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Consumers’ Willingness to Pay for Travel Agents: Insights and Trends

Despite current economic challenges and persistently reducing commissions, consumers remain willing to pay for travel agent services, indicating a shift in behavior among travelers. Recent surveys reveal that younger and less affluent demographics highly value travel agent expertise, particularly for complex bookings. Over 43% of respondents expressed readiness to pay service fees, preferring flat rates that offer more control. As travel agents adapt to market changes, consumer convenience and the perception of getting valuable suggestions are pivotal motivators for engaging professional travel services.

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Consumers’ Willingness to Pay for Travel Agents: Insights and Trends

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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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