Table of Contents
Executive Summary
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- The market
- The domestic holiday market will recover at a faster pace
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- Figure 1: Forecast value of domestic holidays* taken by British residents (adjusted for COVID-19 on 13 July 2020), 2015-25
- Value of the overseas holiday market will recover quicker than volume
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- Figure 2: Forecast value* of overseas holidays taken by UK residents (adjusted for COVID-19 on 13 July 2020), 2015-25
- Impact of COVID-19 on the holiday market
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- Figure 3: Expected impact of COVID-19 on the UK travel market, short, medium and long-term, 13 July 2020
- Companies and brands
- TUI and Booking.com announce partnership for experiences
- Travelisto’s travel designers are digital nomads
- Market leader TUI introduces Holiday Promise
- Booking.com offers good value, but its mediator position poses a threat to its trustworthy image
- Jet2holidays again secures the highest share of users with an excellent experience
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- Figure 4: Key metrics for selected brands, March 2020
- The consumer
- Older consumers more likely to book holidays compared to the start of lockdown
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- Figure 5: Plans to book a holiday in the next three months, by age, February 2020 (fieldwork dates: 11-25 February), March 2020 (fieldwork dates: 19-30 March) vs June 2020 (fieldwork dates: 18-30 June)
- Airlines challenged to increase confidence in flying
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- Figure 6: Consumers’ confidence in activities, July 2020 (fieldwork: 2-9 July 2020)
- COVID-19 hit during a vital booking period
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- Figure 7: Holiday booking month, package vs independent, February 2020
- Smartphone overtakes tablet as second most popular booking method
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- Figure 8: How main holiday was booked, February 2019 vs February 2020
- Pressure on sustainable recovery of tourism will increase
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- Figure 9: Factors influencing choice of travel company, by age, February 2020
- Brands should be ready to engage with consumers through chat
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- Figure 10: Attitudes towards webchats and chatbots, February 2020
- Social media will play a vital role in the recovery of the holiday market
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- Figure 11: Inspiration from social media and Black Friday promotions, by age, February 2020
- Holidays without deposits more likely to appeal to younger travellers
- Older consumers are more likely to pay holiday booking by credit card
- What we think
Impact of COVID-19 on the Holiday Planning and Booking Process
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- The market
- The domestic holiday market will recover at a faster pace
- Value of the overseas holiday market will recover quicker than volume
- The consumer
- Older consumers more likely to book holidays compared to the start of lockdown
- Airlines challenged to increase confidence in flying
- COVID-19 poses both opportunities and challenges for travel agents
- Pressure on sustainable recovery of tourism will increase
- Companies and brands
- Travel companies will scale down capacity amid slow recovery
- Market leader TUI introduces Holiday Promise
- COVID-19: Market context
Issues and Insights
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- COVID-19 brings safety and flexibility to the forefront in the holiday planning and booking process
- The facts
- The implication
- The post-COVID-19 travel agent
- The facts
- The implications
The Market – What You Need to Know
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- The domestic holiday market will recover at a faster pace
- Value of the overseas holiday market will recover quicker than volume
- Uncertain economic outlook will lead to increased price-sensitivity
- Despite uncertainties, large proportion of consumers are saving for holidays
Market Size and Forecast – Domestic and Overseas Holidays
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- Short, medium and long-term impact on the industry
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- Figure 12: Expected impact of COVID-19 on the UK travel market, short, medium and long-term, 13 July 2020
- Slow recovery due to consumers’ concerns about their physical and financial wellbeing
- Long-term prospects for the holiday market are positive
- The domestic holiday market will recover at a faster pace
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- Figure 13: Forecast volume of domestic holidays* taken by British residents (adjusted for COVID-19 on 13 July 2020), 2015-25
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- Figure 14: Forecast value of domestic holidays* taken by British residents (adjusted for COVID-19 on 13 July 2020), 2015-25
- Figure 15: Forecast volume and value* of domestic holidays taken by British residents (adjusted for COVID-19 on 13 July 2020), 2015-25**
- Value of the overseas holiday market will recover quicker than volume
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- Figure 16: Forecast volume of overseas holidays taken by UK residents (adjusted for COVID-19 on 13 July 2020), 2015-25
- Figure 17: Forecast value* of overseas holidays taken by UK residents (adjusted for COVID-19 on 13 July 2020), 2015-25
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- Figure 18: Forecast volume and value* of overseas holidays taken by UK residents (adjusted for COVID-19 on 13 July 2020), 2015-25**
Market Drivers
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- Uncertain economic outlook will lead to increased price-sensitivity
- Brexit sentiment at a record low amid COVID-19 uncertainties
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- Figure 19: Level of concern over the impact of the EU referendum, July 2016-May 2020
- Consumers are concerned about what the future holds for their finances
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- Figure 20: Financial confidence in the year ahead, May 2019 vs May 2020
- Despite uncertainties, large proportion of consumers are saving for holidays
- Government relaxes travel advice and halts quarantine measures for selected countries
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- Figure 21: Top 15 destinations for overseas holidays taken by UK residents, by volume in 2019
Companies and Brands – What You Need to Know
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- TUI and Booking.com announce partnership for experiences
- Accor offers its guests access to medical support
- Travelisto’s travel designers are digital nomads
- Reduced demand forces hotels to experiment with different concepts
- Booking.com offers good value, but its mediator position poses a threat to its trustworthy image
- Jet2holidays again secures the highest share of users with an excellent experience
Market Share
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- Travel companies will scale down capacity amid slow recovery
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- Figure 22: Passengers licensed under ATOL protection, by top 10 ATOL holders, 2016-20
- easyJet launches summer sale to encourage bookings
- TUI and Booking.com announce partnership for experiences
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- Figure 23: Usage of selected brands, March 2020
Launch Activity and Innovation
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- Staying relevant amid travel restrictions
- Secret Escapes promotes luxury home and living offers
- Viator offers the option to book online experiences
- Brands demonstrate what they do to protect travellers
- Accor offers its guests access to medical support
- Airbnb encourages hosts to commit to its enhanced Cleaning Protocol
- Travel companies are tapping into video conferencing opportunities
- Kuoni launches video appointment service
- Travelisto’s travel designers are digital nomads
- Reduced demand forces hotels to experiment with different concepts
- Zoku transfers hotel rooms into working spaces
- Hotel in Sweden offers rooms for dining experiences
Brand Research
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- Brand map
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- Figure 24: Attitudes towards and usage of selected brands, March 2020
- Key brand metrics
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- Figure 25: Key metrics for selected brands, March 2020
- Brand attitudes: TUI seen as a brand with a good reputation that offers consistently high quality
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- Figure 26: Attitudes, by brand, March 2020
- Brand personality: loveholidays and On the Beach least strong brand personality as a result of a relatively low brand awareness
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- Figure 27: Brand personality – Macro image, March 2020
- TUI and Jet2holidays most closely associated with being welcoming
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- Figure 28: Brand personality – Micro image, March 2020
- Brand analysis
- Tripadvisor calls upon operators to provide more flexibility
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- Figure 29: User profile of Tripadvisor, March 2020
- Booking.com offers good value, but its mediator position poses a threat to its trustworthy image
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- Figure 30: User profile of Booking.com, March 2020
- Expedia lacks clear level of differentiation in the marketplace
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- Figure 31: User profile of Expedia, March 2020
- TUI’s benefits from trustworthy image, while it will be challenged to regain older consumers’ confidence in travelling
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- Figure 32: User profile of TUI, March 2020
- Jet2holidays again secures the highest share of users with an excellent experience
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- Figure 33: User profile of Jet2holidays, March 2020
- loveholidays challenged to raise its brand image
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- Figure 34: User profile of loveholidays, March 2020
- On the Beach challenged to improve the customer experience
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- Figure 35: User profile of On the Beach, March 2020
The Consumer – What You Need to Know
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- Older consumers more likely to book holidays compared to the start of lockdown
- Airlines challenged to increase confidence in flying
- COVID-19 hit during a vital booking period
- Smartphone overtakes tablet as second most popular booking method
- Pressure on sustainable recovery of tourism will increase
- Brands should be ready to engage with consumers through chat
Holiday Booking Intentions
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- Older consumers more likely to book holidays compared to the start of lockdown
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- Figure 36: Plans to book a holiday in the next three months, by age, February 2020 (fieldwork dates: 11-25 February), March 2020 (fieldwork dates: 19-30 March) vs June 2020 (fieldwork dates: 18-30 June)
Confidence in Travelling
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- Airlines challenged to increase confidence in flying
- COVID-19 expected to boost interest in self-catered accommodation
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- Figure 37: Consumers’ confidence in activities, July 2020 (fieldwork: 2-9 July 2020)
Holiday Booking Month
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- COVID-19 hit during a vital booking period
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- Figure 38: Holiday booking month, package vs independent, February 2020
Holiday Booking Channels
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- Smartphone overtakes tablet as second most popular booking method
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- Figure 39: How main holiday was booked, February 2019 vs February 2020
- COVID-19 is likely to lead to an increase in online bookings
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- Figure 40: How main holiday was booked, by age, February 2020
- Group-based touring formats have to adapt
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- Figure 41: How main holiday was booked, by types of holiday, February 2020
- COVID-19 poses both opportunities and challenges for travel agents
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- Figure 42: How main holiday was booked, package vs independent, February 2020
Purchase Drivers When Choosing a Travel Company
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- Pressure on sustainable recovery of tourism will increase
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- Figure 43: Factors influencing choice of travel company, by age, February 2020
Attitudes towards Online Communication Tools
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- Brands should be ready to engage with consumers through chat
- Companies should either opt for a high quality chatbot or no bot at all
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- Figure 44: Attitudes towards webchats and chatbots, February 2020
Attitudes towards Holiday Planning
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- Social media will play a vital role in the recovery of the holiday market
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- Figure 45: Inspiration from social media and Black Friday promotions, by age, February 2020
- Vast majority of parents aged 16-44 living in cities browsed Black Friday holiday deals
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- Figure 46: Browsing holiday deals during 2019 Black Friday promotions – CHAID analysis, February 2020
Attitudes towards Holiday Payments
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- Holidays without deposits more likely to appeal to younger travellers
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- Figure 47: Preferred holiday payment option, by age, February 2020
- Older consumers are more likely to pay holiday booking by credit card
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- Figure 48: Preferred holiday payment method, by age, February 2020
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- Figure 49: Attitudes towards financial protection of credit card payments, by age, February 2020
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
- CHAID methodology
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- Figure 50: Browsing holiday deals during 2019 Black Friday promotions, CHAID analysis, February 2020
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