U.S. Tour Operators a Brighter 2011
Sunday, 11 Jan, 2011
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New Orleans – It is often said that travel is the first business into recession and the last out. Preliminary signs of the “Great Recession” showed in late 2007, in the form of unusually high vacation cancellations to long haul destinations. By 2008 a substantial decline in bookings, across all sectors of leisure and business travel, resulted in significant downsizing of travel businesses across America.
Many U.S. tour operators had reduced their work forces by 20% to 50%; a “cutting of the cloth” necessary to stay in business and weather a dismal economy. But taking those drastic measures resulted in leaner, more efficient and stronger companies, ready for an eventual economic turnaround and improved U.S. economy. Tour operators this year declared they made money again in 2010, with business volumes and margins improving as the American economy strengthened after two bad years.
The annual United States Tour Operators Association annual conference and marketplace is a gathering of senior management across the global travel community. Airlines, tourism boards, hotels, resorts, attractions and service suppliers collaborate and pitch to become part of next year’s programs offered by USTOA member companies.
This year’s USTOA meeting drew over 700 delegates to the Sheraton New Orleans Hotel. Across Canal Street “La Rue Bourbon” provided merriment and liquid warmth and from unusually cold weather. Bob Whitley, long-time president of USTOA who died suddenly last May, and whose wry humor and personality indelibly stamped this event for over 30 years, was honored and acknowledged in a lovely tribute by Jimmy Murphy, Chairman of AMA Waterways and co-founder of USTOA.
New USTOA president Terry Dale was introduced by Chairman John Stachnik, who reflected on 2010 being a year of challenges that included Icelandic volcanic ash, French labor strikes and a still uncertain U.S. economy creating logistical challenges for tour operators. Dale promised to “collaborate, innovate and elevate” USTOA over the coming years. He comes to the organization with strong credentials, heading CLIA and senior positions in NYC & Co.
Most USTOA members viewed 2010 as a vast improvement on the previous year. Business volumes and margin improved over the past 12 months, a reflection of improving American consumer confidence. Collectively U.S. tour operators see 2011 in a cautiously optimistic light, reflective of a slowly strengthening U.S. economy and an increasing advance booking trend.
USTOA ROUND UP – News and Notes
- Stewart Moffett, Director of Merchant Services for American Express declared that 2010 tour operator related cardholder spending would exceed $2 billion.
- USTOA will create an “Allied Associate Committee” allowing a formal voice in USTOA affairs for the many allied and associate members of the organization
- Consultant Henry Harteveldt of Forrester Research noted that America is presently experiencing a trend of “Frugal Chic”, with consumers saving money as a matter of pride. Harteveldt also stated that:
– The use of travel agents is rising as Americans have realized that booking online is neither enjoyable nor time-saving. This especially applies to overseas journeys. More than 1/3 of travelers surveyed do not trust the internet for pricing or quality stated.
– Half of online travelers are under 45 years old, and the industry needs to market now to that demographic
– As Baby Boomers age, growth over the next ten years will be in the 65+ senior market
– Boomers age 45+ spend the most when traveling
– Commercialization of social media will spiral. Delta Airlines, hotel brands Trump and Kimpton, haveeach put booking engines on Facebook. Internet video watchers are 2.5 times likely to buy.
Kieron Keady
TravelMole Staff Reporter
Sustainability Intelligence Ltd.
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