Travel Agents - UK - December 2015

OVERVIEW
What you need to know
Covered in this report
EXECUTIVE SUMMARY
In-store bookings will continue to decline
Figure 1: Estimated number of holidays booked via travel agents, 2010-20
Thomas Cook still most popular store brand
Figure 2: Brands visited, October 2015
Previous experience with a shop is primary reason for booking in-store
Figure 3: Reasons for using, October 2015
Highest interest is for virtual reality
Figure 4: Interest in technology features, October 2015
Print brochures still worthwhile
Figure 5: Attitudes towards travel agents, October 2015
Transport advice most desired information
Figure 6: Advice from travel agents, October 2015
What we think
ISSUES AND INSIGHTS
Concept stores bring experience to the forefront
The facts
The implications
Post-booking advice services have potential
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
In-store bookings decline in 2015
Decline is expected to continue
Growth for both independent and package holidays
Domestic tourism forecast to see slight decline
ATOL tour operators close
MARKET SIZE AND FORECAST
In-store bookings will continue decline
Figure 7: Estimated number of holidays booked via travel agents, 2010-20
Outbound market recovery not seen in in-store bookings
Figure 8: Estimated number of overseas holidays booked via travel agents, 2010-20
Domestic in-store bookings also set for drop
Figure 9: Estimated number of domestic holidays booked via travel agents, 2010-20
MARKET DRIVERS
Growth for both independent and package holidays
Figure 10: Forecast volume of UK overseas package holidays, 2009-19
Figure 11: Forecast volume of UK overseas independent holidays, 2009-19
Domestic tourism forecast to see slight decline
Figure 12: Domestic holidays volume forecast 2015-20
ATOL tour operators close
Figure 13: ATOL tour operator failures/closures in the UK, 1 January-20 November 2015
KEY PLAYERS – WHAT YOU NEED TO KNOW
Thomas Cook still has largest retail estate
VR technology to roll out in Thomas Cook stores
Thomson and First Choice to rebrand under single banner
TUI offers mobile content for in-store customers
“Big two” licence nearly 8 million passengers
Virgin Holidays launches v-room lounge
MARKET SHARE
Thomas Cook still has largest retail estate
Figure 14: Top UK travel agents, by number of retail stores, November 2015
TUI announces Thomson and First Choice rebrand
TUI and Thomas Cook dominate licensed passengers
Figure 15: Top 20 UK travel companies, ranked by ATOL passenger licences, November 2015
BRAND RESEARCH
What you need to know
Brand map
Figure 16: Attitudes towards and usage of selected travel agent brands, November 2015
Key brand metrics
Figure 17: Key metrics for selected travel agent brands, November 2015
Brand attitudes: Virgin Holidays enjoys a particularly different brand image
Figure 18: Attitudes, by travel agent brand, November 2015
Brand personality: The Co-operative Travel struggles to enthuse consumers
Figure 19: Brand personality – Macro image, November 2015
Most used brands are associated with functional and customer service attributes
Figure 20: Brand personality – Micro image, November 2015
Brand analysis
Virgin Holidays is seen as exclusive, but worth paying more for
Figure 21: User profile of Virgin Holidays, November 2015
Thomson seen in similar fashion to Thomas Cook, but encourages a slightly more positive image
Figure 22: User profile of Thomson, November 2015
Thomas Cook suffers from recent negative press
Figure 23: User profile of Thomas Cook, November 2015
First Choice shares traits with Thomson and Thomas Cook, but all-inclusive basis reduces overall appeal
Figure 24: User profile of First Choice, November 2015
The Co-operative Travel is seen as ethical, but is more closely associated with being boring or tired than others
Figure 25: User profile of The Co-operative Travel, November 2015
STA Travel’s youthful element drives a more defined target market
Figure 26: User profile of STA Travel, November 2015
Flight Centre lacks the awareness to promote a particularly strong brand image
Figure 27: User profile of Flight Centre, November 2015
LAUNCH ACTIVITY AND INNOVATION
Travel agents move forward with VR technology
Thomas Cook rolls out Oculus Rift
Others ready to follow suit
Thomson offer mobile content for in-store customers
Virgin Holidays launches v-room lounge
THE CONSUMER – WHAT YOU NEED TO KNOW
Less than a fifth have made a travel agent booking
European holidays are primary booking type
Thomas Cook still most popular brand
Previous experience with shops draws people back
Virtual reality is most enticing tech feature
People use travel agents for complex holidays
People want advice on local transport
USE OF TRAVEL AGENTS
Less than a fifth have made a travel agent booking
Figure 28: Use of travel agents, October 2015
European holidays are main booking type
Figure 29: Booking type, October 2015
Thomas Cook still most popular store brand
Figure 30: Brands visited, October 2015
REASONS FOR USING
Experience with shop is primary reason for in-store booking
Figure 31: Reasons for using, October 2015
Recommendations and deals important for younger people
Figure 32: Reasons for using, by age, October 2015
INTEREST IN TECHNOLOGY
Virtual reality is most enticing tech feature
Figure 33: Interest in technology, October 2015
Younger people more intrigued by tech additions
Figure 34: Interest in technology, by age, October 2015
Tablets appeal to those who browse in travel agents
Figure 35: Interest in technology, by use of travel agents, September 2015
ATTITUDES TOWARDS TRAVEL AGENTS
Print brochures still worthwhile
Figure 36: Attitudes towards travel agents, October 2015
Possibilities for holiday specific concept stores
Figure 37: Preference for travel agents shops that specialise in one type of holiday, by use of travel agents, October 2015
16-24s in particular want to use travel agents for complex holidays
Figure 38: Only liking to use a travel agent for a holiday that requires more planning, by age, October 2015
ADVICE FROM TRAVEL AGENTS
Transport advice most desired information
Health advice another key area
Figure 39: Advice from travel agents, October 2015
Younger people are interested in advice on activities
Figure 40: Advice from travel agents, by age, October 2015
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Data sources
Travel and tourism definitions
Abbreviations
Market forecast
Figure 41: Estimated number of holidays booked via travel agents, 2015-20
Figure 42: Estimated number of overseas holidays booked via travel agents, 2015-20
Figure 43: Estimated number of domestic holidays booked via travel agents, 2015-20
Fan chart forecast