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Bill Maloney, CTC Executive Vice President & COO ASTA

Travel Intermediaries: Are Consumers Still Willing to Pay?. Bill Maloney, CTC Executive Vice President & COO ASTA. New Struggles for Travel Agents. Economic challenges Reduced availability of credit Difficulty meeting short-term obligations Disappearing commissions Consumers under siege.

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Bill Maloney, CTC Executive Vice President & COO ASTA

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  1. Travel Intermediaries:Are Consumers Still Willing to Pay? Bill Maloney, CTC Executive Vice President & COO ASTA

  2. New Struggles for Travel Agents • Economic challenges • Reduced availability of credit • Difficulty meeting short-term obligations • Disappearing commissions • Consumers under siege

  3. Are Consumers Willing to Pay? U.S. travel agents are finding the answer is a resounding “YES!” YES!

  4. Is the Link Broken? 1988 Travel documents Information 2008 ????? ?????

  5. Surveys Ask …. • Who is using travel agents? • Are they willing to pay a travel agent for their expertise? • How much are they willing to pay?

  6. Survey Says … Younger and less affluent travelers (< $75,000 / 54,900 €) valued and used the services of a travel agent as much, if not more, than did affluent travelers (> $150,000 / 110,000 €). Data excerpted from chart on Travel Agent Usage

  7. Survey Says … Consumers, regardless of income, are much more willing to pay for a travel agent’s services if they see themselves as getting new suggestions. Convenience, was cited as being the second most important motivator overall.

  8. Survey Says … A significant percentage used a travel agent every time they took a trip, regardless of complexity. Travelers (18-34) represented the highest percentage—12 %—of those who used a travel agent in every instance.

  9. Survey Says … The main reason consumers opt not to use a travel agent is the perceived lack of control. Graph shows data related to Reasons for Not Using a Travel Agent for Purchasing Airline Tickets. Results proved similar for every travel segment and every demographic.

  10. Survey Says … Consumers were most likely to have paid a service fee for air bookings and vacation packages, and less likely for car rental and cruise bookings. Fee Structure Paid when Booking a Cruise Fee Structure Paid when Booking Airline Tickets

  11. Survey Says … When it comes to service fees … • Consumers said they prefer a flat fee rather than percentage-based fee. • Flat fees provide consumers a greater feeling of control %

  12. Survey Says … The largest percentage of consumers said they would still use a travel agent to purchase a tour package, book a cruise or plan another type of trip if a fee was involved. Graph shows data related Continued Use of a Travel Agent if Fee is Charged Purchasing a Vacation Package.

  13. Survey Says … What’s acceptable? • $15/11€ to $100/73€ • Air travel = $20/14€ • Cruises = $50/37€

  14. Survey Says … Overall, 43% of respondents were willing to pay a fee for any travel agent product or service. A significant portion of consumers across all demographic categories would pay fees without an explanation of the benefits of using a travel agent. Travel Agent Usage Percentage Willing to Pay Fee by Segment - Upper Limit

  15. Age as a Variable

  16. Gender as a Variable

  17. Income as a Variable

  18. Working on Your Behalf ASTA … • creates an institutional body of learning from which all members benefit; • provides a variety of online tools and 24/7 access to global network of travel agents and suppliers; • works hard to keep pace with the changing needs of consumers; • NEEDS YOU!

  19. Getting Involved • Get informed. Sign up for ASTA SmartBrief on ASTA.org • Members: Visit ASTA.org daily • RSS feed • Buyer’s Guide • Dateline Weekly International Member spotlight • ASTA’s Worldwide Destination Guide • WebExchange • Non-members: JOIN!

  20. Thank You ASTA can be the architect, but without your help as bricklayers, we won’t have a strong foundation upon which to build this industry.

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