Online competition, increased costs of travel called key issues for future
■ Internet competition and inflation weigh heavily on agents’ minds. When asked which events or
trends had the greatest impact on their agency’s
business in 2005, 37% said Internet-based competition. Natural disasters and increased cost of travel
each were cited by 23%. Only 6% mentioned terrorism fears.
■ When asked which events or trends could
have the greatest future impact on their business,
34% said Internet-based competition, but nearly
33% said the increased cost of travel. Security issues and terrorism fears were mentioned by 11%.
(This question was asked before the disclosure of
the London bomb plot on Aug. 10.)
■ Suppliers are increasing their use of Internet
tools to communicate with preferred agents. Retailers report that e-mail updates and agent-specific Web sites are used by more of their preferred
suppliers than any other tools, while the number
using fax bulletins fell to 59% from 67% a year ago.
The number using GDS updates slipped from 44%
to 39%.
Key Issues Affecting Business in 2005
Internet-based competition
Natural disasters (e.g. hurricanes)
Increased costs of travel
Security (e.g. terrorism fears)
Unfavorable opinion of U.S. abroad
Health issues (e.g. SARS, onboard outbreaks)
Other
Overall %
36. 8
23. 4
23. 3
5. 9
2. 3
1.0
7. 4
Key Issues Affecting Future Business
Overall %
Internet-based competition 34. 3
Increased costs of travel 32. 7
*Security (e.g. terrorism fears) 11. 3
Natural disasters (e.g. hurricanes) 8. 2
Health issues (e.g. SARS, onboard outbreaks) 3. 5
Unfavorable opinion of U.S. abroad 2. 9
Other 7. 1
* Asked before disclosure of London bomb plot in mid-August.
Preferred Suppliers -
Share of Business Directed by Travel Agents
Hotel
Air
Car*
Resort
Other
Tour
Cruise
0%
52%
54%
56%
62%
64%
69%
73%
10% 20% 30% 40% 50% 60% 70% 80%
Among agents with preferred suppliers in these catego-
ries, the share of business directed to preferred sup-
pliers ranges from a low of 52% for hotels to 73% for
cruise lines.
PREFERRED SUPPLIERS
■ Most agencies have some preferred suppliers. Only 11% say they
have none. The majority, 60%, report they book both preferred and
nonpreferred suppliers; 29% say
they book preferreds only.
CUSTOMER RELATIONSHIPS/MARKETING
■ Most agencies, or 86%, maintain one or more
customer databases, no significant change from last
year. Most agencies, or 77%, keep records about clients’ preferences, previous trips and special needs,
but 35% do not record whether their clients have a
Retailers report that e-mail updates and agent-specific Web
sites are used by more of their preferred suppliers than other
tools. The number using fax bulletins and GDS updates declined.
■ Cruises and tours are the products most often sold through preferred suppliers, with agents directing over half of their business to
preferred suppliers in those sectors.
passport, and 40% do not record their clients’ year
of birth.
■ Agents’ use of cooperative marketing programs with consortia or suppliers remains high, but
little changed from last year. More
than three-fourths of agents say that
some portion of their marketing and
promotional efforts is undertaken in
cooperation with suppliers, and 62%
say they have engaged in joint programs with suppliers and a consortium or trade group.
Preferred Suppliers -
Benefits They Offer to Agencies
Agencies report the percentage of pre-
ferred suppliers offering the following
benefi ts:
E-mail updates
Agent-specific Web site
Education
Preferential commissions
Fax updates
Co-op advertising
Co-op marketing
Fam trips
Direct-mail updates
GDS updates
Customer referrals
76%
68%
64%
63%
59%
58%
57%
48%
42%
39%
26%
■ When asked if they share their
client database information with suppliers or agency groups for cooperative marketing purposes, nearly 80%
of agents say “no.”
■ Agents report that 40% of their
marketing and promotional efforts
are undertaken in cooperation with
suppliers. About 29% is undertaken
with an agency group and one or
more suppliers.
