2022
9
UK COVID-19 and Travel: Emerging from the Pandemic Market Report 2022
2022-09-29T04:20:07+01:00
OX1101889
2195
156056
[{"name":"Holidays and Travel","url":"https:\/\/store.mintel.com\/industries\/holidays-travel"}]
Report
en_GB
“More travellers will look for ways to mitigate the impact of rising prices and stick to a budget when travelling, while some will be forced to exit the market completely.

UK COVID-19 and Travel: Emerging from the Pandemic Market Report 2022

£ 2,195 (Excl.Tax)

Description

The UK COVID-19 and Travel: Emerging from the Pandemic Market Report identifies the impact of COVID-19 on the travel market, changes in consumers’ holiday interests and the impact of rising inflation on the UK travel and tourism market. This report covers the UK travel and tourism market size, market forecast, market segmentation and UK travel trends.

 

Current Landscape of the UK Travel and Tourism Market

Despite economic challenges, the UK travel and tourism market benefited from strong pent-up demand for travel when restrictions were lifted in early 2022. However, soaring inflation has started to affect consumers’ appetite to book holidays beyond the summer.

More travellers will look for ways to mitigate the impact of rising prices and stick to a budget when travelling, while some will be forced to exit the UK travel and tourism market completely. Mintel’s travel market research identifies that this will intensify preexisting demographic profiles, with the holiday market becoming more dependent on better-off consumers. Company budgets for business travel will also likely come under more pressure.

 

UK Travel and Tourism Market Share and Key UK Travel Trends

Although overseas travel confidence continues to recuperate, the pressure on household finances is expected to continue well into 2023, which will reduce Brits’ spending power. This will put more pressure on the recovery of the UK travel and tourism market volume, but the increase in average selling prices will see the market value recover quicker. The potential emergence of vaccine-resistant COVID-19 variants also continues to pose a threat to the UK travel and tourism market.

  • 52% of UK holidaymakers can’t afford to spend as much on holidays compared to before the pandemic.
  • 33% of UK travellers are likely to visit Spain within the next 2 years.
  • 64% of UK holidaymakers are more interested in booking wellbeing holidays compared to before the pandemic.
  • 26% of business travellers have had less business trips abroad compared to before the pandemic.

 

Future UK Travel Trends

It will be necessary for brands to appeal to more budget-conscious or budget-stretched consumers, such as by offering more flexible payment options and a flexible booking calendar. At the same time, brands will also need to convince consumers to look beyond price and consider other aspects such as quality.

Mintel’s travel market research reveals that holidays that help improve mental and physical wellbeing will be key future travel trends. Brands that tap into this surging interest and provide experiences that promote wellbeing benefits will help increase holiday products’ perceived value. Innovation regarding sustainability will also be crucial to support the future evolution of the UK travel and tourism market.

To discover more about UK Holiday Planning and Booking Process Market Report 2022, read our UK Holiday Review Market Report 2022, or take a look at our extensive Holidays and Travel Market Research.

 

Quickly Understand

  • How the rising cost of living will impact the recovery of the UK travel and tourism market.
  • Impact of COVID-19 on the travel market.
  • Trends in bookings and intentions to book holidays.
  • Intentions to visit short-haul and long-haul destinations.
  • Changes in consumers’ holiday interests.
  • Business travel participation and future intentions.
  • Explores UK travel and tourism market size and UK travel and tourism market share.

 

Covered in this Report

Products: Domestic and overseas holidays.

Brands: TravelTime World, Brightwater Holidays, British Airways, Eurostar, Jet2.com, Atthams Travel, Hilton, Nok Air, EasyJet, Jet Capsule, Intrepid, Kayak.com, Pierre & Vacances, Western Australia, Airbnb, Gap 360, Etsy, Black Tomato, Kuoni, TUI.

 

Expert Analysis from a Specialist in the UK Travel Industry

This report, written by Marloes de Vries, a leading analyst in the UK Travel Industry, delivers in-depth commentary and analysis to highlight current trends in the UK travel and tourism market and add expert context to the numbers.

More travellers will look for ways to mitigate the impact of rising prices and stick to a budget when travelling, while some will be forced to exit the UK travel and tourism market completely. To strengthen their appeal, brands will be challenged to increase the perceived value of the trips and services they offer.”

Marloes de Vries
Associate Director – Travel

Table of Contents

  1. Overview

    • Key issues covered in this Report
    • Market context
    • Products covered in this Report
  2. Executive Summary

    • The five-year outlook for the UK travel market
      • Figure 1: Category outlook, 2022-27
    • The market
    • Despite relaxation of travel restrictions, 2022 has continued to present challenges
    • Income squeeze expected to persist into 2023
      • Figure 2: Forecast value* of domestic holidays taken by British residents, at current prices, 2017-27
      • Figure 3: Forecast value* of overseas holidays taken by UK residents, at current prices, 2017-27
    • Consumers would rather see price increases than a drop in quality of holiday
      • Figure 4: Attitudes towards price increases versus the reduction of quality, 2022
    • Companies and brands
    • Travel companies respond to the cost-of-living crisis
    • Innovations that make natural areas more accessible
    • The consumer
    • Nearly a third of UK adults took holidays in both the UK and abroad before COVID-19
      • Figure 5: Visited destinations for a holiday prior to COVID-19, 2022
    • Consumers plan to spend less on holidays compared to before the pandemic
    • Holidays will become more dependent on better-off consumers
      • Figure 6: Expected changes in spend on holidays in the next 12 months, by annual household income, 2022
    • Value will become an even more important purchase decision driver
      • Figure 7: Reasons for spending less or nothing on holidays in the next 12 months, 2022
    • Lockdown savings still represent an opportunity
      • Figure 8: Reasons for spending more on holidays in the next 12 months, 2022
    • Spain remains most desired short-haul destination
    • Italy has high growth potential, while France’s market share is under pressure
      • Figure 9: Intentions to visit short-haul destinations in the next two years, 2022
    • North America remains the most desired long-haul destination, but its value for money is under pressure
      • Figure 10: Intentions to visit long-haul destinations in the next two years, 2022
    • Big shifts in holiday interest towards care for wellbeing and the environment
    • Pandemic has increased the group of potential working holidaymakers
      • Figure 11: Changes in holiday interests compared to before COVID-19, 2022
    • Nearly a third of Britain’s employed population took business trips prior to COVID-19
    • Business travel market unlikely to fully recover in the next year
      • Figure 12: Changes in the number of business trips expected compared to prior to COVID-19, by destination, 2022
    • Alternative ways of meeting are the biggest disruptor of the business travel recovery
      • Figure 13: Reasons for taking fewer or no business trips, 2022
  3. Issues and Insights

    • Value will become an even more important purchase decision driver
    • Budget
    • Premium
    • Convenience
    • Quality
    • Efficiency and convenience are important selling points for airlines
    • Extra reassurances remain important to some consumers
  4. Market Size and Performance

    • Domestic market leads recovery following sharp declines triggered by COVID-19
    • Despite relaxation of travel restrictions, 2022 has continued to present challenges
    • A rise in the average cost per trip should see market value recover at a faster pace
      • Figure 14: Volume and value of domestic holidays taken by British residents, 2015-22
      • Figure 15: Volume and value* of overseas holidays taken by UK residents, 2015-22
  5. Market Forecast

    • The five-year outlook for the UK travel market
      • Figure 16: Category outlook, 2022-27
    • Income squeeze expected to persist into 2023
    • Value of the holiday market expected to exceed pre-COVID-19 levels in 2024
      • Figure 17: Forecast volume of domestic holidays taken by British residents, 2017-27*
      • Figure 18: Forecast value* of domestic holidays taken by British residents, at current prices, 2017-27
      • Figure 19: Forecast volume of overseas holidays taken by UK residents, 2017-27**
      • Figure 20: Forecast value* of overseas holidays taken by UK residents, at current prices, 2017-27
    • Learnings from the last income squeeze
    • Forecast methodology
  6. Market Drivers

    • Booking levels kept up well throughout the summer…
      • Figure 21: Holiday bookings in the last three months, 2016-22
    • …but are expected to decline in the coming months due to soaring inflation
      • Figure 22: Plans to book a holiday in the next three months, 2016-22
    • Confidence will be further hit by energy price cap increase
    • Consumers would rather see price increases than a drop in quality of holiday
      • Figure 23: Attitudes towards price increases versus the reduction of quality, 2022
    • Staff shortages continue to impact some companies’ services…
    • …while others have enough resources to operate efficiently
    • Financial commitments and Brexit also impact the path to recovery
    • Disruption has put people off travelling abroad
    • Pandemic has spotlighted work/life balance
    • Flexible working is among the most desired employee benefits
    • Support for the four-day week movement is growing
    • Pets have continued to earn status
    • COVID-19 led to an increase in pet ownership and pet appreciation
    • Various travel companies have tapped into the trend
    • Various destinations introduce or increase tourism taxes and set visitor quotas
  7. Launch Activity and Innovation

    • Travel companies respond to the cost-of-living crisis
    • TravelTime World launches collection of long-stay winter holidays for Brits to escape high energy costs
    • easyJet holidays offers discount on one-adult breaks
    • Brightwater Holidays introduces new lower-budget holidays in response to rising cost of living
    • Innovations focused on greener travel
    • Jet Capsule offers solar-powered mobile floating suites to seaside hospitality market
    • Intrepid moves into the accommodation vertical by accelerating growth of off-grid cabins
    • Innovations that make natural areas more accessible
    • Convenience store chain has introduced drone delivery services in selected camping sites
    • Unmanned Kayak and SUP rental concept is expanding in Europe and North America
    • More brands are looking to appeal to working holidaymakers
    • Pierre & Vacances launches new collection of workcations in the Alps
    • Western Australia promotes Paid Escape incentive in the UK to promote tourism and work opportunities
    • Airbnb offers work-from-home items in partnership with Etsy
  8. Holidaying Habits Prior to COVID-19

    • Nearly a third of UK adults took holidays in both the UK and abroad before COVID-19
      • Figure 24: Visited destinations for a holiday prior to COVID-19, 2022
    • Holiday market more dependent on those on higher incomes
      • Figure 25: Visited destinations for a holiday prior to COVID-19, by demographics, 2022
  9. Changes to Holiday Spending

    • Consumers plan to spend less on holidays compared to before the pandemic
    • Some will be forced to exit the holiday market completely…
      • Figure 26: Expected changes in spend on holidays in the next 12 months, 2022
    • …meaning that holidays will become more dependent on better-off consumers
      • Figure 27: Expected changes in spend on holidays in the next 12 months, by annual household income, 2022
    • Over-65s more cautious about spending on holidays again
      • Figure 28: Expected changes in spend on holidays in the next 12 months, by age, 2022
  10. Reasons for Spending More or Less on Holidays

    • Value will become an even more important purchase decision driver
    • Budget
      • Figure 29: Reasons for spending less or nothing on holidays in the next 12 months, 2022
    • Premium
      • Figure 30: Reasons for spending more on holidays in the next 12 months, 2022
    • Convenience
    • Quality
    • Disruption to flights has delayed the recovery
    • Extra reassurances remain important to some consumers
  11. Intentions to Visit Destinations

    • Spain remains most desired short-haul destination
    • Italy has high growth potential, while France’s market share is under pressure…
    • …but Summer Olympic and Paralympic Games provide opportunities for France
      • Figure 31: Intentions to visit short-haul destinations in the next two years, 2022
    • Short-haul destinations are set for a quicker recovery
    • Local culture is a key attraction of long-haul destinations
    • North America remains the most desired long-haul destination…
    • …but its value for money is under pressure
      • Figure 32: Intentions to visit long-haul destinations in the next two years, 2022
  12. Changes in Holiday Interests

    • Big shifts in holiday interest towards care for wellbeing and the environment
    • Pandemic has increased the group of potential working holidaymakers
      • Figure 33: Changes in holiday interests compared to before COVID-19, 2022
  13. Attitudes towards Travel

    • Majority of travellers would consider booking travel insurance with a travel company
    • Disruption at airports puts many travellers off flying…
    • …while efficiency and convenience are important selling points
      • Figure 34: Attitudes towards travel, 2022
  14. Business Travel – Participation

    • Nearly a third of Britain’s employed population took business trips prior to COVID-19
      • Figure 35: Participation in business travel, by destination, 2022
  15. Business Travel – Future Intentions

    • Business travel market unlikely to fully recover in the next year
      • Figure 36: Changes in the number of business trips expected compared to prior to COVID-19, by destination, 2022
    • Alternative ways of meeting are the biggest disruptor of the business travel recovery
    • Technology cannot replace all meetings…
    • …but further developments pose a threat to physical meetings and events in the longer term
      • Figure 37: Reasons for taking fewer or no business trips, 2022
  16. Appendix – Data Sources, Abbreviations and Supporting Information

    • Abbreviations
    • Consumer research methodology
  17. Appendix – Forecast Methodology

    • Volume forecast and prediction intervals for total holidays
      • Figure 38: Lower bound, central and upper bound forecast for the total volume of holidays (domestic* and overseas) taken by UK residents, 2022-27
    • Value forecast and prediction intervals for total holidays
      • Figure 39: Lower bound, central and upper bound forecast for the total value* of holidays (domestic** and overseas) taken by UK residents, 2022-27
    • Volume forecast and prediction intervals for domestic holidays
      • Figure 40: Lower bound, central and upper bound forecast for the volume of domestic holidays taken by British residents, 2022-27
    • Value forecast and prediction intervals for domestic holidays
      • Figure 41: Lower bound, central and upper bound forecast for the value of domestic holidays taken by British residents, 2022-27
    • Volume forecast and prediction intervals for overseas holidays
      • Figure 42: Lower bound, central and upper bound forecast for the volume of overseas holidays taken by UK residents, 2022-27
    • Value forecast and prediction intervals for overseas holidays
      • Figure 43: Lower bound, central and upper bound forecast for the value* of overseas holidays taken by UK residents, 2022-27
    • Value forecast for domestic and overseas holidays at constant prices
      • Figure 44: Value of domestic holidays taken by British residents, at 2022 prices, 2022-27
      • Figure 45: Value* of overseas holidays taken by UK residents, at 2022 prices, 2022-27
    • Market drivers and assumptions
    • Forecast methodology

About the report

This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.

Market

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Mintel’s proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.

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Mintel provides overviews of the top brands and manufacturers, and uses consumer research to explore attitudes and reactions to brands, as well as insight into what will resonate with consumers.

Data

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*databooks not available with UK B2B Industry reports.

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