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For Release Through August 1, 1999

USTOA SURVEY REVEALS ITALY, LAS VEGAS HOTTEST 1999 DESTINATIONS FOR TOURS, VACATION PACKAGES
Shorter, More Independent Vacations are Long-Term Trend

Italy and Las Vegas will place first as hottest single destinations for 1999 tours and vacation packages sold in the U.S., according to a recent, informal survey by the United States Tour Operators Association, whose 57 members account for the majority of tours and vacation packages booked by travel agents in the United States.

On a regional basis, Europe ranked first internationally, followed by Australia/South Pacific and Asia, which both tied for second place. For the fifth year in a row Italy reigned as the hottest-selling single country worldwide. Tied for second place were China, Australia, and Spain, the latter surpassing France for the first time. Domestically, for the first time Las Vegas came out on top, unseating perennial favorite Orlando, which placed second.

South and Central America came out on top as the single hottest growing area internationally, followed by the South Pacific; while Italy and Mexico were cited as the two countries expected to experience the greatest growth in tours and vacation packages. Once again USTOA tour operators expressed great optimism in the growth potential of Las Vegas and Florida, which both tied for first place as hottest growing domestic destination.

Canada Expected to Sell Well, Prices Continue to Hold in Asia

The USTOA survey found that a continued strong U.S. dollar would have a favorable impact for U.S. travelers to Canada and Asia. USTOA tour operators offering Canada unanimously expect the continued strength of the U.S. dollar in 1999 will lead to increases in vacation bookings by anywhere from 5% to 20%. Sixty-percent of reporting tour companies said their 1999 prices would be slightly lower (up to 7%) than 1998.

Most USTOA tour operators to Asia have also lowered prices for 1999, with 80% of respondents reporting prices an average of 11% lower than 1998 prices. When asked how this year's prices compared to 1997, prior to Asia's economic crisis, half of those surveyed replied that 1999 prices would average 16% lower than two years ago.

As for prices to other destinations, more than 90% of USTOA members surveyed responded that domestic package and tour prices would remain either unchanged or increase slightly, while 70% of USTOA members saw international tour and vacation package prices either holding or increasing slightly. In both cases, average increases amounted to 5 - 6% over 1998.

Shorter, More Independent Vacations are Long-Term Trend

Although most responding USTOA Active Members saw no major trends over the past year, two-thirds of respondents cited a growth in shorter vacations over the past five years. In fact, more than two-thirds of USTOA tour operators now offer long weekend packages. Sixty percent of responding tour operators have seen a trend toward selling vacations with more individual components over the past five years. When it comes to types of vacations, independent packages are the clear winners, with adventure, special interest, and cruise vacations gaining ground.

About USTOA

As the premier organization of its kind, USTOA represents 122 brand names, offering tours and vacations worldwide. The association's Active Member companies move some nine million travelers yearly, accounting for $5 billion in travel sales.

For a listing of USTOA Active Member companies, as well as a free copy of USTOA's "Smart Travelers Planning Kit," contact USTOA, 342 Madison Ave., Suite 1522. New York, NY 10173; or phone 1-800-GO-USTOA (468-7862); or e-mail USTOA@aol.com. Information on USTOA member companies as well as the destinations they serve is available on the Internet at http://www.ustoa.com


Public Relations Contact:
Linda Kundell Communications

(212) 877-2798, (212) 877-3387 fax

(For all other inquiries about USTOA, please contact USTOA.)