2013 Half-Year - ASTA Travel Agency Sales & Revenue Trends
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2013 Half-Year - ASTA Travel Agency Sales & Revenue Trends

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ASTA surveyed ASTA agency members in June-July 2013 asking them to compare their 1st Half 2013 performance against their 1st Half 2012 performance. Agencies specifically compared their revenue, ...

ASTA surveyed ASTA agency members in June-July 2013 asking them to compare their 1st Half 2013 performance against their 1st Half 2012 performance. Agencies specifically compared their revenue, transaction volume, number of clients and sales per travel segment in the 1st Half of 2013 to their performance in 2012. Additionally, they were asked to forecast how profitable they will be in 2013 and 2014.

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2013 Half-Year - ASTA Travel Agency Sales & Revenue Trends 2013 Half-Year - ASTA Travel Agency Sales & Revenue Trends Presentation Transcript

  • ASTA Agency Sales & Revenue Trends Comparison of Half Year 2013 with Half Year 2012 August 2013 NOTICE TO USERS OF THIS INFORMATION: Copyright © 2013 American Society of Travel Agents (ASTA). All rights reserved.
  • Introduction ASTA surveyed ASTA agency members in June-July 2013 asking them to compare their 1st Half 2013 performance against their 1st Half 2012 performance. Agencies specifically compared their revenue, transaction volume, number of clients and sales per travel segment in the 1st Half of 2013 to their performance in 2012. Additionally, they were asked to forecast how profitable they will be in 2013 and 2014. 2 © ASTA 2013
  • Many Travel Agencies Report Increase in Revenue, Transactions and Number of Clients % Share of Responses Agency's 1st Half 2013 Compared to 1st Half 2012 for Revenue, Transactions and Number of Clients 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Total Decrease Same Total Increase 47% 46% 46% 34% 32% 28% 22% 27% 19% Revenue 32% 22% 46% Transactions 34% 19% 47% Total Decrease Same 3 Number of Clients 28% 27% 46% Total Increase © ASTA 2013 View slide
  • Nearly One Fourth Report a Revenue Increase of 10% or Greater Agency's 1st Half 2013 Compared to 1st Half 2012 for Revenue, Transactions and Number of Clients Decreased > Decreased 25% 10%-25% Decreased <10% Same Increased Increased <10% >10% Revenue 6% 9% 16% 22% 23% 23% Transactions 5% 9% 20% 19% 28% 19% Number of Clients 4% 9% 15% 27% 32% 14% Source: ASTA's 2013 Financial Benchmarking survey using the ASTA Research Family, a panel of ASTA agencies 4 © ASTA 2013 View slide
  • Corporate and Leisure Agencies Show Stronger Revenue Growth than Independent Agents Comparison of Total Increased Revenue By Agency Type Agency's 1st Half 2013 Performance to 1st Half 2012 % Share of Responses 60% 50% 52% 56% 46% 40% 33% 30% 20% 10% 0% ALL Agencies Revenue 46% Independent Agent (incl. ICs) 33% 5 Retail Leisure Agency (70%+) 52% Corporate Agency (70%+) 56% © ASTA 2013
  • All Major Industry Sectors Performed Well Agency's 1st Half 2013 Sales Performance Compared to 1st Half 2012 By Travel Segment Decreased > Decreased 25% 10%-25% Decreased <10% Same Increased Increased <10% >10% Air 6% 8% 19% 40% 17% 11% Cruise 6% 11% 11% 29% 22% 21% Tour/ Group 7% 8% 15% 28% 24% 19% Hotel 4% 6% 13% 42% 22% 13% Car Rental 6% 6% 14% 58% 11% 4% Rail 8% 5% 9% 60% 9% 8% Insurance 5% 4% 9% 38% 27% 18% FIT 3% 3% 10% 42% 29% 13% Source: ASTA's 2013 Financial Benchmarking survey using the ASTA Research Family, a panel of ASTA agencies 6 © ASTA 2013
  • Travel Insurance Sale Exhibits Greatest Growth % of Agencies with Total Increased 1st Half 2013 Sales Compared to 1st Half 2012 by Travel Segment 0% 10% 20% 30% 40% 50% 45% Insurance Cruise 43% Tour/ Group 43% FIT 42% Hotel 34% Air Rail Car Rental 28% 17% 16% 7 © ASTA 2013
  • Sector Sales Performance Varies by Agency Type Comparison of Total Increased Sales by Agency-Type 1st Half 2013 Compared to 1st Half 2012 ALL Agencies Air Cruise Tour/ Group Hotel Car Rental Rail Insurance FIT Independent Agent (incl. ICs) Retail Leisure Agency (70%+) Corporate Agency (70%+) 28% 43% 43% 34% 16% 17% 45% 42% 14% 26% 31% 25% 6% 7% 34% 27% 30% 50% 47% 37% 16% 21% 49% 47% 65% na na 33% 28% 19% 18% na Source: ASTA's 2013 Financial Benchmarking survey using the ASTA Research Family, a panel of ASTA agencies 8 © ASTA 2013
  • Independent Agents Significantly Increased Sales of Insurance and Tour/Group Products Independent Agents Sales by Segment 1st Half 2013 Compared to 1st Half 2012 % Share of Responses 70% 62% 60% 50% 30% 48% 43% 40% 34% 50% 35% 34% 31% 23% 38% 36% 24% 27% 26% 42% 33% 36% 20% 14% 10% 0% Insurance Total Decrease Same Total Increase 23% 43% 34% Tour/ Group 34% 35% 31% 37% 31% 25% 7% FIT Cruise Hotel Air Rail 24% 48% 27% 38% 36% 26% 33% 42% 25% 36% 50% 14% 31% 62% 7% Total Decrease Same 56% 6% Car Rental 37% 56% 6% Total Increase Note: Independent Agents includes Owner-Agents, Independent Contractors (ICs), and Hosted Agents. They do not have employees or ICs. Al Agents with employees or ICs are included in Retail Leisure. 9 © ASTA 2013
  • Half of Retail Leisure Agencies Increased Sales for Cruise and Insurance Retail Leisure Agency Sales by Segment 1st Half 2013 Compared to 1st Half 2012 70% % Share of Responses 60% 50% 58% 50% 40% 30% 49% 33% 26% 24% 47% 43% 37% 40% 30% 30% 28% 24% 21% 21% 20% 18% 20% 47% 41% 57% 12% 26% 16% 10% 0% Cruise Total Decrease Same Total Increase Insurance 26% 24% 50% 18% 33% 49% Tour/ Group 28% 24% 47% FIT Air Rail 12% 41% 47% Total Decrease Hotel 20% 43% 37% 30% 40% 30% 21% 58% 21% Same 10 Car Rental 26% 57% 16% Total Increase © ASTA 2013
  • Corporate Agencies Increase Air Sales Corporate Agencies Sales by Segment 1st Half 2013 Compared to 1st Half 2012 70% 65% 63% % Share of Responses 60% 50% 50% 39% 40% 30% 20% 28% 24% 33% 22% 28% 19% 19% 12% 10% 0% Total Decrease Same Total Increase Air 24% 12% 65% Hotel 28% 39% 33% Total Decrease Same 11 Car Rental 22% 50% 28% Rail 19% 63% 19% Total Increase © ASTA 2013
  • Percentage of Those Reporting Increased Sales Slows as Agency Sales Normalize Post-Slowdown Comparison of Reported Total Increased Sales for Half Year Between 2009 and 2013 1st half 2009/1st Half 2008 Revenue Transactions Number of Clients 1st half 2010/1st Half 2009 1st half 2011/1st Half 2010 1st half 2012/1st Half 2011 1st half 2013/1st Half 2012 12% 12% 11% 47% 45% 38% 53% 48% 43% 50% 47% 43% 46% 47% 46% Comparison of Reported Same Sales for Half Year Between 2009 and 2013 1st half 2009/1st Half 2008 Revenue Transactions Number of Clients 1st half 2010/1st Half 2009 1st half 2011/1st Half 2010 1st half 2012/1st Half 2011 1st half 2013/1st Half 2012 15% 15% 25% 16% 19% 32% 20% 24% 32% 22% 24% 32% The amount of decrease or increase in sales is obviously affected by the relative strength or weakness of the previous year. As the market normalizes postslowdown the amount of “Same” increases. 22% 19% 27% Comparison of Reported Total Decreased Sales for Half Year Between 2009 and 2013 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 Revenue 73% 36% 27% 28% 32% Transactions 73% 36% 28% 29% 34% Number of Clients 64% 29% 26% 24% 28% 12 Source: ASTA's Financial Benchmarking surveys using the ASTA Research Family, a panel of ASTA agencies © ASTA 2013
  • Despite Growth, Agencies Project 2013 Profits to be on par with 2012, while Stronger Profits Projected in 2014 Projected 2013 and Forecasted 2014 Profits Compared to 2012-2007 (profits measured as a percentage of total revenue) Year Average % Median % Mode % 2007 2008 2009 2010 2011 2012r 2013p 2014f 8% 8% 7% 6% 7% 8% 8% 9% 10% 10% 5% 5% 5% 5% 5% 10% 10% 10% 0% 5% 5% 5% 5% 5% It seems most agencies do not expect the stronger revenue and sales in 2013 to increase profits. Perhaps they are seeing a rise in costs. For leisure agencies lower cruise pricing may be affecting their commission revenue. Note: r=revised, p = projected, f = forecast Source: ASTA's Financial Benchmarking Surveys using the ASTA Research Family, a panel of ASTA agencies Projected 2013 and Forecasted 2014 Profits Compared to 2012 by Agency Type (profits measured as a percentage of total revenue) ALL Agencies 2012r 2013p 2014f 8% 8% 9% Independent Retail Leisure Corporate Agent (incl. ICs) Agency (70%+) Agency (70%+) 7% 8% 7% 7% 8% 5% 9% 9% 6% Note: r=revised, p = projected, f = forecast Source: ASTA's 2013 Financial Benchmarking Survey using the ASTA Research Family, a panel of ASTA agencies 13 © ASTA 2013
  • Survey Background Survey data was collected through the 2013 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 fulltime employees and geographic location. Members were recruited randomly and were contracted to complete a survey every five to six weeks from January 2013 through October 2013. 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 June and July 2013. 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 Agency Profile 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. 14 © ASTA 2013
  • ASTA Research Program More information on ASTA Reports can be found on the Research Papers page. Reports can also be purchased in the ASTA Store. Travel Agency Benchmarking Series: ASTA Agency Profile - Demographics of ASTA members including sales and type of agents. 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 - Detailed data on compensation by region and agency size and type. Benefits offered, turnover rates, and hiring practices are also included in this report. Marketing & Customer Retention Report - Marketing practices and client relationships are analyzed in this report. Topics included are lead generation and client turn-over. 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: 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. Tactics for better cooperation between tour operators and travel agents are also covered. Independent Agent Report - Basic operational data for independent agents including host agency usage, commission splits, sales, and revenue are covered in this report. 15 © ASTA 2013