2023
9
UK Holiday Planning and Booking Process Market Report 2023
2023-06-28T04:07:35+01:00
OX1158665
2195
164459
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Report
en_GB
“While most holidaymakers were already price-sensitive before inflation soared, many are now adapting their booking behaviour to combat rising prices, with travel comparison websites a popular tool for travellers to…

UK Holiday Planning and Booking Process Market Report 2023

£ 2,195 (Excl.Tax)

Description

Stay ahead of the curve and future-proof your business with Mintel’s UK Holiday Planning and Booking Process Market Report 2023. Our full report is packed with consumer-led market intelligence, the latest holiday booking trends and consumer behaviours affecting your industry. Get a 360° view of the online travel booking market including market size, 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.

Topics Analysed in this Report

  • How the rising cost of living will impact the recovery of the online travel booking market.
  • Holiday booking trends and consumers’ intentions to book holidays.
  • Holiday booking channels and booking period for consumers’ main holiday.
  • Desired booking features and incentives to encourage repeat bookings.
  • Consumers’ perceptions of seven key players in the online travel booking market.

Online Travel Booking Market Outlook

Travel booking trends are changing to reflect many travellers adjusting their travel booking behaviours to control costs, for example, by shopping around more or choosing lower-cost accommodation, it is inevitable that some will not be able to afford holidays as frequently as they did before the pandemic. Short-haul holidays are expected to take the brunt of the downfall in the online travel booking market.

  • Online travel booking market size: Mintel forecasts that value sales of overseas holidays will grow to £57 billion in 2028.

Travel Booking Trends and Opportunities

Destination crowdedness sways travellers

Travellers have expressed interest in brands that display how busy a destination usually is during the time they plan to visit. This interest remains high across all age groups. Brands could capitalise on this travel booking trend by providing information on crowdedness based on predictive technology or tools that show real-time information will add value to the online travel booking market

  • Travel booking trends: 28% of UK travellers would be interested in information that shows how busy a destination usually is during the time they plan to visit.

Strong demand for luxury holidays abroad

There continues to be a stronger interest in beach holidays and luxury travel experiences compared to before the pandemic. Higher demand for luxury is likely driven by the fact that overseas travellers tend to be more affluent and, as such, are more likely to have built up lockdown savings.

  • Holiday booking trends: 45% of travellers plan to take a beach resort holiday and 15% a luxury holiday in the next 12 months.

To learn how to connect with your audience, purchase our full UK Holiday Planning and Booking Process Market Report 2023.  Discover lucrative innovation opportunities to help your business grow during times of financial uncertainty.

Leading Brands in the Online Travel Market

eDreams, Expedia, Airbnb, Booking.com, HolidayPirates, Kuoni.

Additional Features Included with Your Purchase

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Expert Insights from a Travel Analyst

This report, written by Marloes De Vries, a leading Travel industry analyst, delivers in-depth commentary and analysis to highlight current trends in the online travel booking market and add expert context to the numbers.

While most holidaymakers were already price-sensitive before inflation soared, many are now adapting their booking behaviour to combat rising prices, with travel comparison websites a popular tool for travellers to limit costs. Brands that are most successful at building customer loyalty and limiting passing on higher costs to customers will remain more competitive.”

Marloes De Vries

Marloes de Vries
Associate Director – Travel

 

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 UK travel market
      • Figure 1: Category outlook, 2023-28
    • The market
    • Overseas holiday market expected to recover further
      • Figure 2: Forecast value* of overseas holidays taken by UK residents, at current prices, 2018-28
    • High inflation not expected to trigger a staycation boom
      • Figure 3: Forecast value* of domestic holidays taken by British residents, at current prices, 2018-28
    • Companies and brands
    • Booking.com introduces new badge levels for properties that invest in responsible practices
    • Charitable travel develops one-way by train packages to help travellers cut emissions by half
    • Airbnb introduces new Rooms category in response to the increased cost of living
    • Booking.com was the most used brand of those surveyed in the year to April 2023
      • Figure 4: Key metrics for selected brands, 2023
    • The consumer
    • Demand for overseas holidays under pressure as a result of high prices
      • Figure 5: Destinations visited vs intentions to visit for main holiday, 2020-23
    • Stronger demand for camping holidays in the UK and beach and luxury holidays abroad
    • Nearly four in 10 travellers had secured their main holiday by mid-March 2023
      • Figure 6: Booking period for main holiday, by destination, 2023
    • Smartphone continues to become an increasingly important booking channel
      • Figure 7: Booking channel for main holiday, 2021-23
    • Strong interest in information on crowdedness before booking
    • Advances in generative AI will help to increase the value of search results …
    • … but interest in using chatbots is currently low
      • Figure 8: Desired booking features, 2023
    • A lowest price guarantee would encourage most travellers to book again
      • Figure 9: Incentives to stimulate repeat bookings, 2023
    • Price comparison websites are the most considered way to limit costs when booking
      • Figure 10: Factors considered to limit costs when booking a holiday, by the impact of the rising cost of living, 2023
    • Ease of booking plays an important role in the decision-making process
      • Figure 11: Holiday attitudes and behaviours, 2023
  3. Issues and Insights

    • Travel companies should continue to help customers combat rising costs
    • Strong interest in information on crowdedness when planning and booking holidays
  4. Market Size and Performance

    • Volume of holiday market unlikely to exceed pre-COVID levels in 2023
    • Overseas holiday market expected to recover further
    • High inflation not expected to trigger a staycation boom
      • Figure 12: Volume and value of domestic holidays taken by British residents, 2015-23
      • Figure 13: Volume and value* of overseas holidays taken by UK residents, 2015-23
  5. Market Forecast

    • The five-year outlook for the UK travel market
      • Figure 14: Category outlook, 2023-28
    • Holiday market likely to continue to grow
      • Figure 15: Forecast volume of domestic holidays taken by British residents, 2018-28*
      • Figure 16: Forecast value* of domestic holidays taken by British residents, at current prices, 2018-28
      • Figure 17: Forecast volume of overseas holidays taken by UK residents, 2018-28
      • Figure 18: Forecast value* of overseas holidays taken by UK residents, at current prices, 2018-28
    • Learnings from the last income squeeze
    • Forecast methodology
  6. Market Drivers

    • Financial confidence improved in May 2023 amid falling inflation
      • Figure 19: The Financial Confidence Index, 2009-23
    • Inflation for food and drink remains high
    • Nearly a quarter of UK adults have been affected by higher prices for holidays
      • Figure 20: Issues faced in the last two months, 2023
    • Consumers continue to prioritise their summer holiday
      • Figure 21: Holiday bookings in the last three months, 2017-23
    • Booking intentions are in line with pre-pandemic levels
      • Figure 22: Plans to book a holiday in the next three months, 2017-23
  7. Launch Activity and Innovation

    • Brands are testing generative AI to provide human-like advice and support at scale
    • eDreams is participating in Google Cloud’s generative AI testers programme
    • Expedia’s new trip planning feature powered by ChatGPT
    • Sustainability increasingly visible in the holiday planning and booking process
    • Booking.com introduces new badge levels for properties that invest in responsible practices
    • Charitable travel develops one-way by train packages to help travellers cut emissions by half
    • Airbnb launches new features in response to the increased cost of living
    • Airbnb introduces new Rooms category …
    • … and partners with Klarna to offer guests the chance to pay in instalments
    • New launches to increase engagement with potential customers
    • Kuoni announces plans for a Bali beach club-themed travel agent shop in Liverpool
    • HolidayPirates launches TikTok channel to engage with UK travellers
  8. Advertising and Marketing Activity

    • Above-the-line spend by travel and transport providers comparable to pre-COVID levels
      • Figure 23: Total above-the line, online display and direct mail advertising expenditure on ads by travel and transport providers, 2016-22
    • Expedia, Jet2.com and TUI Group frontrunners when it comes to advertising activity in 2022
      • Figure 24: Top 15 above-the line, online display and direct mail advertising expenditure on ads by travel and transport providers, 2019 vs 2022
    • Nielsen Ad Intel coverage
  9. Brand Research

    • Brand map
      • Figure 25: Attitudes towards and usage of selected brands, 2023
    • Key brand metrics
      • Figure 26: Key metrics for selected brands, 2023
    • Brand attitudes: Booking.com most likely to be seen as a trusted brand
      • Figure 27: Attitudes, by brand, 2023
    • Brand personality: Expedia less likely to be seen as a fun brand
      • Figure 28: Brand personality – macro image, 2023
    • easyJet holidays more likely to be described as basic
      • Figure 29: Brand personality – micro image, 2023
    • Brand analysis
    • Increased number of Britons perceive Jet2holidays as a reliable brand
    • TUI seen as a welcoming brand, but some also believe it is overpriced
    • easyJet holidays associated with offering good value, but customer rating lags behind
    • Awareness of On the Beach has continued to increase
    • Tripadvisor challenged to guarantee the quality of its content
    • Booking.com surpassed Tripadvisor to become the most used brand
    • Expedia challenged to improve its customer experience levels
  10. Main Holidaying Intentions

    • Demand for overseas holidays under pressure as a result of high prices
      • Figure 30: Destinations visited vs intentions to visit for main holiday, 2020-23
    • Stronger demand for domestic camping holidays
      • Figure 31: Holiday types for main holiday in the UK, participation vs intentions, 2020-23
    • Overseas beach and luxury holidays continue to be more popular than before the pandemic
      • Figure 32: Holiday types for main holidays abroad, participation vs intentions, 2020-23
  11. Booking Period

    • Nearly four in 10 travellers had secured their main holiday by mid-March 2023
      • Figure 33: Booking period for main holiday, by destination, 2023
    • Financially confident consumers are more likely to have already booked
      • Figure 34: Booking period for main holiday, by consumer confidence in their financial situation, 2023
  12. Holiday Booking Channels

    • Online bookings will continue to dominate the market
      • Figure 35: Booking channel for main holiday, 2021-23
    • Smartphone continues to become an increasingly important booking channel
      • Figure 36: Booking channel for main holiday, by age, 2023
    • Luxury holidays and group holidays/escorted tours most likely to be booked in person
      • Figure 37: Booking channel for main holiday, by holiday type, 2023
    • Making shop visits more convenient will help to increase appeal
    • Building relationships and sharing personal experiences will help travel agents differentiate themselves from AI-powered agents
    • Consumers demand choice
  13. Desired Booking Features

    • Strong interest in information on crowdedness before booking
      • Figure 38: Desired booking features, 2023
    • Consumers show interest in VR in the booking process but ownership of VR headsets remains low
    • Advances in generative AI will help to increase the value of search results …
    • … but interest in using chatbots is currently low
      • Figure 39: Desired booking features, by age, 2023
  14. Incentives to Stimulate Repeat Bookings

    • A lowest price guarantee would encourage most travellers to book again
    • Providing good customer service will be important amid potential disruption
      • Figure 40: Incentives to stimulate repeat bookings, 2023
    • Loyalty programmes can increase customer appeal
      • Figure 41: Incentives to stimulate repeat bookings – TURF Analysis, 2023
  15. Factors Considered to Limit Costs When Booking

    • Price comparison websites are the most considered way to limit costs when booking
    • Opportunity to appeal to the large group who would consider cheaper accommodation options
      • Figure 42: Factors considered to limit costs when booking a holiday, by the impact of the rising cost of living, 2023
  16. Defining Value for Money

    • Value remains a crucial purchase decision driver amid high inflation
      • Figure 43: Holiday attitudes and behaviours, 2023
    • Ease of booking plays an important role in the decision-making process
    • Lesser-known destinations can benefit from increased prices
    • Value for money; more than just price
  17. Appendix – Data Sources, Abbreviations and Supporting Information

    • Abbreviations
    • Consumer research methodology
    • Methodology TURF analysis
      • Figure 44: Incentives to stimulate repeat bookings – TURF Analysis, 2023
  18. Appendix – Forecast Methodology

    • Volume forecast and prediction intervals for total holidays
      • Figure 45: Lower-bound, central and upper-bound forecast for the total volume of holidays (domestic* and overseas) taken by UK residents*, 2023-28
    • Value forecast and prediction intervals for total holidays
      • Figure 46: Lower-bound, central and upper-bound forecast for the total value* of holidays (domestic** and overseas) taken by UK residents*, 2023-28
    • Volume forecast and prediction intervals for domestic holidays
      • Figure 47: Lower-bound, central and upper-bound forecast for the volume of domestic holidays taken by British residents, 2023-28
    • Value forecast and prediction intervals for domestic holidays
      • Figure 48: Lower-bound, central and upper-bound forecast for the value of domestic holidays taken by British residents, 2023-28
    • Volume forecast and prediction intervals for overseas holidays
      • Figure 49: Lower-bound, central and upper-bound forecast for the volume of overseas holidays taken by UK residents, 2023-28
    • Value forecast and prediction intervals for overseas holidays
      • Figure 50: Lower-bound, central and upper-bound forecast for the value of overseas holidays taken by UK residents, 2023-28
    • Value forecast domestic and overseas holidays at constant prices
      • Figure 51: Value of domestic holidays taken by British residents at 2023 prices, 2023-28
      • Figure 52: Value of overseas holidays taken by UK residents at 2023 prices, 2023-28
    • Market drivers and assumptions
    • Forecast methodology

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