USTOA Survey Finds Tour Operators Optimistic for 2016
The U.S. Tour Operators Association (USTOA), at its Annual Conference and Marketplace in Chicago, Dec. 3-5, released its annual travel trends survey of active tour operator members, reflecting a positive outlook for the industry in 2016.
The survey, which was taken before the terrorist attacks in Paris, showed that 90% of USTOA tour operator members are forecasting growth in sales for next year, with 57% saying they are “optimistic” and forecasting a “boom year,” with growth 7% to 10% or higher than this year. Despite their optimism for 2016, however, USTOA members cited terrorism as the biggest threat to U.S. traveler confidence next year, followed by global financial instability and political instability, with the upcoming U.S. presidential election.
For the current year, three-quarters of members reported an increase in sales over 2014, with 40% of those reporting an increase of 10% or higher. Seventy percent of members also saw an increase in customers in 2015; 60% saw numbers grow between 4% and 9%, while 36% recorded growth of 10% or higher.
Even more importantly for travel agents, 87% of USTOA members surveyed said agents have actively sold their products in 2015. More than half (55%) of USTOA member bookings in 2015 were made through a travel agency. Looking to next year, 91% of members anticipate that business booked through travel agents will remain the same or will increase in 2016.
“The tour operator members of USTOA are showing strong growth for this year, with more than a third (39%) attributing growth to an improved economy and higher consumer confidence,” said USTOA President and CEO Terry Dale. “It’s also encouraging that a majority…are optimistic about continued growth in sales in the coming year, while nearly half plan to increase staff.” Indeed, just over half (53%) of USTOA members said they increased staffing levels in 2015 and just under half (47%) plan to increase staffing in 2016.
For the fourth consecutive year, Italy was named as the most popular international destination for travelers in 2016, according to the USTOA member survey. The United Kingdom, China, France and South Africa (tied for third), Peru, and India made up the other top international destinations. Domestically, USTOA members report that New York and California (tied for first), Arizona and Hawaii (tied for second), Nevada, Florida, and Washington, D.C. (tied for fourth), and Alaska are the most popular U.S. destinations for 2016.
In terms of “emerging” or “off-the-beaten path” destinations for 2016, USTOA tour operator members cited Cuba, Myanmar, Iceland, Colombia, and Ethiopia and Japan (tied for fifth). “With Cuba making headlines this year, it’s no surprise that it took the first spot in the list of emerging destinations,” said Dale. “About 34% of our members currently offer programs to Cuba, and of that number, more than half plan to increase offerings within the next few years.”
USTOA tour operator members also named art and culture, honeymoon and romance, and family as the most popular travel categories for customers. Members also reported that 55% of their customers are Baby Boomers and 23% are Gen Xers. Roughly half (53%) of members also saw growth in the number of solo passengers in 2015.
On average, 55% of members reported that consumers are booking international travel packages between six and 12 months in advance, while 56% said consumers are booking domestic travel packages six months or less prior to departure.
Pic: Josh Hallett
