Long-haul vs Short-haul Holidays - UK - October 2018

OVERVIEW
What you need to know
Scope of this Report
EXECUTIVE SUMMARY
The market
European holidays still in high demand
Figure 1: Forecast volume of short-haul holidays taken by UK residents (number of trips), 2013-23
Figure 2: Forecast value of short-haul holidays taken by UK residents*, 2013-23
Long-haul market set to stutter
Figure 3: Forecast volume of long-haul holidays taken by UK residents (number of trips), 2013-23
Figure 4: Forecast value of long-haul holidays taken by UK residents*, 2013-23
Spain reigns supreme in short-haul market
US suffers decline in wake of currency crash
Companies and brands
Increasing number of low-budget options
Airports and airlines innovate to offer more seamless travelling
The consumer
Staycations are more popular than holidays to Europe
Figure 5: Holiday destinations visited in the last two years, July 2018
Operators can encourage consumers to slow it all down
Figure 6: Reasons for choosing most recent holiday destination, July 2018
Word of mouth is the best form of advertising
Figure 7: Holiday influencers, July 2018
Nearly half of short-haul holidaymakers want to soak up the sun
Figure 8: Short-haul vs long-haul holiday preferences, July 2018
A fifth of long-haul travellers flew with a budget airline
Figure 9: Type of flight/transport taken on long-haul holidays, July 2018
One in four people are likely to visit the US in the next five years
Figure 10: Intentions to visit long-haul destinations in the next five years, July 2018
What we think
ISSUES AND INSIGHTS
Encouraging more people to look beyond Europe
The facts
The implications
Staycations pose a bigger threat to the short-haul market
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
European holidays still in high demand
Long-haul market set to stutter
Short break market reaches record high
Spain reigns supreme in short-haul market
US suffers decline in wake of currency crash
Playing the exchange rates
Heatwave may cool interest in summer holidays abroad
MARKET SIZE AND FORECAST – SHORT-HAUL
European holidays still in high demand
Figure 11: Forecast volume and value* of short-haul holidays taken by UK residents, 2013-23
Rise in staycations could curb short-haul growth
Figure 12: Forecast volume of short-haul holidays taken by UK residents (number of trips), 2013-23
Figure 13: Forecast value of short-haul holidays taken by UK residents*, 2013-23
Forecast methodology
MARKET SIZE AND FORECAST – LONG-HAUL
Long-haul market set to stutter
Figure 14: Forecast volume and value* of long-haul holidays taken by UK residents, 2013-23
Cautious outlook for long-haul market
Figure 15: Forecast volume of long-haul holidays taken by UK residents (number of trips), 2013-23
Figure 16: Forecast value of long-haul holidays taken by UK residents*, 2013-23
Forecast methodology
MARKET SEGMENTATION
Vast majority of short-haul trips taken by air
Figure 17: Short-haul holiday trips taken, by transport type, 2012-17
Fly-and-cruise packages can suit those who want flexibility
Figure 18: Long-haul holiday trips taken, by transport type, 2012-17
Spain reigns supreme in short-haul market
Figure 19: Top 10 short-haul destinations, by volume of trips, 2016 and 2017
US suffers decline in wake of currency crash
Figure 20: Top 10 long-haul destinations, by volume of trips, 2016 and 2017
MARKET DRIVERS
Playing the exchange rates
Figure 21: Spot exchange rate, Pound Sterling vs euro and US Dollar, June 2016-June 2018
Heatwave may cool interest in summer holidays abroad
Figure 22: Holiday booking trends, January 2015-August 2018
Short break market reaches record high
Figure 23: Future plans for holidays, 2015-17
Independently booked holidays receive added protection
COMPANIES AND BRANDS – WHAT YOU NEED TO KNOW
Increasing number of low-budget options
Airports and airlines innovate to offer more seamless travelling
Through the voice and eyes of locals
LAUNCH ACTIVITY AND INNOVATION
Increasing number of low-budget options
Low-cost long-haul flights
Low-cost train travel
Airports and airlines innovate to offer more seamless travelling
Dubai Airport’s smart tunnel
Emirates Airlines’ Home Check-in
Figure 24: Emirates Airlines’ Home Check-in service
Entertainment at airports in Dubai, Barbados and Singapore
Easing the search and booking process
Instagram’s action button
KLM’s voice search service
Through the voice and eyes of locals
Brand USA’s Ask A Local Initiative
Atout France’s Instagram campaign
Figure 25: Atout France’s Instagram campaign
Screen tourism as a driver for international tourism
Tourism Australia’s Dundee campaign
Tourism Ireland’s Star Wars campaign
THE CONSUMER – WHAT YOU NEED TO KNOW
Staycations are more popular than holidays to Europe
Climate and culture are consumers’ top priorities
Word of mouth is the best form of advertising
Nearly a third of travellers have been on guided tours
A fifth of long-haul travellers flew with a budget airline
One in four people have an overseas holiday booked
One in four people are likely to visit the US in the next five years
DESTINATIONS VISITED
Staycations are more popular than holidays to Europe
Figure 26: Holiday destinations visited in the last two years, July 2018
Weaker Pound makes Europe less viable
Figure 27: Holiday destinations visited in the last two years, by financial situation, July 2018
One in four have gone long-haul
Figure 28: Frequency of long-haul holidays, July 2018
REASONS FOR CHOOSING DESTINATION
Operators can encourage consumers to slow it all down
Figure 29: Reasons for choosing most recent holiday destination, July 2018
The rise of DNA tourism
Social media can trigger food envy
HOLIDAY INFLUENCERS
Word of mouth is the best form of advertising
Figure 30: Holiday influencers, July 2018
Millennials are more likely to seek opinion and inspiration
PREFERRED HOLIDAY TYPES 
Nearly half of short-haul holidaymakers want to soak up the sun…
...but activities and experiences are also in demand
Figure 31: Short-haul vs long-haul holiday preferences, July 2018
Fly, flop and shop
GUIDED TOURS
Nearly a third of travellers have been on guided tours
Tours shouldn’t be limited to traditional landmarks
Figure 32: Participation in guided tours, July 2018
LONG-HAUL FLIGHTS
A fifth of long-haul travellers flew with a budget airline
Figure 33: Type of flight/transport taken on long-haul holidays, July 2018
Full-service airlines respond
PLANS FOR THE NEXT YEAR
One in four people have an overseas holiday booked
Figure 34: Holiday plans for the next 12 months, July 2018
Financial disparity clearly impacting bookings
Figure 35: Holiday plans for the next 12 months, by financial situation, July 2018
INTENTIONS TO VISIT LONG-HAUL DESTINATIONS 
One in four people are likely to visit the US in the next five years
Figure 36: Intentions to visit long-haul destinations in the next five years, July 2018
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Consumer research methodology
APPENDIX – MARKET SIZE AND FORECAST
Volume forecast for short-haul holidays
Figure 37: Forecast volume of short-haul holidays taken by UK residents, 2018-23
Value forecast for short-haul holidays
Figure 38: Forecast value* of short-haul holidays taken by UK residents, 2018-23
Volume forecast for long-haul holidays
Figure 39: Forecast volume of long-haul holidays taken by UK residents, 2018-23
Value forecast for long-haul holidays
Figure 40: Forecast value* of long-haul holidays taken by UK residents, 2018-23
Forecast methodology