The number of agencies that made a profit in 2011 (55%) has surpassed 2007 levels, when 53 percent reported a profit, indicating continued--albeit slower than anticipated--economic growth, ASTA’s 2012 Agency Profile Study found.
The study also found that the number of agencies with sales of less than $1 million (39%) and sales of more than $10 million (9%) grew in 2011, up respectively from 2002 by 93 percent and 100 percent. Agencies in the $1 million to $10 million range did not fare as well, experiencing sales decreases anywhere from 21 percent to 56 percent.
“As the economy makes solid gains, we are seeing both large and small agencies experience revenue growth. It’s fully expected that when the economy begins to grow in earnest, the same will hold true for mid-sized agencies,” said ASTA CEO Tony Gonchar. “This report provides an in-depth look at the health of the travel agency industry, as well as critical benchmarking data which will help all agency owners optimize their business operations.”
Interestingly, the crackdown on the use of independent contractors (ICs) by the Internal Revenue Service and state regulatory bodies may be having an effect on travel agencies as the average number of ICs (8) and part-time employees (2) have dropped since 2009 as the number of full-time (12) employees began to rise.
Preferente.com Diario para profesionales del Turismo