Table of Contents
Introduction
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- Definition
- Abbreviations
Issues in the Market
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- How can travel companies respond to consumer preferences for booking late or early?
- How can travel marketers respond to the age of austerity?
- What is the role of the ‘personal’ in the online travel booking world?
- Is mobile travel booking over-hyped?
- Are holiday bookers no longer motivated by green/ethical concerns in difficult economic times?
Executive Summary
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- The market
- Travel recession finally over?
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- Figure 1: Overseas holiday bookings, 2006-16
- Average spend growth
- Staycation here to stay
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- Figure 2: Domestic holiday bookings, 2006-16
- Package share up
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- Figure 3: Volume of overseas package and independent holidays, 2006-10
- Three growth destinations
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- Figure 4: Trips to selected popular holiday destinations, percentage change 2006-10
- Market factors
- Pre-/no family/third agers take most trips
- Income drop
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- Figure 5: GDP quarterly percentage change, Q1 2004-Q2 2011
- Resort costs down
- Failure and flight-plus
- Broadband still rising
- Evolving web
- Companies, brands and innovation
- Big two pursue mixed offline/online strategy
- Battle lines drawn up
- OTAs get personal
- Google makes its move
- Online search complexity
- Flash flood
- Thinking outside of the box
- The consumer
- Destination first
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- Figure 6: Holiday planning activities, June 2011
- Shop research falls but bookings hold up
- A fifth Google around for ideas
- Six in ten book whole trip online
- Favourite add-ons
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- Figure 7: Holiday extras booking preferences, June 2011
- Early bird catches four in ten worms
- One in four not sure if they are protected
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- Figure 8: Holiday planning and booking attitudes, July 2011
- Joy division
- Prepared to pay
- What we think
Future Opportunities
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- Trend: Who Needs Humans?
- Trend: Sense of the Intense
Internal Market Environment
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- Key points
- Overseas-UK long holiday gap narrows
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- Figure 9: Number of holidays/short breaks taken in the last 12 months, 2011
- ABs, pre-/no family and third agers take most overseas trips
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- Figure 10: Total number of trips in the last 12 months, 2011
- Failure rate remains high
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- Figure 11: ATOL tour operator failures/closures in the UK in the year to 6 October 2011
- Flight-plus changes
- Only three destinations see growth
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- Figure 12: Top 20 holiday destinations, UK, 2006-10
- Broadband penetration reaches 70%
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- Figure 13: Broadband penetration, by demographics, 2006-11
- Mobile web use rising fast
- Tablet sales expected to increase
- From text to video
- Google flexes its travel muscles
Broader Market Environment
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- Key points
- UK economy flat-lining
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- Figure 14: GDP quarterly percentage change, Q1 2004-Q2 2011
- Confidence stays low
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- Figure 15: UK consumer confidence index, October 2010-September 2011
- Post-65 growth
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- Figure 16: Trends in the age structure of the UK population, 2006-16
- AB/C2 fastest growing groups
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- Figure 17: Forecast adult population trends, by socio-economic group, 2006-16
- Resort reductions help to mitigate weak pound
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- Figure 18: Annual average exchange rates for Sterling, 2007-11
Competitive Context
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- Key points
- Comfort eating and cheap days out
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- Figure 19: Trends in what extra money is spent on, 2010-11
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- Figure 20: Indexed comparison of expenditure on leisure travel, select consumer expenditure categories, eating out and pub spend, where 2006 = 100
- Holidays hit more than most
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- Figure 21: UK consumer expenditure on leisure travel, eating out and pub spend (minus eating) – plus broad sector breakdown, 2006-10
Who’s Innovating?
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- Key points
- Growing search complexity
- Crowdsourcing
- Premium flash
- Joined up travel planning
- Virtual suitcase
- Green holiday planning
Market Size and Forecast
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- Key points
- Overseas trips up slightly
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- Figure 22: Overseas and domestic holiday bookings, 2006-16
- But domestic trips still ahead
- Average overseas spend rises
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- Figure 23: Overseas and domestic holiday expenditure, 2006-16
- All-inclusive drives package share increase
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- Figure 24: Volume of overseas package and independent holidays, 2006-10
- Figure 25: Expenditure on overseas package and independent holidays, 2006-10*
- Forecast
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- Figure 26: Overseas holiday bookings, 2006-16
- Figure 27: Overseas holiday expenditure*, 2006-16
- Figure 28: Domestic holiday bookings, 2006-16
- Figure 29: Domestic holiday expenditure*, 2006-16
- Forecast methodology
Holiday Information
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- Key points
- Six in ten research holidays online
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- Figure 30: Research/information sources used for holidays/short breaks abroad taken in the last 12 months
Holiday Bookings and Timings
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- Key points
- Two thirds book online
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- Figure 31: Booking methods used for holidays/short breaks taken in the last 12 months, 2011
- Travel shop drop as online sales increases
- Bucking the trend
- Uncertain world
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- Figure 32: Length of time before holidays/short breaks abroad that bookings were made, 2011
Market Share
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- Key points
- On The Beach enters top ten
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- Figure 33: Top 50 UK tour operators ranked by ATOL passenger licenses, 14 September 2011
Companies and Products
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- easyJet
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- Figure 34: Key financials for easyJet, 2009-10
- Expedia
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- Figure 35: Key financials for Expedia.com Limited UK, 2008-09
- Flight Centre
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- Figure 36: Key financials for Flight Centre UK, 2009-10
- Lastminute.com
- Ryanair
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- Figure 37: Key financials for Ryanair, 2010-11
- Thomas Cook
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- Figure 38: Key financials for Thomas Cook Group Plc – UK & Ireland, India and the Middle East segment, 2009-10
- Travel Counsellors
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- Figure 39: Key financials for Travel Counsellors, 2009-10
- Travelsupermarket.com
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- Figure 40: Key financials for Travelsupermarket.com, 2009-10
- TripAdvisor
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- Figure 41: Key financials for TripAdvisor Limited, 2009
- TUI Travel
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- Figure 42: Key financials for TUI Plc – UK & Ireland market, 2009-10
Holiday Taking
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- Key points
- Half of consumers book independently and three in ten package
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- Figure 43: Types of holiday taken in the last five years, June 2011
- North/south divide
Holiday Planning
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- Key points
- Half pick destination first
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- Figure 44: Holiday planning activities, June 2011
- A fifth just start by Googling
- Mums focus on holiday budget
- ‘Googlers’ under 35
Holiday Booking
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- Key points
- Online bookings stabilise
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- Figure 45: Holiday booking methods, June 2011
Booking Holiday Extras
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- Key points
- Insurance and transfers top list of add-ons
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- Figure 46: Holiday extras booking preferences, June 2011
- Pay per frill
- Info pack potential
- Young ABC1s seek experience
Holiday Planning and Booking Preferences
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- Key points
- Four in ten seek early bird deals
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- Figure 47: Holiday planning and booking preferences, June 2011
- Exacting consumers
- Over-55s lose patience with process
Holiday Planning and Booking Attitudes
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- Key points
- Four in ten under-35s confused about protection
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- Figure 48: Holiday planning and booking attitudes, July 2011
- Big brand safety
- Divided opinions
- Green appeal
Targeting Opportunities
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- Key points
- Target groups
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- Figure 49: Holiday Planning & Booking Process target groups, July 2011
- Savvy Self-sufficient
- Demographic profile
- Marketing message
- Big Brands Best
- Demographic profile
- Marketing message
- Needing Guidance
- Demographic profile
- Marketing message
- Holiday Hassled
- Demographic profile
- Marketing message
- Unengaged
- Demographic profile
- Marketing message
Appendix – Internal Market Environment
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- Figure 50: Number of short breaks (1-4 days) taken in the British Isles in the last 12 months, by demographics, 2011
- Figure 51: Number of holidays (5+ days) taken in the British Isles in the last 12 months, by demographics, 2011
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- Figure 52: Number of short breaks (1-4 days) taken abroad in the last 12 months, by demographics, 2011
- Figure 53: Number of holidays (5+ days) taken abroad in the last 12 months, by demographics, 2011
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- Figure 54: British Isles – total trips in the last 12 months, by demographics, 2011
- Figure 55: Abroad – total trips in the last 12 months, by demographics, 2011
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Appendix – Holiday Taking
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- Figure 56: Most popular types of holiday taken in the last five years, by demographics, June 2011
- Figure 57: Next most popular types of holiday taken in the last five years, by demographics, June 2011
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- Figure 58: Other types of holiday taken in the last five years, by demographics, June 2011
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Appendix – Holiday Planning
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- Figure 59: Holiday planning activities, by most popular types of holiday taken in the last five years, June 2011
- Figure 60: Holiday planning activities, by next most popular types of holiday taken in the last five years, June 2011
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- Figure 61: Most popular holiday planning activities, by demographics, June 2011
- Figure 62: Next most popular holiday planning activities, by demographics, June 2011
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Appendix – Holiday Booking
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- Figure 63: Holiday booking methods, by most popular types of holiday taken in the last five years, June 2011
- Figure 64: Holiday booking methods, by next most popular types of holiday taken in the last five years, June 2011
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- Figure 65: Holiday booking methods, by most popular holiday planning activities, June 2011
- Figure 66: Holiday booking methods, by next most popular holiday planning activities, June 2011
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- Figure 67: Holiday booking methods, by demographics, June 2011
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Appendix – Booking Holiday Extras
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- Figure 68: Holiday extras booking preferences, by most popular types of holiday taken in the last five years, June 2011
- Figure 69: Holiday extras booking preferences, by next most popular types of holiday taken in the last five years, June 2011
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- Figure 70: Holiday extras booking preferences, by most popular holiday planning activities, June 2011
- Figure 71: Holiday extras booking preferences, by next most popular holiday planning activities, June 2011
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- Figure 72: Holiday extras booking preferences, by most popular holiday booking methods, June 2011
- Figure 73: Holiday extras booking preferences, by next most popular holiday booking methods, June 2011
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- Figure 74: Most popular holiday extras booking preferences, by demographics, June 2011
- Figure 75: Next most popular holiday extras booking preferences, by demographics, June 2011
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- Figure 76: Other holiday extras booking preferences, by demographics, June 2011
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Appendix – Holiday Planning and Booking Preferences
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- Figure 77: Holiday planning and booking preferences, by most popular types of holiday taken in the last five years, June 2011
- Figure 78: Holiday planning and booking preferences, by next most popular types of holiday taken in the last five years, June 2011
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- Figure 79: Holiday planning and booking preferences, by most popular holiday planning activities, June 2011
- Figure 80: Holiday planning and booking preferences, by next most popular holiday planning activities, June 2011
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- Figure 81: Holiday planning and booking preferences, by most popular holiday booking methods, June 2011
- Figure 82: Holiday planning and booking preferences, by next most popular holiday booking methods, June 2011
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- Figure 83: Holiday planning and booking preferences, by most popular holiday extras booking preferences, June 2011
- Figure 84: Holiday planning and booking preferences, by next most popular holiday extras booking preferences, June 2011
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- Figure 85: Holiday planning and booking preferences, by other holiday extras booking preferences, June 2011
- Figure 86: Holiday planning and booking preferences, by demographics June 2011
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Appendix – Holiday Planning and Booking Attitudes
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- Figure 87: Holiday planning and booking attitudes, by most popular types of holiday taken in the last five years, June 2011
- Figure 88: Holiday planning and booking attitudes, by next most popular types of holiday taken in the last five years, June 2011
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- Figure 89: Holiday planning and booking attitudes, by most popular holiday planning activities, June 2011
- Figure 90: Holiday planning and booking attitudes, by next most popular holiday planning activities, June 2011
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- Figure 91: Holiday planning and booking attitudes, by most popular holiday booking methods, June 2011
- Figure 92: Holiday planning and booking attitudes, by next most popular holiday booking methods, June 2011
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- Figure 93: Holiday planning and booking preferences, by most popular holiday extras booking preferences, June 2011
- Figure 94: Holiday planning and booking preferences, by next most popular holiday extras booking preferences, June 2011
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- Figure 95: Holiday planning and booking preferences, by other holiday extras booking preferences, June 2011
- Figure 96: Holiday planning and booking attitudes, by holiday planning and booking preferences, June 2011
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- Figure 97: Most popular statements regarding holiday planning and booking, by demographics, July 2011
- Figure 98: Next most popular statements regarding holiday planning and booking, by demographics, July 2011
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Appendix – Targeting Opportunities
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- Figure 99: Types of holiday taken in the last five years, by target groups, June 2011
- Figure 100: Holiday planning activities, by target groups, June 2011
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- Figure 101: Holiday booking methods, by target groups, June 2011
- Figure 102: Holiday extras booking preferences, by target groups, June 2011
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- Figure 103: Holiday planning and booking preferences, by target groups, June 2011
- Figure 104: Holiday planning and booking attitudes, by target groups, June 2011
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- Figure 105: Target groups, by demographics, June 2011
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