Head coach Townsend will have his players back in pre-season training in just three week's time at Scotstoun, and he is anticipating a tough 2013/14 season when it starts in August.
But the former Scotland international is confident he can lead his side into top-four contention once again.
"It will be really tough," he told the Herald Scotland.
"I think there will be more teams losing games next season, and it will be a lot tighter right through the table.
"This season, the top five teams have got a bit away from the rest by the end, and I don't see that happening next season.
The bottom six teams will win more games.
"I'm sure Edinburgh will be a lot better. I think Treviso are a rising force. It will be hard, but I believe in the squad I've got.
"We got better and better as the season went on. We played at a very high level in games at the end of the season and we'll just have to work hard to repeat that next time."