Package vs Independent Holidays - UK - April 2019
Overview
 
What you need to know
Mintel expects the number of overseas package holidays to grow at a faster pace than independently-booked holidays in 2019. Package holidays are more likely to be considered amid Brexit uncertainties because of the financial protection offered. Growth will also be driven by the good performance of low-cost destinations such as Turkey, Tunisia, Egypt and Mexico, which welcome a relatively high share of package holidays.

However, the tide will turn from 2020 onwards as the independent segment will benefit from the rising demand for short breaks and the growing need for flexibility and customisation of holidays.

Competition is becoming fiercer in the package holiday segment. Jet2holidays continuous to gain ground at a fast pace and easyJet is now one of the ten largest ATOL package operators by volume. Both brands have ambitions to grow share further in the years to come.

Products covered in this Report
This Report examines the habits and attitudes of British adults towards package and independent holidays. A holiday must constitute at least one overnight stay. The business travel market is not reviewed in this Report.

Market size and forecasts refer specifically to the overseas holiday market. Mintel’s consumer research also includes data on the domestic holiday market but the main focus of this Report is holidays abroad.

For the purposes of this Report, Mintel asked a number of questions to UK adults about the ‘main holiday’ they had taken in the last 12 months. This was defined as the holiday on which they had spent the most in terms of travel and accommodation. Mintel has categorised the following types of holidays:

Pure package: travel and accommodation booked together at the same time with only one total price shown (ie no breakdown costs shown).

Dynamic package: travel and accommodation booked together but separate prices shown for each, or travel and accommodation booked separately but from the same retailer and within 24 hours.

Any package holiday: a package holiday is considered to be a holiday in which a return fare and accommodation are purchased from one provider for a single price. Other elements, such as meals or excursions, are not essential to the definition of an inclusive tour. This definition is in conjunction with the International Passenger Survey (IPS).

Independent holiday: the traveller organises and books transport and accommodation from separate sources, or books with the same retailer but more than 24 hours apart.

Linked travel arrangements: An example of a linked travel arrangement is when someone purchases a flight on an airline’s website and subsequently clicks on a link that redirects them to a separate accommodation site. If the customer books accommodation either immediately or within 24 hours, without their details being transferred, then this is classed as a linked travel arrangement. Since 1 July 2018 these arrangements have offered financial protection, although at a lower level than package holidays.

Mintel’s consumer research does not establish whether or not services purchased via separate sources were classed as linked travel arrangements. Therefore these bookings are defined as independent holidays for the purposes of this research.

For standard travel and tourism definitions, see Appendix – Data Sources, Abbreviations and Supporting Information.