Group Travel Trends: The Evolution of Group Travel

Is group travel dead?

My answer: yes and no!

Group travel in its most traditional sense – loading 50 seniors on a bus and carting them around for several days on a sightseeing tour with stops for dining and maybe a show – is slowly going away. It is being replaced by smaller, more active groups with varied interests seeking flexible travel options.

Through my discussions with our TAP Tour Operator Partners in recent years, recognizable trends continue to emerge. Let’s take a look at the key themes in the evolution of group travel.

The New Dynamics of Group Travel

It used to be that if your business or attraction could not accommodate at least 50 people all at the same time, you were not a fit for the group travel industry. That old way of doing business is a thing of the past. In the post-pandemic world of group travel, the way we think about a group has been forever changed.

Smaller Group Sizes

Travelers prefer smaller groups, and they are willing to pay a higher price for a bus that is half full, allowing for more personal space and an intimate experience. They seek more relaxed and slower-paced itineraries that focus on deeper experiences with fewer destinations per trip.

Implications for businesses & attractions

Think about the varying sizes of groups you want to attract and structure your price discounts accordingly. A smaller group may purchase more of your products because they will have more time to spend in your shop. They are also more likely to tell their friends and promote return visitation when they have a deeper connection.

Businesses and attractions working with smaller groups should consider the needs of the tour operator that is packaging your product. The tour operator is marketing your business for you, and they need to make a margin on the sale. Gone are the days of offering group discounts on groups of 35-50. To truly gain the benefits of this lucrative market, your tour partners require group discounts even if the group size is 12, 20 or 30 people. One way to enhance your offering and charge a little more is to add on unique experiences that a traveler cannot buy directly. This will give the tour operator a competitive edge in marketing your business as part of their package.

Group Demographics

Once thought of as only catering to retired senior citizens, the group tour industry is quickly changing to attract a wider variety of travelers. Programs with more choices and freestyle itineraries attract a younger customer who loves to have someone else do all the trip planning.

A sharp rise in female travelers is driving destinations to rethink their group offerings to appeal to this niche group. This market requires different room configurations – think singles instead of double doubles. They also look for unique experiences that appeal to a broad range of interests from women’s history to adventure to food and culinary.

Another niche market that is picking up steam is the Black traveler who seeks Black culture, history, and experiences.

Reinventing Group Travel Products

The Rise of New Destinations and Attractions

Tour operators are building programs to meet consumers’ demand for off the beaten path and lesser-known destinations. Travelers are still checking off bucket list items, and a visit to a big city is still on the list – however, the experience has evolved beyond the main attractors. Smaller destinations that may not previously have been able to attract travelers away from the better-known destinations are seeing a surge in interest from group tour operators. Itineraries and travel products include more outdoor activities, smaller towns, and out-of-the-ordinary, quirky places.

Implications for destinations big & small

This group travel trend is truly exciting for all destinations large and small. It’s good news for big cities that want to spread the visitor economy around to their little-known neighborhoods. Groups want to go deeper into the culture and people of the area. This is a perfect opportunity to show off unique neighborhoods and the businesses within them.

The rise in popularity of learning experiences provides an opportunity for small destinations to tap their local experts in new ways. From naturalists sharing a favorite hike to craftsmen, crafters and creators showing off their trade, programs that teach or offer hands-on demonstrations are becoming favorite additions to trips.

No matter the size of the destination, storytelling continues to be an important part of the trip. Think beyond the step-on guide or the experience itself. Younger travelers want to know more about the full array of what is happening at the destination. They are seeking interpretation of the natural surroundings and the stories behind them.

New Active Itineraries

As group demographics have expanded to include younger travelers, tour operators are offering more active itineraries – often with more flexibility, enabling a group to arrive in a destination and split up to explore on their own. Outdoor recreation has increased in popularity, leading to more nature focused itineraries, exploring national parks and natural wonders. Small group expeditions are a popular way to experience true adventure with the added benefits of a tour guide, and the convenience of a pre-planned itinerary that you can simply book and go.

Exclusive Experiences

Tour operators are prioritizing experiences that travelers cannot get on their own, to help attract new customers. Themed events and dinners are very popular, and many DMOs and tour operators are working together to add these special touches to their itineraries – and sometimes even surprising their guests with an unexpected “mystery” experience that is kept secret until it happens.

Steve Vance, from the Grand Adirondack hotel in Lake Placid NY, shared with us a great example of a mystery experience:

The Grand Adirondack Hotel in Lake Placid includes a complimentary welcome reception for each motor coach group tour on arrival. This usually includes drink vouchers per person and a cheese cracker board. Where the mystery “wow” factor happens is after welcoming the group: we announce that we are going to play a mini version of the old TV show “What’s My Line” adapted to: “What’s my Olympic Sport” and “will the mystery guest sign in please.” We pre-schedule a former Olympic Champion/Medalist that lives in Lake Placid to be behind the curtain in the room. We then pre-select several volunteers from the group to play the game. We then give clues to the participants about which Olympic Sport the athlete competed in. The first contestant that correctly “buzzes in” with the correct answer wins a prize from the hotel. The Olympic Athlete “appears” and meets the entire group for a quick presentation, meet and greet, autographs and photos with the athlete/Olympic medal.

Rail Travel for Groups

Rail journeys are a growing travel method for both independent and group travelers. Many tour operators are building group itineraries around rail journeys, or incorporating a rail component.

One of the key travel trends driving the resurgence of rail travel is the growing interest in slow travel—a movement focused on immersing oneself in a destination, rather than rushing through it. Travelers are increasingly seeking experiences that allow them to savor the journey itself, and rail travel offers a unique opportunity to witness stunning landscapes, visit off-the-beaten-path communities, and enjoy a more relaxed pace.

Sustainability has also become a major factor, with more people opting for eco-friendly transportation options. Rail travel produces significantly lower emissions compared to air or car travel, making it a top choice for environmentally-conscious travelers.

In addition, the focus on supporting local economies by visiting small towns and rural areas accessible only by train has added to the allure of rail travel, as it connects travelers with authentic, less commercialized experiences.

DMOs are Important Partners

In 2022, tour operators went from zero to one hundred overnight. With many bookings from 2020 being pushed years ahead, they were struggling to keep up with servicing rebooked business and managing new bookings from travelers who had pent-up demand. At the same time, tour operators were struggling with the same staff shortages and taxed resources as many of the businesses in hospitality and leisure. All this while trying to rebuild relationships with suppliers who had experienced their own staff turnover and are on a learning curve.

DMOS who knew the group tour market jumped in to help rebuild group travel in many ways:

• Training new team members at hotels, restaurants, and attractions where tour operators visit, because there was no one there to mentor them
• Educating stakeholders’ new employees who were hired post-pandemic and did not understand the tour and travel market or why it was worth their time.
• Seeking creative alternatives for dining such as privately-catered experiences or boxed meals to take to a park, since there was a shortage of suitable meal stops due to high demand for dining and staff shortages

While many of these challenges have eased off, the need for a strong partnership with local DMOs is still clear as day. Working together to rebuild the group travel industry has shone a light on the mutual benefits of collaboration within the tour and travel eco-system.

Collaboration is the Key

The tour and travel industry has always been a collaborative effort between buyers, suppliers, and DMOs. As the group travel product is evolving and the needs of the group tour are changing, DMOs are helping tour operators develop entire programs. They are curating experiences from food tours to meal and entertainment options. They are leading the way in developing new areas and off the beaten path product such as the Northern Lights of Canada. These are assets that can’t accommodate a full bus, but work for smaller groups. DMOs are going above and beyond, acting as tour planners, being creative and working across city, county and state borders to create new product for tour operators.

Implications for DMOs

Destinations who are committed to the group travel industry will see new opportunities come their way as they double-down on being great partners to tour operators. DMOs who understand the importance of remaining flexible and continuing to change with the industry will be the leaders who help shape the future of group travel while bringing lucrative business to their communities.

At TAP, our community embraces collaboration and win-win relationships. Find out how TAP can help you connect with tour operators and travel buyers.