Table of Contents
Executive Summary
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- A flat forecast for the UK holiday rental property market
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- Figure 1: Volume forecast for the domestic holiday rental property market, 2010-20
- Figure 2: Value forecast for the domestic holiday rental property market, 2010-20
- The UK holiday rental market has been flat since 2012
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- Figure 3: Volume of holiday rental properties used for domestic (UK) holidays, 2009-14
- Expenditure on domestic holiday rental properties has risen sharply since 2012
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- Figure 4: Expenditure on trips taken in domestic holiday rental property*, 2009-14
- Hotels performing well now as disposable income edges up
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- Figure 5: Number of domestic (GB) trips* in millions, by accommodation type, 2014
- Short-stay UK rental holidays are growing in popularity
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- Figure 6: Length of stay on domestic (GB) trips*, by accommodation, 2010-13
- Overseas holidays rise as consumer confidence grows, but rental property use dips
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- Figure 7: Overseas and domestic holiday volumes, 2009-14
- Agencies continue to take the lion’s share of bookings
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- Figure 8: Methods for booking a holiday rental property, December 2014
- Nearly a quarter of former renters have not hired a property in the last three years
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- Figure 9: Holiday rental property use on holiday in the UK and abroad, December 2014
- City holiday properties are the most popular for longer-term holidays
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- Figure 10: Top three locations for last holiday in a rental property, December 2014
- What consumers say about rentals will influence new bookings
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- Figure 11: Top five attitudes towards holiday rental property, December 2014
Issues and Insights
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- Property owners may need to adjust portfolios to reflect market trends
- The facts
- The implications
- Taxation for peer-to-peer rentals
- The facts
- The implications
- Will the threat of peer-to-peer rentals to the traditional market continue unchecked?
- The facts
- The implications
The Market – What You Need to Know
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- Domestic travel is declining but there are some opportunities for holiday rentals
- Overseas holidays are rising, however, rental properties will remain a challenging market
- Short-stay holidays are the key opportunity for domestic holiday rental
Market Size and Forecast
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- Short-term decline but long-term growth
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- Figure 12: Volume and value forecasts for domestic holiday rental property, 2010-20
- UK holiday rentals benefit from a rise in short-stay breaks
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- Figure 13: Types of accommodation used for domestic (GB) holidays in the past 12 months, 2013 and 2014
- The domestic rental market has declined only marginally since 2013
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- Figure 14: Volume of trips taken in domestic holiday rental property, 2009-14
- The amount spent on UK rentals grew by 5.5% during 2014
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- Figure 15: Expenditure on trips taken in domestic holiday rental property*, 2009-14
- Devon and Cornwall are still a UK holiday rental hotspot
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- Figure 16: Number of domestic holidays taken in holiday self-catering* property, by region, 2012 and 2013
- Overseas hotel bookings rise by 7 percentage points
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- Figure 17: Types of accommodation used for holidays abroad in the past 12 months, 2013 and 2014
Segment Performance
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- Self-catering properties are resilient in a declining market
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- Figure 18: Number of domestic (GB) trips*, by accommodation, 2010-14
- Nights spent in self-catering accommodation declined by 3.5% in 2014
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- Figure 19: Total number of nights spent on domestic (GB) trips*, by accommodation, 2010-14
- Expenditure on self-catering holidays increased in 2014
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- Figure 20: Expenditure on domestic (GB) trips*, by accommodation, 2010-14
- Short-stay holidays in the UK increase 5% during 2014
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- Figure 21: Length of stay on domestic (GB) trips*, by accommodation, 2010-13
Market Drivers
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- Overseas holidays continue to rise as consumer confidence grows
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- Figure 22: Overseas holiday volume, value and average expenditure, 2009-14
- Domestic holidays have declined 7.2% since 2009
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- Figure 23: Domestic (GB) holiday volume, value and average expenditure, 2009-14
- Independent holidays abroad are growing, delivering opportunities for the rental market
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- Figure 24: Volume of overseas package and independent holidays, 2009-14
- Holidays to cities in Italy, Belgium and the Netherlands are on the rise
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- Figure 25: Top 20 overseas holiday destinations, 2009-14
- Budget travel options continue to be attractive to holidaymakers
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- Figure 26: Scheduled passengers carried, by main low-cost airlines, 2009-14
Channels to Market
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- Nearly one in four renters will book direct with the owner
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- Figure 27: How last holiday rental property was booked, December 2014
- Single-room holiday rentals remain a small part of the market
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- Figure 28: Holidaymakers who have ever rented a room for a holiday while sharing the house with the homeowner, December 2014
Key Players – What You Need to Know
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- Competition between top two holiday rental listings agencies heats up
- Technology developments support both renters and owners
- Hoseasons introduces a new logo as well as a new luxury brand
Market Share
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- Airbnb success challenges the leading holiday rental agency
- Taxation becomes an issue for peer-to-peer renters
- HomeAway maintains the competitive advantage in terms of listings
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- Figure 29: Number of lettings, by holiday rental agency, as at May 2015
- Negative PR stories could affect the rate of peer-to-peer rentals
- Rental agencies increase their influence in the industry
Launch Activity and Innovation
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- Airbnb moves into the professional holiday rental sector
- New apps and app updates benefit renters as well as owners
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- Figure 30: iOS apps offered by holiday rental agencies
- Flexible pricing comes to the peer-to-peer rental sector
- Hoseasons introduces a new logo and launches a luxury brand
The Consumer – What You Need to Know
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- The market has untapped potential in those who have never rented a property
- City rentals are the most popular for long stays
- Convenience and entertainment are the most appealing features for rental holidays
Holiday Rental Property Usage
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- Half of consumers have never stayed in a holiday rental property
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- Figure 31: Holiday rental property use on holiday in the UK and abroad, December 2014
- Families with young children find rental property the most appealing
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- Figure 32: Holiday rental property use on holiday in the UK, by age of children in the household, December 2014
- Holidaymakers aged 30-44 present an opportunity to tempt a new audience to property rentals
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- Figure 33: Holiday rental property use on holiday abroad, by age, December 2014
Holiday Rental Property Locations
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- Holidaymakers use holiday rental properties to get away from it all
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- Figure 34: Location of last holiday in a rental property, December 2014
- Renting properties in cities is more popular abroad than in the UK
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- Figure 35: Location of last holiday in a rental property, by holiday destination, December 2014
Duration of Stays in Holiday Rental
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- One in five use holiday rentals for short breaks
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- Figure 36: How long holidaymakers stayed in holiday rental property during their last visit, December 2014
- A quarter use rentals abroad for a longer holiday
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- Figure 37: How long holidaymakers stayed in holiday rental property during their last visit, by holiday destination, December 2014
- City rentals are the most popular for longer holidays
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- Figure 38: How long people stayed in holiday rental property for last visit, by location, December 2014
Preferred Features in a Holiday Rental Property
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- Transfers to holiday rental properties are appealing
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- Figure 39: Features people look for when choosing holiday rental property, December 2014
Attitudes towards Holiday Rental Property
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- What holidaymakers say about a rental is influential for new bookings
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- Figure 40: Attitudes towards holiday rental property, December 2014
Appendix – Data Sources, Abbreviations and Supporting Information
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- Data sources
- Abbreviations
- Fan chart forecast
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- Figure 41: Best and worst case forecasts for domestic holiday property rental values, 2015-20
- Figure 42: Best and worst case forecasts for domestic holiday property rental volumes, 2015-20
- Definitions
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