2022
9
UK Holiday Review Market Report 2022
2022-03-18T03:07:57+00:00
OX1101339
2195
148965
[{"name":"Holidays and Travel","url":"https:\/\/store.mintel.com\/industries\/holidays-travel"}]
Report
en_GB
“For many people holidays offer them the chance to escape (the stresses of) day-to-day life – a feeling that has been intensified by lockdowns and other restrictions. Fuelled by the…

UK Holiday Review Market Report 2022

£ 2,195 (Excl.Tax)

Description

The UK Holiday Review report identifies consumer attitudes towards holidaying intentions, holiday planning, the UK travel industry, and the domestic and overseas holiday market in the UK. This market report covers the market size, market forecast, market segmentation and industry trends for the UK Holiday market.

Current Market Landscape

Interest in unlimited rail travel holiday passes is particularly high among families with children, while environmental concerns will likely fuel demand for this type of product in the years to come.

  • 63% of UK adults took a domestic holiday in the 12 months to November 2021.
  • 48% of UK travellers would be interested in a holiday rail pass offering unlimited rail travel in the UK whilst on holiday.
  • In February 2022, 9% of travellers were identified as hard ethical travellers, up from 7% in November 2020.

Although international travel has the potential for a strong bounceback in 2022, confidence remains higher in the domestic holiday market. The changing rules around international travel have impacted confidence in travelling overseas, while rules around vaccination will be a barrier for some people, especially younger travellers. Consumers continue to be drawn to more natural areas, such as beaches and rural locations.

Future Market Trends in Holidays

The biggest threats to the market include the potential of harmful COVID-19 variants, the rising cost of living and geopolitical uncertainty.

For many people, holidays offer them the chance to escape (the stresses of) day-to-day life – a feeling that lockdowns and other restrictions has intensified. Fuelled by the pandemic, consumers show a greater interest in wellness and adventurous activities, and, as such, brands should expand their offering in these areas to help consumers feel rejuvenated and alive.

Read on to discover more details or take a look at all of our UK Leisure Time market research

Quickly understand

  • The impact of COVID-19 on the domestic and overseas holiday market.
  • Holidaying intentions and likely behavioural changes in 2022.
  • What holiday types show potential for growth.
  • Consumer perceptions of accommodation types.

Covered in this report

Brands: Byway, THOR Industries, British Airways, Airbnb, TUI, On The Beach, Tourism Australia, Eurostar.

Expert analysis from a specialist in the field

This report, written by Marloes de Vries, a leading analyst in the Travel sector, delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

For many people holidays offer them the chance to escape (the stresses of) day-to-day life – a feeling that has been intensified by lockdowns and other restrictions. Fuelled by the pandemic, consumers show a greater interest in wellness and adventurous activities and as such, brands should expand their offering in these areas to help consumers feel rejuvenated and alive.

Marloes de Vries
Associate Director – Travel

Table of Contents

  1. Overview

    • Key issues covered in this Report
    • COVID-19: market context
    • Economic and other assumptions
    • Products covered in this Report
  2. Executive Summary

    • The five-year outlook for the UK travel market
      • Figure 1: Category outlook, 2022-27
    • The market
    • Value of the domestic holiday market expected to return to pre-COVID-19 levels in 2022
      • Figure 2: COVID-19 scenario forecasts for the value of domestic holidays taken by British residents, 2016-26*
    • Value of overseas holiday market will recover ahead of volume, but not until 2024
      • Figure 3: COVID-19 scenario forecasts for the value* of overseas holidays taken by UK residents, 2016-26
    • Inflationary pressures are mounting
    • Environmental concerns have intensified
    • Companies and brands
    • Byway achieve B Corp Certification
    • THOR Industries unveils electric airstream travel trailer concept
    • British Airways trials video service for travellers using British Sign Language
    • Airbnb improves the booking experience for travellers with disabilities
    • TUI enhances transfer platforms for both shared and private transfers
    • On the Beach offers free fast track security for package holidays taken in Summer 2022
    • The consumer
    • Domestic holiday participation remained stable during the pandemic, but average age declined
    • Long-haul travel took the biggest hit and will likely recover at a slower pace
    • Strong appetite to travel in 2022
      • Figure 4: Destinations visited vs intentions to visit, 2019-21
    • Natural areas continue to appeal to domestic travellers
      • Figure 5: Participation and future holidaying intentions in the UK, by holiday type, November 2019 vs November 2021
    • Strong desire for overseas beach holidays, while the demand to visit foreign cities lags
    • Strong growth potential for camping and caravanning holidays abroad
      • Figure 6: Participation and future holidaying intentions abroad, by holiday type, November 2019 vs November 2021
    • Four in 10 overseas holidaymakers plan to spend £1,000+ on their most expensive break
      • Figure 7: Amount planning to spend on the most expensive holiday in the next 12 months, by destination, 2021
    • Trust in travel companies increased
      • Figure 8: Attitudes towards holidays, 2021
    • Flexibility; a new revenue model
      • Figure 9: Attitudes towards COVID-19 and holidays, 2021
    • Cruise holidays can benefit from lockdown savings
      • Figure 10: Perceptions of accommodation types – Correspondence analysis, 2021
    • Convenience remains key strength of hotels
  3. Issues and Insights

    • Inflationary pressures are mounting
    • Flexibility; a new revenue model
  4. Market Size and Performance

    • COVID-19 hits after holiday market reaches record heights
    • Strong bounce back for domestic travel in 2021…
    • …but the overseas holiday market saw a further decline
      • Figure 11: Volume and value* of domestic holidays taken by British residents, 2015-21
      • Figure 12: Volume and value* of overseas holidays taken by UK residents, 2015-21
  5. Market Forecast

    • The five-year outlook for the UK travel market
      • Figure 13: Category outlook, 2022-27
    • Value of the domestic holiday market expected to return to pre-COVID-19 levels in 2022
      • Figure 14: Forecast volume of domestic holidays taken by British residents, 2016-26*
      • Figure 15: Forecast value* of domestic holidays taken by British residents, at current prices, 2016-26
    • Value of overseas holiday market will recover ahead of volume, but not until 2024
      • Figure 16: Forecast volume of overseas holidays taken by UK residents, 2016-26*
      • Figure 17: Forecast value* of overseas holidays taken by UK residents at current prices, 2016-26**
    • Market drivers and assumptions
      • Figure 18: Key drivers affecting Mintel’s market forecast, 2017-26
    • Forecast methodology
  6. COVID-19 Scenario Performance

    • Mintel’s approach to predicting the impact of COVID-19
    • Fundamental differences in how COVID-19 is affecting consumer markets
    • Impact of the COVID scenarios on the UK domestic holiday market
    • Impact of the COVID scenarios on the overseas holiday market
    • COVID scenarios have the biggest impact on the outbound segment
      • Figure 19: COVID-19 scenario forecasts for the value of domestic holidays taken by British residents, 2016-26*
      • Figure 20: COVID-19 scenario forecasts for the value* of overseas holidays taken by UK residents, 2016-26
  7. Market Drivers

    • UK government publishes plan for living with COVID
    • UK allows restriction-free travel for fully vaccinated travellers
    • More travellers will need support to comply with entry requirements
    • Demand for staycations exceeds pre-pandemic levels
      • Figure 21: Participation and main holidaying intentions by destination, 2019-22
    • The conflict in Ukraine leads to airspace closures
    • Inflationary pressures are mounting
    • Brexit is adding to consumer concerns
    • Airports plan for expansion…
    • …while environmental concerns have intensified
  8. Launch Activity and Innovation

    • Number of initiatives around sustainable travel are on the rise
    • Byway achieve B Corp Certification
    • THOR Industries unveils electric airstream travel trailer concept
    • Airlines focus heavily on becoming greener
    • New innovations to make travel more inclusive
    • British Airways trials video service for travellers using British Sign Language
    • Airbnb improves the booking experience for travellers with disabilities
    • Barrier-free beach campsite opens in South Korea
    • Technological innovations to make the journey more seamless
    • Eurostar has started the trial of face biometric technology
    • TUI enhances transfer platforms for both shared and private transfers
    • British Airways will offer a new baggage tracing system
    • Incentives to encourage holiday bookings
    • On the Beach offers free fast track security for package holidays taken in Summer 2022
    • Tourism Australia promotes visa application charge refund offer to boost working holidays
  9. Booking Patterns and Intentions

    • The relaxation of the UK’s entry requirements should boost confidence in booking holidays…
    • …but constant changes have impacted confidence
      • Figure 22: Holiday bookings in the last three months and plans to book a holiday in the next three months, 2018-22
    • Younger audiences will lead the recovery
    • A sustained focus on hygiene is important
      • Figure 23: Plans to book a holiday in the next three months, by demographics, 2019 vs 2022
  10. Holiday Destinations – Visited

    • Nearly seven in 10 Brits took a holiday in 2021, compared to over eight in 10 before COVID
    • Domestic holiday participation remained stable during the pandemic, but average age declined
      • Figure 24: Destinations visited on holiday in the past 12 months, 2018-21
    • Long-haul travel took the biggest hit and will likely recover at a slower pace
      • Figure 25: Destinations visited on holiday in the past 12 months, by country, 2018-21
  11. Holiday Destinations – Future Intentions

    • Strong appetite to travel in 2022
      • Figure 26: Destinations visited vs intentions to visit, 2019-21
    • Holidaying intentions to Wales and Northern Ireland exceed actual participation seen prior to the pandemic
    • Entry requirements will have a big say on the speed of recovery per destination
    • France risks to be hit harder due to its greater reliance on city breaks
      • Figure 27: Destinations visited vs intentions to visit, by country, 2019-21
  12. Holiday Types – Participation vs Future Intentions

    • Natural areas continue to appeal to domestic travellers
      • Figure 28: Participation and future holidaying intentions in the UK, by holiday type, November 2019 vs November 2021
    • Strong desire for overseas beach holidays, while the demand to visit foreign cities lags
    • Strong growth potential for camping and caravanning holidays abroad
    • Wellness and adventure can tap into consumers’ desire for escapism
      • Figure 29: Participation and future holidaying intentions abroad, by holiday type, November 2019 vs November 2021
  13. Holiday Spending

    • Four in 10 overseas holidaymakers plan to spend £1,000+ on their most expensive break
      • Figure 30: Amount planning to spend on the most expensive holiday in the next 12 months, by destination, 2021
    • Most travellers do not worry about their financial situation
      • Figure 31: Consumers’ financial wellbeing, by holidaying intentions, 2021
  14. Attitudes towards Travel

    • Trust in travel companies increased…
    • …but some consumers continue to look for better protection
      • Figure 32: Attitudes towards holidays, 2021
    • Flexibility; a new revenue model
      • Figure 33: Attitudes towards COVID-19 and holidays, 2021
    • Families key target group for domestic holiday rail pass
      • Figure 34: Interest in domestic holiday rail pass – CHAID analysis, 2021
  15. Perceptions of Accommodation Types

    • Cruise holidays can benefit from lockdown savings
      • Figure 35: Perceptions of accommodation types – Correspondence analysis, 2021
    • Campsites and hostels will likely benefit from their affordable image
    • Holiday rental properties offer unique experience and great value
    • Convenience remains key strength of hotels
      • Figure 36: Perceptions of accommodation types, 2021
  16. Appendix – Data Sources, Abbreviations and Supporting Information

    • Abbreviations
    • Consumer research methodology
    • Correspondence analysis methodology
    • CHAID analysis methodology
      • Figure 37: Interest in domestic holiday rail pass, CHAID analysis – Table output, 2021
  17. Appendix: Forecast Methodology

    • Volume forecast and prediction intervals for total holidays
      • Figure 38: Lower bound, central and upper bound forecast for the total volume of holidays (domestic* and overseas) taken by UK residents, 2021-26
    • Value forecast and prediction intervals for total holidays
      • Figure 39: Lower bound, central and upper bound forecast for the total value* of holidays (domestic** and overseas) taken by UK residents, 2021-26
    • Volume forecast and prediction intervals for domestic holidays
      • Figure 40: Lower bound, central and upper bound forecast for the volume of domestic holidays taken by British residents, 2021-26
    • Value forecast and prediction intervals for domestic holidays
      • Figure 41: Lower bound, central and upper bound forecast for the value of domestic holidays taken by British residents, 2021-26
    • Volume forecast and prediction intervals for overseas holidays
      • Figure 42: Lower bound, central and upper bound forecast for the volume of overseas holidays taken by UK residents, 2021-26
    • Value forecast and prediction intervals for overseas holidays
      • Figure 43: Lower bound, central and upper bound forecast for the value* of overseas holidays taken by UK residents, 2021-26
    • Value forecast domestic and overseas holidays at constant prices
      • Figure 44: Value of domestic holidays taken by British residents at 2021 prices, 2021-26
      • Figure 45: Value* of overseas holidays taken by UK residents at 2021 prices, 2021-26
    • Market drivers and assumptions
    • Forecast methodology
  18. Appendix: COVID Scenario Performance Methodology and Assumptions

    • Volume scenario performance for total holidays
      • Figure 46: COVID-19 scenario forecasts for the total volume of holidays (domestic* and overseas) taken by UK residents, 2016-26
    • Value scenario performance for total holidays
      • Figure 47: COVID-19 scenario forecasts for the total value* of holidays (domestic** and overseas) taken by UK residents, 2016-26
    • Volume scenario performance for domestic holidays
      • Figure 48: COVID-19 scenario forecasts for the volume of domestic holidays taken by British residents, 2016-26
    • Value scenario performance for domestic holidays
      • Figure 49: COVID-19 scenario forecasts for the value of domestic holidays taken by British residents, 2016-26
    • Volume scenario performance for overseas holidays
      • Figure 50: COVID-19 scenario forecasts for the volume of overseas holidays taken by UK residents, 2016-26
    • Value scenario performance for overseas holidays
      • Figure 51: COVID-19 scenario forecasts for the value* of overseas holidays taken by UK residents, 2016-26
    • Rapid COVID recovery, central and extended COVID disruption scenarios outline
    • Scenario 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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