An unexpected war, continued technological disruption and impending generational change are introducing new challenges into the group travel industry for 2026 and beyond. The Group Travel Leader spoke with the leaders of four tourism associations to get their perspectives on these challenges, as well as opportunities these developments may present for tour companies and travel suppliers.

Carylann Assante, CEO, Student and Youth Travel Association (SYTA)

Terry Dale, President and CEO, United States Tour Operators Association (USTOA)

Fred Ferguson, President and CEO, American Bus Association (ABA)

Catherine Prather, President, National Tour Association (NTA)

The war in Iran caused unexpected increases in fuel costs this year. How are your members grappling with the ramifications of that? Is it making any impact on demand or future sales? 

Dale: At the moment, we are looking at closing out 2026 in a very solid, healthy position. But I think it all goes back to the American traveler, who we used to characterize as being risk averse. They’re all in when it comes to travel, and they may forego buying that new refrigerator that does amazing things, but they’re not going to forego their trip. So, ’26 looks good, and ’27 pre-sales are also very healthy.

But, you know, the fuel surcharges and increases in supplemental costs haven’t had a huge impact. I think my members absorb a lot of these incremental costs.

Prather: The war in Iran has just made it particularly challenging. And while most tour operators are saying that the increased fuel prices and then the resulting fuel charges are like the biggest challenge, the entire supply chain is affected.

What really helps is if there’s transparency in that pricing, in those percentages, and if a motorcoach operator can say, “This is how we do it.” For example, one of them actually uses the AAA diesel fuel gauge within their state. So that is just a great way of really being very transparent.

Ferguson: In the second quarter of this year, we saw more miles driven. Fewer Americans leaving for international trips, which kind of shows you that people are still deciding to travel and take trips, but you’re seeing more domestic-based trips happening. Because when you’re traveling by car or by bus, you can control more of your total travel budget. Airfare is such a huge ticket price, and the average airfare increase is 26% in the second quarter. So, we have actually benefited from domestic leisure travel through the higher fuel prices.

Assante: There was some fear as some of the motorcoach companies increased prices. What I do think is a positive is that it firmed up relationships between the group travel people and their motorcoaches, meaning those who were regular clients of the motorcoach companies and were good partners did not experience those increases as badly.

We are booking 12 to 18 months out. Students are fundraising for those prices. We can’t just drop a couple hundred dollars on a student trip per student. On the airline side, some of those longer haul flights are definitely being impacted. Maybe not for 2026, but it’s definitely impacting quotes for ’27 and ’28.

There are a number of new players in the tours and experiences space now, from online travel agencies like Viator and GetYourGuide to Airbnb Experiences and even AI planning assistants. Do any of them represent a significant threat to established tour companies? Do they pose any interesting opportunities?

Prather: The typical professional, multiday tour operator is not impacted by these new players, yet I feel they’re also not taking advantage of them either. The senior traveler, 60 and older, is the primary client. And the current generation of senior travelers, they’re not using OTAs for multiday travel.

But overall, we need to figure it out so that these entities are not threats. Yes, they’re disruptors. They’re not threats, though. So how can we take advantage of them?

Assante: We have had a number of players in that technology space reach out to us, but what really is the key is that you cannot actually purchase group tickets through any of them. So, in our space, it really makes it challenging because they just can’t sell volume.

I think where it does impact us is when the customer is shopping for pricing. They’re going online and seeing all these prices, and then they come to us and want the same price. And they don’t understand dynamic pricing — that just at that moment, you might be seeing the cost of a Broadway ticket is X. But when you actually go to your dates and what you want and your time, it might be twice as much.

Dale: It will definitely cross our path, and we are aware, but we don’t know to what extent it’s going to impact us. My dentist in Manhattan is in his late 30s. He and his wife had just returned from a trip, and I asked, “How did you decide upon going to Croatia?” And he said, “Well, we went to AI and researched. We went to the travel advisor. She recommended a tour operator.” So, I said, why? And his response was, “We don’t have time to make a mistake.”

So, even though there are more options out there for the consumer to consider, our value proposition only continues to grow.

Ferguson: I think any business today has to be paying attention to innovators and disruptors. But I think all companies are trying to figure out, first and foremost, how do they own the customer relationship first? It’s very difficult to go up against a platform-only company that only is trying to be kind of top-of-funnel marketing with very low fixed costs because they’re not running buses or not running tours.

And I just think technology today is a two-edged sword. It’s creating more opportunities for middlemen to enter, but it’s giving operating companies more tools at their disposal to have a better digital front.

We’re within a few years of significant generational change in group travel’s core constituencies, as Gen X nears retirement and Gen Alpha hits the typical age range for student travel. How might those generational shifts affect the kinds of trips our industry offers and the way we operate them?

Assante: I think in the student space, you have the next generation of teachers. The teachers are no longer 55, they’re 35. There’s a good chance they have studied abroad. They’re worldly. You have to win them over the way they want to be communicated with and what kind of trips they’re interested in.

I think from a student perspective, we’re seeing, as a result of the pandemic, slower itineraries. The kids seem to need more downtime. They seem to need a little bit less stress in the running around.

Ferguson: I think where we show up and how we show up digitally will matter. Across tour or bus companies, part of their evaluation of us is just what do we look like? And what are we talking about online? And what does our social stories say about us? I think every company is going to need to increase their digital footprint.

So, our companies need to elevate their game in explaining who they are, what they do and why they do it.

Prather: As the generations shift, they’re not going to be the same. They’re not going to have the same needs and desires because with each generation comes their tendencies. And I definitely feel that with every generation, you’re going to find people who want or need community and also want or need the security of a group and working with a professional. So, to me, group travel will never go away.

Maybe a shift might be to continue to see the group sizes not grow larger, but have a smaller group, perhaps more private tours. And I think a tour leader is really going to have to do a good job at reminding these busy professionals who want to travel, want to have amazing experiences, that you’re going to see and do more with that travel professional.

Dale: I’m seeing women-only tours and wellness as a theme of tours or packaged vacation travel. Perillo just announced their first women’s-only tour program. I think it just indicates to me that we know what to create for the next market, or at least as the market evolves and changes. And that’s why we’ve survived. When I see these types of programs and creativity in product development, it tells me we have longevity.

What does the landscape look like for new tourism entrepreneurs? Do you see new and innovative entrants coming into our ecosystem? Are there things we can do as an industry to attract more and help them engage more deeply?

Ferguson: I live in Loudoun County, Virginia. There are two companies in particular that are doing these highly curated, niche-based tours. And one is the historical tour, and it’s usually bus-based, and they’re going to a mix of, like, Revolutionary War and Civil War historical sites and wineries. So, they’re mixing this kind of historical entertainment. It’s fascinating to see how they’re growing and expanding. I love following what they’re doing.

Dale: I’m certainly seeing innovation within not only tour companies, but also associate members and suppliers. The thing that I’m seeing more and more of is high touch, high human experience. I just met a woman who started a company. If you’re going to Thailand, your operator can send you a box of food in advance that you prepare with your family in preparation of going for the Thailand experience. So, it’s just building anticipation and momentum, and it appears to me that she’s making a good go of it. Those kinds of entrepreneurs are out there.

Assante: In the school group market, there is growth for kids who aren’t in sports, who aren’t in music. E-gaming is now a high school sport. So, is there an opportunity to travel kids to these new e-gaming locations, incorporating that?

I do think I have had more calls from investors who want to buy tour operator companies. We are reaching tech entrepreneurs, people who want to own a business, who traditionally may not have thought about a student travel company or a travel company. I’ve had a lot more calls with those kinds of entrepreneurs.

Prather: An example would be an experience provider, someone who is providing a component of a multiday tour. Does that entity want to evolve into a multiday tour operator?

It really takes two characteristics: imagination and passion. Using your imagination to go somewhere and imagine things that aren’t there, but then you’re putting your passion behind it to create an experience that your clients would be blown away by. So, it’s finding that person who wants to work really hard, may not get rich at all, but becomes very rich in the partnerships and friendships.