USTOA tour operators make a significant contribution to the industry overall. Just how big, you ask? Well, we asked the same question, and to better understand how USTOA’s active tour operator members influence the industry, we asked PriceWaterhouseCoopers LLP (PwC) for help. PwC was commissioned to conduct a biennial economic impact study of our membership to monitor business trends, top travel destinations, industry forecasts and more.

The results were revealed at this year’s Annual Conference & Marketplace held at the Boca Raton Resort in Boca Raton, Fla., in December, and it’s true… USTOA tour operators are big news.

The Vital Statistics: Member Operators are Confident about Business in 2015

Representing 52 companies representing 160+ brands, active members of the USTOA contributed $12.5 billion to the U.S. tour operator industry in 2013. More than 7.6 million individual travelers took advantage of the wide variety of member offerings to visit destinations far and wide. Furthermore, the membership projects a healthy increase in sales in 2014 of 8.7 percent to $13.5 billion, with a 4.7 percent increase in individual travelers, to nearly 8 million.

And, member operators are confident about business in 2015: 95 percent anticipate a growth in sales in 2015. Of that majority, two-thirds (62 percent) forecast “optimistic” to “boom year” growth with sales approaching 10 percent or more. A little less than a third (29 percent) remain cautiously optimistic that sales will increase 4-6 percent in 2015.

Who’s Traveling and How Are They Booking?

When asked who’s traveling, tour operator members responded that about half of their customer base is baby boomers at 50 to 68 years of age. The next largest age group was 36 to 50 years old, representing 26 percent of travelers. Two-thirds (66 percent) of business booked was by U.S. residents traveling to international destinations, with 21 percent by U.S. residents traveling domestically.

So how are you, our travel agent partners, represented? Travel agents continue to contribute significantly to our members’ businesses and remain an important piece of the sales chain. Active members reported travel agencies represented two-thirds (67 percent) of total packages sold in 2013.

Top Destinations and Trends

When asked to name the top ten destinations for travelers in 2015, active members ranked Italy as number one, followed by the United Kingdom, China, Peru, France, Mexico, Australia, South Africa, Brazil and Vietnam.

For the third year in a row, respondents named Myanmar the top “emerging” country they foresee becoming increasingly popular in 2015, followed by Cuba, Croatia, Iceland, India, Peru, Sri Lanka, Vietnam, Cambodia and Panama.

What’s really interesting about these results is that Cuba debuted at the very impressive position of second behind Myanmar. This validates current and growing demand for travel to Cuba and further reinforces our positioning and support of an “Open Boarders” policy. Our members continue to expand their offerings to these locations to make them even more accessible to interested travelers.

Based on revenue of sales, USTOA tour operator members reported California, Hawaii, New York, Florida, Nevada, Arizona, Washington, D.C., Alaska, Puerto Rico and Texas the top 10 domestic destinations for 2014. The top ten international destinations for 2014 were Mexico, Jamaica, Dominican Republic, France, Italy United Kingdom, Aruba, Bahamas, Germany and Costa Rica.

Within these top regions, as well as throughout the rest of the globe, demand for experiential and culturally immersive travel remains high, with members offering programs in a variety of categories. Nearly three fourths (71 percent) of USTOA membership provide travel and tour packages that offer art and culture, and family/multigenerational programs, with 64 percent offering culinary and more than half (57 percent) providing adventure-focused packages. When asked to rank the programs based on sales, multigenerational/family, art and culture, and adventure consecutively rank the highest. With such a wide variety of experiences, USTOA active members will please even your most demanding clients.

Since PwC started monitoring the economic footprint of our tour operator members two years ago, USTOA has been able to use this data to build and strengthen the association’s role in advocacy for our membership as well as to understand the full impact of the revenues and jobs generated. The optimism of our members and the industry as a whole would not be possible without the help of you, our valued travel agent partners, so on behalf of all the members of USTOA, thank you for your continued support.

For more information about tours and packaged vacations, visit www.ustoa.com. And, remember that when booking with USTOA Active Members, you also get the assurance of knowing that they are held to the highest standards in the industry with our $1 Million Travelers Assistance Program. Visit www.ustoa.com for complete details.