According to a recent survey of National Tour Association (NTA) tour operators, a majority are seeing a boost in business this year and expect further growth in 2025, despite significant challenges in working with their supplier partners.
The survey found that 58% of tour operators said their company will finish 2024 with sales that are better or much better than last year. Looking ahead to 2025, over half (54%) said their company is poised to perform better than in 2024.
However, tour operators cited numerous challenges in building multiday itineraries, leading many to change the price, timing, components, and even the existence of some tours they offer. The most significant hurdle is sharply rising supplier costs, with double-digit price increases reported for hotels, restaurants, motorcoaches and air travel.
"This is why pricing is the No. 1 challenge for operators," said Catherine Prather, president of NTA. "Before COVID-19, a normal year-over-year increase for supplier rates was 5%, and now, four years past COVID, tour operators are experiencing rate increases more than double that figure, and, in some categories, even close to tripling it.
In response, the majority of operators (88%) said they have increased the price of their tours, while nearly half (48%) changed the timing of tours to get better rates or terms. Sixty-five percent said they have changed suppliers in a destination due to high rates and unfavorable terms, 47% switched to a different destination, and 44% dropped a tour altogether.
Staffing challenges also persist, with 47% of operators reporting current staffing levels at or above 2019 levels, and another 30% operating with 75-99% of their pre-pandemic workforce.
This article was generated by AI and based on a press release distributed by the National Tour Association. It was reviewed by a TravelAge West editor.
