ASTA’s annual Agency Profile shows that the typical ASTA travel agency is still small and still struggling with the effects of the recession — only a third realized a profit last year, down from 53% as recently as 2007.
The profile, based on a survey of 541 ASTA members, also confirms some long-standing trends about the demographics and business mix of the average ASTA agency.
The report shows, for example, that most agents have been around for a while and the influx of newcomers has slowed considerably. The average agency is 25 years old and 48% were established in the 19-year period between 1981 and 2000.
Moreover, only 17% were established since 2001, a sharp decline from the 31% reported in 2008.
Also, 62% of the individuals responding to the survey said they were 55 or older, a 10-point rise over the 52% reported in 2004.
On the plus side, ASTA appears to have had some success in recruiting new members, as a third of ASTA members have joined since 2001.
The average agency remains small, with eight full-time employees, three part-timers and 12 independent contractors. The average, however, is skewed by the presence of some very large agencies.
Over half of ASTA agencies reported two or fewer full-time employees. Also, the median or mid-point average is two full-time employees, and the most commonly reported number was one.
In terms of sales volume, 62% reported sales of $2 million or less, but ASTA noted a trend in recent data suggesting that here has been an increase in the number of agencies at both the highest and lowest ends of the scale.
In 2002, for example, agencies reporting sales volume below $1 million accounted for 21% of the total, while those reporting volume over $5 million accounted for 12%. In the latest survey, those with sales below $1 million accounted for 39% of the total, while those above $5 million accounted for 20%.
It’s as if mid-sized agencies are being squeezed. Those with volume between $2 million and $5 million accounted for 36% of the total in 2002, but only 17% of the total today, ASTA reported.
Another long-term trend confirmed by the survey is the changing business mix. The 2010 Agency Profile put international sales at 55% of the total, the first time it has topped the 50% mark. In 2004, international sales were 40%.
As for the product mix, cruises and tours continue to command a greater share than air sales, which have dropped to 24%. Tour sales in 2009 were reported at 35%, but are projected to decline to 29% this year, while cruise sales are projected to gain a point to 26%.