Table of Contents
Executive Summary
-
- A robust forecast for overseas holidays
-
- Figure 1: Best- and worst-case forecast for volume of UK overseas independent holidays, 2009-19
- Figure 2: Best- and worst-case forecast for volume of UK overseas package holidays, 2009-19
- Independent holidays are the most popular regardless of destination
-
- Figure 3: Holiday destination by holiday type, November 2014
- The top two market players improve their market share
-
- Figure 4: Holiday type booked by affluent holidaymakers, November 2014
- Consumers continue to look for good value despite a healthier economy
-
- Figure 5: Percentage of holidays booked as a package, November 2014
Issues and Insights
-
- The Package Travel Directive will pose new challenges for online operators
- The facts
- The implications
- Short-hop holidays are on the rise as consumers compromise on length of stay to maximise their holiday budget
- The facts
- The implications
- Holidays with a purpose will be a growing trend in 2015
- The facts
- The implications
The Market – What You Need to Know
-
- Improved confidence to boost holiday spend in 2015
- PTD could make life difficult for companies
- Strong pound encourages trips abroad
- APD reform to boost long-haul market
- Short-stay Euro breaks growing
- Cruise market activity indicates a positive 2015
- Consumers look to friends and family/review sites for recommendations
Market Size and Forecast
-
- Growth is forecast for both package and independent overseas holidays
-
- Figure 6: Forecast volume of UK overseas (independent and packaged holidays), 2009-19
-
- Figure 7: Forecast value of UK overseas (independent and then packaged holidays), 2009-19
- Economic and regulatory factors combine to boost the overseas market
- Forecasts
-
- Figure 8: Forecast volume of UK overseas independent holidays, 2009-19
- Figure 9: Forecast volume of UK overseas package holidays, 2009-19
- Figure 10: Forecast value of UK overseas independent holidays, 2009-19
- Figure 11: Forecast value of UK overseas package holidays, 2009-19
Segment Performance
-
- Holidaymakers fall back in love with city breaks…
- …but exotic destinations are also looking attractive
-
- Figure 12: Package vs independent overseas holidays, by long-haul vs short-haul, 2009-14
- Air travel outperforms the rest of the market
-
- Figure 13: Package vs independent overseas holidays, by transport method, 2009-14
- European short-hop destinations grow in popularity…
- …as do the USA and Mexico
-
- Figure 14: Top 10 overseas package holiday destinations, by volume, 2013 and 2014
- The Caribbean continues to be a package holiday hot spot
-
- Figure 15: Top 10 overseas package holiday destinations, by market share of package bookings, 2013-14
- Short stay UK holidays will perform better than long stay in 2015
-
- Figure 16: Short vs long holidays in Great Britain, by volume, 2009-14
- Figure 17: UK domestic holidays, by holiday type, November 2014
Market Drivers
-
- UK economic health will boost holiday spending
- Scrapping of top two APD bands will provide a boost to long-haul
-
- Figure 18: Air Passenger Duty (APD) rates April 2012-April 2015
- The Package Travel Directive makes its way through the EU parliament
- Online search will push consumers towards independent holidays
-
- Figure 19: Holiday research sources used for holidays taken in the last 12 months, September 2014
Key Players – What You Need to Know
-
- TUI and Thomas Cook maintain market dominance…
- …but are trumped by Trivago on adspend
- 2014 sees specialist activity resort launches
- P2P providers to boost independent market
- Luxury segment expansion
- Technology provides cross-selling opportunities
Market Share
-
- The top two tour operators take a 44% share of the top 10
-
- Figure 20: Passengers licensed under ATOL protection, by top 10 ATOL holders, 2012-14
- Large tour operators continue to invest in online
-
- Figure 21: ATOL tour operator failures/closures in the UK, march 2013-January 2015
Brand Communication and Promotion
-
- Independent holiday services dominate advertising spend
-
- Figure 22: Main monitored media advertising spend on travel*, by top 10 advertisers in 2014, 2012-14
- TV takes over half of advertising budgets
-
- Figure 23: Main monitored media advertising spend on travel*, by media type by top 10 advertisers 2012-14
Launch Activity and Innovation
-
- Travel with a purpose
- Curated authentic experiences
- Holiday memories as a service
- Social media selling
- Luxury package brands may struggle to find their market share
-
- Figure 24: Destination of holiday, by household income level, November 2014
- Cruise operators banking on growth in 2015
- Technology enabled package holidays
The Consumer – What You Need to Know
-
- UK trips largely independent with overseas trips evenly split
- Families hit the city as well as beach
- Value perceptions drive both main booking methods
- Location first for independents
- Package profile skews to middle-income consumers
- Potential pent-up demand among 35-54s
- Long-haul travellers less likely to be inspired by agents
Holiday Behaviours
-
- Over half of UK holidaymakers book holidays independently
-
- Figure 25: Method of booking for holidays taken in the UK or abroad, November 2014
- 31% of those aged 35-54 did not take a holiday last year
-
- Figure 26: Holiday destination, by age group, November 2014
-
- Figure 27: Type of holiday booked, by age group, November 2014
- City breaks are almost as popular as beach holidays for families
-
- Figure 28: Type of holiday booked, by age of children in the family, November 2014
-
- Figure 29: Type of holiday taken, by age of children in the family, November 2014
Attitudes to Package Holidays
-
- Value for money is the top reason for booking package holidays
-
- Figure 30: Package holiday booking - attitudes and habits, November 2014
- Relaxation holidays are more likely to be booked as a package
-
- Figure 31: Type of holiday taken in the last 12 months (UK or abroad), by method of booking last holiday abroad, November 2014
- Middle income households are more likely to book package holidays
-
- Figure 32: Type of holiday abroad booked, by household income, November 2014
Attitudes to Independent Holidays
-
- Independent holiday bookers focus on location first
-
- Figure 33: Independent holiday booking - attitudes and habits, November 2014
-
- Figure 34: Independent holiday booking – attitudes and habits, by holiday type, November 2014
Appendix – Data Sources, Abbreviations and Supporting Information
-
- Data sources
- Abbreviations
- Fan chart forecast
Back to top