Travel Reference
In-Depth Information
15,335 ARC-accredited retail agency locations. The number of non-ARC sellers, including home-based
agents, has not been quanti ed, but is in the thousands. The average ASTA travel agency was
established in 1985, has been in business for 25 years, and has been an ASTA member for 18 years. 2
Agency Size
The average ASTA agency has 8 full-time employees, 3 part-time employees, and 12 independent
contractors. Although there are large agencies that do billions of dollars in sales, most agencies tend to
be small businesses. The vast majority of agencies operate with one or two employees. Almost half of
agencies do not have part-time employees or independent contractors. 3
Agency Location and Business Model
The largest percentage of ASTA agencies is located in one retail location open to walk-ins and with
multiple employees (41 percent). Home-based agencies with multiple employees total 16 percent,
home-based with one employee 11 percent, multiof ce locations 11 percent, one-of ce location with
multiple employees 10 percent, retail location open to walk-ins with one employee 5 percent, and
independent agent with host agency af liation 3 percent. 4
Business Practices
The phone continues to be the number-one way for agents to conduct business. Agents report they
conduct an average of 52 percent of total business over the phone, customers visiting the of ce
account for an average of 20 percent, and the Internet accounts for 28 percent. The trend is for phone
communications to drop while the Internet use increases. E-mail has also become an indispensable
means of communication. The vast majority of travel agencies now charge service fees on airlines
reservations. A typical charge for an airline ticket would be $37.
Most agencies (79 percent) belong to a consortia and/or franchise such as Vacation.com,
Travelsavers, Carlson Wagonlit, Ensemble, American Express, and Virtuoso.
ASTA respondents reported 70 percent use an ARC identi cation number. IATA and CLIA identi ca-
tion numbers were the next two most cited numbers, with 67 percent and 50 percent, respectively. Only
4 percent have taken advantage of ARC
s new VTC (Veri ed Travel Consultant option).
ASTA agencies report that leisure products account for about 78 percent of total sales. Corporate
sales make up just under one-quarter of total sales. The percent of share of international sales has
increased over the last six years and caught up with domestic sales in 2009 with a 50
'
50 split. In 2010,
international sales are expected to total 55 percent and domestic, 45 percent. A trend is specialization.
Agencies are specializing in leisure products and/or destinations. 5
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Types of Travel Arrangements Made
Table 7.2 shows travel agency sales by travel sector for selected years and indicates the trend away
from air travel arrangements. ASTA projected that 2010 air sales would fall to 24 percent of sales,
while cruise sales would grow to 26 percent and tour packages would be 20 percent. Much smaller
proportions of the total sales are attributable to lodging, car rentals, and miscellaneous arrangements;
these activities account for 22 percent of sales.
Independent and Home-Based Travel Sellers
Another large part of the decrease in ARC agents is people going independent and being home-based.
Independents are the growing segment of the industry. This is a trend not only in travel distribution but
also in other fields where it is possible to work from home by going into business for oneself. In the
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