Table of Contents
Overview
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- What you need to know
- Products covered in this Report
Executive Summary
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- The market
- Domestic holidays forecast to grow moderately in 2018
- Domestic holidays forecast to outperform overseas travelling
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- Figure 1: Forecast volume of domestic holidays taken by British residents (number of trips), 2013-23
- Growth of overseas holidays forecast to slow down in 2018 and 2019
- Spending on overseas holidays under pressure
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- Figure 2: Forecast volume of overseas holidays taken by UK residents (number of trips), 2013-23
- Significant increase in demand for holidays to Turkey at the expense of Spain
- Value of the Pound impacts holiday behaviour
- Holidaying intentions remain strong
- Companies and brands
- Hurtigruten plans to use dead fish as fuel for its cruise ships
- Air France-KLM looks to blockchain technology
- Virgin Holidays’ new travel shop in Milton Keynes is all about the experience
- The consumer
- Holidaying participation returned to usual level in 2018
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- Figure 3: Destinations visited on holiday in the past 12 months, 2014-18
- Activity holidays in the UK popular among young travellers
- Overseas cruise holidays predominantly undertaken by older consumers but big potential among Millennials
- Online customer reviews impact destination choice of many travellers
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- Figure 4: Holiday destination influencers, November 2018
- The market for lodging services has not yet reached its point of saturation
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- Figure 5: Plans for holidays in the next 12 months, 2015-18
- Younger generation most open to shopping experiences
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- Figure 6: Attitudes towards booking holidays, by age, November 2018
- Multigenerational holidays appeal to almost half of holidaymakers
- Interest in three-generation holidays highest among parents with young children
- The willingness to travel overseas for a multigenerational holiday is high
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- Figure 7: Considered destinations for multigenerational holidays, November 2018
- Hotels are perceived as relatively convenient and luxurious but less affordable and unique
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- Figure 8: Perceptions of accommodation types, November 2018
- Cruise sector challenged to show non-cruisers it offers good value for money
- What we think
Issues and Insights
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- More effort required to trigger consumers to travel overseas in 2019
- The facts
- The implications
- Huge potential for multigenerational holidays
- The facts
- The implications
The Market – What You Need to Know
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- Growth of holidays slows down due to economic uncertainties
- Domestic holidays forecast to outperform overseas travelling in the short term
- Growth of overseas holidays forecast to slow down in 2018 and 2019
- Package bookings grew faster than independent bookings for the first time since 2015
- Value of the Pound impacts holiday behaviour
- Holidaying intentions remain strong
Market Size and Forecast – Total
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- Growth of holidays slows down due to economic uncertainties
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- Figure 9: Forecast volume and value* of domestic** and overseas holidays taken by UK residents, 2013-23
- Economic uncertainties will put expenditure on holidays under pressure
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- Figure 10: Forecast volume of domestic* and overseas holidays taken by UK residents (number of trips), 2013-23
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- Figure 11: Forecast value* of domestic** and overseas holidays taken by UK residents, 2013-23
- Forecast methodology
Market Size and Forecast – Domestic
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- Domestic holidays forecast to grow moderately in 2018
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- Figure 12: Forecast volume and value of domestic holidays taken by British residents, 2013-23
- Domestic holidays forecast to outperform overseas travelling for the third year in a row
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- Figure 13: Forecast volume of domestic holidays taken by British residents (number of trips), 2013-23
- Figure 14: Forecast value* of domestic holidays taken by British residents, 2013-23
- Forecast methodology
Market Size and Forecast – Overseas
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- Growth of overseas holidays forecast to slow down in 2018 and 2019
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- Figure 15: Forecast volume and value* of overseas holidays taken by UK residents, 2013-23
- Spending on overseas holidays under pressure
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- Figure 16: Forecast volume of overseas holidays taken by UK residents (number of trips), 2013-23
- Figure 17: Forecast value of overseas holidays taken by UK residents, 2013-23
- Forecast methodology
Market Segmentation
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- Significant increase in demand for holidays to Turkey at the expense of Spain
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- Figure 18: Top 15 overseas holiday destinations for UK holidaymakers, H1 2017 versus H1 2018
- Package bookings grew faster than independent bookings for the first time since 2015
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- Figure 19: UK overseas holiday volume, by independent and package holidays, 2014-18
- Holidaymakers choose little and often
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- Figure 20: Volume for overseas holidays and domestic holidays, by length of stay, 2014-17
- Younger generation keen on taking shorter breaks
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- Figure 21: Volume, nights and spend for overseas holidays and domestic holidays, by age, 2017
- Healthy lifestyle could appeal to older consumers
Market Drivers
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- Value of the Pound impacts holiday behaviour
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- Figure 22: Pound versus euro and US Dollar, 1 April 2016-11 December 2018
- Holidaying intentions remain strong
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- Figure 23: Plans to book a holiday in the next three months, January-November 2016-18
- A no-deal Brexit would make overseas travel less seamless
- Tourism sector deal could put the UK as a travel destination more firmly on the map
- Data breaches impact trust people have in sharing data
Companies and Brands – What You Need to Know
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- Thomas Cook’s #noplaceforplastic campaign
- Hurtigruten plans to use dead fish as fuel for its cruise ships
- Air France-KLM looks to blockchain technology
- Skyscanner launched a booking feature for domestic train travel
- Virgin Holidays’ new travel shop in Milton Keynes is all about the experience
Launch Activity and Innovation
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- Brands are taking responsibility to fight pollution
- Thomas Cook’s #noplaceforplastic campaign
- Hurtigruten plans to use dead fish as fuel for its cruise ships
- Efficiency by blockchain technology
- Cathay Pacific uses blockchain technology to improve the customer experience of its rewards programme
- Air France-KLM looks to blockchain technology
- Innovations to make domestic train travel more appealing
- Government focuses on improving train passenger experience
- Skyscanner launched a booking feature for domestic train travel
- Historical buildings with a modern twist
- Modern Art built in a monastery and brewery
- Luxury hotel opens in former Chinese pit mine
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- Figure 24: InterContinental Shanghai Wonderland Hotel in former Chinese pit mine
- Shops are turning into enjoyable experiences to attract consumers
- Virgin Holidays’ new travel shop in Milton Keynes is all about the experience
- Travel Design Lounge hosts events in its full-service bar to let consumers discover
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- Figure 25: Travel Design Lounge in Omaha, Nebraska
The Consumer – What You Need to Know
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- Holidaying participation returned to usual level in 2018
- Activity holidays in the UK popular among young travellers
- Overseas cruise holidays predominantly undertaken by older consumers but big potential among Millennials
- Online customer reviews impact destination choice of many travellers
- Multigenerational holidays appeal to almost half of holidaymakers
- Cruise sector challenged to show non-cruisers it offers good value for money
Holiday Destinations Visited
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- Holidaying participation returned to usual level in 2018
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- Figure 26: Destinations visited on holiday in the past 12 months, 2014-18
- Celebration travel presents a big opportunity for holiday destinations
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- Figure 27: Destinations visited on holiday in the past 12 months, by country, November 2018
Types of Holidays Taken
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- Activity holidays in the UK popular among young travellers
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- Figure 28: Types of holiday taken in the UK, by age, November 2018
- Overseas cruise holidays predominantly undertaken by older consumers but big potential among Millennials
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- Figure 29: Types of holiday taken abroad, by age, November 2018
Holiday Destination Influencers
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- Online customer reviews impact destination choice of many travellers
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- Figure 30: Holiday destination influencers, November 2018
- Physical brochures bigger influencer than social media
- Younger generation takes the most aspects into consideration before deciding where to travel to
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- Figure 31: Holiday destination influencers, by age, November 2018
Holidaying Intentions
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- Holidaying remains a clear priority for Brits
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- Figure 32: Plans for holidays in the next 12 months, 2015-18
- The market for lodging services has not yet reached its point of saturation
Attitudes towards Booking Holidays
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- Younger generation most open to shopping experiences
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- Figure 33: Attitudes towards booking holidays, by age, November 2018
- Holidaymakers are comfortable with communicating via webchats
Multigenerational Holidays
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- Multigenerational holidays appeal to almost half of holidaymakers
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- Figure 34: Interest in multigenerational holidaying, November 2018
- Interest in three-generation holidays highest among parents with young children
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- Figure 35: Interest in multigenerational holidaying, by gender, age and children’s age, November 2018
- The willingness to travel overseas for a multigenerational holiday is high
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- Figure 36: Considered destinations for multigenerational holidays, November 2018
- England most considered destination for three-generation holidays
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- Figure 37: Considered destinations for multigenerational holidays, by country, November 2018
Perceptions of Accommodation Types
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- Hotels are perceived as relatively convenient and luxurious but less affordable and unique
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- Figure 38: Perceptions of accommodation types, November 2018
- Few people perceive holiday rental properties as luxurious
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- Figure 39: Perceptions of accommodation types – correspondence analysis, November 2018
- Cruise sector challenged to show non-cruisers it offers good value for money
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- Figure 40: Perceptions of cruise ships, by cruisers and non-cruisers, November 2018
Appendix – Data Sources, Abbreviations and Supporting Information
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- Definitions
- Abbreviations
- Consumer research methodology
- CHAID analysis
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- Figure 41: Interest in multigenerational holidaying – CHAID tree, November 2018
- Figure 42: Interest in multigenerational holidaying – CHAID table, November 2018
- Correspondence analysis methodology
Appendix – Market Size and Forecast
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- Volume forecast for total holidays
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- Figure 43: Forecast volume of total holidays (domestic* and overseas) taken by UK residents, 2018-23
- Value forecast for total holidays
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- Figure 44: Forecast value* of total holidays (domestic** and overseas) taken by UK residents, 2018-23
- Volume forecast for domestic holidays
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- Figure 45: Forecast volume of domestic holidays taken by British residents, 2018-23
- Value forecast for domestic holidays
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- Figure 46: Forecast value of domestic holidays taken by British residents, 2018-23
- Volume forecast for overseas holidays
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- Figure 47: Forecast volume of overseas holidays taken by UK residents, 2018-23
- Value forecast for overseas holidays
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- Figure 48: Forecast value* of overseas holidays taken by UK residents, 2018-23
- Forecast methodology
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