2021
9
UK Holiday Planning and Booking Process Market Report 2021
2021-07-06T04:10:33+01:00
OX1046063
2195
140060
[{"name":"Holiday Booking","url":"https:\/\/store.mintel.com\/industries\/holidays-travel\/holiday-booking"}]
Report
en_GB
“The low volume of bookings in the past year has given companies the chance to redesign the customer experience with improved flexibility, efficiency and relevancy in order to better appeal…

UK Holiday Planning and Booking Process Market Report 2021

£ 2,195 (Excl.Tax)

Description

Providing the most comprehensive and up-to-date information and analysis of the UK Holiday Planning and Booking Process market, including the behaviours, preferences and habits of the consumer.

Although the share of online bookings for holidays was already high prior to the pandemic, it is expected to increase further due to increased interest among over-55s to book online. 77% of over55s had booked or were planning to book their main holiday in the 12 months following March 2021 online, up from 70% who booked online prior to the pandemic. Increased online activities during the pandemic are likely to have made this demographic more confident in making online transactions.

The domestic holiday market has benefited from the cautious approach of the UK government to restart international travel. The share of Brits planning to take their main holiday in the UK now exceeds pre-COVID-19 levels, while the initial enthusiasm about travelling overseas has subsided. Encouraging bookings for the late-summer and winter season will become increasingly important as many will be reluctant to travel abroad in the short term.

The speed of recovery will depend heavily on the easing of restrictions by both the UK government and the destination itself, while a vaccine-resistant mutation of COVID-19 will be disastrous for international travel. Amid the maze of rules, travellers will be looking for reassurance and simplicity when making their holiday arrangements.

There is also a group of consumers keen to splash out on travel to make up for a prolonged period with limited options to travel. Brands have the opportunity to enrich the holiday planning and booking process with options to upgrade to more premium options, longer stays or add-on experiences.

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

Quickly understand

  • The impact of COVID-19 on the domestic and overseas holiday markets.
  • Trends in booking intentions and bookings.
  • Holiday booking channel and research sources.
  • Purchase drivers when choosing a travel company.
  • Attitudes towards entry requirements.
  • Consumers’ perceptions of seven key players in the holiday market.

Covered in this report

Brands: Booking.com, TUI, TripAdvisor, Airbnb, easyJet Holidays, Marriott, Mitsui Fudosan Hotel Management, Expedia Travel, Jet2.com, Imagine Group, First Choice, British Airways, Reader Offers, P&O Cruises, Trivago, On The Beach, All Accor Live Limitless, Saga Holidays, Fred Olsen Travel, Riviera Travel.

Expert analysis from a specialist in the field

Written by Marloes de Vries, a leading analyst in the Food & Drink sector, her extensive knowledge delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

The low volume of bookings in the past year has given companies the chance to redesign the customer experience with improved flexibility, efficiency and relevancy in order to better appeal to customers’ individual needs and wants. COVID-19 also increased the pressure on brands to diversify revenue streams, with many looking to take a larger piece of the experiences sector.
Marloes de Vries
Associate Director – Travel

Table of Contents

  1. Overview

    • Key issues covered in this Report
    • COVID-19: market context (created on 25 June 2021)
    • Economic and other assumptions
    • Products covered in this Report
  2. Executive Summary

    • Impact of COVID-19 on the UK travel market
      • Figure 1: Short-, medium- and long-term impact of COVID-19 on the UK travel market, 25 June 2021
    • Domestic market benefits from slow opening up of international travel, but Delta variant poses threat
    • Value of the domestic market still expected to recover in 2021
      • Figure 2: COVID-19 scenario forecasts for the value of domestic holidays taken by British residents, 2016-26
    • High levels of uncertainty about the lifting of international travel restrictions remain
    • Cautious optimism for later in the summer
      • Figure 3: COVID-19 scenario forecasts for the value* of overseas holidays taken by UK residents, 2016-26
    • Companies and brands
    • Further investments in personalisation
    • More brands are tapping into blurring lines between work and leisure
    • Family travel-oriented tech start-up, tripAbrood, gets additional funding
    • Above-the-line spend by travel and transport providers more than halved in 2020
    • Expedia invests heavily in new brand proposition
    • The consumer
    • Initial enthusiasm about travelling overseas in 2021 has subsided
    • Demand to take main holiday in UK exceeds pre-COVID-19 levels
      • Figure 4: Main holidaying intentions by destination, 2021
    • High demand for rural escapes and self-drive itineraries in the UK
      • Figure 5: Participation and future ‘main holidaying’ intentions in the UK, by holiday type, 2020 vs 2021
    • Beach holidays and luxury travel in high demand among overseas travellers
      • Figure 6: Participation and future ‘main holidaying’ intentions abroad, by holiday type, 2020 vs 2021
    • Customer reviews and price comparison websites play a crucial role in the research process
      • Figure 7: Usage of information sources when researching a holiday, by age, 2021
    • Increased interest among older generation to book online
      • Figure 8: Booking channel for main holiday, 2021
    • There continues to be demand for travel expertise
    • Flexible cancellation and rebooking policies continue to be important amid COVID-19 uncertainty
    • Cover for COVID-related risks a must for many travellers
      • Figure 9: Factors influencing choice of travel company, by destination, 2021
    • Majority of travellers would like to see entry requirements integrated in search technology
    • High desire to filter out destinations that require self-isolation upon arrival or return
      • Figure 10: Further interest in filtering search results by entry requirements, 2021
    • Costs of testing measures a big concern for families
  3. Issues and Insights

    • More and more companies are looking to take a larger piece of the experiences sector
    • Increased focus on personalisation
  4. The Market – Key Takeaways

    • Domestic market benefits from slow opening up of international travel, but Delta variant poses threat
    • Value of the domestic market still expected to recover in 2021
    • High levels of uncertainty about the lifting of international travel restrictions remain
    • Cautious optimism for later in the summer
  5. Market Size and Performance

    • Slow opening up of international travel has made staycations a more favourable option in 2021
      • Figure 11: Short-, medium- and long-term impact of COVID-19 on the UK travel market, 25 June 2021
    • COVID-19 hits after holiday market reaches record heights
      • Figure 12: Volume and value* of domestic holidays taken by British residents, 2015-20
      • Figure 13: Volume and value* of overseas holidays taken by UK residents, 2015-20
  6. Market Forecast

    • Domestic market benefits from slow opening up of international travel, but Delta variant poses threat
      • Figure 14: Forecast volume of domestic holidays taken by British residents (prepared on 25 June 2021), 2016-26*
      • Figure 15: Forecast value* of domestic holidays taken by British residents, at current prices, (prepared on 25 June 2021), 2016-26
    • High levels of uncertainty about the lifting of international travel restrictions remain
    • Cautious optimism for later in the summer
      • Figure 16: Forecast volume of overseas holidays taken by UK residents (prepared on 25 June 2021), 2016-26*
    • …but an increase in average prices will mitigate some of the damage
      • Figure 17: Forecast value* of overseas holidays taken by UK residents at current prices (prepared on 25 June 2021), 2016-26**
    • Longer-term prospects remain positive
  7. 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 18: COVID-19 scenario forecasts for the value of domestic holidays taken by British residents, 2016-26
    • Extended COVID disruption will be disastrous for international travel
      • Figure 19: COVID-19 scenario forecasts for the value* of overseas holidays taken by UK residents, 2016-26
    • COVID-19 market disruption: risks and outcomes
      • Figure 20: Summary of Mintel scenario expectations and the impact on the holidays market, June 2021
  8. Market Drivers

    • Financial confidence continues to grow
      • Figure 21: The financial confidence index, January 2015-June 2021
    • Travel industry in shock after first traffic light list review in early June
    • Government expands green list during the second update in late June
    • High levels of uncertainty remain, despite green list expansion…
    • …but planned exemption of vaccinated travellers from quarantine provides optimism
      • Figure 22: Traffic light system for international travel, 21 May 2021
    • Delta variant causes delay to the last stage on the roadmap out of lockdown
    • Destinations respond differently to the UK’s rise in COVID-19 cases
    • UK government launched Tourism Recovery Plan
  9. Companies and Brands – Key Takeaways

    • COVID-19 created the opportunity to redesign the customer experience
    • More brands are tapping into blurring lines between work and leisure
    • Family travel-oriented tech start-up, tripAbrood, gets additional funding
    • Above-the-line spend by travel and transport providers more than halved in 2020
    • Expedia invests heavily in new brand proposition
  10. Launch Activity and Innovation

    • Safety and flexibility information has become an integral part of the planning and booking process
    • Increasing number of brands offer insurance products
    • Further investments in personalisation
    • Airbnb enhanced flexibility of its planning and booking process and added new filters
    • easyJet Holidays uses AI to show more relevant and engaging recommendations
    • More brands are tapping into blurring lines between work and leisure
    • Mitsui Fudosan Hotel Management allows stays in any of 35 selected hotels for a fixed monthly fee
    • Marriott opens serviced apartments to tap into longer stay trend
    • COVID-19 has accelerated digital innovation
    • Family travel-oriented tech start-up, tripAbrood, gets additional funding
  11. Advertising and Marketing Activity

    • Above-the-line spend by travel and transport providers more than halved in 2020
      • Figure 23: Total above-the line, online display and direct mail advertising expenditure on ads by travel and transport providers, 2016-20
    • Expedia invests heavily in new brand proposition
      • Figure 24: Top 15 above-the line, online display and direct mail advertising expenditure on ads by travel and transport providers, 2020
    • Nielsen Ad Intel coverage
  12. Brand Research

    • Brand map
      • Figure 25: Attitudes towards and usage of selected brands, March 2021
    • Key brand metrics
      • Figure 26: Key metrics for selected brands, March 2021
    • Brand attitudes: easyJet holidays closely associated with offering good value
      • Figure 27: Attitudes, by brand, March 2021
    • Brand personality: TripAdvisor most associated with being ethical
      • Figure 28: Brand personality – Macro image, March 2021
    • TUI perceived as a caring and welcoming brand but some find it overpriced
      • Figure 29: Brand personality – Micro image, March 2021
    • Brand analysis
    • TripAdvisor front runner in usage, awareness and recommendation levels
      • Figure 30: User profile of TripAdvisor, March 2021
    • Booking.com has a high share of committed users
      • Figure 31: User profile of Booking.com, March 2021
    • Expedia aims to become a trusted travel companion
      • Figure 32: User profile of Expedia, March 2021
    • TUI still most strongly associated with good reputation, despite lower score
      • Figure 33: User profile of TUI, March 2021
    • Jet2holidays continues to impress customers despite pandemic
      • Figure 34: User profile of Jet2holidays, March 2021
    • easyJet holidays has high growth potential
      • Figure 35: User profile of easyJet holidays, March 2021
    • On the Beach has a relatively young user profile
      • Figure 36: User profile of On the Beach, March 2021
    • Reading word clouds
  13. The Consumer – Key Takeaways

    • Demand to take main holiday in UK exceeds pre-COVID-19 levels…
    • …while the initial enthusiasm about travelling overseas has subsided
    • Reassurance and simplicity key in the holiday planning and booking process
    • Customer reviews and price comparison websites play crucial role in research process
    • Share of online bookings expected to increase further
    • There continues to be demand for travel expertise
  14. Impact of COVID-19 on Consumer Behaviour

    • Appetite to book holidays declined in June 2021
      • Figure 37: Actual bookings and plans to book a holiday in the next three months, 2019-21
    • Exposure anxiety has not increased despite rise in COVID-19 cases
      • Figure 38: Mintel COVID-19 exposure anxiety and lifestyle impact index, 28 February 2020-18 June 2021
    • Travel bans have raised awareness of the impact on the environment
    • New working patterns facilitate growth in pet ownership
  15. Holiday Destination

    • Initial enthusiasm about travelling overseas in 2021 has subsided
    • Younger generations remain most open to travelling overseas
    • Winter (sun) holidays could prove more popular
    • The long-term outlook for overseas travel remains positive
      • Figure 39: Main holidaying intentions by destination, 2021
    • Demand to take main holiday in UK exceeds pre-COVID-19 levels
      • Figure 40: Main holidaying intentions by destination and age, 2021
  16. Holiday Type

    • High demand for rural escapes…
    • …and self-drive itineraries in the UK
      • Figure 41: Participation and future ‘main holidaying’ intentions in the UK, by holiday type, 2020 vs 2021
    • Beach holidays and luxury travel in high demand among overseas travellers
      • Figure 42: Participation and future ‘main holidaying’ intentions abroad, by holiday type, 2020 vs 2021
  17. Research Sources

    • Customer reviews and price comparison websites play a crucial role in the research process
      • Figure 43: Usage of information sources when researching a holiday, by age, 2021
    • Majority of 16-44 year olds watch online videos of a destination or accommodation before booking
      • Figure 44: Use of online video content before booking, by demographics, 2021
  18. Holiday Booking Channels

    • Increased interest among older generation to book online
      • Figure 45: Booking channel for main holiday, 2021
    • Share of bookings via smartphone is likely to continue to grow
      • Figure 46: Booking channel for main holiday, by age, 2021
    • There continues to be demand for travel expertise
      • Figure 47: Booking channel for main holiday, by holiday type, 2021
  19. Purchase Drivers when Choosing a Travel Company

    • Flexible cancellation and rebooking policies continue to be important amid COVID-19 uncertainty
    • Cover for COVID-related risks a must for many travellers
      • Figure 48: Factors influencing choice of travel company, by destination, 2021
    • Over-55s more risk-averse but tend to be loyal customers
      • Figure 49: Factors influencing choice of travel company, by age, 2021
    • The role of the environment in the holiday planning and booking process
  20. Attitudes towards Entry Requirements

    • Majority of travellers would like to see entry requirements integrated in search technology
      • Figure 50: Interest in filtering search results by entry requirements, 2021
    • High desire to filter out destinations that require self-isolation upon arrival or return
      • Figure 51: Further interest in filtering search results by entry requirements, 2021
    • Costs of testing measures a big concern for families
      • Figure 52: Attitudes towards cost of COVID-19 tests, by demographics, 2021
  21. Appendix – Data Sources, Abbreviations and Supporting Information

    • Abbreviations
    • Consumer research methodology
  22. Appendix – Central Forecast Methodology

    • Volume forecast and prediction intervals for total holidays
      • Figure 53: Lower bound, central and upper bound forecast for the total volume of total holidays (domestic* and overseas) taken by UK residents, 2020-26
    • Value forecast and prediction intervals for total holidays
      • Figure 54: Lower bound, central and upper bound forecast for the value* of total holidays (domestic** and overseas) taken by UK residents, 2020-26
    • Volume forecast and prediction intervals for domestic holidays
      • Figure 55: Lower bound, central and upper bound forecast for the volume of domestic holidays taken by British residents, 2020-26
    • Value forecast and prediction intervals for domestic holidays
      • Figure 56: Lower bound, central and upper bound forecast for the value of domestic holidays taken by British residents, 2020-26
    • Volume forecast and prediction intervals for overseas holidays
      • Figure 57: Lower bound, central and upper bound forecast for the volume of overseas holidays taken by UK residents, 2020-26
    • Value forecast and prediction intervals for overseas holidays
      • Figure 58: Lower bound, central and upper bound forecast for the value* of overseas holidays taken by UK residents, 2020-26
    • Market drivers and assumptions
      • Figure 59: Key drivers affecting Mintel’s market forecast, 2020-24 (prepared 12 March 2021)
    • Forecast methodology
  23. Appendix – COVID Scenario Performance Methodology and Assumptions

    • Volume scenario performance for total holidays
      • Figure 60: COVID-19 scenario forecasts for the total volume of total holidays (domestic* and overseas) taken by UK residents, 2020-26
    • Value scenario performance for total holidays
      • Figure 61: COVID-19 scenario forecasts for the value* of total holidays (domestic** and overseas) taken by UK residents, 2020-26
    • Volume scenario performance for domestic holidays
      • Figure 62: COVID-19 scenario forecasts for the volume of domestic holidays taken by British residents, 2020-26
    • Value scenario performance for domestic holidays
      • Figure 63: COVID-19 scenario forecasts for the value of domestic holidays taken by British residents, 2020-26
    • Volume scenario performance for overseas holidays
      • Figure 64: COVID-19 scenario forecasts for the volume of overseas holidays taken by UK residents, 2020-26
    • Value scenario performance for overseas holidays
      • Figure 65: COVID-19 scenario forecasts for the value* of overseas holidays taken by UK residents, 2020-26
    • Rapid COVID recovery, central and extended COVID disruption scenarios outline
    • Scenario methodology

About the report

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