The first in a series of Financial Benchmarking Reports designed to give travel agencies reference points for assessing their own financial performance has been published by the…
The first in a series of Financial Benchmarking Reports designed to give travel agencies reference points for assessing their own financial performance has been published by the American Society of Travel Agents (ASTA).
“This is one of the first and most helpful new tools offered as part of our new business plan,” said Cheryl Hudak, CTC, president and CEO. “We like to say we’re in the business of selling travel rather than ‘the travel business,’ and this report puts ASTA’s mouth where our money is.”
Based on a 2006 survey of ASTA’s Research Family—a representative group of travel-agency members—the report analyzes labor, sales, revenue and operating-expense data. In general, the survey found that agencies have shifted their business model to reflect changes in revenue sources. Products such as tours and cruises offer significant commission revenue; agencies can use that data to determine whether their product mixes are the best for success.
Most of the responding agencies (88 percent) have staff in combined management/sales positions as well as agents only, the survey found; few (30 percent) have management-only positions. And most agencies’ operating expenses have become very lean in most categories. Labor is by far the greatest expense, almost half (49.5 percent) of operating expenses: The average salary for a full-time agent is $30,052, even though only half the agencies offer full-time staff health insurance, and the average number of vacation days is 13.4, excluding FAM trips. Most of the agencies (63 percent) use independent contractors, who are not employees, as agents.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
