The Over-55 Traveller - UK - October 2019

OVERVIEW
What you need to know
Covered in this Report
EXECUTIVE SUMMARY
The market
Over-55s account for 35% of all holiday spending
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
Figure 3: Future priorities of over-55s, August 2019
Seaside holidays and city breaks are most popular but cruises have highest growth potential
Figure 4: Future interest in types of holiday versus types of holiday taken in the past three years, August 2019
Storehouse of travel knowledge
Figure 5: Sources of ideas for holidays used by over-55s, August 2019
Online is now biggest booking channel even amongst over-75s
Figure 6: Holiday booking channels used by over-55s, August 2019
R&R, sightseeing and high standard of accommodation are most important factors
Figure 7: Important holiday factors for over-55s, August 2019
One in seven over-55s regularly take their grandchildren on holiday
Figure 8: Holiday behaviours and preferences for over-55s, August 2019
Carpe diem
Figure 9: Holiday intentions and interests of over-55s, August 2019
What we think
ISSUES AND INSIGHTS
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
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
Over-55 holiday market worth £16 billion (excluding overseas transport)
Figure 10: Total holidays taken by over-55s, by volume and value, 2014-24
Over-55 domestic breaks have grown for past five years
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
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
Figure 14: Total over-55 holiday volume forecast, 2014-24
Figure 15: Total over-55 holiday value* forecast, 2014-24
Domestic market
Figure 16: Domestic over-55 holiday volume forecast, 2014-24
Figure 17: Domestic over-55 holiday value* forecast, 2014-24
Overseas market
Figure 18: Overseas over-55 holiday volume forecast, 2014-24
Figure 19: Overseas over-55 holiday value* forecast, 2014-24
Forecast methodology
MARKET SEGMENTATION
Over-55s taking more UK breaks but spending less…
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
Figure 21: Overseas holidays taken by 55-64 and 65+ age groups, by volume and value, 2014-18
Figure 22: Average spend on domestic and overseas holidays by age group, 2018
South West is top UK holiday choice for over-55s
Figure 23: Domestic holiday destinations by volume visited by over-55s versus all holidaymakers, 2018
Over-65s stay longer
Figure 24: Domestic holiday volumes taken by over-55s versus all holidaymakers, by duration, 2018
Over-55s more likely than average to visit Spain
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
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
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
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
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
Figure 31: Overseas holiday volumes taken by over-55s versus all holidaymakers, by season of travel, 2018
MARKET BACKGROUND
UK economy still in growth but shoppers growing more cautious
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
Figure 33: Pound versus euro exchange rate, June 2016-September 2019
Domestic tourism volumes up 3% in first half of 2019 but spending drops
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
Figure 35: Trends in the number and value of overseas holidays taken by UK residents, 2014-18
An ageing population offers huge travel opportunities
Figure 36: Trends in the age structure of the UK population, by gender, 2013-23
Figure 37: Long-term projections in the age structure of the UK population, by gender, 2016-41
Silver solos
Figure 38: One-person households, by age, UK, 2007-17
Travel is a high priority for over-55s
Figure 39: Future priorities of over-55s, August 2019
Generational wealth gap has widened
Figure 40: Percentage household total wealth* by age group, July 2006 to June 2008
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
Figure 42: Internet use in the last three months, 2014-18
COMPANIES AND BRANDS – WHAT YOU NEED TO KNOW
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
Saga Holidays
Escorted touring
Cruise
Mature solos
Silver Travel Advisor
Warner Leisure Hotels
Accessible travel
THE CONSUMER – WHAT YOU NEED TO KNOW
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
Over three quarters of over-55s take holidays
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
Figure 44: Types of holiday taken in the past three years by over-55 age segments, August 2019
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
Figure 46: Types of holiday taken in the past three years by marital status, August 2019
Cruise shows highest future growth prospects
Figure 47: Future interest in types of holiday versus types of holiday taken in the past three years, August 2019
OVER-55 HOLIDAY INSPIRATION
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
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
Figure 49: Sources of ideas for holidays used by over-55 age segments, August 2019
OVER-55 HOLIDAY BOOKING
Online is now the dominant booking channel for over-55s
Figure 50: Holiday booking channels used by over-55s, August 2019
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
R&R-plus and flashpackers
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
Figure 53: Important holiday factors by over-55 age segments, August 2019
Simple pleasures grow in importance
Figure 54: Most important holiday factors, by age group, June 2015
OVER-55 HOLIDAY BEHAVIOURS
Generational mix
Travelling back in time
Figure 55: Holiday behaviours and preferences for over-55s, August 2019
Everything taken care of
Aviation avoiders
OVER-55 HOLIDAY OPPORTUNITIES
Seize the day
Once in a lifetime holiday planners
Tailor-made opportunity
Winter escapees
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
Definitions
Abbreviations
Consumer research methodology
APPENDIX – MARKET SIZE AND FORECAST
Domestic
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
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