USTOA Tour Operator Survey Reveals Industry Growth and Optimism Heading Into 2026 Despite Challenging Global Climate

Nearly 9 out of 10 tour operators expect sales growth next year; confidence remains high as travelers prioritize value, experience, and safety.

The United States Tour Operators Association (USTOA) recently shared the findings of its annual travel trends and forecast survey, revealing steady business performance this year and a notably optimistic outlook amongst economic headwinds, geopolitical volatility, and shifting traveler behaviors.   

According to the survey results, announced at the 2025 USTOA Annual Conference and Marketplace in National Harbor, Maryland, two thirds (68%) of tour operators reported a growth in sales in 2025 compared to 2024, with half of those companies seeing gains of 10% or higher. Sixteen percent of members reported flat sales from the previous year, while the remaining 16% experienced declines, largely attributed to economic and political uncertainty, inflation, and hesitancy tied to safety concerns. 

“In today’s unpredictable global climate, our members continue to demonstrate remarkable resilience,” said Terry Dale, President and CEO of USTOA. “The impact of ongoing instability was felt, yet the majority of our membership still reported growth amid uncertainty and higher operating costs, which stands out. Travelers remain motivated to explore, and our tour operators are positioned to guide them with the expertise, trust, insight, and security that elevate the way they experience the world.”

Passenger trends showed similar results: 58% of USTOA tour operator members saw an increase in travelers in 2025, with 52% of those reporting growth of 10% or higher. Another 22% said passenger numbers remained steady from 2024, with the remaining 20% seeing a decline in passengers in 2025.   

Looking ahead to 2026, more than three quarters (78%) of members are highly confident that guest bookings will increase next year. A substantial majority, 88% anticipate sales growth, and 84% expect growth in passengers in 2026. Among those forecasting increases, more than half (55%) project optimistic to significant gains of 7% to 10% or more in sales, while nearly half (46%) expect the same for passenger volumes.  

Travel Advisors 

Travel advisors remain essential to tour operator business models. An overwhelming 90% of members plan to utilize advisors in 2026, and more than three quarters (78%) say the role of advisors will be very important or important to their business strategy next year. Nearly all members surveyed (94%) expect business booked through advisors to increase or hold steady, underscoring the continued value of the advisor community.  

Global Threats

Members identified economic uncertainty, including global financial volatility and fluctuations in the dollar, as the biggest threat to travel confidence in 2026. Cost of living and political instability followed closely behind. Geopolitical conflicts and a drop in demand for international travel following well-publicized issues rounded out the top five consumer confidence threats heading into next year. These factors are shaping traveler decisions and booking patterns, with 71% of tour operators reporting increased hesitancy from consumers committing to travel and 63% noting shorter booking windows, purchasing closer to departure. Additionally, 39% have seen more last-minute cancellations or changes. 

Travel Trends

Internationally, Italy maintains its long-standing position as the top destination travelers are booking for 2026. Europe continues to remain strong in the top five, with France and Japan rising to second and third place, followed by Portugal and Greece. Domestically, travelers are gravitating toward Hawaii, U.S. National Parks, Alaska, California, and New York. Tour operator members identified Portugal as the leading off-the-beaten-path destination gaining traction for 2026, with Morocco, Croatia, and Colombia following. Malta, Vietnam, and Ireland tied for fifth. 

Small group tours are poised for the strongest passenger growth next year, followed by private groups and FIT. Value and experiences were tied as the top influences on destination choice for 2026, followed closely by safety perceptions.

“Today’s traveler is value-driven and experience led,” Dale added. “They want enriching experiences, but economic considerations and a sense of security are shaping their decisions.”   

Members identified three key trends expected to shape travel in 2026:

• Artificial intelligence (AI) is emerging as a practical tool for customized trip planning, smarter itineraries, and customization, with travelers increasingly expecting AI-driven recommendations and seamless digital integration. 
• At the same time, there is a continued shift toward meaningful travel, with travelers seeking authentic, culturally immersive, and slower-paced experiences that prioritize local culture and personal connection over sightseeing checklists.
• Economic considerations are also shaping decisions, as shared throughout the survey, with travelers looking for value, transparency, and flexibility, choosing brands that help them feel confident they are getting more from their travel investment. 

Artificial Intelligence (AI)

AI adoption surged this year: 80% of USTOA tour operator members now use AI in some capacity, up sharply from 28% two years ago. The most common applications include marketing (73%), data and business intelligence (66%), content and image creation (61%), social media (51%), customer service (51%), and research and competitive tracking (51%). Among the other AI statistics revealed: 

• More than half (57%) of respondents report improved productivity from AI adoption, while a quarter (21%) say it is still too early to determine impact. No members reported negative effects. 
• Despite rapidly increasing usage, investment levels remain modest, with three quarters (78%) of Active Members reporting that only 0–5% of their company’s annual budget is currently allocated to AI tools, training, and implementation. 
• Over the next three to five years, members expect AI to have the biggest impact on customer service, followed by business intelligence and marketing/social media. 
• AI for trip planning, AI chatbots, and advanced CRM tools as the emerging technologies tour operators named as the most likely to shape the next three to five years. 

Responsible Travel

Sustainability continues to be a central focus for USTOA members. Nearly two thirds (62%) of respondents report having a formal, documented sustainability strategy, up six percentage points compared to last year’s PwC economic impact study. Members most often cited alignment with corporate values and culture as the top reason for adopting sustainability strategies, followed by positive responsiveness to global crises. Brand and PR considerations, along with stakeholder expectations, tied for third. 

Sustainability practices also play a meaningful role in business partnerships: 84% of members said they consider a vendor’s approach to sustainability or social impact when selecting partners. In addition, more than half (57%) of members currently incorporate sustainability messaging into their marketing and sales efforts, with another 18% planning to do so by 2027. 

More than three quarters (78%) of Active Members offer accessible accommodation options, while more than half (57%) have accessible transportation. Nearly half (45%) will customize tour itineraries for different ability levels. 

This survey was conducted between September 9 and October 17, 2025, with a 92% participation rate.  

For more information, visit ustoa.com.  

Courtesy of Groups Today.