- Two out of three travel agencies struggle under taxation and operating costs
- 86% of businesses rely on inbound tourism to survive
- Online platforms are reshaping competition across the sector
- Funding access and simpler regulations top the industry’s wish list
The Pressure Behind Greece’s Travel Counters
Somewhere between the polished promise of a Greek summer and the reality behind the booking desk, a quieter story is unfolding—one that rarely reaches the traveler’s eye.
According to new findings from INSETE in collaboration with HATTA, Greek travel agencies are navigating a narrowing corridor of challenges. Based on responses from 227 businesses across the country, the data paints a picture of a sector that remains essential—but increasingly strained.
At its core, the industry is outward-facing. A decisive 86% of agencies focus on inbound tourism, acting as intermediaries between Greece and the millions who choose it each year. Domestic tourism accounts for 35% of activity, while outbound travel stands close behind at 34%. These overlaps reflect a flexible but fragile ecosystem, one that depends heavily on external demand.
And yet, beneath this adaptability lies pressure—persistent, structural, and difficult to ignore.
Six Challenges, One Direction: Survival First
The most consistent complaint is also the least surprising. High taxation emerges as the dominant concern, affecting 66% of businesses nationwide. In eight regions, it approaches universal levels, affecting between 80% and 100% of respondents. It is not just a line item—it is a defining constraint.
Closely behind comes operational cost, cited by 64% of agencies. In regions like the Peloponnese and the North Aegean, the burden is nearly absolute. Energy, staffing, and rent add weight to an already narrow margin.
Then comes the quieter disruptor: competition from online platforms. Affecting nearly half the market (49%), this pressure is uneven but sharp. In areas such as Western Macedonia and Western Greece, it reaches 80%. At the same time, regions like Crete and Attica sit just above the national average. The remaining challenges form a secondary layer, but not an insignificant one:
- Staff shortages affect 41% of businesses, rising sharply in island regions and tourism-heavy zones
- Difficulty adopting digital tools remains limited overall (9%) but spikes dramatically in specific regions
- Low demand, while not widespread (11%), hits certain areas with surprising intensity
Taken together, these pressures do not point to collapse—but they do suggest a sector operating without much room for error.
The Digital Gap That Could Decide the Future
There is a certain irony in the numbers. While online platforms are seen as a major threat, only a small percentage of agencies report difficulty integrating digital technology. The implication is subtle but important: the issue is not awareness—it is execution.
Strategic frameworks developed by INSETE, including its roadmap with Accenture, emphasize the transition toward a “smart business” model. This includes adopting new systems, using digital assistants, and embracing multi-channel marketing.
In practical terms, it means that survival may depend less on resisting platforms and more on becoming one—at least in function, if not in form.
What the Industry Is Asking For
If there is one point of clarity in the research, it lies in what businesses say they need.
Two out of three agencies highlight access to funding as their top priority. In several regions, this demand reaches 100%, reflecting the reality that many of these businesses operate on a small scale and have limited buffers against disruption.
Simplifying the regulatory framework is the second most requested, cited by 42% of respondents. In places like the Cyclades and Central Greece, priorities reveal a sector trying to modernize without losing its footing:
- Training and upskilling staff (37%)
- Digital transformation initiatives (34%)
- Demand-boosting campaigns (31%)
- Service upgrades and product diversification
These are practical steps toward staying relevant in a market that has already changed.
A Sector That Still Holds the Line
Despite the pressures, travel agencies remain a structural pillar of Greek tourism. They organize, mediate, and, perhaps most importantly, humanize the travel experience in ways algorithms cannot fully replicate.
As Giorgos Vernikos of INSETE notes, “Travel agencies have been a strategic pillar for the development of tourism in Greece. Behind every travel agency, large or small, there is a business that keeps travelers connected to Greece. These businesses deserve a strategy that speaks their language: less bureaucracy, and access to capital and tools that make them competitive in the digital age.”
Nikos Kelaiditis of HATTA added, “Greek travel agencies are facing a stifling environment, where high taxation, increased operating costs, and intense competition from online platforms severely limit their ability to grow and meet the modern demands of the market. And yet, this is an industry that effectively underpins inbound tourism and plays a decisive role in the organization, reliability, and quality of the Greek tourism product.”
For visitors, little of this is visible. Bookings still go through, itineraries still unfold, and Greece remains, as ever, compelling, but behind the scenes, the system is under pressure. And, as with many things in Greek tourism, its resilience should not be mistaken for invulnerability.
