This report examines package holidays, considering who takes such trips, what they look for from these holidays and why, the strengths and weaknesses of the segment, how packages break down by destination, duration and cost, innovations of relevance, consumer trends and the future prospects of the market.

Mintel estimates that 14.4 million package holidays will be taken in 2010, with over £9.4 billion spent on such trips (excluding transport costs). Package holidays’ share of the overall market continues to fall, however, now at 36% from 43% in 2005.

This report examines package holidays, considering who takes such trips, what they look for from these holidays and why, the strengths and weaknesses of the segment, how packages break down by destination, duration and cost, innovations of relevance, consumer trends and the future prospects of the market.

Mintel estimates that 14.4 million package holidays will be taken in 2010, with over £9.4 billion spent on such trips (excluding transport costs). Package holidays’ share of the overall market continues to fall, however, now at 36% from 43% in 2005.

Package holidaymakers are most likely third-agers or in families with children aged five-plus. Socio-economically, C2s and ABs are the key groups, while geographically Southerners are less likely than Northerners/people living in Wales to opt for a package trip.

There has been a clear shift in popular package holiday destinations, away from Europe (although this is still the most popular region) and into long-haul locations (excluding North America). Although Spain, France and Italy remained the top three in 2009, Turkey was the fourth most popular package destination, with Egypt sixth.

In line with overall holiday trends, beach/resort trips are declining, however they are still (by far) the most popular type of package holiday at over two in five such breaks. This marks a significant difference from independent holidaymakers, where just over one in five adults opt for a beach trip.

The fact that package holidays are easier and save time is their key selling point in the eyes of consumers and agreement with this opinion has risen throughout the recession.

Late booking rose as the recession bit – under two week lead-ins were more likely in 2009 than at any point since 2006. Similarly, one-month prior package bookings were more likely than any point since 2005.