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Business has increased for a majority of 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, according to a new report from the National Tour Association (NTA).
In a survey conducted in September by the association, 58 percent said their company will finish the year with sales that are better or much better than 2023, while only 17 percent said their sales dropped this year.
Looking ahead to 2025, more than half of NTA buyers (54 percent) said their company is poised to perform better than in 2024—with 14 percent of them saying much better—and 39 percent expect to see a similar amount of business.
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. Operators cited higher rates as the most serious factor they face, followed closely by unfavorable terms. Other factors included 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 NTA President Catherine Prather. “Before COVID, a normal year-over-year increase for supplier rates was 5 percent, 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.”
Additional report highlights:
• Nearly two-thirds of responding operators (65 percent) said that high rates, unfavorable terms, or both have led them to change suppliers in a destination.
• Almost half (47 percent) have changed to a different destination that provides a similar experience.
• And more than four out of every 10 operators (44 percent) said they have dropped a tour altogether because of suppliers’ rates and/or terms.
These issues will be addressed at NTA’s Travel Exchange event in Huntsville, Alabama, this November 17-20. More information can be found at ntatravelexchange.com.
“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,” Prather 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.”
Visit ntaonline.com for more information and the full report.
[10.22.24]
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With on-point education and speakers, an action-packed show floor, and some high-stakes nightlife, we’ve put the wraps on the 2024 CD/NLA Show, held October 13-16 at the Gaylord National Resort & Convention Center just outside of D.C. Many thanks to all our attendees, exhibitors, speakers, moderators, mentors, committee members, and sponsors—including Title Sponsor Volvo—for making the show such an unbelievable event for everyone!
Nearly 1,200 industry professionals from around the globe were in attendance, which not only gave us the opportunity to meet countless new faces, but also let us reconnect and spend time with many of our long-standing industry friends and peers.
“Just got back from an amazing CD/NLA in D.C.! It was fantastic to connect with so many great friends, family, and associates in the business. The energy was incredible, and I loved catching up with everyone. Can’t wait for the next one!” posts Andy Bouayad of Fox Limousine.
Our stellar CD/NLA Show Education Committee—led by co-chairs Jason Sharenow of Broadway Elite Worldwide and Karl Guenther of Statement Limousine—put together a curriculum that was loaded with timely and valuable sessions that proved to be beneficial to operators of all sizes and markets. Whether it was learning to safeguard against cyberattacks, harnessing the strengths of a multigenerational workforce, understanding the fundamentals of AI, taking part in our numerous conversation-stirring roundtables, or even learning directly from the education committee about what goes on behind the scenes of the show, the classrooms in National Harbor were loaded with immediate takeaway designed to improve your operation. Also, thanks to Coffee Sponsor Buffalo Limousine and A/V Sponsor Limo Anywhere for making it all possible.
But, as always, networking was the name of the game, as opportunities to share and learn among peers were in abundance. Dedicated events like our bustling Affiliate Central Global Partner Forum (sponsored by Volvo), perennial favorite Operator Mentoring Program, and always-popular Women in the Industry Networking Event were all met with raves from our attendees. Moreover, a revamped Association Summit dealt specifically with the current insurance crisis faced by operators around the country, with a panel of experts weighing in. With this lineup, and ample opportunities for some face-to-face time during breakfast or at the Gaylord’s bars & restaurants, CD/NLA Show veterans and newcomers alike made some fresh connections.
“The CD/NLA Show was a remarkable accomplishment, offering abundant opportunities to reconnect with industry professionals, esteemed mentors, and personal friends, culminating in a memorable after-party and exceptional show experience,” writes Deep Singh of Got Luxury Ride.
“My experience during the Operator Mentor Program was phenomenal. They gave me the targeted advice that I needed in order to scale up my chauffeur service to the next level. Thank you!” says Tamara Fitzgerald of AET Transportation.
The networking and camaraderie continued into sundown as our rocking nightlife raised the roof. On Sunday evening, attendees were welcomed onto the show floor for an opening night soiree that not only offered previews of the vehicles, products, and services available at the convention, but also some fun courtesy of magicians, stilt walkers, and even contortionists! The following night, we got a slice of Vegas in National Harbor as we hosted our first-ever Casino Night party. Attendees sat down at their favorite game of chance as they gambled with fun money to earn raffle tickets good for some valuable prizes, including passes to CD/NLA events.
“This year's Fall Show was very well attended and brought in many of the leaders of the industry. The location and the quality of the Venue were fantastic,” says Steve Edelmann of ROYALE/Cabot Coach Builders.
“What an amazing show. I met so many new people at the roundtable events. The Casino Night was a blast. You guys hit a home run yet AGAIN! See you all in Vegas,” says Becky Laramee of All Points Limousine.
“Congratulations on another great show and doing your best to keep the industry together,” says Robert Rodriguez of First Class Destination Solutions.
If you missed this fall’s CD/NLA Show in National Harbor, have no fear. Things are already revving up for the return of the CD/NLA Show in Las Vegas! Join us February 23-26 at the spectacular Paris Hotel & Casino for four days of world-class education and networking, and stay tuned to cdnlavegas.com for upcoming details.
We’ll have a recap and photo gallery in the next issue of Chauffeur Driven.
[10.22.24]
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Popular Chicago-based transportation company, Windy City Limousine & Bus, founded by George Jacobs, has been acquired by TBL Group, the Houston-based transportation logistics management organization comprising ECHO AFC Transportation and owned by CEO John Ferrari. The deal was announced last week in Bus & Motorcoach News.
According to the article, Jacobs, CEO, will remain with the company through the transition along with President Kathy Kahne. The company will be known as ECHO Windy City moving forward.
Jacobs launched Windy City in 2006 after coming out of retirement. He told Bus & Motorcoach News that he had been considering the sale for more than a year and was struggling to find a potential buyer who would be the right fit for his company but especially his team, many of whom helped Jacobs launch Windy City from the beginning. The CD Hall of Fame inductee had already founded and sold another company in the past—American Limousine, which was sold to Carey—so he wanted to avoid the issues that arose following the previous acquisition. After being connected with Ferrari through mutual friends, they found that the businesses had a lot in common, including a focus on motorcoaches. Both businesses are known to have large motorcoach fleets in their respective markets.
“In two short weeks, we have already learned so much from Team ECHO AFC. This marriage will work really well. We think alike and have the same goals,” says Jacobs. “They got a big job in California where we sent nine chauffeurs out there to fulfill it. We have been doing something for years that will save them many thousands of dollars in Texas. Like drafting on a racetrack, we can each do more working together. My team is thrilled.”
Throughout its history, Windy City has also acquired several companies. Among its most impactful were the acquisitions of Your Private Limousine, Deerbrook Limousine, and Chicago’s Transportation Group, all of which took place in 2017.
Ferrari, who has been in the industry for more than 30 years, has also acquired several companies over the decades. In addition to ECHO AFC, East Coast Transportation is among the many companies under the TBL Group, which operates in Northeast Florida and is now known as ECHO East Coast Transportation. ECHO AFC celebrated its 30th anniversary in 2022. According to the TBL Group website, their “mission is to revolutionize the transportation and logistics industry by creating a seamless and integrated network infrastructure across the nation.”
Visit windycitylimos.com or tblgroup.co for more information.
[10.22.24]