2025
9
UK Package vs Independent Holidays Market Report 2025
2025-07-25T09:25:47+00:00
REPC575549F_91A0_4F63_81C6_9C535F3C7519
2195
184945
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Report
en_GB
Holidays remain important to consumers, but it will take more effort to convert interest into bookings as the post-pandemic urge to travel has waned, cost pressures persist and competition increases.
UK
Holidays and Vacations
simple

UK Package vs Independent Holidays Market Report 2025

"There is a growing desire for richer and more diverse experiences, which will make combining different types of holidays in one trip increasingly popular."

Marloes De Vries, Travel Analyst

Marloes De Vries, Travel Analyst

UK Holiday Market – Trends and Insights

  • Holidays remain a priority for consumers, but converting interest into bookings is becoming more challenging due to waning post-pandemic travel enthusiasm, persistent cost pressures, and increased competition. Travelers are seeking ways to save, such as opting for cheaper destinations or traveling off-peak.
  • Overtourism remains a significant issue, with demonstrations in areas affected by rising housing costs, pollution, and congestion. In response, tour operators are increasingly promoting lesser-known destinations to alleviate pressure on popular hotspots.
  • Travellers are showing a growing interest in holidays that combine multiple trip types, reflecting a desire for richer and more varied experiences. Independent holidays appeal to those seeking flexibility and choice, but addressing concerns about managing multiple bookings and travel budgets is key to broadening their appeal.
  • Package holidays remain attractive for their convenience in booking complex itineraries. However, to expand their reach, brands must emphasize value and authenticity to meet evolving traveler expectations.
  • Supporting travellers with tools and services that simplify planning, manage costs, and offer unique experiences will be essential for brands to stay competitive in a dynamic travel market.

This report looks at the following areas:

  • The outlook for the package and independent holiday segments for the next five years
  • Changes in consumer intentions for their upcoming main holiday, including types of holidays in the UK and abroad, as well as the booking period
  • Barriers to booking package vs independent holidays and how travel companies can overcome them
  • Consumer expectations of what should be included in a package holiday, including transfers and hold luggage

Collapse All
  1. EXECUTIVE SUMMARY

    • Opportunities for the package and independent holiday market
    • Economic pressures will influence consumer choices
    • Help travellers discover new destinations
    • There continue to be opportunities for greater personalisation
    • Market dynamics and outlook
    • Market size and forecast overseas package holidays
    • Market size and forecast overseas independent holidays
    • Market predictions
    • Growing demand and rising prices boost value of overseas package holiday market
    • Value of independent holiday market expected to grow in the next five years
    • Competition is heating up
    • Graph 1: passengers licensed under ATOL protection, by top 5 ATOL holders, 2024-25
    • What consumers want and why
    • Most holidaymakers who want to go abroad plan to book their main holiday as a package
    • Graph 2: expected booking method for main holiday in the next 12 months, by destination, 2025
    • Beach holidays and city breaks are increasingly popular
    • Graph 3: expected holiday type for main holiday in the next 12 months, by expected booking method, 2025
    • Bookings are at a lower level
    • Graph 4: share of travellers who have already booked their main holiday, 2023-25
    • Many independent holidaymakers believe package holidays are more expensive
    • Graph 5: barriers to booking the main holiday as a package, 2025
    • Independent bookings hindered by convenience, planning and cost challenges
    • Graph 6: barriers to booking transport and accommodation for the main holiday separately, 2025
    • Accommodation, transport and transfers are central components of package holiday
    • Graph 7: elements that package holidaymakers consider essential rather than optional when booking a package holiday, % of respondents, 2025
    • Innovation and marketing
    • Several brands are aiming to grow in the dynamic package travel segment
    • Key innovation trends
  2. MARKET DYNAMICS

    • Market size
    • Volume of overseas package holidays increased
    • Graph 8: volume of overseas package holidays taken by UK residents, 2018-24
    • Value of overseas package holidays reaches new heights
    • Graph 9: value of overseas package holidays taken by UK residents, 2016-24
    • Volume of independent holidays continued to grow
    • Graph 10: volume of overseas independent holidays taken by UK residents, 2018-24
    • Value of overseas independent holidays reaches new record
    • Graph 11: value of overseas independent holidays taken by UK residents, 2018-24
    • Independent sector outperformed package holiday segment
    • Graph 12: volume of overseas package holidays taken by UK residents, 2016-24
    • Market forecast
    • Forecast – note on US trade disruption
    • Overseas package holiday volume set to reach new heights but uncertainty will dampen growth rates in the near term
    • Growing demand and rising prices boost value of overseas package holiday market
    • Volume growth for independent holidays will also pick up once uncertainty subsides
    • Value of independent holiday market expected to grow in the next five years
    • No major shifts are expected in the market share of package versus independent holidays abroad
    • Market share
    • Most major ATOL holders increased their ATOL licence numbers
    • Graph 13: passengers licensed under ATOL protection, by top 10 ATOL holders, 2023-25
    • Jet2holidays remained the market leader
    • TUI aims to grow without increasing operational risk
    • We Love Holidays and easyJet are the fastest growing major ATOL holders
    • Competition is heating up
    • Connected Trip remains part of Booking.com’s strategy
    • Market drivers
    • Consumer confidence did not dip amid geopolitical unrest…
    • Graph 14: the financial confidence index, 2016-25
    • …but global trade disruption poses a threat
    • US’s image as a holiday destination has been impacted
    • But there are also bright spots on the horizon
    • Demonstrations will increase pressure on the tourism sector to combat overtourism
    • Tackling overcrowding should be a priority
    • Holiday bookings are picking up after a slow start
    • Graph 15: holiday bookings in the last three months, 2023/24 and 2024/25
    • Booking intent remains comparable to last year
    • Graph 16: plans to book a holiday in the next three months, 2023/24 and 2024/25
    • Regulatory & legislative changes
  3. WHAT CONSUMERS WANT AND WHY

    • Destination for main holiday
    • Fewer Brits plan to take a holiday
    • Graph 17: holidaying intentions in the next 12 months, 2021-25
    • End of post-pandemic urge to travel abroad
    • Graph 18: planned destination for the main holiday in the next 12 months, 2021-25
    • Great growth potential for lesser-known destinations
    • Promoting long-haul travel can help travellers discover new destinations
    • Package vs independent bookings
    • Over half of travellers plan to book their main holiday independently
    • Travellers to European destinations most often book package holidays
    • The share of package vs independent in the domestic market is unchanged from last year
    • Graph 19: expected booking method for main holiday in the UK in the next 12 months, 2021-25
    • Package holidays have gained appeal among overseas travellers
    • Graph 20: expected booking method for main holiday abroad in the next 12 months, 2021-25
    • Contributors to the popularity of overseas package holidays for main trip
    • One third of package holidaymakers prefer to build their own package
    • Graph 21: preferences when booking a package holiday, 2025
    • Several brands are aiming to grow in the dynamic package travel segment
    • Profile of package vs independent bookers
    • All-inclusive deals will appeal to domestic package holidaymakers
    • Graph 22: age profile of those planning to book their main holiday in the next 12 months as a package vs independent, 2025
    • Independent travel in the UK and package holidays abroad are well positioned to benefit from the ageing population
    • Graph 23: age profile of those planning to book their main holiday in the next 12 months as a package vs independent, by destination, 2025
    • Appealing to a growing group of older travellers
    • Package holidays lose appeal among families with older children
    • Graph 24: expected booking method for main holiday abroad in the next 12 months, by age of children in household, 2025
    • Type of main holiday
    • Beach, luxury and group holidays are most often booked as a package
    • Graph 25: expected holiday type for main holiday in the next 12 months, by expected booking method, 2025
    • City breaks overtake rural holidays as most popular domestic holiday type
    • Graph 26: expected holiday type for main holiday in the UK, 2021-25
    • Demand for overseas beach holidays and city breaks reaches new heights
    • Graph 27: expected holiday type for main holiday abroad, 2021-25
    • Travellers want to experience more within one holiday…
    • Graph 28: average number of holiday types used to describe main holiday, 2023-25
    • …and major players are responding to this
    • Booking period
    • Bookings are at a lower level
    • Graph 29: share of travellers who have already booked their main holiday, 2023-25
    • Financial situation affects booking period
    • Graph 30: booking period for main holiday, by financial situation, 2025
    • Overseas package holidaymakers are most likely to have already booked
    • Graph 31: booking period for main holiday, by expected destination and expected booking method, 2025
    • Barriers to booking as a package
    • Many independent holidaymakers believe package holidays are more expensive
    • Itineraries that offer a sense of freedom will help appeal to independent travellers
    • Connecting travellers to quieter destinations
    • ‘Only Intrepid’ campaign launched to promote unique authentic travel experiences
    • White Desert’s new itinerary promotes seamless access to the world’s last hidden destinations
    • Communication around increased flexibility and choice is important to enhance appeal
    • Graph 32: barriers to booking the main holiday as a package, by age, 2025
    • Private transfers can appeal to families with younger children
    • Barriers to booking independently
    • Independent bookings hindered by convenience, planning and cost challenges
    • Complexity of different bookings biggest barrier to older generation
    • Graph 33: barriers to booking transport and accommodation for the main holiday separately, by age, 2025
    • Support travellers in managing travel expenses
    • Making the planning and booking process more personalised
    • Essential vs optional elements of a package holiday
    • Accommodation, transport and transfers are central components of a package holiday
    • Many younger travellers expect activities to be part of the basic package holiday offering
    • Graph 34: elements that package holidaymakers consider essential when booking a package holiday, by age, 2025
    • Essential-only city break packages will appeal
    • Graph 35: number of elements that package holidaymakers consider essential when booking a package holiday, by expected type of main holiday, 2025
    • Independent travellers prefer self-catering packages
  4. INNOVATION AND MARKETING TRENDS

    • Launch activity and innovation
    • Increased focus on destinations that have the capacity to grow
    • Brands are looking to increase their market share in the experiences category
    • Travel subscription services are on the rise
    • Brands are working towards offering more sustainable forms of transport
    • New initiatives to make tourism more inclusive
  5. APPENDIX

    • Supplementary data
    • Number of essential elements of a package holiday
    • Graph 36: number of elements that package holidaymakers consider essential when booking a package holiday, by expected booking method for main holiday, 2025
    • Market forecast data and methodology
    • Market size package vs independent – volume
    • Market size package vs independent – value
    • Market forecast and prediction intervals package holidays – volume
    • Market forecast and prediction intervals package holidays – value
    • Market forecast and prediction intervals independent holidays – volume
    • Market forecast and prediction intervals independent holidays – value
    • Value forecast package holidays at constant prices
    • Value forecast independent holidays at constant prices
    • Forecast methodology
    • Report scope and definitions
    • Market definition
    • Abbreviations and terms
    • Consumer research methodology

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