For the travel industry, 2009 marked a year of staff reductions, cutbacks on compensation, and a decrease in total sales. Let’s turn the page to 2010 where we find a different story. For the industry, 2010 outdid the previous year in almost every financial category. There is some debate on whether the financial rebound was really just the 2009 cutbacks finally showing up or if the industry has “modernized” itself.

Either way, there are many reasons to put your faith back in the industry that has treated its clients so well in the past. The travel industry has gone online and home-based; for the agents that have adapted, this has rewarded them greatly.

Agency revenues increased from 2009 to 2010. The biggest profit increase was with the top tier agencies ($79M or more in sales per year). Smallest tier agencies ($3M or less in sales per year) recorded an increase in profit of 46%. Bottom-line revenues were up from the 2009 levels across all agencies. The smallest tier agencies recorded an revenue increase of 6%, while the largest tier agencies recorded an increase of 11%.

Agency owner revenues, or bottom-line profit, increased overall from 2009 to 2010. The largest increase in profit came from the smallest tier agencies at 23%. The average increase in owner profits from all agencies was 15%.

**PBOT: profit before owner takeout

There is little argument that in 2010, travel agents and the industry took the steps needed to adjust to the economic challenge. Even more impressive, travel agents adjusted their business model to adapt with the ever-changing virtual world. Overall, the industry has shown great resilience. Agency personnel, revenue, and profits have all increased from 2009 to 2010. Here’s to hoping this trend continues in the years to come!

Source:
Joselyn, R. (2011, April 6). By the numbers. Travel Research Online. Retrieved from http://www.travelresearchonline.com/blog/

Filed under: Travel Industry News, Uncategorized