Table of Contents
Introduction and Abbreviations
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- Definitions
- Consumer research
- Abbreviations
Premier Insight
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- Need to adapt to changing market conditions
- Young travellers love the Internet, but need the travel agent’s confidence factor
- Vertical branding for families
A Summary of Key Report Findings
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- Technological advancement and low-cost travel are to grow further
- The holiday market is slowing and the package market declining
- The number of holidays sold through travel agents is stagnating
- Demand still exists for the personal touch
- Escaping the perception of only selling package holidays is vital
- Margins are diminishing
- Fewer travel retail outlets
- Fewer holidaymakers are using travel agents
- Travel agents are popular when booking long holidays, beach holidays and multi-centre breaks
- Travel agent bookings still reign despite a variety of information sources used
- Declining use of travel agents is largely due to growing use of the Internet
Market Factors
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- The state of the economy
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- Figure 1: GDP and PDI at 1999 prices and interest base rate, 1999-2009
- Growth within the upper socio-economic groups
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- Figure 2: Adult population, by socio-economic group, 1999-2009
- The significance of technology
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- Figure 3: Internet penetration, by gender, socio-economic group and age, 1999-2004
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- Figure 4: Penetration of Internet technologies, 2003-04
- The impact of low-cost airlines
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- Figure 5: Scheduled passenger uplift of main low-cost airlines, 1999-2003
Market Size and Trends
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- Trends in holiday-taking
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- Figure 6: Domestic and overseas holidays and expenditure, 1999-2004
- The declining package holiday market
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- Figure 7: Inclusive versus independent holidays abroad, 1999-2004
- Number of holidays sold through travel agents fluctuating
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- Figure 8: Number of overseas holidays booked via a travel agent, 1999-2004
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- Figure 9: Volume of overseas holidays booked at a travel agent compared with the inclusive tours market volume, 1999-2004
- Is there a future for high street travel agents?
Industry Structure and Trends
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- Falling commissions and fees
- Consumer protection
- Dynamic packaging
- Industry regulation and licensing
- Association of British Travel Agents (ABTA)
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- Figure 10: ABTA membership, total numbers of travel agent members and outlets, 1994-2004
- Air Transport Operators' Licensing (ATOL)
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- Figure 11: Passengers licensed to top ten groups and companies, year to September, 1999-2004
- International Air Transport Association (IATA)
The Supply Structure
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- Trends in outlet numbers – independents flourishing
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- Figure 12: Leading travel agents, by number of outlets, 1999-2004
- Rebranding
- Lunn Poly
- Going Places
- Thomas Cook
- The Co-operatives
- Co-operative Trading Group (CTTG)
- Travelcare
- United Co-op Travel Group
- Midlands Co-operative Society
- West Midlands Co-op
- Leeds Co-op
- First Choice Travel Shops
- Hays Travel
- Flight Centre
- Online agencies
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- Figure 13: Top 20 UK travel sites (based on visits market share), October 2004
- Lastminute.com
- Expedia
The Consumer
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- Holidays taken
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- Figure 14: Holidays taken, 1999-2004
- Types of holiday taken
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- Figure 15: Types of holiday taken, September 2004
- Holiday booking methods
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- Figure 16: How last holiday abroad was booked, 1999-2004
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- Figure 17: Method used to book last holiday abroad, 2003 and 2004
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- Figure 18: How last holiday abroad was booked, by booking method, 2004
- Profile of travel agent customers
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- Figure 19: Demographic profile of those who used a travel agent to book their last holiday, by gender, age, socio-economic group and region, 2004
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- Figure 20: Demographic profile of those who used a travel agent to book their last holiday, by presence of children, marital status, working status, household size and lifestage, 2004
- Short versus long holiday bookings
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- Figure 21: How last holiday abroad was booked, by number of nights spent away, 2004
- Information sources
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- Figure 22: How last holiday abroad was booked, by information sources used, 2004
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- Figure 23: How last holiday abroad was booked, by information sources used continued, 2004
- Type of holiday booked
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- Figure 24: How last holiday abroad was booked, by type of holiday, 2004
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- Figure 25: How last holiday abroad was booked, by type of holiday continued, 2004
- Number of holidays taken
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- Figure 26: How last holiday abroad was booked, by number of holidays taken, 2004
Consumer Behaviour and Targeting Opportunities
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- Chosen booking method for last inclusive tour
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- Figure 27: Booking methods for last inclusive tour, September 2004
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- Figure 28: Booking methods, by type of holiday chosen, September 2004
- Attitudes towards purchasing a holiday
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- Figure 29: Level of agreement with attitudinal statements about purchasing a holiday/travel, 1999-2004
- Consumer target groups
- Internet Bookers (17% of the sample or 8.3 million adults)
- The Resourceful (13% of the sample or 6.3 million adults)
- The Advocates (15% of the sample or 7.3 million adults)
- Unconcerned (56% of the sample or 27.3 million adults)
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- Figure 30: Consumer target groups, by gender, age and socio-economic group, September 2004
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- Figure 31: Consumer target groups, by region and ACORN category, September 2004
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- Figure 32: Consumer target groups, by detailed lifestage groups, September 2004
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- Figure 33: Consumer target groups, by media usage, supermarket usage and commercial TV viewing, September 2004
- Consumer target groups by holidays taken
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- Figure 34: Target groups, by holiday taken, September 2004
- Consumer target groups by types of holidays taken
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- Figure 35: Target groups, by type of holiday taken, September 2004
- Consumer target group responses to the attitudinal statements
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- Figure 36: Target rgoups, by the attitudinal statements, September 2004
- Agreement with positive versus negative statements
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- Figure 37: Target groups’ agreement with positive statements about travel agents, September 2004
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- Figure 38: Target groups’ agreement with negative statements about travel agents, September 2004
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- Figure 39: Single positive statement towards travel agents agreed to by target groups, September 2004
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- Figure 40: Single negative statement towards travel agents agreed to by target groups, September 2004
Consumer Behaviour and Targeting Opportunities – Detailed Demographics
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- Positive attitudes towards travel agents
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- Figure 41: Positive attitudes towards travel agents, by gender, age and socio-economic group, September 2004
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- Figure 42: Positive attitudes towards travel agents, by region and ACORN categories, September 2004
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- Figure 43: Positive attitudes towards travel agents, by detailed lifestage group, September 2004
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- Figure 44: Positive attitudes towards travel agents, by media usage, supermarket usage and commercial TV viewing, September 2004
- Negative or neutral attitudes towards travel agents
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- Figure 45: Most popular negative or neutral attitudes towards travel agents, by gender, age and socio-economic group, September 2004
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- Figure 46: Most popular negative or neutral attitudes towards travel agents, by region and ACORN categories, September 2004
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- Figure 47: Most popular negative or neutral attitudes towards travel agents, by detailed lifestage group, September 2004
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- Figure 48: Most popular negative or neutral attitudes towards travel agents, by media usage, supermarket usage and commercial TV viewing, September 2004
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- Figure 49: Second most popular negative or neutral attitudes towards travel agents, by gender, age and socio-economic group, September 2004
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- Figure 50: Second most popular negative or neutral attitudes towards travel agents, by region and ACORN categories, September 2004
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- Figure 51: Second most popular negative or neutral attitudes towards travel agents, by detailed lifestage group, September 2004
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- Figure 52: Second most popular negative or neutral attitudes towards travel agents, by media usage, supermarket usage and commercial TV viewing, September 2004
The Future
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- Continued investment in multichannel distribution…
- …and an increased sales mix
- The pre-packaged market is stagnant, while tailor-made packages are increasing…
- …and multimedia sales tools are escalating
- Investment in staff and training is imperative for the future…
- …and specialisation or niche markets are key
Forecast
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- Market to remain static
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- Figure 53: Forecast of overseas holidays booked via travel agents, 2004-09
- The continual decline of inclusive tours will dampen the market
- Trend for online booking will continue
- Growth of low-cost airlines will dampen the market
- There is still hope for travel agents in the future
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