Table of Contents
Executive Summary
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- Impact of COVID-19 on the UK travel market
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- Figure 1: Short-, medium- and long-term impact of COVID-19 on the UK travel market, 26 February 2021
- The market
- Strong correlation between financial situation and holidaying behaviour
- Value of holiday market will recover but environmental concerns will see conflicted feelings intensify
- UK opens consultation on the implementation of CORSIA
- Companies and brands
- The shift from carbon-neutral to climate-positivity and taking a longer-term approach
- Lonely Planet partners with Withlocals to expand carbon-neutral tours
- New Zealand inspires travellers to stop taking photos under the social influence
- The consumer
- Brits do not intend to stop taking holidays in the coming years
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- Figure 2: Destinations visited for a holiday vs intentions to visit, November 2020
- Holidaymakers intend to take fewer breaks once the outbreak is over
- One in four of those planning to take fewer holidays intend to do so because of environmental concerns
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- Figure 3: Reasons for intending to take fewer holidays, November 2020
- Travel market will remain highly price-driven
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- Figure 4: Main reasons for choosing travel company, November 2020
- Decarbonisation and recycling still seen as the biggest ethical travel priorities
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- Figure 5: Ethical travel priorities, November 2020
- The majority have a good understanding of what carbon-neutral means
- Majority of travellers open to minimising impact on the environment
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- Figure 6: Attitudes towards ethical travel, November 2020
- The greatest opportunities lie in connecting travellers with local culture and nature
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- Figure 7: Ethical travel opportunities, November 2020
- Ethical traveller segments
Issues and Insights
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- COVID-19 will boost longer stays…
- …and visits to less crowded places
- Ethical travel essential to protect future growth of the travel industry
The Market – Key Takeaways
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- Travel bans have raised awareness of the impact on the environment
- Few Brits are planning to cut back on travel because of environmental concerns
- Accelerated growth once the economy has recovered will put pressure on travel companies to take action
- UK opens consultation on the implementation of CORSIA
Market Background
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- Staycations will be in high demand once restrictions get lifted
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- Figure 8: Short-, medium- and long-term impact of COVID-19 on the UK travel market, 26 February 2021
- COVID-19 hits after holiday market reaches record heights
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- Figure 9: Volume and value* of domestic holidays taken by British residents, 2015-20
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- Figure 10: Volume and value* of overseas holidays taken by UK residents, 2015-25 **
- Staycation boom expected once measures are relaxed
- Value of holiday market will recover but environmental concerns will see conflicted feelings intensify
- Learnings from the last recession
- Financial constraints led to a staycation boom
- Environmental concerns took a temporary backseat due to financial concerns
- Share of long-haul travel increased as affluent travellers’ finances were hit less hard
Market Drivers
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- UK opens consultation on the implementation of CORSIA
- Despite lobbying, APD is set to increase for long-haul flights
- Surroundings; one of the seven key drivers for consumer behaviour
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- Figure 11: Key factors driving consumer behaviour around Surroundings, July 2020
- Younger consumers expected to become even more price-driven
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- Figure 12: Changes in financial situation, November 2019-January 2021
- Accelerated growth once the economy has recovered will put pressure on travel companies to take action
Companies and Brands – Key Takeaways
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- TripAdvisor, British Airways and Premier Inn seen as relatively ethical
- Reducing carbon emissions: from carbon-neutral to climate-positivity and low-carbon growth
- Inspiring tourists to go off the beaten track
- Connecting travellers with local culture and nature
Brand Research
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- TripAdvisor, British Airways and Premier Inn seen as relatively ethical
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- Figure 13: Ethical image of travel brands covered in Mintel’s brand research, Jun 2019-Nov 2020
Launch Activity and Innovation
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- Reducing carbon emissions
- Intrepid takes longer-term approach by aligning targets with limiting global warming to 1.5°C
- easyJet and United Airlines help to accelerate the development of electric aircraft
- Tackling food waste
- Emirates to use AI to reduce food waste by 35%
- Inspiring tourists to go off the beaten track
- New Zealand inspires travellers to stop taking photos under the social influence
- Connecting travellers with local culture and nature
- Lonely Planet partners with Withlocals to expand carbon-neutral tours
- Natural Britain launched to display ethical travel experiences
The Consumer – Key Takeaways
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- Brits do not intend to stop taking holidays in the coming years
- Decarbonisation and recycling still seen as the biggest ethical travel priorities
- Majority of travellers open to minimising impact on the environment
- Ethical traveller segments
Impact of COVID-19 on Consumer Behaviour
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- Travel bans have raised awareness of the impact on the environment…
- …but pent-up demand for travel remains strong
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- Figure 14: Most desired activities once the current social distancing measures are relaxed, 4-12 February 2021
- A change in priorities could pose a threat to ethical behaviour
- When overseas travel bounces back, environmental concerns will intensify
Holidaying Intentions – Participation
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- Brits do not intend to stop taking holidays in the coming years
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- Figure 15: Destinations visited for a holiday vs intentions to visit, November 2020
- The desire to travel further afield remains strong
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- Figure 16: Holidaying intentions, by destination and demographics, November 2020
- Lack of knowledge how to minimise impact when travelling overseas
Holidaying Intentions – Frequency
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- Holidaymakers intend to take fewer breaks once the outbreak is over
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- Figure 17: Changes to holidaying frequency once the coronavirus outbreak is over, November 2020
- The intention to go on holiday less often is mainly driven by financial concerns
- One in four of those planning to take fewer holidays intend to do so because of environmental concerns
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- Figure 18: Reasons for intending to take fewer holidays, November 2020
- Majority still keen on taking multiple shorter breaks throughout the year
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- Figure 19: Preference for short vs long breaks, November 2020
Purchase Drivers when Choosing a Travel Company
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- Travel market will remain highly price-driven
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- Figure 20: Main reasons for choosing travel company, November 2020
- Ethical behaviour will grow in importance
- Companies challenged to help travellers deal with conflict of interests
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- Figure 21: Importance of a good environmental policy when choosing travel company, by age, November 2020
Consumer Priorities for Ethical Travel
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- Decarbonisation and recycling still seen as the biggest ethical travel priorities
- Fear of returning to busy places
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- Figure 22: Ethical travel priorities, November 2020
- The majority have a good understanding of what carbon-neutral means
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- Figure 23: Understanding of carbon offsetting and carbon-neutral, November 2020
Attitudes towards Ethical Travel
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- Majority of travellers open to minimising impact on the environment…
- …but some fear the impact on their holiday experience
- Inspiring travellers will be key to make the travel industry greener
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- Figure 24: Attitudes towards ethical travel, November 2020
- Awareness of individual travel companies’ efforts to protect the environment is low
Ethical Travel Opportunities
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- The greatest opportunities lie in connecting travellers with local culture and nature
- Growth potential for night trains and rail itineraries
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- Figure 25: Ethical travel opportunities, November 2020
Ethical Traveller Segments
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- Figure 26: Ethical traveller segments, November 2020
- Hard ethical travellers
- Soft ethical travellers
- Wannabe ethical travellers
- Non-ethical travellers
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- Figure 27: Age profile of ethical traveller segments, November 2020
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Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
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