Table of Contents
Introduction
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- Definition
- Abbreviations
Executive Summary
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- The market
- Holidays booked in-store down 13% over five years
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- Figure 1: Estimated number of holidays booked via travel agents, 2008-18
- Travel agents have maintained their share of overseas holidays
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- Figure 2: Estimated number of overseas holidays booked via travel agents, 2008-18
- The domestic segment has grown, but penetration remains low
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- Figure 3: Estimated number of domestic holidays booked via travel agents, 2008-18
- Market factors
- Draft Package Travel Directive leaves a lot of questions unanswered
- Market spared high-profile failures
- ABTA membership numbers have fallen, but branch office numbers are up
- Mobile internet penetration hits half of UK adults
- Market share
- Thomas Cook has maintained its lead, despite store closures
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- Figure 4: Top 10 UK travel agents, by number of retail stores, including concessions and partner stores, November 2013
- The consumer
- Travel agent shops play a vital role, outside of just in-store sales
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- Figure 5: Travel agent use in the last two years, October 2013
- Half of non-users think booking online is cheaper and quicker
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- Figure 6: Reasons for not booking through a travel agent shop, October 2013
- A price matching service would appeal to a third of adults
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- Figure 7: What would make travel agent shops more appealing, October 2013
- Decline in in-store bookings looks set to continue
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- Figure 8: Attitudes towards researching and booking a holiday, October 2013
- What we think
Issues in the Market
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- How will the launch of new concept stores affect the market?
- What will the Package Travel Directive reform mean for bricks-and-mortar travel agents?
- What role will shops play in the evolving multichannel sales model?
- How can sales personnel adapt to meet consumer demands?
Trend Application
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- Return to the Experts
- Let's Make a Deal
- Mintel Futures: Generation Next
Market Drivers
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- Key points
- Draft Package Travel Directive set to impact in-store sales
- Market spared high-profile failures
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- Figure 9: ATOL tour operator failures/closures in the UK, October 2012-November 2013
- ABTA membership numbers have fallen, but branch office numbers are up
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- Figure 10: ABTA membership, March 2012 and March 2013
- Figure 11: ABTA new membership numbers, January 2012-September 2013
- Mobile internet penetration hits half of UK adults
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- Figure 12: Home internet access and mobile internet access among UK adults, Q1 2008-Q1 2013
Who’s Innovating?
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- Key points
- Thomas Cook, TUI, Virgin and STA all unveil high-tech concept stores
- STA strikes industry first, offering guaranteed airfares for a £49 deposit
- TUI places agents in direct contact with holiday reps around the world
- DreamCatcher allows agents to earn commission from online sales
- Destinology system allows agents to compete with direct-sell rivals
Market Size and Forecast
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- Key points
- Holidays booked in-store down 13% over five years
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- Figure 13: Estimated number of holidays booked via travel agents, 2008-18
- Contraction in the market will continue through to 2018
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- Figure 14: Estimated number of holidays booked via travel agents, 2008-18
- Forecast methodology
Segment Performance
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- Key points
- Travel agents have maintained their share of overseas holidays…
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- Figure 15: Estimated number of overseas holidays booked via travel agents, 2008-18
- …but will not benefit from recovery in the wider overseas segment
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- Figure 16: Estimated number of overseas holidays booked via travel agents, 2008-18
- The domestic segment has grown, but penetration remains low
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- Figure 17: Estimated number of domestic holidays booked via travel agents, 2008-18
- Domestic bookings in-store to increase to 2.7 million by 2018
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- Figure 18: Estimated number of domestic holidays booked via travel agents, 2008-18
Market Share
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- Key points
- Thomas Cook maintains its lead, despite store closures
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- Figure 19: Top 10 UK travel agents, by number of retail stores, including concessions and partner stores, November 2013
- A range of brands are set on expanding their store portfolios
- Midcounties’ fledgling Co-op Consortium has enjoyed rapid growth
- Advantage retains Barrhead and welcomes members from Worldchoice
Companies and Products
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- Thomas Cook Group PLC
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- Figure 20: Financial performance of Thomas Cook Group PLC, 2011 and 2012
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- Figure 21: Financial performance of Thomas Cook Retail Limited, 2011 and 2012
- TUI
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- Figure 22: Financial performance of TUI Travel PLC, 2011 and 2012
- Advantage Travel Centres Limited
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- Figure 23: Financial performance of Advantage Travel Centres Limited, 2011 and 2012
- The Co-op Consortium
- The Travel Network Group (Worldchoice UK Limited)
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- Figure 24: Financial performance of Worldchoice Travel Limited, 2011 and 2012
- Figure 25: Financial performance of Worldchoice UK Limited, 2011 and 2012
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- Figure 26: Financial performance of TTA (2007) Limited, 2011 and 2012
- The Global Travel Group
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- Figure 27: Financial performance of The Global Travel Group Limited, 2011 and 2012
- Flight Centre (UK) Limited
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- Figure 28: Financial performance of Flight Centre (UK) Limited, 2011 and 2012
- STA Travel Limited
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- Figure 29: Financial performance of STA Travel Limited, 2011 and 2012
- Virgin Holidays Limited
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- Figure 30: Financial performance of Virgin Holidays Limited, 2012 and 2013
- Kuoni Travel Ltd
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- Figure 31: Financial performance of Kuoni Travel Limited, 2011 and 2012
Brand Research
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- Brand map
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- Figure 32: Attitudes towards and usage of brands in the travel agent sector, September 2013
- Correspondence analysis
- Brand attitudes
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- Figure 33: Attitudes, by travel agent brand, September 2013
- Brand personality
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- Figure 34: Travel agent brand personality – macro image, September 2013
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- Figure 35: Travel agent brand personality – micro image, September 2013
- Brand experience
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- Figure 36: Travel agent brand usage, September 2013
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- Figure 37: Satisfaction with various travel agent brands, September 2013
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- Figure 38: Consideration of travel agent brands, September 2013
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- Figure 39: Consumer perceptions of current travel agent brand performance, September 2013
- Brand index
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- Figure 40: Travel agent brand index, September 2013
- Target group analysis
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- Figure 41: Target groups, September 2013
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- Figure 42: Travel agent brand usage, by target groups, September 2013
- Group One – Conformists
- Group Two – Simply the Best
- Group Three – Shelf Stalkers
- Group Four – Habitual Shoppers
- Group Five – Individualists
The Consumer – Use of Travel Agents
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- Key points
- A third of holidaymakers bought a holiday in-store in the last two years
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- Figure 43: Travel agent use in the last two years, October 2013
- Travel agent shops play a vital role, outside of just in-store sales
- Under-25s are the most likely to have bought a product in-store
- Usage is lowest among the higher earners, wealthy achievers and ABs
The Consumer – Reasons for Not Booking using a Travel Agent
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- Key points
- Half of non-users think booking online is cheaper and quicker
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- Figure 44: Reasons for not booking through a travel agent shop, October 2013
- A quarter of non-users would book online to avoid speaking to staff
- Just 2% cite lack of a nearby shop as a reason for non-use
The Consumer – What Would Make Travel Agents More Appealing?
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- Key points
- A price matching service would appeal to a third of adults
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- Figure 45: What would make travel agent shops more appealing, October 2013
- New concept stores could perform well…
- …but there is less demand for expanding the concession model
- A quarter of the adult population will remain off limits to travel agent shops
The Consumer – Attitudes Towards Researching and Booking a Holiday
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- Key points
- Decline in in-store bookings looks set to continue
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- Figure 46: Attitudes towards researching and booking a holiday, October 2013
- Comparison sites remain a key challenge for retail stores
- Financial protection is a key driver behind in-store sales
- Brand recognition is a key benefit to having a strong high street presence
Appendix – Brand Research
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- Figure 47: Brand usage, September 2013
- Figure 48: Brand commitment, September 2013
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- Figure 49: Brand momentum, September 2013
- Figure 50: Brand diversity, September 2013
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- Figure 51: Brand satisfaction, September 2013
- Figure 52: Brand attitude, September 2013
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- Figure 53: Brand image – macro image, September 2013
- Figure 54: Brand image – micro image, September 2013
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- Figure 55: Profile of target groups, by demographics, September 2013
- Figure 56: Psychographic segmentation, by target groups, September 2013
- Figure 57: Brand usage, by target groups, September 2013
- Brand index
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- Figure 58: Brand index, September 2013
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Appendix – The Consumer – Use of Travel Agents
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- Figure 59: Travel agent use in the last two years, October 2013
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- Figure 60: Travel agent use by holidaymakers in the last two years, October 2013
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- Figure 61: Travel agent use in the last two years, by demographics, October 2013
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- Figure 62: Travel agent use in the last two years, by demographics, October 2013 (continued)
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- Figure 63: Travel agent use in the last two years, by demographics, October 2013 (continued)
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- Figure 64: Travel agent use in the last two years, by demographics, October 2013 (continued)
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- Figure 65: Travel agent use by holidaymakers in the last two years, by demographics, October 2013
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- Figure 66: Travel agent use by holidaymakers in the last two years, by demographics, October 2013 (continued)
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- Figure 67: Travel agent use by holidaymakers in the last two years, by demographics, October 2013 (continued)
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Appendix – The Consumer – Reasons for Not Booking using a Travel Agent
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- Figure 68: Reasons for not booking through a travel agent shop, October 2013
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- Figure 69: Reasons for not booking through a travel agent shop, by demographics, October 2013
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- Figure 70: Reasons for not booking through a travel agent shop, by demographics, October 2013 (continued)
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Appendix – The Consumer – What Would Make Travel Agents More Appealing?
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- Figure 71: What would make travel agent shops more appealing, October 2013
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- Figure 72: What would make travel agent shops more appealing, by demographics, October 2013
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- Figure 73: What would make travel agent shops more appealing, by demographics, October 2013 (continued)
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- Figure 74: What would make travel agent shops more appealing, by travel agent use in the last two years, October 2013
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- Figure 75: What would make travel agent shops more appealing, by travel agent use in the last two years, October 2013 (continued)
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- Figure 76: Travel agent use in the last two years, by what would make travel agent shops more appealing, October 2013
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- Figure 77: Travel agent use in the last two years, by what would make travel agent shops more appealing, October 2013 (continued)
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Appendix – The Consumer – Attitudes Towards Researching and Booking a Holiday
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- Figure 78: Attitudes towards researching and booking a holiday, October 2013
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- Figure 79: Attitudes towards researching and booking a holiday, by demographics, October 2013
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- Figure 80: Attitudes towards researching and booking a holiday, by demographics, October 2013 (continued)
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- Figure 81: Attitudes towards researching and booking a holiday, by travel agent use in the last two years, October 2013
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- Figure 82: Attitudes towards researching and booking a holiday, by travel agent use in the last two years, October 2013 (continued)
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- Figure 83: Travel agent use in the last two years, by attitudes towards researching and booking a holiday, October 2013
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- Figure 84: Travel agent use in the last two years, by attitudes towards researching and booking a holiday, October 2013 (continued)
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