In the recent survey, (USTOA) named Cuba the top emerging destination for 2016. Myanmar, Iceland, Colombia, and (tied) Ethiopia and Japan round out the list. Italy, for the fourth consecutive year in a row, topped the list as most popular international destination for travelers in 2016, followed by the United Kingdom; China, France and South Africa (tied for third); Peru; and India.  On the home front, USTOA tour operator members forecast New York and California (tied for first), Arizona and Hawaii (tied for second), Nevada, Florida and Washington DC (tied for fourth) and Alaska as the most popular U.S. destinations for clients in 2016.

When asked what travel categories are most popular for passengers, participating members cited art and culture, honeymoon and romance, and family as the top three.             

Customer Behavior  

Members reported that a little more than half (55%) of their customer base are baby boomers at 51 years of age and older. The next largest age group was 35 to 50 years old, representing about a quarter (23%) of customers. Roughly half (53%) of members saw a growth in the number of solo passengers in 2015. 

On average, 55% of members reported that consumers and travel agents are booking international travel packages between six to 12 months in advance. For domestic travel, more than half (56%) of members cited that consumers and travel agents are booking less than six months prior.   

Growth Ahead 

Nine in 10 of tour operator members anticipate a growth in sales in 2016 with more than half of members (57%) “optimistic” and forecasting a “boom year” with growth anywhere from seven to 10% or higher. 

In 2015, three quarters of members responding to the survey reported an increase in sales over 2014, forty percent of which cited an increase of 10% or higher. More than two thirds (70%) of members also saw an increase in passengers in 2015; a third of them indicated growth of 10% or higher. 

While USTOA members view 2016 with optimism, they cited terrorism as the biggest threat to US traveler confidence in 2016. The second potential threat named was global financial instability, followed by political instability. Dale added, “Last year, terrorism was named fifth behind natural disasters, pandemics, strength of the US dollar, and global financial instability. And while the survey was completed prior to the tragic events in Paris, there is little surprise that it jumped to the top of list given world events.”

For more information on USTOA, visit www.ustoa.com.