Kindness was the overarching theme at the 2024 United States Tour Operators Association (USTOA) Conference and Marketplace, which was held at the JW Marriott Marco Island Beach Resort in Florida last week. During the opening general session, USTOA President and CEO Terry Dale noted that travel is a “bridge to kindness.”
On that theme, the organization is launching a new pilot program in 2025, Breaking Bread, that aims to start a dialogue with destinations that are feeling the effects of overtourism, meeting with all interested parties, such as someone from the mayor’s office and from economic development, as well as those, stresses Dale, who are leading the anti-tourism charge within the community.
“There’s something symbolic about saying, Let’s come together—stakeholders and community leaders, activists…—and have a transparent conversation about the reality of the situation,” Dale tells Recommend. “So, let’s break bread and get the right people in the room and start the process.” He stresses that it has to be an ongoing conversation, with the interested parties making a commitment to the process and meeting five to six months after the initial conversation.
“It’s critically necessary to the future of our industry in finding the balance between residents and their home and our industry, which brings tremendous good; we have to respect that there’s tension at times. And so, let’s try and find that balance.”
Also coming in early 2025 is a brand-new website. “We always try and push the envelope when it comes to how can we make it fresh and different,” said Dale. “This year, when we [refer to] our three [groupings] on the site—members, travel advisors and consumers—we have taped videos and testimonials of people that I think will be engaging and keep the traffic turning pages.”
Bookings are Looking Robust
The USTOA’s 2024 Economic Impact Study, produced by PwC, indicates optimism for travel in 2025 with Dale noting that there was a high level of engagement amongst the active members; 96 percent of active members participated in the survey. “…[Active members] understand how important this information, this data…is for our work in Washington, DC. I use this every day.”
In terms of key statistics, numbers are up, with Dana Santucci, Chairman of USTOA’s Executive Committee and Executive VP of EF Education First, telling the media that “our active members project to close out 2024 with sales reaching more than $24 billion, which represents 8.4 million travelers. That’s an 8 percent increase from total travel packages sold in 2023 and an almost 7 percent increase on the number of travelers last year.
“This represents 3.6 million total travel packages sold in 2023, and 3.84 million packages in 2024. The purchases of goods and services—this includes air, rail, cruise, ground, transportation, accommodations, dining and attractions—is projected to reach $16.6 billion for this year. This is a 6.1 percent increase from 2023.”
Travel advisors, take note, because 60.3 percent of those packages are sold through travel agencies. “This reinforces that our travel advisors are a vital partner to our businesses,” notes Santucci.
“Escorted tours are the largest contributor to our total active member revenues in 2023 and 2024,” continued Santucci. “FIT packages are second, and one interesting thing to note is that customized packages have seen a significant increase from our last PwC survey in 2022, where they were contributing only 3 percent. Right now they’re at 16 percent. We’re seeing consumers seeking customization and personalization, and this is a growing trend within the industry.”
Although half of active members anticipate a significant growth in sales volume for 2025, they are concerned about political turmoil affecting growth projections in the next few years. Another area of concern is overcrowding, which the Breaking Bread project aims to address.
The Hottest Destinations
Italy was, once again, named the most popular destination for travelers in 2024 and 2025, with Portugal ranked second, followed by Greece in third. “Europe continues to be the strong presence in our portfolio,” noted Madhvi Buch, Vice Chairman of the USTOA Executive Committee and Global Head of Business Solutions of The Travel Corporation, USA, “and it maintains its status as the most popular travel package destination, accounting for half the travel packages sold, both in 2023 and 2024.” She adds, “Portugal offers something new for those who have already experienced some of the iconic parts of Europe. Portugal has become a very sought-after destination for everyone who offers Europe…cruising, touring package, FIT and for river cruising….”
New hot destinations this year includes Croatia, South Africa, Morocco and Thailand. “And on the flip side, for off-the-beaten-path or emerging destinations,” continues Buch, “Vietnam tops the [list], both for 2024 and 2025.” That’s followed by Iceland and Japan, which are tied for second. “Japan is also gaining popularity as both a hot and off-the-beaten path destination,” says Buch, “so that is quite interesting. And it’s encouraging to see several new countries have graced the list, like South Korea, Albania and Namibia.”
Sustainability is Top of Mind
The survey revealed that 71 percent of active members are “fairly to very confident that they are taking sufficient action to address sustainability issues and to remain competitive,” Buch said during the USTOA press conference. Nineteen percent assert that sustainability is fully embedded across their entire corporation.
Of note is that corporate values and culture are the main drivers in adopting a sustainability strategy. Compliance with regulations and policies made a big jump to third from its sixth-place position in 2022, while “responding positively to global crises” remained in second place, mentioned by 52 percent of respondents.
The active members were asked what areas of sustainability the organization is planning to address over the next 12 months, and Jerre Fuqua, President of Holiday Vacations and immediate past Chairman for the USTOA Executive Committee, said that the survey shows that “three quarters reported aligning sustainability goals with supply chain and partners. Similarly, three quarters said itinerary planning was important to support local communities and nearly half, 46 percent, reported reducing or offsetting carbon emissions as an important driver.”
Additionally, more than 58 percent are committed to gender equality and demographic diversity. Noted Emma Cottis, who is on the USTOA’s Board of Directors and is General Manager, Business Systems for Goway Travel, “Eight out of 10 members have policies relating to gender and race and ethnicity, while three quarters have LGBTQ plus policies. Almost three quarters, 71 percent, have policies relating to age and seen or unseen disabilities. And the most encouraging is that the percentages in all of the categories have improved since 2022.” In fact, “Two thirds of active members agree that our industry is representative and accessible to all.”
What Does Kindness Mean to You…
During the press conferene with invited media, Recommend asked the committee waht kindness means to each of them:
- “Compassion” — Dale
- “Acceptance” — Santucci
- “Civility” — Buch
- “Friendship” — Fuqua
- “Environment” — Cottis
