With the peak travel season at a close, the United States Tour Operators Association has revealed the year’s top destinations and trends for packaged travel. Italy once again ranks number one as this year’s most popular international destination for tours and packages, with Alaska unseating Las Vegas as the top domestic destination, according to an informal 2004 survey of the organization’s member companies, who account for the vacations of more than 10 million people yearly.

Top Places
Despite the high Euro, Europe ranked as the top international area overall, with Italy placing first as the single most popular destination for the second year in a row. Alaska came in first as the top domestic destination, followed by the American southwest.
Eastern Europe and South Africa were cited as the hottest up-and-coming areas. In fact, more than 50% of respondents said that 2004 sales to Central/Eastern Europe will have increased by over 25% compared to 2003.

When asked which countries offer the best value for the dollar, USTOA members cited New Zealand and Australia in first place, with the U.S. close behind.

Top Trends
As for top trends in vacation packages and tours, independent arrangements (FIT) placed first place, with 43% of respondents reporting a sales increase of more than 25% in this category. Value-added offerings (such as an extra free night or incentives such as a free meal), and special interest travel (history, culinary interest, etc.) placed second and third respectively.
Not surprisingly, Baby Boomers represent the hottest growing demographic group for tours, cited by 44% of respondents, with seniors and families each tied for second place at 28%. A whopping 70% of respondents said that Baby Boomers also account for the hottest growing demographic group for independent vacations, followed by families (30%).

When asked about the fastest growing segment price-wise for tours and vacation packages, 62% of USTOA respondents said value for the dollar was more important, regardless of the price; while 27% cited luxury travel.

USTOA President Bob Whitley notes, “It is no surprise that Europe came out on top as the most popular international area for tours and vacation packages. Since 2001 there has been tremendous pent-up demand for travel there, and we are seeing it play out, despite the elevated Euro. And, the Baby Boomer market, because of its size and influence, will help shape the vacation package industry, as tour operators and wholesalers respond by adapting vacation styles to suit their needs,” says Whitley.
Survey respondents represented 80 of the top brand names in packaged travel, or an estimated two-thirds of USTOA’s membership. These companies have met the travel industry’s highest standards. For more information and a listing of USTOA Member companies, visit www.ustoa.com.

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