Table of Contents
Overview
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- What you need to know
- Products covered in this Report
Executive Summary
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- The market
- Slowdown in growth expected over the next few years
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- Figure 1: Forecast of total holiday market volume, 2012-22
- Bright outlook for the domestic market
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- Figure 2: Forecast of domestic holiday market volume, 2012-22
- Overseas volume finally surpasses a milestone but a slowdown is expected
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- Figure 3: Forecast of overseas holiday market volume, 2012-22
- The consumer
- A greater proportion of UK residents took a holiday in 2017
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- Figure 4: Destinations visited, November 2016 and December 2017
- A reduction in city breaks on the cards?
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- Figure 5: Type of holidays taken, December 2017
- How much was spent on consumers’ most expensive holidays?
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- Figure 6: Holiday spending, December 2017
- All-inclusive products could prove popular as consumers look to manage their money
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- Figure 7: How most expensive holiday was booked – Package versus independent bookings, December 2017
- Most holidaymakers save and pay in one go
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- Figure 8: How most expensive holiday was booked, December 2017
- Consumers keen on holidays but will seek out cheaper destinations
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- Figure 9: Future plans for holidays, 2015-17
- Long-haul versus short-haul holidays in 2018
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- Figure 10: Long-haul vs short-haul, December 2017
- How are Brexit and the Open Skies Agreement affecting holidaymakers?
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- Figure 11: Holiday behaviours – Brexit, December 2017
- What we think
Issues and Insights
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- Holidaymakers could cut back on short city breaks in 2018
- The facts
- The implications
- Will all-inclusive holiday products prove more popular in 2018?
- The facts
- The implications
- How are holidaymakers paying for their trips?
- The facts
- The implications
- The majority of 25-34s feel that Brexit will make it more difficult to holiday overseas
- The facts
- The implications
The Market – What You Need to Know
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- 2017 was a good year for domestic travel
- A possible return to staycations on the horizon
- Slower growth, but overseas volume surpassed a milestone
- Many will likely cut back on overseas short breaks in the low seasons
- Inbound visits to the UK rise as the Pound remains low
- Seniors are the most positive about their finances; likely to boost cruises
Market Size and Forecast
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- Slowdown in growth expected over the next few years
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- Figure 12: Total holiday market volume and value*, 2012-22
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- Figure 13: Forecast of total holiday market volume, 2012-22
- Figure 14: Forecast of total holiday market value*, 2012-22
- The domestic market; a return to staycations on the horizon?
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- Figure 15: Domestic holiday market volume and value* forecast, 2012-22
- Figure 16: Forecast of domestic holiday market volume, 2012-22
- Figure 17: Forecast of domestic holiday market value*, 2012-22
- Overseas volume finally surpasses a milestone but a slowdown is expected
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- Figure 18: Overseas holiday market volume and value*, 2012-22
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- Figure 19: Forecast of overseas holiday market volume, 2012-22
- Figure 20: Forecast of overseas holiday market value*, 2012-22
Market Segmentation
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- Inbound visits to the UK rise as the Pound remains low
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- Figure 21: Inbound holiday volume from overseas residents to the UK, 2012-18
- Top 10 destinations for UK visitors going abroad
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- Figure 22: Top 10 countries, 2015 versus 2016
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- Figure 23: Top 10 countries, H1 2016 versus H1 2017
- All-inclusive deals could prove popular as consumers look to monitor their spending
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- Figure 24: UK overseas volume, package and independent holidays, 2012-17
- Airlines: passenger growth forecast to slow over the next few years
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- Figure 25: Passenger numbers uplifted at UK airports, 2012-22
Market Drivers
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- Inflation curbs spending power
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- Figure 26: How consumers would describe their financial situation, November 2017
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- Figure 27: Trends in consumer sentiment for the coming year, by age, November 2017
- Despite some concerns over finances, consumers still plan to book holidays
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- Figure 28: Plans to book a holiday in the next 3 months, June 2012-December 2017
- Oil prices are rising which could limit cheap airfare offers
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- Figure 29: Europe Brent Spot Price FOB* (Dollars per Barrel), January 2014-18
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- Figure 30: US Gulf Coast Kerosene-Type Jet Fuel Spot Price FOB (Dollars per gallon), January 2014-18
- The weak Pound makes holidaying overseas more expensive
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- Figure 31: Pound versus euro and US Dollar, April 2016-January 2018
Launch Activity and Innovation
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- Low-cost long-haul airlines
- New app from Heritage Cities Group leverages the latest in augmented reality
- Travelodge launches its premium economy SuperRooms
- Hotelplan and Google partner to offer packages
- Airbnb incorporates restaurant bookings
- One-click payments can help boost chatbots
- Lufthansa flight information is now searchable via Google Home
- Snap’s new ad targeting
- Skurt – An Uber-style car rental app that supplies fleet cars on demand
The Consumer – What You Need to Know
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- A greater proportion of UK residents took a holiday in 2017
- A reduction in city breaks on the cards?
- How much was spent on consumers’ most expensive holidays?
- All-inclusive products could prove popular as consumers look to manage their money
- How holidaymakers pay; credit card users tend to be older
- Consumers keen on holidays but will seek out cheaper destinations
- Attitudes towards Brexit and holidays
Destinations Visited
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- A greater proportion of UK residents took a holiday in 2017
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- Figure 32: Destinations visited, November 2016 and December 2017
- Who is taking holidays? A look at demographics
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- Figure 33: Destinations visited, by age, December 2017
- Regional holiday habits
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- Figure 34: Destinations visited, by region, December 2017
- Figure 35: Destinations visited, by socio-economic group, December 2017
- The importance of family holidays for domestic tourism
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- Figure 36: Destinations visited, by presence of children, December 2017
- Spain and Portugal see strong growth in UK visitors
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- Figure 37: Destinations visited, by country, November 2016 and December 2017
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- Figure 38: Overseas visits by UK residents, H1* 2016 versus H1 2017
- 25-34s far more likely than over-35s to visit France
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- Figure 39: Destinations visited, by age, December 2017
Types of Holidays Taken
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- A reduction in city breaks on the cards?
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- Figure 40: Type of holidays taken, December 2017
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- Figure 41: Type of holidays taken, by age, December 2017
- Beach holiday market should remain stable
- A focus on authenticity and what this means
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- Figure 42: Type of holidays taken, by age, December 2017
- Cruise likely to weather any economic storms
- Growth in domestic tourism could boost the camping and caravanning market
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- Figure 43: Type of holidays taken, by presence of children, December 2017
Holiday Spending
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- How much was spent on consumers’ most expensive holidays?
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- Figure 44: Holiday spending, 2016 and 2017
- Holiday spending – A look at demographics
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- Figure 45: Holiday spending, by presence of children, December 2017
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- Figure 46: Holiday spending, by age, December 2017
- Even affluent consumers are feeling the squeeze
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- Figure 47: Holiday spending, by socio-economic group, December 2017
Package versus Independent Bookings
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- 45% of holidaymakers booked independently
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- Figure 48: How most expensive holiday was booked – Package versus independent bookings, December 2017
- All-inclusive products could prove popular as consumers look to manage their money
- Added expense for agents with the banning of card charges
Holiday Payments
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- Most holidaymakers save and pay in one go
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- Figure 49: How most expensive holiday was booked, December 2017
- Holidaymakers who save and pay in one go
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- Figure 50: How most expensive holiday was booked, by presence of children, December 2017
- Credit card users tend to be older
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- Figure 51: How most expensive holiday was booked, by age, December 2017
- Figure 52: How most expensive holiday was booked, by socio-economic group, December 2017
- Where do cryptocurrencies fit into the travel market?
Future Plans for Holidays
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- Consumers keen on holidays but will seek out cheaper destinations
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- Figure 53: Future plans for holidays, 2015-17
- As are naturally the most likely to spend but even they are not immune to economic pressures
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- Figure 54: Future plans for holidays, by age, December 2017
- Figure 55: Future plans for holidays, by socio-economic group, December 2017
- Airbnb could prove a cost-saving option for families
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- Figure 56: Future holiday plans, by presence of children, December 2017
- Long-haul versus short-haul tips in 2018
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- Figure 57: Long-haul versus short-haul holidays, by volume, 2013-17
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- Figure 58: Long-haul vs short-haul, December 2017
- Over-55s are important targets for the domestic market while younger consumers are more likely to travel long-haul
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- Figure 59: Long-haul vs short-haul, by age, December 2017
Holiday Behaviours
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- How are Brexit and the Open Skies Agreement affecting holidaymakers?
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- Figure 60: Holiday behaviours – Brexit, December 2017
- The majority of 25-34s feel that Brexit will make it more difficult to holiday overseas
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- Figure 61: Holiday behaviours – Brexit, by age, December 2017
- The high-profile collapse of Monarch makes some consumers uneasy
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- Figure 62: Holiday behaviours – Booking, December 2017
- The safety of major cities concerns almost half of holidaymakers
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- Figure 63: Holiday behaviours, December 2017
CHAID Analysis
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- Methodology
- Parents of under-16s most likely to use a high street travel agent
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- Figure 64: Target groups based on statements about holidaying – CHAID – Tree output, December 2017
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- Figure 65: Target groups based on statements about holidaying – CHAID – Table output, December 2017
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
- Definitions
Appendix – Market Size and Forecast
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- Forecast methodology
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- Figure 66: Best- and worst-case forecast for total holiday volume, 2017-22
- Figure 67: Best- and worst-case forecast for total holiday value, 2017-22
- Figure 68: Best- and worst-case forecast for domestic volume, 2017-22
- Figure 69: Best- and worst-case forecast for domestic value, 2017-22
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- Figure 70: Best- and worst-case forecast for overseas volume, 2017-22
- Figure 71: Best- and worst-case forecast for overseas value, 2016-21
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