Holiday Rental Property - UK - June 2016

OVERVIEW
What you need to know
Products covered in this Report
EXECUTIVE SUMMARY
The market
Domestic holiday rentals sector recovers from 2012 trough
Overseas holiday property rental market value slightly larger than UK
Figure 1: Volume forecast for the domestic holiday rental property market, 2011-21
Figure 2: Value forecast for the domestic holiday rental property market, 2011-21
Companies and brands
Further consolidation as industry giants jockey for position
TripAdvisor shifts from reviewer/referrer to booking site
Airbnb continues to disrupt the industry
Figure 3: Leading holiday rental property agents, by number of properties offered, May 2016
The consumer
Holiday rentals biased towards younger age groups
Scope to tempt back over-55s
Figure 4: Use of holiday rental property in the UK and abroad, March 2016
Majority hadn’t booked for 2016 by mid-March
Figure 5: Holiday rental property booking behaviour for 2016, UK and abroad, March 2016
Third-party reviewers/referrers muddying the waters
Figure 6: Methods used to book most recent holiday rental property, March 2016
Seaside locations are most popular for holiday property rentals
Figure 7: Location of most recent holiday at rental property, March 2016
Majority of holiday rentals are of four to seven nights
Figure 8: Number of nights stayed on most recent holiday at rental property, March 2016
Most ‘undecideds’ use travel review sites to research country/location
Figure 9: Sources used to research country and/or destination for most recent holiday in a rental property, March 2016
Rise of the review
Figure 10: Attitudes towards holiday rental property, March 2016
What we think
ISSUES AND INSIGHTS
What does the growing influence of TripAdvisor mean for the industry?
The facts
The implications
How can owners and agents optimise the appeal of rental properties?
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
Domestic holiday rentals sector recovers from 2012 trough
Rental property second most popular type of domestic holiday
Overseas holiday property rental market value slightly larger than UK
Flats/apartments lose share in domestic market
Holiday market bounces back
Terrorist threat drives tourists back to old favourites
MARKET SIZE AND FORECAST
Domestic holiday rentals sector recovers from 2012 trough
Figure 11: Trends in the volume and value of the market for domestic holiday rental property, 2011-21
Rental property second most popular type of domestic holiday
Figure 12: Type of accommodation stayed at on holiday in the UK in the past 12 months, March 2016
Forecast methodology
Figure 13: Volume forecast for the domestic holiday rental property market, 2011-21
Figure 14: Value forecast for the domestic holiday rental property market, 2011-21
Overseas holiday property rental market value slightly larger than UK
Hotels more dominant in overseas holiday market
Figure 15: Type of accommodation stayed at on holiday abroad in past 12 months, March 2016
SEGMENT PERFORMANCE
Flats/apartments lose share in domestic market
Figure 16: Volume of trips taken in domestic holiday rental property, by segment, 2011-15
Figure 17: Expenditure* on trips taken in domestic holiday rental property, by segment**, 2011-15
Figure 18: Trends in spend* per trip for holidays taken in domestic rental property, by segment**, 2011-15
Figure 19: Trends in nights per trip for holidays taken in domestic rental property, by segment, 2014 and 2015
Figure 20: Trends in spend* per night for holidays taken in domestic rental property, by segment**, 2014 and 2015
MARKET DRIVERS
Holiday market bounces back
Figure 21: Holidays taken in the past year, March 2016
Figure 22: Trends in the number and value of overseas holidays taken by UK residents, 2010-15
Figure 23: Trends in the number and value of domestic holidays taken by UK residents, 2010-15
Overseas holidays becoming more expensive again
Figure 24: Trends in average annual exchange rates, Sterling versus euro and US Dollar, 2010-16
Growth in UK economy shows signs of slowing
Figure 25: UK average weekly earnings (excluding bonuses)* vs CPI inflation, percentage change year on year, June 2013-March 2016
Terrorist threat drives tourists back to old favourites
Independent travel recovers
Figure 26: Trends in the number of independent overseas holidays, 2010-15
Figure 27: Top 10 independently booked overseas holiday destinations, by number of trips, 2010-15
Shifts in driving and car ownership have longer-term implications for industry
KEY PLAYERS – WHAT YOU NEED TO KNOW
Further consolidation as industry giants jockey for position
TripAdvisor shifts from reviewer/referrer to booking site
Airbnb continues to disrupt the industry
Wyndham Vacation Rentals partners with booking.com
Desire for authenticity tempts travellers away from traditional sources
Overnight taps into desire for spontaneity
MARKET SHARE
Further consolidation as industry giants jockey for position
TripAdvisor shifts from reviewer/referrer to booking site
Priceline increases its presence
Airbnb continues to disrupt the industry
Wyndham Vacation Rentals partners with booking.com
Figure 28: Leading holiday rental property agents, by number of properties offered, May 2016
LAUNCH ACTIVITY AND INNOVATION
Desire for authenticity tempts travellers away from traditional sources
Passion Search encourages destination discovery based on passions
Overnight taps into desire for spontaneity
Best Western partners with Google Street View for virtual reality tours
Facebook video comments open up alternative feedback channel
THE CONSUMER – WHAT YOU NEED TO KNOW
Holiday rentals biased towards younger age groups
Majority hadn’t booked for 2016 by mid-March
Third-party reviewers/referrers muddying the waters
Operators have choice between fighting back or partnerships/distribution deals
Seaside locations are most popular for holiday property rentals
Majority of holiday rentals are of four to seven nights
Half need to do research to decide destination
Most ‘undecideds’ use travel review sites to research country/location
Rise of the review
USE OF HOLIDAY RENTAL PROPERTY IN THE UK AND ABROAD
UK slightly more popular for holiday rentals
Figure 29: Use of holiday rental property in the UK and abroad, March 2016
Holiday rentals are biased towards younger age groups
Figure 30: Use of holiday rental property in the UK and abroad in the past three years, by age, March 2016
Over-55s most likely to be lapsed holiday property renters
Figure 31: People who have used holiday rental property in the UK and abroad but not in the past three years and those who have never used it, by age, March 2016
HOLIDAY RENTAL PROPERTY BOOKING BEHAVIOUR FOR 2016
Majority hadn’t booked for 2016 by mid-March
Figure 32: Holiday rental property booking behaviour for 2016, UK and abroad, March 2016
Certainty most important to parents
Figure 33: Holiday rental property booking behaviour for 2016, UK, by presence of children in household, March 2016
Figure 34: Holiday rental property booking behaviour for 2016, abroad, by presence of children in household, March 2016
METHODS USED TO BOOK HOLIDAY RENTAL PROPERTY
Third-party reviewers/referrers muddying the waters
Operators have choice between fighting back or partnerships/distribution deals
Figure 35: Methods used to book most recent holiday rental property, March 2016
Airbnb-style services most popular among younger consumers
Figure 36: Methods used to book most recent holiday rental property, by age, March 2016
LOCATION OF MOST RECENT HOLIDAY AT RENTAL PROPERTY
Seaside locations are most popular for holiday property rentals
Figure 37: Location of most recent holiday at rental property, March 2016
Women value escapism offered by rural properties
Figure 38: Location of most recent holiday at rental property, by gender, March 2016
Marketing targeting young should focus on experience and authenticity
Figure 39: Location of most recent holiday at rental property, by age, March 2016
NIGHTS STAYED ON MOST RECENT HOLIDAY AT RENTAL PROPERTY
Majority of holiday rentals are of four to seven nights
Figure 40: Number of nights stayed on most recent holiday at rental property, March 2016
Scope for upselling to different audiences
Figure 41: Number of nights stayed on most recent holiday at rental property, by location stayed at, March 2016
RESEARCHING THE DESTINATION FOR A HOLIDAY IN A RENTAL PROPERTY
Parents have most involvement in researching rental destinations
Figure 42: Personal involvement in researching the destination for a holiday in a rental property, March 2016
Half need to do research to decide destination
Figure 43: Knowledge of destinations people wanted to visit for most recent holiday in a rental property, March 2016
Most ‘undecideds’ use travel review sites to research country/location
Figure 44: Sources used to research country and/or destination for most recent holiday in a rental property, March 2016
Growing importance of social and familial connections
Figure 45: Sources used to research country and/or destination for most recent holiday in a rental property, by age, March 2016
ATTITUDES TOWARDS HOLIDAY RENTAL PROPERTY
Rise of the review
One price and no nasty surprises
Picture this
Get away and switch off
Figure 46: Attitudes towards holiday rental property, March 2016
Women more likely to book in UK to avoid terrorism threat
Figure 47: Agreement with statement ‘The threat of terrorism in overseas locations means I'm more likely to book a holiday rental property in the UK this year’, by gender, March 2016
Women more likely than men to be influenced by reviews
Figure 48: Agreement with statement ‘Reviews written by other people are an important influence on my decision as to which holiday rental property to book’, by gender, March 2016
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Consumer research methodology
APPENDIX – MARKET SIZE AND FORECAST
Forecast scenarios
Figure 49: Volume forecast for the domestic holiday rental property market, 2011-21
Figure 50: Value forecast for the domestic holiday rental property market, 2011-21
Forecast methodology