Table of Contents
Executive Summary
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- Long-haul holidays forecast to grow 12% in the next five years
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- Figure 1: Forecast volume of long-haul holidays taken by UK residents, 2010-20
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- Figure 2: Forecast value of long-haul holidays taken by UK residents, 2010-20
- Lower jet fuel prices will deliver higher long-haul capacity
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- Figure 3: Jet fuel prices, GBP per gallon, August 2010-August 2015
- Nearly 20% of all holidays are long-haul
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- Figure 4: Long-haul vs. short-haul holidays, by volume, 2009-14
- The US takes a 28% share
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- Figure 5: Top 10 long-haul holiday destinations, by volume, 2013-14
- 25-34s and the over-55s are the most likely to be long-haul holidaymakers
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- Figure 6: Percentage of the UK population who have taken a long-haul holiday in the last 5 years, June 2015
- Consumers would like to go further afield on their long-haul holidays
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- Figure 7: Next and ideal long-haul holiday destinations for UK residents who have taken a long-haul holiday in the last 5 years, June 2015
- Nearly 40% book their long-haul holidays over five months in advance
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- Figure 8: How far in advance the last long-haul holiday was booked, June 2015
- Cost of flights the main reason more consumers don’t go long-haul
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- Figure 9: Attitudes to long-haul travel by those who have taken a long-haul holiday in the last 5 years, June 2015
- What we think
Issues and Insights
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- Consumers want to be more adventurous on their long-haul holidays
- The facts
- The implications
- Price-conscious mind-set means tough market conditions despite predicted volume growth
- The facts
- The implications
The Market – What You Need to Know
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- Long-haul market set to grow 12% to 8.7 million holidays by 2020
- Favourable market conditions provide higher margin opportunities for travel companies
- The US and Caribbean are the fastest growing destinations for long-haul holidays
Market Size and Forecast
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- The long-haul market will grow to 8.7 million holidays by 2020
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- Figure 10: Forecast volume of long-haul holidays taken by UK residents, 2010-20
- Figure 11: Forecast value of long-haul holidays taken by UK residents, 2010-20
- Pent-up demand for long-haul holidays is likely to peak in 2016
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- Figure 12: Forecast volume of long-haul holidays taken by UK residents, 2010-20
- Low-cost long-haul holidays will dampen value growth over time
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- Figure 13: Forecast value of long-haul holidays taken by UK residents, 2010-20
Segment Performance
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- Long-haul holidays take a growing share compared to short-haul
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- Figure 14: Long-haul vs. short-haul holidays, by volume, 2009-14
- Long-haul package holidays gained share during 2014
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- Figure 15: Independent vs. non-independent long-haul holidays, by volume, 2009-14
- No-fly cruises to long-haul destinations are growing
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- Figure 16: Long-haul holiday trips taken, by transport type, 2009-14
- Jamaica and the UAE were the fastest growing destinations for 2014
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- Figure 17: Top 10 long-haul holiday destinations, by volume, 2013-14
- The US takes £1 out of every £3 spent on long-haul holidays
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- Figure 18: Top 10 long-haul holiday destinations, by value, 2013-14
- Caribbean destinations saw just under 90% volume growth in 2014
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- Figure 19: Best- and worst-performing destinations, by volume change, 2013-14
Market Drivers
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- Fuel prices at the lowest level since 2009
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- Figure 20: Jet fuel prices, GBP per gallon, September 2010-August 2015
- Long-haul family holidays are likely to rise as APD fees fall
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- Figure 21: Air passenger duty rates, 2013-16
- Sterling performs well against most long-haul destination currencies
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- Figure 22: Foreign exchange rate index, GBP against key long-haul destination currencies, January 2013-August 2015
- The ten most expensive destinations are all long-haul
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- Figure 23: Post office worldwide holiday costs barometer, January 2015
Launch Activity and Innovation
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- Long-haul route expansion through locally based joint ventures
- New aircraft bring luxury to consumers and efficiency to airlines
The Consumer – What You Need to Know
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- 40% of UK holidaymakers have taken a long-haul holiday in the last five years
- Consumers would like to head off to more exotic locations on long-haul holidays
- Nearly 40% book long-haul holidays over five months in advance
Who are the Long-haul Holidaymakers?
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- 40% of UK holidaymakers have travelled long-haul in the last five years
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- Figure 24: Percentage of the UK population who have taken a long-haul holiday in the last 5 years, June 2015
- Mid-income households and empty nesters are the most likely long-haul holidaymakers
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- Figure 25: Profile of long-haul holidaymakers in the last 5 years, June 2015
Long-haul Holiday Destinations and Types
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- Transatlantic destinations are the most popular for long-haul holidays
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- Figure 26: Destinations been to on long-haul holidays in the last 5 years, June 2015
- Consumers would like to go further afield for long-haul holidays
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- Figure 27: Next and ideal long-haul holiday destinations, June 2015
- A quarter of long-haul holidaymakers opt for experiential holidays
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- Figure 28: Type of long-haul holiday taken in the last 5 years
Long-haul Holiday Booking
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- Half of consumers book through one company
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- Figure 29: How last long-haul holiday was booked, June 2015
- Nearly 40% book long-haul holidays over five months in advance
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- Figure 30: How far in advance the last long-haul holiday was booked, June 2015
- Middle-income households are the most likely to book far in advance
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- Figure 31: How far in advance the last long-haul holiday was booked, by household income, June 2015
Attitudes to Long-haul Holidays
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- Accommodation quality is a high priority for long-haul holidaymakers
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- Figure 32: Attitudes to long-haul travel by those who have taken a long-haul holiday in the last 5 years, June 2015
- Peer recommendations have the biggest influence on destination choice
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- Figure 33: What influenced holidaymakers to choose their last long-haul destination, June 2015
- A third of holidaymakers use price comparison sites before they book
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- Figure 34: How long-haul holidaymakers use holiday related digital services, June 2015
Appendix – Data Sources, Abbreviations and Supporting Information
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- Data sources
- Definitions
- Abbreviations
- Fan chart forecast
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