Friday, 18 September 2020

Monthly US Travel Agency Air Ticket Sales Nearly Double in August

         


                                   Airlines Reporting Corp. (ARC) today released data showing that net sales from ARC-accredited travel agencies nearly doubled month over month, increasing 94% from $387 million in July to $751 million in August 2020.* These results represent a 90% decrease in total dollar volume from August 2019, when sales totalled $7.8 billion.

Month over month, August 2020 results show:

A 19% increase in the total number of passenger trips;
U.S. domestic trips up 22%; and
International trips up 10%.

While passenger trips are steadily increasing, the sharp increase in August net sales is largely attributable to a few factors, including an increase in international fares paid, which rose from $18 million in July to $169 million in August, slowing refunds and accelerating travel agency sales.

“ARC is continuing to see gradual improvements in air travel demand over the past month. In addition to passenger trip growth, we are also seeing dramatic improvements in month-over-month net sales for both cash and credit forms of payment, especially for international fares,” said Chuck Thackston, ARC’s managing director of data science. “It’s important to note, however, that this reflects a calming of the high volume of refund transactions that were seen in the early summer.

“Given airlines’ recent announcements to remove change fees, as well as their efforts to stimulate demand through enhanced safety measures, we will continue to closely monitor these improving trends in travel demand,” Thackston added.

The total number of passenger trips settled by ARC in August was down 76% year over year for August, from 24,817,409 to 6,065,463. U.S. domestic trips decreased 72% YOY to 4.4 million, while international trips numbered 1.6 million, an 82% decrease YOY. The average U.S. round-trip ticket price decreased from $483 in August 2019 to $321 in August 2020.

Electronic Miscellaneous Document (EMD)** sales decreased YOY by 73% to $1,822,500, while EMD transactions decreased by 70% YOY in August, totalling 35,508.







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