During the United States Tour Operators Association’s (USTOA) 2025 Annual Conference & Marketplace, which took place at the Gaylord National Resort & Convention Center in Maryland, media in attendance got the data-packed 411 on how the industry performed in 2025—and where it’s headed in 2026.
From normalized post-pandemic growth to travelers’ increasing caution amid economic and geopolitical uncertainty, the findings—gathered from the organization’s annual survey—reveal both challenges and strong underlying demand. With AI adoption surging, sustainability strategies accelerating and 90 percent of USTOA members planning to rely on travel advisors next year, the association’s leadership says the industry is entering 2026 with high confidence.
During the media briefing, the USTOA Executive Committee—made up of the new Chairman Jeff Roy, Executive VP and Chief Revenue Officer of Collette; Vice Chairman Pam Hoffee, President of Avalon Waterways at Globus Family of Brands; Treasurer Keith Baron, COO of Perillo Tours; Secretary Jeremy Palmer, President of Tauck; and immediate past Chairman Dana Santucci, Executive VP of EF Educational Tours—shared insights from the association’s annual survey and travel trends.
Growth Normalizes in 2025 as 2026 Outlook Remains Strong
According to the survey results—which had a 92 percent participation rate—68 percent of tour operator members reported a growth in sales in 2025 compared to2024, with half of those companies seeing gains of 10 percent or higher. Sixteen percent of members reported flat sales from the previous year, while the remaining16 percent experienced declines, largely attributed to economic and political uncertainty, inflation and hesitancy tied to safety concerns.
“Economic and geopolitical volatility certainly resonated with members. As an association, historically, we’re used to seeing this growth percentage much higher,” said Roy. “So last year, when we asked the same question…94 percent reported an increase. So, still writing that post-COVID momentum, so it slowed a little bit. But this shows growth normalized, sprinkled in with impacts of the current climate. However, overall, it’s still a strong performance given this year’s volatility.”
Passenger trends showed similar results: 58 percent of USTOA tour operator members saw an increase in travelers in 2025, with 52 percent of those reporting growth of 10 percent or higher. Another 22 percent said passenger numbers remained steady from 2024, with the remaining 20 percent seeing a decline in passengers in 2025.
When it comes to 2026, 78 percent of USTOA members are highly confident/confident that sales will increase. “Despite global economic headwinds,” noted Roy, “the majority of operators remain bullish, signaling that travel demand [holds steady]. Projections for sales and passenger growth for next year are strong, with nearly nine out of 10 members anticipating sales growth for 2026, and 84 percent of active members are expecting passenger growth next year.”
Among those forecasting increases, more than half (55 percent) project optimistic to significant gains of 7 percent to 10 percent or more in sales, while nearly half (46 percent) expect the same for passenger volumes.
“This,” added Roy, “suggests continued confidence even amid a challenging global economy. It’s a bit softer than last year’s numbers…reflecting more measured realistic expectations for 2026.”
Economic Uncertainty and Traveler Caution Shape 2026 Outlook
When it came to challenges in 2026 and threats to travel confidence, USTOA members pointed to economic uncertainty, including global financial volatility and fluctuations in the dollar. Cost of living and political instability followed closely behind. Geopolitical conflicts and a drop in demand for international travel following well-publicized issues rounded out the top five consumer confidence threats heading into next year.
“Interestingly,” said Hoffee, “geopolitical conflicts shifted from first in last year’s survey to fourth this year.”
Seventy-one percent of tour operators report increased hesitancy from consumers committing to travel and 63 percent note shorter booking windows, purchasing closer to departure. Additionally, 39 percent have seen more last-minute cancellations or changes.
“So, it’s a picture of a more cautious traveler with decisions and commitment coming much closer to the travel dates, but ultimately still traveling,” said Hoffee.
USTOA Members Reaffirm the Critical Role of Travel Advisors
How important are travel advisors to USTOA members? According to the survey, an overwhelming 90 percent of members plan to utilize travel advisors to generate sales in 2026, while 78 percent of members report that travel advisors will play a very important/important role in their businesses in 2026. And in 2026, 94 percent of members expect business booked by travel advisors to increase or remain the same. “The good news is these numbers are consistent with the percentages reported when USTOA asked these same questions in the trends survey that was conducted in 2024. It confirms the enduring importance of travel advisors to USTOA members,” stated Hoffee.
European Staples, Emerging Destinations and Small-Group Travel Power 2026 Bookings
Italy continues her popularity run, maintaining its long-standing position as the top destination travelers are booking for 2026. Europe has a hold on the top five international destinations, with France, Portugal and Greece grabbing second, fourth and fifth place, respectively, with Japan coming in at number three.
Portugal took the number one spot in the leading off-the-beaten-path destination for 2026, with Morocco, Croatia, and Colombia following in second, third and fourth place, respectively. Malta, Vietnam and Ireland tied for fifth.
Regarding Ireland, Santucci said that “people are starting to explore different destinations within the country.”
For those exploring their own backyard, the spots to visit are Hawaii, U.S. National Parks, Alaska, California and New York.
When asked which product categories have the strongest passenger growth trajectory, small group tours topped the list, followed by private groups and FIT, showing consistent appetite for intimate experiences, focus trips.
Important to keep in mind for bookings as we head into the new year: Value and experiences were tied as the top influences on destination choice for 2026, followed closely by safety perceptions. Travelers are also looking at marketing awareness; exchange rates/affordability; distance/ease of travel to/from destination; less crowded/off-the-beaten path; special events; and sustainable practices.
From AI to Authenticity: What’s Shaping Travel in 2026
And we can’t have a conversation in today’s current climate with talking about AI, which, according to USTOA members, is the top trend impacting travel in 2026. “It’s not just a buzzword,” said Baron. “It’s a practical tool for customized trip planning, smarter itineraries and improved convenience throughout the travel experience. Respondents foresee travelers expecting AI-driven recommendations, seamless digital integration and tools to help tailor experiences to their individual preferences.”
That said, meaningful travel is still top of mind for travelers, with many expecting authentic, culturally immersive and slower-paced experiences. “Travelers are…prioritizing local culture, personal connections and a deeper sense of place over sightseeing checklists. This is supported by interest in off-the-beaten-path destinations and smaller groups,” added Baron.
Additionally, “members expect a stronger focus on value for money,” Baron added. “Travelers want to feel they’re getting more…and they’ll likely choose brands that demonstrate transparency and adaptability in uncertain conditions.”
USTOA Members Advance Sustainability Efforts and Expand Accessibility
Tying into the meaningful travel thread is sustainability, with nearly 62 percent of respondents reporting having a formal, documented sustainability strategy, up 6 percent compared to last year’s PwC economic impact study. Sustainability practices also play a meaningful role in business partnerships: 84 percent of members said they consider a vendor’s approach to sustainability or social impact when selecting partners. In addition, more than half (57 percent) of members currently incorporate sustainability messaging into their marketing and sales efforts, with another 18 percent planning to do so by 2027.
Another topic that is gaining more traction in the travel industry is accessibility, with 45 percent of USTOA members selecting three or more options for passengers with disabilities or limited abilities: 78 percent of Active Members offer accessible accommodation options, while more than half (57 percent) have accessible transportation. Nearly half (45 percent) will customize tour itineraries for different ability levels. Some members offer information and materials in accessible formats (e.g., Braille, large print) and service animal accommodations.
“This is important work. There is more to be done,” noted Palmer.
