I. CLIA-AS AN ASSOCIATION (Continued)

2.  NORTH AMERICAN ASSOCIATION OF TRAVEL AGENT AFFILIATES

In 2003 CLIA had approximately 16,000 Travel Agency affiliates. The recent reduction in affiliate membership is a reflection of the general consolidation and attrition in the travel agency business. The trend has particularly affected corporate travel and has been accelerated as a result of the airlines reducing / eliminating travel agency base commissions. This is resulting in more travel agencies shifting their focus to cruise and leisure sales and CLIA's membership now reflects an approximate 50/50 percentage of ARC/IATA agencies versus non-ARC/IATA agencies.

SOURCE: CLIA data -- year-end actuals.