Table of Contents
Executive Summary
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- The market
- Volume of domestic holidays expected to remain flat in 2019
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- Figure 1: Forecast volume of domestic holidays* taken by British residents (number of trips), 2013-23
- Volume of overseas holidays expected to decline slightly in 2019
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- Figure 2: Forecast volume of overseas holidays taken by UK residents (number of trips), 2013-23
- Voice recognition to become part of the holiday booking process
- Companies and brands
- Online travel agents On the Beach and We Love Holidays are now in top five ATOL holders
- Roughly a quarter of consumers used TripAdvisor and Booking.com recently
- CultureTrip helps travellers to find the ideal destination by focussing on experiences
- Trivago acquires start-up TripHappy to show details on neighbourhoods
- Carrier re-opens its luxury travel boutique reflecting a new in-shop experience
- icelolly.com embraces travel agents on its aggregator platform
- Case study: start-up Xarista enters the market to deliver personalised website experiences
- The consumer
- Many travellers start researching their trip one to four months before booking
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- Figure 3: Time between the start of the search and booking main holiday, package vs independent, February 2019
- Package holidays are booked longer in advance
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- Figure 4: Time between booking and departing for main holiday, package vs independent, February 2019
- Short breaks are booked more on impulse
- Online bookings on a laptop/desktop computer still dominate the market
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- Figure 5: How main holiday was booked, February 2019
- Younger generation keen on using smartphones when booking their main holiday
- Price, ease of booking, and previous experience key in holiday planning and booking process
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- Figure 6: Main reasons for choosing travel company, package vs independent, February 2019
- 61% of holidaymakers had not booked their main holiday in 2019
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- Figure 7: Attitudes towards planning and booking holidays, February 2019
- What we think
Issues and Insights
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- Voice search: travel brands should get ready to interact with travellers in a new way
- The facts
- The implications
- Ease of booking a top priority
- The facts
- The implications
The Market – What You Need to Know
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- Volume of domestic holidays expected to remain flat in 2019
- Volume of overseas holidays expected to decline slightly in 2019
- Increased marketing activity expected due to Brexit delay
- Increased ownership of voice-controlled speakers
Market Size and Forecast – Domestic Holidays
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- Volume of domestic holidays decreased in 2018
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- Figure 8: Forecast volume and value* of domestic holidays taken by British residents, 2013-23
- Volume of domestic holidays expected to remain flat in 2019
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- Figure 9: Forecast volume of domestic holidays* taken by British residents (number of trips), 2013-23
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- Figure 10: Forecast value of domestic holidays* taken by British residents, 2013-23
- Forecast methodology
Market Size and Forecast – Overseas Holidays
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- Volume of overseas holidays expected to decline slightly in 2019
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- Figure 11: Forecast volume and value* of overseas holidays taken by UK residents, 2013-23
- Popularity of lower-cost destinations puts spending under pressure
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- Figure 12: Forecast volume of overseas holidays taken by UK residents (number of trips), 2013-23
- Figure 13: Forecast value of overseas holidays taken by UK residents, 2013-23
- Forecast methodology
Market Drivers
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- Increased marketing activity expected due to Brexit delay
- Demand for holidays is still there, but consumers are cautious
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- Figure 14: Changes in spending habits in the last 12 months, January 2019
- Long-haul lower-cost destinations remain appealing
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- Figure 15: Pound versus euro and US Dollar, 20 May 2016-8 April 2019
- Travel agents feel the decline of the high street
- Increased ownership of voice-controlled speakers
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- Figure 16: Ownership of technology products, December 2017 and January 2019
Companies and Brands – What You Need to Know
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- Online travel agents On the Beach and We Love Holidays are now in top five ATOL holders
- CultureTrip helps travellers to find the ideal destination by focussing on experiences
- Trivago acquires start-up TripHappy to show details on neighbourhoods
- Carrier re-opens its luxury travel boutique reflecting a new in-shop experience
- icelolly.com embraces travel agents on its aggregator platform
- Case study: start-up Xarista enters the market to deliver personalised website experiences
Market Share
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- Online travel agents On the Beach and We Love Holidays are now in top five ATOL holders
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- Figure 17: Passengers licensed under ATOL protection, by top 10 ATOL holders, 2015-19*
- Roughly a quarter of consumers used TripAdvisor and Booking.com recently
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- Figure 18: Usage of selected brands, April 2019
Launch Activity and Innovation
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- Flexibility to help travellers find the best deals
- KAYAK mixes and matches flights and hotels to find the cheapest deals
- Expedia gives the option to add a hotel for a discounted price at a later stage
- Travel brands are easing up the search and booking process
- CultureTrip helps travellers to find the ideal destination by focussing on experiences
- Booking.com enables small and medium-sized properties to generate direct bookings
- Search criteria and search results are getting richer
- KAYAK partners with Quicket.io to show in-flight services
- Trivago acquires start-up TripHappy to show details on neighbourhoods
- Travel agents are strengthening their position in the holiday search and booking process
- Carrier re-opens its luxury travel boutique reflecting a new in-shop experience
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- Figure 19: Carrier’s luxury travel boutique in Alderley Edge, Cheshire
- icelolly.com embraces travel agents on its aggregator platform
- New technologies to enrich online service
- Travellers can book with Expedia by using their voice
- Scanning feature allows travellers to check luggage size via easyJet’s app
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- Figure 20: easyJet’s scanning feature to check luggage sizes
Brand Research
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- Brand map
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- Figure 21: Attitudes towards and usage of selected brands, April 2019
- Key brand metrics
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- Figure 22: Key metrics for selected brands, April 2019
- Brand attitudes: TripAdvisor seen as an innovative brand
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- Figure 23: Attitudes, by brand, April 2019
- Brand personality: Virgin Holidays is more likely to be considered exclusive
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- Figure 24: Brand personality – Macro image, April 2019
- Jet2holidays most closely associated with basic
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- Figure 25: Brand personality – Micro image, April 2019
- Brand analysis
- High usage TripAdvisor among wealthy consumers
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- Figure 26: User profile of TripAdvisor, April 2019
- Booking.com offers good value
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- Figure 27: User profile of Booking.com, April 2019
- A relatively large share of over-55s choose TUI
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- Figure 28: User profile of TUI, April 2019
- Many travellers had an excellent experience with Jet2holidays
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- Figure 29: User profile of Jet2holidays, April 2019
- Virgin Holidays; stylish and special
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- Figure 30: User profile of Virgin Holidays, April 2019
- Thomas Cook still challenged to increase experience rates and recommendation levels
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- Figure 31: User profile of Thomas Cook, April 2019
Start-ups and Disruptors Case Study – Xarista
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- Company overview
- What is it?
- Founded
- Founders Story
- Mintel analyst view
- Mintel Trends
- Why it could succeed
- Why it could fail
- The verdict
- Product information
- The brand’s view
- Milestones
- Target audience
- Looking to the future
The Consumer – What You Need to Know
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- Many travellers start researching their trip one to four months before booking
- Short breaks are booked more on impulse
- Package holidays are booked longer in advance
- Online bookings on a laptop/desktop computer still dominate the market
- Price, ease of booking, and previous experience key in holiday planning and booking process
- Loyal holidaymakers are more likely to have booked their main holiday
Look to Book Times
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- Many travellers start researching their trip one to four months before booking
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- Figure 32: Time between the start of the search and booking main holiday, package vs independent, February 2019
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- Figure 33: Images/videos posted by Airbnb between 17-24 March 2019
- Beach resort holidays among the holiday types with the longest booking lead times
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- Figure 34: Time between the start of the search and booking main holiday, by types of holiday, February 2019
- Rise in short breaks will lead to more impulsive behaviour
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- Figure 35: Time between the start of the transport search and booking main holiday, by duration, February 2019
- Figure 36: Time between the start of the accommodation search and booking main holiday, by duration, February 2019
Book to Departure Times
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- Package holidays are booked longer in advance
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- Figure 37: Time between booking and departing for main holiday, package vs independent, February 2019
- City breaks are booked close to departure
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- Figure 38: Time between booking and departing for main holiday, by types of holiday, February 2019
- Last-minute deal hunting popular among Millennials
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- Figure 39: Time between booking transport and departing for main holiday, by duration, February 2019
- Figure 40: Time between booking accommodation and departing for main holiday, by duration, February 2019
Holiday Booking Channels
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- Online bookings on a laptop/desktop computer still dominate the market
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- Figure 41: How main holiday was booked, February 2019
- Younger generation keen on using smartphones when booking their main holiday
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- Figure 42: How main holiday was booked, by age, February 2019
- Group holiday/escorted tours and sea/river cruises most likely to be booked in person
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- Figure 43: How main holiday was booked, by types of holiday, February 2019
- Almost a fifth booked their package holiday in-store
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- Figure 44: How main holiday was booked, package vs independent, February 2019
Booking Decision Influencers
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- Price, ease of booking, and previous experience key in holiday planning and booking process
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- Figure 45: Main reasons for choosing travel company, package vs independent, February 2019
- Price first priority for travellers who book transport independently
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- Figure 46: Main reasons for choosing travel company for transport, February 2019
- Brand less important to travellers who book accommodation independently
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- Figure 47: Main reasons for choosing travel company for accommodation, February 2019
- Package holiday bookings are less price-driven compared to the independent segment
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- Figure 48: Main reasons for choosing travel company for package holiday, February 2019
- Environmental policy more important to the younger generation when booking holidays
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- Figure 49: Main reasons for choosing travel company, by age, February 2019
Attitudes towards Holiday Planning and Booking
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- 61% of holidaymakers had not booked their main holiday in 2019
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- Figure 50: Attitudes towards planning and booking holidays, February 2019
- Families living in urban areas more likely to be cautious about booking holidays
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- Figure 51: Uncertainties caused by Brexit – CHAID analysis, February 2019
- Loyal holidaymakers are more likely to have booked their main holiday
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- Figure 52: Attitudes towards planning and booking holidays, by level of loyalty, February 2019
Appendix – Data Sources, Abbreviations, and Supporting Information
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- Definitions
- Abbreviations
- Consumer research methodology
- CHAID methodology
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- Figure 53: Holiday Planning and Booking Process – CHAID – Table output, February 2019
Appendix – Market Size and Forecast
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- Volume forecast for total holidays
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- Figure 54: Forecast volume of total holidays (domestic* and overseas) taken by UK residents, 2018-23
- Value forecast for total holidays
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- Figure 55: Forecast value* of total holidays (domestic** and overseas) taken by UK residents, 2018-23
- Volume forecast for domestic holidays
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- Figure 56: Forecast volume of domestic holidays* taken by British residents, 2018-23
- Value forecast for domestic holidays
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- Figure 57: Forecast value of domestic holidays* taken by British residents, 2018-23
- Volume forecast for overseas holidays
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- Figure 58: Forecast volume of overseas holidays taken by UK residents, 2018-23
- Value forecast for overseas holidays
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- Figure 59: Forecast value* of overseas holidays taken by UK residents, 2018-23
- Forecast methodology
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