Holiday Planning and Booking Process - UK - October 2011

INTRODUCTION
Definition
Abbreviations
ISSUES IN THE MARKET
How can travel companies respond to consumer preferences for booking late or early?
How can travel marketers respond to the age of austerity?
What is the role of the ‘personal’ in the online travel booking world?
Is mobile travel booking over-hyped?
Are holiday bookers no longer motivated by green/ethical concerns in difficult economic times?
EXECUTIVE SUMMARY
The market
Travel recession finally over?
Figure 1: Overseas holiday bookings, 2006-16
Average spend growth
Staycation here to stay
Figure 2: Domestic holiday bookings, 2006-16
Package share up
Figure 3: Volume of overseas package and independent holidays, 2006-10
Three growth destinations
Figure 4: Trips to selected popular holiday destinations, percentage change 2006-10
Market factors
Pre-/no family/third agers take most trips
Income drop
Figure 5: GDP quarterly percentage change, Q1 2004-Q2 2011
Resort costs down
Failure and flight-plus
Broadband still rising
Evolving web
Companies, brands and innovation
Big two pursue mixed offline/online strategy
Battle lines drawn up
OTAs get personal
Google makes its move
Online search complexity
Flash flood
Thinking outside of the box
The consumer
Destination first
Figure 6: Holiday planning activities, June 2011
Shop research falls but bookings hold up
A fifth Google around for ideas
Six in ten book whole trip online
Favourite add-ons
Figure 7: Holiday extras booking preferences, June 2011
Early bird catches four in ten worms
One in four not sure if they are protected
Figure 8: Holiday planning and booking attitudes, July 2011
Joy division
Prepared to pay
What we think
FUTURE OPPORTUNITIES
Trend: Who Needs Humans?
Trend: Sense of the Intense
INTERNAL MARKET ENVIRONMENT
Key points
Overseas-UK long holiday gap narrows
Figure 9: Number of holidays/short breaks taken in the last 12 months, 2011
ABs, pre-/no family and third agers take most overseas trips
Figure 10: Total number of trips in the last 12 months, 2011
Failure rate remains high
Figure 11: ATOL tour operator failures/closures in the UK in the year to 6 October 2011
Flight-plus changes
Only three destinations see growth
Figure 12: Top 20 holiday destinations, UK, 2006-10
Broadband penetration reaches 70%
Figure 13: Broadband penetration, by demographics, 2006-11
Mobile web use rising fast
Tablet sales expected to increase
From text to video
Google flexes its travel muscles
BROADER MARKET ENVIRONMENT
Key points
UK economy flat-lining
Figure 14: GDP quarterly percentage change, Q1 2004-Q2 2011
Confidence stays low
Figure 15: UK consumer confidence index, October 2010-September 2011
Post-65 growth
Figure 16: Trends in the age structure of the UK population, 2006-16
AB/C2 fastest growing groups
Figure 17: Forecast adult population trends, by socio-economic group, 2006-16
Resort reductions help to mitigate weak pound
Figure 18: Annual average exchange rates for Sterling, 2007-11
COMPETITIVE CONTEXT
Key points
Comfort eating and cheap days out
Figure 19: Trends in what extra money is spent on, 2010-11
Figure 20: Indexed comparison of expenditure on leisure travel, select consumer expenditure categories, eating out and pub spend, where 2006 = 100
Holidays hit more than most
Figure 21: UK consumer expenditure on leisure travel, eating out and pub spend (minus eating) – plus broad sector breakdown, 2006-10
WHO’S INNOVATING?
Key points
Growing search complexity
Crowdsourcing
Premium flash
Joined up travel planning
Virtual suitcase
Green holiday planning
MARKET SIZE AND FORECAST
Key points
Overseas trips up slightly
Figure 22: Overseas and domestic holiday bookings, 2006-16
But domestic trips still ahead
Average overseas spend rises
Figure 23: Overseas and domestic holiday expenditure, 2006-16
All-inclusive drives package share increase
Figure 24: Volume of overseas package and independent holidays, 2006-10
Figure 25: Expenditure on overseas package and independent holidays, 2006-10*
Forecast
Figure 26: Overseas holiday bookings, 2006-16
Figure 27: Overseas holiday expenditure*, 2006-16
Figure 28: Domestic holiday bookings, 2006-16
Figure 29: Domestic holiday expenditure*, 2006-16
Forecast methodology
HOLIDAY INFORMATION
Key points
Six in ten research holidays online
Figure 30: Research/information sources used for holidays/short breaks abroad taken in the last 12 months
HOLIDAY BOOKINGS AND TIMINGS
Key points
Two thirds book online
Figure 31: Booking methods used for holidays/short breaks taken in the last 12 months, 2011
Travel shop drop as online sales increases
Bucking the trend
Uncertain world
Figure 32: Length of time before holidays/short breaks abroad that bookings were made, 2011
MARKET SHARE
Key points
On The Beach enters top ten
Figure 33: Top 50 UK tour operators ranked by ATOL passenger licenses, 14 September 2011
COMPANIES AND PRODUCTS
easyJet
Figure 34: Key financials for easyJet, 2009-10
Expedia
Figure 35: Key financials for Expedia.com Limited UK, 2008-09
Flight Centre
Figure 36: Key financials for Flight Centre UK, 2009-10
Lastminute.com
Ryanair
Figure 37: Key financials for Ryanair, 2010-11
Thomas Cook
Figure 38: Key financials for Thomas Cook Group Plc – UK & Ireland, India and the Middle East segment, 2009-10
Travel Counsellors
Figure 39: Key financials for Travel Counsellors, 2009-10
Travelsupermarket.com
Figure 40: Key financials for Travelsupermarket.com, 2009-10
TripAdvisor
Figure 41: Key financials for TripAdvisor Limited, 2009
TUI Travel
Figure 42: Key financials for TUI Plc – UK & Ireland market, 2009-10
HOLIDAY TAKING
Key points
Half of consumers book independently and three in ten package
Figure 43: Types of holiday taken in the last five years, June 2011
North/south divide
HOLIDAY PLANNING
Key points
Half pick destination first
Figure 44: Holiday planning activities, June 2011
A fifth just start by Googling
Mums focus on holiday budget
‘Googlers’ under 35
HOLIDAY BOOKING
Key points
Online bookings stabilise
Figure 45: Holiday booking methods, June 2011
BOOKING HOLIDAY EXTRAS
Key points
Insurance and transfers top list of add-ons
Figure 46: Holiday extras booking preferences, June 2011
Pay per frill
Info pack potential
Young ABC1s seek experience
HOLIDAY PLANNING AND BOOKING PREFERENCES
Key points
Four in ten seek early bird deals
Figure 47: Holiday planning and booking preferences, June 2011
Exacting consumers
Over-55s lose patience with process
HOLIDAY PLANNING AND BOOKING ATTITUDES
Key points
Four in ten under-35s confused about protection
Figure 48: Holiday planning and booking attitudes, July 2011
Big brand safety
Divided opinions
Green appeal
TARGETING OPPORTUNITIES
Key points
Target groups
Figure 49: Holiday Planning & Booking Process target groups, July 2011
Savvy Self-sufficient
Demographic profile
Marketing message
Big Brands Best
Demographic profile
Marketing message
Needing Guidance
Demographic profile
Marketing message
Holiday Hassled
Demographic profile
Marketing message
Unengaged
Demographic profile
Marketing message
APPENDIX – INTERNAL MARKET ENVIRONMENT
Figure 50: Number of short breaks (1-4 days) taken in the British Isles in the last 12 months, by demographics, 2011
Figure 51: Number of holidays (5+ days) taken in the British Isles in the last 12 months, by demographics, 2011
Figure 52: Number of short breaks (1-4 days) taken abroad in the last 12 months, by demographics, 2011
Figure 53: Number of holidays (5+ days) taken abroad in the last 12 months, by demographics, 2011
Figure 54: British Isles – total trips in the last 12 months, by demographics, 2011
Figure 55: Abroad – total trips in the last 12 months, by demographics, 2011
APPENDIX – HOLIDAY TAKING
Figure 56: Most popular types of holiday taken in the last five years, by demographics, June 2011
Figure 57: Next most popular types of holiday taken in the last five years, by demographics, June 2011
Figure 58: Other types of holiday taken in the last five years, by demographics, June 2011
APPENDIX – HOLIDAY PLANNING
Figure 59: Holiday planning activities, by most popular types of holiday taken in the last five years, June 2011
Figure 60: Holiday planning activities, by next most popular types of holiday taken in the last five years, June 2011
Figure 61: Most popular holiday planning activities, by demographics, June 2011
Figure 62: Next most popular holiday planning activities, by demographics, June 2011
APPENDIX – HOLIDAY BOOKING
Figure 63: Holiday booking methods, by most popular types of holiday taken in the last five years, June 2011
Figure 64: Holiday booking methods, by next most popular types of holiday taken in the last five years, June 2011
Figure 65: Holiday booking methods, by most popular holiday planning activities, June 2011
Figure 66: Holiday booking methods, by next most popular holiday planning activities, June 2011
Figure 67: Holiday booking methods, by demographics, June 2011
APPENDIX – BOOKING HOLIDAY EXTRAS
Figure 68: Holiday extras booking preferences, by most popular types of holiday taken in the last five years, June 2011
Figure 69: Holiday extras booking preferences, by next most popular types of holiday taken in the last five years, June 2011
Figure 70: Holiday extras booking preferences, by most popular holiday planning activities, June 2011
Figure 71: Holiday extras booking preferences, by next most popular holiday planning activities, June 2011
Figure 72: Holiday extras booking preferences, by most popular holiday booking methods, June 2011
Figure 73: Holiday extras booking preferences, by next most popular holiday booking methods, June 2011
Figure 74: Most popular holiday extras booking preferences, by demographics, June 2011
Figure 75: Next most popular holiday extras booking preferences, by demographics, June 2011
Figure 76: Other holiday extras booking preferences, by demographics, June 2011
APPENDIX – HOLIDAY PLANNING AND BOOKING PREFERENCES
Figure 77: Holiday planning and booking preferences, by most popular types of holiday taken in the last five years, June 2011
Figure 78: Holiday planning and booking preferences, by next most popular types of holiday taken in the last five years, June 2011
Figure 79: Holiday planning and booking preferences, by most popular holiday planning activities, June 2011
Figure 80: Holiday planning and booking preferences, by next most popular holiday planning activities, June 2011
Figure 81: Holiday planning and booking preferences, by most popular holiday booking methods, June 2011
Figure 82: Holiday planning and booking preferences, by next most popular holiday booking methods, June 2011
Figure 83: Holiday planning and booking preferences, by most popular holiday extras booking preferences, June 2011
Figure 84: Holiday planning and booking preferences, by next most popular holiday extras booking preferences, June 2011
Figure 85: Holiday planning and booking preferences, by other holiday extras booking preferences, June 2011
Figure 86: Holiday planning and booking preferences, by demographics June 2011
APPENDIX – HOLIDAY PLANNING AND BOOKING ATTITUDES
Figure 87: Holiday planning and booking attitudes, by most popular types of holiday taken in the last five years, June 2011
Figure 88: Holiday planning and booking attitudes, by next most popular types of holiday taken in the last five years, June 2011
Figure 89: Holiday planning and booking attitudes, by most popular holiday planning activities, June 2011
Figure 90: Holiday planning and booking attitudes, by next most popular holiday planning activities, June 2011
Figure 91: Holiday planning and booking attitudes, by most popular holiday booking methods, June 2011
Figure 92: Holiday planning and booking attitudes, by next most popular holiday booking methods, June 2011
Figure 93: Holiday planning and booking preferences, by most popular holiday extras booking preferences, June 2011
Figure 94: Holiday planning and booking preferences, by next most popular holiday extras booking preferences, June 2011
Figure 95: Holiday planning and booking preferences, by other holiday extras booking preferences, June 2011
Figure 96: Holiday planning and booking attitudes, by holiday planning and booking preferences, June 2011
Figure 97: Most popular statements regarding holiday planning and booking, by demographics, July 2011
Figure 98: Next most popular statements regarding holiday planning and booking, by demographics, July 2011
APPENDIX – TARGETING OPPORTUNITIES
Figure 99: Types of holiday taken in the last five years, by target groups, June 2011
Figure 100: Holiday planning activities, by target groups, June 2011
Figure 101: Holiday booking methods, by target groups, June 2011
Figure 102: Holiday extras booking preferences, by target groups, June 2011
Figure 103: Holiday planning and booking preferences, by target groups, June 2011
Figure 104: Holiday planning and booking attitudes, by target groups, June 2011
Figure 105: Target groups, by demographics, June 2011