Every year, the U.S. Tour Operators Association (USTOA) shares the results of its member survey during its annual USTOA Conference & Marketplace. The report provides a glimpse into the state of the travel industry, traveler concerns going forward and the level of optimism among tour operator members.
This year, 94% of active USTOA members participated in the survey. Here are some of the results.
Post-Pandemic Travel Demand Isn’t Slowing Down
Nearly all respondents (94%) report an increase in sales in 2023 — with 78% of members saying that business increased by more than 10%, indicating a boom year. In addition, 94% saw a growth in overall passengers in 2023, and nearly three-quarters (73%) say passenger numbers grew by 10% or more.
Looking ahead to next year, 86% of members are “highly confident” or “confident” that bookings will continue to increase. More than nine of 10 respondents (92%) anticipate growth in sales volume, and about two-thirds (63%) expect “significant” growth of 7-10% or higher. A similar number (90%) anticipate a growth in passengers in 2024, with 63% expecting significant growth.
“Our tour operator members are very positive, if not enthusiastic, about business growth in the coming year,” said Terry Dale, president and CEO of USTOA. “That’s an encouraging sign, showing us that all the post-pandemic, built-up demand isn’t slowing down quite yet.”
Our tour operator members are very positive, if not enthusiastic, about business growth in the coming year.
So, What’s the Concern?
This year, members listed the top three areas of concern as economic uncertainty, cost of living increases and terrorism. This is a change from previous years, which were, not surprisingly, much more focused on health and safety issues — this year, health concerns dropped from No. 2 in 2023 to No. 6 out of 10.
When it comes to staffing, 86% of respondents say they increased staffing levels in 2023, and two-thirds (63%) plan to increase headcount in 2024. In the 2022 member survey, staffing shortages was No. 3 on the list of concerns; this year, it drops down to No. 9.
Travel Advisors Will Be Seeing More Business
Nearly all respondents (98%) expect business booked by advisors to increase or remain the same next year. Most members (88%) plan to utilize advisors to generate sales in 2024, with 80% saying advisors will play a “very important” or “important” role in their business.
“Last year, when we asked members if they expected business from advisors to stay the same or increase, that number was 89%,” said Jeff Roy, executive vice president of Collette and a member of the USTOA Executive Committee. “So that’s a significant bump to 98% this year. I think it also follows what we’ve heard anecdotally — that there are a lot of new advisors in the industry, and we would expect those advisors to continue to have more influence in the future.”
I think it also follows what we’ve heard anecdotally — that there are a lot of new advisors in the industry, and we would expect those advisors to continue to have more influence in the future.
Other Travel Trends to Watch
According to USTOA members, the top international destinations in 2024 are all in Europe (in order): Italy and France take the two top spots, followed by a tie between the United Kingdom and Spain. The top domestic destinations are California, Alaska and New York.
The travel types showing the strongest growth are small-group tours, private groups and FIT travel.
“Small-group trips was an emerging trend before the pandemic,” said Pam Hoffee, president of Avalon Waterways and member of USTOA’s Executive Committee. “So, it’s not surprising to see it make this list post-pandemic.”
Some of the factors that will influence consumers’ decisions in 2024 are: value, experiences offered, marketing awareness, distance/ease of travel, sustainable tourism practices and potential overcrowding.
“Given the concerns about economic uncertainty and the cost of living, it’s not surprising to see value top of the list of factors that might influence consumers,” said Jerre Fuqua, president of Holiday Vacations and Executive Committee member. “People want to get the most for their spend.”
Given the concerns about economic uncertainty and the cost of living, it’s not surprising to see value top of the list of factors that might influence consumers.
Sustainability Continues to Be a Focus
The USTOA community continues to show a strong interest in sustainability. In 2023, the association hired its first global social impact manager; established a Sustainability Community; and introduced a sustainability policy and responsible travel promise for its members. In addition, the association continues to honor individual leaders in sustainability and diversity, equity and inclusion (DEI) practices with its Future Lights awards program. USTOA will also continue to hold its Sustainability Is Responsibility (SIR) programs in 2024 — the SIR Summit will be held in Singapore this year (May 18-21).
“Last year, we celebrated our 50th anniversary, and out of the many conversations we had at the time came the question of what the USTOA should look like in the next 50 years,” Dale said. “As a result, we created our sustainability policy. I’ve never seen a group of leaders so committed to a goal as I’ve seen from our board. It makes me proud.”
In the survey, more than half (55%) of USTOA members say they have a formal sustainability strategy, and nearly 40% say they have an informal policy. Less than 10%, say they have no strategy. The top reason for adopting a sustainability policy is “corporate values and culture,” indicating that responsible travel has become a core part of most operators’ culture.
I think as an association, we’re having a moment.
Roughly half of respondents (45%) currently use sustainability messaging in marketing, and another 37% plan to incorporate sustainability messaging in 2024. When it comes to DEI initiatives, 39% currently use their policies in marketing, and 18% plan to add it to their marketing in 2024.
“I think as an association, we’re having a moment,” said Dana Santucci, executive vice president of EF Education First and chairman of the USTOA Executive Committee. “Sustainability has a lot of momentum. And I think the collaboration you see on this topic within the association is something that makes USTOA unique. We’re all working together on solutions for the planet and the future. Even though we’re competitors, this is an area where we work together.”
