Travel agencies’ revenues are estimated to plunge roughly 50% in 2002

Revenues netted by travel agencies will be down between a 33 and 50 percent in 2002 compared to the year before, said Jesus Martinez Millan, chairman of the Travel Agency Associated Management. Mr. Millan explained that despite the fact that this year’s earnings and numbers of passengers haven’t dipped, gains will be down because the market has been “held back and sluggish,” as well as conditioned by last-minute offers.

“Sales have been rampant on the basis of offers, something that renders in absolute benefits,” Mr. Millan pointed out. Commission cutbacks implemented by Iberia are elements that have also thrown their weight around benefits curtailment.

In this respect, Mr. Millan commented that even though the company “compensated this reduction with a variable incentive plan,” only a handful of companies will manage to reach the necessary quotas to have access to that plan.

“2002 is a transit year in which we’ve lived out the crisis triggered by the 9/11 aftermath and a slowing economy, even though we’ve worked somewhat better than what we would have thought a year ago,” Mr. Millan concluded.