WORKING WITH U.S. TRAVEL AGENTS #ATWS2015
WORKING WITH U.S. TRAVEL AGENTS AGENDA: Perry Lungmus Overview of US Travel & Agency Landscape Panel Discussion Q&A Travel Leaders #ATWS2015
Working with U.S Travel Agents Sarah Nelson-Wandrey Amit Sankhala Sarah Postler Stevie Christie A World of Travel Encounters Asia Tourism Australia The Wilderness Collective #ATWS2015
THE U.S. TRAVEL MARKET IPK International World Travel Monitor 2014 IPK International World Travel Monitor 2014 #ATWS2015
THE U.S. TRAVEL MARKET IPK International World Travel Monitor 2014 Approximately 13 million unique, overseas leisure travelers annually* *Excluding business travelers and VFR #ATWS2015
TOP U.S. LEISURE DESTINATIONS* IPK International World Travel Monitor 2014 21% 35% 19% 9% 1. Europe 2. Caribbean 3. Asia 4. South America *Excluding business travelers and VFR #ATWS2015
U.S. TRAVEL AGENCY PROFILE 1. Largely unregulated compared to retailers in other countries No state or national license No certification standards or oversight Few supplier requirements, if any 2. Independently-owned, often family operated 3. Widely variable in size: $1M to $1B #ATWS2015
U.S. TRAVEL AGENCY PROFILE 4. Trend toward consolidation 5. Mix of both corporate and leisure business 6. Have a portfolio of preferred suppliers 7. Expect 10%+ commissions, operate on single-digit margins 8. Most affiliated with consortia, co-op or franchise group #ATWS2015
WORKING WITH U.S. TRAVEL AGENTS IPK International World Travel Monitor 2014 Agency Locations 1980 s = 46,000 Agency Locations 1990 s = 34,000 Agency Locations 2015 = 13,000 Airline Reporting Corporation (ARC) #ATWS2015
WORKING WITH U.S. TRAVEL AGENTS IPK International World Travel Monitor 2014 #ATWS2015
WORKING WITH U.S. TRAVEL AGENTS US Travel Agents account for 30% of the US Travel Market, selling approximately $100B. PhoCusWright 2014 In 2014 18% of US travelers used a traditional travel agent, compared to 12% in 2013. Portrait of American Travelers MMGY Global 41% of 8,300 travelers that did NOT use a travel agent signaled that they would be open to using a travel agent. #ATWS2015 The Value of Travel Agents 2014 MMGY Global
#ATWS2015
WORKING WITH U.S. TRAVEL AGENTS Agent Specialization #ATWS2015
WORKING WITH U.S. TRAVEL AGENTS Agent specialization helps provide clarity to the potential client. The focus could be on a geographical area (city, country, region), a category of travel (family travel, small ship cruises, honeymoons) or a specific activity (golf, skiing, kayaking, cycling). #ATWS2015
WORKING WITH U.S. TRAVEL AGENTS IPK International World Travel Monitor 2014 #ATWS2015
WORKING WITH U.S. TRAVEL AGENTS IPK International World Travel Monitor 2014 #ATWS2015
WORKING WITH U.S. TRAVEL AGENTS IPK International World Travel Monitor 2014 #ATWS2015
SPECIALIZATION IPK International World Travel Monitor 2014 About 74% of respondents to this year's Consumer Trends survey who used an agent in the past 12 months said they believed that the agent who booked their trip was a Specialist. Travel Weekly Consumer Trends Survey 2014 #ATWS2015
IPK International World Travel Monitor 2014
WORKING WITH U.S. TRAVEL AGENTS IPK International World Travel Monitor 2014 #ATWS2015
WORKING WITH U.S. TRAVEL AGENTS IPK International World Travel Monitor 2014 #ATWS2015
WORKING WITH U.S. TRAVEL AGENTS IPK International World Travel Monitor 2014 #ATWS2015
Working with U.S Travel Agents Sarah Nelson-Wandrey Amit Sankhala Sarah Postler Stevie Christie A World of Travel Encounters Asia Tourism Australia The Wilderness Collective #ATWS2015
WORKING WITH U.S. TRAVEL AGENTS #ATWS2015
Working with U.S Travel Agents Sarah Nelson-Wandrey Amit Sankhala Sarah Postler Stevie Christie A World of Travel Encounters Asia Tourism Australia The Wilderness Collective #ATWS2015
WORKING WITH U.S. TRAVEL AGENTS Wilderness Scotland Video #ATWS2015
Working with U.S Travel Agents Sarah Nelson-Wandrey Amit Sankhala Sarah Postler Stevie Christie A World of Travel Encounters Asia Tourism Australia The Wilderness Collective #ATWS2015
WORKING WITH U.S. TRAVEL AGENTS Questions? #ATWS2015
Perry Lungmus Travel Leaders www.travelleaders.com