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Package vs Independent Holidays - UK - April 2018

“Mintel’s research shows that those who book ‘pure packages’ are the most likely travellers to record high customer satisfaction levels. Convenience and the removal of travel stress are key selling-points for package brands.”
–John Worthington, Senior Analyst

This Report looks at the following areas:

  • Personalisation is the key to attracting a new package generation 
  • The attraction of ‘re-bundled’ travel

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Table of contents

  1. Overview

    • What you need to know
      • Covered in this Report
      • Executive Summary

          • Independent holidays see larger rise than packages in past 5 years…
            • Figure 1: Volume forecast of overseas independent holidays, 2012-22
            • Figure 2: Volume forecast of overseas package holidays, 2012-22
          • …but packages slightly ahead for ‘main holidays’ abroad
            • Figure 3: How people booked their ‘main holiday*’ in the past 12 months, February 2016-18
          • Jet2holidays now second largest package brand behind TUI
            • Figure 4: Passengers licensed under ATOL protection, by top 10 ATOL holders, March 2018
          • Cruise, escorted tours and luxury travel are key growth areas for the package market
            • Figure 5: How ‘main holiday’ types were booked in the past 12 months, February 2018
          • Convenience is a core strength of package holidays
            • Figure 6: Reasons for booking package or independent holidays, February 2018
          • Responsible reputation can raise brand appeal
            • Figure 7: Attitudes towards package holidays, February 2018
          • Hassle-free holidays
            • Figure 8: Further attitudes towards package versus independent holidays, February 2018
          • What we think
          • Issues and Insights

            • Personalisation is the key to attracting a new package generation
              • The facts
                • The implications
                  • The attraction of ‘re-bundled’ travel
                    • The facts
                      • The implications
                      • The Market – What You Need to Know

                        • City break revival boosts independent travel
                          • Package demand stable
                            • Customers looking for value outside Eurozone
                              • Long-haul luxury has become more affordable
                                • Fares should stay low…at least for now
                                • Market Size and Forecast

                                  • Independent holidays have outperformed packages
                                      • Figure 9: Volume of overseas package and independent holidays, 2012-22
                                      • Figure 10: Value* of overseas package and independent holidays, 2012-22
                                    • Forecast
                                      • Figure 11: Volume forecast of overseas independent holidays, 2012-22
                                      • Figure 12: Value* forecast of overseas independent holidays, 2012-22
                                      • Figure 13: Volume forecast of overseas package holidays, 2012-22
                                      • Figure 14: Value* forecast of overseas package holidays, 2012-22
                                  • Segment Performance

                                    • Spain top choice for Brits while Egypt back on the map
                                      • Turkey, Croatia and Bulgaria expected to see strong package growth
                                        • Figure 15: Overseas package holiday volumes, October-September 2015-17
                                      • City break revival boosting independent travel
                                        • Figure 16: Overseas independent holiday volumes, October-September 2015-17
                                      • Time-poor travellers seeking shorter breaks
                                        • Figure 17: Package versus independent holiday volumes by trip duration, October-September 2015-17
                                    • Market Background

                                      • Cautious consumers
                                        • Pound still weak but has steadied
                                          • Figure 18: Spot exchange rate, Pound Sterling vs Euro and US$, June 2016-March 2018
                                        • Oil price rising but fares likely to stay low for now
                                            • Figure 19: Average European Brent Crude oil prices, 2013-March 2018
                                          • Cost of holidaying in Europe has risen sharply in 2018
                                            • Consumer seeking cheaper alternatives
                                              • Caribbean & Dubai have increased in value for money
                                                • Figure 20: Post Office travel cost barometer for popular resort destinations, 2017-18
                                              • New package regulations
                                              • Key Players & Products – What You Need to Know

                                                • Jet2holidays overtakes Thomas Cook
                                                  • TUI/Cook target the Airbnb generation
                                                    • We Love Holidays becomes fifth OTA to enter top ten package ranking
                                                      • Monarch’s collapse boosts Jet2 & easyJet
                                                        • Packages get personal
                                                        • Market Share

                                                          • Big two become big three
                                                            • The rise of Jet2holidays
                                                                • Figure 21: Passengers licensed under ATOL protection, by top 10 ATOL holders, 2012-18
                                                              • Half of top ten package brands are OTAs
                                                                • Airlines entering package space
                                                                • Launch Activity and Innovation

                                                                  • TUI’s third way
                                                                    • Thomas Cook extends choice to sunbeds and rooms
                                                                      • Kuoni to launch new online tailor-made brand
                                                                        • Phased package holidays
                                                                          • TUI continues own-brand strategy...
                                                                            • …and Thomas Cook follows suit
                                                                            • The Consumer – What You Need to Know

                                                                              • ‘Main holidays’ abroad show slight package bias
                                                                                • Generational divide
                                                                                  • All-inclusive surge
                                                                                    • Package holidays remove hassle
                                                                                      • Independent travel offers flexibility and choice
                                                                                        • Tailor-made potential is strong amongst Millennials
                                                                                          • Packages work best for more unusual trips
                                                                                          • Package versus Independent Bookings

                                                                                              • Package versus independent split unchanged
                                                                                                • Figure 22: How people booked their ‘main holiday’ in the past 12 months, February 2016-18
                                                                                              • Package has slight lead for ‘main holidays’ abroad
                                                                                                • Figure 23: How people booked their ‘main holiday’ in the past 12 months, UK versus overseas, February 2018
                                                                                              • Over-55s most likely to book a package
                                                                                                • Singles under-represented in package market
                                                                                                  • Package has the broadest socio-economic appeal
                                                                                                    • Figure 24: How people booked their ‘main holiday’ overseas in the past 12 months, by demographics, February 2018
                                                                                                  • Two thirds book all-inclusive package
                                                                                                    • Figure 25: All-inclusive holiday booking in the past 12 months, February 2017-18
                                                                                                • Holiday Types

                                                                                                  • Half of ‘main holidays’ to Europe are beach resort trips
                                                                                                    • Figure 26: Type of ‘main holiday’ taken in the past 12 months, February 2018
                                                                                                  • Package booking dominates cruise, escorted tours and luxury travel
                                                                                                    • OTAs are growing in the luxury travel space
                                                                                                      • Figure 27: How ‘main holiday’ types were booked in the past 12 months, February 2018
                                                                                                  • Reasons for Booking Package versus Independent Holidays

                                                                                                    • Convenience is key attraction for packages
                                                                                                      • Figure 28: Reasons for booking package or independent holidays, February 2018
                                                                                                    • Extras, security and expertise additional package attractions
                                                                                                      • Flexibility and choice seen as strengths of independent booking
                                                                                                      • Attitudes towards Package versus Independent Holidays

                                                                                                        • Expertise can make critical difference to customer satisfaction
                                                                                                          • Figure 29: Satisfaction with ‘main holiday’ over the past 12 months, by package versus independent holidays, February 2018
                                                                                                        • Millennials prepared to pay for personalisation
                                                                                                          • Figure 30: Target groups based on statements about holidays – CHAID – Table output, February 2018
                                                                                                          • Figure 31: Target groups based on statements about holidays – CHAID – Tree output, February 2018
                                                                                                        • Half prefer to book with responsible brands
                                                                                                          • Rising demand for all-inclusive presents ethical challenge
                                                                                                            • Figure 32: Attitudes towards package holidays, February 2018
                                                                                                          • Package holidaymakers favour specialist brands
                                                                                                            • Younger generations looking for ways to maintain holiday habit
                                                                                                              • Hassle-free package appeal
                                                                                                                  • Figure 33: Further attitudes towards package versus independent holidays, February 2018
                                                                                                                • Packages seen as best for the complex and unfamiliar
                                                                                                                  • Figure 34: Further attitudes towards package versus independent holidays, by how last ‘main holiday’ was booked, February 2018
                                                                                                                • Embrace package authenticity and individuality to broaden appeal
                                                                                                                • Appendix – Data Sources, Abbreviations and Supporting Information

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

                                                                                                                            • Figure 35: Package holidays, volume forecast, 2017-22
                                                                                                                            • Figure 36: Package holidays, value* forecast, 2017-22
                                                                                                                            • Figure 37: Independent holidays, volume forecast, 2017-22
                                                                                                                            • Figure 38: Independent holidays, value* forecast, 2017-22
                                                                                                                          • Forecast methodology

                                                                                                                          Package vs Independent Holidays - UK - April 2018

                                                                                                                          US $2,693.85 (Excl.Tax)