1 Bill Maloney, CTC Executive Vice President & COO ASTA Travel Intermediaries: Are Consumers Still...
-
Upload
ralf-turner -
Category
Documents
-
view
218 -
download
2
Transcript of 1 Bill Maloney, CTC Executive Vice President & COO ASTA Travel Intermediaries: Are Consumers Still...
![Page 1: 1 Bill Maloney, CTC Executive Vice President & COO ASTA Travel Intermediaries: Are Consumers Still Willing to Pay?](https://reader036.fdocuments.net/reader036/viewer/2022070407/56649e4c5503460f94b40c84/html5/thumbnails/1.jpg)
1
Bill Maloney, CTCExecutive Vice President & COO
ASTA
Travel Intermediaries: Are Consumers Still Willing to Pay?
![Page 2: 1 Bill Maloney, CTC Executive Vice President & COO ASTA Travel Intermediaries: Are Consumers Still Willing to Pay?](https://reader036.fdocuments.net/reader036/viewer/2022070407/56649e4c5503460f94b40c84/html5/thumbnails/2.jpg)
2
New Struggles for Travel AgentsNew Struggles for Travel AgentsNew Struggles for Travel AgentsNew Struggles for Travel Agents
• Economic challenges
• Reduced availability of credit
• Difficulty meeting short-term obligations
• Disappearing commissions
• Consumers under siege
![Page 3: 1 Bill Maloney, CTC Executive Vice President & COO ASTA Travel Intermediaries: Are Consumers Still Willing to Pay?](https://reader036.fdocuments.net/reader036/viewer/2022070407/56649e4c5503460f94b40c84/html5/thumbnails/3.jpg)
3
Are Consumers Willing to Pay?Are Consumers Willing to Pay?Are Consumers Willing to Pay?Are Consumers Willing to Pay?
U.S. travel agents are finding the answer is a resounding “YES!”
YES
!
![Page 4: 1 Bill Maloney, CTC Executive Vice President & COO ASTA Travel Intermediaries: Are Consumers Still Willing to Pay?](https://reader036.fdocuments.net/reader036/viewer/2022070407/56649e4c5503460f94b40c84/html5/thumbnails/4.jpg)
4
Is the Link Broken?Is the Link Broken?Is the Link Broken?Is the Link Broken?
1988Travel documents
Information
2008?????
?????
![Page 5: 1 Bill Maloney, CTC Executive Vice President & COO ASTA Travel Intermediaries: Are Consumers Still Willing to Pay?](https://reader036.fdocuments.net/reader036/viewer/2022070407/56649e4c5503460f94b40c84/html5/thumbnails/5.jpg)
5
Surveys Ask ….Surveys Ask ….Surveys Ask ….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?
![Page 6: 1 Bill Maloney, CTC Executive Vice President & COO ASTA Travel Intermediaries: Are Consumers Still Willing to Pay?](https://reader036.fdocuments.net/reader036/viewer/2022070407/56649e4c5503460f94b40c84/html5/thumbnails/6.jpg)
6
Survey Says …Survey Says …Survey Says …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
![Page 7: 1 Bill Maloney, CTC Executive Vice President & COO ASTA Travel Intermediaries: Are Consumers Still Willing to Pay?](https://reader036.fdocuments.net/reader036/viewer/2022070407/56649e4c5503460f94b40c84/html5/thumbnails/7.jpg)
7
Survey Says …Survey Says …Survey Says …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.
![Page 8: 1 Bill Maloney, CTC Executive Vice President & COO ASTA Travel Intermediaries: Are Consumers Still Willing to Pay?](https://reader036.fdocuments.net/reader036/viewer/2022070407/56649e4c5503460f94b40c84/html5/thumbnails/8.jpg)
8
Survey Says …Survey Says …Survey Says …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.
Young (18-34) Old (55+) Men Women
Less Affluent Affluent
Air 15% 5% 10% 7% 12% 7%
Hotel 12% 3% 9% 5% 10% 3%
Car Rental 10% 3% 6% 5% 7% 5%
Cruise 14% 15% 14% 17% 15% 19%
Trip package 16% 10% 15% 12% 14% 14%
Tour at Destination 9% 7% 9% 7% 10% 5%
Trip planning 11% 6% 11% 5% 10% 6%
Visa/Passport related services 9% 2% 5% 3% 4% 7%
Overall average 12% 6% 10% 8% 10% 8%
![Page 9: 1 Bill Maloney, CTC Executive Vice President & COO ASTA Travel Intermediaries: Are Consumers Still Willing to Pay?](https://reader036.fdocuments.net/reader036/viewer/2022070407/56649e4c5503460f94b40c84/html5/thumbnails/9.jpg)
9
Survey Says …Survey Says …Survey Says …Survey Says …
The main reason consumers opt not to use a travel agent is the perceived lack of control.
79%
85%
81%
78%
86%
77%
88%
83%
87%
45%
39%
22%
34%
33%
27%
30%
44%
34%
40%
37%
27%
33%
35%
34%
29%
32%
42%
18-34 Years
35-54 Years
55+ Years
Male
Female
$0 - $75K
$75K - $100K
$100K - $150K
$150K+
Easier to Research/Book Myself Don't Want to Pay Travel Agent FeesMore Options When I Plan/Book Trips Myself
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.
![Page 10: 1 Bill Maloney, CTC Executive Vice President & COO ASTA Travel Intermediaries: Are Consumers Still Willing to Pay?](https://reader036.fdocuments.net/reader036/viewer/2022070407/56649e4c5503460f94b40c84/html5/thumbnails/10.jpg)
10
Survey Says …Survey Says …Survey Says …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 Airline Tickets Fee Structure Paid when Booking a Cruise
![Page 11: 1 Bill Maloney, CTC Executive Vice President & COO ASTA Travel Intermediaries: Are Consumers Still Willing to Pay?](https://reader036.fdocuments.net/reader036/viewer/2022070407/56649e4c5503460f94b40c84/html5/thumbnails/11.jpg)
11
Survey Says …Survey Says …Survey Says …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
%
![Page 12: 1 Bill Maloney, CTC Executive Vice President & COO ASTA Travel Intermediaries: Are Consumers Still Willing to Pay?](https://reader036.fdocuments.net/reader036/viewer/2022070407/56649e4c5503460f94b40c84/html5/thumbnails/12.jpg)
12
Survey Says …Survey Says …Survey Says …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.
![Page 13: 1 Bill Maloney, CTC Executive Vice President & COO ASTA Travel Intermediaries: Are Consumers Still Willing to Pay?](https://reader036.fdocuments.net/reader036/viewer/2022070407/56649e4c5503460f94b40c84/html5/thumbnails/13.jpg)
13
Survey Says …Survey Says …Survey Says …Survey Says …
What’s acceptable?
• $15/11€ to $100/73€
• Air travel = $20/14€
• Cruises = $50/37€
![Page 14: 1 Bill Maloney, CTC Executive Vice President & COO ASTA Travel Intermediaries: Are Consumers Still Willing to Pay?](https://reader036.fdocuments.net/reader036/viewer/2022070407/56649e4c5503460f94b40c84/html5/thumbnails/14.jpg)
14
Survey Says …Survey Says …Survey Says …Survey Says …
Travel Agent Usage Percentage Willing to Pay Fee by Segment - Upper Limit
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.
![Page 15: 1 Bill Maloney, CTC Executive Vice President & COO ASTA Travel Intermediaries: Are Consumers Still Willing to Pay?](https://reader036.fdocuments.net/reader036/viewer/2022070407/56649e4c5503460f94b40c84/html5/thumbnails/15.jpg)
15
Age as a VariableAge as a VariableAge as a VariableAge as a Variable
Young (18-34) Old (55+)Average annual household
spending for leisure travel/business travel
$4,089 / $5,468 $5,771 / $6,537
Used a travel agent in the past 12 months
58% 44%
Average percentage that uses a travel agent every time they book leisure travel.
12% 6%
Continue to use an agent to book airline tickets if charges a fee.
34% 17%
Continue to use an agent to book a cruise tickets if charged a fee.
33% 38%
Average percentage willing to pay a service fee.
51% 39%
![Page 16: 1 Bill Maloney, CTC Executive Vice President & COO ASTA Travel Intermediaries: Are Consumers Still Willing to Pay?](https://reader036.fdocuments.net/reader036/viewer/2022070407/56649e4c5503460f94b40c84/html5/thumbnails/16.jpg)
16
Gender as a VariableGender as a VariableGender as a VariableGender as a Variable
Men Women
Average annual household spending for leisure travel/business travel
$4,925 / $6,627 $4,779 / $5,909
Used a travel agent in the past 12 months
51% 44%
Average percentage that uses a travel agent every time they book leisure travel.
10% 8%
Continue to use an agent to book airline tickets if charges a fee.
23% 22%
Continue to use an agent to book a cruise tickets if charged a fee.
38% 32%
Average percentage willing to pay a service fee.
44% 43%
![Page 17: 1 Bill Maloney, CTC Executive Vice President & COO ASTA Travel Intermediaries: Are Consumers Still Willing to Pay?](https://reader036.fdocuments.net/reader036/viewer/2022070407/56649e4c5503460f94b40c84/html5/thumbnails/17.jpg)
17
Income as a VariableIncome as a VariableIncome as a VariableIncome as a Variable
Less Affluent ($75K or less)
Most Affluent($150K+)
Average annual household spending for leisure travel/business travel
$3,195 / $4,389 $8,345 / $10,561
Used a travel agent in the past 12 months
49% 49%
Average percentage that uses a travel agent every time they book leisure travel.
10% 8%
Continue to use an agent to book airline tickets if charges a fee.
28% 17%
Continue to use an agent to book a cruise tickets if charged a fee.
34% 32%
Average percentage willing to pay a service fee.
45% 40%
![Page 18: 1 Bill Maloney, CTC Executive Vice President & COO ASTA Travel Intermediaries: Are Consumers Still Willing to Pay?](https://reader036.fdocuments.net/reader036/viewer/2022070407/56649e4c5503460f94b40c84/html5/thumbnails/18.jpg)
18
Working on Your BehalfWorking on Your BehalfWorking on Your BehalfWorking 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!
![Page 19: 1 Bill Maloney, CTC Executive Vice President & COO ASTA Travel Intermediaries: Are Consumers Still Willing to Pay?](https://reader036.fdocuments.net/reader036/viewer/2022070407/56649e4c5503460f94b40c84/html5/thumbnails/19.jpg)
19
Getting InvolvedGetting InvolvedGetting InvolvedGetting 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!
![Page 20: 1 Bill Maloney, CTC Executive Vice President & COO ASTA Travel Intermediaries: Are Consumers Still Willing to Pay?](https://reader036.fdocuments.net/reader036/viewer/2022070407/56649e4c5503460f94b40c84/html5/thumbnails/20.jpg)
20
Thank YouThank YouThank YouThank 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.