The United States Tour Operators Association (USTOA) released new insights from its annual travel trends and forecast survey, outlining steady growth in 2025 and widespread optimism for 2026 despite a challenging global climate. The findings, presented during the 2025 USTOA Annual Conference and Marketplace in National Harbor, MD, highlight a year marked by resilience across sales, passenger numbers, and industry innovation.

The survey showed that 68% of tour operators recorded higher sales in 2025 compared to 2024, with half of those companies reporting gains of at least 10%. Another 16% reported stable revenue, while the remaining 16% experienced declines tied to inflation, political tensions, economic uncertainty, and traveler hesitancy shaped by safety concerns. Passenger trends mirrored these patterns: 58% of members saw an increase in travelers this year, 22% maintained consistent volumes, and 20% recorded declines.

Looking toward 2026, confidence is notably strong. A significant 78% of members expect guest bookings to rise, 88% anticipate higher sales, and 84% foresee passenger growth next year. Among those predicting increases, more than half expect sales to climb between 7% and 10% or more, while nearly half project similar growth in passenger numbers.

Travel advisors continue to play a pivotal role in the industry, with 90% of members planning to rely on advisors in 2026. Additionally, 78% say their role will be important or highly important to their business strategy next year. Nearly all respondents—94%—expect advisor-driven bookings to increase or remain steady.

When asked about threats to global travel confidence in 2026, economic instability ranked as the top concern, followed by inflation, political unrest, and ongoing geopolitical conflicts. These pressures are already affecting traveler behavior, with 71% of tour operators noticing greater hesitancy, 63% seeing shorter booking windows, and 39% reporting more last-minute cancellations or changes.

In destination trends, Italy holds its place as the top international destination for 2026. France and Japan climbed into the second and third spots, followed by Portugal and Greece. Domestically, Hawaii leads, with U.S. National Parks, Alaska, California, and New York also drawing strong interest. Portugal emerged as the top rising off-the-beaten-path location, followed by Morocco, Croatia, Colombia, and a three-way tie among Malta, Vietnam, and Ireland for fifth place.

Small group tours are expected to see the highest passenger growth in 2026, trailed by private groups and FIT. Travelers are prioritizing value and meaningful experiences, with safety perceptions also influencing destination decisions. Consumers today want immersive cultural encounters, but they are equally attentive to affordability and security.

Members identified three major trends shaping the year ahead: the rising use of AI to deliver smarter, more personalized travel planning; a shift toward deeper, more authentic travel experiences rooted in local culture; and the continued importance of value, clarity, and flexibility as economic pressures guide purchase decisions.

Artificial intelligence is becoming firmly embedded in tour operator operations. This year, 80% of members reported using AI in some form, a sharp increase from 28% two years ago. Key uses include marketing, data analysis, content creation, social media, customer service, and market research. More than half credit AI with improved productivity, though many companies still dedicate only a small portion of their budgets to AI tools and training. Over the next few years, members expect AI to transform customer service, business intelligence, and marketing, with AI trip planning tools and chatbots playing a growing role.

Sustainability remains another major priority. Sixty-two percent of members now have a formal sustainability strategy, driven largely by company values and the need to respond proactively to global environmental challenges. Sustainability considerations are also shaping business collaborations, with 84% of operators evaluating a partner’s environmental or social commitments before working together. More than half already incorporate sustainability messaging into marketing, and additional members plan to adopt similar practices by 2027.

Accessibility is gaining focus as well. More than three quarters of USTOA members offer accessible accommodations, over half provide accessible transportation, and nearly half customize itineraries to support travelers with diverse abilities.

Overall, the survey paints a picture of an industry adapting quickly to change, investing in innovation, and preparing for a strong year ahead as travelers seek value, authenticity, and confidence in every journey.

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