The debt of Italian travel agencies between the two major international economic crises

Tourist companies, especially in Italy, play a significant role in the economy of a country. In this paper will be analysed the debt trend of travel agencies, covering the period between the two major international crises: the financial crisis of 2008 and the COVID-19 pandemic crisis of 2020. For this purpose, data from the AIDA database on Italian companies in the sector have been used. The financial dynamics of these companies has been analysed using three ratios: the degree of independence from third parties, the short-term debt ratio and the long-term debt ratio. This paper describes the situation in Italy, concerning its three macro regions (north, centre, south and islands). The quantitative analysis showed that companies are over-indebted with short-term sources predominating. Small structural commitments have obviously required low medium-and long-term funding. The major financial needs presumably come mainly from debts to tour operators and other tourist services providers. The main limitation of this study is its quantitative nature, which is limited to a sample of travel agencies with a turnover of more than €800.000 per year. The results are useful for Italian and foreigner entrepreneurs when it comes to compare their situation with the regular one. In the future, the study should also consider other asset and income ratios, as well as examining investments in sustainability, considering the delicate position of intermediary agencies between tour operators and tourists who should develop an equal, ethical, and sustainable tourism.