TPI Releases Mid-Year Results, Sees Bump In New Year
Travel Professionals International (TPI) has released the 6-month results of its fiscal year-to-date, for the period 1AUG 2016 to 31JAN 2017.
“The marketplace has been relatively flat until mid-December 2016, however January and February 2017 showed strength with positive growth rates,” said Morris Chia, TPI President & CEO.
TPI reports that both travelled sales and commissions for the period were down single digit percentage points when compared to same period during the previous year. However, December 2016 saw the beginning of a nationwide rebound that has continued in the first two months of 2017
TPI breaks its results in to 3 geographic regions – Western Canada, Ontario, and Atlantic Canada. Regionally, Atlantic Canada posted the strongest results, followed by Ontario and Western Canada.
The company says Western Canada trailed “mainly due to continuing economic issues and insurance licensing regulations in Alberta and Saskatchewan that are impacting all retail travel distribution companies.”
While travel sales and travel commissions are both down YTD but with a rebound in JAN & FEB, TPI says commissions continue to show a stronger position than sales, meaning margins are increasing and more money is being put in to travel advisors’ pockets compared to overall sales volumes.
“This is mainly due to an increase in TPI’s at-source commission rates, travel advisors charging their clients appropriate service fees for their valuable services, and travel advisors selling higher margin product such as what is provided through our Virtuoso membership,” Chia says.
The destinations with the highest total sales booked for the time period were, in order, Caribbean, Mexico, and the USA. The destinations with the highest year-over-year growth in total sales booked for the time period were Oceania, Europe, and Asia.
The travel product categories with the highest total sales for the time period were, in order, ITC, Air, and Cruise. The travel product categories with the highest year-over-year growth in booked sales for the time period were, in order, Cruise, Rail, and Air.
“We’re very pleased to see continued strength in margins,” said Chia, “as this is the main driver of efficiency and profitability for our travel advisors across Canada. They’re putting more money in their pockets for less work.”