A large majority (88%) of tour operators responding to a United States Tour Operator Association survey plan to utilize travel advisors to generate sales as they resume business in 2021.
In addition, 80% report that advisors will play a very important or important role in their business in 2021. And three fourths (72%) expect business booked by travel advisors to increase or remain the same in 2021. These were some of the results announced by USTOA officials at a press event in advance of the association's annual conference (to be held online) Dec. 1 to Dec. 3.
According to the survey, which had an 88% response rate, half of the responding companies have or plan to operate programs between July and December of this year. A third of those not operating this year say they will restart even before a COVID-19 vaccine is available. And two thirds (69%) say they are confident to highly confident that bookings will increase in 2021.
When asked about growth in new bookings in the last 60 days, two thirds (63%) reported an increase in new bookings, while 29% reported no change with bookings remaining the same. Terry Dale, president and CEO of USTOA added, "In August, we asked the same question and only a third (38%) of active members had seen an increase in bookings for the two months prior, showing a positive increase in momentum in consumer travel planning since early summer."
As a follow-up, USTOA asked when new passengers are booked to travel, based solely on bookings made in the last 60 days. members reported the following:
- Roughly 92% reported bookings for the third quarter of 2021, while three fourths (79%) reported new bookings for the fourth quarter of 2021.
- Two-thirds (69%) report passenger bookings for the second quarter of 2021, while a third (33%) reported new bookings for the first quarter of 2021.
- A quarter (21%) of members reported bookings for the fourth quarter of 2020 and 60% reported 2022 bookings.
- The remaining 2% reported no new bookings in the last 60 days.
Cancellation/refund policy was named as the number one most frequently asked question from clients who made new bookings in the last 60 days, followed by health protocols and health/COVID insurance policies. Likelihood of travel ranked fourth, followed by changes/limitations of itinerary. Size of group was asked least frequently.
Members who have operated during the pandemic were asked what the biggest challenges were in operating this year. Different quarantine restrictions in states/countries ranked first, followed by coordination of protocols across states/borders, and limited availability of rapid testing. Flight availability/scheduling/connectivity ranked fourth while customer reluctance to comply with protocols was named the least challenging.
USTOA also asked what feedback active members received from customers who traveled with new wellness protocols put in place. A third (33%) of members said that all of their customers reported that new wellness protocols did not hinder their experience, while another 29% said only a small number of customers reported that the wellness protocols put in place hindered their experience. Dale noted, "The remaining 38% had not gathered feedback relating to health protocols which indicates that there was very limited negative feedback by customers."
Destination Outlook
When asked what the top three international destinations that travelers are booking, based on new reservations only, Italy topped the list. Ireland followed in second, with Germany, Greece and the UK tied for third. On the home front, Alaska, Arizona, and California tied for first as the top domestic destinations that travelers are booking (based on new reservations only). Florida and Utah tied for second, followed by Wyoming in third.
Based on new customer bookings, active members named small group tours as the most popular travel product for 2021. Private groups ranked second, followed by FIT, river cruising, small ship cruising, and classic group tours (25+ passengers). Ocean cruising (medium to large ship) was named the least popular.
Respondents believe safety and wellness will have the strongest influence on consumers choosing a travel destination in 2021. Border reopening/government travel restrictions will have the second strongest influence on travel destination decisions, followed by distance/ease of travel to and from the destination, value, and outdoor components.
Nearly two thirds (65%) of current bookings are to international destinations; the remaining 35% of traveler bookings are to North America (US, Canada, and Mexico). Dale said that when the question was first asked in the May survey, 80% of current membership bookings were to international destinations, with 20% of bookings in North America. As the year progressed, he said, there has seen a gradual increase in North American bookings.
USTOA Active Members plan to take a destination-by-destination approach to resuming operations around the world. "What we are seeing from this survey is an overall shift in optimism for several international destinations from a first-quarter 2021 restart of operations to the second quarter of 2021," Dale said.
Dale said there are 630 registered attendees for next week's conference, "far exceeding expectations." He added that the USTOA's first sustainability conference, which was to be held in Norway last May, will be held at some point.
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