overall, these findings show that during the pandemic the companies’ revenue was significantly reduced but the vast majority of the agents successfully adopted to the new circumstances. Interestingly, the opinions of the agents regarding their resilience are equally divided, demonstrating a skepticism for the future of the business.

In order to investigate the diverse perspectives of the agents a new variable RESILIENCE was created from the average of Q2, Q3 and Q4 and Analysis of variance (ANOVA) was conducted to examine the relationship between the number of employees in a company and the dependent variable, RESILIENCE. The independent variable in this analysis was categorized into different groups based on the number of employees.

H0: The mean values of RESILIENCE are equal across firms with different employee ranges, specifically 1–5, 6–10, 11–15, and 15+ .

Ha: That there is a difference in at least two mean values among the employee range groups.

In this case, with a p-value of 0.027, it suggests that the observed differences in means are unlikely to have occurred by chance alone, providing some evidence to support the alternative hypothesis that at least two of the means are different. Based on the table provided, it is evident that businesses with 15 or more employees have achieved success (Table 4).

Table 4 Means/number of employees
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Table 5 presents the participants’ perspectives on the travel trends that emerged as a result of the pandemic. The data highlights a notable shift towards shorter trips and the emergence of boutique tours, which accounted for 18.2% of the responses.

Table 5 Travel trends created by the pandemic
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5 Conclusions

The study reveals a significant decline in revenue for the majority of participants, with businesses anticipating a decrease in revenues for 2022 compared to 2019. To address the financial impact, various cost reduction measures have been implemented, including seeking cooperation with other companies, staff reduction, technological enhancements, strategic adjustments such as commission reduction or branch closures, and supplier changes. Travel agencies utilized the lockdown period for planning, training, product development, customer communication, and other innovative approaches. The satisfaction with government support measures varied among respondents, and there were diverse perspectives on resilience, adaptation to new data, and revenue sustainability during the pandemic. Larger businesses were found to demonstrate higher levels of resilience compared to smaller ones. Furthermore, the study highlights the emergence of shorter trips and boutique tours as prominent travel trends in response to the pandemic. Gaining insights into these behavioral shifts is vital for the revival of tourism businesses, as it allows them to customize their services to align with client expectations and pursue long-term sustainability. The study is subject to a limitation due to the utilization of a small convenience sample.