The Future Looks Bright: ASTA
The American Society of Travel Agents (ASTA) has announced the results of a recent ASTA member survey, which found over half of its member agencies had stronger revenue, greater transaction volume and more clients in 2013. This appears to be a trend, as it follows a solid showing in 2012 where close to half of agencies reported stronger revenue from the previous year.
“A second year of strong growth shows that agencies are connecting with consumers who want to work with a travel professional,” said ASTA president Zane Kerby (pictured). “ASTA agencies are confident that they can continue to expand their business in 2014.”
Overall, in 2013, 55% of travel agencies reported an increase in revenue, 53% reported an increase in transactions, and 55% reported an increase in clients.
Corporate agencies expressed the strongest performance in 2013, with 65% reporting increased revenue and 57% reporting increased clients. The 8% gap between increased revenue and increased clients suggests that individual corporate customers are travelling more.
Profits are up. Sixty-four per cent of the travel agencies reported a profit in 2013. When broken out, 72% of corporate agencies reported a profit. The average profit reported was 9% measured as a percentage of total revenue.
The future looks bright too. Agencies are forecasting stronger profits in 2014, with retail leisure agencies forecasting an 11% profit, independent agents forecasting a 13% profit and corporate agencies forecasting a 10% profit.
