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Description

Description

“COVID-19 presents travel agents with an opportunity to demonstrate their expertise and help consumers to plan and book their holiday in a more complex travel landscape. However, as many high street travel agents remain closed and consumers remain cautious about visiting indoor spaces, the quality of service offered through online channels is more important than ever before. Video will become a crucial tool, not just for holding ‘face-to-face’ meetings with customers but also for providing virtual tours of the post-COVID-19 holiday experience on flights, in accommodation and in resorts.”
- Marloes de Vries, Senior Travel Analyst – 13 July 2020

This report will look at the following areas:

  • The impact of COVID-19 on the holiday market.
  • How COVID-19 will change the way consumers’ plan and book holidays in the short-, medium- and long-term.
  • How the recovery of the domestic and overseas travel market is expected to play out over the next five years.
  • Consumers’ perceptions of seven key players in the holiday market.
  • Consumers’ typical holiday planning and booking behaviours.

What's included

What's included

Table of contents

Table of contents

  1. Overview

    • What you need to know
      • Key issues covered in this Report
        • Products covered in this Report
          • COVID-19: Market context
            • Economic and other assumptions
            • Executive Summary

                • The market
                  • The domestic holiday market will recover at a faster pace
                    • Figure 1: Forecast value of domestic holidays* taken by British residents (adjusted for COVID-19 on 13 July 2020), 2015-25
                  • Value of the overseas holiday market will recover quicker than volume
                    • Figure 2: Forecast value* of overseas holidays taken by UK residents (adjusted for COVID-19 on 13 July 2020), 2015-25
                  • Impact of COVID-19 on the holiday market
                    • Figure 3: Expected impact of COVID-19 on the UK travel market, short, medium and long-term, 13 July 2020
                  • Companies and brands
                    • TUI and Booking.com announce partnership for experiences
                      • Travelisto’s travel designers are digital nomads
                        • Market leader TUI introduces Holiday Promise
                          • Booking.com offers good value, but its mediator position poses a threat to its trustworthy image
                            • Jet2holidays again secures the highest share of users with an excellent experience
                              • Figure 4: Key metrics for selected brands, March 2020
                            • The consumer
                              • Older consumers more likely to book holidays compared to the start of lockdown
                                • Figure 5: Plans to book a holiday in the next three months, by age, February 2020 (fieldwork dates: 11-25 February), March 2020 (fieldwork dates: 19-30 March) vs June 2020 (fieldwork dates: 18-30 June)
                              • Airlines challenged to increase confidence in flying
                                • Figure 6: Consumers’ confidence in activities, July 2020 (fieldwork: 2-9 July 2020)
                              • COVID-19 hit during a vital booking period
                                • Figure 7: Holiday booking month, package vs independent, February 2020
                              • Smartphone overtakes tablet as second most popular booking method
                                • Figure 8: How main holiday was booked, February 2019 vs February 2020
                              • Pressure on sustainable recovery of tourism will increase
                                • Figure 9: Factors influencing choice of travel company, by age, February 2020
                              • Brands should be ready to engage with consumers through chat
                                • Figure 10: Attitudes towards webchats and chatbots, February 2020
                              • Social media will play a vital role in the recovery of the holiday market
                                • Figure 11: Inspiration from social media and Black Friday promotions, by age, February 2020
                              • Holidays without deposits more likely to appeal to younger travellers
                                • Older consumers are more likely to pay holiday booking by credit card
                                  • What we think
                                  • Impact of COVID-19 on the Holiday Planning and Booking Process

                                    • The market
                                      • The domestic holiday market will recover at a faster pace
                                        • Value of the overseas holiday market will recover quicker than volume
                                          • The consumer
                                            • Older consumers more likely to book holidays compared to the start of lockdown
                                              • Airlines challenged to increase confidence in flying
                                                • COVID-19 poses both opportunities and challenges for travel agents
                                                  • Pressure on sustainable recovery of tourism will increase
                                                    • Companies and brands
                                                      • Travel companies will scale down capacity amid slow recovery
                                                        • Market leader TUI introduces Holiday Promise
                                                          • COVID-19: Market context
                                                          • Issues and Insights

                                                            • COVID-19 brings safety and flexibility to the forefront in the holiday planning and booking process
                                                              • The facts
                                                                • The implication
                                                                  • The post-COVID-19 travel agent
                                                                    • The facts
                                                                      • The implications
                                                                      • The Market – What You Need to Know

                                                                        • The domestic holiday market will recover at a faster pace
                                                                          • Value of the overseas holiday market will recover quicker than volume
                                                                            • Uncertain economic outlook will lead to increased price-sensitivity
                                                                              • Despite uncertainties, large proportion of consumers are saving for holidays
                                                                              • Market Size and Forecast – Domestic and Overseas Holidays

                                                                                • Short, medium and long-term impact on the industry
                                                                                  • Figure 12: Expected impact of COVID-19 on the UK travel market, short, medium and long-term, 13 July 2020
                                                                                • Slow recovery due to consumers’ concerns about their physical and financial wellbeing
                                                                                  • Long-term prospects for the holiday market are positive
                                                                                    • The domestic holiday market will recover at a faster pace
                                                                                      • Figure 13: Forecast volume of domestic holidays* taken by British residents (adjusted for COVID-19 on 13 July 2020), 2015-25
                                                                                      • Figure 14: Forecast value of domestic holidays* taken by British residents (adjusted for COVID-19 on 13 July 2020), 2015-25
                                                                                      • Figure 15: Forecast volume and value* of domestic holidays taken by British residents (adjusted for COVID-19 on 13 July 2020), 2015-25**
                                                                                    • Value of the overseas holiday market will recover quicker than volume
                                                                                        • Figure 16: Forecast volume of overseas holidays taken by UK residents (adjusted for COVID-19 on 13 July 2020), 2015-25
                                                                                        • Figure 17: Forecast value* of overseas holidays taken by UK residents (adjusted for COVID-19 on 13 July 2020), 2015-25
                                                                                        • Figure 18: Forecast volume and value* of overseas holidays taken by UK residents (adjusted for COVID-19 on 13 July 2020), 2015-25**
                                                                                    • Market Drivers

                                                                                      • Uncertain economic outlook will lead to increased price-sensitivity
                                                                                        • Brexit sentiment at a record low amid COVID-19 uncertainties
                                                                                          • Figure 19: Level of concern over the impact of the EU referendum, July 2016-May 2020
                                                                                        • Consumers are concerned about what the future holds for their finances
                                                                                          • Figure 20: Financial confidence in the year ahead, May 2019 vs May 2020
                                                                                        • Despite uncertainties, large proportion of consumers are saving for holidays
                                                                                          • Government relaxes travel advice and halts quarantine measures for selected countries
                                                                                            • Figure 21: Top 15 destinations for overseas holidays taken by UK residents, by volume in 2019
                                                                                        • Companies and Brands – What You Need to Know

                                                                                          • TUI and Booking.com announce partnership for experiences
                                                                                            • Accor offers its guests access to medical support
                                                                                              • Travelisto’s travel designers are digital nomads
                                                                                                • Reduced demand forces hotels to experiment with different concepts
                                                                                                  • Booking.com offers good value, but its mediator position poses a threat to its trustworthy image
                                                                                                    • Jet2holidays again secures the highest share of users with an excellent experience
                                                                                                    • Market Share

                                                                                                      • Travel companies will scale down capacity amid slow recovery
                                                                                                        • Figure 22: Passengers licensed under ATOL protection, by top 10 ATOL holders, 2016-20
                                                                                                      • easyJet launches summer sale to encourage bookings
                                                                                                        • TUI and Booking.com announce partnership for experiences
                                                                                                          • Figure 23: Usage of selected brands, March 2020
                                                                                                      • Launch Activity and Innovation

                                                                                                        • Staying relevant amid travel restrictions
                                                                                                          • Secret Escapes promotes luxury home and living offers
                                                                                                            • Viator offers the option to book online experiences
                                                                                                              • Brands demonstrate what they do to protect travellers
                                                                                                                • Accor offers its guests access to medical support
                                                                                                                  • Airbnb encourages hosts to commit to its enhanced Cleaning Protocol
                                                                                                                    • Travel companies are tapping into video conferencing opportunities
                                                                                                                      • Kuoni launches video appointment service
                                                                                                                        • Travelisto’s travel designers are digital nomads
                                                                                                                          • Reduced demand forces hotels to experiment with different concepts
                                                                                                                            • Zoku transfers hotel rooms into working spaces
                                                                                                                              • Hotel in Sweden offers rooms for dining experiences
                                                                                                                              • Brand Research

                                                                                                                                  • Brand map
                                                                                                                                    • Figure 24: Attitudes towards and usage of selected brands, March 2020
                                                                                                                                  • Key brand metrics
                                                                                                                                    • Figure 25: Key metrics for selected brands, March 2020
                                                                                                                                  • Brand attitudes: TUI seen as a brand with a good reputation that offers consistently high quality
                                                                                                                                    • Figure 26: Attitudes, by brand, March 2020
                                                                                                                                  • Brand personality: loveholidays and On the Beach least strong brand personality as a result of a relatively low brand awareness
                                                                                                                                    • Figure 27: Brand personality – Macro image, March 2020
                                                                                                                                  • TUI and Jet2holidays most closely associated with being welcoming
                                                                                                                                    • Figure 28: Brand personality – Micro image, March 2020
                                                                                                                                  • Brand analysis
                                                                                                                                    • Tripadvisor calls upon operators to provide more flexibility
                                                                                                                                      • Figure 29: User profile of Tripadvisor, March 2020
                                                                                                                                    • Booking.com offers good value, but its mediator position poses a threat to its trustworthy image
                                                                                                                                      • Figure 30: User profile of Booking.com, March 2020
                                                                                                                                    • Expedia lacks clear level of differentiation in the marketplace
                                                                                                                                      • Figure 31: User profile of Expedia, March 2020
                                                                                                                                    • TUI’s benefits from trustworthy image, while it will be challenged to regain older consumers’ confidence in travelling
                                                                                                                                      • Figure 32: User profile of TUI, March 2020
                                                                                                                                    • Jet2holidays again secures the highest share of users with an excellent experience
                                                                                                                                      • Figure 33: User profile of Jet2holidays, March 2020
                                                                                                                                    • loveholidays challenged to raise its brand image
                                                                                                                                      • Figure 34: User profile of loveholidays, March 2020
                                                                                                                                    • On the Beach challenged to improve the customer experience
                                                                                                                                      • Figure 35: User profile of On the Beach, March 2020
                                                                                                                                  • The Consumer – What You Need to Know

                                                                                                                                    • Older consumers more likely to book holidays compared to the start of lockdown
                                                                                                                                      • Airlines challenged to increase confidence in flying
                                                                                                                                        • COVID-19 hit during a vital booking period
                                                                                                                                          • Smartphone overtakes tablet as second most popular booking method
                                                                                                                                            • Pressure on sustainable recovery of tourism will increase
                                                                                                                                              • Brands should be ready to engage with consumers through chat
                                                                                                                                              • Holiday Booking Intentions

                                                                                                                                                • Older consumers more likely to book holidays compared to the start of lockdown
                                                                                                                                                    • Figure 36: Plans to book a holiday in the next three months, by age, February 2020 (fieldwork dates: 11-25 February), March 2020 (fieldwork dates: 19-30 March) vs June 2020 (fieldwork dates: 18-30 June)
                                                                                                                                                • Confidence in Travelling

                                                                                                                                                  • Airlines challenged to increase confidence in flying
                                                                                                                                                    • COVID-19 expected to boost interest in self-catered accommodation
                                                                                                                                                        • Figure 37: Consumers’ confidence in activities, July 2020 (fieldwork: 2-9 July 2020)
                                                                                                                                                    • Holiday Booking Month

                                                                                                                                                        • COVID-19 hit during a vital booking period
                                                                                                                                                          • Figure 38: Holiday booking month, package vs independent, February 2020
                                                                                                                                                      • Holiday Booking Channels

                                                                                                                                                        • Smartphone overtakes tablet as second most popular booking method
                                                                                                                                                          • Figure 39: How main holiday was booked, February 2019 vs February 2020
                                                                                                                                                        • COVID-19 is likely to lead to an increase in online bookings
                                                                                                                                                          • Figure 40: How main holiday was booked, by age, February 2020
                                                                                                                                                        • Group-based touring formats have to adapt
                                                                                                                                                          • Figure 41: How main holiday was booked, by types of holiday, February 2020
                                                                                                                                                        • COVID-19 poses both opportunities and challenges for travel agents
                                                                                                                                                          • Figure 42: How main holiday was booked, package vs independent, February 2020
                                                                                                                                                      • Purchase Drivers When Choosing a Travel Company

                                                                                                                                                        • Pressure on sustainable recovery of tourism will increase
                                                                                                                                                          • Figure 43: Factors influencing choice of travel company, by age, February 2020
                                                                                                                                                      • Attitudes towards Online Communication Tools

                                                                                                                                                        • Brands should be ready to engage with consumers through chat
                                                                                                                                                          • Companies should either opt for a high quality chatbot or no bot at all
                                                                                                                                                            • Figure 44: Attitudes towards webchats and chatbots, February 2020
                                                                                                                                                        • Attitudes towards Holiday Planning

                                                                                                                                                          • Social media will play a vital role in the recovery of the holiday market
                                                                                                                                                            • Figure 45: Inspiration from social media and Black Friday promotions, by age, February 2020
                                                                                                                                                          • Vast majority of parents aged 16-44 living in cities browsed Black Friday holiday deals
                                                                                                                                                            • Figure 46: Browsing holiday deals during 2019 Black Friday promotions – CHAID analysis, February 2020
                                                                                                                                                        • Attitudes towards Holiday Payments

                                                                                                                                                          • Holidays without deposits more likely to appeal to younger travellers
                                                                                                                                                            • Figure 47: Preferred holiday payment option, by age, February 2020
                                                                                                                                                          • Older consumers are more likely to pay holiday booking by credit card
                                                                                                                                                            • Figure 48: Preferred holiday payment method, by age, February 2020
                                                                                                                                                            • Figure 49: Attitudes towards financial protection of credit card payments, by age, February 2020
                                                                                                                                                        • Appendix – Data Sources, Abbreviations and Supporting Information

                                                                                                                                                            • Abbreviations
                                                                                                                                                              • Consumer research methodology
                                                                                                                                                                • CHAID methodology
                                                                                                                                                                  • Figure 50: Browsing holiday deals during 2019 Black Friday promotions, CHAID analysis, February 2020

                                                                                                                                                              About the report

                                                                                                                                                              This report will give you a complete 360-degree view of your market. Not only is it rooted in robust proprietary and high-quality third-party data, but our industry experts put that data into context and you’ll quickly understand:

                                                                                                                                                              • The Consumer

                                                                                                                                                                What They Want. Why They Want It.

                                                                                                                                                              • The Competitors

                                                                                                                                                                Who’s Winning. How To Stay Ahead.

                                                                                                                                                              • The Market

                                                                                                                                                                Size, Segments, Shares And Forecasts: How It All Adds Up.

                                                                                                                                                              • The Innovations

                                                                                                                                                                New Ideas. New Products. New Potential.

                                                                                                                                                              • The Opportunities

                                                                                                                                                                Where The White Space Is. How To Make It Yours.

                                                                                                                                                              • The Trends

                                                                                                                                                                What’s Shaping Demand – Today And Tomorrow.

                                                                                                                                                              Please Note: This is a sample report. All of the figures, graphs, and tables have been redacted.

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