Table of Contents
Overview
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- What you need to know
- Scope of this Report
Executive Summary
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- The market
- European holidays still in high demand
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- Figure 1: Forecast volume of short-haul holidays taken by UK residents (number of trips), 2013-23
- Figure 2: Forecast value of short-haul holidays taken by UK residents*, 2013-23
- Long-haul market set to stutter
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- Figure 3: Forecast volume of long-haul holidays taken by UK residents (number of trips), 2013-23
- Figure 4: Forecast value of long-haul holidays taken by UK residents*, 2013-23
- Spain reigns supreme in short-haul market
- US suffers decline in wake of currency crash
- Companies and brands
- Increasing number of low-budget options
- Airports and airlines innovate to offer more seamless travelling
- The consumer
- Staycations are more popular than holidays to Europe
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- Figure 5: Holiday destinations visited in the last two years, July 2018
- Operators can encourage consumers to slow it all down
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- Figure 6: Reasons for choosing most recent holiday destination, July 2018
- Word of mouth is the best form of advertising
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- Figure 7: Holiday influencers, July 2018
- Nearly half of short-haul holidaymakers want to soak up the sun
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- Figure 8: Short-haul vs long-haul holiday preferences, July 2018
- A fifth of long-haul travellers flew with a budget airline
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- Figure 9: Type of flight/transport taken on long-haul holidays, July 2018
- One in four people are likely to visit the US in the next five years
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- Figure 10: Intentions to visit long-haul destinations in the next five years, July 2018
- What we think
Issues and Insights
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- Encouraging more people to look beyond Europe
- The facts
- The implications
- Staycations pose a bigger threat to the short-haul market
- The facts
- The implications
The Market – What You Need to Know
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- European holidays still in high demand
- Long-haul market set to stutter
- Short break market reaches record high
- Spain reigns supreme in short-haul market
- US suffers decline in wake of currency crash
- Playing the exchange rates
- Heatwave may cool interest in summer holidays abroad
Market Size and Forecast – Short-haul
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- European holidays still in high demand
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- Figure 11: Forecast volume and value* of short-haul holidays taken by UK residents, 2013-23
- Rise in staycations could curb short-haul growth
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- Figure 12: Forecast volume of short-haul holidays taken by UK residents (number of trips), 2013-23
- Figure 13: Forecast value of short-haul holidays taken by UK residents*, 2013-23
- Forecast methodology
Market Size and Forecast – Long-haul
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- Long-haul market set to stutter
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- Figure 14: Forecast volume and value* of long-haul holidays taken by UK residents, 2013-23
- Cautious outlook for long-haul market
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- Figure 15: Forecast volume of long-haul holidays taken by UK residents (number of trips), 2013-23
- Figure 16: Forecast value of long-haul holidays taken by UK residents*, 2013-23
- Forecast methodology
Market Segmentation
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- Vast majority of short-haul trips taken by air
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- Figure 17: Short-haul holiday trips taken, by transport type, 2012-17
- Fly-and-cruise packages can suit those who want flexibility
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- Figure 18: Long-haul holiday trips taken, by transport type, 2012-17
- Spain reigns supreme in short-haul market
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- Figure 19: Top 10 short-haul destinations, by volume of trips, 2016 and 2017
- US suffers decline in wake of currency crash
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- Figure 20: Top 10 long-haul destinations, by volume of trips, 2016 and 2017
Market Drivers
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- Playing the exchange rates
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- Figure 21: Spot exchange rate, Pound Sterling vs euro and US Dollar, June 2016-June 2018
- Heatwave may cool interest in summer holidays abroad
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- Figure 22: Holiday booking trends, January 2015-August 2018
- Short break market reaches record high
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- Figure 23: Future plans for holidays, 2015-17
- Independently booked holidays receive added protection
Companies and Brands – What You Need to Know
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- Increasing number of low-budget options
- Airports and airlines innovate to offer more seamless travelling
- Through the voice and eyes of locals
Launch Activity and Innovation
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- Increasing number of low-budget options
- Low-cost long-haul flights
- Low-cost train travel
- Airports and airlines innovate to offer more seamless travelling
- Dubai Airport’s smart tunnel
- Emirates Airlines’ Home Check-in
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- Figure 24: Emirates Airlines’ Home Check-in service
- Entertainment at airports in Dubai, Barbados and Singapore
- Easing the search and booking process
- Instagram’s action button
- KLM’s voice search service
- Through the voice and eyes of locals
- Brand USA’s Ask A Local Initiative
- Atout France’s Instagram campaign
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- Figure 25: Atout France’s Instagram campaign
- Screen tourism as a driver for international tourism
- Tourism Australia’s Dundee campaign
- Tourism Ireland’s Star Wars campaign
The Consumer – What You Need to Know
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- Staycations are more popular than holidays to Europe
- Climate and culture are consumers’ top priorities
- Word of mouth is the best form of advertising
- Nearly a third of travellers have been on guided tours
- A fifth of long-haul travellers flew with a budget airline
- One in four people have an overseas holiday booked
- One in four people are likely to visit the US in the next five years
Destinations Visited
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- Staycations are more popular than holidays to Europe
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- Figure 26: Holiday destinations visited in the last two years, July 2018
- Weaker Pound makes Europe less viable
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- Figure 27: Holiday destinations visited in the last two years, by financial situation, July 2018
- One in four have gone long-haul
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- Figure 28: Frequency of long-haul holidays, July 2018
Reasons for Choosing Destination
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- Operators can encourage consumers to slow it all down
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- Figure 29: Reasons for choosing most recent holiday destination, July 2018
- The rise of DNA tourism
- Social media can trigger food envy
Holiday Influencers
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- Word of mouth is the best form of advertising
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- Figure 30: Holiday influencers, July 2018
- Millennials are more likely to seek opinion and inspiration
Preferred Holiday Types
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- Nearly half of short-haul holidaymakers want to soak up the sun…
- ...but activities and experiences are also in demand
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- Figure 31: Short-haul vs long-haul holiday preferences, July 2018
- Fly, flop and shop
Guided Tours
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- Nearly a third of travellers have been on guided tours
- Tours shouldn’t be limited to traditional landmarks
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- Figure 32: Participation in guided tours, July 2018
Long-haul Flights
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- A fifth of long-haul travellers flew with a budget airline
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- Figure 33: Type of flight/transport taken on long-haul holidays, July 2018
- Full-service airlines respond
Plans for the Next Year
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- One in four people have an overseas holiday booked
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- Figure 34: Holiday plans for the next 12 months, July 2018
- Financial disparity clearly impacting bookings
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- Figure 35: Holiday plans for the next 12 months, by financial situation, July 2018
Intentions to Visit Long-haul Destinations
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- One in four people are likely to visit the US in the next five years
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- Figure 36: Intentions to visit long-haul destinations in the next five years, July 2018
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
Appendix – Market Size and Forecast
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- Volume forecast for short-haul holidays
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- Figure 37: Forecast volume of short-haul holidays taken by UK residents, 2018-23
- Value forecast for short-haul holidays
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- Figure 38: Forecast value* of short-haul holidays taken by UK residents, 2018-23
- Volume forecast for long-haul holidays
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- Figure 39: Forecast volume of long-haul holidays taken by UK residents, 2018-23
- Value forecast for long-haul holidays
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- Figure 40: Forecast value* of long-haul holidays taken by UK residents, 2018-23
- Forecast methodology
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