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

Long-haul Holidays - UK - September 2017

“Budget long-haul fares are becoming economically viable for airlines. Cheap oil and new fuel-efficient planes like the Boeing 787 Dreamliner and the smaller 737 MAX are increasing margins. Consumers are also more open to a no-frills long-haul service. But long-haul destinations must compete with cheaper places locations closer to home. Market growth will depend on low-fares offered by budget long-haul carriers like Norwegian and WOW Air.”
– Fergal McGivney, Travel Analyst

This report looks at the following areas:

  • Young consumers more open to no-frills long-haul flights
  • A third of consumers are open to using Airbnb on a long-haul trip
  • Japan overtakes Cape Town as the cheapest long-haul destination

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. Overview

    • What you need to know
      • Scope of this Report
      • Executive Summary

          • The market
            • Cheap long-haul fares negating the weak Pound
              • Figure 1: Forecast volume of long-haul holidays taken by UK residents, 2012-22
              • Figure 2: Forecast value of long-haul holidays taken by UK residents, 2012-22
            • The consumer
              • A greater proportion of consumers are taking long-haul holidays
                • Figure 3: Long-haul holidays taken in the past five years, July 2016 vs July 2017
              • Stronger growth for Canada compared to the US
                • Figure 4: Long-haul holiday destinations visited in the last five years, July 2017
              • Low-cost long-haul airlines are disrupting full-service model
                  • Figure 5: Mode of transport for long-haul holidays, July 2017
                • A third feel it is worth paying extra for premium economy
                  • Figure 6: Attitudes towards long-haul holidays, July 2017
                • Cruise market doing well as older consumers remain financially confident
                  • Figure 7: Interest in long-haul holiday types, July 2017
                • Preference for long-haul vs short-haul throughout the year
                  • Figure 8: Preferences for long-haul vs short-haul holidays, July 2017
                • What we think
                • Issues and Insights

                  • Young consumers more open to no-frills long-haul flights
                    • The facts
                      • The implications
                        • A third of consumers are open to using Airbnb on a long-haul trip
                          • The facts
                            • The implications
                              • Japan overtakes Cape Town as the cheapest long-haul destination
                                • The facts
                                  • The implications
                                  • The Market – What You Need to Know

                                    • Slight slowdown in long-haul growth expected over the next few years …
                                      • … as consumers opt for short-haul destinations …
                                        • … but the growth of low-cost carriers could boost the long-haul market
                                          • 14% have booked a long-haul trip while 23% are likely to do so
                                            • Short-haul volume growth outpaces long-haul
                                              • Low-cost long-haul expansion means cheaper options for consumers
                                              • Market Size and Forecast

                                                • Cheap long-haul fares negating the weak Pound
                                                  • Figure 9: Forecast volume and value of long-haul holidays taken by UK residents, 2011-21
                                                  • Figure 10: Forecast volume of long-haul holidays taken by UK residents, 2012-22
                                                  • Figure 11: Forecast value of long-haul holidays taken by UK residents, 2012-22
                                                • Outlook for the next 12 months
                                                  • Figure 12: Future plans for long-haul holidays, July 2017
                                              • Market Segmentation

                                                • Short-haul volume growth outpaces long-haul
                                                  • Figure 13: Long-haul versus short-haul holidays, by volume, 2011-16
                                                • Low-cost long-haul air travel and Airbnb bookings could threaten long-haul bookings
                                                  • Figure 14: Independent vs. non-independent long-haul holidays, by volume, 2011-16
                                                • Cruising boom sees increase in long-haul trips by sea
                                                  • Figure 15: Long-haul holiday trips taken, by transport type, 2011-16
                                                • Destinations; some consumers may be put off visiting the US
                                                  • Thailand may introduce compulsory insurance
                                                    • Travel ban to Tunisia lifted by the FCO
                                                        • Figure 16: Long-haul holiday destinations by number of visits, 2015 vs 2016
                                                      • Canada enjoys largest growth in tourist numbers in 2016
                                                          • Figure 17: Long-haul destinations visited by UK residents, by percentage growth, 2015 vs 2016
                                                      • Market Drivers

                                                        • Weak Pound may encourage consumers to holiday closer to home
                                                          • Figure 18: US dollar and euro vs the Pound Sterling, January 2016 to August 2017
                                                          • Figure 19: Selected long-haul currencies vs the Pound Sterling, January 2016 vs August 2017
                                                        • Low-cost long-haul expansion means cheaper options for consumers
                                                          • Potential rise in the price of oil could increase fares
                                                            • Figure 20: Europe Brent Spot Price FOB (Dollars per Barrel), June 2014-June 2017
                                                          • Long-haul travel to become more expensive as APD rates set to increase
                                                              • Figure 21: APD rates in England and Wales, for tax years 2017 and 2018
                                                          • Launch Activity and Innovation

                                                            • Low cost long-haul airlines
                                                              • British Airways plans to increase capacity on its long-haul aircraft
                                                                • New non-stop long-haul routes on the horizon
                                                                  • New long-haul routes for UK consumers
                                                                    • Heathrow expansion set to increase long-haul capacity
                                                                    • The Consumer – What You Need to Know

                                                                      • A greater proportion are taking long-haul holidays
                                                                        • Stronger growth for Canada compared to the US
                                                                          • Low-cost long-haul airlines are disrupting full-service model
                                                                            • Younger consumers more open to unbundled fares and paying for extras
                                                                              • Consumers could respond well to all-inclusive deals
                                                                                • A third of consumers are open to using Airbnb on a long-haul trip
                                                                                  • Multicentre trips a good option for long-haul holidaymakers
                                                                                    • Preference for long-haul vs short-haul
                                                                                    • Long-haul Holidays Taken

                                                                                      • A greater proportion are taking long-haul holidays
                                                                                        • Figure 22: Long-haul holiday trips taken by UK residents, Q1 2016 VS Q1 2017
                                                                                        • Figure 23: Long-haul holidays taken in the past five years, July 2016 vs July 2017
                                                                                      • Who is taking more long-haul holidays?
                                                                                        • Figure 24: Long-haul holidays taken in the past five years, by age, July 2016 vs July 2017
                                                                                        • Figure 25: Long-haul holidays taken in the past five years, by region, July 2016 vs July 2017
                                                                                      • When are long-haul holidays taken?
                                                                                          • Figure 26: Long-haul holiday trips taken by UK residents, by quarter, long-haul countries visited vs all countries visited, 2016
                                                                                          • Figure 27: Long-haul holiday trips taken by UK residents, by quarter, 2014-16
                                                                                      • Reasons for Not Taking a Long-haul Holiday

                                                                                        • Expense is the main reason for not taking a long-haul holiday
                                                                                          • Older consumers prefer to stay closer to home
                                                                                            • Figure 28: Reasons for not going on a long-haul holiday, July 2017
                                                                                        • Long-haul Destinations Visited

                                                                                          • Stronger growth for Canada compared to the US
                                                                                            • Figure 29: Long-haul holiday destinations visited in the last five years, July 2017
                                                                                          • Luxury travellers are concerned about potential negative effects of Brexit
                                                                                              • Figure 30: Long-haul holiday destinations by number of visits, 2015 vs 2016
                                                                                            • Attractive long-haul holiday destinations
                                                                                              • Figure 31: Post Office Holiday Cost Barometer, cost of 8 common holiday items* in selected destinations, 2017
                                                                                              • Figure 32: Average hotel prices in selected cities, 2016
                                                                                          • Mode of Transport for Long-haul Holidays

                                                                                            • Low-cost long-haul airlines are disrupting full-service model
                                                                                                • Figure 33: Mode of transport for long-haul holidays, July 2017
                                                                                                • Figure 34: Direct connectivity outside of Europe, full-service versus low-cost carrier, 2007 and 2017
                                                                                              • Young consumers more open to budget long-haul flights
                                                                                                  • Figure 35: Mode of transport for long-haul holidays, by age, July 2017
                                                                                                • Younger consumers more open to unbundled fares and paying for extras in return for cheaper fares
                                                                                                    • Figure 36: Attitudes towards paying for onboard services, July 2017
                                                                                                    • Figure 37: Repertoire of attitudes towards paying for on-board services, by age and gender, July 2017
                                                                                                    • Figure 38: Repertoire of attitudes towards paying for on-board services, by location, July 2017
                                                                                                • Attitudes towards Long-haul Holidays

                                                                                                  • Consumer could respond well to all-inclusive deals …
                                                                                                    • … but many are expecting to be able to customise packaged products
                                                                                                      • Figure 39: Attitudes towards long-haul holidays, July 2017
                                                                                                    • A third feel it is worth paying extra for premium economy
                                                                                                      • Figure 40: Standard economy vs premium economy flight services, London to New York from 18-16 April 2018
                                                                                                    • A third of consumers are open to using Airbnb on a long-haul trip
                                                                                                    • Interest in taking Long-haul Holiday Types

                                                                                                      • Multicentre trips a good option for long-haul holidaymakers
                                                                                                        • Cruise market doing well as older consumers remain financially confident
                                                                                                          • Lack of snow could see avid skiers travel longer distances
                                                                                                            • Figure 41: Interest in long-haul holiday types, July 2017
                                                                                                        • Preference for Long-haul vs Short-haul

                                                                                                            • Figure 42: Preferences for long-haul vs short-haul holidays, July 2017
                                                                                                            • Figure 43: Preferences for long-haul vs short-haul holidays, July 2017
                                                                                                        • CHAID Analysis – Attitudes towards Long-haul Holidays II

                                                                                                          • Methodology
                                                                                                            • Parents that use charter airlines are keenest on all-inclusive deals
                                                                                                              • Figure 44: Target groups based on attitudes towards long-haul holidays – CHAID – Tree output, July 2017
                                                                                                              • Figure 45: Target groups based on attitudes towards long-haul holidays – CHAID – Table output, July 2017
                                                                                                          • Appendix – Data Sources, Abbreviations and Supporting Information

                                                                                                              • Abbreviations
                                                                                                                • Consumer research methodology
                                                                                                                • Appendix – Market Size and Forecast

                                                                                                                  • Forecast methodology
                                                                                                                      • Figure 46: Best- and worst-case forecast for long-haul volume, 2017-22
                                                                                                                      • Figure 47: Best- and worst-case forecast for long-haul value, 2017-22

                                                                                                                  Long-haul Holidays - UK - September 2017

                                                                                                                  US $2,648.76 (Excl.Tax)