Table of Contents
Executive Summary
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- The market
- Decline in the number of holidays booked in-store is set to continue
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- Figure 1: Estimated number of holidays booked via travel agents, 2009-19
- In-store sales unlikely to benefit from an outbound recovery
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- Figure 2: Estimated number of overseas holidays booked via travel agents, 2009-19
- In-store domestic holiday sales expected to remain flat
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- Figure 3: Estimated number of domestic holidays booked via travel agents, 2009-19
- Market factors
- Package holidays performed comparatively well during the recession…
- … but the long-term shift to independent bookings is set to resume
- Domestic market should avoid contraction, despite an outbound recovery
- High street agents could enjoy a minor boost from operator failures
- ATOL changes could increase costs for smaller firms
- Companies, brands and innovation
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- Figure 4: Top 10 UK travel agents, by number of retail stores, including concessions and partner stores, November 2014
- Thomas Cook’s retail estate remains the largest in the UK
- Virgin Holidays expands its ‘retail lite’ concept store
- Hays Travel acquires Bath Travel and its 60 retail stores
- Flight Centre remains committed to the high street
- Midcounties’ expansion continues after acquiring six new branches
- Big two continue to dominate the UK market by passengers licensed
- The consumer
- Use of travel agents has fallen from a third to a fifth in just one year
- Usage highly fragmented outside the top two operators
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- Figure 5: Travel agent brands used, September 2014
- Customer experience is the linchpin for maintaining in-store sales
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- Figure 6: Influencers on choice of travel agent, September 2014
- Demand for differentiated products is low, despite strong sales
- A third of customers carry out their own research before booking in-store
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- Figure 7: Attitudes towards travel agents, September 2014
- Visitors prefer to go away and think about options
- There is an opportunity to improve the sale of ancillary products
- Half of adults interested in concept store features
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- Figure 8: Demand for in-store features, September 2014
- What we think
Issues and Insights
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- Can the rollout of new concept stores save the high street?
- The facts
- The implications
- How can agents cater to a better-informed customer?
- The facts
- The implications
Trend Application
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- Trend: Guiding Choice
- Trend: Influentials
- Mintel Futures: Human
Market Drivers
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- Key points
- Package holidays performed comparatively well during the recession…
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- Figure 9: Forecast volume of UK overseas package holidays, 2008-18
- … but the long-term shift to independent bookings looks set to resume
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- Figure 10: Forecast volume of UK overseas independent holidays, 2008-18
- Domestic market should avoid contraction, despite an outbound recovery
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- Figure 11: Forecast volume of domestic holidays, 2019-19
- High street agents could enjoy a minor boost from operator failures
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- Figure 12: ATOL tour operator failures/closures in the UK, 1 January-20 October 2014
- ATOL changes could increase costs for smaller firms
Who's Innovating?
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- Key points
- Thomas Cook trials in-store virtual reality content
- Virgin Holidays to expand its v-room lounges to the high street
- Thomas Cook launches holiday deals through Twitter
- Virgin Holidays and Microsoft partner to launch Plan-it Mojo
Market Size and Forecast
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- Key points
- Decline in in-store bookings set to continue
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- Figure 13: Estimated number of holidays booked via travel agents, 2009-19
- In-store sales unlikely to benefit from an outbound recovery
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- Figure 14: Estimated number of overseas holidays booked via travel agents, 2009-19
- In-store domestic holiday sales expected to remain flat
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- Figure 15: Estimated number of domestic holidays booked via travel agents, 2009-19
- Forecast methodology
Market Share
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- Key points
- Thomas Cook’s retail estate remains the largest in the UK
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- Figure 16: Top 10 UK travel agents, by number of retail stores, including concessions and partner stores, November 2014
- Virgin Holidays expands its ‘retail lite’ concept store
- Hays Travel acquires Bath Travel and its 60 retail stores
- Flight Centre remains committed to the high street
- Midcounties continues expansion after acquiring six new branches
- Big two continue to dominate by passengers licensed
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- Figure 17: Top 20 UK travel companies, ranked by ATOL passenger licences, October 2014
Companies and Products
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- Thomas Cook Group PLC
- Background
- Financial performance and strategy
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- Figure 18: Financial performance of Thomas Cook Group PLC, 2012 and 2013
- TUI Travel PLC
- Background
- Financial performance and strategy
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- Figure 19: Financial performance of TUI Travel PLC, 2012-14
- Virgin Holidays Limited
- Background
- Financial performance and strategy
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- Figure 20: Financial performance of Virgin Holidays Limited, 2012 and 2013
- The Midcounties Co-operative Ltd
- Background
- Financial performance and strategy
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- Figure 21: Financial performance of The Midcounties Co-operative, 2013 and 2014
- STA Travel Limited
- Background
- Financial performance and strategy
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- Figure 22: Financial performance of STA Travel Limited, 2012 and 2013
- Flight Centre (UK) Limited
- Background
- Financial performance and strategy
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- Figure 23: Financial performance of Flight Centre (UK) Limited, 2012 and 2013
Brand Research
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- Brand map
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- Figure 24: Attitudes towards and usage of brands in the travel agent sector, September 2014
- Correspondence analysis
- Brand attitudes
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- Figure 25: Attitudes, by travel agent brand, September 2014
- Brand personality
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- Figure 26: Travel agent brand personality – macro image, September 2014
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- Figure 27: Travel agent brand personality – micro image, September 2014
- Brand experience
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- Figure 28: Travel agent brand usage, September 2014
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- Figure 29: Satisfaction with various travel agent brands, September 2014
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- Figure 30: Consideration of travel agent brands, September 2014
- Brand recommendation
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- Figure 31: Recommendation of selected travel agent brands, September 2014
The Consumer – Use of Travel Agents
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- Key points
- Use of travel agents has fallen from a third to a fifth in just one year
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- Figure 32: Use of travel agents, September 2014
- Usage is highly fragmented outside of the Thomas Cook-TUI duopoly
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- Figure 33: Travel agent brands used, September 2014
The Consumer – Influences of Choice of Travel Agent
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- Key points
- Customer experience is the linchpin for maintaining in-store sales
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- Figure 34: Influencers on choice of travel agent, September 2014
- Demand for financial protection could provide a boost to in-store sales
- Demand for differentiated products is low, despite strong sales
- Over-65s the least likely to be influenced by sales or discounts
- Clear age divide in demand for expert staff
The Consumer – Attitudes towards Travel Agents
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- Key points
- A third of customers do their own research before booking in-store
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- Figure 35: Attitudes towards travel agents, September 2014
- Pushing for immediate sales can be a deterrent
- Opportunities to improve the sale of ancillary products
- Trust is key to building customer loyalty
The Consumer – Demand for In-store Features
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- Key points
- The positive impact of concept stores will be limited
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- Figure 36: Demand for in-store features, September 2014
Appendix – Market Size and Forecast
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- Figure 37: Forecast number of holidays booked via travel agents, 2014-19
- Figure 38: Forecast number of overseas holidays booked via travel agents, 2014-19
- Figure 39: Forecast number of domestic holidays booked via travel agents, 2014-19
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