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NOTICETOUSERSOFTHISINFORMATION:Copyright©2015AmericanSocietyofTravelAgents(ASTA).Allrightsreserved.Pleasereferenceendofthisdocumentfortermsofuse.
ASTATravelAgencyBenchmarkingSeries
ASTA Agency Sales & Revenue TrendsComparison of Full Year 2014 with Full Year 2013
February2014
©ASTA2015
Slide Contents
2 ©ASTA2015
Introduction 3LargestPercentageofAgenciesReportedanIncreaseinRevenue,TransactionsandNumberofClients 4MostAgenciesSawIncreases“Under10%”orPerformedthe“Same” 5CorporateAgenciesShowMuchVariabilityinPerformance– WhileRetailLeisureRemainsSteady 6RelationofClientsandRevenueIsOppositeforCorporateAgenciesComparedtoIndependentsandRetailLeisureAgencies 7AllEightAgencySegmentsPerformedWellwithMostAgenciesSayingSalesWeretheSameorIncreased 8AgenciesReportedtheLargestIncreaseforInsurance,Tour/GroupSalesandFIT 9IncreasedSalesVariedGreatlyBasedonAgencyType 10MostIndependentAgentsReportedSalesRemainingtheSamewiththeExceptionofInsurance,FITandTour/Group 11MostRetailLeisureAgenciesSawIncreasedSalesforInsurance,Tour/Group,FITandCruise 12AirandHotelSalesIncreasedfortheMajorityofCorporateAgencies 13ReportedProfitsfor2014StrongAcrossAlltheAgencyTypes 14Expectationsfor2015AreVeryPositive 15IndependentAgent’s2015ForecastMorePositivethanRetailLeisureandCorporateAgency 16PercentageofAgenciesReportingSameisIncreasingasThoseReportingaDecreaseShrinksShowingtheIndustryIsStabilizing 17SurveyBackground 18ASTAResearchProgram 19
Introduction
ASTAsurveyedASTAagencymembersinJanuary‐February2015askingthemtocomparetheirfullyear(FY)2014performanceagainsttheirfullyear(FY)2013performance.Agenciesspecificallycomparedtheirrevenue,transactionvolume,numberofclientsandsalespertravelsegmentin2014totheirperformancein2013.Additionally,theywereaskedtoestimatehowprofitabletheywerein2014andestimatetheir2015profits.
©ASTA20153
Largest Percentage of Agencies Reported an Increase in Revenue, Transactions and Number of Clients
©ASTA2015
Revenue Transactions NumberofClientsDecrease 19% 21% 19%Same 26% 29% 31%Increase 54% 50% 50%
19% 21% 19%26% 29% 31%
54%50% 50%
0%
10%
20%
30%
40%
50%
60%
%ShareofResponses
Agency'sFY2014PerformanceversusFY2013forRevenue,TransactionsandNumberofClients
Decrease Same Increase
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Most Agencies Saw Increases “Under 10%” or Performed the “Same”
Decreased>25%
Decreased10%‐25%
Decreased<10% Same Increased
<10%Increased>10%
Revenue 2% 3% 14% 26% 31% 24%
Transactions 4% 4% 14% 29% 25% 25%
NumberofClients 4% 2% 13% 31% 27% 23%
©ASTA2015
Agency'sFY2014PerformanceversusFY2013forRevenue,TransactionsandNumberofClients
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Corporate Agencies Show Much Variability in Performance – While Retail Leisure Remains Steady
©ASTA20156
ALLAgencies IndependentAgent(incl.ICs)
RetailLeisureAgency(70%+)
CorporateAgency(70%+)
2012Revenue 52% 45% 54% 52%2013Revenue 55% 44% 56% 65%2014Revenue 54% 54% 57% 41%
52%45%
54% 52%55%
44%
56%
65%
54% 54%57%
41%
0%
10%
20%
30%
40%
50%
60%
70%
%ShareofResponses
ComparisonofIncreased RevenueByAgencyTypeAgency'sFY2014PerformanceversusFY2013
Relation of Clients and Revenue Is Opposite for Corporate Agencies Compared to Independents and Retail Leisure Agencies
©ASTA20157
IndependentAgent(incl.ICs)
RetailLeisureAgency(65%+) CorporateAgency(65%+)
Revenue 54% 57% 41%NumberofClients 43% 55% 57%
54% 57%
41%43%
55% 57%
0%
10%
20%
30%
40%
50%
60%
70%
%ShareofResponses
Increased RevenueComparedtoIncreased ClientsByAgencySegment
Revenue NumberofClients
Morecorporateagenciesreportedanincreaseofclientscomparedtorevenuesuggestingthatalargerclientbasedidnottranslatetoonparrevenuegrowthin2014.
All Eight Agency Segments Performed Well with Most Agencies Saying Sales Were the Same or Increased
Decrease Same Increase
Insurance 10% 36% 54%Tour/Group 14% 34% 52%FIT 10% 39% 51%Cruise 21% 36% 43%Hotel 14% 53% 34%Air 25% 48% 27%CarRental 25% 59% 16%Rail 28% 64% 8%
©ASTA20158
Agency'sFY2014SalesPerformanceversusFY2013SalesPerformanceByTravelSegment
Agencies Reported the Largest Increase for Insurance, Tour/Group Sales and FIT
©ASTA20159
54%
52%
51%
43%
34%
27%
16%
8%
0% 10% 20% 30% 40% 50% 60%
Insurance
Tour/Group
FIT
Cruise
Hotel
Air
CarRental
Rail
%ofAgencieswithIncreased FY2014SalesComparedtoFY2013‐ SalesbyTravelSegment
Increased Sales Varied Greatly Based on Agency Type
©ASTA201510
Air Cruise Tour/Group HotelALLAgencies 27% 43% 52% 34%IndependentAgent(incl.ICs) 21% 37% 46% 33%RetailLeisureAgency(65%+) 23% 50% 57% 27%CorporateAgency(65%+) 59% 29% 42% 73%
27%
43%
52%
34%
21%
37%
46%
33%
23%
50%
57%
27%
59%
29%
42%
73%
0%
10%
20%
30%
40%
50%
60%
70%
80%
%ShareofResponses
ComparisonofIncreased SalesbyAgency‐TypeFY2014comparedtoFY2013
ALLAgencies IndependentAgent(incl.ICs) RetailLeisureAgency(65%+) CorporateAgency(65%+)
Most Independent Agents Reported Sales Remaining the Same with the Exception of Insurance, FIT and Tour/Group
©ASTA2015
Note:IndependentAgentsincludesOwner‐Agents,IndependentContractors(ICs),andHostedAgents.TheydonothaveemployeesorICs.AllagencieswithemployeesorICsareincludedinRetailLeisure.
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Insurance FIT Tour/Group Cruise Hotel Air CarRental Rail
Decrease 7% 12% 14% 20% 10% 28% 23% 27%Same 41% 41% 40% 43% 57% 51% 65% 65%Increase 52% 48% 46% 37% 33% 21% 12% 8%
7%12% 14%
20%
10%
28%23%
27%
41% 41% 40% 43%
57%51%
65% 65%
52%48% 46%
37%33%
21%
12%8%
0%
10%
20%
30%
40%
50%
60%
70%
%ShareofResponses
IndependentAgentsSalesbySegmentFY2014comparedtoFY2013
Decrease Same Increase
Most Retail Leisure Agencies Saw Increased Sales for Insurance, Tour/Group, FIT and Cruise
©ASTA201512
Insurance Tour/Group FIT Cruise Hotel Air CarRental RailDecrease 9% 13% 7% 19% 14% 25% 24% 26%Same 32% 30% 38% 31% 59% 52% 63% 65%Increase 59% 57% 55% 50% 27% 23% 14% 9%
9%13%
7%
19%14%
25% 24% 26%32% 30%
38%31%
59%52%
63% 65%59% 57% 55%
50%
27%23%
14%9%
0%
10%
20%
30%
40%
50%
60%
70%
%ShareofResponses
RetailLeisureAgencySalesbySegmentFY2014comparedtoFY2013
Decrease Same Increase
Air and Hotel Sales Increased for the Majority of Corporate Agencies
©ASTA201513
Hotel Air CarRental InsuranceDecrease 23% 32% 27% 26%Same 5% 9% 27% 37%Increase 73% 59% 45% 37%
23%
32%27% 26%
5%9%
27%
37%
73%
59%
45%
37%
0%
10%
20%
30%
40%
50%
60%
70%
80%
%ShareofResponses
CorporateAgenciesSalesbySegmentFY2014comparedtoFY2013
Decrease Same Increase
Reported Profits for 2014 Strong Across All the Agency Types
©ASTA201514
ALLAgencies IndependentAgent(incl.ICs)
RetailLeisureAgency(70%+)
CorporateAgency(70%+)
Realizedprofit 65% 65% 65% 63%Brokeeven 18% 15% 19% 18%Operatedataloss 9% 14% 6% 16%Don'tknowyet/Unsure 8% 7% 9% 4%
65% 65% 65% 63%
18%15%
19% 18%
9%14%
6%
16%
8% 7% 9%4%
0%
10%
20%
30%
40%
50%
60%
70%
%ShareofResponses
AgencyPerformancein2014Comparedto2013
Realizedprofit Brokeeven Operatedataloss Don'tknowyet/Unsure
Expectations for 2015 Are Very Positive
Year AverageProfit% Median% Mode%
2007 8% 10% 10%2008 8% 10% 10%2009 7% 5% 0%2010 6% 5% 5%2011 7% 5% 5%2012 8% 5% 5%2013r 8% 5% 5%2014r 10% 10% 5%2015f 12% 10% 5%
Note:r=revised,f=forecast
©ASTA2015
Revised2013 and2014andForecasted2015ProfitsComparedto2012‐2007(profitsmeasuredasapercentageoftotalrevenue)
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Independent Agent’s 2015 Forecast More Positive than Retail Leisure and Corporate Agency
Year ALLAgencies IndependentAgent(incl.ICs)
RetailLeisureAgency
CorporateAgency(70%+)
2011 7% 8% 7% 8%
2012 8% 8% 8% 8%
2013r 8% 9% 8% 9%
2014r 10% 11% 10% 9%
2015f 12% 14% 12% 12%Note:r=revised,f=forecast
©ASTA2015
AverageRevised2013and2014andForecasted2015ProfitsComparedto2013‐2011ByAgencyType(profitsmeasuredasapercentageoftotalrevenue)
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Percentage of Agencies Reporting Same is Increasing as Those Reporting a Decrease Shrinks Showing the Industry Is Stabilizing
ComparisonofReportedTotalIncreasedSales,FY2012‐ FY2014
FY2012/2011 FY2013/2012 FY2014/2013Revenue 52% 55% 54%Transactions 47% 53% 50%NumberofClients 47% 55% 50%
ComparisonofReportedSameSales,FY2012‐ FY2014
FY2012/2011 FY2013/2012 FY2014/2013Revenue 24% 22% 26%Transactions 23% 23% 29%NumberofClients 28% 26% 31%
ComparisonofReportedTotalDecreasedSales,FY2012‐ FY2014
FY2012/2011 FY2013/2012 FY2014/2013Revenue 24% 23% 19%Transactions 30% 23% 21%NumberofClients 26% 19% 19%
©ASTA201517
Survey Background
Surveydatawascollectedthroughthe2015ASTAResearchFamily.TheASTAResearchFamilyiscomprisedofarepresentativesampleofASTAmembertravelagencyownersandmanagers.TheResearchFamilyreflectsASTAmembersinkeyagencydemographicsincludingsalesvolume,leisure/businessmix,numberofpart‐timeandfull‐timeemployeesandgeographiclocation.MemberswererecruitedrandomlyandwerecontractedtocompleteasurveyeveryfourtofiveweeksfromJanuary2015throughOctober2015.TheFamily’ssizevariesfromsurveytosurveyduetonon‐response,agencyclosings,mergers,andchangesinmembershipstatus,butisdesignedtoyieldaresponserepresentativeofallASTAagencymembers.
Thesurveydatawascollectedonlineviasurveygizmo.cominJanuary/February2015.Thereplylevelforthesurveyindicatesaminimumof95%confidencewithanerrorrate+/‐4%representingthetotalASTAagencymembership.Thisisconsideredtobeastrongsamplewithreliableresults.
Pleasenote:AlltablesanddatainthisreportaresourceddirectlyfromASTA’sAgencyProfilesurveyunlessotherwiseindicated.
ContactMelissaTeates,DirectorofResearchatASTA,[email protected].
ThisreportisavailablefordownloadfreeonASTA’sResearchPage.
©ASTA201518
ASTA Research Program
TravelAgencyBenchmarkingSeries:
ASTAAgencyProfile ‐ DemographicsofASTAmembersincludingsalesandtypeofagents.FinancialBenchmarkingReport ‐ Benchmarkingdataonsales,revenuesources,revenuebytypeoftravel,andoperationalexpensesarethefocusofthisreport.GDSReport ‐ TrendsonGDSusage,contractlengths,contractnegotiations,andincentives/penaltiesarecovered.Also,includesinformationonnon‐GDSusers.LaborandCompensationReport ‐ Detaileddataoncompensationbyregionandagencysizeandtype.Benefitsoffered,turnoverrates,andhiringpracticesarealsoincludedinthisreport.Marketing&CustomerRetentionReport ‐ Marketingpracticesandclientrelationshipsareanalyzedinthisreport.Topicsincludedareleadgenerationandclientturn‐over.NicheMarketingReport– Detailsonimportantagencynichesincludingmarketshareandsalesimpact.ServiceFeeReport ‐ Includessurveydataonaverageservicefeesbytraveltype,servicefeepolicies,servicefeecollectionsandservicefeerevenue.Consultingfeesarealsocovered.Supplier‐TravelAgentRelationshipMarketingReport ‐ Preferredsupplierrelationships,bookingchannelsused,andeffectivenessofincentiveprogramsareanalyzed.TechnologyandWebUsageReport ‐ Thebusinesspracticesofagenciesrelatedtointernetusage,technologyusage,agencyWebsite,andonlinebookingarecovered.
OtherResearchAvailable:2014ValueofTravelAgents ‐ Theprimaryobjectiveofthisstudywastomeasurethevalueofthetravelagencychannelandtoshowwhetherworkingwithtravelagentsenhancesthetravelexperience.Andtheresultsconfirmedjustthat,andmore.IndependentAgentReport ‐ Basicoperationaldataforindependentagentsincludinghostagencyusage,commissionsplits,sales,andrevenuearecoveredinthisreport.ComingSoon:2015TravelerDecisionMaking– Learnabouthowconsumerschosetravelagentsandwhytheychosethetypesoftraveltheydo.
©ASTA2015
MoreinformationonASTAReportscanbefoundontheResearch Papers page.ReportscanalsobepurchasedintheASTA Store.
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