Table of Contents
Introduction
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- Definition
- Abbreviations
Executive Summary
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- The market
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- Figure 1: Package holidays market volume size and forecast 2005-15
- Figure 2: Independent Holidays market volume size and forecast 2005-15
- Impact of recession
- All-inclusive boost
- Squeeze to continue
- Market factors
- Overseas holidays hit hardest
- AB/C2 growth boosts potential demand
- Pound recovery could stimulate overseas holidays
- Companies, brands and innovation
- Higher margin strategy
- First Choice goes all-inclusive
- Independent share grows
- easyjet’s challenge to ‘big two’
- Rebranding Benidorm
- The consumer
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- Figure 3: Overseas holidays taken in the last 12 months, April 2011
- Package penetration half that of independent
- C2DE package enthusiasm
- Independent holidays rise sharply with income
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- Figure 4: Attitudes towards package holidays, April 2011
- Time-saving advantages
- Financial protection a live issue
- Too samey, too many Brits
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- Figure 5: Attitudes towards independent holidays, April 2011
- Freedom, flexibility, choice
- Direct booking preferred
- Independent hassles
- What we think
Issues in the Market
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- The package share of the overall holiday market has increased for the first time in over a decade. Could this herald a revival?
- What are the implications of the government’s proposed ATOL (financial protection) reforms for the travel trade and the consumer?
- What effect is the growth of all-inclusive package holidays likely to have on the market?
- In what product areas can package holidays avoid competition from independent travel?
- How can package and independent holidays benefit from growth in the retired population over the next few years?
Future Opportunities
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- Trend: Life Coaching
- Trend: Evolving Media
Internal Market Environment
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- Key points
- Market conditions still weak
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- Figure 6: Domestic and overseas holiday volume, 2005-10
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- Figure 7: Domestic and overseas holidays expenditure, 2005-10
- Mixed fortunes
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- Figure 8: Scheduled passengers carried by main low-cost airlines, 2006-10
- Figure 9: comparison of passenger growth across selected uk airlines 2008-10
- Price of failure
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- Figure 10: ATOL tour operator failures/closures in the UK in the year to 1 may 2011
- Flight-plus changes
- Holiday costs fall in Spain
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- Figure 11: Holiday resort costs 2011
Broader Market Environment
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- Key points
- Confidence low as incomes fall
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- Figure 12: GDP quarterly percentage change, Q1 2004-Q1 2011
- Figure 13: UK consumer confidence index, May 2010-April 2011
- Growth in families with kids 5-9
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- Figure 14: Trends in the age structure of the UK population, 2005-15
- Figure 15: Forecast adult population trends, by lifestage, 2005-15
- AB/C2 polarity
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- Figure 16: Forecast adult population trends, by socio-economic group, 2005-15
- Oil on troubled waters
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- Figure 17: Crude oil prices, 2005-11
- Pound stays weak
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- Figure 18: Annual average exchange rates for sterling, 2007-11
Competitive Context
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- Key points
- Holidays hit hardest
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- Figure 19: Market size trends 2005-10, for selected activities, 2005-10
- Downsized treats
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- Figure 20: Trends in what extra money is spent on November 2009-February 2011
Strengths and Weaknesses in the Market
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- Strengths
- Safety first
- Unfamiliar suits packages
- Hassle free
- All-inclusive growth
- Independent freedoms
- Weaknesses
- Consumer spending power remains weak
- Cookie-cutter packages
- Packages considered too expensive
- Travel trade independent doubts
- Travel information overload
Who’s Innovating?
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- Key points
- 100% all-inclusive
- Easy challenge
- Halal Holidays
- Costa del Cool
- Smart thinking
Market Size and Forecast
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- Key points
- Past and present
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- Figure 21: Volume of overseas package and independent holidays 2005-15
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- Figure 22: Expenditure on overseas package and independent holidays 2005-15*
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- Figure 23: Average expenditure on overseas package and independent holidays 2005-10*
- The Future
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- Figure 24: Package holidays market volume size and forecast 2005-15
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- Figure 25: Package holidays market value size and forecast 2005-15*
- Figure 26: Independent holidays market volume size and forecast 2005-15
- Figure 27: Independent holidays market value size and forecast 2005-15*
- Forecast methodology
Segment Performance
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- Key points
- Package strengths beyond Europe
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- Figure 28: Overseas package and independent holidays by region, 2005-10
- Turkey triumphs
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- Figure 29: Top 10 package holiday short-haul destinations by number of visits, 2005-10
- Mexican wave
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- Figure 30: Top 10 Package holiday long haul destinations, by number of visits, 2005-10
- Shorter holidays
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- Figure 31: Average overseas package and independent holiday duration, 2005-09
- Package costs outweigh independent
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- Figure 32: Total amount spent on holidays* (for self and family) in the last 12 months (excluding spending money), 2010
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- Figure 33: Total amount spent on short breaks* (for self and family) in the last 12 months (excluding spending money), 2010
- Time away
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- Figure 34: Time spent away on holidays/short breaks in the last 12 months, 2010
- Accommodation differences
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- Figure 35: Accommodation for holidays/short breaks taken in the last 12 months, 2010
- Independent diversity
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- Figure 36: Types of holidays/short breaks taken in the last 12 months, 2010
Market Share
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- Key points
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- Figure 37: UK tour operators ranked by atol passenger licenses, May 2011
- Bricks & clicks for big two
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- Figure 38: Most visited UK travel websites, 23 March 2011
Companies and Products
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- Cosmos/Monarch
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- Figure 39: Key financials for Cosmos Holidays PIc, 2008-09
- Expedia
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- Figure 40: Key financials for Expedia.com Limited UK, 2008-09
- Lastminute.com
- Olympic Holidays (Travelworld Vacations Ltd)
- Saga Holidays
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- Figure 41: Key financials for Acromas Holidays Limited, 2009-10
- Thomas Cook
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- Figure 42: Key financials for Thomas Cook Group Plc – UK & Ireland, India and Middle East segment, 2009-10
- Travelrepublic.co.uk
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- Figure 43: Key financials for Travel Republic Limited, 2009-10
- TripAdvisor
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- Figure 44: Key financials for TripAdvisor Limited, 2009
- TUI
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- Figure 45: Key financials for TUI Plc – UK & Ireland market, 2009-10
- Virgin Holidays
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- Figure 46: Key financials for Virgin Holidays Limited, 2009-10
Channels to Market
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- Key points
- Viral independents
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- Figure 47: Research sources used for holidays/short breaks taken in the last 12 months
- High street resilience
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- Figure 48: Booking methods used for holidays/short breaks taken in the last 12 months
Holidays Taken
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- Key points
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- Figure 49: Holidays taken in the last 12 months, April 2011
- Cross-class package appeal
Important Holiday Factors
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- Key points
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- Figure 50: Important holiday factors, April 2011
- We’re all gastro-tourists now
- Package versus independent holiday factors
- Flavour of the destination
- City excites under-35s and over-55s
- Female bookworms
Attitudes Towards Package Holidays
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- Key points
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- Figure 51: Attitudes towards package holidays, April 2011
- Life in the old package
- Same old, same old
- Different class
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- Figure 52: Attitudes towards package holidays by socio-economic group, April 2011
- Family concern
- Inclusive and tailor-made packages
Attitudes Towards Independent Holidays
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- Key points
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- Figure 53: Attitudes towards independent holidays, April 2011
- Road to freedom
- Information overload
- Independent ethics
- Aviation-avoiders
Targeting Opportunities
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- Key points
- Target groups
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- Figure 54: Package versus independent holidays target groups, May 2011
- Package Lovers
- Demographic profile
- Marketing message
- Independently Minded
- Demographic profile
- Marketing message
- Independent With Doubts
- Demographic profile
- Marketing message
- Indifferent
- Demographic profile
- Marketing message
Appendix – Holidays Taken
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- Figure 55: Most popular holidays taken in the last 12 months, by demographics, April 2011
- Figure 56: Next most popular holidays taken in the last 12 months by demographics, April 2011
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- Figure 57: Other holidays taken in the last 12 months by demographics, April 2011
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Appendix – Important Holiday Factors
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- Figure 58: Important holiday factors, by most popular holidays taken in the last 12 months, April 2011
- Figure 59: Important holiday factors, by next most popular holidays taken in the last 12 months, April 2011
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- Figure 60: Important holiday factors by other holidays, taken in the last 12 months, April 2011
- Figure 61: Most popular important holiday factors, by demographics, April 2011
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- Figure 62: Next most popular important holiday factors by demographics, April 2011
- Figure 63: Other important holiday factors, by demographics, April 2011
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- Figure 64: Least popular important holiday factors, by demographics, April 2011
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Appendix – Attitudes Towards Package Holidays
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- Figure 65: Attitudes towards package holidays, by most popular holidays taken in the last 12 months, April 2011
- Figure 66: Attitudes towards package holidays by next most popular holidays taken in the last 12 months, April 2011
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- Figure 67: Attitudes towards package holidays, by other holidays taken in the last 12 months, April 2011
- Figure 68: Attitudes towards package holidays, by most popular important holiday factors, April 2011
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- Figure 69: Attitudes towards package holidays, by next most popular important holiday factors, April 2011
- Figure 70: Attitudes towards package holidays, by other important holiday factors, April 2011
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- Figure 71: Attitudes towards package holidays, by least popular important holiday factors, April 2011
- Figure 72: Attitudes towards package holidays, by demographics, April 2011
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- Figure 73: Further attitudes towards package holidays, by demographics, April 2011
- Figure 74: Further attitudes (continued) to package holidays by demographics, April 2011
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Appendix – Attitudes Towards Independent Holidays
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- Figure 75: Attitudes towards independent holidays, by most popular holidays taken in the last 12 months, April 2011
- Figure 76: Attitudes towards independent holidays, by next most popular holidays taken in the last 12 months, April 2011
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- Figure 77: Attitudes towards independent holidays, by other holidays taken in the last 12 months, April 2011
- Figure 78: Attitudes towards independent holidays, by most popular important holiday factors, April 2011
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- Figure 79: Attitudes to independent holidays by next most popular important holiday factors, April 2011
- Figure 80: Attitudes to independent holidays by other important holiday factors, April 2011
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- Figure 81: Attitudes to independent holidays by least popular important holiday factors, April 2011
- Figure 82: Attitudes towards independent holidays, by demographics, April 2011
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- Figure 83: Further attitudes towards independent holidays, by demographics, April 2011
- Figure 84: Further attitudes (continued) towards independent holidays, by demographics, April 2011
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Appendix – Targeting Opportunities
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- Figure 85: Holidays taken in the last 12 months, by target groups, April 2011
- Figure 86: Important holiday factors, by target groups, April 2011
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- Figure 87: Attitudes towards package holidays, by target groups, April 2011
- Figure 88: Attitudes towards independent holidays, by target groups, April 2011
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- Figure 89: Target groups, by demographics, April 2011
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