The United States Tour Operators Association (USTOA) held its annual conference and marketplace in Los Angeles at the JW Marriott L.A. Live.
The event, which took place from December 2-6, 2023, was well attended with a sold-out crowd and standing-room-only during the "Art of the Opening" and "Terry Talks" general sessions.
In addition to many chances for tour operators to network and meet with destination representatives and DMCs, members were presented with a state of the industry assessment from USTOA President and CEO Terry Dale and chairwoman Dana Santucci.
The report details how the tour business is in line with much of the rest of the travel industry—it's booming.
Ninety-four percent of USTOA members reported that they saw an increase in sales in 2023. Six percent of members said their sales were flat and none reported a decline.
In addition, 78 percent of members said that they saw sales increase 10 percent or higher. Fifteen percent saw an increase between 4-6 percent and 7 percent said that they saw an increase of between 7 and 9 percent.
Passenger levels also increased 94 percent and 73 percent of the 94 percent said that passenger numbers increased more than 10 percent.
Bookings are on an upward trend. (Photo Credit: USTOA)
The forecast for the coming year is equally positive with 86 percent “highly confident to confident” that guest bookings will increase in 2024. Ninety-two percent are anticipating a growth in sales volume and, of those, two-thirds expect growth between 7 and 10 percent or higher.
While the outlook for travel in 2024 is positive, there are still concerns that things could go awry. The top three: economic uncertainty, cost of living increases leading to less discretionary spending and terrorism. Other concerns include political instability, continued war in Europe, pandemics/health crises, presidential elections, natural disasters and overtourism.
Now Hiring
As sales grow, so are staffing levels.
Two-thirds (63 percent) of active USTOA members plan to increase their staff in the coming year. More than half (59 percent) plan to increase their headcount by between 1-10 positions, 27 percent plan to grow by 11-25 positions and 7 percent plan to grow by 26-50 positions. Additionally, 7 percent plan to increase their staff by 51-100 positions.
The Impact of Travel Advisors
Travel advisors are more popular than ever with both tour operators and travelers. According to USTOA's most recent survey, 88 percent of members are planning to work with advisors to generate sales in 2024 with 80 percent indicating that travel advisors will play a very important/important role in their businesses in the coming year.
Next year, 98 percent of tour operators expect that business booked by travel advisors will increase or remain the same.
Travelers continue to head to Europe. (Photo Credit: USTOA)
2024 Travel Trends
Europe remains the number-one travel destination for tour operators. The top three destinations include Italy, France and the U.K. & Spain (tied).
In the U.S., the top three destinations are California, Alaska and New York.
For tour operators, the products they expect to see grow the most are small group tours, private groups and FIT with consumer choices primarily driven by value. Consumers are also weighing their travel options based on the experiences offered, marketing awareness, ease of travel to and from a destination, sustainable practices and the potential for overcrowding.
AI and Sustainability
Two topics that were discussed in multiple forums during the USTOA conference were AI and sustainability.
More than half of members (55 percent) view AI as an opportunity with many members already using AI in their businesses (28 percent). More than one-third (39 percent) don't use AI but plan to.
USTOA is making further inroads in its investment in a sustainable future for travel hiring its first global social impact manager, establishing a sustainability committee and introducing sustainable policy and a USTOA member responsibility promise.
USTOA honored its next generation of sustainability leaders with the Future Lights Awards. This year's recipients were Julie Higgins of Uniworld Boutique River Cruises and Mikey Sadowski of Intrepid Travel.
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