Table of Contents
Introduction
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- Definition
- Abbreviations
Executive Summary
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- The market
- Slow growth pattern likely to continue
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- Figure 1: Volume forecast of total passengers uplifted at UK airports, 2008-18
- Budget shift
- Market factors
- Spain and France remain favourite destinations
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- Figure 2: Most popular overseas travel destinations for UK residents, 2012
- Domestic air losing out to rail
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- Figure 3: Passenger traffic, by UK airport, 2012
- Short-term pressure easing but long-term hikes likely
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- Figure 4: Kerosene-type jet fuel monthly average spot price and US$:£ monthly average spot exchange rate, January 2007-March 2013
- Companies, brands and innovation
- easyJet grows through recession
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- Figure 5: Top ten UK-based airlines, by passengers uplifted globally, 2012
- Expansion plans
- Flexible flying
- Domestic long-haul
- New pricing models
- The consumer
- Half of consumers fly on holiday
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- Figure 6: Purpose of flights taken over the past 12 months, April 2013
- Two thirds of flyers go once or twice a year
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- Figure 7: Number of times flown in the last 12 months, April 2013
- Six in ten fly low-cost
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- Figure 8: Destination regions, types of airline and classes of travel flown in the last 12 months, April 2013
- Price must be right but flyers over 45 look beyond the fare
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- Figure 9: Important factors in choosing an airline, April 2013
- Upgrades, seating choice and free flights top loyalty incentives
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- Figure 10: Likely incentives for choosing a particular airline regularly, April 2013
- Low appetite for low-cost, long-haul
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- Figure 11: Length of time people are prepared to spend travelling by budget airline, April 2013
- Consumers critical of hidden charges
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- Figure 12: Agreement with attitudes towards air travel, April 2013
- What we think
Issues in the Market
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- How can airlines respond in an era of high costs?
- Is the UK falling out of love with budget airlines?
- How can airlines best target the increasingly important over-55 population?
- What is the best response to green ‘flying guilt’?
Trend Application
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- Trend: Edutainment
- Trend: Secret Secret
- Mintel Futures: Access Anything, Anywhere
Market Drivers
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- Key points
- Outbound travel stays flat
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- Figure 13: Visits abroad by UK residents, 2007-12
- Figure 14: Overseas journeys (all purposes), by region, 2007-12
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- Figure 15: Most popular overseas travel destinations for UK residents, 2007-12
- Air travel holds market share but tunnel competition grows
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- Figure 16: All overseas visits by air, sea and tunnel – volume, 2007-12
- Figure 17: Percentage share of all overseas visits, by travel mode, 2007-12
- Rise of domestic rail
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- Figure 18: Main method of transport used for overnight trips in Great Britain, 2010-12
- Stansted aims to reverse decline under new ownership
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- Figure 19: Passengers uplifted, by airport, 2007-12
- Airports Commission considering options
- Taxing affairs
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- Figure 20: Air Passenger Duty, April 2013
- Oil prices ease but long-term trends likely to be upwards
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- Figure 21: Kerosene-type jet fuel monthly average spot price and US$:£ monthly average spot exchange rate, January 2007-March 2013
- Airport charging regime set to improve
- Ancillary revenue champs
- Stealth charges risk reputation damage
- Carbon trading awaits global solution
- Sterling weakness adds to airline pressures
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- Figure 22: Annual average exchange rates for Sterling against other currencies, 2008-13
Who’s Innovating?
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- Key points
- Weighty matters
- Upgrade auctions
- Variable pricing
- Knowing me, knowing you
- Frills and no-frills
- Flying flirts
- High-speed internet in the skies
- Sustainable meals
Market Size and Forecast
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- Key points
- Air travel showing slight pick-up
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- Figure 23: Passengers uplifted at UK airports, 2007-12
- Long-term slowdown in growth rates
- Forecast
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- Figure 24: Volume forecast of total passengers uplifted at UK airports, 2008-18
- Figure 25: Volume forecast of international passengers uplifted at UK airports, 2008-18
- Figure 26: Volume forecast of domestic passengers uplifted at UK airports, 2008-18
- Forecast methodology
Segment Performance
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- Key points
- VFR flights showing strongest recovery
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- Figure 27: Volume of UK residents’ air trips abroad, by purpose, 2007-12
- Figure 28: Volume of UK residents’ air trips abroad, by purpose, % breakdown, 2007-12
- Charter flight share shows five years of decline
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- Figure 29: Passengers uplifted at UK airports, scheduled vs. non-scheduled flights, 2007-12
- Low-cost volumes up 56% in past five years
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- Figure 30: Total passengers uplifted worldwide by UK airlines, low-cost* and full-service**, 2007-12
Market Share
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- Key points
- easyJet shows 68% global growth since 2007
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- Figure 31: Top ten UK-based airlines, by passengers uplifted globally, 2007-12
- BA bounce-back
- Jet2 jets ahead
- Ryanair UK passenger decline
- Low-cost expansion planes
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- Figure 32: Number of active aircraft, by airline, 2011 and 2012
- Dreams finally come true for long-haul
Companies and Products
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- Ryanair
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- Figure 33: Key financials for Ryanair, 2012 and 2013
- easyJet
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- Figure 34: Key financials for easyJet Plc, 2011 and 2012
- British Airways
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- Figure 35: Key financials for IAG – British Airways (British Airways), 2011 and 2012
- Thomson Airways
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- Figure 36: Key financials for TUI PLC, 2011 and 2012
- Thomas Cook Airlines
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- Figure 37: Key financials for Thomas Cook Group Plc – UK & Ireland, India and Middle East segment, 2011 and 2012
- Flybe
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- Figure 38: Key financials for Flybe, 2012 and 2013
- Monarch Airlines
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- Figure 39: Key financials for Monarch Holding ltd, 2011 and 2012
- Virgin Atlantic
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- Figure 40: Key financials for Virgin Atlantic Airways Ltd, 2011 and 2012
- Jet2.com
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- Figure 41: Key financials for Dart Group PLC (Jet Group), 2011 and 2012
Brand Research
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- Brand map
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- Figure 42: Attitudes towards and usage of brands in the airlines sector, April 2013
- Correspondence analysis
- Brand attitudes
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- Figure 43: Attitudes, by airlines brand, April 2013
- Brand personality
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- Figure 44: Airlines brand personality – macro image, April 2013
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- Figure 45: Airlines brand personality – micro image, April 2013
- Brand experience
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- Figure 46: Airlines brand usage, April 2013
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- Figure 47: Satisfaction with various airlines brands, April 2013
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- Figure 48: Consideration of airlines brands, April 2013
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- Figure 49: Consumer perceptions of current airlines brand performance, April 2013
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- Figure 50: Airlines brand recommendation – Net Promoter Score, April 2013
- Brand index
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- Figure 51: Airlines brand index, April 2013
- Figure 52: Airlines brand index vs. recommendation, April 2013
- Target group analysis
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- Figure 53: Target groups, April 2013
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- Figure 54: Airlines brand usage, by target groups, April 2013
- Group One – Conformists
- Group Two – Simply the Best
- Group Three – Shelf Stalkers
- Group Four – Habitual Shoppers
- Group Five – Individualists
Who Flies And Why?
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- Key points
- Just over half of adults fly
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- Figure 55: Purpose of flights taken over the past 12 months, April 2013
- VFR Londoners
Frequency of Flying
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- Key points
- Two thirds of flyers take one or two annual trips
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- Figure 56: Number of times flown in the last 12 months, April 2013
- ‘Three-plus’ flyer profile
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- Figure 57: Number of times flown in the last 12 months, by purpose of flights taken over the past 12 months, April 2013
Type of Flights Taken
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- Key points
- Flyers over 55 favour long-haul
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- Figure 58: Destination regions, types of airline and classes of travel flown in the last 12 months, April 2013
- Budget vs full-service demographics
- One in 20 flyers travel first/business class
Important Influences on Airline Choice
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- Key points
- Price dominates for all but secondary factors key for over-45s
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- Figure 59: Important factors in choosing an airline, April 2013
- Frequent flyer factors
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- Figure 60: Important factors in choosing an airline, all flyers versus those who took four or more flights, April 2013
- Long-haul far less commoditised
- Business flyers look for more eco-efficient airlines
Potential Airline Loyalty Incentives
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- Key points
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- Figure 61: Likely incentives for choosing a particular airline regularly, April 2013
- Seating, upgrades and free flights most popular incentives
- Red carpet treatment for frequent flyers
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- Figure 62: Likely incentives for choosing a particular airline regularly, all flyers versus those who took four or more flights, April 2013
How Long Are Travellers Prepared to Spend on a Budget Flight?
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- Key points
- Budget flight tolerance falls off rapidly after four hours
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- Figure 63: Length of time people are prepared to spend travelling by budget airline, April 2013
Attitudes Towards Flying
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- Key points
- Public scepticism over budget pricing
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- Figure 64: Attitudes towards air travel, April 2013
- Low-cost enthusiasts
- Tasting luxury
- Frequent flyers are most disgruntled
- Flying back into the past
- Family flyers put off by rising fares
- Flying smart
Targeting Opportunities
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- Key points
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- Figure 65: Airline target groups, April 2013
- High Maintenance
- Demographic profile
- Marketing message
- Annual Aviators
- Demographic profile
- Marketing message
- Budget Babes
- Demographic profile
- Marketing message
- Fed Up Of Flying
- Demographic profile
- Marketing message
Appendix – Market Size and Forecast
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- Figure 66: Forecasts for total passengers uplifted at UK airports, 2013-18
- Figure 67: Forecasts for international passengers uplifted at UK airports, 2013-18
- Figure 68: Forecasts for domestic passengers uplifted at UK airports, 2013-18
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Appendix – Brand Research
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- Figure 69: Brand usage, April 2013
- Figure 70: Brand commitment, April 2013
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- Figure 71: Brand momentum, April 2013
- Figure 72: Brand diversity, April 2013
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- Figure 73: Brand satisfaction, April 2013
- Figure 74: Brand recommendation, April 2013
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- Figure 75: Brand attitude, April 2013
- Figure 76: Brand image – macro image, April 2013
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- Figure 77: Brand image – micro image, April 2013
- Figure 78: Profile of target groups, by demographics, April 2013
- Figure 79: Psychographic segmentation, by target groups, April 2013
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- Figure 80: Brand usage, by target groups, April 2013
- Brand index
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- Figure 81: Brand index, April 2013
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Appendix – Who Flies And Why?
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- Figure 82: Purpose of flights taken over the past 12 months, by demographics, April 2013
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Appendix – Frequency of Flying
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- Figure 83: Number of times flown in the last 12 months, by purpose of flights taken over the past 12 months, April 2013
- Figure 84: Number of times flown in the last 12 months, by demographics, April 2013
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Appendix – Type of Flights Taken
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- Figure 85: Destination regions, types of airline and classes of travel flown in the last 12 months, by number of times flown in the last 12 months, April 2013
- Figure 86: Destination regions, types of airline and classes of travel flown in the last 12 months, by purpose of flights taken over the past 12 months, April 2013
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- Figure 87: Destination regions of travel flown in the last 12 months, by demographics, April 2013
- Figure 88: Types of airline of travel flown in the last 12 months, by demographics, April 2013
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- Figure 89: Classes of travel flown in the last 12 months, by demographics, April 2013
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Appendix – Important Influences on Airline Choice
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- Figure 90: Important factors in choosing an airline, by destination regions of travel flown in the last 12 months, April 2013
- Figure 91: Important factors in choosing an airline, by types of airline of travel flown in the last 12 months, April 2013
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- Figure 92: Important factors in choosing an airline, by classes of travel flown in the last 12 months, April 2013
- Figure 93: Important factors in choosing an airline, by number of times flown in the last 12 months, April 2013
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- Figure 94: Important factors in choosing an airline, by purpose of flights taken over the past 12 months, April 2013
- Figure 95: Most popular important factors in choosing an airline, by demographics, April 2013
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- Figure 96: Next most popular important factors in choosing an airline, by demographics, April 2013
- Figure 97: Other important factors in choosing an airline, by demographics, April 2013
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Appendix – Potential Airline Loyalty Incentives
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- Figure 98: Likely incentives for choosing a particular airline regularly, by destination regions of travel flown in the last 12 months, April 2013
- Figure 99: Likely incentives for choosing a particular airline regularly, by types of airline of travel flown in the last 12 months, April 2013
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- Figure 100: Likely incentives for choosing a particular airline regularly, by classes of travel flown in the last 12 months, April 2013
- Figure 101: Likely incentives for choosing a particular airline regularly, by number of times flown in the last 12 months, April 2013
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- Figure 102: Likely incentives for choosing a particular airline regularly, by purpose of flights taken over the past 12 months, April 2013
- Figure 103: Most popular likely incentives for choosing a particular airline regularly, by demographics, April 2013
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- Figure 104: Next most popular likely incentives for choosing a particular airline regularly, by demographics, April 2013
- Figure 105: Other likely incentives for choosing a particular airline regularly, by demographics, April 2013
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Appendix – How Long Are Travellers Prepared to Spend on A Budget Flight?
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- Figure 106: Most popular length of time people are prepared to spend travelling by budget airline, by demographics, April 2013
- Figure 107: Next most popular length of time people are prepared to spend travelling by budget airline, by demographics, April 2013
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Appendix – Attitudes Towards Flying
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- Figure 108: Agreement with attitudes towards air travel, by destination regions of travel flown in the last 12 months, April 2013
- Figure 109: Agreement with attitudes towards air travel, by types of airline of travel flown in the last 12 months, April 2013
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- Figure 110: Agreement with attitudes towards air travel, by classes of travel flown in the last 12 months, April 2013
- Figure 111: Agreement with attitudes towards air travel, by purpose of flights taken over the past 12 months, April 2013
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- Figure 112: Agreement with attitudes towards flying, by demographics, April 2013
- Figure 113: Further agreement with attitudes towards flying, by demographics, April 2013
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- Figure 114: Agreement with other attitudes towards flying, by demographics, April 2013
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Appendix – Targeting Opportunities
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- Figure 115: Purpose of flights taken over the past 12 months, by target groups, April 2013
- Figure 116: Number of times flown in the last 12 months, by target groups, April 2013
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- Figure 117: Destination regions, types of airline and classes of travel flown in the last 12 months, by target groups, April 2013
- Figure 118: Important factors in choosing an airline, by target groups, April 2013
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- Figure 119: Likely incentives for choosing a particular airline regularly, by target groups, April 2013
- Figure 120: Length of time people are prepared to spend travelling by budget airline, by target groups, April 2013
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- Figure 121: Attitudes towards air travel (any agree), by target groups, April 2013
- Figure 122: Target groups, by demographics, April 2013
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