Table of Contents
Overview
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- What you need to know
- Scope of the Report
Executive Summary
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- The market
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- Figure 1: Average UK weekly earnings including bonuses (seasonally adjusted), August 2014-August 2016
- UK expected to be strong contributor to HNWI population growth
- Strong growth in the ultra-luxury cruise market
- The consumer
- Just over one in 10 are luxury big-ticket holidaymakers
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- Figure 2: Luxury holidaymaker groups, August 2016
- Luxury holidaymakers favour spa treatments, private pools and beaches
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- Figure 3: Luxury services and elements on most expensive holidays, August 2016
- Number of luxury elements and services luxury holidaymakers use
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- Figure 4: Luxury traveller groups, August 2016
- The Super Luxury group has a slight male bias
- Luxury holidaymakers are more sensitive to the effects of Brexit
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- Figure 5: Attitudes towards Brexit, by groups, August 2016
- Luxury travellers more than twice as likely to have used VR technology
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- Figure 6: Attitudes towards holidays, by groups, August 2016
- What we think
Issues and Insights
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- Travel agents can prosper in the luxury niche
- The facts
- Package holidays are popular amongst luxury travellers
- Experience is all in the luxury market
- Luxury holidaymakers show more concern over negative effects of Brexit
- Luxury holidaymakers are more sensitive to the effects of Brexit
- Flexible payments can encourage bookings
The Market – What You Need to Know
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- Still too early to determine the full of effects of the Brexit vote
- Average income for wealthiest fifth of UK households is £62,500
- Seniors will be an important target group for luxury brands
- UK expected to be strong contributor to HNWI population growth
- Oil price remains low benefiting consumers and airlines
- Strong growth in the luxury cruise market
Socio-economic Data and Market Drivers
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- Average income for richest fifth of UK households is £62,500
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- Figure 7: Average UK weekly earnings including bonuses (seasonally adjusted), August 2014-August 2016
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- Figure 8: Average annual household income after tax and benefits, 2008/09-2014/15
- Real wage increase boosts overseas holiday volume
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- Figure 9: Average weekly earnings (AWE) including bonuses (seasonally adjusted), versus CPIH, 2011-16
- UK expected to be strong contributor to HNWI population growth
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- Figure 10: Top 10 nations for HNWIs, 2014 versus 2015
- Oil price remains low benefiting consumers and airlines
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- Figure 11: Brent crude spot oil price (US$ per barrel), November 2013-November 2016
- The Pound falls sharply and remains low following the ‘leave’ vote
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- Figure 12: Pound Sterling’s value against selected currencies, 1 June versus 18 November 2016
Market Segmentation
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- Huge demand for overseas holidays in 2015 and in H1 2016
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- Figure 13: Long-haul, short-haul and total holiday volume, 2010-15
- Figure 14: Holiday volume, H1 2015 versus H1 2016
- Strong growth in the ultra-luxury cruise market
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- Figure 15: Volume of UK ultra-luxury cruises passengers, 2010-15
Luxury Travel Specialists’ Launch Activity
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- Key players’ revenue from 2008 to 2015
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- Figure 16: Specialist luxury holiday operators, annual turnover, 2008-15
- Kuoni Group sells Kuoni brands to DER Touristik
- 3i invests £159 million into Audley Travel
- Abercrombie & Kent acquired by Chinese Zhonghong Holdings
- New itineraries for Abercrombie & Kent
- Destinology boosts Saga profits
- Millionaires’ Holiday Club ITC Travel sold to private equity firm North Edge
The Consumer – What You Need to Know
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- Older Millennials are big spenders on holidays
- Londoners are key targets for luxury operators
- Luxury holidaymakers favour spa treatments, private pools and beaches
- Luxury holidaymaker groups
- Luxury holidaymakers are more sensitive to the effects of Brexit
Defining the Luxury Traveller
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- Figure 17: Luxury holidaymaker groups, August 2016
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Holiday Spending
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- A third of people have spent over £1,000 on their most expensive holiday
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- Figure 18: Amount spent on most expensive holiday in the past five years, September 2016
- Older Millennials are big spenders on holidays
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- Figure 19: Amount spent on most expensive holiday in the past five years, by age, September 2016
- Londoners are key targets for luxury operators
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- Figure 20: Amount spent on most expensive holiday in the past five years, by region, September 2016
- Length of most expensive holiday
- Short luxury breaks for the cash-rich, time-poor
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- Figure 21: Length of most expensive holiday in the past five years, September 2016
Luxury Accommodation Usage
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- Five-star hotels are proving more accessible to the average holidaymaker
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- Figure 22: Length of most expensive holiday in the past five years, September 2016
Luxury Services and Levels of Luxury
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- Luxury holidaymakers favour spa treatments, private pools and beaches
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- Figure 23: Luxury services and elements on most expensive holidays, August 2016
- Number of luxury elements and services luxury holidaymakers use
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- Figure 24: Luxury services and elements on most expensive holidays, August 2016
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- Figure 25: Luxury traveller groups, August 2016
- The Super Luxury group has a slight male bias
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- Figure 26: Luxury services and elements on most expensive holidays, by gender. August 2016
- Half of Super Luxury travellers have spent £250+ per night on rooms
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- Figure 27: Use of luxury/high-cost holiday accommodation, by luxury groups, August 2016
- Four in five Big-ticket Holiday Spenders used luxury elements/services
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- Figure 28: Luxury groups, by Big-ticket Spenders, August 2016
Luxury Holidaymaker Profiles – a Recap
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- Figure 29: Luxury holidaymaker groups, August 2016
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Luxury Destinations
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- North America popular among Luxury Big-ticket Holiday Spenders
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- Figure 30: Most expensive holiday destination in the past five years, August 2015
- Asia may prove to be a popular alternative to the US
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- Figure 31: Top 10 countries visited, by volume, H1 2015 versus H1 2016
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- Figure 32: Top 10 countries visited, by value, H1 2015 versus H1 2016
- South Africa offers opportunity for luxury travellers on a budget
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- Figure 33: Selected countries, by volume, H1 2015 versus H1 2016
- Figure 34: Selected countries, by value, H1 2015 versus H1 2016
- Experiential multi-destination trips for ultra-luxury travellers
Luxury Holiday Booking
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- Packaged products are popular amongst luxury travellers
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- Figure 35: Luxury holiday booking, August 2016
- Travel agents can prosper in experience-led luxury market
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- Figure 36: How package was booked, August 2016
Luxury Travellers’ Brexit Attitudes
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- Brexit and the economic outlook of luxury travellers
- Luxury holidaymakers are more sensitive to the effects of Brexit
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- Figure 37: Attitudes towards holiday, by groups, August 2016
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- Figure 38: Attitudes towards Brexit, by groups, August 2016
- Making the holidaymaker feel like they are shopping intelligently
Attitudes towards Holidays by Holidaymaker Groups
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- Luxury holidaymakers are economising on travel to trade up on accommodation
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- Figure 39: Attitudes towards holiday, by groups, August 2016
- Luxury travellers more than twice as likely to have used VR technology
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- Figure 40: Attitudes towards holiday, by groups, August 2016
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- Figure 41: Attitudes towards holiday, by groups, August 2016
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
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