USTOA’s 2023 Member Survey Reveals ‘Positive Outlook’ for Year Ahead

The United States Tour Operators Association (USTOA)’s annual survey of its active members revealed that tour operators predict both sales and passenger growth in the next year. 

About 92% of tour operators responded that they anticipate sales to grow in 2024, and 90% of tour operators expect an increase in passengers, according to the survey results announced at the USTOA Conference held Dec. 2 to 6 in Los Angeles. 

“Our tour operator members are very positive, if not enthusiastic about business growth in the coming year with 86% highly confident to confident that guest bookings will increase in 2024,” said Terry Dale, president and CEO of USTOA. “That’s an encouraging sign showing us that all the post-pandemic built-up demand isn’t slowing down quite yet.” 

Tour operators also reported a healthy 2023: 94% said sales grew in 2023, and 6% said sales remained flat from 2022. Additionally, 94% saw a growth in passengers, with 73% reporting that their passenger numbers grew by 10% or more. 

The most popular international tour destinations of the year were Italy, France, the U.K, and Spain, and the most popular domestic tour destinations were California, Alaska, and New York. 

Looking ahead, 88% of tour operators said they plan to use travel advisors to generate sales in 2024. About eight in 10 reported that travel advisors play an important or very important role in their business, and 98% anticipated their business through advisors would either increase or remain the same in the new year. 

Tour operators predict that small group tours will generate the most growth in 2024, followed by private tours and FIT. 

“Our members have been reporting small group tours as an emerging trend since prior to the pandemic,” Dale said. “This only reinforces its continued popularity.”   

The survey also asked tour operators about their staffing. In 2023, 86% of tour operator members increased their staffing levels, while 12% maintained the same number of staff and 2% cut back. In 2024, 63% plan to increase their staff, while about 35% said they’ll maintain the same staffing levels. 

Though the USTOA reports an overall positive outlook, the survey also addressed tour operators’ perspective on potential threats to travel confidence in the new year. Tour operators view economic uncertainty, the cost of living, and terrorism as the top three risks to the industry. 

“Given recent world events, it is not surprising that financial considerations and terrorism top the list of global concerns for our tour operator members,” Dale said. 

When asked what the strongest driving force will be behind where guests book tours in 2024, the answer was simple: value. 

“This certainly complements the leading threat of economic uncertainty our members identified, as clearly, consumers are going to be paying stronger attention to value as it relates to any large purchase including travel,” Dale said. 

The survey also asked members about their sustainability practices and use of AI. About 55% of members have a formal, documented sustainability strategy, while 39% have an informal one. 

About 55% of tour operator members see AI as a business opportunity, while 45% are unsure yet. About 28% are currently using AI in their business, with most using it for social media and marketing. 

Dale announced the survey results alongside the USTOA’s new executive committee for 2024: Chairman Dana Santucci, executive vice president of EF Education First; Vice Chairman Madhvi Buch, global head of business solutions of The Travel Corporation USA; Treasurer Jeff Roy, executive vice president of Collette; Secretary Pam Hoffee, president of Avalon Waterways; and Jerre Fuqua, president of Holiday Vacations, the immediate past chairman.