USTOA 2024 Study: Political Instability Overtakes Financial Concerns as Top Risk
by Sarah Milner
United States Tour Operators Association (USTOA) members have shifted their concerns from financial uncertainty to political instability.
The USTOA 2024 Economic Impact Study results were revealed at the association’s annual conference, held from Dec. 9 to 13 at the JW Marriott Marco Island Beach Resort in Marco Island, Florida.
The study was conducted by PriceWaterhouseCoopers LLP (PwC). It examines the U.S. tour operator industry’s economic impact, challenges, and opportunities. In total, 96% of active members participated.
The study revealed that political turmoil is now the number one global risk worrying members, supplanting financial concerns.
When asked “To what extent are you concerned about each of the following global risks and their potential impact on your growth prospects in the next three years?” 58% of participants said they were very or extremely concerned about disruptive geopolitical conflicts. Only 2% of respondents said they were not at all concerned.
Similarly, 56% of members said they were either very or extremely concerned about general political instability.
In the 2022 study, the top global risks causing USTOA members concern were cost of living increases/inflation (67%), global financial instability (59%) and staffing shortages (59%).
Notably, all three have dropped. In the 2024 study, cost of living increases (44%) and global financial instability (40%) are fourth and fifth respectively, while staffing shortages (25%) decreased by 34%, ranking eighth.
The Tour Operator Industry: An Optimistic Outlook
Overall, the USTOA 2024 Economic Impact Study presented an optimistic view of the tour operator industry. The findings project that USTOA members will finish the year with a collective $24.4 billion dollars in packages sold, representing 8.4 million individual travelers.
Looking ahead, 96% of members surveyed predict some growth in 2025, while almost half (46%) predict significant sales growth by 10% or more.
“By the close of 2024, USTOA tour operator members are projecting a more than 8% increase in sales from 2023, with a promising outlook for the year ahead,” said Terry Dale, president and CEO of USTOA. “As we approach 2025, the mood is undeniably optimistic, with three-fourths (73%) of our tour operators anticipating optimistic to significant sales growth of 7% to 10% or more next year.”
