TRAVEL
INDUSTRY
SURVEY
REALITIES
CONTINUED FROM PAGE 10
tour sales, or 54%, are for international travel, while 46% are for domestic
travel (Fig. 10). With some variations,
these averages hold true among agencies of all sizes.
Among home-based agents, however, tour and package sales by the
highest producers are more tilted toward the international side than any
other group, at 64%. The opposite is
true for the very smallest home-based
agents, for whom the split is reversed,
at 61% domestic/39% international.
Agents report they continue to rely
predominantly on traditional suppliers for packaged travel. When asked to
name the types of suppliers used for
packaged travel, 88% of agencies responded “traditional tour operators.”
About 60% said they assemble some
packages themselves, while a minority
cited airline or hotel-branded packages or online packagers. Plog observed
that packages assembled by airlines or
hotels have all dropped slightly this
year, suggesting that “only traditional
tour operators are maintaining their
relative position with travel agents”
(Fig. 12).
Looking ahead, 58% of agents re-
CONTINUED ON PAGE 14
Figure 10
Domestic/U.S.
International
Total
46%
54%
Revenue from Domestic vs. International Tours and Packages
Traditional agencies
$1M to $3M $3M to $10M
42% 43%
58% 57%
Less than $1M
49%
51%
$10M or more
50%
50%
Home-based agents
Less than $50K $50K to $250K $250K or more
61% 42% 36%
39% 58% 64%
Figure 11
Air travel
Cruises from U. S.
International cruises
Car rentals
Hotel bookings
Inclusive resorts
Tours
Rail travel, etc.
Total
25%
24%
8%
5%
10%
15%
11%
2%
Less than $1M
23%
23%
7%
5%
9%
18%
13%
2%
Revenue from Various Travel Products
Traditional agencies
$1M to $3M $3M to $10M
24% 27%
21% 19%
8% 9%
5% 6%
9% 11%
17% 15%
13% 11%
3% 2%
$10M or more
38%
14%
8%
8%
14%
8%
7%
3%
Home-based agents
Less than $50K $50K to $250K $250K or more
24% 13% 18%
36% 36% 26%
3% 11% 10%
4% 2% 3%
13% 8% 9%
11% 19% 20%
8% 9% 12%
1% 2% 2%
Figure 12
Traditional tour operators
Agency packages
Airline packages
Online packages
Hotel packages
Total
88%
61%
42%
23%
23%
Types of Suppliers Used for Tours and Packages
Traditional agencies
$1M to $3M $3M to $10M
95% 89%
65% 62%
49% 42%
19% 15%
20% 20%
Less than $1M
92%
62%
42%
27%
21%
$10M or more
76%
64%
41%
19%
24%
Home-based agents
Less than $50K $50K to $250K $250K or more
73% 95% 96%
50% 57% 65%
33% 40% 42%
34% 30% 22%
27% 23% 25%
Figure 13
Yes
No
Total
32%
68%
Less than $1M
23%
77%
Percent that Receive Airline Overrides/Incentives
Traditional agencies
$1M to $3M $3M to $10M
39% 45%
61% 55%
$10M or more
59%
41%
Home-based agents
Less than $50K $50K to $250K $250K or more
15% 8% 18%
85% 92% 82%
