Table of Contents
Executive Summary
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- The market
- Over-55s account for 35% of all holiday spending
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- Figure 1: Total over-55 holiday volume forecast, 2014-24
- Figure 2: Total over-55 holiday value* forecast, 2014-24
- Companies and brands
- Change of focus for Saga
- Escorted touring brands attracting investment
- Half of cruise customers are over 60
- Solo traveller specialists
- Silver Travel Advisor has identified a gap in the market
- The consumer
- Travel is one of the highest priorities for over-55s
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- Figure 3: Future priorities of over-55s, August 2019
- Seaside holidays and city breaks are most popular but cruises have highest growth potential
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- Figure 4: Future interest in types of holiday versus types of holiday taken in the past three years, August 2019
- Storehouse of travel knowledge
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- Figure 5: Sources of ideas for holidays used by over-55s, August 2019
- Online is now biggest booking channel even amongst over-75s
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- Figure 6: Holiday booking channels used by over-55s, August 2019
- R&R, sightseeing and high standard of accommodation are most important factors
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- Figure 7: Important holiday factors for over-55s, August 2019
- One in seven over-55s regularly take their grandchildren on holiday
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- Figure 8: Holiday behaviours and preferences for over-55s, August 2019
- Carpe diem
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- Figure 9: Holiday intentions and interests of over-55s, August 2019
- What we think
Issues and Insights
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- Pre-retirement is a key time for travel planning
- The facts
- The implications
- Holidays will increasingly be used to combat social isolation
- The facts
- The implications
- Specialist over-55 travel shops
- The facts
- The implications
- Longevity breaks
- The facts
- The implications
- Retro holidays
- The facts
- The implications
The Market – What You Need to Know
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- Over-55 domestic breaks have risen for five years in a row
- Over-55 spend on trips abroad has increased at twice the market average since 2014
- Package preference rises amongst over-65s
- 35% of over-55 travellers abroad visit Spain
- Demographic pool is growing fast
- High priority given to travel
- One in five over-65s have £1 million+ total wealth
Market Size and Forecast
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- Over-55 holiday market worth £16 billion (excluding overseas transport)
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- Figure 10: Total holidays taken by over-55s, by volume and value, 2014-24
- Over-55 domestic breaks have grown for past five years
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- Figure 11: Domestic holidays taken by over-55s, by volume and value, 2014-24
- Average overseas spend increase by over-55s double the average since 2014
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- Figure 12: Overseas holidays taken by over-55s, by volume and value, 2014-24
- Figure 13: Holidays taken by over-55s as a percentage of all domestic and overseas holidays, by volume and value, 2014-18
- Forecast
- Total market
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- Figure 14: Total over-55 holiday volume forecast, 2014-24
- Figure 15: Total over-55 holiday value* forecast, 2014-24
- Domestic market
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- Figure 16: Domestic over-55 holiday volume forecast, 2014-24
- Figure 17: Domestic over-55 holiday value* forecast, 2014-24
- Overseas market
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- Figure 18: Overseas over-55 holiday volume forecast, 2014-24
- Figure 19: Overseas over-55 holiday value* forecast, 2014-24
- Forecast methodology
Market Segmentation
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- Over-55s taking more UK breaks but spending less…
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- Figure 20: Domestic holidays taken by 55-64 and 65+ age groups, by volume and value, 2014-18
- …but over-55 spending abroad has increased
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- Figure 21: Overseas holidays taken by 55-64 and 65+ age groups, by volume and value, 2014-18
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- Figure 22: Average spend on domestic and overseas holidays by age group, 2018
- South West is top UK holiday choice for over-55s
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- Figure 23: Domestic holiday destinations by volume visited by over-55s versus all holidaymakers, 2018
- Over-65s stay longer
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- Figure 24: Domestic holiday volumes taken by over-55s versus all holidaymakers, by duration, 2018
- Over-55s more likely than average to visit Spain
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- Figure 25: Overseas holiday volumes taken by over-55s versus all holidaymakers, by short-haul and long-haul destinations, 2018
- Figure 26: Top 10 overseas short-haul holiday destinations by volume visited by over-55s versus all holidaymakers, 2018
- Long-haul escorted touring trend
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- Figure 27: Top 10 overseas long-haul holiday destinations by volume visited by over-55s versus all holidaymakers, 2018
- Package booking is higher amongst over-55s
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- Figure 28: Overseas holiday volumes taken by over-55s versus all holidaymakers, by package versus independently booked, 2018
- Almost half of over-55 holidays abroad are longer than a week
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- Figure 29: Overseas holiday volumes taken by over-55s versus all holidaymakers, by duration, 2018
- One in five over-65s going abroad choose not to fly
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- Figure 30: Overseas holiday volumes taken by over-55s versus all holidaymakers, by mode of travel, 2018
- April-June is the most popular period for over-55 holidays abroad
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- Figure 31: Overseas holiday volumes taken by over-55s versus all holidaymakers, by season of travel, 2018
Market Background
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- UK economy still in growth but shoppers growing more cautious
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- Figure 32: UK average weekly earnings (excluding bonuses)* vs CPI inflation, percentage change year on year, January 2017-August 2019
- Pound hits new wave of volatility as Brexit deadline approaches
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- Figure 33: Pound versus euro exchange rate, June 2016-September 2019
- Domestic tourism volumes up 3% in first half of 2019 but spending drops
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- Figure 34: Trends in the number and value of domestic holidays taken by UK residents, 2014-18
- 2019 likely to see overseas holidays dip after record year in 2018
- Cook’s collapse sends shock waves across travel industry
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- Figure 35: Trends in the number and value of overseas holidays taken by UK residents, 2014-18
- An ageing population offers huge travel opportunities
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- Figure 36: Trends in the age structure of the UK population, by gender, 2013-23
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- Figure 37: Long-term projections in the age structure of the UK population, by gender, 2016-41
- Silver solos
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- Figure 38: One-person households, by age, UK, 2007-17
- Travel is a high priority for over-55s
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- Figure 39: Future priorities of over-55s, August 2019
- Generational wealth gap has widened
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- Figure 40: Percentage household total wealth* by age group, July 2006 to June 2008
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- Figure 41: Percentage household total wealth* by age group, July 2014 to June 2016
- A time-limited opportunity
- Not everyone in over-55 group is well off
- 72% of 55-64s and 51% of 65-74s are on social media
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- Figure 42: Internet use in the last three months, 2014-18
Companies and Brands – What You Need to Know
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- New Saga strategy
- Escorted tours growing in diversity
- Three quarters of cruise passengers are over 50
- Single traveller specialists
- Silver information
- Warner targets active over-50s
- Disability holidays
Companies and Brands
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- Saga Holidays
- Escorted touring
- Cruise
- Mature solos
- Silver Travel Advisor
- Warner Leisure Hotels
- Accessible travel
The Consumer – What You Need to Know
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- Seaside, city breaks, cottages and touring holidays are the most popular trips
- Personal recommendation is the leading source of holiday ideas
- Six in 10 over-55s book online
- Over-55s seek R&R but are less fly-and-flop than younger groups
- Exploration plus comfort
- Multigenerational trips
- See the world
Over-55 Holiday Taking & Future Interest
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- Over three quarters of over-55s take holidays
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- Figure 43: Types of holiday taken in the past three years by over-55s, August 2019
- Healthy holidays
- Cottages, country hotels and cruises have broadest age appeal to older travellers
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- Figure 44: Types of holiday taken in the past three years by over-55 age segments, August 2019
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- Figure 45: Types of holiday taken in the past three years by life stage segments, August 2019
- Older singles are twice as likely not to take holidays as couples
- Escorted tours and river cruises lead the way in attracting solos but sea cruises are falling behind
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- Figure 46: Types of holiday taken in the past three years by marital status, August 2019
- Cruise shows highest future growth prospects
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- Figure 47: Future interest in types of holiday versus types of holiday taken in the past three years, August 2019
Over-55 Holiday Inspiration
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- Peer knowledge is the greatest source of travel ideas for over-55s
- Travel shops are under-used as an information resource
- Half of over-55s use online sources for ideas
- Still a place for brochures
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- Figure 48: Sources of ideas for holidays used by over-55s, August 2019
- Few over-55s cite social media as an inspiration for travel ideas
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- Figure 49: Sources of ideas for holidays used by over-55 age segments, August 2019
Over-55 Holiday Booking
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- Online is now the dominant booking channel for over-55s
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- Figure 50: Holiday booking channels used by over-55s, August 2019
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- Figure 51: Holiday booking channels used by over-55 age segments, August 2019
- Package versus independent booking
- Importance of expertise
- Previous experience is the key factor when booking
Over-55 Important Holiday Factors
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- R&R-plus and flashpackers
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- Figure 52: Important holiday factors for over-55s, August 2019
- Cultural discovery and wellness are important for 55-64s
- Meeting new people important for over-75s and singles
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- Figure 53: Important holiday factors by over-55 age segments, August 2019
- Simple pleasures grow in importance
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- Figure 54: Most important holiday factors, by age group, June 2015
Over-55 Holiday Behaviours
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- Generational mix
- Travelling back in time
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- Figure 55: Holiday behaviours and preferences for over-55s, August 2019
- Everything taken care of
- Aviation avoiders
Over-55 Holiday Opportunities
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- Seize the day
- Once in a lifetime holiday planners
- Tailor-made opportunity
- Winter escapees
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- Figure 56: Holiday intentions and interests of over-55s, August 2019
- Specialist over-50s brand potential
- Singles interest
- Putting something back
Appendix – Data Sources, Abbreviations and Supporting Information
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- Definitions
- Abbreviations
- Consumer research methodology
Appendix – Market Size and Forecast
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- Domestic
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- Figure 57: Domestic holidays taken by over-55s, volume forecast, 2019-24
- Figure 58: Domestic holidays taken by over-55s, value* forecast, 2019-24
- Overseas
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- Figure 59: Overseas holidays taken by over-55s, volume forecast, 2019-24
- Figure 60: Overseas holidays taken by over-55s, value* forecast, 2019-24
- Forecast methodology
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