2021
9
UK Holiday Review Market Report 2021
2021-02-04T03:01:41+00:00
OX1042387
2195
133568
[{"name":"Holidays and Travel","url":"https:\/\/store.mintel.com\/industries\/holidays-travel"}]
Report
en_GB
“New lockdowns led to a decline in booking levels in January, which would have been an important booking period in a ‘normal’ year. Nevertheless, underlying demand for travel remains strong…

UK Holiday Review Market Report 2021

£ 2,195 (Excl.Tax)

Report Summary

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

The international lockdowns from the COVID-19 pandemic caused a major decline in the UK holiday market throughout 2020. With non-essential travel massively restricted, many holidays were postponed and cancelled, with a continued wariness around domestic and foreign travel continuing into early 2021.

The value of domestic travel fell by 46% in 2020, with overseas holidays falling by 79%. The value of both domestic and international UK holidays declined by 71% overall. However, 83% of UK travellers report that they would like to return to their usual holiday behaviour once the pandemic ends, suggesting a relatively quick recovery for the market. This agreement is especially high among the over-65’s, who were both among the first to be vaccinated and the most likely to have saved money throughout the lockdown.

While international travel could remain limited in the short term as individual countries slowly emerge from their own lockdowns, 2021 could become a record year for summer staycations. Once UK restrictions end, holiday bookings are predicted to surge, with the domestic holiday market expected to recover by 2022. International holidays may take longer to recover, however, returning to pre-pandemic growth by 2024.

This report covers how the UK holiday market has fared throughout the pandemic, and how brands could potentially capitalise on the market opportunities created by the increase in demand once restrictions lift.

Discover more of our reports about the UK Holiday market for both domestic and foreign travel.

Quickly understand

  • The impact of COVID-19 on the domestic and overseas holiday market.
  • Trends in booking behaviour.
  • Holidaying intentions and likely behavioural changes in 2021.
  • Holidaying motivations.
  • Company activity during the pandemic.

Covered in this report

Types of Holiday: City breaks, Rural and countryside holidays, family holidays, beach holidays, sightseeing holidays, camping and caravan park holidays, winter holidays, cruises, coach tours, Snowsports holidays, activity holidays.

Travel Brands: TUI, Kuoni, British Airways, Marella Cruises, Collinson, Abercrombie & Kent.

Hotel Brands: Best Western, Sofitel, Hilton, The Green Solutions Hotel, Airbnb, Intrepid Travel.

Expert analysis from a specialist in the field

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

New lockdowns led to a decline in booking levels in January, which would have been an important booking period in a ‘normal’ year. Nevertheless, underlying demand for travel remains strong as brits do not want to miss out on their main holiday again. Rural/countryside-based holidays in the UK and overseas beach holidays will be among the betterperforming segments when recovery accelerates in the middle of 2021, whilst financial protection and other reassurance messages will remain essential. Some consumers will be price-sensitive, whilst others who have managed to save money can be enticed to splash out on more premium holiday experiences or longer trips.

Marloes-De-Vries
Associate Director

Table of Contents

  1. Overview

    • What you need to know
    • Key issues covered in this Report
    • COVID-19: market context
    • Impact of the January 2021 lockdown and the vaccination rollout
    • 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, 19 January 2021
    • The market
    • Value of domestic holiday market expected to have declined by 46% in 2020
    • 2021 could be a record year for summer staycations in the UK
    • The value of the domestic holiday market is expected to recover in 2022
      • Figure 2: Forecast volume and value* of domestic holidays taken by British residents (prepared on 19 January 2021), 2015-25
    • Value of overseas holiday market expected to have declined by 79% in 2020
    • The second half of 2021 has the potential to see strong demand
    • The value of the overseas holiday market is expected to recover in 2024
      • Figure 3: Forecast volume and value* of overseas holidays taken by UK residents (prepared on 19 January 2021), 2015-25 **
    • Consumer confidence comparable to pre-COVID levels…
    • …but protective financial behaviours are likely to impact holiday frequency
    • Companies and brands
    • Campaigns to encourage 2021 bookings
    • Initiatives to make testing more accessible
    • Brands aim for a greener and more inclusive image
    • The consumer
    • Booking intentions increased when vaccination programme was rolled out…
    • …however, new lockdowns led to a decline in booking levels
      • Figure 4: Actual bookings and plans to book a holiday in the next three months, January 2019-January 2021
    • Holiday participation has the potential to recover in 2021
      • Figure 5: Destinations visited vs intentions to visit, 2018-20
    • Opportunity to combine nature-based holidays in the UK with culture
      • Figure 6: Participation and future holidaying intentions in the UK, by holiday type, November 2019 vs October 2020
    • Strong desire for overseas beach holidays
      • Figure 7: Participation and future holidaying intentions abroad, by holiday type, November 2019 vs October 2020
    • De-stressing and reconnecting with others will be central to consumers’ motivation to travel in 2021
      • Figure 8: Most important reasons to take a holiday in the next 12 months, October 2020
    • Local culture a key attraction of long-haul destinations
    • Summer season could get crowded and expensive
    • Financial protection; a more important selling point in 2021
      • Figure 9: Attitudes towards booking holidays, October 2020
    • The importance of accessible travel
      • Figure 10: Attitudes towards holidays, October 2020
  3. Issues and Insights

    • Limited travel options in 2020 provide opportunity to upgrade holidays in 2021
    • Making the holiday planning and booking process easier by integrating COVID-19 measures
  4. The Market – Key Takeaways

    • Pent-up demand expected once restrictions are lifted
    • Some consumers managed to save more whilst others feel the financial impact of COVID-19
    • Entry restrictions add to the complexity of holiday planning
  5. Market Size and Forecast – Total

    • New lockdowns dampen speed of recovery of travel market
      • Figure 11: Short-, medium- and long-term impact of COVID-19 on the UK travel market, 19 January 2021
    • Value of the UK holiday market expected to have declined by 71% in 2020
    • Late booking trend will continue amid lockdowns
    • Pent-up demand will be released once restrictions are lifted
    • Long-term outlook of holiday market remains positive
      • Figure 12: Forecast volume and value* of domestic** and overseas holidays taken by UK residents (prepared on 19 January 2020), 2015-25
    • Market drivers and assumptions
      • Figure 13: Key drivers affecting Mintel’s market forecast (prepared on 19 January 2021), 2015-25
    • Learnings from the last recession
    • Boost in domestic holiday rental property stays
    • Fewer overseas short breaks but more self-drive holidays and visits to low-cost destinations
      • Figure 14: Value sales of domestic and overseas holidays, 2008-15
    • Forecast methodology
  6. Market Size and Forecast – Domestic

    • 2019 was a record year for domestic tourism
    • Value of domestic holiday market expected to have declined by 46% in 2020
    • 2021 could be a record year for summer staycations in the UK
    • The value of the domestic holiday market is expected to recover in 2022
      • Figure 15: Forecast volume and value* of domestic holidays taken by British residents (prepared on 19 January 2021), 2015-25
    • Forecast methodology
  7. Market Size and Forecast – Overseas

    • Value of overseas travel grew significantly prior to COVID-19
    • Value of overseas holiday market expected to have declined by 79% in 2020
    • The second half of 2021 has the potential to see strong demand
    • The value of the overseas holiday market is expected to recover in 2024
      • Figure 16: Forecast volume and value* of overseas holidays taken by UK residents (prepared on 19 January 2021), 2015-25 **
    • Forecast methodology
  8. Market Segmentation

    • Brands have the opportunity to entice travellers to book longer stays
    • Working holidays make longer trips a viable option for more travellers
      • Figure 17: Volume of overseas holidays and domestic holidays, by length of stay, 2015-19
    • Over-55s will be an important driver for growth of the travel market
      • Figure 18: Volume, nights and spend for overseas holidays and domestic holidays, by age, 2019
    • Desire to be outdoors will lead to further growth potential for Scotland
      • Figure 19: Holidays in Great Britain taken by British residents, by region visited, 2016-19
    • Greece and Turkey continued to gain market share in 2019
    • Spain likely to remain the leading overseas destination
    • France challenged to increase value-for-money perceptions
    • Italy has potential to gain market share in the luxury travel market
      • Figure 20: Top 15 overseas holiday destinations for UK holidaymakers, by number of holidays, 2017-19
    • Package holiday providers will benefit from the financial protection offered
      • Figure 21: UK volume of overseas package and independent holidays, 2015-19
  9. Market Drivers

    • New strain of COVID-19 pushes more of the UK back into lockdown
    • Lockdowns prolong the recovery of the holiday market
    • EU recommends to ban non-essential travel from the UK
    • An increasing number of countries require negative COVID-19 test results upon arrival
    • UK reduces quarantine period to 10 days and introduces Test to Release strategy, but closes travel corridors temporarily
    • Some consumers continue to feel the impact of COVID-19 on their finances…
    • …however, government support and reduced outgoings have mitigated the impact on the wider population
      • Figure 22: Changes in financial situation, November 2019-January 2021
    • Consumer confidence comparable to pre-COVID levels…
    • …but protective financial behaviours are likely to impact holiday frequency
      • Figure 23: Financial confidence in the year ahead, November 2019-January 2021
    • Pound-to-US Dollar exchange rate continued to improve
      • Figure 24: Pound versus euro and US Dollar, 1 April 2016-30 December 2020
  10. Companies and Brands – Key Takeaways

    • Campaigns to encourage 2021 bookings
    • Initiatives to make testing more accessible
    • Brands aim for a greener and more inclusive image
  11. Launch Activity and Innovation

    • Promotional campaigns to encourage bookings
    • TUI shows people that nothing compares to a real holiday
    • Kuoni’s Turn of Year campaign: Get Carried Away
    • More travel companies are participating in Black Friday event
    • Making testing more accessible
    • Manchester Airport launches testing facility and offers a 5% discount on Boots’ in-store testing service
    • Sofitel and Hilton promote Test & Rest packages
    • Abercrombie & Kent offers £50 discount towards a COVID-19 test
    • Brands strive to become carbon-neutral or positive
    • Valencia aims to become a carbon-neutral destination by 2025
    • Danish hotel will open a climate-positive wing in 2021
    • Travel companies set goals to be more inclusive
    • Airbnb sets long-term goals to make the company more diverse and inclusive
    • Intrepid’s commitments to reduce gender inequality
  12. The Consumer – Key Takeaways

    • Underlying demand for travel remains strong…
    • …however, new lockdowns led to a decline in booking levels
    • Confidence in booking holidays online remains high
    • Financial protection; a more important selling point in 2021
    • Travellers will continue to search for quieter places to stay
    • De-stressing and reconnecting with others will be central to consumers’ motivation to travel in 2021
  13. The Impact of COVID-19 on Consumer Behaviour

    • Booking intentions increased when vaccination programme was rolled out…
    • …however, new lockdowns led to a decline in booking levels
    • Opportunity to upgrade existing bookings
      • Figure 25: Actual bookings and plans to book a holiday in the next three months, January 2019-January 2021
    • Protection of older generation provides opportunities to encourage bookings
      • Figure 26: Plans to book a holiday in the next three months, by age, December 2019-January 2021
    • Once restrictions are lifted, many consumers will remain cautious
      • Figure 27: Consumer concern about COVID-19, February 2020-January 2021
  14. Holiday Destinations – Visited

    • Participation in domestic holidays remained stable during the pandemic
    • Self-employed and over-55s among the segments showing the highest drop in holiday participation
      • Figure 28: Destinations visited on holiday in the past 12 months, 2018-20
    • Regulations will have a big say in the speed of recovery by destination
      • Figure 29: Destinations visited on holiday in the past 12 months, by country, 2018-20
  15. Holiday Destinations – Future Intentions

    • Holiday participation has the potential to recover in 2021
    • Travellers will cut back on the number of breaks they take
      • Figure 30: Destinations visited vs intentions to visit, 2018-20
    • Domestic holiday market will benefit from COVID-19 uncertainty
    • Overseas destinations closer to home are likely to recover quicker
      • Figure 31: Destinations visited vs intentions to visit, by country, 2018-20
  16. Holiday Types – Participation vs Future Intentions

    • Vaccine protection could make cities attractive again for older generation
    • Opportunity to combine nature-based holidays in the UK with culture and wellness
      • Figure 32: Participation and future holidaying intentions in the UK, by holiday type, November 2019 vs October 2020
    • Strong desire for overseas beach holidays
    • Less crowded areas will appeal in 2021
      • Figure 33: Participation and future holidaying intentions abroad, by holiday type, November 2019 vs October 2020
  17. Holiday Motivations

    • De-stressing and reconnecting with others key travel motivations in 2021
    • Brands challenged to evoke feelings of trust whilst selling a highly experiential product
      • Figure 34: Most important reasons to take a holiday in the next 12 months, October 2020
    • Local culture a key attraction of long-haul destinations
      • Figure 35: Most important reasons to take a holiday in the next 12 months, domestic vs overseas, October 2020
    • Scotland and Wales set to benefit from desire to be in the great outdoors
      • Figure 36: Most important reasons to take a holiday in the next 12 months, by destination, October 2020
  18. Booking Intentions

    • Summer season could get crowded and expensive
      • Figure 37: Holidaying intentions, by quarter and destination, October 2020
    • Consumers need support and flexibility for a seamless travel experience
      • Figure 38: Time between booking and departure, October 2020
  19. Attitudes towards Booking Holidays

    • Financial protection; a more important selling point in 2021
      • Figure 39: Attitudes towards booking holidays, October 2020
    • Confidence in booking holidays online remains high
  20. Attitudes towards Holidays

    • Underlying demand for travel remains strong
    • The importance of accessible travel
      • Figure 40: Attitudes towards holidays, October 2020
    • The desire to meet locals remains strong
  21. Appendix – Data Sources, Abbreviations and Supporting Information

    • Abbreviations
    • Consumer research 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.

Below is a sample report, understand what you are buying.

Click to show report
2024 Sample Consumer Cover

Please Note: This is a sample report. All of the figures, graphs, and tables have been redacted. Our reports are available to download in PDF and PPT formats.

Trusted by companies. Big and small.

Want to speak to us directly?

Contact us with your enquiry and our expert global team can help.

Get in touch