“Package providers must adapt to growing consumer demands for customisation and personalisation, especially on mobile devices. As new price comparison and aggregator apps continue to come on the market, consumers will become more comfortable doing independent research and booking on their mobile devices. As a result of the choice on offer, package providers should implement a more flexible booking model to help satisfy consumer desire for customisation.”
- Fergal McGivney, Travel and Technology Analyst
This report discusses the following key topics:
- Pure package providers must adapt to the growing demand for city breaks
- Using technology to get consumers excited
- Consumers have concerns about accommodation quality when booking packages
Independent bookings dominate the holiday market, but package bookings are still going strong in 2016. However, while pent-up demand for holidays overseas is finally being released, consumers are still somewhat cautious. The means that there is still demand for aggressively priced package holidays offering security and staggered payment models.
However, going towards 2020, it is likely that consumers will move towards independent and dynamic bookings due to increasing consumer confidence, increased financial protection when booking from separate providers and new independent booking platforms coming to market.
Pure package providers should look to make package bookings a more customisable and creative process. Brands must now compete on experiences as well as price to gain a competitive advantage. As long as the booking process is clutter-free and functional, package providers can experiment with customisation and personalisation, mobile and smart TV apps, interactive YouTube videos and even virtual reality technology.
This Report examines the habits and attitudes of British adults concerning package and independent holidays taken both in the UK and abroad. A holiday must constitute at least one overnight stay. The business travel market is not reviewed in this Report.
For the purposes of this Report, Mintel defines a package holiday in conjunction with the International Passenger Survey (IPS) as an ‘advertised inclusive tour or package holiday’. A package holiday is considered to be a holiday in which a return fare and accommodation are purchased from one provider, for a single price.