Ask Mr. Foster Cites Terrorism, Fare Cuts : Big Travel Agency Lays Off 53

Citing declining air fares and travelers’ concerns about international terrorism, a large chain of travel agencies based in Van Nuys said it has laid off 53 employees nationwide and closed six of its offices over the last six months.

Twelve of the furloughed employees worked at the headquarters of Ask Mr. Foster, the nation’s second-largest travel agency chain. The company employs 2,300 and had sales last year of more than $880 million from 381 outlets.

Advance bookings for European vacations are down 50% this year from the level of a year ago, said Kelly Nelson, the company’s vice president for marketing. According to the American Society of Travel Agents, the dollar’s reduced buying power abroad and terrorist incidents have hurt the entire industry.

Nelson said that much of the decline is being offset by domestic travel but that the 10% drop in air fares over the last year also has cut revenue for travel agents, who receive commissions on ticket sales.