2012 Supplier-Travel Agent Relationship Marketing Report


December 11, 2012
43 Pages - SKU: ASTA4927379
License type:
The Supplier–Travel Agent Relationship Marketing Reports assists travel agencies and suppliers in understanding and benchmarking typical agency-supplier business arrangements and preferred booking methods.


Additional Information

A strong relationship between suppliers and travel agencies is imperative if both sides want to increase sales. This report found that agencies that engage in a preferred supplier relationship often do so based on the supplier’s reputation and quality of their product. Satisfying their client base is the most important goal for a travel agency. Therefore, suppliers that provide communication, education, and quality products have a greater chance of increasing their business opportunities with travel agencies.

A recurring theme in the survey results is the desire of agencies to acquire useful information about products. In most cases, information is needed to determine the quality of the product as well as to help the agent sell the product to the client. Suppliers that provide the needed information in the best formats have an advantage.

Changes in booking methods by segments shows a movement to booking on supplier website, especially for segments where GDS booking is weak. Suppliers should be aware of these shifts and make sure popular booking methods are convenient for agents.

This 43-page report looks closely at why agencies chose preferred suppliers, what distribution channels agents use when booking, which incentives are preferred, and how agencies prefer to receive information about products.

A strong relationship between suppliers and travel agencies is imperative if both sides want to increase sales. This report found that agencies that engage in a preferred supplier relationship often do so based on the supplier’s reputation and quality of their product. Satisfying their client base is the most important goal for a travel agency. Therefore, suppliers that provide communication, education, and quality products have a greater chance of increasing their business opportunities with travel agencies.

A recurring theme in the survey results is the desire of agencies to acquire useful information about products. In most cases, information is needed to determine the quality of the product as well as to help the agent sell the product to the client. Suppliers that provide the needed information in the best formats have an advantage.

Changes in booking methods by segments shows a movement to booking on supplier website, especially for segments where GDS booking is weak. Suppliers should be aware of these shifts and make sure popular booking methods are convenient for agents.

This 43-page report looks closely at why agencies chose preferred suppliers, what distribution channels agents use when booking, which incentives are preferred, and how agencies prefer to receive information about products.
Introduction
Executive Summary
Reputation/Quality of Product Most Important Factor When Selecting a Preferred Supplier for Agency
Reputation/Quality of Product Consistently Ranks as Top Factor When Selecting a Preferred Supplier for Agency
Highest Percentage of Agencies Have a Preferred Supplier for Travel Insurance
At Point of Sale, Reputation is Most Important Factor Just Like When Choosing a Preferred Supplier
At Point of Sale, Reputation Remains Top Factor over Six Years of Tracking
Agents Most Likely to Use their Preferred Supplier for Travel Insurance – Least Likely for Direct Hotel
Percentage of Sales with Preferred Suppliers Has Been Increasing Slowly for Air
Most ASTA Members Belong to a Consortium and/or Franchise
Corporate Agencies More Likely Than Leisure to Belong to a Franchise
Percentage of Individual ASTA Agencies with Consortium Membership Slowly Declines
Number One Reason to Belong to a Consortium and/or a Franchise Is Commission Levels
Reasons for Joining Consortium and Franchise Similar Except for Split on Marketing and Roster of Preferred Suppliers
Percentage of Agencies Negotiating Directly Decreased Two Years in a Row
One-Third of Agencies Provide Front-Line Agents Incentives for Booking Preferred Suppliers
Marriott Has the Largest Percentage Share of Participation for the Incentive Programs Listed
Agency Incentive Programs Found to be “Moderately Effective” at Most Agencies
Majority of Agencies Make Using Preferred Suppliers a Directive for Employees
Largest Average Percentage of Bookings for Air Remains Through a GDS
Average Air Bookings Through OTAs and Other Websites Show Strong Growth Between 2006 and 2012
Largest Average Percentage of Bookings for Hotel Is Still Through a GDS
Bookings for Hotels through Hotel Websites Has Grown While Bookings Through GDS and 800# Have Decreased
The Largest Average Percentage of Bookings for Car Rental Remains Through a GDS
Website Bookings for Car Rental Are Growing while GDS and 800# Bookings Decline
Largest Average Percentage of Bookings for Cruise Is Through the Cruise Line 800# and Website
Website Bookings for Cruise Grows While Other Booking Methods Contract
Largest Average Percentage of Bookings for Tour Is Through the Tour Company 800# and Website
Tour Bookings through Tour Company Website Is Growing
Sales Share Broken Out By Leisure Agencies vs. Corporate Agencies Illustrates Differences in Product Mix
Primary Leisure and Business Travel Booking Methods Differ Due to Product Mix
Agencies Prefer Email for Special Offer Messages
Emails and Local Trade Shows Ranked Highest As Best Ways to Learn About New Suppliers
Agencies Prefer Receiving Education on Travel Products Online or at Conferences/Events
Most Agencies Attend 1-2 Trade Shows/Conferences Annually
Destination Number One Factor When Choosing a FAM to Attend
Most Agencies Find FAMs to Be Very Effective in Helping Them Sell a Destination
Appendix 1 – 2012 Research Family Demographics

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