Strong Employment, Salary Rise for Agents, Says ASTA Survey

Travel agents are in high demand these days, triggering a rise in salaries and employment at many agencies, according to ASTA’s 2014 Labor & Compensation report.

Some 74% of the ASTA member agencies surveyed had at least one employee or independent contractor (IC), the highest percentage of agencies with employees or ICs since 2010.

“We see this as a very positive sign that the marketplace has normalized since the recession,” said Melissa Teates, ASTA’s director of research. “In 2010, a lot of agencies stopped hiring and were not replacing people who left.”

On average, the agencies surveyed have seven employees, a number that has remained steady over the last few years, and 11 ICs, a number that has gone up slightly.

For corporate agencies, the average number of employees has risen, while their usage of ICs remains low—81% have employees and 19% have an IC.

Salaries on the upswing
The report also said that average salaries have increased over the past 10 years.

Full-time agent salaries have increased 19% for experienced agents and 18% for new hires. Salaries for managers with sales responsibilities increased the most at 20%.

According to Teates, the average travel agent salary is now about $34,000. About 58% of agents work strictly on salary, while 28% are compensated through both salary and commission, and 14% work on commission alone.

“The number of agents who work only on commission really fluctuates with the economy,” Teates said.

“In 2008, 29% of agents worked only on commission, but that fell during the downturn to 9%,” she said. “If the economy keeps on getting stronger, the percentage will go up.”

ICs and home-based on the rise
With more agents moving to the IC model, the usage of ICs is growing faster than employment at most agencies, according to Teates.

She noted that 45% of agencies in the survey reported having both employees and ICs.

The numbers of home-based agents, who may or may not be ICs, is also growing at many agencies, said Teates.

“Agencies are looking at whatever works and there are no rigid rules anymore,” she said. “About half of our members are brick and mortar retail and about a quarter of these have home-based employees.”

Embracing home-based agents
Corporate agencies are also embracing the home-based trend, according to Teates.

“If you have a great employee who wants to move, you will do what is necessary to keep them,” she said. “Some agencies want to have agents around the country, but don’t want to open actual offices.”

Among agencies reaping the benefits of having home-based agents on board is Safe Harbors Travel Group, a primarily corporate agency in Bel Air, Md. Its 26 agents are a mix of ICs and employees.

“Some of our agents work virtually, which gives us the chance to find the best possible talent,” said Jay Ellenby, president of Safe Harbors.

“It also allows us to have agents based in different time zones and climates,” he said. “This gives us a lot of flexibility, especially when there are weather issues.”

Referrals: source for new hires
How are agencies finding new hires?

According to the ASTA survey, 54% of agencies’ referrals were the leading source, followed by newspaper ads (14%) and online sources (10%).

“We also asked agencies who they were hiring,” Teates said. “We discovered it was split between people who were experienced in the industry and those who were completely new to the industry.”

Teates sees the heavy reliance on referrals is directly related to the fact that many new agency hires are coming from outside the industry.

“It indicates that agencies are willing to take a chance on candidates who might not have industry experience, but who come highly recommended for other reasons,” she said.

“They might have a sales or customer service background and just need to learn the technical side.”

Finding new candidates
Among those who find referrals valuable for finding candidates, including those new to the industry, is Jorge Sanchez, executive director of Chicago-based Mena Tours & Travel.

“We have been able to meet most of our hiring needs through referrals, although we also rely on online tools for employment,” Sanchez said.

“It’s highly effective to network with your peers in associations like ASTA. You can put the word out and it’s like an informal clearing house.”

In selecting candidates, travel agency experience is not necessarily the most important consideration, Sanchez said.

“We are looking for sales skills and people who are good at working with customers,” he said. “It doesn’t matter if they come from other fields, as long as they have the skills that can be translated.”