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ASTA Agencies Report Strong Revenue Growth for Second Year in a RowApril 8, 2014 By: Newswire
The American Society of Travel Agents (ASTA) today announced the results of a recent ASTA member survey, which found over half of ASTA member agencies had stronger revenue, greater transaction volume and more clients in 2013 than the previous year.
ASTA said this appears to be a trend, as it follows a solid showing in 2012 where close to half of agencies reported stronger revenue from the previous year. “A second year of strong growth shows that agencies are connecting with consumers who want to work with a travel professional,” said Zane Kerby, president and CEO, ASTA.
“ASTA agencies are confident that they can continue to expand their business in 2014," said Kerby. Overall, in 2013, 55 percent of travel agencies reported an increase in revenue, 53 percent reported an increase in transactions and 55 percent reported an increase in clients.
Interestingly corporate agencies expressed the strongest performance in 2013, with 65 percent reporting increased revenue and 57 percent reporting increased clients. The 8 percent gap between increased revenue and increased clients suggests that individual corporate customers are traveling more.
Agency profits are also up, said ASTA, which noted that 64 percent of all its travel agencies reported a profit in 2013. Looking only at corporate agencies, 72 percent reported a profit.
Average profit? ASTA said it was 9 percentage when measured as a percentage of total revenue. And agencies forecasted strong profits in 2014.
Retail leisure agencies are forcasting an 11 percent profit, independent agents a 13 percent profit and corporate agencies a 10 percent profit.
Survey data was collected through the 2014 ASTA Research Family, a panel comprised of a representative sample of ASTA member travel agency owners and managers. The panel reflects ASTA members in key agency demographics including sales volume, leisure and business mix, number of part-time and full-time employees and geographic location.
Survey data was collected online via www.surveygizmo.com in January and February 2014. ASTA said the reply level indicates a minimum of 95-percent confidence with an error rate +/- 5 percent.
ASTA members may log in to www.asta.org and access the research page to see the complete survey results.