USTOA tour operator member survey unveils positive 2024 travel forecast

Friday, December 8, 2023

Today, the United States Tour Operators Association (USTOA) unveiled the results of its annual travel trends and forecast for Active tour operator members, signaling a positive outlook for the industry in the upcoming year.

As revealed at the 2023 USTOA Annual Conference and Marketplace in Los Angeles from December 2-6, an overwhelming majority of members, specifically nine out of ten (92%), foresee sales growth in 2024. Among them, two-thirds (63%) express optimism, anticipating a “boom year” with growth ranging from 7% to 10% and beyond. Similarly, 90% of members anticipate an increase in passengers next year, with 63% of them optimistic about a “boom year” featuring passenger growth from 7% to 10% and higher.

Terry Dale, USTOA’s President and CEO, remarked, “Our tour operator members are highly positive, if not enthusiastic, about business growth in the coming year, with 86% expressing high confidence that guest bookings will surge in 2024. This is an encouraging sign, indicating that the pent-up demand post-pandemic is still going strong.”

Reflecting on the current year, USTOA’s tour operators experienced robust growth in 2023, with 94% reporting an increase in sales and 94% showing growth in passengers. Regarding staffing, 86% of members increased their staffing levels in 2023, and looking ahead to 2024, 63% plan to further increase staffing levels.

Travel advisors continue to play a crucial role in USTOA members’ businesses, with 88% planning to utilize them to generate sales in 2024. Additionally, 80% of USTOA tour operator members acknowledge the significant role travel advisors will play in their business in 2024, and 98% anticipate an increase or maintenance of business booked through travel advisors in 2024.

While expressing optimism for the upcoming year, USTOA members also highlighted potential threats to travel confidence in 2024, including economic uncertainty, the cost of living, and terrorism. Italy was named the most popular international destination for 2024, and California claimed the top spot for domestic destinations.

When it comes to travel trends, small group tours are expected to have the strongest passenger growth trajectory in 2024, followed by private groups, FIT, classic group tours, river cruising, small ship cruising, solo travel, and ocean cruising. Value was identified as the most influential factor for consumers choosing destinations in 2024, reflecting the concerns about economic uncertainty.

Artificial intelligence (AI) remains a growing topic in the travel and tour industry, with 55% of USTOA tour operator members viewing it as an opportunity for their business. Currently, 28% are using AI in their business practices, primarily for marketing and social media, with an additional 39% planning to implement it in the future.

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