Holiday Property - UK - January 2011

ISSUES IN THE MARKET
Key issues
Definition
Abbreviations
FUTURE OPPORTUNITIES
The realest of holidays
Virtues of transience
MARKET IN BRIEF
Consumer interest revived by bargain hunting...
...but caution is the watchword
Tried and trusted
Keep it in the family
Local flavour
Window of opportunity
Selling a lifestyle
INTERNAL MARKET ENVIRONMENT – PROPERTY
Key points
Downward price pressure continues
Figure 1: Composition of UK household sector’s net worth, 2000-09
Figure 2: Average house prices in the UK, by region, 2005-10
Return to cash/savings?
Figure 3: Method of funding of holiday home purchase, by length of ownership, November 2009
Under pressure
Green shoots of recovery...
Figure 4: International property price movements, Q3 2009 and Q3 2010
...but bottom not yet reached in key markets
Holiday lettings tax changes
INTERNAL MARKET ENVIRONMENT – HOLIDAYS
Key points
High priority but challenging conditions remain
Figure 5: Expenditure priorities, 2005-10
Figure 6: Overseas holidays, expenditure and average cost, 2005-10
End of the staycation?
Figure 7: Domestic holidays and expenditure, 2005-10
Frequent travellers
Figure 8: Percentage of adults booking UK and overseas holidays, 2010
Spain still accounts for quarter of holidays abroad
Figure 9: Outbound holiday visits, by country visited, 2005-09
LCCs still growing through downturn
Figure 10: Scheduled passengers carried, by main low-cost airlines, 2005-10
Network expansions continue
Aviation alternatives for property owners
BROADER MARKET ENVIRONMENT
Key points
Consumer spend to remain subdued
Figure 11: GDP, PDI, consumer expenditure and savings, at current prices, 2005-15
Rate rises expected
Squeezed middle
Figure 12: UK consumer confidence index, January-December 2010
AB growth is a plus for property abroad
Figure 13: Forecast adult population trends, by socio-economic group, 2005-15
A family affair
Figure 14: Forecast adult population trends, by lifestage, 2005-15
Retirement dreamers
Figure 15: Influencing factors in initial holiday home purchase, by length of ownership, November 2009
Pound recovers partially
Figure 16: Annual average exchange rates for Sterling, 2005-10
COMPETITIVE CONTEXT
Key points
One in 14 holiday in their own property
Figure 17: Type of accommodation used on all holidays/short breaks taken in the last 12 months, 2010
Six in ten second homes are overseas
Figure 18: Households in England with a second home – domestic and abroad, 1998/99-2007/08
STRENGTHS AND WEAKNESSES IN THE MARKET
Strengths
Consumer interest returning
Positive associations
AB growth forecast
Love affair with Spain and France
Budget airline resilience
Weaknesses
Macroeconomic risks
Key drivers of expansion have ended
End of the dream for many?
Rip-off/legal fears widespread
Timeshare distrusted/ fractional yet to break through
Key points
Property apps
Promoting hot property
Selling rental potential
Selling a ready-made social life
Holiday home exchange
MARKET SIZE
Key points
Decade of property mania comes to an end...
Figure 19: Households in England with a second home abroad, 1997/98-2007/08
Figure 20: Number of second homes abroad owned by households in England, 2008/09-2009/10
...but consumer interest reviving
SEGMENT PERFORMANCE
Key points
France and Spain account for half of homes
Figure 21: Number of second homes abroad owned by households in England, by destination, 2008/09
Top five destinations take over
Figure 22: Search activity on Primelocation International site split, by location, November 2007-October 2010
Interest in Spain more resilient than France
Figure 23: Percentage change in search activity on Rightmove Overseas site, by location, July 2008-July 2010
 CHARACTERISTICS OF THE LEADING MARKETS
Spain
France
Portugal
Italy
US
COMPANIES AND PRODUCTS
British Homes Group
Fractional Life
GK Italian Property
Holidaylettings.co.uk
Homesoverseas.co.uk
Interval International
Primelocation International
Property-abroad.com
RCI
Rightmove.co.uk (Overseas)
PROPERTY OWNERSHIP AND ASPIRATIONS
Key points
Figure 24: Holiday property abroad ownership and aspirations, November 2010
A third of consumers show interest
The fractional moment?
Dreams of escape
Networked nomads
WHAT PEOPLE THINK ABOUT PROPERTY ABROAD
Key points
Figure 25: Attitudes towards holiday properties abroad, November 2010
Figure 26: Attitudes towards holiday properties abroad – users v potentials, November 2010
 NEGATIVE ATTITUDES
Consumers get nervous
Maintenance hassles
Promoting holiday variety
Timeshare mistrust
 POSITIVE ATTITUDES
Family and friends
Deep holidays
Money matters
Window shoppers
DREAM HOLIDAY HOME DESTINATIONS
Key points
Figure 27: Preferred holiday home destinations, November 2010
Spain still tops but US gains on France
The most affluent prefer France to Spain
DREAM HOLIDAY HOME FACTORS
Key points
Figure 28: Important factors for choosing a holiday home, November 2010
Sun and sea
Rentability most important for US
Traditional properties most popular
Feeling like a local
City to city
A fifth seek lifestyle facilities
TARGETING OPPORTUNITIES
Key points
Target groups
Figure 29: Holiday property abroad target groups, November 2010
Serious Potentials
Demographic profile
Marketing message
Pipe Dreamers
Demographic profile
Marketing message
Lukewarm
Demographic profile
Marketing message
Out of the Question
Demographic profile
Marketing message
APPENDIX – PROPERTY OWNERSHIP AND ASPIRATIONS
Figure 30: Most popular statements on holiday property abroad ownership and aspirations, by demographics, November 2010
Figure 31: Next most popular statements on holiday property abroad ownership and aspirations, by demographics, November 2010
APPENDIX – WHAT PEOPLE THINK ABOUT PROPERTY ABROAD
Figure 32: Attitudes toward holiday properties abroad, by demographics, November 2010
Figure 33: Further attitudes toward holiday properties abroad, by demographics, November 2010
Figure 34: Other attitudes toward holiday properties abroad, by demographics, November 2010
Figure 35: Additional attitudes toward holiday properties abroad, by demographics, November 2010
Figure 36: Attitudes towards holiday properties abroad, by most popular statements on holiday property abroad ownership and aspirations, November 2010
Figure 37: Attitudes towards holiday properties abroad, by next most popular statements on holiday property abroad ownership and aspirations, November 2010
APPENDIX – DREAM HOLIDAY HOME DESTINATIONS
Figure 38: First preference holiday home destinations, by demographics, November 2010
Figure 39: Preferred holiday home destinations, by most popular statements on holiday property abroad ownership and aspirations, November 2010
Figure 40: Preferred holiday home destinations, by next most popular statements on holiday property abroad ownership and aspirations, November 2010
Figure 41: Preferred holiday home destinations, by most popular attitudes towards holiday properties abroad, November 2010
Figure 42: Preferred holiday home destinations, by next most popular attitudes towards holiday properties abroad, November 2010
Figure 43: Preferred holiday home destinations, by other attitudes towards holiday properties abroad, November 2010
APPENDIX – DREAM HOLIDAY HOME FACTORS
Figure 44: Most important factors for choosing a holiday home, by demographics, November 2010
Figure 45: Next most important factors for choosing a holiday home, by demographics, November 2010
Figure 46: Other important factors for choosing a holiday home, by demographics, November 2010
Figure 47: Important factors for choosing a holiday home, by most popular statements on holiday property abroad ownership and aspirations, November 2010
Figure 48: Important factors for choosing a holiday home, by next most popular statements on holiday property abroad ownership and aspirations, November 2010
Figure 49: Important factors for choosing a holiday home, by most popular attitudes toward holiday properties abroad, November 2010
Figure 50: Important factors for choosing a holiday home, by next most popular attitudes toward holiday properties abroad, November 2010
Figure 51: Important factors for choosing a holiday home, by other attitudes toward holiday properties abroad, November 2010
APPENDIX – TARGETING OPPORTUNITIES
Figure 52: Attitudes towards holiday properties abroad, by target groups, November 2010
Figure 53: Holiday property abroad ownership and aspirations, by target groups, November 2010
Figure 54: Preferred holiday home destinations, by target groups, November 2010
Figure 55: Important factors for choosing a holiday home, by target groups, November 2010
Figure 56: Target groups, by demographics, November 2010