by Brian Major
Last updated: 4:05 PM ET, Tue February 4, 2025
The United States Tour Operators Association (USTOA) is approaching
2025 with an emphasis on growth and responsibility, as members anticipate a year
of increased sales success and profitability as they focus on organizational programming
designed to enhance their professionalism.
The group’s 2024 Economic Impact Study, produced by PwC, found travel packages sold by USTOA members
generated $24.4 billion in economic impact in 2024, up 8.1 percent from 2023. Members
sold 3.84 million travel packages, up 6.1 percent from 2023, with 60.3 percent sold
through travel agencies.
The survey also reported that 46 percent of active USTOA
members anticipate a significant growth in sales volume for 2025.
The positive news was shared at USTOA’s annual conference
in December. We spoke recently with Terry Dale, USTOA’s CEO, to hear his
perspective on his membership’s prospects in the new year.
TP: The PwC survey reports 71 percent of USTOA members
are “fairly or very” confident they are taking sufficient action to address
sustainability issues to remain competitive. What is your message to members
regarding sustainability?
TD: One of the things that I’ve preached is to start the
journey. I think that's the most important message, because people are
intimidated or overwhelmed about starting. I feel it’s my responsibility to
encourage them to start. We've done that through our sustainability summits.
TP: What are your goals for members?
TD: Our goal in this conversation is to first provide a
trusted space where there is no judgment. Just because someone else may be very
buttoned down and very proactive in this space and you're just starting, there's
no judgement.
Also, take the first step. It’s daunting but it’s
digestible if you take it one step at a time. Don't let it overwhelm you, just take
the first step. I think once [members] take an inventory of what [they] are
doing, they’ll be surprised to learn that ‘Hey I’m doing more than I thought.’
I'm very proud of the progress of our members and the
commitment [they] are making towards [sustainability].
TP: Your “Breaking Bread” initiative will
arrange meetings between local destination and government officials and travel stakeholders
to discuss ways to make tourism less disruptive. What are your expectations?
TD: The goal is to get people in a room together for a
conversation that's honest. This is not a summit because you can't ask a
neighborhood leader or activist to meet for two days. This is two hours to sit
across the table and talk.
The only ask that I have is that the players come back to
that same table in five or six months. You don't find solutions in two hours,
but what you can do is start building trust. If [people] really think that, ‘Hey
they're listening to my concerns,’ that's a big step. We need to also share
that this can't be corrected overnight.
TP: What is the attitude of your membership
regarding this issue?
TD: I honestly believe our members are very sensitive to
the fact that sending customers during peak season [means] they're not going to
have the best experience. I know our members want to [encourage] shoulder season
travel. The overall consumer experience is going to be better and there's more
value because the prices are a little less expensive. If we can slowly get the
travel patterns into more of the shoulder season, that provides some relief to
the community.
TP: Does anti-traveler sentiment concern you?
TD: I was in Germany in October for a meeting and I had CNN
on and they did a piece [on the issue]. I'm not going say the two destinations
they focused on, but it was all about communities and they showed residents
with water guns and yelling and signs and billboards. We can't keep our heads
in the sand because it's not going to go away.
TP: You live in Brookyln’s DUMBO neighborhood, where
a street with a Brooklyn Bridge view has become popular for travelers and
influencers’ social media posts. How do you personally view the issue of
“overtourism?”
TD: There was an article this Saturday in the New York Post
about my neighborhood. I’ve been here 21 years, and 21 years ago there was no
one. Right now, on the weekends it's like Times Square. One resident was quoted
as saying, ‘The essence of our neighborhood is being destroyed by tourists,’
and I understand their feelings. But I also know the few restaurants that we
have those owners need those tourists. So it's all about balance.
TP: Do you have any advice for how travel
advisors should counsel clients regarding such circumstances?
TD: If you’re a travel advisor, tell [your client] to get
that iconic Brooklyn Bridge shot on Friday morning or Monday afternoon. You’re
not going to get a good shot over the weekend because there’s too many people.
TP: What is your opinion of the professionalism
of your membership during your time as CEO?
TD: Their professionalism and service has improved exponentially.
I think COVID helped tour operators and travel advisors with their value
proposition, because it really enforced the idea that you need a trusted
professional to help you.
You might have been overseas when COVID hit, or you might need
somebody to help you in extreme cases. Whether Mother Nature flexes her muscle
or there's a geopolitical event, you need that safety net that my members and
the travel advisors provide.
I'm not in the thick of it on a day-to-day basis but I know
I hear from my members and their partners that the travel advisor is more
relevant today. They wouldn't be saying that if they weren't doing something
right.
The way they're guiding and directing their customers has
to be at a level that is providing a good ROI for their customers and certainly
for us as a partner. So I think they're we come a long way, baby!
For the latest travel news, updates and deals, subscribe to the daily TravelPulse newsletter.
Topics From This Article to Explore
