Speaking on the first day of Hays Travel’s retail conference in Antalya, Turkey, agency owner and chairwoman Dame Irene Hays said the company had always prided itself on paying its staff beyond the minimum wage.

She stressed that the agency would continue to adhere to this practice which, combined with additional National Insurance costs, will see Hays’ payroll increase by 10%.

“We pay more than the national living wage and we are proud to do it because we believe it is the right thing to do,” Dame Irene said. “This is going to mean a significant increase in wages.”

Dame Irene highlighted several other challenges facing retailers; she said that although landlords have managed to reduce rent increases for stores, maintenance costs are expected to increase by 4% next year.

And despite pressure from local authorities on central government for a continued reduction in rates, Dame Irene predicted rates could rise by up to 50%, saying: “That’s a significant figure.”

She added that Hays Travel staff must take responsibility for increasing revenue and profits, rather than expecting operators to save the day. “Our suppliers are facing all these additional costs in their business,” she warned, adding that the company cannot simply “ask for higher commissions,” even if it is well positioned to do so.