While business continues to thrive for some travel agencies, others are facing headwinds because of decreased consumer demand and uncertainty, according to a new survey from ASTA.
ASTA surveyed members in March and again in June. In both surveys, advisors said they were concerned about economic instability, misinformation and fears surrounding international safety and immigration policies.
"However, tone and urgency shifted notably from March to June," ASTA said. "Many advisors are 'anxiously reactive,' noting the mounting sense of burnout, client frustration and realignment of business models."
While the full survey results are a benefit for ASTA Premium Members, the Society released some key statistics.
From the March survey to the June survey, the proportion of agencies experiencing a significant drop in demand was flat, ASTA said. However, those seeing a slight fall in demand increased from 32.5% to 38.8%.
International travel has been the most affected, according to ASTA.
In the June survey, postponements of international travel were up compared to March, though cancellations slightly decreased.
Most advisors, 69.2%, said in June that international leisure travel has been the hardest-hit segment of the business. That figure was up 9.2 percentage points from March.
ASTA also asked advisors about key factors affecting their businesses. More pointed to tariffs (27.9%) and travel bans (12.4%) in June than they did in March (23.1% and 8.3%, respectively).
"Our members expressed their views plainly in our most recent national survey," ASTA president and CEO Zane Kerby said. "They are seeing hesitation in their clients, cancellations in their bookings and fear in their conversations. They are shouldering the burden of misinformation and working overtime to educate and protect the travelers who count on them most.
"For some, business is still thriving," Kerby added. "For others, survival demands a pivot toward new markets, safer regions, more flexible pricing and above all, a clear-eyed strategy."