The category of visiting friends and relatives (VFR) travel belongs to the United Kingdom Tourism Survey (UKTS) standard definition of tourism. The category has been neglected as a subject for analysis as a result of the low yields traditionally associated with VFR travel. However, the rapid growth in this sector over the last decade challenges this notion.

This report primarily defines the key elements of VFR travel. Through detailed analysis of the International Passenger Survey (IPS), it will establish the key trends in both inbound and outbound VFR travel. It offers an overview of the dynamics of consumer behaviour, which are shaping demand, as well as an examination of the market factors which will determine the future of the sector. Mintel has also included topline statistics of the domestic VFR market.

Other Mintel reports of relevance include:

-	Special Report, Holidays - Destination Marketing, 2000
-	Special Interest Holidays, Leisure Intelligence, December 2000
-	The Gay Holiday Market, Leisure Intelligence, November 2000
-	Youth Holidays, Leisure Intelligence, October 2000
-	Holidays by Lifestage, Leisure Intelligence, September 2000
-	Late Holiday Bookings, Leisure Intelligence, August 2000
-	Early Holiday Bookings, Leisure Intelligence, July 2000
-	Holidays on the Internet, Leisure Intelligence, June 2000
-	Inclusive Tours, Leisure Intelligence, May 2000
-	Short Breaks in the UK, Leisure Intelligence, May 2000
-	Independent Travel, Leisure Intelligence, April 2000
-	Post-family Leisure Trends, Leisure Intelligence, April 2000
-	British on Holiday at Home, Leisure Intelligence, March 2000
-	Family Leisure Trends, Leisure Intelligence, March 2000
-	Hotels, Leisure Intelligence, February 2000
-	Airport Retailing, Retail Intelligence, January 2000
-	Christmas Shopping Habits, Retail Intelligence, January 2000
-	Pre-family Leisure Trends, Leisure Intelligence, January 2000
-	Tourism and the Over 45s, Leisure Intelligence, September 1999
-	Special Report, Ethnic Lifestyles, 1999
-	Special Report, Holidays - Marketing the Travel Business, 1999
-	Special Report, Student Lifestyles, 1999

and the forthcoming:

-	Coach Holidays, Leisure Intelligence, January 2001
-	Student Travel, Leisure Intelligence, January 2001
-	No-frills/Low-cost Airlines, Leisure Intelligence, February 2001
-	Long-Haul, Leisure Intelligence, March 2001.

Definitions

The standard definitions used in the terminology of this report (and the Leisure Intelligence series) are as follows:

-	a holiday is a subjectively-defined form of tourism, as defined by the tourist in response to surveys such as IPS or BNTS. A holiday can be distinguished from other leisure travel such as visits to friends and relatives (VFR) or shopping trips.
-	tourism is any travel which involves an overnight stay away from home.
-	domestic tourism refers to holidays taken within the UK. A distinction is made between holidays and VFR for leisure trips. This distinction is most applicable when considering accommodation used. Accommodation with friend or relatives is still assessed as a holiday.
-	a long holiday is a holiday of four nights or more away from home; a short break is a holiday which involves 1-3 nights away from home.
-	short-haul refers to air holidays within Europe, dominated by flights to Mediterranean resorts but including the Canary Islands, which are treated as a part of the Spanish market. Long-haul, therefore, refers to holidays outside Europe.
-	an inclusive tour, or package holiday, is defined as the simultaneous sale of at least two elements of a holiday to the traveller: fares on public transport (eg flights) and commercial accommodation (eg hotel or self-catering apartment). Other elements, such as meals or excursions, are not essential to the definition of an inclusive tour. The term 'all-inclusive' is used to describe a special type of resort holiday in which food, drink, excursions and other services are provided as part of the total holiday cost.
-	an independent holiday is one in which the traveller organises and books transport and accommodation from separate sources (eg a Channel ferry crossing and a caravan site in France). Seat- or flight-only is a type of independent holiday, and the terms are used to denote holidays in which travellers only purchase a return fare and thereafter book their own accommodation, car hire etc.

Methodology and Data Sources

It is important to stress that Mintel uses the governmental International Passenger Survey (IPS) as the basis of its tourism statistics, whereas the travel trade - and particularly multiple travel agents and major tour operators - tends to rely on private sources, such as Stats MR's Holiday Booking Audit. IPS data provide a comprehensive view of outbound travel. The figures to particular destinations are invariably much higher than those produced by commercial surveys which tend to concentrate on holiday packages sold through travel agents, whereas the IPS covers all purposes and modes of travel and holiday arrangement.

The IPS involves face-to-face interviews with travellers leaving or entering the UK at all major airports and seaports. Over 200,000 interviews are conducted annually, providing data on destinations, expenditure, purpose of visit, mode of travel and numerous other variables.

Weighted and extrapolated data from the IPS are published regularly by the Office for National Statistics (ONS). However, this report includes detailed demographic data supplied exclusively to Mintel by IRN Travelstat, an agent for government and trade association statistics.

Mintel regularly commissions BMRB International to conduct survey research into the patterns of holidays taken by the British, whether at home (in the UK) or abroad. In this report, the Consumer section includes findings from recent Mintel surveys into holiday behaviour, although the core data come from BMRB's Target Group Index, an annual survey of 25,000 adults.

Values throughout this report are at retail selling prices unless otherwise stated.

Abbreviations

ABTA	Association of British Travel Agents
AITO	Association of Independent Tour Operators
ATOL	Air Travel Organisers' Licence
B&B	Bed and breakfast accommodation
BAA	British Airports Authority
BMRB	British Market Research Bureau
BNTS	British National Travel Survey
BTA	British Tourist Authority
CAA	Civil Aviation Authority
ERM	Exchange Rate Mechanism
FTO	Federation of Tour Operators
IATA	International Air Transport Association
IPS	International Passenger Survey
IRN	Information Research Network (Travelstat)
LSE	London Stock Exchange
MAT	Moving Annual Total
MMC	Monopolies and Mergers Commission
OAP	Old age pensioner
OFT	Office of Fair Trading
ONS	Office for National Statistics
PDI	Personal disposable income
RoI	Republic of Ireland
rsp	retail selling price
SPSS	Statistical Package for the Social Sciences
TGI	Target Group Index. For further details concerning this information, including data regarding readership patterns of users/purchasers and details of brands, please contact Peter Shreeve at BMRB International on 020 8566 5000.
UKTS	United Kingdom Tourism Survey
VFR	Visiting friends and relatives
WTO	World Tourism Organization

12/2000