Abstract
The traditional package holiday has been under intense pressure in recent years from the seemingly inexorable rise of independent travel. However, since 2005, inclusive tour volume has stabilised at around 19 million annual trips, and volume levels are still 3.5 million higher than a decade ago. The industry is proving resilient and the package holiday remains a core part of British culture.
As the well dries up in the western Med - certainly in terms of volume growth - tour operators are seeking opportunities for diversification into mid-haul and long haul destinations, more upmarket products, specialist holidays and more flexible formats.
This report provides an overview of the market for independent and package holidays abroad, investigating the core market factors, strengths and weaknesses, consumer dynamics, and likely future trends.
Main report themes:
- What are the likely implications of economic slowdown, rising oil prices and currency rate trends?
- Which destinations are rising, which falling and which are the ones to watch?
- What are the ramifications of recent industry consolidation? In which direction are the main tour operators heading?
- What are the important emotional factors for today' s package and independent holidaymakers? What are the demographic characteristics of these factors, and how can the industry adapt to these needs?
- What are the main consumer attitudes towards both package and independent holidays?
- How can package holidays capture the "independent travel spirit?"
Table of Contents
- Issues in the Market
- Main issues
- Definitions
- Abbreviations
- Market in Brief
- The package is dead...long live the package
- Spain goes south
- Walk like an Egyptian
- Bored with the US
- Premium package
- Children of the revolution
- Time saving device
- Internal Market Environment
- Key points
- Don' t mention the R-word
- Figure 1: Domestic vs overseas holidays, 2003-13
- The ABC1 holiday pound
- Figure 2: Domestic and overseas holidays expenditure, 2003-13
- Air travel: Expanding options
- Charter decline
- Figure 3: International air passenger traffic to and from UK airports,
2003-07
- Figure 4: Rolling annual passenger growth on different types of
operation, all UK airports, 2005-07
- Sleeping with the enemy
- Figure 5: Scheduled passengers carried by main low-cost airlines, 2003-07
- Unprotected holidaymakers
- New bonding arrangements
- Broader Market Environment
- Key points
- Things can only get better
- Figure 6: GfK NOP Consumer Confidence Index, July 2007-June 2008
- Figure 7: Trends in personal disposable income and consumer expenditure,
2003-13
- Travel midwifery
- Figure 8: Forecast adult population trends, by lifestage, 2003-13
- Demographic tilt
- Figure 9: Forecast adult population trends, by socio-economic group,
2003-13
- Oil on troubled waters
- Figure 10: Crude oil prices, 2003-08
- Euro gloom
- Figure 11: Sterling exchange rates at the beginning of each year, 2005-08
- Smart thinking
- Competitive Context
- Key points
- Leisure pound
- Figure 12: Market size trends 2003-07, for selected activities, 2003-07
- Who needs shoes, let' s go on holiday
- Figure 13: UK spending priorities for year ahead, January 2005-08
- Strengths and Weaknesses in the Market
- Strengths
- Weaknesses
- Market Size and Forecast
- Key points
- No crisis, but slowdown
- Figure 14: Inclusive holidays versus independent holidays, by volume,
2003-08
- New mantra
- Big spenders
- Figure 15: Inclusive holidays versus independent holidays, by value,
2003-08
- Package holiday spending
- Figure 16: Package holiday expenditure, 2003-08
- Figure 17: Average length of holiday, spend per visit & per day on an
inclusive tours, 2003-07
- Future: Re-birth of the package
- Factors used in the forecast
- Segment Performance
- Key points
- Changing direction
- Figure 18: Overseas holidays by region, 2003-07
- Spain slumps, Greece holds steady, Turkey rises
- Figure 19: Top 10 Inclusive holiday short-haul destinations by number of
visits, 2003-07
- North African growth
- Figure 20: Top 10 Inclusive holiday long haul destinations by number of
visits, 2003-07
- "Chindia" is on the up
- Decline of the package fortnight
- Figure 21: Overseas holidays by duration, 2003-07
- Mega-short breaks
- Figure 22: Overseas package holidays by duration, 2003-07
- AI vs authenticity
- Figure 23: Package holiday accommodation, 2003-07
- Beached out
- Figure 24: Package holiday types, 2003-07
- Figure 25: Independent holiday types, 2003-07
- Distribution
- Key points
- Web research threat
- Figure 26: Package holiday research sources, 2003-07
- Figure 27: Independent holiday research sources, 2003-07
- Shop still top of the package pops
- Figure 28: Package holiday booking methods, 2003-07
- Figure 29: Independent holiday booking methods, 2003-07
- Figure 30: Method of booking used for last package holiday abroad,
2004-07
- Figure 31: Method of booking used for last Independent holiday abroad,
2004-07
- Companies and Products
- Key points
- Supply structure
- Figure 32: Top 20 UK tour operator market share, by licensed passengers
2007
- Cosmos group
- Expedia
- Gold Medal Travel
- Kosmar Villa Holidays
- Kuoni
- Olympic Holidays
- Saga Holidays
- Thomas Cook Group
- TUI Travel Group
- XL Leisure Group
- Type of Holiday Taken
- Key points
- Figure 33: Holidays taken in the past 12 months, June 2008
- Important Factors When Choosing a Holiday
- Key points
- Figure 34: Important factors on holiday, June 2008
- The new travel landscape
- Demographic analysis of important holiday factors
- Food crosses boundaries
- Pastures new
- Sun, sea, sand
- Down with the kids
- Cheap and cheerful
- Good sports
- Age concern
- Appendix -- Type of Holiday Taken
- Figure 41: Independent holidays taken in past 12 months, by
demographics, June 2008
- Figure 42: Package holidays taken in past 12 months, by demographics,
June 2008
- Appendix -- Important Factors when Choosing a Holiday
- Figure 43: Most important factors on holiday, by demographics, June 2008
- Figure 44: Other important factors on holiday, by demographics, June 2008
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