Independent bookings dominate the holiday market, but package bookings are still going strong in 2016. However, while pent-up demand for holidays overseas is finally being released, consumers are still somewhat cautious. The means that there is still demand for aggressively priced package holidays offering security and staggered payment models.

However, going towards 2020, it is likely that consumers will move towards independent and dynamic bookings due to increasing consumer confidence, increased financial protection when booking from separate providers and new independent booking platforms coming to market.

Pure package providers should look to make package bookings a more customisable and creative process. Brands must now compete on experiences as well as price to gain a competitive advantage. As long as the booking process is clutter-free and functional, package providers can experiment with customisation and personalisation, mobile and smart TV apps, interactive YouTube videos and even virtual reality technology.

This Report examines the habits and attitudes of British adults concerning package and independent holidays taken both in the UK and abroad. A holiday must constitute at least one overnight stay. The business travel market is not reviewed in this Report.

For the purposes of this Report, Mintel defines a package holiday in conjunction with the International Passenger Survey (IPS) as an ‘advertised inclusive tour or package holiday’. A package holiday is considered to be a holiday in which a return fare and accommodation are purchased from one provider, for a single price.

Other elements, such as meals or excursions, are not essential to the definition of an inclusive tour.

In The Consumer sections of this Report we have two types of package holiday, pure package and dynamic package. These are defined as follows:

• Pure package: Travel and accommodation booked together at the same time with only one total price shown (ie no breakdown costs shown).

• Dynamic package: Travel and accommodation booked together but separate prices shown for each, or travel and accommodation booked separately but from the same retailer and within 24 hours.

• An independent holiday is one in which the traveller organises and books transport and accommodation from separate sources (eg a Channel ferry crossing and a caravan site in France).

For standard travel and tourism definitions, see Appendix.