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Holiday Planning and Booking Process - UK - May 2019

OVERVIEW
What you need to know
Covered in this Report
EXECUTIVE SUMMARY
The market
Volume of domestic holidays expected to remain flat in 2019
Figure 1: Forecast volume of domestic holidays* taken by British residents (number of trips), 2013-23
Volume of overseas holidays expected to decline slightly in 2019
Figure 2: Forecast volume of overseas holidays taken by UK residents (number of trips), 2013-23
Voice recognition to become part of the holiday booking process
Companies and brands
Online travel agents On the Beach and We Love Holidays are now in top five ATOL holders
Roughly a quarter of consumers used TripAdvisor and Booking.com recently
CultureTrip helps travellers to find the ideal destination by focussing on experiences
Trivago acquires start-up TripHappy to show details on neighbourhoods
Carrier re-opens its luxury travel boutique reflecting a new in-shop experience
icelolly.com embraces travel agents on its aggregator platform
Case study: start-up Xarista enters the market to deliver personalised website experiences
The consumer
Many travellers start researching their trip one to four months before booking
Figure 3: Time between the start of the search and booking main holiday, package vs independent, February 2019
Package holidays are booked longer in advance
Figure 4: Time between booking and departing for main holiday, package vs independent, February 2019
Short breaks are booked more on impulse
Online bookings on a laptop/desktop computer still dominate the market
Figure 5: How main holiday was booked, February 2019
Younger generation keen on using smartphones when booking their main holiday
Price, ease of booking, and previous experience key in holiday planning and booking process
Figure 6: Main reasons for choosing travel company, package vs independent, February 2019
61% of holidaymakers had not booked their main holiday in 2019
Figure 7: Attitudes towards planning and booking holidays, February 2019
What we think
ISSUES AND INSIGHTS
Voice search: travel brands should get ready to interact with travellers in a new way
The facts
The implications
Ease of booking a top priority
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
Volume of domestic holidays expected to remain flat in 2019
Volume of overseas holidays expected to decline slightly in 2019
Increased marketing activity expected due to Brexit delay
Increased ownership of voice-controlled speakers
MARKET SIZE AND FORECAST – DOMESTIC HOLIDAYS
Volume of domestic holidays decreased in 2018
Figure 8: Forecast volume and value* of domestic holidays taken by British residents, 2013-23
Volume of domestic holidays expected to remain flat in 2019
Figure 9: Forecast volume of domestic holidays* taken by British residents (number of trips), 2013-23
Figure 10: Forecast value of domestic holidays* taken by British residents, 2013-23
Forecast methodology
MARKET SIZE AND FORECAST – OVERSEAS HOLIDAYS
Volume of overseas holidays expected to decline slightly in 2019
Figure 11: Forecast volume and value* of overseas holidays taken by UK residents, 2013-23
Popularity of lower-cost destinations puts spending under pressure
Figure 12: Forecast volume of overseas holidays taken by UK residents (number of trips), 2013-23
Figure 13: Forecast value of overseas holidays taken by UK residents, 2013-23
Forecast methodology
MARKET DRIVERS
Increased marketing activity expected due to Brexit delay
Demand for holidays is still there, but consumers are cautious
Figure 14: Changes in spending habits in the last 12 months, January 2019
Long-haul lower-cost destinations remain appealing
Figure 15: Pound versus euro and US Dollar, 20 May 2016-8 April 2019
Travel agents feel the decline of the high street
Increased ownership of voice-controlled speakers
Figure 16: Ownership of technology products, December 2017 and January 2019
COMPANIES AND BRANDS – WHAT YOU NEED TO KNOW
Online travel agents On the Beach and We Love Holidays are now in top five ATOL holders
CultureTrip helps travellers to find the ideal destination by focussing on experiences
Trivago acquires start-up TripHappy to show details on neighbourhoods
Carrier re-opens its luxury travel boutique reflecting a new in-shop experience
icelolly.com embraces travel agents on its aggregator platform
Case study: start-up Xarista enters the market to deliver personalised website experiences
MARKET SHARE
Online travel agents On the Beach and We Love Holidays are now in top five ATOL holders
Figure 17: Passengers licensed under ATOL protection, by top 10 ATOL holders, 2015-19*
Roughly a quarter of consumers used TripAdvisor and Booking.com recently
Figure 18: Usage of selected brands, April 2019
LAUNCH ACTIVITY AND INNOVATION
Flexibility to help travellers find the best deals
KAYAK mixes and matches flights and hotels to find the cheapest deals
Expedia gives the option to add a hotel for a discounted price at a later stage
Travel brands are easing up the search and booking process
CultureTrip helps travellers to find the ideal destination by focussing on experiences
Booking.com enables small and medium-sized properties to generate direct bookings
Search criteria and search results are getting richer
KAYAK partners with Quicket.io to show in-flight services
Trivago acquires start-up TripHappy to show details on neighbourhoods
Travel agents are strengthening their position in the holiday search and booking process
Carrier re-opens its luxury travel boutique reflecting a new in-shop experience
Figure 19: Carrier’s luxury travel boutique in Alderley Edge, Cheshire
icelolly.com embraces travel agents on its aggregator platform
New technologies to enrich online service
Travellers can book with Expedia by using their voice
Scanning feature allows travellers to check luggage size via easyJet’s app
Figure 20: easyJet’s scanning feature to check luggage sizes
BRAND RESEARCH
Brand map
Figure 21: Attitudes towards and usage of selected brands, April 2019
Key brand metrics
Figure 22: Key metrics for selected brands, April 2019
Brand attitudes: TripAdvisor seen as an innovative brand
Figure 23: Attitudes, by brand, April 2019
Brand personality: Virgin Holidays is more likely to be considered exclusive
Figure 24: Brand personality – Macro image, April 2019
Jet2holidays most closely associated with basic
Figure 25: Brand personality – Micro image, April 2019
Brand analysis
High usage TripAdvisor among wealthy consumers
Figure 26: User profile of TripAdvisor, April 2019
Booking.com offers good value
Figure 27: User profile of Booking.com, April 2019
A relatively large share of over-55s choose TUI
Figure 28: User profile of TUI, April 2019
Many travellers had an excellent experience with Jet2holidays
Figure 29: User profile of Jet2holidays, April 2019
Virgin Holidays; stylish and special
Figure 30: User profile of Virgin Holidays, April 2019
Thomas Cook still challenged to increase experience rates and recommendation levels
Figure 31: User profile of Thomas Cook, April 2019
START-UPS AND DISRUPTORS CASE STUDY – XARISTA
Company overview
What is it?
Founded
Founders Story
Mintel analyst view
Mintel Trends
Why it could succeed
Why it could fail
The verdict
Product information
The brand’s view
Milestones
Target audience
Looking to the future
THE CONSUMER – WHAT YOU NEED TO KNOW
Many travellers start researching their trip one to four months before booking
Short breaks are booked more on impulse
Package holidays are booked longer in advance
Online bookings on a laptop/desktop computer still dominate the market
Price, ease of booking, and previous experience key in holiday planning and booking process
Loyal holidaymakers are more likely to have booked their main holiday
LOOK TO BOOK TIMES
Many travellers start researching their trip one to four months before booking
Figure 32: Time between the start of the search and booking main holiday, package vs independent, February 2019
Figure 33: Images/videos posted by Airbnb between 17-24 March 2019
Beach resort holidays among the holiday types with the longest booking lead times
Figure 34: Time between the start of the search and booking main holiday, by types of holiday, February 2019
Rise in short breaks will lead to more impulsive behaviour
Figure 35: Time between the start of the transport search and booking main holiday, by duration, February 2019
Figure 36: Time between the start of the accommodation search and booking main holiday, by duration, February 2019
BOOK TO DEPARTURE TIMES
Package holidays are booked longer in advance
Figure 37: Time between booking and departing for main holiday, package vs independent, February 2019
City breaks are booked close to departure
Figure 38: Time between booking and departing for main holiday, by types of holiday, February 2019
Last-minute deal hunting popular among Millennials
Figure 39: Time between booking transport and departing for main holiday, by duration, February 2019
Figure 40: Time between booking accommodation and departing for main holiday, by duration, February 2019
HOLIDAY BOOKING CHANNELS
Online bookings on a laptop/desktop computer still dominate the market
Figure 41: How main holiday was booked, February 2019
Younger generation keen on using smartphones when booking their main holiday
Figure 42: How main holiday was booked, by age, February 2019
Group holiday/escorted tours and sea/river cruises most likely to be booked in person
Figure 43: How main holiday was booked, by types of holiday, February 2019
Almost a fifth booked their package holiday in-store
Figure 44: How main holiday was booked, package vs independent, February 2019
BOOKING DECISION INFLUENCERS
Price, ease of booking, and previous experience key in holiday planning and booking process
Figure 45: Main reasons for choosing travel company, package vs independent, February 2019
Price first priority for travellers who book transport independently
Figure 46: Main reasons for choosing travel company for transport, February 2019
Brand less important to travellers who book accommodation independently
Figure 47: Main reasons for choosing travel company for accommodation, February 2019
Package holiday bookings are less price-driven compared to the independent segment
Figure 48: Main reasons for choosing travel company for package holiday, February 2019
Environmental policy more important to the younger generation when booking holidays
Figure 49: Main reasons for choosing travel company, by age, February 2019
ATTITUDES TOWARDS HOLIDAY PLANNING AND BOOKING
61% of holidaymakers had not booked their main holiday in 2019
Figure 50: Attitudes towards planning and booking holidays, February 2019
Families living in urban areas more likely to be cautious about booking holidays
Figure 51: Uncertainties caused by Brexit – CHAID analysis, February 2019
Loyal holidaymakers are more likely to have booked their main holiday
Figure 52: Attitudes towards planning and booking holidays, by level of loyalty, February 2019
APPENDIX – DATA SOURCES, ABBREVIATIONS, AND SUPPORTING INFORMATION
Definitions
Abbreviations
Consumer research methodology
CHAID methodology
Figure 53: Holiday Planning and Booking Process – CHAID – Table output, February 2019
APPENDIX – MARKET SIZE AND FORECAST
Volume forecast for total holidays
Figure 54: Forecast volume of total holidays (domestic* and overseas) taken by UK residents, 2018-23
Value forecast for total holidays
Figure 55: Forecast value* of total holidays (domestic** and overseas) taken by UK residents, 2018-23
Volume forecast for domestic holidays
Figure 56: Forecast volume of domestic holidays* taken by British residents, 2018-23
Value forecast for domestic holidays
Figure 57: Forecast value of domestic holidays* taken by British residents, 2018-23
Volume forecast for overseas holidays
Figure 58: Forecast volume of overseas holidays taken by UK residents, 2018-23
Value forecast for overseas holidays
Figure 59: Forecast value* of overseas holidays taken by UK residents, 2018-23
Forecast methodology

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