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Survey Says!

It's a Good Time to Travel

Tour Operators & Vacation Packagers Marketing Extra Value Offerings

Travelers can profit from the current economic environment by seeking out value-added incentives offered by tour operators to help stimulate business.  This is one of the conclusions of an informal membership survey recently conducted by the United States Tour Operators Association, whose member companies provide vacations for nearly 10 million travelers yearly.

Business Down, Opportunities Up

More than 80% of responding USTOA members said that 2002 bookings were lower or the same as last year, with nearly 20% reporting an increase.  Overall, bookings were down slightly, by an average  8.5% over 2001.   As for sales growth, more than 45% said sales were on a par with 2001, while nearly 40% cited lower sales.  Fifteen percent said that sales had increased over 2001.

To spur business, tour operators are adding incentives, which spells good news for travelers who will find more for their money.  Forty-two percent of USTOA respondents cited value-added offerings as their number one marketing strategy this year, throwing in such features as extra nights (4 nights for the price of 3, etc.), meals, sightseeing, and other activities included in the price that normally would cost extra.  In addition to value-added offerings, the survey found that cruise tours and domestic tours and packages are among the top products being marketed this year.

“The good news is that, even though business is relatively flat, we are doing much better than expected,” says Bob Whitley, USTOA President.  “At the beginning of the year predictions called for business to drop by far higher levels.   While escorted and independent tour sales have dropped somewhat, by an average of from 2% to 10%, we are seeing a number of bright spots.  These include cruise tours, and family tours/packages, both gaining slightly at about 3%,” notes Whitley.

“Nearly 60% of our members who responded to the survey said that family travel was more popular this year, and we expect this trend to continue.   There are good values, and by visiting a knowledgeable travel agent, families can find attractive packages,” he adds.

Independent Packages vs. Tours

Continuing a long-term trend, nearly half of respondents said that independent packages represent more than 50% of their business, while escorted tours represented the majority of sales at nearly 45% of members.  Slightly over 5% of members reported business evenly split between both categories

Optimism for International Travel

Tour operators responded optimistically regarding international tourism, with nearly 60% of respondents who market both international and domestic programs saying they were not emphasizing domestic over international travel this year.   One reason for optimism is the introduction of the Euro.  Sixty-five percent of respondents saw the Euro, which simplifies currency for travelers, as having a positive impact.

Effects of the Current Economic Climate

Answering survey questions about the effect of 9/11 and the slower economy, 40% of respondents foresaw a slight decline in sales and a slow rebound, with more improvement in the latter part of this year and in 2003.  More than twenty percent attributed shorter booking times and last minute travel to the effects of 9/11 and the economy, and nearly 15% saw higher values and deep discounts as effects of the current situation.

“Travelers are waiting longer than ever to book their vacations, and looking for last-minute bargains,” says Whitley.   While looking for these bargains, Whitley cautions that travelers may be overlooking the many good discounts companies offer as incentives for early or advance bookings.

Where To Look? The Web

People are increasingly turning to the Internet for research, observes Whitley.  In fact, according to the USTOA survey, websites are replacing brochures when it comes to providing information, late-breaking specials and prices. More than  80% of USTOA members  reported that they now carry all their offerings online, while 10% carry some.  Nearly 60% provide more information on their website than in their brochures.  

More Information          

USTOA Active Member companies represent nearly 140 of the top brands in travel packages and tours, 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 visiting www.ustoa.com.

Edited by Dave Shultz

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