Things are looking up for the travel industry next year according to the United States Tour Operators Association’s (USTOA) annual findings of travel trends. The organization is predicting steady business performance and an optimistic outlook despite economic headwinds, geopolitical volatility and shifting travel behaviors. Travel advisors are specifically poised to remain significant to tour operator strategies next year.
The organization reported that 90% of members plan to utilize travel advisors in 2026, and 78% say the role of advisors will be very important to their business strategy next year. The majority (94%) of members surveyed expect business booked through advisors to increase or hold steady, underscoring the continued value of the advisor community.
Additionally, 68% of tour operators reported a growth in sales in 2025 compared to 2024, and 16% experienced declines due to economic and political uncertainty, inflation and hesitancy from safety concerns.
Passenger trends also aligned closely. More than half (58%) of members reported an increase in travelers this year, with just over half citing growth of 10% or more. An additional 22% said passenger numbers were flat year-over-year, while 20% saw declines.
An Optimistic Outlook
Looking ahead, the mood is notably optimistic: 78% of members are confident that guest bookings will increase in 2026, 88% anticipate sales growth and 84% anticipate passenger growth.
That optimism comes with caution as economic uncertainty, including global financial volatility and fluctuations in the dollar, is marked as the biggest threat to travel confidence in 2026, followed by cost of living and political instability.
Geopolitical conflicts and a drop in demand for international travel rounded out the top worries, with 71% of tour operators reporting increased hesitancy from consumers committing to travel, 63% noting shorter booking windows and 39% experiencing more last-minute cancellations or changes.
On the destinations front, Italy holds its position as the top international market for 2026, and domestically, travelers are gravitating toward Hawaii, U.S. National Parks, Alaska, California and New York.
The report also shows that artificial intelligence is becoming increasingly useful as 80% of USTOA tour operator members now use AI in some capacity, up from 28% two years ago. Responsible travel is another key focus, with nearly two thirds of respondents having a formal sustainability strategy in place.
“In today’s unpredictable global climate, our members continue to demonstrate remarkable resilience,” said Terry Dale, president and CEO of USTOA. “The impact of ongoing instability was felt, yet the majority of our membership still reported growth amid uncertainty and higher operating costs, which stands out. Travelers remain motivated to explore, and our tour operators are positioned to guide them with the expertise, trust, insight and security that elevate the way they experience the world.”