Table of Contents
Overview
-
- What you need to know
- Products covered in this Report
Executive Summary
-
- The market
- Total expenditure grew by 4% in 2017
-
- Figure 1: Forecast for annual expenditure on overseas trips by UK residents, 2012-22
- 85% of people arrange travel money prior to travel
-
- Figure 2: Arrangement of travel money for holidays abroad, November 2017
- Annual increase in visits slows to 0.4%
-
- Figure 3: Number of overseas visits by UK residents, by purpose, 2010-17
- Sterling is still struggling against the euro
-
- Figure 4: Spot exchange rates, monthly average, US Dollar-Sterling and euro-Sterling, January 2010-January 2018
- Companies and brands
- Adspend drops to £3.6 million in 2017
-
- Figure 5: Total above-the-line, online display and direct mail advertising expenditure on travel money (including prepaid cards), 2013-17
- Post Office is seen as the most trusted and differentiated brand
-
- Figure 6: Attitudes towards and usage of selected brands, November 2017
- The consumer
- Three quarters of people used travel money abroad
-
- Figure 7: Method of spending money on holiday abroad, 2015-17
- Foreign currency is seen as the most convenient
-
- Figure 8: Perceptions of travel money, November 2017
- Getting the best exchange rate is key
-
- Figure 9: Most important factors for travel money, November 2017
- 84% take more notice of exchange rates before travel
-
- Figure 10: Exchange rate monitoring behaviour, November 2017
- 35% of people are interested in receiving notifications about exchange rate changes
-
- Figure 11: Interest in travel money features, November 2017
- Security is the biggest concern for consumers
-
- Figure 12: Attitudes towards travel money, November 2017
- What we think
Issues and Insights
-
- The Pound is struggling against the Dollar and euro
- The facts
- The implications
- Convenience may be more influential than consumers let on
- The facts
- The implications
- Security is an important consideration for people
- The facts
- The implications
The Market – What You Need to Know
-
- Total expenditure grew by 4% in 2017
- 85% of people arrange travel money prior to travel
- Volume growth has slowed
Market Size and Forecast
-
- Total expenditure grew by 4% in 2017
-
- Figure 13: Total annual expenditure on overseas trips by UK residents, 2010-17
- Expenditure on holidays rose by 4% in 2017
- Expenditure abroad for business reasons decreased in 2017
-
- Figure 14: Annual expenditure on overseas trips by UK residents, by purpose of visit, 2010-17
- Europe accounts for the majority of overseas spending…
- …while expenditure in North America fell by 4%
-
- Figure 15: Annual expenditure on overseas trips by UK residents, by region of visit, 2010-17
- Growth expected to be slow and steady
-
- Figure 16: Forecast for annual expenditure on overseas trips by UK residents, 2012-22
- Figure 17: Forecast for annual expenditure on overseas trips by UK residents, at current and constant prices, 2012-22
- Forecast methodology
Channels to Market
-
- 85% of people arrange travel money prior to travel
-
- Figure 18: Arrangement of travel money for holidays abroad, November 2017
- Four fifths of consumers use one method to arrange travel money
-
- Figure 19: Repertoire of methods of arranging travel money, November 2017
- Two thirds collected travel money in-store
-
- Figure 20: Collection of travel money, November 2017
- Millennials are the most likely to use an ATM
-
- Figure 21: Collection of travel money, by generation, November 2017
Market Drivers
-
- Annual increase in visits slows to 0.4%
-
- Figure 22: Number of overseas visits by UK residents, by purpose, 2010-17
- Europe accounts for 80% of overseas visits
-
- Figure 23: Number of overseas visits by UK residents, by region visited, 2010-17
- Holiday bookings held up in 2017
-
- Figure 24: Booked holidays in the last three months and intentions to book a holiday in the next three months, June 2013-November 2017
- Sterling is still struggling against the euro…
- …while the Dollar is its own worst enemy
-
- Figure 25: Spot exchange rates, monthly average, US Dollar-Sterling and euro-Sterling, January 2010-January 2018
Companies and Brands – What You Need to Know
-
- Adspend drops to £3.6 million in 2017
- Post Office is seen as the most trusted and differentiated brand
- AI is revitalising travel money, while brands are split on ATM fees
Competitive Strategies
-
- Strong demand for local collection of travel money
- AI is revitalising travel money
- Monzo introduces overseas ATM fees…
- …while the Global ATM Alliance removes them
- Monzo ends prepaid travel card
- Prepaid multi-currency card/apps
- Open Banking presents an opportunity
Advertising and Marketing Activity
-
- Adspend drops to £3.6 million in 2017
-
- Figure 26: Total above-the-line, online display and direct mail advertising expenditure on travel money (including prepaid cards), 2013-17
- Post Office accounted for 44% of adspend on travel money
-
- Figure 27: Top 10 advertisers on above-the-line, online display and direct mail advertising expenditure on travel money (including prepaid cards), 2015-17
- Adspend on digital accounts for 54%
-
- Figure 28: Total above-the-line, online display and direct mail advertising expenditure on travel money (including prepaid cards), by media type, 2017
- Nielsen Ad Intel coverage
Brand Research
-
- What you need to know
- The Post Office is seen as the most trusted and differentiated brand
- Brand map
-
- Figure 29: Attitudes towards and usage of selected brands, November 2017
- Key brand metrics
-
- Figure 30: Key metrics for selected brands, November 2017
- Brand attitudes: Tesco Bank rewards loyalty
-
- Figure 31: Attitudes, by brand, November 2017
- Brand personality: Thomas Cook is the most fun
-
- Figure 32: Brand personality – macro image, November 2017
- Post Office is the most reliable
-
- Figure 33: Brand personality – micro image, November 2017
- Brand analysis
- Post Office is seen as the most reliable and helpful provider
- Thomas Cook is seen as the most fun brand
- Tesco Bank rewards loyalty
The Consumer – What You Need to Know
-
- Three quarters of people used travel money abroad
- Foreign currency is seen as the most convenient
- Getting the best exchange rate is key
- 84% take more notice of exchange rates before travel
- 19% of people are interested in a mobile app that tracks spending
- Security is the biggest concern for consumers
Methods of Spending Abroad
-
- Three quarters of people used travel money abroad
-
- Figure 34: Method of spending money on holiday abroad, 2015-17
- Under-45s are more likely to use prepaid cards
- 25-34s are most likely to use a debit card abroad
-
- Figure 35: Method of spending money on holiday abroad, by age, November 2017
- Half of consumers use one method of spending money abroad
-
- Figure 36: Repertoire of ways of spending money abroad, November 2017
Perceptions of Travel Money
-
- Foreign currency is seen as the most convenient way to spend money
- A third of people consider prepaid cards convenient
-
- Figure 37: Perceptions of travel money, November 2017
- Under-45s are most likely to see prepaid travel/currency cards as innovative
-
- Figure 38: Association with innovation for prepaid travel or currency cards, by age, November 2017
-
- Figure 39: Correspondence analysis, November 2017
Factors Affecting Choice of Travel Money
-
- Getting the best exchange rate is key
- Convenience is important
-
- Figure 40: Most important factors for travel money, November 2017
- A well-known brand is more important to Millennials…
- …while Generation X and Baby Boomers seek value for money
-
- Figure 41: Most important factors for travel money, by generation, November 2017
Monitoring of Exchange Rates
-
- 84% take more notice of exchange rates before travel…
- …while 47% regularly monitor rates
-
- Figure 42: Exchange rate monitoring behaviour, November 2017
- Millennials are much more likely to find exchange rates confusing
-
- Figure 43: Exchange rate monitoring behaviour, by generation, November 2017
Interest in Features
-
- 19% of people are interested in a mobile app that tracks spending
-
- Figure 44: Interest in travel money features, November 2017
- 35% are interested in notifications about exchange rate changes
- Millennials are the key demographic for exchange rate notifications
-
- Figure 45: Key demographic target group for exchange rate notifications – CHAID – Tree output, December 2017
Attitudes towards Travel Money
-
- Security is the biggest concern for consumers
-
- Figure 46: Attitudes towards travel money, November 2017
- Older Millennials are more likely to worry about having all their money in cash
-
- Figure 47: Attitudes towards the security of travel money in cash and debit/credit card, by generation, November 2017
Appendix – Data Sources, Abbreviations and Supporting Information
-
- Abbreviations
- Consumer research methodology
- Correspondence analysis methodology
-
- Figure 48: Correspondence analysis for perceptions of travel money, November 2017
- CHAID analysis methodology
-
- Figure 49: Key demographic target group for exchange rate notifications – CHAID – Table output, November 2017
Appendix – Market Size and Forecast
-
-
- Figure 50: Best- and worst-case forecast of annual expenditure on overseas trips by UK residents, at current and constant prices, 2017-22
- Forecast methodology
-
Back to top