ASTA Agency Sales & Revenue Trends Comparison of Full Year 2012 with Full Year 2011

March 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 January 2013 asking them to compare their full year (FY) 2012 performance against their full year (FY) 2011 performance. Agencies specifically compared their revenue, transaction volume, number of clients and sales per travel segment in 2012 to their performance in 2011. Additionally, they were asked to estimate how profitable they were in 2012.

© ASTA 2013 2

Majority of Agencies Increased Revenue, Transactions and Number of Clients in 2012 When Compared with 2011

Decreased > 25%

Decreased 10%-25%

Decreased <10% Same Increased

<10% Increased

>10%

Revenue 3% 7% 14% 24% 30% 21%

Transactions 5% 6% 20% 23% 27% 20%

Number of Clients 4% 4% 18% 28% 28% 18%

© ASTA 2013 3

Agency's FY 2012 Performance versus FY 2011 for Revenue, Transactions and Number of Clients

Large Percentage of Agencies Reported an Increase in Revenue, Transactions and Number of Clients

© ASTA 2013 4

Revenue Transactions Number of ClientsDecrease 24% 30% 26%Same 24% 23% 28%Increase 52% 47% 47%

24% 30%

26% 24% 23% 28%

52% 47% 47%

0%

10%

20%

30%

40%

50%

60%

% S

hare

of R

espo

nses

Agency's FY 2012 Performance versus FY 2011 for Revenue, Transactions and Number of Clients

Decrease Same Increase

Corporate and Retail Leisure Agencies Performed Better than Independent Agents When Comparing FY 2012 Increased Revenue to FY 2011

© ASTA 2013 5

ALL Agencies Independent Agent(incl. ICs)

Retail LeisureAgency (70%+)

Corporate Agency(70%+)

Revenue 52% 45% 54% 52%

52% 45%

54% 52%

0%

10%

20%

30%

40%

50%

60%

% S

hare

of R

espo

nses

Comparison of Increased Revenue By Agency Type Agency's FY 2012 Performance versus FY 2011

Independent Agents Have a Larger Gap between Increased Revenue and Increased Number of Clients than the Other Two Agency Types

© ASTA 2013

6

Independent Agent (incl.ICs)

Retail Leisure Agency(70%+)

Corporate Agency(70%+)

Revenue 45% 54% 52%Number of Clients 37% 50% 52%

45%

54% 52%

37%

50% 52%

0%

10%

20%

30%

40%

50%

60%

% S

hare

of R

espo

nses

Increased Revenue Compared to Increased Number of Clients By Agency Type

Revenue Number of Clients

The gap between increased revenue and increased clients may indicate some stress within the independent agent business model.

All Eight Segments Performed Well in 2012 with Most Agencies Saying Sales Were the Same or Increased Compared to 2011

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%

© ASTA 2013 7

Agency's FY 2012 Sales Performance versus FY 2011 Sales Performance By Travel Segment

Agencies Reported the Largest Sales Increase for Tour/Group for 2012 when Compared to 2011

© ASTA 2013

8

51%

48%

46%

43%

28%

26%

15%

11%

0% 10% 20% 30% 40% 50% 60%

Tour/Group

Insurance

Cruise

FIT

Air

Hotel

Car rental

Rail

% of Agencies with Increased FY 2012 Sales Compared to FY 2011 Sales by Travel Segment

Reported Increased Sales Varied Based on Agency Type

© ASTA 2013 9

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%

28%

45%

51%

25%

19%

37% 40%

20%

28%

51% 55%

26%

56%

37%

44% 48%

0%

10%

20%

30%

40%

50%

60%

% S

hare

of R

espo

nses

Comparison of Increased Sales by Agency-Type

FY 2012 compared to FY 2011

ALL Agencies Independent Agent (incl. ICs) Retail Leisure Agency (70%+) Corporate Agency (70%+)

Independent Agents Increased Sales of Insurance, Tour/Group and FIT the Most Significantly

© ASTA 2013 10

Insurance Tour/ Group FIT Cruise Hotel Air Car Rental RailDecrease 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%

13% 20% 19%

22% 22% 29% 30%

21%

42% 40% 42% 41%

58% 52%

57%

68%

45% 40% 40% 37%

20% 19% 13% 11%

0%

10%

20%

30%

40%

50%

60%

70%

80%

% S

hare

of R

espo

nses

Independent Agents Sales by Segment FY 2012 compared to FY 2011

Decrease Same 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.

Most Increased Sales for the Tour/Group, Cruise, Insurance and FIT Segments While Other Segments Mostly the Same for Retail Leisure Agencies

© ASTA 2013 11

Tour/ Group Cruise Insurance FIT Air Hotel Car Rental RailDecrease 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%

17% 20%

12% 13%

29%

19% 26% 26% 27% 30%

38% 42% 43%

55%

61% 64%

55% 51% 50%

45%

28% 26%

13% 10%

0%

10%

20%

30%

40%

50%

60%

70%

% S

hare

of R

espo

nses

Retail Leisure Agency Sales by Segment FY 2012 compared to FY 2011

Decrease Same Increase

Air Sales Increased the Most in 2012 for Corporate Agencies

© ASTA 2013 12

Air Hotel Car Rental RailDecrease 22% 11% 22% 19%Same 22% 41% 44% 69%Increase 56% 48% 33% 12%

22%

11%

22% 19% 22%

41% 44%

69%

56% 48%

33%

12%

0%10%20%30%40%50%60%70%80%

% S

hare

of R

espo

nses

Corporate Agencies Sales by Segment FY 2012 compared to FY 2011

Decrease Same Increase

More Corporate Agencies Reported Profit in 2012 than Other Agency Types

© ASTA 2013

13

ALL Agencies Independent Agent(incl. ICs)

Retail LeisureAgency (70%+)

Corporate Agency(70%+)

Realized profit 54% 47% 54% 65%Broke even 22% 22% 24% 12%Operated at a loss 14% 18% 13% 8%Don't know yet / Unsure 10% 13% 8% 15%

54% 47%

54%

65%

22% 22% 24%

12% 14% 18%

13% 8% 10%

13% 8%

15%

0%

10%

20%

30%

40%

50%

60%

70%

% S

hare

of R

espo

nses

Agency Performance in 2012 Compared to 2011

Realized profit Broke even Operated at a loss Don't know yet / Unsure

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 full-time 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 January 2013. Of the 447 family members, 447 completed 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.

© ASTA 2013

14

ASTA Research Program

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.

More information on ASTA Reports can be found on the Research Papers page. Reports can also be purchased in the ASTA Store.

© ASTA 2013

15