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Emma WeissmannManaging Editor

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Travel Agencies Are Lagging Behind Other Industries in COVID-19 Recovery

May 18, 2021
ASTA Leg Day _HERO
Despite much of the country opening back up, travel agencies are still struggling from the fallout of COVID-19.
Credit: 2021 Lightfield Studios/stock.adobe.com

What: Travel Advisors Gather for ASTA’s Legislative Day to Ask Lawmakers for Assistance

From May 18-19, some 200 travel advisors from 40 states across the U.S. gathered in Washington, D.C., for the American Society of Travel Advisors’ (ASTA) annual Legislative Day. The event was an opportunity for travel advisors to petition lawmakers on critical issues surrounding their profession. And this year, their message to lawmakers was crystal clear: Travel agencies are not like traditional businesses, and if they are expected to survive and emerge from this crisis, more aid is needed — immediately.

Our elected officials have a moral obligation to support travel-reliant businesses until those it has charged with public lift the warnings and regulations barring travel.

Why It Matters: Travel Agencies’ Recovery Remains Uneven

Although the travel industry is seeing some green shoots thanks to higher COVID-19 vaccination rates, the loosening of certain health guidelines and the opening up of some industries, recovery for travel companies remains “frustratingly uneven,” according to remarks made by Zane Kerby, president and CEO of ASTA, during a press conference and panel on May 18. What’s more, the nature of a travel agency’s traditional commission model is such that advisors may not see a payout for eight months after booking patterns fully resume — placing travel agencies further behind other industries that are just starting to emerge from the grips of the pandemic. Travel industry professionals should continue contacting Congress to push for swift, consistent aid. 

Fast Facts

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- ASTA reports that there are some 160,000 travel advisors across the U.S., the majority of which are female-run, with 98% categorized as small businesses.

- ASTA’s 2021 Legislative Day saw a record turnout of attendees, despite accounting for limited capacity rules.

- In 2020, travel agencies averaged a dip of 82% in revenue, and 62% of travel advisors were either laid off or furloughed. Prior to the pandemic, advisors had experienced five consecutive years of record sales and profits; 2019 broke records with $116.8 billion of travel sold, including 44% of all airline tickets (830,000 tickets per day), 66% of cruises and 31% of hotel bookings.

- Now, demand for travel is high; 89% of travelers say they are ready to travel by the end of the year, and 44% of consumers — a record number — plan to work with a travel advisor for a post-pandemic trip.

- However, several obstacles remain, including “red warning tape” on international destinations from the Centers for Disease Control & Prevention (CDC); the upholding of the current Conditional Sailing Order (which has banned cruise ships from sailing from the U.S. for the past 15 months); international testing requirements to fly; inconsistent rules across states; and restrictions on international travel.

- Other priorities during Legislative Day include pushing for travel agency inclusion in the SAVE Act; inquiring about other potential forms of financial relief (such as the Paycheck Protection Program); pushing for a tax credit for travelers looking to take a trip this year; and advocating for a resumption of cruising in Alaska.

RELATED: With Travel Agencies in Danger, ASTA Makes Aggressive Push for Government Support

What They Are Saying: The Government Must Do More to Support Travel Businesses

“For our members, for just a few days last spring, the pandemic washed out months of planning and counseling with customers and industry suppliers — and with it, the commissions that our members rely on to feed their families,” Kerby said during the May 18 panel. “Our members are largely in the same place this spring as they were last spring.”

“The reason our members are gathered here in Washington is simple: Our government’s response to the pandemic was to discourage, and in some cases even outlaw travel,” he said. “Our elected officials have a moral obligation to support travel-reliant businesses until those it has charged with public health — the CDC and State Department — lift the warnings and regulations barring travel.”

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