By Johanna JainchillTraditional travel agencies' share of cruise sales is falling, from 68% in 2009 to a projected 64% by 2013, according to a PhoCusWright study.
The study, "Travel Agency Distribution Landscape 2009-2013," found that cruise lines' reduction in agent compensation (through the increase of non-commissionable fees, for example) is part of the reason for the decline. Also, a greater number of cruises are being sold by the cruise lines and online travel agencies, PhoCusWright said.
PhoCusWright found that cruise sales currently account for 40% of total sales for leisure agencies and home-based agents, but that agents are trying to diversify their product mix to depend less on cruises. This includes increasing focus on air, hotel and car, where corporate travel agencies dominate the market.
"After years of adapting their business models to reduce their reliance on air tickets and to focus instead on complex leisure (cruises and vacation packages), leisure agencies and home-based agents are now booking more individual air and hotel components," the study said.
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