The Future of the European Package Holiday - Europe - May 2009

INTRODUCTION
 SCOPE OF THE REPORT
DATA SOURCES
OVERVIEW
 A BRIEF TIMELINE OF THE PACKAGE HOLIDAY
 WHAT IS A PACKAGE HOLIDAY?
 COMPETING METHODOLOGIES OF ARRANGING HOLIDAYS
 DYNAMIC PACKAGING
 FIT AND GIT
STATUS OF THE EUROPEAN PACKAGE HOLIDAY
 THE EUROPEAN TOURISM MARKET
The European market in a global context
Europe’s tourism economy
Figure 1: Travel and tourism indicators for the European Union 2003-08, and forecast to 2018
Figure 2: Travel and tourism indicators for Central & Eastern Europe 2003-08, and forecast to 2018
Figure 3: Travel and tourism indicators for other Western European countries 2003-08, and forecast to 2018
Figure 4: Travel and tourism indicators for total Europe 2003-08, and forecast to 2018
European tourism arrivals
Figure 5: Europe's international arrivals and tourism receipts, 2001-07
Figure 6: Growth in arrivals and bednights per annum by chief issuing markets in Europe, 2007-08
Figure 7: Growth of total European foreign arrivals and bed nights per annum, 1998-2008
 THE EUROPEAN PACKAGE HOLIDAY MARKET
 UK
Figure 8: Number of visits to the UK by overseas residents, by area of residence and purpose of visit, 2005-07, Q1-Q3/2008
Figure 9: Number of visits abroad, by UK residents, by destination and purpose of visit, 2005-07, Q1-Q3/2008
 SPAIN
Figure 10: Inbound arrivals and inter-annual % variation inbound arrivals to Spain, 2001-07
Figure 11: UK arrivals to Spain, 2000-07
Figure 12: UK tourists, by form of organisation of trip, 2003-07
Figure 13: Tourists from Germany and Nordic countries, by form of organisation of trip, 2003-07
Figure 14: Non-package arrivals to Spain and year-on-year % variation, 2003-07
European package tourism destination trends
Figure 15: Co-operative Travel’s top destinations for late market, summer 2008
Figure 16: Popular destinations ranked, by number of UK tourist arrivals, 2005-07, Q1-3/2008
Interview with Irfan Onal, director, Turkish Culture & Tourism Office, UK
KEY FACTORS AFFECTING PACKAGE HOLIDAYS
 CONSUMER PRIORITISING OF HOLIDAYS
Figure 17: UK spending priorities, 2007
Figure 18: UK market size trends as indicated, by sales and expenditure for selected activities, 2003-07
Figure 19: UK overseas inclusive holidays versus independent holidays by volume, 2003-13
 CONSUMER PROTECTION
ATOL
Trust fund system
Travellers’ choices: Insurance, deposits and credit cards
 EMERGING TOUR OPERATOR STRATEGIES
Company mergers
Reshaping the customers’ face-to-face experience
The high street travel shop
Customer representatives
Reshaping the traditional package holiday
Medium- and long-haul
Trend shifts in accommodation and resorts
Interview with Tim Williamson, customer director, TUI Travel, UK and Ireland
 LOW-COST CARRIERS
Figure 20: European low-cost carriers, ELFAA members, capacity, destinations and routes, 2005
Figure 21: Major European low-cost carriers, their capacity, destinations and routes, 2007
Figure 22: Major European low-cost carriers, ELFAA members, capacity, destinations and routes, 2008
Second-home ownership
 FINANCIAL FACTORS
Currency exchange rates
Volatile aviation fuel prices
Figure 23: IATA weekly jet fuel price, 25 April 2008
Figure 24: IATA weekly jet fuel price, 27 February 2009
 THE INTERNET
Figure 25: International land and air tourists to Spain according to Internet use in relation to trip, 2006-07
WHAT NEXT?
A stable UK and European package market
ATOL protection for dynamic packaging
Convergence of LCC and tour-operator business models
Holiday strategies during the credit downturn and after
LCCs reaching out to middle-distance destinations
Second home ownership post credit crunch
Short reprieve versus package permanence?
Figure 26: A ledger of winners and losers in European package tourism, 2009