Table of Contents
Executive Summary
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- The market
- Package holidays expected to grow at the expense of independent holidays in 2019
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- Figure 1: UK volume forecast of overseas package holidays, 2013-23
- The long-term outlook for the independent sector is more positive
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- Figure 2: UK volume forecast of overseas independent holidays, 2013-23
- The value of both independent and package holidays is expected to decline in 2019
- Turkey and Mexico overtake the Caribbean as most visited package holiday destinations
- Room for growth in Eastern European destinations
- Brits still unwilling to forgo holidays
- Europeans consider the UK a less appealing destination
- Companies and brands
- Jet2holidays continues to gain ground
- easyJet enters the top 10 ATOL package operators by volume
- Thomas Cook’s city break and hotel-only offering with Expedia Group
- The consumer
- Package versus independent split stable
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- Figure 3: How people booked their ‘main holiday’ in the past 12 months, February 2016-February 2019
- Even split between overseas independent and package holidays
- The cruises segment offers high growth potential
- Coastal cities could prove popular
- All-inclusive holidays are perceived as relatively expensive
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- Figure 4: All-inclusive holiday booking for packages in the past 12 months, February 2017-February 2019
- A slight majority of all-inclusive holidaymakers would be open to resorts that offer flexible price tiers
- Brexit uncertainties place financial protection in the spotlight
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- Figure 5: Reasons for booking package holidays, February 2018 and February 2019
- Package holiday providers should bring financial protection to the forefront
- Travel flexibility has become a more important reason for booking independently
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- Figure 6: Reasons for booking independent holidays, February 2018 and February 2019
- Booking independently has strong associations with flexibility
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- Figure 7: Perceptions of holiday types, February 2019
- The majority of consumers would like to see more travel companies reducing plastic waste
- Travellers need support in behaving responsibly whilst travelling
- Consumers still prefer hotels to be staffed by humans
- What we think
Issues and Insights
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- Trust is more important than ever in uncertain economic times
- The facts
- The implications
- Travellers will increasingly take environmentally responsible decisions
- The facts
- The implications
The Market – What You Need to Know
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- Package holidays expected to grow at the expense of independent holidays in 2019
- The long-term outlook for the independent sector is more positive
- The value of both independent and package holidays is expected to decline in 2019
- Turkey and Mexico overtake the Caribbean as most visited package holiday destinations
- Room for growth in Eastern European destinations
- Brits still unwilling to forgo holidays
Market Size and Forecast – Overseas Holidays
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- Package holidays volume expected to grow at the expense of independent holidays in 2019
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- Figure 8: UK volume of overseas package and independent holidays, 2013-23
- The long-term outlook for the independent sector is more positive
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- Figure 9: UK volume forecast of overseas package holidays, 2013-23
- Figure 10: UK volume forecast of overseas independent holidays, 2013-23
- The value of both independent and package holidays is expected to decline in 2019
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- Figure 11: UK value* of overseas package and independent holidays, 2013-23
- Figure 12: UK value* forecast of overseas package holidays, 2013-23
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- Figure 13: UK value* forecast of overseas independent holidays, 2013-23
- Forecast methodology
Market Segmentation
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- Turkey and Mexico overtake the Caribbean as most visited package holiday destinations
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- Figure 14: UK overseas package holiday volume, top 20 destinations, October 2015-September 2016 to October 2017-September 2018
- Room for growth in Eastern European destinations
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- Figure 15: UK overseas independent holiday volume, top 20 destinations, October 2015-September 2016 to October 2017-September 2018
- Independent holiday segment benefits from the shift to shorter breaks
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- Figure 16: UK package versus independent holiday volume by trip duration, October 2014-September 2015 to October 2017-September 2018
Market Drivers
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- Brits still unwilling to forgo holidays
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- Figure 17: Booked a holiday in the past three months and plans to book a holiday in the next three months, January 2017-January 2019
- High demand for lower-cost destinations, even though some remain volatile
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- Figure 18: Pound versus euro and US Dollar, 20 May 2016-7 March 2019
- Tourism growth puts pressure on environment
- Overseas travel could face headwinds from warm weather in the UK
- Europeans consider the UK a less appealing destination
Companies and Brands – What You Need to Know
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- Jet2holidays continues to gain ground
- easyJet enters the top 10 ATOL package operators by volume
- TUI plays with the senses in its new luxury beach clubs and signature restaurant
- Thomas Cook’s city break and hotel-only offering with Expedia Group
- Marriott International adds local expert recommendations to its activities platform
Market Share
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- Jet2holidays continues to gain ground
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- Figure 19: Passengers licensed under ATOL protection, by top 10 ATOL holders, 2015-19
- easyJet enters the top 10 ATOL package operators by volume
Launch Activity and Innovation
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- Influencing travellers’ mood
- Cuckooz helps to offer guests the ultimate sleeping experience
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- Figure 20: Womb-inspired cocoon bed offered by Cuckooz in Spitalfields, London
- TUI plays with the senses in its new luxury beach clubs and signature restaurant
- Worldwide initiatives to reduce plastic waste
- Istanbul Metro rewards passengers who recycle bottles and cans
- Iberostar Group commits to eliminating single-use plastics
- Partnerships for more choice and greater exposure
- Thomas Cook’s city break and hotel-only offering with Expedia Group
- Lidl shoppers have a chance to win a trip with Jet2holidays
- Boundaries between work and holiday fade away
- AccorHotels launches space for co-workers
- Selina, a chain for ‘digital nomads’, targets young workers
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- Figure 21: Co-working office space offered by Selina in Santa Teresa South
- Inspiring travellers by sharing local tips
- Real time KLM hologram bar connects passengers to exchange local tips
- Marriott International adds local expert recommendations to its activities platform
The Consumer – What You Need to Know
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- Even split between overseas independent and package holidays
- Coastal cities could prove popular
- Personalisation also important in group holidays/escorted tours
- All-inclusive holidays are perceived as relatively expensive
- Brexit uncertainties place financial protection in the spotlight
- Travel flexibility has become a more important reason for booking independently
- The majority of consumers would like to see more travel companies reducing plastic waste
Package vs Independent Bookings
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- Package versus independent split stable
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- Figure 22: How people booked their ‘main holiday’ in the past 12 months, February 2016-February 2019
- Even split between overseas independent and package holidays
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- Figure 23: How people booked their ‘main holiday’ in the past 12 months, UK versus overseas, February 2019
- Older consumers account for a large number of pure package bookings
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- Figure 24: How people booked their ‘main holiday’ overseas in the past 12 months, by demographics, February 2019
Holiday Types
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- The cruises segment offers high growth potential
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- Figure 25: Type of ‘main package holiday’ taken in the past 12 months, by destination, February 2019
- Coastal cities could prove popular
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- Figure 26: Type of ‘main independent holiday’ taken in the past 12 months, by destination, February 2019
- Personalisation also important in group holidays/escorted tours
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- Figure 27: How ‘main holiday’ types were booked in the past 12 months, February 2019*
All-inclusive Holiday Taking
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- All-inclusive holidays are perceived as relatively expensive
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- Figure 28: All-inclusive holiday booking for packages in the past 12 months, February 2017-February 2019
- A slight majority of all-inclusive holidaymakers would be open to resorts that offer flexible price tiers
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- Figure 29: Attitudes towards flexible price tiers in all-inclusive holiday resorts, February 2019
- Flexible price tiers in all-inclusive holiday resorts are most appealing to prosperous dual-parent families
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- Figure 30: Attitudes towards flexible price tiers in all-inclusive holiday resorts, CHAID analysis, February 2019
- Different price levels for all-inclusive holidays could put off older consumers and those in the lowest socio-economic groups
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- Figure 31: Attitudes towards flexible price tiers in all-inclusive holiday resorts, by demographics, February 2019
Reasons for Booking Package Holidays
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- Brexit uncertainties place financial protection in the spotlight
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- Figure 32: Reasons for booking package holidays, February 2018 and February 2019
- Package holiday providers should bring financial protection to the forefront
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- Figure 33: Attitudes towards financial protection of package holidays, by package and independent holidaymakers, February 2019
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- Figure 34: Homepage of onthebeach.co.uk, as of 5 March 2019
Reasons for Booking Independent Holidays
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- Travel flexibility has become a more important reason for booking independently
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- Figure 35: Reasons for booking independent holidays, February 2018 and February 2019
Perceptions of Holiday Types
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- Package holidays are perceived as easy to book
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- Figure 36: Perceptions of holiday types – Correspondence analysis, February 2019
- Booking independently has strong associations with flexibility
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- Figure 37: Perceptions of holiday types, February 2019
Attitudes towards Reducing Waste and Recycling
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- The majority of consumers would like to see more travel companies reducing plastic waste
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- Figure 38: Attitudes towards reducing waste in the travel sector, February 2019
- Travellers need support in behaving responsibly whilst travelling
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- Figure 39: Attitudes towards recycling whilst on holiday, by demographics, February 2019
Attitudes Towards Robot Hotels
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- Consumers still prefer hotels to be staffed by humans
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- Figure 40: Attitudes towards a hotel that is partly run by robots, February 2019
Appendix – Data Sources, Abbreviations and Supporting Information
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- Definitions
- Abbreviations
- Consumer research methodology
- CHAID analysis methodology
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- Figure 41: Attitudes towards flexible price tiers in all-inclusive holiday resorts, CHAID analysis, February 2019
- Correspondence analysis methodology
Appendix – Market Size and Forecast
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- Volume forecast for total holidays
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- Figure 42: Forecast volume of total overseas holidays taken by UK residents, 2018-23
- Value forecast for total holidays
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- Figure 43: Forecast value of total overseas holidays taken by UK residents, 2018-23
- Volume forecast for package holidays
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- Figure 44: Forecast volume of overseas package holidays taken by UK residents, 2018-23
- Value forecast for package holidays
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- Figure 45: Forecast value of total package holidays taken by UK residents, 2018-23
- Volume forecast for independently-booked holidays
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- Figure 46: Forecast volume of overseas independent holidays taken by UK residents, 2018-23
- Value forecast for independently-booked holidays
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- Figure 47: Forecast value of total independent holidays taken by UK residents, 2018-23
- Forecast methodology
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