According to the CBI, the UK’s travel industry has experienced a slowdown.

The last quarter has been particularly difficult for the travel sector, according to a recent survey by the Confederation of British Industry (CBI), which has revealed that business volumes within the industry are at their lowest in five years.

The CBI’s Sector Survey reported on the quarterly results for both the business and professional services, and the consumer services firms, and described the situation as “challenging”. Profitability and business values had fallen steeply within the tourism industry for the second successive quarter, and it is predicted that they will fall during the next quarter as well.

The survey of 176 firms comes despite the news that Virgin Atlantic has experienced rising profits and passenger numbers – particularly within its business class – while the Thomas Cook Group recently reported a summer of strong trading.

Ian McCafferty, Chief Economist Adviser at CBI, commented that the whole services industry was under pressure: “The pressure, mainly confined to consumer services such as hospitality and travel, has now spread to the professional and business services sector, covering areas such as marketing and legal services.

“This reflects much tougher trading conditions for business and professional firms, after a period when business trends had been holding up in the face of the slowing economy.”

The hospitality sector fared slightly better than most, with business volumes and values expanding strongly, however it also experienced a decline in profitability. All sectors have predicted a slowdown in business expansion over the next 12 months, with confidence at an all-time low.