Travel agencies: Who Are They in the 21st

1
Travel Agencies – Who are they in
the 21st Century?
ASTA Webinar – June 5, 2013

2
Market Perception………
© ASTA 2013

3
……… Until Recently
© ASTA 2013

4
Market Reality
Annual sales Breakout
– Air $82 B (64%)
– Tour $8 B (66%)
– Cruise $10 B
(64%)
– Hotel $30 B
(24%)
– Car Rental $5 B
U.S. Travel Agency Industry Snapshot
• Annual sales: $136 Billion
• Annual revenues: $16 B
• Annual payroll output: $5.2 B
• 7,768 ARC accredited firms
• 13,262 ARC retail locations
– 1996 retail locations 33,715
• Primarily small business
• 67% women owned / operated
ASTA members
account for 80%
of all travel
agency sales
Sources: ARC, Census Bureau, PhoCusWright, ASTA
© ASTA 2013

5
111,130
124,030
111,310
95,360
90,880
83,30082,800 80,900 79,020 79,070
70,970
65,720
67,490 64,680
50,000
75,000
100,000
125,000
150,000
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Source: Bureau of Labor Statistics
Full-Time Travel Agent Employees at any Company
Economic slowdown
effects 2009-2010.
Effect of 9/11, commission
cuts , internet travel sales,
and increased productivity.
Business Models Shift Due to Market Changes
Travel Agent employee
loss plateaued between
2006-2008
Additionally, the market now includes
an estimated 40,000 Independent
Agents that did not exist in 2000.
© ASTA 2013

6
ASTA’s Membership Reflects the Model Shift
7%
9%
12% 14%
18%
29% 30% 30% 31%
37%
35%
63%
61% 60%
58%
55%
44% 45% 46%
43%
40% 42%
23% 25% 24% 26% 25% 25%
23% 22% 21% 21%
18%
6% 5% 4% 2% 2% 2% 2% 2%
4%
1%
5%
0%
10%
20%
30%
40%
50%
60%
70%
2003
% Share
2004
% Share
2005
% Share
2006
% Share
2007
% Share
2008
% Share
2009
% Share
2010
% Share
2011
% Share
2012
% Share
2013
% Share
Agency Type of ASTA Members
Home-based Agency Retail LocationAgency Office Location Agency Other
Source: ASTA Agency Profile
© ASTA 2013

7
$82 b
From One Model to Four Business Models
Ticketing Agency
Travel
Management
Company (TMC)
Online Travel
Agency (OTA)
Retail Travel
Agency
Independent
Travel Agent
© ASTA 2013

8
Demographics & Data about Today’s Agencies
(TMCs, Retail Leisure, Independent Agent
© ASTA 2013

9
Sales Breakouts Illustrate Differences in Focus
32%
35%
14%
11%
4%
4%
Independent Agent (incl. ICs)
Tour/Packages
Cruise
Airline
Hotel
Car rental
Other
37%
27%
20%
9%
3%
5%
Retail Leisure Agency (70%+)
Tour/Packages
Cruise
Airline
Hotel
Car rental
Other
7%
6%
64%
15%
7%
2%
Corporate Agency (70%+)
Tour/Packages
Cruise
Airline
Hotel
Car rental
Other
© ASTA 2013

10
Phone Remains Dominant on Leisure Side
Independent
Agent (incl. ICs)
Retail Leisure
Agency (70%+)
Corporate
Agency (70%+)
Phone 49% 49% 39%
Internet (website or e-mail) 35% 30% 50%
Walk-ins/face-to-face
appointments
15% 22% 11%
49% 49%
39%
35%
30%
50%
15%
22%
11%
0%
10%
20%
30%
40%
50%
60%
Communication Methods Used for Conducting Business with Clients
Phone Internet (website or e-mail) Walk-ins/face-to-face appointments
© ASTA 2013

11
Leisure Pushing the Shift to International Travel Sales
40%
36% 37%
56%
60%
64% 63%
44%
0%
10%
20%
30%
40%
50%
60%
70%
Overall Independent Agent (incl.
ICs)
Retail Leisure Agency
(70%+)
Corporate Agency (70%+)
Domestic Sales International Sales
© ASTA 2013
Percentage of Total Sales

12
98%
97%
90% 91% 90% 90% 90%
86%
83% 83%
79%
76%
75%
72%
70%
80%
90%
100%
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Most of the Non-GDS Users Are Independent Agents
© ASTA 2013
Source: ASTA’s GDS Report & ASTA Supplier-Travel Agent Relationship Marketing Report
Overall
Independent
Agent (incl. ICs)
Retail Leisure
Agency (70%+)
Corporate
Agency (70%+)
Yes 72% 45% 82% 100%
No 28% 55% 18% 0%
Used for
Bookings
GDS
Supplier
Website
Supplier
800 #
OTAs
Other
websites
Air 53% 16% 4% 4% 10%
Hotel 37% 14% 8% 2% 6%
Cruise Line 14% 40% 35% na 4%
Tour 4% 33% 34% na 5%
Car Rental 48% 23% 9% 2% 9%
% of ASTA Members that Use a GDS

13
Corporate Agency Profits Rebounded in 2012
ALL Agencies
Independent
Agent (incl.
ICs)
Retail Leisure
Agency
(70%+)
Corporate
Agency
(70%+)
Realized profit 54% 47% 54% 65%
Broke even 22% 22% 24% 12%
Operated at a loss 14% 18% 13% 8%
Don't know yet / Unsure 10% 13% 8% 15%
54%
47%
54%
65%
22% 22% 24%
12%14%
18%
13%
8%10%
13%
8%
15%
0%
10%
20%
30%
40%
50%
60%
70%
%ShareofResponses
Agency Performance in 2012 Compared to 2011
Realized profit Broke even Operated at a loss Don't know yet / Unsure
Source: ASTA Agency Sales & Revenue Trends ~ Comparison of Full Year 2012 with Full Year 2011
© ASTA 2013

14
Corporate and Retail Leisure Agencies Performed Better
than Independent Agents in 2012
© ASTA 2013
ALL Agencies
Independent Agent
(incl. ICs)
Retail Leisure
Agency (70%+)
Corporate Agency
(70%+)
Increased Revenue in 2012 52% 45% 54% 52%
52%
45%
54%
52%
0%
10%
20%
30%
40%
50%
60%
%ShareofResponses
Comparison of Increased Revenue By Agency Type Agency's FY 2012
Performance versus FY 2011

15
Independent Agents Have a Larger Gap between
Increased Revenue and Increased Number of Clients
© ASTA 2013
Independent Agent (incl.
ICs)
(70%+)
Corporate Agency
(70%+)
Revenue 45% 54% 52%
Number of Clients 37% 50% 52%
45%
54% 52%
37%
50% 52%
0%
10%
20%
30%
40%
50%
60%
%ShareofResponses
Increased Revenue Compared to Increased # of Clients by Agency Type
Revenue Number of Clients

16
Increased Sales of Segments Varied Based on Agency Type
© ASTA 201316
Air Cruise Tour/ Group Hotel
ALL Agencies 28% 45% 51% 25%
Independent Agent (incl. ICs) 19% 37% 40% 20%
Retail Leisure Agency (70%+) 28% 51% 55% 26%
Corporate Agency (70%+) 56% 37% 44% 48%
28%
45%
51%
25%
19%
37%
40%
20%
28%
51%
55%
26%
56%
37%
44%
48%
0%
10%
20%
30%
40%
50%
60%
%ShareofResponses
Comparison of Increased Sales by Agency-Type FY 2012 compared to FY 2011
ALL Agencies Independent Agent (incl. ICs) Retail Leisure Agency (70%+) Corporate Agency (70%+)

17
How do you apply ASTA data?
© ASTA 2013

18
Applying Data to Improve Your Business
© ASTA 2013
•Salaries (Labor & Comp Report)
•Profitability
•Booking Trends
•Sources of Clients
Comparison of
Operations
•Understanding the marketplace
•Performance of Vendors (i.e. GDS Report)
Informed
Decision
Making
•Productivity (Financial Benchmarking Report)
•Comparing Revenue Amounts & Sources
•Yield
Financial
Analysis

19
All Respondents
Retail Leisure
Agency (70%+)
Corporate Agency
(70%+)
Travel agent with 5+ years' experience $31,877 $29,620 $45,606
Starting travel agent w/ limited experience $21,573 $20,619 $27,909
Managerial position with sales responsibilities $40,970 $38,449 $63,571
Managerial position without sales responsibilities $38,062 $33,847 $50,769
Part-time travel agent working 10 hours a week $6,913 $6,582 $10,500
Administrative (receptionist, admin assistant) $18,034 $16,042 $29,150
IT (software, hardware) $22,893 $15,006 $30,226
Accounting $20,738 $18,582 $25,570
ARC Processing $15,764 $10,000 $22,290
Database Administrator/Reporting $27,500 $35,000 $40,000
© ASTA 2013
Comparison of Operations: Salaries & Compensation
Packages
All
Respondents
(70%+)
Corporate Agency
(70%+)
Salary only 60% 63% 50%
Salary and Commission Mix 31% 26% 39%
Commission Only 9% 11% 11%
Source: ASTA Labor & Compensation report
2012 Average Annual Salary for Selected Positions by Business Type
Standard Compensation Package for Travel Agents by Business Type

20 © ASTA 2013
Comparison of Operations: Best Methods for Leads for
Leisure
Source: ASTA Marketing & Customer Retention Report
Very successful
Moderately
successful
Not successful NA - do not use
Customer referrals 87% 13% 0% 0%
Networking 33% 50% 5% 12%
Direct Mail 13% 40% 11% 36%
Web site (agency's own site) 11% 49% 18% 22%
Open house/Mixer at agency 9% 19% 8% 64%
Seminars/Presentations at
retirement homes, clubs, etc.
8% 27% 11% 54%
Local events (bridal shows, festivals) 7% 29% 15% 49%
Email marketing 7% 54% 14% 25%
Print advertising - local 5% 37% 17% 41%
Yellow pages - print 5% 28% 17% 50%
Yellow Pages - online 4% 18% 14% 64%
Facebook 2% 28% 25% 44%
Banner ads on other Web Sites 1% 8% 11% 79%
Magazine ad - local 1% 12% 12% 75%
Industry publications/journals 1% 4% 7% 89%
Twitter 0% 4% 24% 72%
Print advertising - national 0% 4% 10% 86%
Magazine ad - national 0% 3% 8% 89%
LinkedIn 0% 8% 33% 60%
Pinterest 0% 3% 16% 81%
Effectiveness of These Methods in Generating New Customer Leads for Leisure Travel

21 © ASTA 2013
Comparison of Operations: Best Methods for Leads for
Corporate
Source: ASTA Marketing & Customer Retention Report
Effectiveness of These Methods in Generating New Customer Leads for Corporate Travel
Very successful
Moderately
successful Not successful NA - do not use
Customer referrals 75% 21% 1% 3%
Networking 33% 44% 5% 18%
Attendance at trade shows 8% 23% 22% 47%
Sales calls (telemarketing, onsite visits,
etc.)
6% 30% 3% 61%
Web site (agency's own site) 5% 47% 14% 33%
Direct Mail 5% 28% 14% 53%
Cold calls to set-up presentations 5% 19% 14% 63%
Email marketing 4% 39% 14% 43%
Yellow Pages - online 4% 12% 14% 70%
Print advertising - local 4% 23% 12% 61%
Yellow pages - print 2% 31% 24% 43%
Facebook 1% 18% 25% 57%
LinkedIn 1% 11% 23% 66%
Banner ads on other Web Sites 1% 6% 12% 81%
Magazine ad - local 1% 9% 10% 80%
Twitter 0% 4% 17% 79%
Print advertising - national 0% 5% 9% 86%
Magazine ad - national 0% 2% 6% 92%
Industry publications/journals 0% 6% 8% 86%

22 © ASTA 2013
Informed Decision Making: Usefulness of Website
Source: ASTA Technology & Web Usage
% of client requests
for assistance
% of total revenue
generated from online
requests for assistance
Independent Agent (incl. ICs) 37% 17%
Retail Leisure Agency 21% 12%
Corporate Agency (70%+) 14% 2%
Requests and Revenue Generated Annually Through Your Website
Note: This is request and revenue by website versus phone, social media, direct email,
appointments and walk-ins (do not include online booking tools)

23
OVERALL Amadeus
Galileo/Apollo
(Travelport)
Sabre
Worldspan
(Travelport)
Very satisfied 38% 44% 20% 45% 33%
Somewhat satisfied 44% 39% 46% 46% 44%
Neither satisfied nor
dissatisfied
11% 11% 19% 7% 12%
Somewhat dissatisfied 5% 3% 13% 2% 7%
Very dissatisfied 2% 3% 2% 0% 5%
© ASTA 2013
Informed Decision Making: GDS Vendor
Source: ASTA GDS Report
Satisfaction with GDS Vendor

24
Average Median
All respondents $548,941 $283,203
Agency sales of $2 million or less $201,599 $261,412
Agency sales between $2 million and $5 million $408,710 $549,060
Agency sales between $5 million and $10 million $542,309 $685,000
Agency sales greater than $10 million $1,044,740 $819,826
© ASTA 2013
Financial Analysis: Productivity
Source: ASTA Financial Benchmarking Report
Total Sales By Total FTEs By Company Size

25
Average Median
ARC Air - Leisure $49.69 $43.96
ARC Air - Corporate $69.84 $40.74
Non-ARC Air $61.50 $95.42
Cruise $292.17 $345.42
Tour/ Package $304.57 $290.00
Hotel $27.17 $50.73
Car Rental $11.37 $26.24
Rail $28.16 $34.24
Insurance $60.14 $43.40
FIT $287.66 $250.00
© ASTA 2013
Financial Analysis: Revenue
Source: ASTA Financial Benchmarking Report
Revenue Per Transaction

35
Pushing Consumer Traffic to your TravelSense Profile –
TOOL 4
TravelSense.org per month
Visits 66,082
Unique Visitors 31,313

36 © ASTA 2013
A copy of the slides are available on SlideShare at
http://www.slideshare.net/mteates
For Follow-up Questions:
Melissa Teates
703-739-6983
mteates@asta.org
You can also contact me on LinkedIn.

Travel agencies: Who Are They in the 21st

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