1. 1 Bill Maloney, CTC Executive Vice President & COO ASTA Travel Intermediaries: Are Consumers Still Willing to Pay?

2. 2 New Struggles for Travel Agents Economic challenges Reduced availability of credit Difficulty meeting short-term obligations Disappearing commissions Consumers under siege

3. 3 Are Consumers Willing to Pay? U.S. travel agents are finding the answer is a resounding “YES!” YES!

4. 4 Is the Link Broken? 1988 Travel documents Information 2008 ?????

5. 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. 6 Survey Says … Younger and less affluent travelers ( $150,000 / 110,000 €). Data excerpted from chart on Travel Agent Usage

7. 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. 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. Young (18-34) Old (55+)MenWomen Less AffluentAffluent 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% 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%

9. 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. 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 Airline Tickets Fee Structure Paid when Booking a Cruise

11. 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. 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. 13 Survey Says … What’s acceptable? $15/11€ to $100/73€ Air travel = $20/14€ Cruises = $50/37€

14. 14 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.

15. 15 Age 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%

16. 16 Gender as a Variable MenWomen 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%

17. 17 Income 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% 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%

18. 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. 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. 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.