The United States Tour Operators Association – whose members account for the vacations of more than 10 million people yearly -- reports that, by year’s end, sales of packaged vacations and tours for 2004 will have increased over 2003. According to a recent informal survey of the organization’s member companies, 42% of respondents say that overall sales will increase more than 25% over last year.

Among the winners are cruise tours and sales to Central and South America. Thirty-seven percent of respondents predict increases of more than 25% to Central and South America, while 25% percent of respondents see an increase of cruise tour sales by more than 25%, and another 25% report increases of 5-10%.

More modest sales increases are reported for Western Europe, with 35% percent of respondents citing increases of 10 – 25%, while 38% say domestic sales would increase by the same amount. Fifty percent of respondents see escorted tour sales increasing by 10-25%, while family travel is expected to increase slightly, with 30% of respondents reporting sales increases of 10 – 25%.

Sales of student travel and travel to Mexico are expected to remain the same. One-third of respondents see Canada sales increasing by 5-10%, while another third see Canada sales remaining the same.

Looking ahead, independent tours, FIT arrangements (independently arranged components), and combination escorted tours with free time & flexibility built in, were tied as areas expected to represent the highest growth areas in the coming year. When asked which type of travel would represent the highest growth in five years, the combination escorted tour came in first, with independent tours and FIT arrangements tied for second place.

Slight Increases in Prices
Tour and vacation prices increased slightly this year over 2003. Forty-seven percent of respondents said their North America prices increased by 5%, while 33% said prices remained the same. More than 40% said their Europe prices increased by 5-10%.

While the Euro has not affected tour and vacation package sales this year (54% said the high Euro is not affecting sales), 65% of respondents expect the Euro to impact travel sales in 2005. Nearly 60% cite that those Eastern European countries that are adopting the Euro still remain somewhat of a bargain.

USTOA President Bob Whitley comments that, “The long-term trends toward packaging independent elements together, as well as the combination of cruises and tours will continue strong into the future. We are also seeing the traditional escorted tour product undergoing an evolution, as tour operators provide more time for independent activities within the framework of a planned itinerary. The convenience of having the major elements and transportation taken care of, while allowing the freedom for travelers to pursue their own interests is proving to be very attractive, particularly to the Baby Boomer generation who grew up on independent travel.”

Survey respondents represented an estimated two-thirds of USTOA membership, or 80 of the top brand names in packaged travel. These companies have met the travel industry’s highest standards for membership. For more information and a listing of USTOA Member companies, visit www.ustoa.com.

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