A survey of NTA tour operators reveals that business is looking strong for the rest of 2023 and into 2024. And while they face persistent challenges with costs and industry personnel, operators know what they need and are eager to work with their destination and tour supplier partners to find solutions. The survey gave operators many opportunities to make suggestions—and they didn’t hold back.
Nearly two-thirds (63%) of the tour operators responding said their North American bookings are up from last year. A similar majority (65%) said that bookings for travel outside of North America are better than in 2022. Asked about 2024, more than half (54%) said North American domestic business will likely improve over this year’s numbers, and even more (63%) predict an uptick in bookings for destinations outside of North America.
Among the respondents of the survey, conducted March 15 through April 10, nearly half (47%) do business both within and outside of North America, a third (34%) have programs to or within North America only, and 18% focus on travel to destinations outside of North America.
Group size
According to survey respondents, one trend that began prior to the pandemic could be leveling off. NTA operators work with an array of group sizes, and the average number of passengers they reported for their typical groups range from 8 to 90, with a median of 30 passengers.
Fewer than half—44%—say that group size is smaller now than pre-COVID, and a like number (42%) say it’s the same. Only 14% reported that their average group size has grown. Looking ahead, however, the majority of respondents (71%) anticipate their group size will remain the same in 2024, and a quarter (27%) foresee an increase next year.
When asked how tour suppliers and DMOs can work with tour operators to best accommodate current group sizes, operators’ responses centered on two areas: reducing the minimum requirement for group pricing, and (mostly for hotels) shortening the window—from 60 days to 30—for operators to reduce their room blocks without penalty.
Flexible itineraries
Tour operators were asked about the flexibility of their itineraries in two ways: whether they are waiting until closer to the departure date to finalize specific hotels, restaurants, and activities; and whether they are building in options for passengers to customize their experience within the tour.
In regard to the former, more than half of respondents (56%) said their 2023 tour descriptions are more flexible, providing less specificity about accommodations and restaurants. The vast majority (87%) do not expect this practice to increase in 2024. Many said they have long stated in printed and online itineraries that changes might take place, and it’s common practice to include “or similar” when listing a hotel or restaurant on the tour.
When it comes to offering passengers more options— for example, an afternoon with a choice of rafting, visiting an animal sanctuary, or taking a lake cruise—a slight majority of operators (55%) said they are not providing more choices in their 2023 itineraries, and only 25% anticipate building in more options in 2024 itineraries. Offering options is common, though, and operators said that DMOs can assist in this effort by letting them know about local events well in advance and by providing suggestions and contact information for experience providers who can give group rates to smaller groups.
