2023
9
UK Holiday Review Market Report 2023
2023-01-21T03:05:40+00:00
OX1154803
2195
159758
[{"name":"Holidays and Travel","url":"https:\/\/store.mintel.com\/industries\/holidays-travel"}]
Report
en_GB
"Staying in multiple countries or regions whilst on a holiday appeals to the majority of holidaymakers. As people are expected to take fewer trips compared to before the pandemic to…

UK Holiday Review Market Report 2023

£ 2,195 (Excl.Tax)

Description

The UK Holiday Review Market Report 2023 identifies consumers’ holiday preferences post-pandemic, holiday booking trends, and opportunities for brands to appeal to holiday seekers in the current market. This report covers the holiday market size, market forecast, market segmentation and industry trends for the UK holiday market.

Holiday Market Current Landscape 

26% of UK adults planned to book an overseas or domestic holiday in the three months following December 2022, which is well below the pre-pandemic levels. This could indicate the impact of the current cost of living crisis. As household incomes are constricted, consumers are deterred from multiple holidays in the current market.

This doesn’t mean that the desire to travel has entirely subsided. Instead, Brits look towards cost-saving ways of organising their holidays, as shown by the fact that many travellers would be interested in all-inclusive holidays or discounts offered for booking far in advance.

Consumers may cut down on extra holidays and stick to a single multi-region trip. In fact, over half of younger travelers find this way of travelling appealing.

Holiday Market Trends, Opportunities, and Industry Insights

Consumers are looking for ways to save money when booking holidays. Providers can consider this alongside pent up post-COVID demand, and the fact that consumers have been saving through the pandemic. According to Mintel’s British Household Confidence Tracker, the share of UK adults who booked a holiday had started to increase from February 2022 as more and more countries eased travel restrictions.

While there are constraints on household incomes in the cost of living crisis, there are opportunities for providers to appeal to Brits looking to find a good deal. For example companies can appeal to consumers by offering a booking calendar that shows prices on a range of dates. Additionally, those struggling with their finances express strong interest in all-inclusive holidays, low-cost accommodation and paying in instalments. 

  • Holiday booking trends: 56% of UK adults state that staying in multiple countries or regions for a holiday is appealing.
  • Holiday market trends: 52% and 48% planned to travel within the UK and overseas, respectively, in the 12 months following October 2022.
  • Holiday market challenges: Only 4% of consumers took a camping or caravanning overseas holiday in the 12 months prior to Nov 2019.

Forecast and Future Trends in the UK Holiday Market

Over the next couple of years, a stabilising economy will have a positive effect on consumers’ travel budgets. Further into the future, the forecasted market value of the UK resident overseas holiday market is expected to increase, exceeding pre-pandemic levels.

Tech-driven locations will continue to become attractive for travellers. For example, the Museum of the Future opened in Dubai in February 2022, using augmented and virtual reality technologies. There are also smart cities on the horizon, and these have the potential to appeal to younger and affluent travellers who are more open to new experiences.

To discover more about the Holiday Market, read our UK Sustainability in Travel 2022 report, or take a look at our extensive Holidays and Travel Market Research.

Quickly Understand

  • How the rising cost of living will impact the recovery of the domestic and overseas holiday markets.
  • Trends in bookings and intentions to book holidays.
  • How consumers’ holidaying behaviour is likely to change in 2023, compared to recent years.
  • What holiday types show potential for growth.
  • Interest in types of destinations for multi-centre holidays.

Covered in this Report

Products: This Report examines the habits and attitudes of British adults aged 16 or over towards holiday-taking in the UK and abroad. For the purposes of this Report, Mintel defined a holiday as a stay of at least one night that is primarily for leisure purposes. Business trips and visiting friends or relatives are not included.

Brands: Princess Cruises, Airbnb, Meta, British Airways, XWELL, geoLAGOON, Eurostar, Air Canada, VisitScotland, CHOOOSE, Clockwork, BaliTwin, and more.

Expert Analysis from a Travel Industry Specialist

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

Staying in multiple countries or regions whilst on a holiday appeals to the majority of holidaymakers. As people are expected to take fewer trips compared to before the pandemic to combat the rising cost of living, combining two types of experiences into one holiday, such as a stay in a city with a stay along the coast, is likely to become more attractive in the coming year.

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
    • International travel was back on the menu in 2022
    • A rise in average selling prices will see market value recover at a faster pace
      • Figure 2: Forecast value* of domestic holidays taken by British residents, at current prices, 2017-27
      • Figure 3: Forecast value* of overseas holidays taken by UK residents, at current prices, 2017-27
    • Consumer confidence has been at a low level since August 2022
    • Booking intentions are below pre-pandemic levels
    • Companies and brands
    • Technology enables new real-life experiences and new ways to promote experiences
    • Travel sector continues to invest in achieving net zero emissions
    • The consumer
    • Holiday participation did not fully recover in the year to October 2022
      • Figure 4: Destinations visited on holiday in the past 12 months, 2018-22
    • Strong pent-up demand for overseas travel
      • Figure 5: Intentions to visit destinations, 2020-22
    • City breaks most desired holiday type in the UK, but growth potential lags behind
      • Figure 6: Participation and future holidaying intentions in the UK, by holiday type, 2019 vs 2022
    • Beach holidays most desired type of overseas holiday
    • Overseas city breaks under pressure
      • Figure 7: Participation and future holidaying intentions abroad, by holiday type, 2019 vs 2022
    • Nearly half of overseas holidaymakers plan to spend £1,000+ on their most expensive break
      • Figure 8: Amount planning to spend on the most expensive holiday in the next 12 months, by destination, 2022
    • High interest in all-inclusive holidays and early booking discounts
      • Figure 9: Interest in products and services when booking, 2022
    • Many would support booking systems to avoid overcrowding in public tourist areas
      • Figure 10: Attitudes towards holidays, 2022
    • Multi-centre holidays have a broad appeal
    • City and beach is the most desired combination for a multi-centre break
      • Figure 11: Interest in types of destinations when being on a multi-centre holiday, 2022
  3. Issues and Insights

    • Inflationary pressures expected to persist throughout 2023
    • Technology enables new real-life experiences and new ways to promote experiences
  4. Market Size and Performance

    • International travel was back on the menu in 2022
      • Figure 12: Volume and value* of domestic holidays taken by British residents, 2015-22
      • Figure 13: Volume and value* of overseas holidays taken by UK residents, 2015-22
  5. Market Forecast

    • The five-year outlook for the UK travel market
      • Figure 14: Category outlook, 2023-28
    • A rise in average selling prices will see market value recover at a faster pace
      • Figure 15: Forecast volume of domestic holidays taken by British residents, 2017-27*
      • Figure 16: Forecast value* of domestic holidays taken by British residents, at current prices, 2017-27
      • Figure 17: Forecast volume of overseas holidays taken by UK residents, 2017-27
      • Figure 18: Forecast value* of overseas holidays taken by UK residents, at current prices, 2017-27
    • Learnings from the last income squeeze
    • Forecast methodology
  6. Market Drivers

    • Consumer confidence has been at a low level since August 2022
    • Incomes squeeze leads to an increase in strikes
      • Figure 19: The Financial Confidence Index, 2009-22
    • Pent-up demand, lockdown savings and refund credit notes saved the 2022 holiday season…
      • Figure 20: Holiday bookings in the last three months, 2017-22
    • …but market’s momentum is set to come to a halt
      • Figure 21: Plans to book a holiday in the next three months, 2017-22
    • More destinations are targeting high-quality visitors rather than higher volumes
    • EU entry/exit scheme may cause disruption at Port of Dover
    • The journey to net zero
    • New working culture has created opportunities to work from abroad
  7. Launch Activity and Innovation

    • Technology enables new real-life experiences…
    • …and new ways to promote experiences
    • Brands strive to be more inclusive
    • Airbnb includes diversity as a measure for executive compensation
    • All-terrain wheelchairs introduced to make the outdoors more accessible in Georgia
    • Travel sector continues to invest in achieving net zero emissions
    • Scotland provides funding to install nearly 200 EV charge points near popular tourist routes
    • Air Canada invests in technology that pulls carbon directly out of the air
    • British Airways’ new platform to help travellers understand and address their travel emissions
    • Thalys to be renamed Eurostar in 2023
    • New wellbeing initiatives launched for travellers
    • XWELL expands holistic spa and wellness experience at US airports
    • geoLAGON plans to build the world’s first energy-self-sufficient geoLAGOON village
  8. Holiday Destinations – Visited

    • Holiday participation did not fully recover in the year to October 2022
      • Figure 22: Destinations visited on holiday in the past 12 months, 2018-22
    • Holiday participation in Wales reaches five-year high
      • Figure 23: Destinations visited on holiday in the past 12 months, by country, 2018-22
  9. Holiday Destinations – Future Intentions

    • Desire to travel is still there
      • Figure 24: Intentions to visit destinations, 2020-22
    • Strong pent-up demand for overseas travel
      • Figure 25: Intentions to visit destinations, by country, 2020-22
    • Warmer temperatures could benefit the UK as a holiday destination
      • Figure 26: Attitudes towards the impact of heatwaves on the UK’s attractiveness, by demographics, 2022
  10. Holiday Types – Participation vs Future Intentions

    • City breaks most desired holiday type in the UK, but growth potential lags behind
      • Figure 27: Participation and future holidaying intentions in the UK, by holiday type, 2019 vs 2022
    • Beach holidays most desired type of overseas holiday
    • Overseas city breaks under pressure
      • Figure 28: Participation and future holidaying intentions abroad, by holiday type, 2019 vs 2022
  11. Holiday Spending

    • Nearly half of overseas holidaymakers plan to spend £1,000+ on their most expensive break
      • Figure 29: Amount planning to spend on the most expensive holiday in the next 12 months, by destination, 2022
  12. Interest in Products and Services

    • High interest in all-inclusive holidays and early booking discounts
      • Figure 30: Interest in products and services when booking, 2022
    • Many would support booking systems to avoid overcrowding in public tourist areas
      • Figure 31: Attitudes towards booking systems in popular public tourist areas and accessing loans, 2022
    • Paying after returning from the holiday appeals to nearly half of 16-34 year olds
      • Figure 32: Attitudes towards paying after returning from the holiday, by demographics, 2022
  13. Multi-centre Holidays

    • Multi-centre holidays have a broad appeal
      • Figure 33: Attitudes towards multi-centre holidays, by demographics, 2022
    • City and beach is the most desired combination for a multi-centre break
      • Figure 34: Interest in types of destinations when being on a multi-centre holiday, 2022
  14. Appendix – Data Sources, Abbreviations and Supporting Information

    • Abbreviations
    • Consumer research methodology
  15. Appendix: Forecast Methodology

    • Volume forecast and prediction intervals for total holidays
      • Figure 35: Lower-bound, central and upper-bound forecast for the total volume of holidays (domestic* and overseas) taken by UK residents, 2022-27
    • Value forecast and prediction intervals for total holidays
      • Figure 36: Lower-bound, central and upper-bound forecast for the total value* of holidays (domestic** and overseas) taken by UK residents, 2022-27
    • Volume forecast and prediction intervals for domestic holidays
      • Figure 37: Lower-bound, central and upper-bound forecast for the volume of domestic holidays taken by British residents, 2022-27
    • Value forecast and prediction intervals for domestic holidays
      • Figure 38: Lower-bound, central and upper-bound forecast for the value of domestic holidays taken by British residents, 2022-27
    • Volume forecast and prediction intervals for overseas holidays
      • Figure 39: Lower-bound, central and upper-bound forecast for the volume of overseas holidays taken by UK residents, 2022-27
    • Value forecast and prediction intervals for overseas holidays
      • Figure 40: Lower-bound, central and upper-bound forecast for the value of overseas holidays taken by UK residents, 2022-27
    • Value forecast domestic and overseas holidays at constant prices
      • Figure 41: Value of domestic holidays taken by British residents at 2022 prices, 2022-27
      • Figure 42: Value of overseas holidays taken by UK residents at 2022 prices, 2022-27
    • Market drivers and assumptions
    • Forecast 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.

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Data

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*databooks not available with UK B2B Industry reports.

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