ASTA’s Advice: Stay Positive But Be Ready for Change
by Andrew Sheivachman /Research from ASTA indicates that travel agents have adapted to major shifts in the travel business – and that the travel agency community has grown back to more than 100,000 strong.
Rumors of the travel agent’s demise in the U.S., in other words, have been greatly exaggerated.
At an informational session at Travel Market 2014 in Boca Raton, Fla., Melissa Teates, ASTA’s head of research, advised agents to be optimistic about the future of selling travel.
Solid numbers
“We have about 100,000 people working in the agency community, with 64,000 full-time employees,” Teates told Travel Market Report. “That is close to the industry high of 120,000 back in 1999.”
Teates compiled research from several surveys and studies conduct by ASTA to present agents with the trends that directly affect their bottom line.
“What we’re trying to convey is that our industry is big and strong, but agents need to be able to change with the environment around us,” Teates said in an interview.
The balance shifts
In fact the shape of the agency industry as a whole has changed considerably in the last decade, and that’s reflected in ASTA’s data about its own membership.
Home-based agents now account for 39% of its travel agency community, while brick and mortar retail locations account for just 38%.
To put things in perspective, home-based agents accounted for just 9% of the industry in 2004.
“For the first time, we have more home-based agents than traditional retail agents,” said Teates. “The industry is shifting, along with ASTA’s membership.”
Yet phone bookings remain the core booking method for both types of agencies, despite the importance of the Internet to travel consumers.
How to grow
An examination of how agents attract new customers shows that customer referrals and networking are the most effective forms of generating leads for both leisure and corporate agents.
However, it’s important for agents to analyze their own business results to discern what works best for them. “Make sure your agency is looking at your own data, to be as productive as you can be,” said Teates.
Running a business
When it comes to operating costs, salaries and benefits make up about half of costs for all types of agencies, while paying independent contracts accounts for 14% of operating expenses for ASTA members.
Independent contractors, unfortunately, produce less revenue for agencies than more costly full-time employees.
Battle of perception
The battle of perception when it comes to how consumers view travel agents is both core to ASTA’s mission and a business challenge for agents.
Consumers who use agents are happier and more satisfied with their vacations, but most consumers don’t even think to reach out to an agent for advice, ASTA research has found.
“We need to get the message out that travel agent users are happier,” said Teates. “And it’s not like this is new – it’s a continuation of existing trends.”
The onus is on travel agents to promote themselves in their local communities and explain the value proposition of the travel agent profession to consumers.
“Tell your clients that they are smarter for using you,” said Teates. “Remind them that the travel agent client is happier.”