2022
9
UK Domestic Tourism Market Report 2022
2022-11-26T03:07:05+00:00
OX1100555
2195
157981
[{"name":"Travel Destinations","url":"https:\/\/store.mintel.com\/industries\/holidays-travel\/travel-destinations"}]
Report
en_GB
“Although the domestic market provides an attractive option for those looking to save money on travelling abroad, there is also a group of consumers who are looking forward to exploring…

UK Domestic Tourism Market Report 2022

£ 2,195 (Excl.Tax)

Description

“Although the domestic market provides an attractive option for those looking to save money on travelling abroad, there is also a group of consumers who are looking forward to exploring destinations outside of the UK after these were off limits for so long. The countryside has the potential to appeal to Brits’ interest in exploring the outdoors, while stimulating the development of unique accommodation will help regions to attract more visitors.”

– Marloes de Vries, Associate Director – Travel, November 2022

Key issues covered in this Report:

  • How the rising cost of living will impact the recovery of the domestic holiday market.
  • Which UK regions show potential for growth.
  • Important factors when choosing a holiday destination in the UK.
  • Attitudes towards domestic holidays.

Table of Contents

  1. Overview

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

    • The five-year outlook for the domestic holiday market
      • Figure 1: Category outlook, 2022-27
    • The market
    • 2022 presented both challenges and opportunities for the domestic market
    • Soaring inflation hampers recovery
      • Figure 2: Forecast volume of domestic holidays taken by British residents, at current prices, 2017-27
      • Figure 3: Forecast value* of domestic holidays taken by British residents, at current prices, 2017-27
    • Consumer confidence remains at a low level
    • Fuel prices add to the higher cost of domestic holidays
    • Companies and brands
    • Brands invest in unique accommodation to stand out
    • Visit East Lothian’s app uses real time data to show crowdedness to help manage visitor flows
    • Butlins added a record number of £49 Showtime breaks in 2023
    • The consumer
    • Domestic holiday participation remained below pre-COVID levels in the year to August 2022
      • Figure 4: UK holiday taking, 2016-22
    • Intent to take a domestic holiday increased slightly
      • Figure 5: UK holidaying intentions, 2020-22
    • There remains a desire to take more staycations than last year
    • Opportunities to sell premium experiences remain
      • Figure 6: UK holidaying frequency in the next 12 months, by demographics, 2022
    • More Brits will holiday in the UK to save money compared to travelling abroad
      • Figure 7: Reasons for taking more UK holidays in the next 12 months, 2020-22
    • On the flip side, the income squeeze will force some consumers to take fewer staycations
      • Figure 8: Reasons for taking fewer UK holidays in the next 12 months, 2021-22
    • Scotland and Wales continue to have high growth potential
    • Expensive image puts recovery of visits to London under pressure
      • Figure 9: Considered UK holiday destinations in the next 12 months, 2021-22
    • Scenery the leading factor when deciding on a UK holiday destination
      • Figure 10: Most important factors when deciding on a UK holiday destination, 2022
    • The UK offers an attractive option for those with a desire to travel multiple times throughout the year
      • Figure 11: Attitudes towards domestic holidays, 2022
    • The UK has the opportunity to appeal more to families
      • Figure 12: Attitudes towards the rising cost of living and holidays, 2022
  3. Issues and Insights

    • Domestic holidays could provide a more affordable holiday option…
    • … but face competition from built-up pent-up demand for international travel
    • Unique accommodation will help to attract more visitors to a region
  4. Market Size and Performance

    • Rise in average spend per trip helped market value recover at a faster pace
    • 2022 presented both challenges and opportunities for the domestic market
      • Figure 13: Volume and value of domestic holidays taken by British residents, 2015-22
  5. Market Forecast

    • The five-year outlook for the UK travel market
      • Figure 14: Category outlook, 2022-27
    • Soaring inflation hampers recovery
      • Figure 15: Forecast volume of domestic holidays taken by British residents, at current prices, 2017-27
      • Figure 16: Forecast value* of domestic holidays taken by British residents, at current prices, 2017-27
    • Learnings from the last income squeeze
    • Forecast methodology
  6. Market Drivers

    • Consumer confidence remains at a low level
      • Figure 17: The Financial Confidence Index, 2009-22
    • Holiday bookings were comparable to pre-COVID-19 levels in October 2022
      • Figure 18: Holiday bookings in the last three months, 2016-22
    • Holiday booking intentions were below pre-pandemic levels in October 2022
      • Figure 19: Plans to book a holiday in the next three months, 2016-22
    • Warmer weather increases the appeal of the UK as a domestic holiday destination
      • Figure 20: UK mean temperature in °C, by quarter, 2013-22
    • Fuel prices add to the higher cost of domestic holidays
      • Figure 21: Diesel and unleaded petrol fuel pump prices, 2020-22
    • APD changes will reduce the tax on domestic flights from April 2023
    • UK government aims to achieve net zero for all domestic flights by 2040
  7. Launch Activity and Innovation

    • Brands invest in unique accommodation to stand out
    • Airbnb launches fund to help 100 people build extraordinary accommodation
    • Landal GreenParks creates new architect led accommodation
    • Helping travellers to avoid crowds
    • Visit East Lothian’s app uses real time data to show crowdedness to help manage visitor flows
    • New platforms aimed at making privately owned land more accessible
    • Sustainability initiatives in the domestic market
    • Scotland funds infrastructure projects to improve the visitor experience in rural areas
    • Whitbread started constructing its first all-electric Premier Inn hotel in southwest England
    • Polarisation leads to product launches in both the premium and budget segments
    • Hoseasons launches high-end accommodation under Magnificent Collection
    • Butlins added a record number of £49 Showtime breaks in 2023
  8. Domestic Holiday Taking

    • Domestic holiday participation remained below pre-COVID levels in the year to August 2022
    • Concerns triggered by COVID-19
    • Lifting of international travel restrictions
    • Intensifying cost of living crisis
      • Figure 22: UK holiday taking, 2016-22
  9. Domestic Holidaying Intentions

    • Intent to take a domestic holiday increased slightly
      • Figure 23: UK holidaying intentions, 2020-22
  10. Changes to Frequency

    • There is a desire to take more staycations than last year
      • Figure 24: UK holidaying frequency in the next 12 months, 2020-22
    • Opportunities to sell premium experiences remain
      • Figure 25: UK holidaying frequency in the next 12 months, by demographics, 2022
  11. Reasons for Changing Holidaying Habits

    • More Brits will holiday in the UK to save money compared to travelling abroad
      • Figure 26: Reasons for taking more UK holidays in the next 12 months, 2020-22
    • On the flip side, the income squeeze will force some consumers to take fewer staycations
      • Figure 27: Reasons for taking fewer UK holidays in the next 12 months, 2021-22
  12. Domestic Holiday Destinations

    • Scotland and Wales continue to have high growth potential
    • Expensive image puts recovery of visits to London under pressure
      • Figure 28: Considered UK holiday destinations in the next 12 months, 2021-22
  13. Important Factors when Choosing a Destination

    • Scenery the leading factor when deciding on a UK holiday destination
    • Premiumisation
    • Physically-challenging activities
    • Into the ‘wilderness’
      • Figure 29: Most important factors when deciding on a UK holiday destination, 2022
    • Unique accommodation can attract more visitors to a region
      • Figure 30: Most important factors when deciding on a UK holiday destination, by age, 2022
  14. Attitudes Towards Holidays

    • Strong desire to gain insight into crowdedness at locations
    • The UK offers an attractive option for those with a desire to travel multiple times throughout the year
      • Figure 31: Attitudes towards domestic holidays, 2022
    • The UK has the opportunity to appeal more to families
      • Figure 32: Attitudes towards the rising cost of living and holidays, 2022
  15. Appendix – Data Sources, Abbreviations and Supporting Information

    • Abbreviations
    • Consumer research methodology
  16. Appendix: Forecast Methodology

    • Volume forecast and prediction intervals for domestic holidays
      • Figure 33: 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 34: Lower bound, central and upper bound forecast for the value of domestic holidays taken by British residents, 2022-27
    • Value forecast domestic holidays at constant prices
      • Figure 35: Value of domestic holidays taken by British 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

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.

Consumer

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

Brand/Company

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

Market reports provide appendices of data to support the research and insight produced. Our databooks* are easily manipulated and downloadable to support your research needs and covers factors from consumer attitudes to market forecasts.

*databooks not available with UK B2B Industry reports.

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