ASTA Agency Sales & Revenue Trends_FullYear 2012
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ASTA Agency Sales & Revenue Trends_FullYear 2012

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ASTA Agency Sales & Revenue Trends_FullYear 2012 ASTA Agency Sales & Revenue Trends_FullYear 2012 Presentation Transcript

  • ASTA Agency Sales & Revenue Trends Comparison of Full Year 2012 with Full Year 2011 March 2013NOTICE TO USERS OF THIS INFORMATION: Copyright © 2013 American Society of Travel Agents (ASTA). All rights reserved.
  • IntroductionASTA surveyed ASTA agency members in January 2013 asking them to compare their full year (FY)2012 performance against their full year (FY) 2011 performance. Agencies specifically comparedtheir revenue, transaction volume, number of clients and sales per travel segment in 2012 to theirperformance in 2011. Additionally, they were asked to estimate how profitable they were in 2012. 2 © ASTA 2013
  • Majority of Agencies Increased Revenue, Transactions and Numberof Clients in 2012 When Compared with 2011 Agencys FY 2012 Performance versus FY 2011 for Revenue, Transactions and Number of Clients Decreased Decreased Decreased Increased Increased Same > 25% 10%-25% <10% <10% >10% Revenue 3% 7% 14% 24% 30% 21% Transactions 5% 6% 20% 23% 27% 20% Number of Clients 4% 4% 18% 28% 28% 18% 3 © ASTA 2013
  • Large Percentage of Agencies Reported an Increase in Revenue,Transactions and Number of Clients Agencys FY 2012 Performance versus FY 2011 for Revenue, Transactions and Number of Clients 60% 52% 50% 47% 47% % Share of Responses 40% 30% 28% 30% 24% 24% 26% 23% 20% 10% 0% Revenue Transactions Number of Clients Decrease 24% 30% 26% Same 24% 23% 28% Increase 52% 47% 47% Decrease Same Increase 4 © ASTA 2013
  • Corporate and Retail Leisure Agencies Performed Better thanIndependent Agents When Comparing FY 2012 Increased Revenue to FY2011 Comparison of Increased Revenue By Agency Type Agencys FY 2012 Performance versus FY 2011 60% 54% 52% 52% 50% 45% % Share of Responses 40% 30% 20% 10% 0% Independent Agent Retail Leisure Corporate Agency ALL Agencies (incl. ICs) Agency (70%+) (70%+) Revenue 52% 45% 54% 52% 5 © ASTA 2013
  • Independent Agents Have a Larger Gap between Increased Revenue andIncreased Number of Clients than the Other Two Agency TypesThe gap between increased revenue andincreased clients may indicate some stresswithin the independent agent business model. Increased Revenue Compared to Increased Number of Clients By Agency Type 60% 54% 50% 52% 52% 50% 45% % Share of Responses 40% 37% 30% 20% 10% 0% Independent Agent (incl. Retail Leisure Agency Corporate Agency ICs) (70%+) (70%+) Revenue 45% 54% 52% Number of Clients 37% 50% 52% Revenue Number of Clients 6 © ASTA 2013
  • All Eight Segments Performed Well in 2012 with Most AgenciesSaying Sales Were the Same or Increased Compared to 2011 Agencys FY 2012 Sales Performance versus FY 2011 Sales Performance By Travel Segment Decrease Same Increase Tour/ Group 17% 33% 51% Insurance 13% 39% 48% Cruise 21% 33% 45% FIT 14% 43% 43% Air 29% 43% 28% Hotel 20% 55% 25% Car Rental 26% 59% 15% Rail 25% 64% 11% 7 © ASTA 2013
  • Agencies Reported the Largest Sales Increase for Tour/Group for2012 when Compared to 2011 % of Agencies with Increased FY 2012 Sales Compared to FY 2011 Sales by Travel Segment 0% 10% 20% 30% 40% 50% 60% Tour/Group 51% Insurance 48% Cruise 46% FIT 43% Air 28% Hotel 26% Car rental 15% Rail 11% 8 © ASTA 2013
  • Reported Increased Sales Varied Based on Agency Type Comparison of Increased Sales by Agency-Type FY 2012 compared to FY 2011 60% 56% 55% 51% 51% 50% 48% 45% % Share of Responses 44% 40% 40% 37% 37% 30% 28% 28% 25% 26% 20% 20% 19% 10% 0% Air Cruise Tour/ Group HotelALL 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% ALL Agencies Independent Agent (incl. ICs) Retail Leisure Agency (70%+) Corporate Agency (70%+) 9 © ASTA 2013
  • Independent Agents Increased Sales of Insurance, Tour/Group andFIT the Most Significantly Independent Agents Sales by Segment FY 2012 compared to FY 2011 80% 68% 70% 58% 57% % Share of Responses 60% 52% 50% 45% 42% 40% 40% 42% 40% 41% 40% 37% 29% 30% 30% 20% 22% 22% 20% 21% 19% 19% 20% 13% 13% 11% 10% 0% Insurance Tour/ Group FIT Cruise Hotel Air Car Rental Rail Decrease 13% 20% 19% 22% 22% 29% 30% 21% Same 42% 40% 42% 41% 58% 52% 57% 68% Increase 45% 40% 40% 37% 20% 19% 13% 11% Decrease Same IncreaseNote: Independent Agents includes Owner-Agents, Independent Contractors (ICs), and Hosted Agents. They do not have employeesor ICs. Al Agents with employees or ICs are included in Retail Leisure. 10 © ASTA 2013
  • Most Increased Sales for the Tour/Group, Cruise, Insurance and FITSegments While Other Segments Mostly the Same for Retail LeisureAgencies Retail Leisure Agency Sales by Segment FY 2012 compared to FY 2011 70% 64% 61% 60% 55% 55% 51% 50% % Share of Responses 50% 45% 42% 43% 40% 38% 30% 29% 28% 30% 27% 26% 26% 26% 17% 20% 19% 20% 12% 13% 13% 10% 10% 0% Tour/ Group Cruise Insurance FIT Air Hotel Car Rental Rail Decrease 17% 20% 12% 13% 29% 19% 26% 26% Same 27% 30% 38% 42% 43% 55% 61% 64% Increase 55% 51% 50% 45% 28% 26% 13% 10% Decrease Same Increase 11 © ASTA 2013
  • Air Sales Increased the Most in 2012 for Corporate Agencies Corporate Agencies Sales by Segment FY 2012 compared to FY 2011 80% 69% 70% % Share of Responses 60% 56% 48% 50% 44% 41% 40% 33% 30% 22% 22% 22% 19% 20% 11% 12% 10% 0% Air Hotel Car Rental Rail Decrease 22% 11% 22% 19% Same 22% 41% 44% 69% Increase 56% 48% 33% 12% Decrease Same Increase 12 © ASTA 2013
  • More Corporate Agencies Reported Profit in 2012 than OtherAgency Types Agency Performance in 2012 Compared to 2011 70% 65% 60% 54% 54% % Share of Responses 50% 47% 40% 30% 24% 22% 22% 18% 20% 14% 13% 15% 13% 12% 10% 8% 10% 8% 0% Independent Agent Retail Leisure Corporate Agency ALL Agencies (incl. ICs) Agency (70%+) (70%+)Realized profit 54% 47% 54% 65%Broke even 22% 22% 24% 12%Operated at a loss 14% 18% 13% 8%Dont know yet / Unsure 10% 13% 8% 15% Realized profit Broke even Operated at a loss Dont know yet / Unsure 13 © ASTA 2013
  • Survey BackgroundSurvey data was collected through the 2013 ASTA Research Family. The ASTA Research Family is comprised of arepresentative sample of ASTA member travel agency owners and managers. The Research Family reflects ASTAmembers in key agency demographics including sales volume, leisure/business mix, number of part-time and full-time employees and geographic location. Members were recruited randomly and were contracted to complete asurvey every five to six weeks from January 2013 through October 2013. The Family’s size varies from survey tosurvey due to non-response, agency closings, mergers, and changes in membership status, but is designed to yielda response representative of all ASTA agency members.The survey data was collected online via surveygizmo.com in January 2013. Of the 447 family members, 447completed the survey. This reply level indicates a minimum of 95% confidence with an error rate +/-4%representing the total ASTA agency membership. This is considered to be a strong 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