Oregon's Group Tour Market

The Oregon visitor industry has been actively involved in group tour business for many years. The term "group business" includes tour operators, wholesalers, receptive operators, group travel leaders, travel agents and their clientele. Market segments encompass international and domestic tours, intermodal, and fly/drive travel.

The group market has many advantages:

• 40 plus people are usually booked at once
  
• The business is easy to book, service and track
  
• Groups cause less wear and tear on the local infrastructure and are environmentally smart
  
• Groups have a strong economic impact in communities

However, along with these benefits, there are challenges:

• Most group tours travel on scheduled departures
  
• Itineraries tend to be inflexible and structured
  
• Facilities must usually be able to accommodate 40+ people at one time

There are several questions a business or community should ask themselves before they pursue the group tour market:

1. Can the hotels/motels in the area accommodate groups, and of what size? Do they accept vouchers? Will they direct bill?
   
2. Will the attractions in the area accept vouchers, and develop a group registration or entrance policy that is quick, efficient and welcoming?
   
3. Do restaurants have seating for approximately 40 people, or group seating areas? Are there set or limited ULs?
   
4. What is the distance to the next attraction (natural or man-made)? What is the competition?

When selecting the itinerary for a tour, the operator will seek the following:

• What is available and unique in the region
  
• The nature of the facilities or service
  
• Quality, customer service and price
  
• Deposits and billing information
  
• Frequent and open communication
  

Tour clients include, but are not limited to: seniors, youth, special interest groups (such as gaming enthusiasts, jazz lovers, square dancers, etc.) and international visitors. Tour operators reach these clients through direct mail, advertising, travel agents and consumer shows. They expect us, the business (supplier) or community (destination), to assist them with marketing, including tools to sell their tours (videos, brochures, slides, etc.), and to generate interest in the area.

Group Tour Facts

The following data is from a three-year research project conducted for the National Tour Association by the research firm Davidson-Peterson Associates, Inc. It is important to note that the "universe" of tour companies included in the study represents only a portion of the total tours conducted in Oregon. Therefore, the economic impacts included in this fact sheet are conservative; however, all of the major national tour companies are represented in the data. More information about the study is available from the Oregon Tourism Commission (503-986-0000).

Oregon Tour and Travel Task Force
The Oregon Tour and Travel Task Force ("Team Oregon") has developed a five-year strategic plan to pursue the group tour market, working together in a statewide effort to increase this market segment. For more information on Team Oregon, call Billie Rathbun-Moser, Oregon Tourism Commission, 503-986-0011.

Economic Impacts of Group Tours in Oregon

1994:	$26,635,559
($14,869,611 spent by tour operators; $11,765,948 spent by passengers)
1995:	$29,650,267
($17,240,979 spent by tour operators; $12,409,288 spent by passengers)

NOTE:1994 numbers were revised because of inaccurate data obtained from two hotel properties in 1993 and 1994.

U.S. Data, 1995

Total Economic Impact of Group Tours: $8.6 billion (up 8.8% over 1994)

Number of Tours:	510,552 (up 7.6% over 1994)
Number of Tour Passengers:	11.8 million (one-day tours) 9.4 million (multi-day tours)

Multi-Day Group Tours in Oregon

1994:	164,700 passengers	3,973 tours
1995:	173,483 passengers	4,504 tours
Average tour operator expenses:	$52.34 per person per day (excludes accommodations)

NOTE: 1994 data has been revised