Sorry for interrupting, this website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Learn more
Accept & Close

Holiday Review - UK - January 2014

“Demand for financial protection against unforeseen circumstances has been a key driver behind in-store sales, so reforms that grant similar protection to dynamic online bundles will likely accelerate the shift to online. PTD (Package Travel Directive) reform should also see the long-term shift towards independent bookings resume, a trend that has been reversed slightly during the recession as cash-strapped holidaymakers turned to packaged all-inclusive products to control their spending.”

– Harry Segal, Research Analyst

Some questions answered in this report include:

  • How can brands leverage consumer aversion to debt?
  • How will PTD reform impact the outbound holiday market?
  • How will economic recovery affect the all-inclusive market?
  • What can brands to do encourage early bookings?

As the UK enters a period of sustained economic recovery, the overseas holiday market is set to return to stable year-on-year growth and growth in the domestic market is set to slow significantly. The industry is entering largely uncharted waters, as the airline industry has seen the launch of aggressively priced transatlantic hand luggage-only fares, and a convergence between low-cost and full-service carriers in Europe. Reforms to the Package Travel Directive are also set to shake things up as financial protection is extended to dynamic bundles and click-through products purchased through airlines.

This report examines the holidays of UK residents, both domestic and overseas, and forecasts what the market will look like over the next five years. It explores the challenges and opportunities that operators will face in 2014 and investigates the core drivers behind changes in the market. The report also looks at booking lead times, expenditure on holidays and consumer attitudes towards paying for a holiday. This subject was last explored in Mintel’s Holiday Review – UK, January 2013.

This report examines the holiday habits and attitudes of British adults. ‘Holidays’ can take place in the UK or abroad, but must constitute at least one overnight stay.

The business travel market is not reviewed in this report. An adult, for the purposes of Mintel’s research, is anyone aged 16 or over.

What you get

What's included

Why buy from us?

Succeed

Our reports will provide you with market data, consumer research and competitive intelligence to succeed in your market.

Instant Access

Buy now and you'll have instant access to the information you need to make the right decisions.

Opportunities

Find out what's next in the markets that matter to you: where opportunities lie and what challenges you will face.

Trusted

A business Superbrand, Mintel is a source you can trust. We have been defining and refining the Market Intelligence mix since 1972.

Table of contents

  1. Introduction

      • Definition
        • Abbreviations
        • Executive Summary

            • The market
              • UK consumers set to take over 100 million holidays by 2017
                • Figure 1: Estimated total holiday market volume, 2008-18
              • Overseas market has failed to recover to 2008 levels
                • Figure 2: Estimated overseas market volume, 2008-18
              • Domestic market still growing, but staycation boom is over
                • Figure 3: Estimated domestic market volume, 2008-18
              • Market factors
                • The line between full-service and low-cost airlines has been blurred
                  • Draft PTD revision grants extra financial protection to dynamic packages
                    • Pound strengthens against key outbound markets
                      • Tourist expenditure begins catch up with total expenditure
                        • High jet fuel prices and APD increases continue to dampen air travel
                          • The market has been spared any high-profile failures
                            • EC gives green light to in-flight calls and mobile broadband
                              • UK operators to scrap roaming charges by 2016
                                • Companies, brands and innovation
                                  • easyJet and BA dominate with a combined market share of 66%
                                    • Jet2holidays doubles capacity for the second year in a row
                                      • The consumer
                                        • Penetration of holidays is high, even among those struggling financially
                                          • Figure 4: Holidays taken in the last 12 months, November 2013
                                        • Three quarters of holidays are over three nights in length
                                          • Figure 5: Length of last holiday taken, November 2013
                                        • 58% of holidaymakers booked their last holiday independently
                                          • Figure 6: Booking method for last holiday taken, November 2013
                                        • Family and beach holidays are the most popular holiday types
                                          • Figure 7: Last holiday type, November 2013
                                        • Over half of holidaymakers book less than two months in advance
                                          • Figure 8: Booking lead time for last holiday taken, November 2013
                                        • A third spent over £1,000 on their last holiday
                                          • Figure 9: Amount spent on last holiday taken, November 2013
                                        • Four in 10 averse to holiday-related debt
                                          • Figure 10: Attitudes towards paying for a holiday, by holidays taken in the last 12 months, November 2013
                                        • What we think
                                        • Issues in the Market

                                            • How can brands leverage consumer aversion to debt?
                                              • How will PTD reform impact the outbound holiday market?
                                                • How will economic recovery affect the all-inclusive market?
                                                  • What can brands to do encourage early bookings?
                                                  • Trend Application

                                                      • Moral Brands
                                                        • Let's Make a Deal
                                                          • Mintel Futures: Generation Next
                                                          • Market Drivers

                                                            • Key points
                                                              • The line between full-service and low-cost airlines has been blurred
                                                                • Draft PTD revision grants extra financial protection to dynamic packages
                                                                  • ATOL regime threatened as Lowcost Travel Group relocates to Spain
                                                                    • Pound strengthens against key outbound markets
                                                                      • Figure 11: Average monthly midpoint exchange rates for GBP against key currencies, by % change, 2009-13
                                                                    • Tourist expenditure begins catch up with total expenditure
                                                                      • Figure 12: Seasonally adjusted UK tourist expenditure abroad vs. total household final consumption expenditure, 2003-13
                                                                    • High jet fuel prices and APD increases continue to dampen air travel
                                                                      • Figure 13: Index of jet fuel prices, Pound Sterling per gallon, January 2010-September 2013
                                                                    • Market has spared high-profile failures
                                                                      • Figure 14: ATOL tour operator failures/closures in the UK, October 2012-November 2013
                                                                    • EC gives green light to in-flight calls and mobile broadband
                                                                      • UK operators to scrap roaming charges by 2016
                                                                      • Who’s Innovating?

                                                                        • Key points
                                                                          • Momondo launches Flight Insight
                                                                            • Cheaper flights if All Blacks thrash England
                                                                              • British Airways’ billboards interact with their planes
                                                                                • Gate-to-gate Wi-Fi for passengers
                                                                                  • Loco2.com incorporates pan-European train travel into a single booking
                                                                                    • The electronic bag-tag
                                                                                    • Market Size and Forecast

                                                                                      • Key points
                                                                                        • UK consumers set to take over 100 million holidays by 2017
                                                                                          • Figure 15: Estimated total holiday market volume and value, 2008-18
                                                                                          • Figure 16: Estimated total holiday market volume, 2008-18
                                                                                          • Figure 17: Estimated total holiday market value, 2008-18
                                                                                        • Overseas market has failed to recover to 2008 levels
                                                                                          • Figure 18: Estimated overseas market volume and value, 2008-18
                                                                                          • Figure 19: Estimated overseas market volume, 2008-18
                                                                                          • Figure 20: Estimated overseas market value, 2008-18
                                                                                        • Domestic market still growing, but staycation boom is over
                                                                                          • Figure 21: Estimated domestic market volume and value, 2008-18
                                                                                          • Figure 22: Estimated domestic market volume, 2008-18
                                                                                          • Figure 23: Estimated domestic market value, 2008-18
                                                                                        • Forecast methodology
                                                                                        • Segment Performance

                                                                                          • Key points
                                                                                            • Overseas package segment has performed well
                                                                                              • Figure 24: Volume overseas holidays, independent vs non-independent, 2009-13
                                                                                            • Long-haul segment failed to recover in 2013
                                                                                              • Figure 25: Volume of overseas holidays, long-haul vs short-haul, 2009-13
                                                                                            • Tunnel segment bucks downward trend and outperforms air and sea
                                                                                              • Figure 26: Volume of overseas holidays, by transport method, 2009-13
                                                                                            • Italy overtakes US and Greece as third most visited country
                                                                                              • Figure 27: Top 10 overseas holiday destinations, by volume, 2012 and 2013
                                                                                            • Spain attracts 250,000 extra holidaymakers
                                                                                              • Figure 28: Best- and worst-performing overseas holiday destinations, by volume change, 2012 and 2013
                                                                                          • Market Share

                                                                                            • Key points
                                                                                              • easyJet and BA dominate with a combined market share of 66%
                                                                                                • Figure 29: Passengers uplifted, by top 10 UK airlines, 2012 and 2013
                                                                                              • Jet2holidays doubles capacity for the second year in a row
                                                                                                • Figure 30: Passengers licensed under ATOL protection, by top 10 ATOL holders, 2011-13
                                                                                            • The Consumer – Holidays Taken in the Last Year

                                                                                              • Key points
                                                                                                • Penetration of holidays is high, even among those struggling financially
                                                                                                  • Figure 31: Holidays taken in the last 12 months, November 2013
                                                                                              • The Consumer – Length of Holiday

                                                                                                • Key points
                                                                                                  • Three quarters of holidays are over three nights in length
                                                                                                    • Figure 32: Length of last holiday taken, November 2013
                                                                                                  • Seven-night commodity breaks have a 28% share of the European market
                                                                                                    • Figure 33: Length of last holiday taken, by last holidays taken in the last 12 months, November 2013
                                                                                                • The Consumer – Holiday Booking Method

                                                                                                  • Key points
                                                                                                    • Independent holidays dominate
                                                                                                      • Figure 34: Booking method for last holiday taken, November 2013
                                                                                                    • A third of European holidays are all-inclusive
                                                                                                      • Figure 35: Booking method for last holiday taken, by last holidays taken in the last 12 months, November 2013
                                                                                                  • The Consumer – Holiday Type

                                                                                                    • Key points
                                                                                                      • Family and beach holidays are the most popular holiday types
                                                                                                        • Figure 36: Last holiday type, November 2013
                                                                                                      • 41% of holidays to Europe beach holidays
                                                                                                        • Figure 37: Top five last holiday types, by last holidays taken in the last 12 months, November 2013
                                                                                                      • Independent bookings dominate all holiday types bar beach breaks
                                                                                                        • Figure 38: Booking method for last holiday taken, by top five last holiday types, November 2013
                                                                                                      • City breaks most likely to be short
                                                                                                        • Figure 39: Length of last holiday taken, by top five last holiday types, November 2013
                                                                                                    • The Consumer – Booking Lead Time

                                                                                                      • Key points
                                                                                                        • Over half book less than two months in advance
                                                                                                          • Figure 40: Booking lead time for last holiday taken, November 2013
                                                                                                        • A quarter of holidays to Europe booked within a month of travel
                                                                                                          • Figure 41: Booking lead time for last holiday taken, by last holiday taken in the last 12 months, November 2013
                                                                                                        • Over half of short breaks booked within a month of travel
                                                                                                          • Figure 42: Booking lead time for last holiday taken, by length of last holiday taken, November 2013
                                                                                                        • Little correlation between lead time and booking method
                                                                                                          • Figure 43: Booking lead time for last holiday taken, by booking method for last holiday taken, November 2013
                                                                                                      • The Consumer – Expenditure on Holiday

                                                                                                        • Key points
                                                                                                          • A third of holidaymakers spent over £1,000
                                                                                                            • Figure 44: Amount spent on last holiday taken, November 2013
                                                                                                          • Over half of domestic holidaymakers spent under £500
                                                                                                            • Figure 45: Amount spent on last holiday taken, by last holiday taken in the last 12 months, November 2013
                                                                                                          • Seven-night breaks see the broadest range of expenditure
                                                                                                            • Figure 46: Amount spent on last holiday taken, by length of last holiday taken, November 2013
                                                                                                          • Package holidaymakers twice as likely to spend over £2,000
                                                                                                            • Figure 47: Amount spent on last holiday taken, by booking method for last holiday taken, November 2013
                                                                                                        • The Consumer – Attitudes towards Paying For a Holiday

                                                                                                          • Key points
                                                                                                            • Four in 10 averse to holiday-related debt
                                                                                                              • Figure 48: Attitudes towards paying for a holiday, by holidays taken in the last 12 months, November 2013
                                                                                                            • A fifth would take an annual holiday regardless of finances
                                                                                                              • Only a third save up before booking
                                                                                                                • One in 10 incur interest when paying off credit
                                                                                                                  • Nearly a fifth of package holidaymakers take advantage of low-deposit schemes
                                                                                                                    • Figure 49: Attitudes towards paying for a holiday, by booking method for last holiday taken, November 2013
                                                                                                                  • Perceptions of good value are a key driver behind booking lead times
                                                                                                                    • Figure 50: Attitudes towards paying for a holiday, by booking lead time for last holiday taken, November 2013
                                                                                                                • Appendix – The Consumer – Holidays Taken in the Last Year

                                                                                                                    • Figure 51: Holidays taken in the last 12 months, November 2013
                                                                                                                    • Figure 52: Holidays taken in the last 12 months, by demographics, November 2013
                                                                                                                    • Figure 53: Last holiday taken, by demographics, November 2013
                                                                                                                • Appendix – The Consumer – Length of Holiday

                                                                                                                    • Figure 54: Length of last holiday taken, November 2013
                                                                                                                    • Figure 55: Length of last holiday taken, by demographics, November 2013
                                                                                                                    • Figure 56: Length of last holiday taken, by demographics, November 2013 (continued)
                                                                                                                    • Figure 57: Length of last holiday taken, by demographics, November 2013 (continued)
                                                                                                                    • Figure 58: Length of last holiday taken, by last holiday taken, November 2013
                                                                                                                • Appendix – The Consumer – Holiday Booking Method

                                                                                                                    • Figure 59: Booking method for last holiday taken, November 2013
                                                                                                                    • Figure 60: Booking method for last holiday taken, by last holiday taken, November 2013
                                                                                                                    • Figure 61: Length of last holiday taken, by booking method for last holiday taken, November 2013
                                                                                                                    • Figure 62: Length of last holiday taken, by booking method for last holiday taken, November 2013 (continued)
                                                                                                                    • Figure 63: Booking method for last holiday taken, by demographics, November 2013
                                                                                                                    • Figure 64: Booking method for last holiday taken, by demographics, November 2013 (continued)
                                                                                                                • Appendix – The Consumer – Holiday Type

                                                                                                                    • Figure 65: Last holiday type, November 2013
                                                                                                                    • Figure 66: Last holiday type, by demographics, November 2013
                                                                                                                    • Figure 67: Last holiday type, by demographics, November 2013 (continued)
                                                                                                                    • Figure 68: Last holiday type, by last holiday taken, November 2013
                                                                                                                    • Figure 69: Booking method for last holiday taken, by last holiday type, November 2013
                                                                                                                    • Figure 70: Length of last holiday taken, by last holiday type, November 2013
                                                                                                                • Appendix – The Consumer – Booking Lead Time

                                                                                                                    • Figure 71: Booking lead time for last holiday taken, November 2013
                                                                                                                    • Figure 72: Booking lead time for last holiday taken, by demographics, November 2013
                                                                                                                    • Figure 73: Booking lead time for last holiday taken, by demographics, November 2013 (continued)
                                                                                                                    • Figure 74: Booking lead time for last holiday taken, by last holiday taken, November 2013
                                                                                                                    • Figure 75: Booking lead time for last holiday taken, by length of last holiday taken, November 2013
                                                                                                                    • Figure 76: Booking lead time for last holiday taken, by length of last holiday taken, November 2013 (continued)
                                                                                                                    • Figure 77: Booking lead time for last holiday taken, by booking method for last holiday taken, November 2013
                                                                                                                    • Figure 78: Booking lead time for last holiday taken, by booking method for last holiday taken, November 2013 (continued)
                                                                                                                    • Figure 79: Booking lead time for last holiday taken, by last holiday type, November 2013
                                                                                                                • Appendix – The Consumer – Expenditure on Holiday

                                                                                                                    • Figure 80: Amount spent on last holiday taken, November 2013
                                                                                                                    • Figure 81: Amount spent on last holiday taken, by demographics, November 2013
                                                                                                                    • Figure 82: Amount spent on last holiday taken, by demographics, November 2013 (continued)
                                                                                                                    • Figure 83: Amount spent on last holiday taken, by last holiday taken, November 2013
                                                                                                                    • Figure 84: Amount spent on last holiday taken, by length of last holiday taken, November 2013
                                                                                                                    • Figure 85: Amount spent on last holiday taken, by length of last holiday taken, November 2013 (continued)
                                                                                                                    • Figure 86: Amount spent on last holiday taken, by booking method for last holiday taken, November 2013
                                                                                                                    • Figure 87: Amount spent on last holiday taken, by booking method for last holiday taken, November 2013 (continued)
                                                                                                                    • Figure 88: Amount spent on last holiday taken, by last holiday type, November 2013
                                                                                                                    • Figure 89: Amount spent on last holiday taken, by booking lead time for last holiday taken, November 2013
                                                                                                                    • Figure 90: Amount spent on last holiday taken, by booking lead time for last holiday taken, November 2013 (continued)
                                                                                                                • Appendix – The Consumer – Attitudes towards Paying For a Holiday

                                                                                                                    • Figure 91: Attitudes towards paying for a holiday, November 2013
                                                                                                                    • Figure 92: Attitudes towards paying for a holiday, by demographics, November 2013
                                                                                                                    • Figure 93: Attitudes towards paying for a holiday, by demographics, November 2013 (continued)
                                                                                                                    • Figure 94: Attitudes towards paying for a holiday, by booking method for last holiday taken, November 2013
                                                                                                                    • Figure 95: Attitudes towards paying for a holiday, by booking method for last holiday taken, November 2013 (continued)

                                                                                                                Holiday Review - UK - January 2014

                                                                                                                US $2,648.76 (Excl.Tax)