USTOA Sees Boost for International, Domestic Travel for 2010
Just how is travel shaping up for 2010, according to major tour operators? An informal member survey by the U.S. Tour Operators Association, which is holding its annual conference and marketplace in Banff, Canada, this week, found that more than 75 percent of respondents anticipate sales to rise by an average 18 percent in international packaged travel next year.
A little more than 56 percent said they foresee average growth of 10 percent in domestic packaged travel. While more than 35 percent said they believe domestic travel sales will remain on par with 2009, only 7 percent said they expect a decline.
This year’s survey results are in sharp contrast to responses from USTOA tour operators at this time last year, when more than 70 percent said they expected sales to either plateau or decline in 2009 a prediction that proved accurate throughout most of the year. Some 75 percent of respondents said they are more likely to lower their prices in the year ahead by an average 5 percent, while the remaining 25 percent said their 2010 prices would increase slightly, about 6 percent.
Shorter, closer-to-home vacations are predicted to fall in 2010, according to three-quarters of survey respondents. But 25 percent of those responding said they believe the trend could continue to rise slightly next year.
More than 65 percent of USTOA respondents said they are planning to increase their 2010 offerings, adding new destinations and hotels, plus more experiential travel based around specific consumer interests. Eighty percent of respondents see the amount of discretionary income as the major factor affecting international travel in 2010, with another 20 percent saying the value of the dollar will be a determining factor.
Several major tour operators predicted that travelers will continue to make cost-conscious decisions such as traveling to countries less affected by dollar declines, adapting their vacations by choosing less expensive alternatives in hotel arrangements or taking shorter trips, and seeking last minute deals that include significant savings.
While prospects for 2010 appear good, 2009 was an admittedly dismal year for USTOA operators. At the same time there were some bright spots. USTOA President Bob Whitley expressed amazement that no tour operator had failed despite the worst recession in years. He attributed that to most tour operators cutting budgets, programs and product lines, and steeling themselves for a very poor year. Only two operators left USTOA, due either to them being sold or an ownership change, while the association actually signed on several new members.
According to an informal survey of USTOA tour operators, more than 45 percent of respondents said that 2009 domestic travel was down compared to 2008 by an average of 14 percent, with one-third reporting business unchanged. Slightly over 20 percent reported that domestic business was up.
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