The internet has been a significant area of growth and vastly changed the travel distribution system in the past decade but the traditional agency segment remains significant and compelling, according to a new study.
PhoCusWright says agencies are deserving of careful study and consideration.
According to their report, US travel agents sold $110 billion in 2006, representing 41% of the total $266 billion travel market.
The report says agents sold $107 billion, or 38% of the market in 2007, and projects that agency sales will be one-third of the total market by 2009.
PhoCusWright says the number of travel agency locations and travel agents is large, fragmented and highly varied. It says there are approximately 24,000 travel agency locations in the US and a total travel agent population of 111,000.
According to PhoCusWright, the typical leisure agency today is focusing on more complex travel such as cruises, vacation packages and independent itineraries, where commissions are still relatively high and more experience and expertise is needed.
But it also says that changes in the travel market have created opportunities for new travel agency models such as home-based agents, cruise-only agents and agents focused on adventure, family, or honeymoons and weddings.
Report by David Wilkening
