NTA tour operators say business is up despite challenges

Business has increased for a majority of NTA tour operators, but the challenges they face in building multiday itineraries have led them to change the price, timing, components, and even the existence of some tours they offer.

In a survey of tour operators conducted this month by the association, 58% said their company will finish 2024 with sales that are better or much better than last year. One-fourth said their sales volume is the same this year as last, and 17% said their sales declined in 2024.

Looking ahead to 2025, more than half of NTA buyers (54%) said their company is poised to perform better than in 2024 – with 14% of them saying much better – and 39% expect to see a similar amount of business. Only 7% expect a drop-off in bookings next year.

Asked to assess the significance of challenges they face with four types of tour suppliers, operators rated hotels as most challenging, followed only slightly by their concerns about restaurants, motorcoaches, and air travel.

Drilling down on the types of challenges they encounter with these tour suppliers, operators cited higher rates as the most serious factor they face, followed closely by unfavorable terms. Other factors that operators see as challenging are staffing shortages among suppliers and concerns about the overall economy.

Comparing rates for 2025 to those they’ve seen this year, tour operators report double-digit price increases for each of the four categories of suppliers: hotels, restaurants, motorcoaches, and air travel.

“This is why pricing is the number one challenge for operators,” said Catherine Prather, NTA president. “Before COVID, a normal year-over-year increase for supplier rates was 5%, and now, four years past COVID, tour operators are experiencing rate increases more than double that  figure, and, in some categories, even close to tripling it.”

Asked what steps they have taken in light of suppliers’ higher rates and unfavorable terms, most (88%) operators, unsurprisingly, said they have increased the price of their tours, and nearly half (48%) said they have changed the timing of a tour to get better rates or terms.

But further actions show the significance – and the consequences – of operators’ current challenges with suppliers:

• Nearly two-thirds of responding operators (65%) said that high rates, unfavorable terms, or both have led them to change suppliers in a destination.
• Almost half (47%) have changed to a different destination that provides a similar experience.
• And more than four out of every 10 operators (44%) said they have dropped a tour altogether because of suppliers’ rates and/or terms.

Prather said NTA will soon survey its tour suppliers and DMO members and ask how tour operators can best navigate the challenges they face.

“We’ll also provide an even better way to deal with these issues: In November, hundreds of buyer and seller members will come together at Travel Exchange,” she said. “They’ll have meaningful, face-to-face conversations in scheduled business appointments as well as organic conversations over a meal or a during a networking event. Understanding what your partners are facing and finding solutions are best done in person.”

In the survey, operators outlined ways a destination or tour supplier can earn their business. In addition to competitive pricing, favorable terms, and timely communication, operators cited factors that will enhance their tours, such as new and compelling experiences, high-quality service, and group-friendly dining options.

Staffing levels and finding qualified employees remain an issue for tour operators. Asked to compare their current staffing level with 2019 levels, 47% are either equal to or ahead of 2019, and another 30% say they are operating with somewhere between 75% and 99% of 2019 staffing levels. These numbers are nearly identical to those reported last year.

Asked to rate on a 10-point scale the difficulty in hiring qualified employees, tour directors, and tour guides, operator responses averaged 5.5, midway between “incredibly challenging” and “not challenging at all.”

When the NTA community gathers at Travel Exchange in Huntsville, Alabama, in November, Prather anticipates positive energy and optimism.

“The fact that so many operators are seeing increased business this year and next year will make for an upbeat conference,” she said. “And the comment of one operator reminds me why our members get along so well. That operator’s request for sellers is, ‘Communicate with us, as we are here to be good partners. Through collaboration we can succeed together.’”

The article NTA tour operators say business is up despite challenges first appeared in TravelDailyNews International.