More than three-quarters of the members of the U.S. Tours Operators Association saw 2010 as a year of rebound, compared to 2009 according to a recent informal member survey. But over one-quarter saw 2010 as a year of adapting to new realities. Most survey respondents expressed reserved optimism going into 2011, foreseeing higher sales but still not attaining 2007-2008 levels. The survey was released on Dec. 10 at the USTOA’s annual Marketplace & Conference in New Orleans.

International travel saw a rebound in 2010, with more than three-quarters of survey respondents saying that travel had increased by an average 40 percent year over year, largely fueled by growth in Europe destinations. Less than 15 percent saw business down, and nearly 10 percent said business was unchanged. On the other hand, optimism over Europe sales is tempered by the fact that the Oberammergau Passion Play helped spike 2010 sales. This business will need to be replaced in 2011 by other products if Europe sales are to maintain their momentum, USTOA members said.

Domestic travel also was up, although less dramatically. More than half of responding USTOA members reported an average increase in travel by over 30 percent. Fully one-quarter of respondents saw domestic business unchanged compared to 2009, while nearly 20 percent said business was down.

Even among USTOA tour operators and wholesalers who saw 2010 as rebounding, several cautioned that the year was also one of adapting to new realities. One respondent remarked that per passenger revenues recovered but overall volume was down. Another member said that while business had picked up, it still hadn’t met earlier forecasts.

More than three-quarters of survey respondents said the economic situation has affected travel bookings over the past year, with nearly one quarter of those surveyed seeing no effect. According to some respondents, even though business was up, it hadn’t met original expectations going into 2010, largely due to the soft economy.

While 87 percent of respondents expect 2011 sales to increase, most do not expect a return to pre-recession levels. According to 70 percent of those responding, the economy will continue to affect bookings into next year. Currency fluctuations, passengers shopping for “the deal,” and shorter booking periods are all part of the realities confronting the wholesale travel business, according to survey respondents. While some respondents see a continued soft market, they are nonetheless banking on pent-up demand to fuel sales.

According to the survey, more than 35 percent of USTOA members cited escorted tours as their greatest area of growth, with 25 percent reporting FITs as their major growth area for 2010. Twenty-three percent of respondents reported independent tours accounting for greatest growth, with vacation packages cited by 15 percent.

More than half of USTOA members expect to increase 2011 prices slightly (by 8 percent) over 2010, with nearly 35 percent holding steady. Nearly 10 percent said their 2011 prices would decrease, by an average 5 percent. The results of the survey are based on responses from 66 USTOA member companies and brands.

In a further poll of its members, USTOA reported that the single greatest issues facing tour operators today are the economy, terrorism and travel warnings, air fares and fees, competition and tour operator bypass, and awareness and training. Economic concerns include soft demand leading to discounting, the impact of an uncertain economy on travelers, and a weakened dollar against some foreign currencies, especially Asian currencies.

The airlines and costs of doing business were other areas of challenge cited by survey respondents. Air fares and capacity, especially to Europe; fuel prices; and airline baggage fees are issues challenging tour operators, as are controlling staffing and advertising expenditures. Competition is another issue voiced by several USTOA member companies, including competition from travel agents and consortia who bypass tour operators to work directly with suppliers, and from consumers who think they can do better on their own. Respondents also cited the need for travel agent training and for building consumer awareness of the value of using tour operators. For more information on USTOA, visit www.ustoa.com.