UK Holiday Planning and Booking Process Market Report 2022
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Description
The UK Holiday Planning and Booking Process Market Report identifies consumers’ intentions to book holidays, purchase drivers when choosing a travel company, and the impact of inflation on the UK travel industry. This report covers the online travel booking market size, market forecast, market segmentation and travel booking trends.
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Current Landscape of the Online Travel Booking Market
Following two years of missed opportunities to travel, consumers are clearly prioritising holidays. The relaxation of restrictions has led to sharp growth in the UK travel industry, particularly for bookings for overseas holidays. Meanwhile, staycations remain a popular choice given the rising cost of living and consumers’ reluctance to travel abroad due to a potential emergence of vaccine-resistant COVID-19 variants that still poses a threat to the UK travel industry.
UK Travel Booking Market Share and Key UK Travel Industry Trends
Rising inflation will impact the recovery of the travel booking market as many travellers will change their holidaying habits, for instance, by going away less often or downgrading to cheaper options. Brands in the online travel booking market that target less affluent travellers should help these consumers mitigate the impact of rising prices and stick to a budget. At the same time, brands targeting the premium sector or offering package holidays need to demonstrate their products’ quality to prove they are worth paying for.
- 59% of UK holidaymakers booked their holiday online via a laptop or desktop computer.
- 44% of UK travellers choose to book with travel companies that have an easy booking process.
- 66% of UK travellers agree that the rising cost of living will influence their holiday plans for the next 12 months.
- 75% of UK holidaymakers believe sustainable holidays are more expensive than other holidays.
Future Travel Booking Trends in the UK Travel Industry
AI-powered technology is making advances in the online travel booking market as brands try to make their search technology more flexible and their content more personalised. The next stage will see more brands offering new types of online experiences powered by AR and VR, such as offering 360-degree virtual accommodation tours.
Domestic destinations are expected to build on the growth achieved during the pandemic. Meanwhile, overseas destinations will again be a big draw due to Brits’ desire to enjoy hotter climates and discover new places and cultures. However, innovations around sustainability are essential to produce future growth in the online booking market.
To discover more about UK Holiday Planning and Booking Process Market Report 2022, read our UK Holiday Review Market Report 2022, or take a look at our extensive Holidays and Travel Market Research.
Quickly Understand
- How the rising cost of living will impact the recovery of the travel booking market.
- Travel booking trends and consumers’ intentions to book holidays.
- Timing of bookings and holiday booking channels.
- Purchase drivers when choosing a travel company in the travel booking market.
- Desired online booking features and online search preferences.
- Consumers’ perceptions of seven key players in the holiday market.
- Explores the online travel booking market size and travel booking market share.
Covered in this Report
Products: Domestic and overseas holidays.
Brands: Booking.com, Airbnb, eDreams, RIU Hotels & Resorts, Luxtrippers, Kuoni, InterLnkd, Nok Air, Bizverse, Jet2.com, Expedia, TUI, British Airways, Imagine Group, Whitbread Hotel Company, Hotels.com, Reader Offers, P&O Cruises, Saga Holidays, Kayak.com, Hurtigruten, On the Beach, Easy Jet, Tripadvisor, TikTok.
Expert Analysis from a Specialist in the UK Travel Industry
This report, written by Marloes de Vries, a leading analyst in the UK Travel Industry, delivers in-depth commentary and analysis to highlight current trends in the online travel booking market and add expert context to the numbers.
Over the past year, several brands have used AI-powered technology to make their search technology more flexible and their content more personalised. Since ease of booking has a major impact on consumers’ decisions, these brands will be more likely to have higher conversion rates. The next stage will see more brands offering new types of online experiences, powered by AR and VR.”
Marloes de Vries
Associate Director – Travel
Table of Contents
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Overview
- Key issues covered in this Report
- Market context
- Products covered in this Report
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Executive Summary
- The five-year outlook for the UK travel market
- Figure 1: Category outlook, 2022-27
- The market
- 2022 will be a much stronger year for the travel industry but still presents challenges
- Value of the overseas holiday market expected to exceed pre-COVID-19 levels in 2024
- Figure 2: Forecast value* of overseas holidays taken by UK residents at current prices, 2017-27
- Value of the domestic market expected to remain above pre-COVID-19 levels
- Figure 3: Forecast value* of domestic holidays taken by British residents, at current prices, 2017-27
- Consumer spending power will be curbed
- Booking intentions show a declining trend
- The impact of inflation will not be felt evenly…
- …meaning that lockdown savings still present an opportunity
- Value increasingly important in the holiday planning and booking process
- Companies and brands
- eDreams ODIGEO improved personalisation through the use of AI-powered technology
- Visitors can make bookings for hotel Riu Plaza España in the metaverse
- Booking.com’s Travel Proud programme makes the planning process easier for LGBTQ+ travellers
- Airbnb launches campaign to promote its new way to search
- The consumer
- Trust in booking overseas holidays has increased
- Figure 4: Booking period for main holiday, by destination, 2022
- …but booking patterns have changed
- Increased interest in smartphone bookings
- Figure 5: Booking channel for main holiday, 2021 vs 2022
- Hunger for travel expertise
- Ease of booking has a major impact on booking decisions
- Figure 6: Factors influencing choice of travel company, 2022
- Flexible booking calendar is a must on travel company websites
- Figure 7: Desired booking features on a travel booking app or website, 2022
- Search preferences of younger consumers are much more diversified
- Figure 8: Preferred search options on a travel company’s website, by age, 2022
- Older consumers are less likely to change travel plans as a result of inflation
- Figure 9: Attitudes towards the influence of rising cost of living on holiday plans, by demographics, 2022
- Families will appreciate initiatives that make holidays more financially viable
- Social media’s shift towards video content
- Figure 10: Attitudes towards booking holidays, 2022
- Environmental awareness has increased
- The five-year outlook for the UK travel market
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Issues and Insights
- Value – an increasingly important factor in purchase decisions
- Brands have taken significant steps to make search technology more flexible and content more personalised
- AR and VR: the next phase
- Madrid launches an assisted 360º virtual tourist service
- Riu Plaza España opens in the metaverse
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Market Size and Performance
- Domestic market leads recovery following sharp declines triggered by COVID-19
- 2022 will be a much stronger year for the travel industry but still presents challenges
- A rise in the average cost per trip should see market value recover at a faster pace
- Figure 11: Volume and value of domestic holidays taken by British residents, 2015-22
- Figure 12: Volume and value* of overseas holidays taken by UK residents, 2015-22
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Market Forecast
- The five-year outlook for the UK travel market
- Figure 13: Category outlook, 2022-27
- Value of the holiday market expected to exceed pre-COVID-19 levels in 2024
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- Figure 14: Forecast volume of domestic holidays taken by British residents, 2017-27*
- Figure 15: Forecast value* of domestic holidays taken by British residents, at current prices, 2017-27
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- Figure 16: Forecast volume of overseas holidays taken by UK residents at current prices, 2017-27
- Figure 17: Forecast value* of overseas holidays taken by UK residents at current prices, 2017-27
- Learnings from the last income squeeze
- Forecast methodology
- The five-year outlook for the UK travel market
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Market Drivers
- Inflation expected to rise further in Q4 2022
- Holiday market still benefitting from consumers’ desire to get away…
- Figure 18: Holiday bookings in the last three months, 2016-22
- …but consumer spending power will be curbed
- Figure 19: The Financial Confidence Index, 2015-22
- Booking intentions show a declining trend
- Figure 20: Plans to book a holiday in the next three months, 2016-22
- The impact of inflation will not be felt evenly…
- …meaning that lockdown savings still present an opportunity
- Value increasingly important in the holiday planning and booking process
- Staff shortages impact recovery of the travel market
- Digital trends
- Nearly a quarter of consumers have a smartphone on a 5G contract
- Nearly a quarter of consumers are somewhat or very positive about the metaverse
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Launch Activity and Innovation
- Connecting travellers with more relevant content
- eDreams ODIGEO improved personalisation through the use of AI-powered technology
- InterLnkd connects holiday bookings with the fashion, beauty and retail industries
- Making it easier to plan multi-centre holidays
- Airbnb launches Split Stays in response to rising demand for longer stays
- Breeze by Kuoni offers a selection of itineraries which can be customised and booked online
- Luxtripper’s technology makes it easier to build complex itineraries online
- Innovations that make travel more inclusive
- Booking.com’s Travel Proud programme makes the planning process easier for LGBTQ+ travellers
- Nok Air introduces Pet on Board service on selected domestic flights
- More travel brands want to be seen in the metaverse
- Visitors can make bookings for hotel Riu Plaza España in the metaverse
- Hội An collaborates with Bizverse to promote its destination on the metaverse platform
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Advertising and Marketing Activity
- Above-the-line spend by travel and transport providers is recovering
- Figure 21: Total above-the line, online display and direct mail advertising expenditure on ads by travel and transport providers, 2016-21
- Airbnb launches campaign to promote its new way to search
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- Figure 22: Top 15 above-the line, online display and direct mail advertising expenditure on ads by travel and transport providers, 2019-21
- Nielsen Ad Intel coverage
- Above-the-line spend by travel and transport providers is recovering
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Brand Research
- Brand map
- Figure 23: Attitudes towards and usage of selected brands, 2022
- Key brand metrics
- Figure 24: Key metrics for selected brands, 2022
- Brand attitudes: easyJet holidays is seen as a brand that offers good value
- Figure 25: Attitudes, by brand, 2022
- Brand personality: TUI, Jet2holidays and On the Beach are most closely associated with fun
- Figure 26: Brand personality – macro image, 2022
- Tripadvisor and Booking.com seen as efficient and functional
- Figure 27: Brand personality – micro image, 2022
- Brand analysis
- TUI has a good reputation but some associate it with being expensive
- Jet2holidays continues to excel in its customer experience
- easyJet holidays closely associated with offering good value, but customer rating lags behind
- On the Beach increased its brand awareness
- Tripadvisor has a relatively unique place in the market
- Booking.com has a strong brand image but its value perceptions are under pressure
- Expedia challenged to improve its customer experience levels
- Brand map
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Main Holidaying Intentions
- Demand for staycations has remained high…
- …but appetite to spend main holiday overseas is recovering
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- Figure 28: Destinations visited vs intentions to visit for main holiday, 2020-2022
- Domestic travellers continue to show greater interest in beach and touring holidays…
- …while camping and caravanning holidays will likely benefit from their affordable image
- Figure 29: Holiday types for ‘main holiday’ in the UK, participation vs intentions, 2020-22
- Beach holidays and luxury travel remain in high demand among overseas travellers
- Figure 30: Holiday types for ‘main holidays’ abroad, participation vs intentions, 2020-22
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Booking Period
- Trust in booking overseas holidays has increased
- Figure 31: Booking period for main holiday, by destination, 2022
- …but booking patterns have changed
- Those who have had a bad refund experience are more likely to book late
- Figure 32: Attitudes towards booking closer to departure, by age and refund experience, 2022
- Trust in booking overseas holidays has increased
-
Holiday Booking Channels
- Increased interest in smartphone bookings
- Figure 33: Booking channel for main holiday, 2021 vs 2022
- Younger consumers are very comfortable making high-value purchases on smartphones
- Figure 34: Booking channel for main holiday, by age, 2022
- Hunger for travel expertise
- Luxury holidays and group holidays/escorted tours most likely to be booked in person
- Figure 35: Booking channel for main holiday, by holiday type, 2022
- Increased interest in smartphone bookings
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Purchase Drivers when Choosing a Travel Company
- Ease of booking has a major impact on booking decisions
-
- Figure 36: Factors influencing choice of travel company, 2022
- Flexible booking policies have become less of a priority…
- … but some consumers remain wary
-
- Figure 37: Factors influencing choice of travel company, by age, 2022
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Desired Online Booking Features
- Flexible booking calendar a must on travel company websites
- Figure 38: Desired booking features on a travel booking app or website, 2022
- Many travellers would like to see personalised reviews
- Offering virtual tours in the planning and booking process can help brands stand out
- Madrid launches an assisted 360º virtual tourist service, while Riu Plaza España opens in the metaverse
- Flexible booking calendar a must on travel company websites
-
Online Search Preferences
- Destination, type of holiday and accommodation lead the search process…
- Figure 39: Preferred search options on a travel company’s website, 2022
- …but search preferences of younger consumers are much more diversified
- Airbnb has made it easier for travellers to find a home that matches their unique preferences
- Figure 40: Preferred search options on a travel company’s website, by age, 2022
- Destination, type of holiday and accommodation lead the search process…
-
Attitudes Towards the Rising Cost of Living
- Older consumers are less likely to change travel plans as a result of inflation
-
- Figure 41: Attitudes towards the influence of rising cost of living on holiday plans, by demographics, 2022
- Families will appreciate initiatives that make holidays more financially viable
- Figure 42: Attitudes towards the influence of rising cost of living on holiday plans – CHAID analysis, 2022
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Attitudes Towards Booking Holidays
- Social media’s shift towards video content
- Figure 43: Attitudes towards booking holidays, 2022
- Environmental awareness has increased
- The environment is not a leading decision-maker…
- …but transparency would be appreciated
- Sustainable holidays are strongly associated with being expensive
- Social media’s shift towards video content
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Appendix – Data Sources, Abbreviations and Supporting Information
- Abbreviations
- Consumer research methodology
- CHAID methodology
- Figure 44: Holiday planning and booking process – CHAID – table output, 2022
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Appendix: Forecast Methodology
- Volume forecast and prediction intervals for total holidays
- Figure 45: Lower-bound, central and upper-bound forecast for the total volume of holidays (domestic* and overseas) taken by UK residents, 2022-27
- Value forecast and prediction intervals for total holidays
- Figure 46: Lower-bound, central and upper-bound forecast for the total value* of holidays (domestic** and overseas) taken by UK residents, 2022-27
- Volume forecast and prediction intervals for domestic holidays
- Figure 47: Lower-bound, central and upper-bound forecast for the volume of domestic holidays taken by British residents, 2022-27
- Value forecast and prediction intervals for domestic holidays
- Figure 48: Lower-bound, central and upper-bound forecast for the value of domestic holidays taken by British residents, 2022-27
- Volume forecast and prediction intervals for overseas holidays
- Figure 49: Lower-bound, central and upper-bound forecast for the volume of overseas holidays taken by UK residents, 2022-27
- Value forecast and prediction intervals for overseas holidays
- Figure 50: Lower-bound, central and upper-bound forecast for the value* of overseas holidays taken by UK residents, 2022-27
- Value forecast domestic and overseas holidays at constant prices
- Figure 51: Value of domestic holidays taken by British residents at 2022 prices, 2022-27
- Figure 52: Value* of overseas holidays taken by UK residents at 2022 prices, 2022-27
- Market drivers and assumptions
- Forecast methodology
- Volume forecast and prediction intervals for total holidays
About the report
This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.
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Mintel’s proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.
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Data
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*databooks not available with UK B2B Industry reports.
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