Role of Travel Agents

» What is the role of the travel agent and how has it changed?
» How many travel agencies are there in the U.S.?
» How many travel agents are there in the U.S.?
» What are the largest agencies in the United States?

Agents & The Internet

» How is the Internet affecting the travel industry?
» What are the benefits of using a travel agent compared to the Internet?
» Will the Internet replace the need for travel agents?

Travel Trends

» How has the travel industry changed, and what factors affect travel?
» Where are some of the most popular destinations for travelers?
» Are young people using travel agents?
» What role does minority travel play in the future of the travel industry?

Travel Agent Business Trends

» What is the history of commission cuts and how are travel agents adjusting to them?
» Do travel agents charge service fees? How much? How has this changed?
» What percentage of airline tickets, rental cars, cruises and hotels rooms are sold by travel agents?
» Do travel agents use the Internet?
» What is the average salary of a travel agent?

ASTA Membership

» What are ASTA’s membership numbers? Are these up or down from previous years?
» Does ASTA represent home-based agents?

Selecting a Travel Agent

» How do I choose a travel agent that’s right for me?

ROLE OF TRAVEL AGENTS
What is the role of the travel agent and how has it changed?
Travel agents work hard on behalf of the consumer. The role of a travel agent is to make the process of going on a trip - whether for work or pleasure - be a stressfree and memorable experience. Travel agents spend time not only booking tickets and searching for affordable prices, but also personalizing their services for individual clients. The American Society of Travel Agents’ (ASTA) motto “Without a Travel Agent, You’re On Your Own,” exemplifies the importance and way professional travel agents view their role in today’s changing market.

The job of a travel agent has grown and adapted to reflect the changes within the travel industry, and to reflect the difference in the way people think about travel. ASTA travel agents recognize that consumers today have done their homework and are more knowledgeable about what they want. Clients who turn to an ASTA travel agent desire an in-depth, personal approach and want the advice and expertise of a professional. This is why an ASTA travel agent:

› Distills product information;
› Investigates and supplies competitive information;
› Stays abreast of the most current and timely promotions;
› Analyzes the current promotions;
› Clarifies the fine print, such as cancellation penalties and restrictions;
› Makes recommendations on travel-related options;
› Simplifies the research and subsequent transaction;
› Enhances the trip with value-added benefits and amenities;
› Uses their clout to obtain the best possible arrangements in seemingly impossible situations; and
› Gets problems resolved.

How many travel agencies are there in the United States?
This is a difficult question to answer. At one time, the Airlines Reporting Corp. (ARC) data gave an accurate account of the travel agent market. However, as travel agencies become less reliant on selling airline tickets, ARC-accreditation no longer reveals a true picture of market size. The market can be divided into ARC and non-ARC sellers of travel. As of November 2004, there were 21,013 ARCauthorized retail agency locations. The actual number of non-ARC sellers, including home-based agents, is extremely difficult to quantify. No industry standard is in effect, thus making it impossible to accurately portray the size of this portion of the travel agent market.

How many travel agents are there in the United States?
According to the Bureau of Labor Statistics (BLS), there were 103,840 travel agents in 2003. To learn more, visit www.bls.gov.

What are the largest agencies in the United States?
See www.travelweekly.com/research.aspx.

AGENTS & THE INTERNET
How is the Internet affecting the travel industry?
The Internet has helped transform the travel industry. It helps educate the consumer by providing vast amounts of information about destinations and different travel options. Both consumers and travel professionals have benefited from the Internet, which makes the possibility of travel to exotic places more imaginable. It has helped consumers see in full color and, in some cases, real time, where they would like to visit. The Internet gives travelers the ability to do comparative shopping for attractive deals or packages. It also has helped many travel agencies, hotels, resorts and other travel-related suppliers flourish by bringing in business through Web sites.

The Internet has become such an integral part of the travel agency business that 98 percent of ASTA agencies currently subscribe to a consumer on-line service or an Internet access provider in order to help them better serve their clients.

Gathering information increasingly involves the use of the Internet. Almost 95 percent of agents have conducted online research. Nearly 83 percent of
ASTA agencies report they have booked directly on supplier’s Web sites without using their GDS or calling the supplier in question.

What are the benefits of using a travel agent compared to the Internet?
The Internet can be a powerful tool. It can increase the scope and reach of a consumer’s efforts and allow a person to check hundreds of options or research destinations in depth. But to make the Internet work effectively, a person has to understand where to look and what questions to ask, otherwise hours can be wasted surfing the Web and ultimately produce unsatisfactory results. This is where a travel agent can make a world of difference.

A professional travel agent is trained to guide a client through the entire process of planning a trip, whether for business or for leisure. Travel agents take classes, participate in seminars, become destination specialists and join professional associations, such as ASTA, in order to ensure they make each client’s travel experience as personalized, convenient and memorable as possible. When planning a business trip or family vacation, the Internet can be a valuable resource, but it cannot replace the expertise and guidance of a travel agent. Also, during travel crises, the Internet can’t replace a human being who will persist to help a client. Travel agents, meanwhile, can offer a myriad of intermediate options.

Will the Internet replace the need for travel agents?
There are some things technology cannot replicate, and personal touch is one of them. The Internet is a valuable resource, but it cannot replace the expertise, guidance and personal service of a travel agent. At a time when travelers are stressed out with hectic schedules, travel agents have all of the information at their fingertips, saving valuable hours of surfing on the Web. Agents also can offer insider tips generally based on personal experience.

TRAVEL TRENDS
How has the travel industry changed, and what factors affect travel?
The leisure travel industry has changed from being an option of the upper class to one open to all segments of society - in fact, travel has become an everyday part of life whether for a meeting across the country or a last minute trip to a nearby city. Over time it has become price driven. Many people today base a large part of their travel buying decisions on cost and convenience of travel. People are booking closer in to their travel dates. Thanks to dramatic discounting across the industry, consumers have been conditioned to wait until the last minute before booking in hopes of securing a deeply discounted package deal.

Where are some of the most popular destinations for travelers?
See ASTA’s Hot Destinations Survey.

Are young people using travel agents?
Young people understand and value the services of a travel agent. Of the people
who use travel agents:

43% are Baby Boomer travelers, age 35-54
33% are Generation X andY travelers, age 18-34
Source: Yesawich, Pepperdine, Brown & Russell

One of the winners of ASTA’s and Hyatt’s “Best Practices Program” has made a point to educate students about the adventure of travel and being a travel agent as a career. This process has made young people aware of the expertise required to be a professional travel agent and about the value they offer.

What role does minority travel play in the future of the travel industry?
Minority travel is one of the fastest growing niches in the industry, and as more agencies continue developing specialties, this will be reflected in the overall demographic of the travel agency industry.

ASTA recognizes this trend among consumers as well as within the industry and has made a consolidated effort to reach out to Hispanic agents with the “ASTA en Español” listserv on ASTAnet.

TRAVEL AGENT BUSINESS TRENDS
What is the history of commission cuts and how are travel agents adjusting to them?

Feb. 1995: Domestic commission cap of $50 roundtrip / Led by Delta   Sept. 1997: Commissions cut to 8% / Led by United   Nov. 1998: International commission cap of $100 roundtrip / Led by United   Oct. 1999: Commission cut to 5% / Led by United   Aug. 2001: Domestic commission cap reduction to $20 / Led by American   March 2002: U.S. carriers eliminate commissions / Led by Delta

After decades of offering travel agents a standard commission of at least 10 percent with no cap, many of the larger airline carriers in the United States stopped paying base commissions to travel agents, beginning in March 2002. ASTA sees the elimination of base payments to agents on the part of air carriers as anti-consumer and as a missed business opportunity. Consumers value the services and unbiased expertise offered by professional agents who represent an impartial source of information for travelers. Travel agents have and will survive in the new marketplace, because consumers know the value they provide.

While there has been contraction and consolidation of brick-and-mortar travel agencies, the number of travel agents has remained fairly steady. Some travel agencies have grown and improved their businesses through new business practices. For example, many travel agencies have focused on providing an increased value to their customers by becoming experts or specialists in certain types of travel or specific destinations. Some agencies have implemented new services that add value to client transactions, such as tracking of frequent flyer accounts or discounted upgrades.

Do travel agents charge service fees? How much? How has this changed?
Since 1998, the number of agencies charging service fees has increased from 64 percent to more than 96 percent of agencies, today. Typically, agencies charge fees for all airline-related services, but some charge fees for other services such as trip research, Amtrak, car rental and hotel-only reservations. On average, ASTA travel agencies charge their customers $27 for issuing airline
tickets, up from an average of $13 in 2001.

What percentage of airline tickets, rental cars, cruises and hotels rooms are sold by travel agents?
When it comes to booking travel, travel agents are experienced professionals. Travel agents
sell:

87% of cruises
81% of all tours and packages
51% of all airline tickets
47% of all hotels
45% of all car rentals
Source: 2004 Travel Industry Survey/Travel Weekly

Do travel agents use the Internet?
The Internet has become an integral part of almost every travel agency. No less than 98 percent of agencies surveyed in 2002 have Internet access at their offices, up from 24 percent in 1995; 90 percent of agencies provide access to all their employees. Sixty-five percent (65%) of agencies have a Web site, up from 37 percent in 1998. Of those, 45 percent can accept online bookings.

What is the average salary of a travel agent?
In 2003, according to the Bureau of Labor Statistics, the average annual compensation was $29,430. To learn more, visit www.bls.gov/news.release/ocwage.t01.htm.

ASTA MEMBERSHIP
What are ASTA’s membership numbers? Are these up or down from previous years?
ASTA remains the world’s largest association of travel professionals with 20,000 members in 140 countries. ASTA’s membership numbers reflect the shift and consolidation taking place within the travel industry, specifically among travel agencies. In response to the changes, ASTA has adapted its membership criteria to provide opportunities for all travel professionals and travel businesses to join from home-based individual agents to larger travel agencies and affiliated travel suppliers.
ASTA has changed with the times in order to stay true to its mission: To enhance the professionalism and profitability of member agents through effective representation in industry and government affairs, education and training, and by identifying and meeting the needs of the traveling public.

Does ASTA represent home-based agents?
Yes, through NACTA, the National Association of Commissioned Travel Agents, an affiliate that ASTA represents and owns. With more than 1,000 members, NACTA is the travel industry's first
and leading association for independent travel agents, cruise-oriented agents, home-based travel agents, outside sales travel agents and host travel agencies.

SELECTING A TRAVEL AGENT
How do I choose a travel agent that’s right for me?
Every travel agency is different and accordingly, some are better suited to a given consumer than others. Here are some tips on choosing a travel agent who is right for you.

Go With the Pros: Look for the ASTA label. Through its continuing education and training programs, ASTA prepares its members to operate high-caliber, competitive businesses.

Ask Around: Tap friends, neighbors and relatives who use an agent they trust. You may want to visit or call several agencies to find the one that best suits your needs. Consider everything from the appearance of the office to the agent’s willingness to listen and answer questions The best agents want to establish a long-term relationship with a client, not just make one sale.

Ask About Fees: Good agents will notify their clients of any additional fees, including service fees, up front. Doing otherwise is pointless, as the fee will appear as a separate charge on the client’s credit card bill.

Search the Web: Go to TravelSense (www.TravelSense.org) and use the “Find an Agent” tool. Search for agents with expertise in destinations or specific subjects that interest you.

Check Credentials: Many agents have been trained in business management, travel and tourism or geography. Others have supplemented their agency experience with extensive education and
training courses. Some travel agents are Certified Travel Counselors (CTC), having completed an educational program with the Travel Institute, or Master Cruise Counselors (MCC), having
completed a program with the Cruise Lines International Association (CLIA).

Find Out an Agency’s Track Record: Call ASTA to see whether a member agency has had a complaint against it in the prior six months. Check with the local Better Business Bureau, while keeping in mind they will only have records of agencies that have had reports filed against them.

Useful Links

» Travel Weekly: biannual travel agent survey and up-to-date industry news
» The Travel Industry Association of America: general industry data and trends
» Airlines Reporting Corporation
» Tourism Industries Office, U.S. Department of Commerce: information on travel to and from the United States
» Cruise Lines International Association
» International Airlines Transport Association