New study from PricewaterhouseCoopers LLP reveals that Italy will be the top destination for travelers in 2024 and 2025, according to United States Tour Operators Association (USTOA) members. The study also indicates significant growth in the tour operator sector, with projected sales of $24.4 billion for 2024.
Portugal and Greece secured second and third places in the rankings, respectively, while France and Japan tied for fourth place. Spain, Iceland, Croatia, South Africa, Australia, Morocco and Thailand also featured prominently in the list of destinations.
“Europe continues to dominate our lists of popular destinations. In fact, Europe represents half (52%) of active member travel packages sold in 2023 and 2024,” said Terry Dale, USTOA President and CEO.
The study identified emerging destinations that are gaining ground, with Vietnam leading the category, followed by Iceland and Japan in second place. Croatia, Morocco, South Korea and Turkey share third place, while Albania, Bhutan, Italy, Namibia and South Africa occupy fourth place.
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Experiential travel data shows that arts, culture and culinary programs lead tour operators' offerings at 77% each. Safari and nature products follow at 71%, while multi-generational and family programs represent 65% of offers. Adventure travel represents 64% of tour operators' revenue.
The industry is showing strong financial performance, with USTOA members contributing $22.6 billion to the U.S. tour operator industry in 2023, serving 7.9 million travelers. Projections for 2024 indicate an 8% sales increase, with 73% of operators forecasting growth between 7% and 10% or more for 2025.
Despite the positive outlook, the study identified potential risks to the sector's growth. Geopolitical conflicts top the list of concerns with 58% of respondents “very to extremely concerned”, followed by political instability with 56%. Notably, overpopulation comes in third place with 46%, marking a significant change compared to previous years when it was less important.
The survey, conducted between July and October 2024, achieved a participation rate of 96% among tour operators.
This article was generated by AI, based on a press release issued by the US Tour Operators Association. It has been fact-checked and reviewed by a TravelAge West editor.