Industry Insights: Tour Operators are ‘Highly Confident’ About 2024

Recommend Standard Image TemplateTour Operators are ‘Highly Confident’ About 2024By Paloma Villaverde de RicoThis past December, during the USTOA Annual Conference & Marketplace press conference, we got the scoop on how 2023 shook out and what’s shaking for 2024 when it comes to the tour operator side of the industry. Says Dana Santucci, executive v.p., EF Education First, as well as the chairman of the USTOA executive committee, “Ninety-four [of USTOA active members] reported an increase in sales in 2023 [when compared to] 2022, which shows an extremely lucrative and positive year for our active members. Only 6 percent remained flat and zero reported a decrease. So, we’re very, very happy about that and we’re feeling lots of optimism.” In fact, nine of out 10 USTOA members reported growth in passengers when compared to 2022, with 73 percent of those saying passenger numbers grew 10 percent or higher. This brings us to 2024, with 92 percent of members anticipating growth in sales in this new year, and two-thirds saying they are forecasting “optimistic” to “significant growth,” anywhere from seven to 10 percent higher. Terry Dale, president and CEO of USTOA, notes, “Our tour operator members are very positive, if not enthusiastic about business growth in the coming year. That’s an encouraging sign showing us that all the post-pandemic built-up demand isn’t slowing down quite yet.” Though, “while optimistic,” comments Jeff Roy, executive v.p. of Collette and the USTOA executive committee’s treasurer, “I think we all acknowledge that there are factors outside of our control that could impact the growth of business next year.” USTOA members point to “economic uncertainty,” “cost of living increases” and “terrorism” as the top three potential threats to confidence in travel for 2024. Of course, they also pointed to political instability, continued war, the presidential election, natural disasters and crowded tourism destinations, among others. Travel Advisors Continue to Play a Significant Role in Generating SalesWhen USTOA members were asked if they plan to utilize travel advisors to generate sales in 2024, 88 percent said yes, and eight out of 10 members reported that travel advisors will play a very important role in their business next year. Nearly all members anticipate business booked through travel advisors to increase or remain the same in 2024. “When we asked this question last year,” says Roy, “that number was 89 percent. So, this significant bump only reinforces the important role [travel advisors] play.”2024 Travel Trends “I think this will be no surprise to anyone in terms of the top international destinations: Italy has been on the top of the list since we started asking this question,” says Pam Hoffee, president of Avalon Waterways and secretary of the USTOA executive committee. France took the second spot, moving up one spot from last year’s survey. The UK and Spain tied for third place, with the UK moving up from fourth and Spain moving up from seventh. “Interestingly,” adds Hoffee, “Europe swept the list of international destinations for USTOA members this year.” In terms of domestic destinations, California was the most popular, with Alaska and New York coming in second and third, respectively. When asked which products have the strongest passenger growth trajectory for 2024, small group tours topped the list. Dale states, “Our members have been reporting small group tours as an emerging trend since prior to the pandemic. This only reinforces its continued popularity.” Private groups ranked second, followed by FIT, classic group tours, river cruising, small ship cruising, solo travel and ocean cruising. Jerre Fuqua, president of Holiday Vacations and immediate past chairman of the USTOA executive committee, points to a new question that was asked this year: “What will have the strongest influence on consumers choosing a travel destination in 2024?” According to those who took the survey, it’s “value,” with Fuqua noting, “between the economy, the high interest rates and everything else around the cost of living, it’s not surprising that value [topped the list].” Of course, no surprise that AI (artificial intelligence) was discussed in the survey, with USTOA wanting to gauge what members thought about it and how they’re utilizing it. Says Fuqua, “More than 55 percent of members view AI as an opportunity for their business, while the remaining 45 percent said they’re not sure yet. The big takeaway, though, was nobody said that they viewed it as a threat or a harm.” Contact InformationUSTOA: ustoa.com

COVERHAL GATE 1HAL GATE 2 & 3HAL GATE 4Table of ContentsSANDALSSANDALS SPREADEditor's NotesAMERICAN CRUISE LINESAdvisor Speak: Passion for Cruises Led Her Here— A $3 Million Travel AgencyIndustry Insights: Tour Operators are ‘Highly Confident’ About 2024Cruise: Swanky SailingsCruise: Multimillion-dollar Revamp for Windstar Sailing YachtsATLAS OCEAN VOYAGES SCATLAS OCEAN VOYAGESPRINCESS CRUISES SCPRINCESS CRUISESSCENIC SCSCENIC LUXURY CRUISES & TOURSSEABOURN SCSEABOURNDISNEY SCAlaska Cruise Season—Booking Options for 2024 & 2025DISNEY CRUISE LINEHOLLAND AMERICA LINE SCRECOMMEND EDU HOUSE ADALASKA RAILROAD SC ADOnboard Review: Discovery Princess—10 Reasons to Book for an Alaska VoyageOnboard Review: Celebrity Ascent Offers Elevated Experience for TravelersOnboard Review: Norwegian Viva—Cruising in Comfort and StyleMexico/Caribbean: Elevating Romance Through LuxuryPALLADIUM HOTEL GROUP SPREADATLANTIS SCATLANTIS PARADISE ISLAND BAHAMASINCLUSIVE COLLECTION SCINCLUSIVE COLLECTIONSANDALS SCOnsite Review: Impression Isla Mujeres by SecretsOnsite Review: Grand Palladium Jamaica Resort & SpaOnsite Review: Sandals Dunn’s River—Sandals 2.0 Looks Mighty FineOnsite Review: 3 Melia Hotels & a Theme ParkPALLADIUM HOTEL GROUPCUNARD