The National Tour Association (NTA) has released the results of a new member survey capturing business performance in 2025 and expectations for 2026 while identifying the main challenges facing the packaged travel sector and key actions required to strengthen collaboration across the value chain.
“NTA members excel at collaborating,” said NTA President Catherine Prather, CTP. “I’m eager for NTA to use the results of this survey to help members assess challenges, find solutions, and become even better partners for each other.”
Conducted between 13 and 29 October, just ahead of the Travel Exchange in Ottawa (9–12 November), the survey includes responses from tour operators, destination marketing organisations (DMOs) and suppliers. This year’s event gathered more than 600 delegates from 29 countries, representing 48 U.S. states and nine Canadian provinces.
According to the findings, the majority of NTA members reported increased business and visitation in 2025 compared with 2024, and most anticipate further growth in 2026. DMOs attribute the positive outlook to major events such as America 250, the Route 66 Centennial and the FIFA World Cup, alongside enhanced marketing efforts, new or upgraded product offerings and expected international recovery.
Key challenges for 2026
Rising vendor costs are the top concern for tour operators, with 76% citing cost increases in areas such as lodging, dining, transport and attractions. Other issues include declining consumer confidence (37%), supplier availability and scheduling constraints (29%), competition from online/DIY trip planning (27%), staffing shortages (21%) and regulatory issues, from visa delays to national park fees and new sustainability policies (21%).
When asked how suppliers can better support the sector, operators prioritised greater flexibility on cancellation, deposit and attrition policies, earlier access to rates and inventory, faster response times and more group-friendly contracts. They also highlighted the need for trained staff, renewed commitment to the group market, and refreshed product offerings aligned with current traveller expectations.
DMOs urged operators to involve them earlier in itinerary planning, communicate throughout the trip lifecycle, share visitor numbers to quantify impact, consider lesser-known destinations and honour commitments to maintain trust.
Suppliers similarly emphasised the importance of clear and consistent communication, accurate passenger counts, advance planning, openness to new products and stronger engagement through fam trips.
Emerging trends in group travel
Tour operators see smaller and more flexible groups, immersive and experiential travel, and sustainability-focused tourism as the leading growth opportunities for the next three to five years. Interest is also rising in lesser-known destinations, slow travel, shorter itineraries and hub-and-spoke models. Long-haul markets, AI-driven personalisation and niche interests are also gaining momentum.
Heritage and history is the fastest-growing tour theme (55%), followed by food and drink, events and festivals, cruises, and active and adventure travel (29–31%). National parks, performance-related travel and agricultural experiences also show strong demand.
Luxury is the strongest-performing customer segment (49%), ahead of family and multigenerational groups, faith-based travel, women-only tours and solo travellers.
More personalised and flexible itineraries are shaping 2026 product planning for 53% of operators, followed by demand for small-group or private departures (41%), immersive experiences and comfort-driven travel.
Market performance and recovery timelines
For U.S. operators selling Canada, 54% report stable bookings for 2026, while 34% see a decline and 10% an increase. For overseas destinations, 49% report higher bookings for 2026, with 21% describing it as “a significant increase”. Only 13% report a decline.
U.S. suppliers and DMOs confirm a notable drop in Canadian visitors in 2025, with many reporting declines of over 10%. Overseas markets were more resilient, with limited impact for most suppliers and DMOs. Recovery expectations vary, with the majority expecting inbound recovery from Canada and overseas markets by 2027 or later.
Pricing outlook
Most NTA tour operators plan price increases for 2026, with 69% raising prices by 5–10% and 16% by more than 10%. Over half (54%) say they can no longer absorb rising vendor costs. Suppliers are also adjusting rates, with 46% increasing prices by 2–9% and 16% by 10–20% for 2026. Two-thirds of suppliers expect to raise prices again in 2027.
The survey confirms that collaboration and open communication between tour operators, DMOs and suppliers will be critical to navigating rising costs, supporting product development and ensuring the continued resilience of the packaged travel sector in the coming years.
