FY2013 ASTA Travel Agency - Sales & Revenue Trends
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Transcript of FY2013 ASTA Travel Agency - Sales & Revenue Trends
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NOTICE TO USERS OF THIS INFORMATION: Copyright © 2014 American Society of Travel Agents (ASTA). All rights reserved.
ASTA Travel Agency Benchmarking Series
ASTA Agency Sales & Revenue Trends Comparison of Full Year 2013 with Full Year 2012
March 2014
© ASTA 2014
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Slide Contents
© ASTA 2014
Introduction 3 Largest Percentage of Agencies Reported an Increase in Revenue, Transactions and Number of Clients 4 Largest Segment of Agencies Saw Increases Under 10% 5 Corporate and Retail Leisure Agencies Performed Better than Independent Agents in 2012 and 2013 in Terms of Increasing Revenue 6 Increases in Revenue and Number of Clients On Par for Independents and Retail Leisure Agencies 7 All Eight Agency Segments Performed Well with Most Agencies Saying Sales Were the Same or Increased 8 Agencies Reported the Largest Increase for Tour/Group Sales 9 Increased Sales Varied Greatly Based on Agency Type 10 Independent Agents Reported Sales Remaining the Same for Most Categories 11 Most Retail Leisure Agencies Increased Sales for Tour/Group, Cruise, Insurance and FIT, While the Rest Were Mostly the Same 12 Air Sales Increased the Most in 2013 for Corporate Agencies 13 Reported Profits for 2013 Strong Across All the Agency Types 14 Expectations for 2014 Are Positive 15 Independent Agent’s 2014 Forecast More Positive than Retail Leisure and Corporate Agency 16 Survey Background 17 ASTA Research Program 18
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ASTA surveyed ASTA agency members in January-February 2014 asking them to compare their full year (FY) 2013 performance against their full year (FY) 2012 performance. Agencies specifically compared their revenue, transaction volume, number of clients and sales per travel segment in 2013 to their performance in 2012. Additionally, they were asked to estimate how profitable they were in 2013.
Introduction
© ASTA 2014
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Largest Percentage of Agencies Reported an Increase in Revenue, Transactions and Number of Clients
© ASTA 2014
Revenue Transactions Number of ClientsDecrease 23% 23% 19%Same 22% 23% 26%Increase 55% 53% 55%
23% 23% 19% 22% 23% 26%
55% 53% 55%
0%
10%
20%
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% S
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Agency's FY 2013 Performance versus FY 2012 for Revenue, Transactions and Number of Clients
Decrease Same Increase
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Decreased > 25%
Decreased 10%-25%
Decreased <10% Same Increased
<10% Increased
>10%
Revenue 2% 7% 14% 22% 33% 22%
Transactions 4% 7% 13% 23% 33% 20%
Number of Clients 3% 5% 11% 26% 34% 20%
Largest Segment of Agencies Saw Increases Under 10%
© ASTA 2014
Agency's FY 2013 Performance versus FY 2012 for Revenue, Transactions and Number of Clients
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Corporate and Retail Leisure Agencies Performed Better than Independent Agents in 2012 and 2013 in Terms of Increasing Revenue
© ASTA 2014
ALL Agencies IndependentAgent (incl. ICs)
Retail LeisureAgency (70%+)
CorporateAgency (70%+)
2012 Revenue 52% 45% 54% 52%2013 Revenue 55% 44% 56% 65%
52% 45%
54% 52% 55%
44%
56%
65%
0%
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70%
% S
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Comparison of Increased Revenue By Agency Type Agency's FY 2013 Compared to FY 2012
2012 Revenue 2013 Revenue
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Increases in Revenue and Number of Clients On Par for Independents and Retail Leisure Agencies
© ASTA 2014
The gap between increased revenue and increased clients for Corporate Agencies suggests their customers are traveling more.
Independent Agent (incl.ICs)
Retail Leisure Agency(70%+) Corporate Agency (70%+)
Revenue 44% 56% 65%Number of Clients 46% 59% 57%
44%
56% 65%
46%
59% 57%
0%
10%
20%
30%
40%
50%
60%
70%
% S
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Increased Revenue Compared to Increased Clients By Agency Segment
Revenue Number of Clients
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Decrease Same Increase
Tour/ Group 15% 33% 52%
Insurance 13% 40% 47%
Cruise 22% 33% 44%
FIT 11% 46% 43%
Hotel 13% 58% 29%
Air 25% 47% 27%
Car Rental 21% 62% 17%
Rail 24% 63% 13%
All Eight Agency Segments Performed Well with Most Agencies Saying Sales Were the Same or Increased
© ASTA 2014
Agency's FY 2013 Sales Performance versus FY 2012 Sales Performance By Travel Segment
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Agencies Reported the Largest Increase for Tour/Group Sales
© ASTA 2014
52%
47%
44%
43%
29%
27%
17%
13%
0% 10% 20% 30% 40% 50% 60%
Tour/ Group
Insurance
Cruise
FIT
Hotel
Air
Car Rental
Rail
% of Agencies with Increased FY 2013 Sales Compared to FY 2012 - Sales by Travel Segment
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Increased Sales Varied Greatly Based on Agency Type
© ASTA 2014
Air Cruise Tour/ Group HotelALL Agencies 27% 44% 52% 29%Independent Agent (incl. ICs) 15% 34% 46% 34%Retail Leisure Agency (70%+) 23% 50% 58% 22%Corporate Agency (70%+) 65% 36% 27% 48%
27%
44%
52%
29%
15%
34%
46%
34%
23%
50%
58%
22%
65%
36%
27%
48%
0%
10%
20%
30%
40%
50%
60%
70%
% S
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Comparison of Increased Sales by Agency-Type
FY 2013 compared to FY 2012
ALL Agencies Independent Agent (incl. ICs) Retail Leisure Agency (70%+) Corporate Agency (70%+)
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Independent Agents Reported Sales Remaining the Same for Most Categories
© ASTA 2014
Note: Independent Agents includes Owner-Agents, Independent Contractors (ICs), and Hosted Agents. They do not have employees or ICs. All agencies with employees or ICs are included in Retail Leisure.
Tour/Group Insurance FIT Cruise Hotel Rail Air Car Rental
Decrease 19% 13% 12% 21% 12% 19% 24% 20%Same 36% 44% 46% 45% 54% 65% 61% 67%Increase 46% 43% 42% 34% 34% 16% 15% 13%
19% 13% 12%
21% 12%
19% 24%
20%
36% 44% 46% 45%
54%
65% 61%
67%
46% 43% 42% 34% 34%
16% 15% 13%
0%
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Independent Agents Sales by Segment FY 2013 compared to FY 2012
Decrease Same Increase
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Most Retail Leisure Agencies Increased Sales for Tour/Group, Cruise, Insurance and FIT, While the Rest Were Mostly the Same
© ASTA 2014
Tour/Group Cruise Insurance FIT Air Hotel Rail Car Rental
Decrease 13% 21% 14% 11% 27% 16% 25% 24%Same 29% 29% 37% 42% 50% 62% 65% 67%Increase 58% 50% 48% 47% 23% 22% 10% 9%
13%
21% 14%
11%
27%
16%
25% 24% 29% 29%
37% 42%
50%
62% 65% 67%
58%
50% 48% 47%
23% 22%
10% 9%
0%
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30%
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70%
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% S
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Retail Leisure Agency Sales by Segment FY 2013 compared to FY 2012
Decrease Same Increase
13
Air Sales Increased the Most in 2013 for Corporate Agencies
© ASTA 2014
Air Insurance Hotel Car Rental RailDecrease 17% 9% 13% 13% 27%Same 17% 36% 39% 43% 55%Increase 65% 55% 48% 43% 18%
17%
9% 13% 13%
27%
17%
36% 39%
43%
55%
65%
55%
48% 43%
18%
0%
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Corporate Agencies Sales by Segment FY 2013 compared to FY 2012
Decrease Same Increase
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Reported Profits for 2013 Strong Across All the Agency Types
© ASTA 2014
ALL Agencies IndependentAgent (incl. ICs)
Retail LeisureAgency (70%+)
CorporateAgency (70%+)
Realized profit 64% 57% 62% 72%Broke even 14% 17% 16% 12%Operated at a loss 14% 22% 11% 4%Don't know yet / Unsure 8% 5% 11% 12%
64% 57%
62%
72%
14% 17% 16% 12% 14%
22%
11% 4%
8% 5% 11% 12%
0%
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Agency Performance in 2013 Compared to 2012
Realized profit Broke even Operated at a loss Don't know yet / Unsure
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Year Average Profit % Median % Mode %
2007 8% 10% 10% 2008 8% 10% 10% 2009 7% 5% 0% 2010 6% 5% 5% 2011 7% 5% 5% 2012r 8% 5% 5% 2013r 9% 10% 5% 2014f 12% 10% 10% Note: r=revised, f = forecast
Expectations for 2014 Are Positive
© ASTA 2014
Revised 2013 and Forecasted 2014 Profits Compared to 2012-2007 (profits measured as a percentage of total revenue)
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Year ALL Agencies Independent Agent (incl. ICs)
Retail Leisure Agency
Corporate Agency (70%+)
2011 7% 8% 7% 8%
2012r 8% 8% 8% 8%
2013r 9% 10% 9% 8%
2014f 12% 13% 11% 10%
Note: r=revised, f = forecast
Source: ASTA's 2014 Agency Profile using the ASTA Research Family, a panel of ASTA agencies
Independent Agent’s 2014 Forecast More Positive than Retail Leisure and Corporate Agency
© ASTA 2014
Revised 2013 and Forecasted 2014 Profits Compared to 2012-2011 by Agency Type (profits measured as a percentage of total revenue)
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Survey data was collected through the 2014 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 four to five weeks from January 2014 through October 2014. 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 2014. Of the 449 family members, 449 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 [email protected] if you have any questions. This report is available for download free on ASTA’s Research Page.
Survey Background
© ASTA 2014
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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:
2014 Value of Travel Agents - The primary objective of this study was to measure the value of the travel agency channel and to show whether working with travel agents enhances the travel experience. And the results confirmed just that, and more. 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.
ASTA Research Program
© ASTA 2014
More information on ASTA Reports can be found on the Research Papers page. Reports can also be purchased in the ASTA Store.