The percentage of sales related to international travel continues to increase, with American Society of Travel Agents (ASTA) agencies reporting 60 percent of sales derived from international travel according to the newly released 2013 ASTA Agency Profile. This represents a 49 percent increase in international sales compared to 2004, when international travel represented 40 percent of sales for ASTA agencies, ASTA reports.
“As travel distribution has changed, many travel agencies have found that consumers and business clients tend to use online resources for simpler domestic travel.” said ASTA CEO Zane Kerby. “The complexity of international travel means the expertise of a travel agent is essential for a successful overseas business trip and for the experiential leisure trips that many consumers desire.”
ASTA reports the trend towards international travel sales is complemented by the growth of tour sales, which are more likely to be international. The profile found that Tour/Group sales as a percentage share represents 31 percent of total sales, on average. The percentage for leisure agencies only (+70% leisure sales) is even larger at 35 percent, ASTA said.
Other data of note included in the ASTA Agency Profile:
• The average ASTA agency was established in 1987. The oldest agency in the survey was established in 1900 and the newest was established in 2012.
• 69 percent of ASTA agencies have employees and/or ICs. The remaining 31 percent are one-person agencies or independent agents.
• Agencies with employees, on average, have 22 percent of their full-time employees telecommuting and 26 percent of part-time employees telecommuting.
• Between 2002 and 2013, the percentage share of air sales dropped 30 percent for all agencies. When looking only at corporate agencies (+70 % corporate sales) air remains a large share of sales at 60 percent.
• Half of business communications with clients is conducted by phone. A fifth of business communications is done face-to-face. The trend clearly shows the percentage of phone communications has declined in favor of internet communications. Walk-ins/face-to-face appointments have barely changed.
• The largest percentage of agencies (36%) is in a retail location with multiple employees and additional (7%) have a one-person retail location. Many brick and mortar agencies have employees telecommuting, especially those who have consolidated retail locations.
• ASTA agencies report that leisure products make up an average of 81 percent of total sales and corporate sales make up the remaining 19 percent of sales.
The new survey was conducted with a research panel of ASTA agencies, the ASTA Research Family. The panel is comprised of a representative sample of ASTA member travel agency owners and managers. The report indicates a 95-percent confidence with an error rate +/- 4 percent.
For further information about the study, contact Melissa Teates, ASTA’s director of research, [email protected]. The ASTA Agency Profile report can be downloaded at no charge from the research page of www.ASTA.org.