Abstract
Despite difficult market conditions brought about by geo-political problems and continued acts of terrorism, the holiday market continues to grow apace as ‘the holiday’ is considered a necessary spend amongst the British. However, not all sectors are flourishing, and the outbound market is showing the strongest growth as the domestic market diminishes.
This report addresses the growth of multiple trips and the rising propensity to take holidays as well as the needs of more adventurous British holidaymakers who is seeking new destinations and a greater variety of holiday activities. As the package market wanes, is there any hope for a resurrection and can the high street travel agent really compete with the Internet?
Table of Contents
- Issues in the Market
- Main issues
- Definitions
- Abbreviations
- Market In Brief
- More holidaymakers and more frequent shorter holidays
- Holiday spend also on the up
- Holiday growth driven by independent sector
- Aviation soars despite green pressures and extra costs
- Long-haul and Eastern Europe prosper
- Travel groups adapting to market changes
- Travel agents struggling to keep up
- More variety and long-haul growth
- Figure 1: The total holiday market by volume, 2002-12
- Internal Market Environment
- Key points:
- A move towards greener travel?
- Air passenger duty hike
- Carbon offsetting
- Rising costs of travel: fuel supplements
- More holidaymakers and more trips
- Figure 2: Percentage of adults booking UK and overseas holidays, 2002-06
- Internet penetration
- Figure 3: Internet penetration, by gender, socio-economic group and age, 2002-06
- Broader Market Environment
- Key points:
- Income and inflation
- Figure 4: Trends in personal disposable income and consumer expenditure, 2002-11
- UK retailing in figures
- Figure 5: UK: Retail sales, 2001-06
- Holidays are a must
- Figure 6: UK spending priorities, January 2007
- Rise of ABC1s
- Figure 7: Forecast adult population trends, by socio-economic group, 2002-11
- Third age: a third of the market
- Figure 8: Forecast adult population trends, by lifestage, 2002-11
- Competitive Context
- Key points:
- Figure 9: UK: Retail sales, by broad sector, 2002-05
- Strengths and Weaknesses in the Market
- Strengths
- Weaknesses
- Market Size and Forecast
- Key points:
- Rising holiday volume driven by outbound market
- Figure 10: Domestic and overseas holidays volume, 2002-12
- Holiday expenditure
- Figure 11: Domestic and overseas holidays expenditure, 2002-12
- Figure 12: Domestic and overseas holidays average spend per trip, 2002-12
- Segment Performance for Overseas Holidays
- Key points:
- And the winner is independent holidays
- Figure 13: Inclusive holidays versus independent holidays, by volume, 2002-06
- People spend less on independent holidays
- Figure 14: Inclusive holidays versus independent holiday -- duration, spending and volume, 2005
- Long-haul and Eastern Europe experiencing major growth
- Figure 15: Outbound holiday visits, by region visited, 2002-06
- Viva Espana, Forza Italia!
- Figure 16: Top 20 destinations, by number of visits, 2002-05
- Figure 17: Number of visits, nights and spending, by purpose and by country of visit, 2005
- Transport
- Figure 18: Number of visits and spending, by mode of travel and by region and purpose of visit, 2005
- Departure airports
- Figure 19: Passenger movements (scheduled and chartered) at UK airports, 2002-05
- Seasonality
- Figure 20: Seasonality of holiday visits, by quarter, 2005
- Figure 21: Number of holiday visits and spending, by quarter and region, 2005
- ATOL Market Share
- Falling number of air passengers protected by ATOL
- Top ten ATOL holders
- Figure 22: ATOL passengers carried by the top ten travel companies, 12 months to March 2002-06
- Top ten travel groups by ATOLs
- Figure 23: Passengers licensed to top ten groups and companies, 2004/05 and 2005/06
- Companies and Products
- Key points:
- TUI UK
- 2006 in brief
- Restructuring: job cuts
- Focus on modular travel
- Performance and prospects
- Thomas Cook Group
- 2006 in brief
- Cruise focus
- Family focus
- Repositioning mass-market and scheduled offering
- Web initiatives
- Performance and prospects
- First Choice Holidays plc
- 2006 in brief
- Niche value
- Online business
- Driving the green debate
- Prospects for 2007
- MyTravel Group plc
- 2006 in brief
- Cruise prospects
- Prospects for 2007
- XL Leisure Group
- 2006 in brief
- New direct sales division
- Prospects for 2007
- Expedia
- 2006 in brief
- Developments
- Prospects for 2007
- Cosmos
- From Kent to Norfolk
- Environmental push
- Prospects for 2007
- Travelport
- 2006 in brief
- Developments
- Prospects for 2007
- Gold Medal Travel
- Developments
- Prospects for 2007
- Sabre Holdings Corporation Group
- 2006 in brief
- Technological developments
- Going green
- Prospects for 2007
- Distribution
- Key points:
- Domestic DIY
- Figure 24: How last UK holiday was booked, 2002-06
- Figure 25: Booking method for last UK holiday, 2003-06
- Travel agents dominate overseas holiday bookings by a whisker
- Figure 26: How last holiday abroad was booked, 2002-06
- Figure 27: Method used to book last holiday abroad, 2003-06
- Figure 28: How last holiday abroad was booked, by booking method, 2006
- Internet dominates holiday research methods
- Figure 29: Sources used to get information on last holiday, 2003-06
- More closures on the high street
- Figure 30: Leading travel agents, by number of outlets, 2001-07
- Changes...on paper at least
- The Consumer: Holidays Taken -- Domestic and Abroad
- Key points:
- Holidays taken in the last year
- Figure 31: Holidays taken in the last 12 months, 2004-06
- Figure 32: Holiday essentials, 2002-06
- The Consumer -- Holidays Abroad
- Key points:
- Multiple holidays increasing...
- Figure 33: Number of holidays taken, 2002-06
- ...but average length diminishing
- Figure 34: Length of last holiday abroad, 2002-06
- Beach holidays take a nose dive
- Figure 35: Type of holiday taken for last holiday abroad, 2002-06
- Transport
- Figure 36: Main method of travel used for last holiday abroad, 2002-06
- Accommodation
- Figure 37: Type of accommodation for last holiday abroad, 2002-06
- Figure 38: Timing of last overseas holiday booking, 2002-06

