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Package vs Independent Holidays - UK - April 2019

Covered in this report

This report examines the habits and attitudes of British adults towards package and independent holidays. A holiday must constitute at least one overnight stay. The business travel market is not reviewed in this report.

Market size and forecasts refer specifically to the overseas holiday market. Mintel’s consumer research also includes data on the domestic holiday market but the main focus of this report is holidays abroad.

For the purposes of this report, Mintel asked a number of questions to UK adults about the ‘main holiday’ they had taken in the last 12 months. This was defined as the holiday on which they had spent the most in terms of travel and accommodation. Mintel has categorised the following types of holidays:

“Package holiday providers will benefit from the financial protection offered as Brexit uncertainties continue to instil cautious behaviour among travellers. However, the independent sector looks better positioned for the long term, given the rising demand for short breaks and flexibility.”
– Marloes de Vries, Travel Analyst

This report will cover the following areas:

  • Trust is more important than ever in uncertain economic times
  • Travellers will increasingly take environmentally responsible decisions

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Table of contents

  1. Overview

    • What you need to know
      • Products covered in this Report
      • Executive Summary

          • The market
            • Package holidays expected to grow at the expense of independent holidays in 2019
              • Figure 1: UK volume forecast of overseas package holidays, 2013-23
            • The long-term outlook for the independent sector is more positive
              • Figure 2: UK volume forecast of overseas independent holidays, 2013-23
            • The value of both independent and package holidays is expected to decline in 2019
              • Turkey and Mexico overtake the Caribbean as most visited package holiday destinations
                • Room for growth in Eastern European destinations
                  • Brits still unwilling to forgo holidays
                    • Europeans consider the UK a less appealing destination
                      • Companies and brands
                        • Jet2holidays continues to gain ground
                          • easyJet enters the top 10 ATOL package operators by volume
                            • Thomas Cook’s city break and hotel-only offering with Expedia Group
                              • The consumer
                                • Package versus independent split stable
                                  • Figure 3: How people booked their ‘main holiday’ in the past 12 months, February 2016-February 2019
                                • Even split between overseas independent and package holidays
                                  • The cruises segment offers high growth potential
                                    • Coastal cities could prove popular
                                      • All-inclusive holidays are perceived as relatively expensive
                                        • Figure 4: All-inclusive holiday booking for packages in the past 12 months, February 2017-February 2019
                                      • A slight majority of all-inclusive holidaymakers would be open to resorts that offer flexible price tiers
                                        • Brexit uncertainties place financial protection in the spotlight
                                          • Figure 5: Reasons for booking package holidays, February 2018 and February 2019
                                        • Package holiday providers should bring financial protection to the forefront
                                          • Travel flexibility has become a more important reason for booking independently
                                            • Figure 6: Reasons for booking independent holidays, February 2018 and February 2019
                                          • Booking independently has strong associations with flexibility
                                            • Figure 7: Perceptions of holiday types, February 2019
                                          • The majority of consumers would like to see more travel companies reducing plastic waste
                                            • Travellers need support in behaving responsibly whilst travelling
                                              • Consumers still prefer hotels to be staffed by humans
                                                • What we think
                                                • Issues and Insights

                                                  • Trust is more important than ever in uncertain economic times
                                                    • The facts
                                                      • The implications
                                                        • Travellers will increasingly take environmentally responsible decisions
                                                          • The facts
                                                            • The implications
                                                            • The Market – What You Need to Know

                                                              • Package holidays expected to grow at the expense of independent holidays in 2019
                                                                • The long-term outlook for the independent sector is more positive
                                                                  • The value of both independent and package holidays is expected to decline in 2019
                                                                    • Turkey and Mexico overtake the Caribbean as most visited package holiday destinations
                                                                      • Room for growth in Eastern European destinations
                                                                        • Brits still unwilling to forgo holidays
                                                                        • Market Size and Forecast – Overseas Holidays

                                                                          • Package holidays volume expected to grow at the expense of independent holidays in 2019
                                                                            • Figure 8: UK volume of overseas package and independent holidays, 2013-23
                                                                          • The long-term outlook for the independent sector is more positive
                                                                            • Figure 9: UK volume forecast of overseas package holidays, 2013-23
                                                                            • Figure 10: UK volume forecast of overseas independent holidays, 2013-23
                                                                          • The value of both independent and package holidays is expected to decline in 2019
                                                                            • Figure 11: UK value* of overseas package and independent holidays, 2013-23
                                                                            • Figure 12: UK value* forecast of overseas package holidays, 2013-23
                                                                            • Figure 13: UK value* forecast of overseas independent holidays, 2013-23
                                                                          • Forecast methodology
                                                                          • Market Segmentation

                                                                            • Turkey and Mexico overtake the Caribbean as most visited package holiday destinations
                                                                              • Figure 14: UK overseas package holiday volume, top 20 destinations, October 2015-September 2016 to October 2017-September 2018
                                                                            • Room for growth in Eastern European destinations
                                                                              • Figure 15: UK overseas independent holiday volume, top 20 destinations, October 2015-September 2016 to October 2017-September 2018
                                                                            • Independent holiday segment benefits from the shift to shorter breaks
                                                                              • Figure 16: UK package versus independent holiday volume by trip duration, October 2014-September 2015 to October 2017-September 2018
                                                                          • Market Drivers

                                                                            • Brits still unwilling to forgo holidays
                                                                              • Figure 17: Booked a holiday in the past three months and plans to book a holiday in the next three months, January 2017-January 2019
                                                                            • High demand for lower-cost destinations, even though some remain volatile
                                                                              • Figure 18: Pound versus euro and US Dollar, 20 May 2016-7 March 2019
                                                                            • Tourism growth puts pressure on environment
                                                                              • Overseas travel could face headwinds from warm weather in the UK
                                                                                • Europeans consider the UK a less appealing destination
                                                                                • Companies and Brands – What You Need to Know

                                                                                  • Jet2holidays continues to gain ground
                                                                                    • easyJet enters the top 10 ATOL package operators by volume
                                                                                      • TUI plays with the senses in its new luxury beach clubs and signature restaurant
                                                                                        • Thomas Cook’s city break and hotel-only offering with Expedia Group
                                                                                          • Marriott International adds local expert recommendations to its activities platform
                                                                                          • Market Share

                                                                                            • Jet2holidays continues to gain ground
                                                                                              • Figure 19: Passengers licensed under ATOL protection, by top 10 ATOL holders, 2015-19
                                                                                            • easyJet enters the top 10 ATOL package operators by volume
                                                                                            • Launch Activity and Innovation

                                                                                              • Influencing travellers’ mood
                                                                                                • Cuckooz helps to offer guests the ultimate sleeping experience
                                                                                                  • Figure 20: Womb-inspired cocoon bed offered by Cuckooz in Spitalfields, London
                                                                                                • TUI plays with the senses in its new luxury beach clubs and signature restaurant
                                                                                                  • Worldwide initiatives to reduce plastic waste
                                                                                                    • Istanbul Metro rewards passengers who recycle bottles and cans
                                                                                                      • Iberostar Group commits to eliminating single-use plastics
                                                                                                        • Partnerships for more choice and greater exposure
                                                                                                          • Thomas Cook’s city break and hotel-only offering with Expedia Group
                                                                                                            • Lidl shoppers have a chance to win a trip with Jet2holidays
                                                                                                              • Boundaries between work and holiday fade away
                                                                                                                • AccorHotels launches space for co-workers
                                                                                                                  • Selina, a chain for ‘digital nomads’, targets young workers
                                                                                                                    • Figure 21: Co-working office space offered by Selina in Santa Teresa South
                                                                                                                  • Inspiring travellers by sharing local tips
                                                                                                                    • Real time KLM hologram bar connects passengers to exchange local tips
                                                                                                                      • Marriott International adds local expert recommendations to its activities platform
                                                                                                                      • The Consumer – What You Need to Know

                                                                                                                        • Even split between overseas independent and package holidays
                                                                                                                          • Coastal cities could prove popular
                                                                                                                            • Personalisation also important in group holidays/escorted tours
                                                                                                                              • All-inclusive holidays are perceived as relatively expensive
                                                                                                                                • Brexit uncertainties place financial protection in the spotlight
                                                                                                                                  • Travel flexibility has become a more important reason for booking independently
                                                                                                                                    • The majority of consumers would like to see more travel companies reducing plastic waste
                                                                                                                                    • Package vs Independent Bookings

                                                                                                                                        • Package versus independent split stable
                                                                                                                                          • Figure 22: How people booked their ‘main holiday’ in the past 12 months, February 2016-February 2019
                                                                                                                                        • Even split between overseas independent and package holidays
                                                                                                                                          • Figure 23: How people booked their ‘main holiday’ in the past 12 months, UK versus overseas, February 2019
                                                                                                                                        • Older consumers account for a large number of pure package bookings
                                                                                                                                          • Figure 24: How people booked their ‘main holiday’ overseas in the past 12 months, by demographics, February 2019
                                                                                                                                      • Holiday Types

                                                                                                                                        • The cruises segment offers high growth potential
                                                                                                                                          • Figure 25: Type of ‘main package holiday’ taken in the past 12 months, by destination, February 2019
                                                                                                                                        • Coastal cities could prove popular
                                                                                                                                          • Figure 26: Type of ‘main independent holiday’ taken in the past 12 months, by destination, February 2019
                                                                                                                                        • Personalisation also important in group holidays/escorted tours
                                                                                                                                          • Figure 27: How ‘main holiday’ types were booked in the past 12 months, February 2019*
                                                                                                                                      • All-inclusive Holiday Taking

                                                                                                                                        • All-inclusive holidays are perceived as relatively expensive
                                                                                                                                          • Figure 28: All-inclusive holiday booking for packages in the past 12 months, February 2017-February 2019
                                                                                                                                        • A slight majority of all-inclusive holidaymakers would be open to resorts that offer flexible price tiers
                                                                                                                                          • Figure 29: Attitudes towards flexible price tiers in all-inclusive holiday resorts, February 2019
                                                                                                                                        • Flexible price tiers in all-inclusive holiday resorts are most appealing to prosperous dual-parent families
                                                                                                                                          • Figure 30: Attitudes towards flexible price tiers in all-inclusive holiday resorts, CHAID analysis, February 2019
                                                                                                                                        • Different price levels for all-inclusive holidays could put off older consumers and those in the lowest socio-economic groups
                                                                                                                                          • Figure 31: Attitudes towards flexible price tiers in all-inclusive holiday resorts, by demographics, February 2019
                                                                                                                                      • Reasons for Booking Package Holidays

                                                                                                                                        • Brexit uncertainties place financial protection in the spotlight
                                                                                                                                          • Figure 32: Reasons for booking package holidays, February 2018 and February 2019
                                                                                                                                        • Package holiday providers should bring financial protection to the forefront
                                                                                                                                          • Figure 33: Attitudes towards financial protection of package holidays, by package and independent holidaymakers, February 2019
                                                                                                                                          • Figure 34: Homepage of onthebeach.co.uk, as of 5 March 2019
                                                                                                                                      • Reasons for Booking Independent Holidays

                                                                                                                                        • Travel flexibility has become a more important reason for booking independently
                                                                                                                                          • Figure 35: Reasons for booking independent holidays, February 2018 and February 2019
                                                                                                                                      • Perceptions of Holiday Types

                                                                                                                                        • Package holidays are perceived as easy to book
                                                                                                                                          • Figure 36: Perceptions of holiday types – Correspondence analysis, February 2019
                                                                                                                                        • Booking independently has strong associations with flexibility
                                                                                                                                          • Figure 37: Perceptions of holiday types, February 2019
                                                                                                                                      • Attitudes towards Reducing Waste and Recycling

                                                                                                                                        • The majority of consumers would like to see more travel companies reducing plastic waste
                                                                                                                                          • Figure 38: Attitudes towards reducing waste in the travel sector, February 2019
                                                                                                                                        • Travellers need support in behaving responsibly whilst travelling
                                                                                                                                          • Figure 39: Attitudes towards recycling whilst on holiday, by demographics, February 2019
                                                                                                                                      • Attitudes Towards Robot Hotels

                                                                                                                                        • Consumers still prefer hotels to be staffed by humans
                                                                                                                                          • Figure 40: Attitudes towards a hotel that is partly run by robots, February 2019
                                                                                                                                      • Appendix – Data Sources, Abbreviations and Supporting Information

                                                                                                                                          • Definitions
                                                                                                                                            • Abbreviations
                                                                                                                                              • Consumer research methodology
                                                                                                                                                • CHAID analysis methodology
                                                                                                                                                  • Figure 41: Attitudes towards flexible price tiers in all-inclusive holiday resorts, CHAID analysis, February 2019
                                                                                                                                                • Correspondence analysis methodology
                                                                                                                                                • Appendix – Market Size and Forecast

                                                                                                                                                  • Volume forecast for total holidays
                                                                                                                                                    • Figure 42: Forecast volume of total overseas holidays taken by UK residents, 2018-23
                                                                                                                                                  • Value forecast for total holidays
                                                                                                                                                    • Figure 43: Forecast value of total overseas holidays taken by UK residents, 2018-23
                                                                                                                                                  • Volume forecast for package holidays
                                                                                                                                                    • Figure 44: Forecast volume of overseas package holidays taken by UK residents, 2018-23
                                                                                                                                                  • Value forecast for package holidays
                                                                                                                                                    • Figure 45: Forecast value of total package holidays taken by UK residents, 2018-23
                                                                                                                                                  • Volume forecast for independently-booked holidays
                                                                                                                                                    • Figure 46: Forecast volume of overseas independent holidays taken by UK residents, 2018-23
                                                                                                                                                  • Value forecast for independently-booked holidays
                                                                                                                                                    • Figure 47: Forecast value of total independent holidays taken by UK residents, 2018-23
                                                                                                                                                  • Forecast methodology

                                                                                                                                                  Package vs Independent Holidays - UK - April 2019

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