Business advisor Begbies Traynor says that its data shows that 2,679 travel businesses in the UK are “experiencing significant distress”, also known as “red flags”, according to a report in financial newspaper City AM.

This number of red flags within the travel industry represents a 10% rise on the previous quarter and a 4% increase compared to this time last year.

The report comes days after All Leisure Group went into administration with its two cruise lines, Voyages of Discovery and Swan Hellenic, closing their operations.

Julie Palmer, a partner at Begbies Traynor, told City AM: “Terrorism is a growing concern, and it’s having an impact on the sector.”

Another financial data firm Company Watch has also placed a “warning rating” on the finances of around 1,800 travel agencies and tour operators, which is around 26% of the UK sector, with around 450 of these firms being at “real risk” of collapsing.