2024
9
UK Holiday Planning and Booking Process Market Report 2024
2024-07-01T15:04:20+01:00
REPC2E8A4FA_DB4B_49EB_BAAF_77675F51B215
2195
174239
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Report
en_GB
Despite encouraging signs of falling inflation and rising consumer confidence, people are still overwhelmingly likely to say the cost of living crisis is still a problem. While holidays remain a…

UK Holiday Planning and Booking Process Market Report 2024

£ 2,195 (Excl.Tax)

Report Summary

Stay ahead of the curve and future-proof your business with Mintel’s UK Holiday Planning and Booking Process Market Report 2024. Our full report is packed with consumer-led market intelligence, the latest market research, holiday booking trends, and consumer behaviours concerning how they book domestic and overseas holidays. Get a 360° view of the holiday sector, including market size, market share and forecasted growth to help you align your business strategy with the needs of your audience.

Below, we’ve handpicked the key insights analysed in the full report and summarised the core topics.

Key Topics Discussed in the Full Report

  • How the domestic and overseas holiday markets are expected to perform over the next five years.
  • Trends in main holidaying intentions, including plans to holiday in the UK and abroad and the types of trips planned
  • Expected booking method and reasons travellers’ choose to book online or offline
  • Interest in using various types of search filters when booking online
  • Ways that some travellers plan to limit costs when booking a holiday
  • Consumers’ perceptions of seven key players in the holiday market

Holiday Booking Market Outlook

Despite encouraging signs of falling inflation and rising consumer confidence, people are still overwhelmingly likely to say the cost of living crisis is still a problem. While holidays remain a priority, many travellers want to cut costs. Spending more time searching for good deals is their main strategy to save money, while lower-cost accommodation, shorter holidays, lower-cost transport and off-season holidays are also popular methods.

  • Holiday booking market size: Mintel estimates that spending on domestic holidays taken by British residents is will reach £12.8 billion in 2024.

Holiday Booking Trends and Challenges for Brands

A growing tourism industry is increasing pressure on certain destinations, with protests against overtourism taking place in the Canary Islands and Majorca. To protect the experience of both travellers and locals, travel companies should increase their focus on connecting travellers with holiday destinations that have the ambition and capacity to grow.

The majority of travellers would like more support from travel companies during the planning and booking process. Advances in technology, particularly AI, will make it easier for travellers to book itineraries online. However, as many travellers are sceptical of the technology, opportunities are also emerging for travel brands to promote trusted human expertise.

  • Holiday booking trends: 43% of consumers booking their holiday offline do so as they prefer human interaction.

Readers of this report may also be interested in our UK Holiday Review Market Report 2024, or our range of Holidays and Travel Market Research.

Meet the Expert

Marloes is a research analyst at Mintel, focusing on the travel sector. She previously worked as a researcher for the British and Dutch tourist boards, after having been a project leader in the field of tourism and leisure at a leading market research agency in Amsterdam. Marloes holds a degree in Tourism Management.

Brands will be challenged to find a balance between simplifying booking processes through the use of AI and harnessing the value of ‘real’ human interactions.

Marloes De Vries

Marloes De Vries
Travel Analyst

 

 

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Table of Contents

  1. Executive Summary

    • Opportunities for the UK travel market
    • Three opportunities related to holiday planning and booking
    • Market dynamics and outlook
    • Market size & forecast: domestic holidays
    • Market size & forecast: overseas holidays
    • Market predictions
    • By 2029, the value of the domestic holiday market is forecast to have grown to £15.8 billion
    • By 2029, the value of the overseas holiday market is forecast to have grown to £63.5 billion
    • The emotional impact of the cost of living crisis is still prevalent
    • Graph 1: perception of the state of the cost of living crisis in the UK, 2024
    • Growing tourism industry increases the importance of suggesting alternative destinations
    • What consumers want and why
    • Brands that offer the most competitive mobile experience will appeal
    • Graph 2: expected booking channel for main holiday in the next 12 months, 2024
    • Human interaction is the driving force behind offline bookings
    • Holiday type and property type are the most desired search filters
    • Graph 3: interest in filter options on a travel company’s website, 2024
    • Price sensitivity fuels need to increase loyalty
    • Opportunity to provide more support during the planning and booking process
    • Graph 4: attitudes towards planning and booking holidays, 2024
    • Innovation and marketing
    • Advances in AI
    • Jet2.com, TUI Group and P&O Cruises were the biggest ad spenders in 2023
    • Booking.com remains the most used brand
    • Booking.com, Jet2holidays and easyJet holidays are most closely associated with offering good value
    • Graph 5: association with offering good value, among those who have heard of the brand, 2019 – 2024
  2. Market Dynamics

    • Market size – domestic holidays
    • The volume of domestic holidays declined in 2023
    • Volume of domestic holidays expected to increase after having dipped in 2023
    • Graph 6: volume of domestic holidays taken by British residents, 2017-24
    • Spend on domestic holidays is expected to grow slightly faster than the volume
    • Graph 7: value of domestic holidays taken by British residents, 2017-24
    • Market size – overseas holidays
    • The number of overseas holidays exceeded pre-pandemic levels for the first time in Q4 2023
    • Volume of overseas holidays expected to continue to grow
    • Graph 8: volume of overseas holidays taken by UK residents, 2017-24
    • The value of the overseas holiday market is expected to reach a new record high in 2024
    • Graph 9: value of overseas holidays taken by UK residents, 2017-24
    • Market forecast
    • By 2029, the volume of domestic holiday is forecast to have grown to 45.7 million holidays
    • By 2029, the value of the domestic holiday market is forecast to have grown to £15.8 billion
    • By 2029, the volume of overseas holiday is forecast to have grown to 66.3 million holidays
    • By 2029, the value of the overseas holiday market is forecast to have grown to £63.5 billion
    • Forecast for holiday market looks promising
    • Macro-economic factors
    • Falling inflation reduces pressure on household finances
    • Graph 10: CPI inflation rate, 2021-24
    • Consumer confidence is stronger than one year ago
    • Graph 11: the financial confidence index, 2016-24
    • The emotional impact of the cost of living crisis is still prevalent
    • Graph 12: perception of the state of the cost of living crisis in the UK, 2024
    • Social, environmental and legal factors
    • The importance of optimising the mobile experience
    • Graph 13: devices used to search for holidays or travel in the last six months, by age, 2024
    • Mixed attitudes towards AI
    • Growing tourism industry increases the importance of suggesting alternative destinations
    • Lack of knowledge is a key barrier towards sustainable holidays
    • Holiday bookings and booking intentions
    • Consumers continue to prioritise holidays
    • Graph 14: holiday bookings in the last three months, 2023 and 2024
    • Holiday booking intentions remain at a relatively high level
    • Graph 15: plans to book a holiday in the next three months, 2023 and 2024
    • The majority of travellers were yet to book their main holiday in April 2024
    • Graph 16: booking period for main holiday, by destination, 2024
  3. What Consumers Want and Why

    • Main holidaying intentions
    • More Brits plan to take a holiday in the coming year
    • Graph 17: holidaying intentions in the next 12 months, 2021-24
    • Appetite to travel overseas has continued to recover
    • Graph 18: planned destination for the main holiday in the next 12 months, 2021-24
    • Plans to spend the main break overseas are comparable to pre-pandemic levels for the first time
    • Graph 19: Destinations visited before the pandemic vs intentions to visit for main holiday in the next 12 months, 2020 and 2024
    • Increased demand for domestic beach holidays, group touring holidays and luxury holidays
    • Graph 20: expected holiday type for main holiday in the UK, 2021-24
    • Overseas beach and city destinations continue to dominate
    • Graph 21: expected holiday type for main holiday abroad, 2021-24
    • Holiday booking channels
    • Online bookings continue to dominate the market
    • Smartphone bookings continue to rise
    • Smartphone is the most important booking channel for 25-34 year olds
    • Graph 22: expected booking channel for main holiday, by age, 2024
    • Luxury holidays most likely to be booked in-store
    • Uniquely human elements will become increasingly important as a contrast to faceless algorithms
    • Reasons for booking online
    • Convenience and easy price comparison drive online holiday bookings
    • Graph 23: main reasons for booking online instead of by telephone or in store, 2024
    • Convenience is an important driver among older travellers to book online
    • Graph 24: main reasons for booking online instead of by telephone or in store, by age, 2024
    • Improve price comparisons on smaller screens
    • Families are more likely to prioritise easy access to reviews
    • Reasons for booking offline
    • Human interaction is the driving force behind offline bookings
    • Graph 25: main reasons for booking by telephone or in store instead of online, 2024
    • Preference for human interaction is driven by over-45s
    • Younger travellers are more likely to book offline for better deals and customisation
    • Graph 26: main reasons for booking by telephone or in store instead of online, by age, 2024
    • Travel expertise is the second biggest driver for travel agent bookings
    • Graph 27: main reasons for booking by telephone or in store instead of online, by booking channel, 2024
    • Competitive strengths of travel agents compared to AI include human touch and reliability
    • Search filter preferences
    • Holiday type and property type are the most desired search filters
    • Graph 28: interest in filter options on a travel company’s website, 2024
    • Equal interest in star rating and customer review filters
    • Graph 29: attitudes towards trust in an accommodation’s star rating and online customer reviews, 2024
    • Involving consumers in the fight against climate change
    • The younger the traveller, the more important inclusive search filters are
    • Graph 30: interest in filter options on a travel company’s website, by age, 2024
    • Younger and open-minded
    • Limiting costs when booking a holiday
    • Travellers remain cautious with their holiday budgets
    • Flexible booking systems will help increase revenue
    • Many price-sensitive travellers spend more time looking for good deals
    • Graph 31: expected ways to reduce spend on the main holiday in the next 12 months, 2024
    • Price sensitivity fuels need to increase loyalty
    • Attitudes towards planning and booking holidays
    • Opportunity to provide more support during the planning and booking process
    • Booking processes can be made easier by AI but the ‘real’ human connection can offer a counter trend
    • Graph 32: attitudes towards using an AI chatbot to help plan a holiday, 2024
    • AI adoption is extremely low among older travellers
    • Graph 33: attitudes towards using an AI chatbot to help plan a holiday, by age, 2024
    • Social media influenced vast majority of younger travellers
    • Graph 34: agreement with ‘I have felt inspired to visit a holiday destination after seeing photos/videos on social media’, 2024
    • Flexible payment plans will help appeal to families
    • About two thirds of travellers understand what ATOL or ABTA protection means
    • Graph 35: awareness of ATOL and ABTA protection, 2024
  4. Innovation And Marketing Trends

    • Launch activity and innovation
    • Expedia is testing its new AI-powered travel assistent Romie
    • Other recent launches in the field of travel & AI
    • Helping travellers to choose their next holiday destination
    • More companies add carbon labels
    • Brands develop standards for quality ratings
    • Enhancing flexibility
    • Brands have invested in self-serve options
    • Connecting travellers with experiences
    • Advertising and marketing activity
    • Above-the-line spend by travel and transport providers increased slightly in 2023
    • Graph 36: total above-the line, online display and direct mail advertising expenditure on ads by travel and transport providers, 2016-23
    • Jet2.com, TUI Group and P&O Cruises were the biggest ad spenders in 2023
    • TUI launched its first ever Christmas ad in November 2023
    • P&O Cruises launched ‘Holiday Like Never Before’ campaign in December 2023
    • easyJet launched the ‘Get Out There’ campaign in July 2023
    • loveholidays launched its first national brand advertising campaign in February 2024
  5. Brand Research

    • Mintel’s brand research in the holiday planning and booking market
    • Jet2holidays continues to excel when it comes to customer satisfaction
    • Booking.com receives highest score on trust and differentiation
    • Offering good value is an important component of easyJet holidays’ brand image
    • Three in 10 perceive Thomas Cook as a reliable brand
    • Booking.com, Jet2holidays and easyJet holidays are most closely associated with offering good value
    • Graph 37: association with offering good value, among those who have heard of the brand, 2019 – 2024
    • Jet2holidays and TUI attract the highest share of over-65, making them well positioned to benefit from an ageing population
    • On the Beach attracted the highest share of affluent travellers
  6. Appendix

    • Supplementary data
    • Expected booking channel for main holiday
    • Graph 38: expected booking channel for main holiday, 2021-24
    • Expected ways to reduce spend on the main holiday
    • Graph 39: expected ways to reduce spend on the main holiday in the next 12 months, by destination for main holiday, 2024
    • Overseas holidays by quarter
    • Top 10 overseas holiday destinations
    • Market forecast data and methodology
    • Market size – domestic holidays
    • Market size – overseas holidays
    • Market forecast and prediction intervals – volume of domestic holidays
    • Market forecast and prediction intervals – value of domestic holidays
    • Market forecast and prediction intervals  – volume of overseas holidays
    • Market forecast and prediction intervals –  value of overseas holidays
    • Forecast methodology
    • Report scope and definitions
    • Market definition
    • Abbreviations and terms
    • Methodology
    • Consumer research methodology
    • Nielsen Ad Intel coverage

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