2021
9
UK Domestic Tourism Market Report 2021
2021-11-26T03:11:41+00:00
OX1049273
2195
145587
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Report
en_GB
“While the rising cost of living will lead to more consumers opting for low-cost options, there are still a lot of lockdown savings waiting to be unlocked and holidays are…

UK Domestic Tourism Market Report 2021

£ 2,195 (Excl.Tax)

Description

The UK Domestic Tourism industry report identifies consumer attitudes towards domestic tourism, booking intentions, domestic tourism expendature, holiday types and holiday activities in the UK. This market report covers the market size, market forecast, market segmentation and industry trends for the Domestic Tourism market in the UK. 

Current Market Landscape

Pent-up demand combined with slower recovery in international travel will have a positive impact on the recovery of the domestic holiday market. However, many Brits feel uncertain about how COVID-19 will develop over the coming winter period, which will lead to cautious consumer behaviour in the short term.

  • 29% of domestic holidaymakers are likely to visit a local food or drink producer during a staycation over the next 12 months.
  • the volume of domestic holidays taken by British residents is expected to remain 16% below 2019 levels, while value will remain 7% below 2019 levels.
  • 23% of UK adults booked a domestic or overseas holiday in the three months to October 2021 compared to 28% in the same period in 2019.

Local food and drink experiences appeal to those who want to learn more about the destination and travel responsibly through reducing their footprint and supporting the local economy. This will become a bigger opportunity given rising sustainability concerns.

Future Market Trends in Domestic Tourism

The rising cost of living will make consumers more price sensitive. There will be more demand for low-cost options, such as camping holidays, while all-inclusive concepts should prove more popular to those looking to control costs. On the flip side, there are still a lot of lockdown savings waiting to be unlocked. More than half of travellers who have been able to increase their savings since the start of the coronavirus outbreak are interested in upgrading elements of their holidays in the coming year.

During the pandemic, consumers have turned more to outdoor activities. Developing and promoting more experiences around nature will help brands to take advantage of this trend. Emphasising both the health benefits of being in the great outdoors as well as the environmental benefits it offers will resonate more strongly as a result of a shift in consumer priorities.

Read on to discover more details or take a look at all of our UK Holidays market research.

Quickly understand

  • The impact of COVID-19 on the domestic holiday market.
  • Trends in holiday booking intentions and bookings.
  • Which UK regions show growth potential.
  • Consumer interest in holiday types and holiday activities.
  • Attitudes towards domestic holidays.

Covered in this report

Brands: BrewDog, FirstGroup, Cotswolds Hideaways, Lys-y-Frân, Vox City Walks, Lovetovisit.com, Hilton, Princess Cruises, P&O Cruises, Virgin Voyages, VisitScotland.

Expert analysis from a specialist in the field

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

While the rising cost of living will lead to more consumers opting for low-cost options, there are still a lot of lockdown savings waiting to be unlocked and holidays are deemed a priority. This bodes well for the recovery of the domestic segment, particularly if wavering uncertainty surrounding overseas travel makes staycations the preferred choice again in 2022. Local food and drink and nature-based experiences are in high demand and will likely grow in popularity due to growing consumer concerns about the environment.
Marloes de Vries
Associate Director – Travel

Table of Contents

  1. Overview

    • Key issues covered in this Report
    • COVID-19: market context
    • Economic and other assumptions
    • Products covered in this Report
  2. Executive Summary

    • Impact of COVID-19 on the domestic holiday market
      • Figure 1: Short, medium and long-term impact of COVID-19 on the domestic holiday market, 2020-25
    • The market
    • Demand for summer staycations in 2021 exceeded pre-COVID-19 levels…
    • …but dip in consumer confidence will slow demand in the fourth quarter of 2021
    • The 2021-22 winter season will likely prove most challenging
    • Strong demand expected for staycations from Spring 2022 onward
      • Figure 2: COVID-19 scenario forecasts for the volume of domestic holidays taken by British residents, 2016-26
      • Figure 3: COVID-19 scenario forecasts for the value of domestic holidays taken by British residents, 2016-26
    • Booking levels remained below pre-COVID-19 levels, but the gap continued to narrow
    • Increasing polarisation will boost popularity of both low-cost options and holiday upgrades
    • Air Passenger Duty on domestic flights set to halve from April 2023
    • Companies and brands
    • BrewDog’s plans to offer eco-cabins and a campsite in its Lost Forest
    • Cotswolds Hideaways offers local rural experiences
    • Love to visit launches booking experiences platform in the UK
    • The consumer
    • Holiday participation drops by a third in the year to August 2021
      • Figure 4: UK holiday taking, 2016-21
    • Over half of UK adults plan to take a staycation in the coming year
      • Figure 5: UK holidaying intentions, 2020-21
    • Consumers continue to adopt a wait-and-see attitude
    • Strong desire to take more staycations in 2021
    • Concerns about international travel and Brexit favour the domestic market
      • Figure 6: Reasons for taking more UK holidays in the next 12 months, 2020-21
    • Scotland and Wales benefit from high interest in rural breaks
    • London has a strong appeal to affluent travellers
      • Figure 7: UK holiday destinations, visited in the 12 months to July 2019 vs considered in the 12 months following August 2021
    • Nature-based experiences have high growth potential
      • Figure 8: Interest in types of holiday, 2021
    • Local producers play a key role in domestic holiday experience
      • Figure 9: Interest in domestic holiday activities, 2021
    • Millennial parents show highest interest in domestic cruises
      • Figure 10: Attitudes towards domestic holidays, 2021
  3. Issues and Insights

    • Holidaying behaviour will become more polarised
    • Some consumers will become more price-sensitive…
    • …while others will use lockdown savings to fund and upgrade holidays
    • The challenge to sustaining popularity when overseas travel bounces back
    • Customer satisfaction requires focus amid labour shortage
    • Innovations around wellbeing and responsible tourism will appeal
  4. Market Size and Performance

    • Domestic holiday market will continue to benefit from slower international travel recovery
      • Figure 11: Short, medium and long-term impact of COVID-19 on the domestic holiday market, 2020-25
    • COVID-19 hits after record year for the UK’s domestic holiday market
    • Demand for summer staycations in 2021 exceeded pre-COVID-19 levels…
    • …but dip in consumer confidence will slow demand in the fourth quarter of 2021
      • Figure 12: Volume and value* of domestic holidays taken by British residents, 2015-21
  5. Market Forecast

    • Cautious travellers will continue to holiday more in the UK in 2022…
    • …but uncertainty about the upcoming winter period and rising living costs hamper recovery
      • Figure 13: Forecast volume of domestic holidays taken by British residents (prepared on 12 November 2021), 2016-26*
      • Figure 14: Forecast value* of domestic holidays taken by British residents, at current prices, (prepared on 12 November 2021), 2016-26
    • Market drivers and assumptions
      • Figure 15: Key drivers affecting Mintel’s market forecast, 2017-26
    • Forecast methodology
  6. COVID-19 Scenario Performance

    • Mintel’s approach to predicting the impact of COVID-19
    • Fundamental differences in how COVID-19 is affecting consumer markets
    • A rapid COVID recovery will have less impact on the recovery of domestic travel
      • Figure 16: COVID-19 scenario forecasts for the volume of domestic holidays taken by British residents, 2016-26
      • Figure 17: COVID-19 scenario forecasts for the value of domestic holidays taken by British residents, 2016-26
    • COVID-19 market disruption: risks and outcomes
      • Figure 18: Summary of Mintel scenario expectations and the impact on the domestic holidays market, 2021
  7. Market Drivers

    • Booking levels remained below pre-COVID-19 levels, but the gap continued to narrow
      • Figure 19: Holiday bookings in the last three months, 2019 vs 2021
    • Intent to book holidays remains relatively strong…
    • …but many consumers are uncertain about the coming winter period
      • Figure 20: Plans to book a holiday in the next three months, 2019 vs 2021
    • Consumers’ financial confidence dropped significantly in October 2021
    • Some consumers will become more price-sensitive…
    • …while others are will use lockdown savings to upgrade
      • Figure 21: The Financial Confidence Index, 2015-21
    • National Lottery Days Out campaign launched in Autumn 2021
    • Air Passenger Duty on domestic flights set to halve from April 2023
    • Met Office sees trend of warming in its statistics
      • Figure 22: UK mean temperature in °C, by quarter, 2013-21
  8. Launch Activity and Innovation

    • Growing number of responsible tourism initiatives
    • BrewDog’s plans to offer eco-cabins and a campsite in its Lost Forest
    • Low-cost train connection between London and Edinburgh launched on 25 October 2021
    • Encouraging consumers to experience the great outdoors
    • Cotswolds Hideaways offers local rural experiences
    • Llys-y-Frân Lake opens after a £4 million redevelopment
    • Making activities more flexible and findable
    • Vox City Walks introduced its Hop-on Hop-off walking tour concept to London
    • Love to visit launches booking experiences platform in the UK
    • Packages and itineraries to appeal to domestic travellers
    • Hilton appeals to families with specially curated experience packages
    • Cruise lines shifted focus to domestic summer sailings
    • Funds and campaigns to encourage domestic tourism
    • Scotland’s Destination & Sector Marketing Fund to boost domestic tourism
    • UK-wide “Escape the Everyday” campaign boosted at the start of the summer holidays
  9. Domestic Holiday Taking

    • Holiday participation drops by a third in the year to August 2021
    • Highest drop in domestic holiday participation among over-55s
      • Figure 23: UK holiday taking, 2016-21
  10. Domestic Holidaying Intentions

    • Over half of UK adults plan to take a staycation in the coming year
      • Figure 24: UK holidaying intentions, 2020-21
    • Social travel important driver for young travellers
      • Figure 25: UK holiday taking vs holidaying intentions, 2021
    • Consumers continue to adopt a wait-and-see attitude
    • The winter period will likely prove most challenging
      • Figure 26: UK holidaying intentions per quarter, by age, 2021
  11. Changes to Frequency

    • Strong desire to take more staycations in 2021
      • Figure 27: UK holidaying frequency in the next 12 months, 2018-21
    • Concerns about international travel and Brexit favour the domestic market
    • Customer experience and product innovation will be key to sustaining popularity when overseas travel eventually bounces back
      • Figure 28: Reasons for taking more UK holidays in the next 12 months, 2020-21
    • Increasing polarisation will boost popularity of both low-cost options and holiday upgrades
      • Figure 29: Reasons for taking fewer UK holidays in the next 12 months, 2021
  12. Domestic Holidaying Destinations

    • Wales benefits from high interest in rural breaks
    • Scotland’s city product shows growth potential
    • London has a strong appeal to affluent travellers
      • Figure 30: UK holiday destinations, visited in the 12 months to July 2019 vs considered in the 12 months following August 2021
  13. Domestic Holiday Types

    • Nature-based experiences have high growth potential
      • Figure 31: Interest in types of holiday, 2021
  14. Domestic Holiday Activities

    • Local producers play a key role in domestic holiday experience
    • Technology plays a key role in connecting travellers with the right experiences
      • Figure 32: Interest in domestic holiday activities, 2021
  15. Attitudes towards Domestic Holidays

    • High interest in exploring new parts of the UK
      • Figure 33: Attitudes towards domestic holidays, 2021
    • Millennial parents show highest interest in domestic cruises
      • Figure 34: Interest in domestic cruise holidays – CHAID analysis, 2021
    • Acceptance of tourism lower in rural areas
    • Opportunity to connect more local businesses with travellers
      • Figure 35: Attitudes towards tourists staying in people’s local area, 2021
  16. Appendix – Data Sources, Abbreviations and Supporting Information

    • Abbreviations
    • Consumer research methodology
    • CHAID methodology
      • Figure 36: Domestic Tourism – CHAID, 2021
  17. Appendix – Central Forecast Methodology

    • Volume forecast and prediction intervals for domestic holidays
      • Figure 37: Lower bound, central and upper bound forecast for the volume of domestic holidays taken by British residents, 2021-26
    • Value forecast and prediction intervals for domestic holidays
      • Figure 38: Lower bound, central and upper bound forecast for the value of domestic holidays taken by British residents, 2021-26
    • Market drivers and assumptions
      • Figure 39: Key drivers affecting Mintel’s market forecast, 2020-26
    • Forecast methodology
  18. Appendix – COVID Scenario Performance Methodology and Assumptions

    • Volume scenario performance for domestic holidays
      • Figure 40: COVID-19 scenario forecasts for the volume of domestic holidays taken by British residents, 2020-26
    • Value scenario performance for domestic holidays
      • Figure 41: COVID-19 scenario forecasts for the value of domestic holidays taken by British residents, 2020-26
    • Rapid COVID recovery, central and extended COVID disruption scenarios outline
    • Scenario 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

Mintel provides a range of market information, frequently through the category level, including market size and forecasting, complete with market drivers that illustrate the forces that shape a category or 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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