Agency business on an upward swing
Merry Christmas, travel agents. Things overall in 2003 may have been better than you thought, according to a new survey by the American Society of Travel Agents, which found: —Agencies are continuing to expand and hire new, full-time staff. —The number of medium and large-sized agencies is increasing. —The average ASTA agency now has between five and six (5.7) full-time employees, up from 4.6 in 2002. —The number of agencies reporting sales of $5 million or more increased this year, up from 12.5% to 15.1%. The report also found that travel agents are increasingly internet-savvy, with 98.3% of respondents reporting they have internet access at their agency. Since 1995, internet usage among agents has increased by 310%. “Even though 2003 did not shape up to be the year the travel industry was hoping for, it was far from the state of the industry two short years ago,” said Richard M. Copland, ASTA president and CEO. He cited as evidence of the growth of travel agencies the hiring of part-time and outside staff. ASTA’s Travel Agency Profile study found that 86.9% of agencies work with at least one independent contractor, compared to 75% in 202. The number of agencies reporting sales of more than $5 million has grown, but agencies reporting sales of less than $2 million still comprise roughly half of ASTA’s membership. Leisure sales now make up 73.7% of an agency’s total sales mix, up from 64.5% in 2000. Tours continue to be the no. 1 product booked by ASTA agencies with airline tickets and hotel reservations rounding out the top three. Not expectedly, airline sales are expected to decrease next year, making up only 27.2% of sales, down from 2002’s figure of 32.1%. But projected figures for next year show an increase in the sale of cruises and tour packages compared to previous years. Hotel, car rental and other sales are projected to remain the same. ##
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