An informal sampling of USTOA tour operators conducted in February, prior to the Iraq War, revealed that companies were evenly split (47% yes, 53% no) as to whether they had changed or liberalized cancellation policies in view of the current world climate. Among companies with more liberalized cancellation policies, some allow travelers to cancel for any reason up to as little as three days prior to departure, with no penalty if they rebook within a year. Other companies may allow full refunds for any reason, while yet others tie their cancellation requirements to U.S. State Department advisories or to Department of Homeland Security alerts.

Forty percent of responding USTOA companies offer insurance either covering cancellation tied to the U.S. government alert system, or due to fears of terrorism or war. Other companies advise travelers to buy independent travel insurance.

"It is important to remember that tour operators do not directly own the hotels, airlines, and other suppliers whose services they use. Therefore, they are dependent on these suppliers to issue refunds and credits when passengers cancel," states USTOA president Bob Whitley. Whitley also suggested travelers check with their travel agent or their tour operator, as cancellation and booking policies are changing constantly.

The USTOA poll also revealed that:

Last-minute bookings may reflect not only the uncertainty of the times but also a growing tendency for some travelers to wait for last-minute bargains. USTOA members caution that while waiting for these bargains, travelers may be overlooking the many good discounts and other incentives developed to address current marketplace conditions.

Not all travelers are following the general trend to shorter lead times. Some companies already have reservations for travel as far ahead as late summer or early fall, stating that travelers are optimistic about a swift resolution to a possible war with Iraq.

One major operator reported that more families are making plans to travel together, a trend seen last year as well. Families are choosing packages such as barge trips or villa vacations that offer a comfortable home away from home with a choice of activities each day.

Members responding to the informal poll represented more than 55 of the top brands offering vacation packages and tours to Europe.

USTOA Active Member companies represent more than 135 of the top brand names in travel, accounting for $8 billion in sales annually. The Association’s members must adhere to the travel industry’s most stringent standards, including participation in the USTOA $1 Million Consumer Protection Plan.

For a copy of USTOA’s "Smart Traveler’s Planning Kit," phone 1-800-GO-USTOA (468-7862), or e-mail information@ustoa.com. A listing of USTOA Members and the destinations they serve is also available by keying in www.ustoa.com.