Comparison of travel agency revenue and sales between 1st half 2014 and 1st half 2013.

1. 1
NOTICE TO USERS OF THIS INFORMATION: Copyright © 2014 American Society of Travel Agents (ASTA). All
rights reserved. Please reference end of this document for terms of use.
ASTA Travel Agency Benchmarking Series
ASTA Agency Sales & Revenue Trends Comparison of Half Year 2014 with Half Year 2013
July 2014

2. 2
ASTA surveyed ASTA agency members asking them to compare their 1st Half 2014 performance against their 1st Half 2013 performance. Agencies specifically compared their revenue, transaction volume, number of clients and sales per travel segment in the 1st Half of 2014 to their performance in 2013. Additionally, they were asked to forecast how profitable they will be in 2014 and 2015.
Survey data was collected through the 2014 ASTA Research Family. The ASTA Research Family is comprised of a representative sample of ASTA member travel agency owners and managers. The Research Family reflects ASTA members in key agency demographics including sales volume, leisure/business mix, number of part-time and full-time employees and geographic location. Members were recruited randomly and were contracted to complete a survey every five to six weeks from January 2014 through October 2014. The Family’s size varies from survey to survey due to non-response, agency closings, mergers, and changes in membership status, but is designed to yield a response representative of all ASTA agency members.
The survey data was collected online via surveygizmo.com in July 2014. Of the 447 family members, 232 completed the survey. This reply level indicates a minimum of 95% confidence with an error rate +/-5.5% representing the total ASTA agency membership. This is considered to be a good sample with reliable results.
Please note: All tables and data in this report are sourced directly from
ASTA’s Financial Benchmarking survey unless otherwise indicated.
Contact Melissa Teates, Director of Research at ASTA, at mteates@asta.org if you have any questions.
This report is available for download free on ASTA’s Research Page.
Introduction © ASTA 2014

3. 3
Largest Group of Travel Agencies Report an Increase in Revenue, Transactions and Number of Clients © ASTA 2014
Revenue
Transactions
Number of Clients
Total Decrease
26%
26%
17%
Same
27%
30%
40%
Total Increase
47%
45%
43%
26%
26%
17%
27%
30%
40%
47%
45%
43%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
% Share of Responses
Agency's 1st Half 2014 Compared to 1st Half 2013
for Revenue, Transactions and Number of Clients
Total Decrease
Same
Total Increase

4. 4
Decreased > 25%
Decreased 10%-25%
Decreased <10%
Same
Increased <10%
Increased >10%
Revenue
3%
10%
13%
27%
28%
19%
Transactions
6%
7%
13%
30%
27%
17%
Number of Clients
3%
5%
9%
40%
27%
16%
Almost Half of Agencies Report a Revenue Increase of 10% or Greater © ASTA 2014
Agency's 1st Half 2014 Compared to 1st Half 2013 for Revenue, Transactions and Number of Clients

5. 5
Corporate and Independent Agents Show Stronger Revenue Growth than Retail Leisure Agencies in First Half 2014 © ASTA 2014
ALL Agencies
Independent Agent
(incl. ICs)
Retail Leisure
Agency (70%+)
Corporate Agency
(70%+)
Revenue
47%
53%
44%
52%
47%
53%
44%
52%
0%
10%
20%
30%
40%
50%
60%
% Share of Responses
Comparison of Increased Revenue By Agency Type
Agency's 1st Half 2014 Performance to 1st Half 2013

6. 6
Corporate Agencies Were Hardest Hit in 2009 but Have Had Fairly Steady Growth Since © ASTA 2014
1st half 2009/1st
Half 2008
1st half 2010/1st
Half 2009
1st half 2011/1st
Half 2010
1st half 2012/1st
Half 2011
1st half 2013/1st
Half 2012
1st half 2014/1st
Half 2013
ALL Agencies
12%
47%
53%
50%
46%
47%
Independent Agent (incl. ICs)
19%
42%
44%
49%
33%
53%
Retail Leisure Agency (70%+)
12%
50%
54%
47%
52%
44%
Corporate Agency (70%+)
4%
54%
52%
55%
56%
52%
47%
53%
50%
46%
47%
19%
42%
44%
49%
33%
53%
12%
50%
54%
47%
52%
44%
0%
10%
20%
30%
40%
50%
60%
% Share of Responses
Trend for Increased Revenue between 2009 and 2014 by Agency Type
ALL Agencies
Independent Agent (incl. ICs)
Retail Leisure Agency (70%+)
Corporate Agency (70%+)

7. 7
Decreased > 25%
Decreased 10%-25%
Decreased <10%
Same
Increased <10%
Increased >10%
Air
18%
9%
4%
44%
14%
12%
Cruise
15%
9%
4%
27%
27%
19%
Tour/ Group
12%
6%
3%
33%
27%
19%
Hotel
13%
5%
4%
49%
18%
11%
Car Rental
15%
8%
5%
53%
11%
7%
Rail
10%
7%
6%
60%
10%
6%
Insurance
7%
4%
6%
40%
27%
16%
FIT
10%
5%
3%
39%
29%
14%
All Major Industry Sectors Performed Well with Most Reporting Increased or the Same Sales © ASTA 2014
Agency's 1st Half 2014 Sales Performance Compared to 1st Half 2013 By Travel Segment

8. 8
Tour/Group Sales Followed by Cruise Had the Largest Percentage of Agencies Reporting Increased Sales © ASTA 2014
46%
45%
43%
43%
29%
26%
18%
16%
0%
10%
20%
30%
40%
50%
Tour/ Group
Cruise
Insurance
FIT
Hotel
Air
Car Rental
Rail
% of Agencies with Increased 1st Half 2014 Sales
Compared to 1st Half 2013 by Travel Segment

9. 9
ALL Agencies
Independent Agent (incl. ICs)
Retail Leisure Agency (70%+)
Corporate Agency (70%+)
Air
26%
20%
29%
35%
Cruise
45%
45%
45%
33%
Tour/ Group
46%
45%
48%
48%
Hotel
29%
28%
26%
30%
Car Rental
18%
14%
14%
27%
Rail
16%
16%
19%
10%
Insurance
43%
41%
48%
40%
FIT
43%
51%
40%
38%
Sector Sales Performance Varies by Agency Type © ASTA 2014
Comparison of Total Increased Sales by Agency-Type 1st Half 2014 Compared to 1st Half 2013

10. 10
Independent Agents Significantly Increased Sales of FIT, Cruise and Tour/Group Products in 1st Half 2014 © ASTA 2014
Note: Independent Agents includes Owner-Agents, Independent Contractors (ICs), and Hosted Agents. They do not have employees or ICs. All Agents with employees or ICs are included in Retail Leisure.
FIT
Cruise
Tour/
Group
Insurance
Hotel
Air
Rail
Car Rental
Decrease
18%
27%
20%
14%
16%
28%
27%
28%
Same
31%
27%
35%
45%
56%
52%
57%
58%
Increase
51%
45%
45%
41%
28%
20%
16%
14%
18%
27%
20%
14%
16%
28%
27%
28%
31%
27%
35%
45%
56%
52%
57%
58%
51%
45%
45%
41%
28%
20%
16%
14%
0%
10%
20%
30%
40%
50%
60%
70%
% Share of Responses
Independent Agents Sales by Segment
1st Half 2014 Compared to 1st Half 2013
Decrease
Same
Increase

11. 11
Half of Retail Leisure Agencies Increased Sales for Tour/Group and Insurance in the 1st Half 2014 © ASTA 2014
Tour/
Group
Insurance
Cruise
FIT
Air
Hotel
Rail
Car Rental
Total Decrease
20%
20%
30%
16%
31%
23%
21%
29%
Same
32%
32%
25%
44%
40%
51%
60%
56%
Total Increase
48%
48%
45%
40%
29%
26%
19%
14%
20%
20%
30%
16%
31%
23%
21%
29%
32%
32%
25%
44%
40%
51%
60%
56%
48%
48%
45%
40%
29%
26%
19%
14%
0%
10%
20%
30%
40%
50%
60%
70%
% Share of Responses
Retail Leisure Agency Sales by Segment
1st Half 2014 Compared to 1st Half 2013
Total Decrease
Same
Total Increase

12. 12
A Third of Corporate Agencies Increased Air Sales © ASTA 2014
Air
Hotel
Car Rental
Rail
Total Decrease
30%
39%
41%
29%
Same
35%
30%
32%
62%
Total Increase
35%
30%
27%
10%
30%
39%
41%
29%
35%
30%
32%
62%
35%
30%
27%
10%
0%
10%
20%
30%
40%
50%
60%
70%
% Share of Responses
Corporate Agencies Sales by Segment
1st Half 2014 Compared to 1st Half 2013
Total Decrease
Same
Total Increase

13. 13
1st half 2009/1st Half 2008
1st half 2010/1st Half 2009
1st half 2011/1st Half 2010
1st half 2012/1st Half 2011
1st half 2013/1st Half 2012
1st half 2014/1st Half 2013
Revenue
12%
47%
53%
50%
46%
47%
Transactions
12%
45%
48%
47%
47%
45%
Number of Clients
11%
38%
43%
43%
46%
43%
Trend Shows Slowdown in 2009, Recovery in 2011-2012 and More Typical Growth in 2013-2014 © ASTA 2014
1st half 2009/1st Half 2008
1st half 2010/1st Half 2009
1st half 2011/1st Half 2010
1st half 2012/1st Half 2011
1st half 2013/1st Half 2012
1st half 2014/1st Half 2013
Revenue
73%
36%
27%
28%
32%
26%
Transactions
73%
36%
28%
29%
34%
26%
Number of Clients
64%
29%
26%
24%
28%
17%
Comparison of Reported Total Increases for Half Year Between 2009 and 2014
Comparison of Reported Same for Half Year Between 2009 and 2014
The amount of decreases or increases in business are obviously affected by the relative strength or weakness of the previous year. As the market normalizes post- slowdown, the amount of “Same” will increase.
1st half 2009/1st Half 2008
1st half 2010/1st Half 2009
1st half 2011/1st Half 2010
1st half 2012/1st Half 2011
1st half 2013/1st Half 2012
1st half 2014/1st Half 2013
Revenue
15%
16%
20%
22%
22%
27%
Transactions
15%
19%
24%
24%
19%
30%
Number of Clients
25%
32%
32%
32%
27%
40%
Comparison of Reported Total Decreases for Half Year Between 2009 and 2014

14. 14
Year
Average %
Median %
Mode %
2007
8%
10%
10%
2008
8%
10%
10%
2009
7%
5%
0%
2010
6%
5%
5%
2011
7%
5%
5%
2012
8%
5%
5%
2013r
7%
5%
5%
2014p
9%
10%
5%
2015f
10%
10%
5%
Note: r=revised, p = projected, f = forecast
Agencies’ Revised 2013 Profits Were Down from 2012 – However Stronger Profits Are Projected for 2014 and 2015 © ASTA 2014
Projected 2014 and Forecasted 2015 Profits Compared to 2007-2013
(profits measured as a percentage of total revenue)
ALL Agencies
Independent Agent (incl. ICs)
Retail Leisure Agency (70%+)
Corporate Agency (70%+)
2012
8%
7%
8%
7%
2013r
7%
8%
8%
6%
2014p
9%
8%
10%
7%
2015f
10%
10%
10%
8%
Note: r=revised, p = projected, f = forecast
Projected 2014 and Forecasted 2015 Profits Compared to 2012-2013 by Agency Type
(profits measured as a percentage of total revenue)

15. 15
Annual Research Briefs
–
ASTA Agency Profile - Demographics of ASTA members including sales and type of agents.
–
ASTA Hot Spots Report – Annual survey of hot spots for summer vacations
–
ASTA Travel Agency Revenue & Trends Report (twice a year) – Comparison of sales, revenue, number of clients and transactions with the previous year or half-year.
–
ASTA Industry Overview – The travel agency industry by the numbers (sales, employees, impact)
Travel Agency Benchmarking Series
–
Financial Benchmarking Report - Benchmarking data on sales, revenue sources, revenue by type of travel, and operational expenses are the focus of this report.
–
GDS Report - Trends on GDS usage, contract lengths, contract negotiations, and incentives/penalties are covered. Also, includes information on non-GDS users.
–
Labor and Compensation Report – Includes detailed data on compensation by region and agency size and type. Benefits offered, turnover rates, and hiring practices are also included.
–
Marketing & Customer Retention Report – Travel agency marketing practices and client relationships are analyzed in this report. Topics include lead generation and client turn-over.
–
Niche Marketing Report – Details on important agency niches including market share and sales impact.
–
Service Fee Report - Includes survey data on average service fees by travel type, service fee policies, service fee collections and service fee revenue. Consulting fees are also covered.
–
Supplier-Travel Agent Relationship Marketing Report - Preferred supplier relationships, booking channels used, and effectiveness of incentive programs are analyzed.
–
Technology and Web Usage Report - The business practices of agencies related to internet usage, technology usage, agency Web site, and online booking are covered.
Other Research Available
–
2014 Value of Travel Agents - Covers travel agent usage and satisfaction with travel organized by an agent for both U.S. leisure and business travelers. It also includes demographics on U.S. travelers including how they book, their travel interests, etc.
–
Independent Agent Report - Basic operational data for independent agents including host agency usage, commission splits, sales, and revenue are covered in this report.
–
2009 Packaged Travel Landscape 2006-2010 - This study sizes the total market, analyzes the structure of the tour operator industry, and maps key product and distribution trends.
ASTA Research Program © ASTA 2014
More information on ASTA Reports can be found on the Research Papers page. Reports can also be purchased in the ASTA Store.