In 2007 PhoCusWright undertook a comprehensive study of the travel agency marketplace in the U.S. "The purpose was to acquire a rich and complete picture of the total market size and opportunity, as well to identify key trends and dynamics shaping this important distribution channel", said Lorraine Sileo, Vice President,  Research at PhoCusWright.

Sporting a prestigious group of industry sponsors, the Report takes on tough distribution issues with great clarity. That's no surprise to those of us who have observed the research firm's stellar tracking of online travel since 1998.

In succeeding issues of Lux 360 we will report our observations on PhoCusWright Findings
in this space, and probe as deeply via interviews as sponsors of this  private study may permit.
For now, here are just a few highlights gleaned from the Report:

• Travel agents represented  41% , OR $110 billion, of the $266  billion  U.S. market in 2006,  and 38% ($107 billion) of total  market in 2007. These numbers exclude another $40 billion of sales by online  agencies, which certainly helps to analyze the data.
• There are approximately 24,000 agency locations, but the largest 65  agencies represent almost half of all travel agency bookings.
• Air represented almost two thirds of all travel agency bookings, but it is  declining as leisure travelers book direct and agents pursue higher-margin  complex leisure products
• The complex leisure segment--packaged travel and cruise-relies on agents  for the majority of sales: 73% and 77%, respectively, in 2006

We will continue our review of this vital study in next week's issue of Luxury Travel 360 newsletter. And....need we say it? If you have not already subscribed, do so NOW.

Hershel Sarbin