Stay ahead of the curve and future-proof your business with Mintel’s Package vs Independent Holidays Market Report 2023. Our full report is packed with consumer-led market intelligence, the latest trends and consumer behaviours affecting your industry. Get a 360° view of the UK holidays 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.
Package vs Independent Holidays – Market Outlook
After two years of significant disruption, the UK overseas holiday market has started to recover. However, thanks in large part to the ongoing cost-of-living crisis, the market has not yet returned to pre-pandemic levels.
- Package holidays market size: The UK package holiday market increased by 391.1% in 2022, slightly higher than the 326.8% increase in the UK independent holiday market. Highlighting that consumers are more receptive to the protection offered by package holidays following COVID-19 related disruption.
Package vs Independent Holidays – Consumer Trends
For overseas trips, UK holidaymakers are more likely to book their holiday independently (53%) than as a package (44%). The domestic holiday market is dominated by independent bookings, with 71% of holidaymakers preferring this method.Â
Know your consumer: package holidays
Mintel’s market research found that being easy and quick to arrange was one of the most important factors for booking a holiday as a package for 54% of holidaymakers. However, some believe that there are not enough options to customise the trip. In order to appeal to more younger consumers, package holiday providers need to offer a wider range of options when it comes to accommodation and departure times.
Know your consumer: independent holidays
Value for money has remained the leading reason for UK travellers to book a holiday independently, with 47% highly influenced by this factor. Many consumers cite that having the ability to choose what suits their individual needs is seen as a strength of this booking method. However, this can be time consuming, so the independent sector should utilise AI to offer a simpler booking process.
Leading Brands in the UK Holiday Market
This report covers UK holiday brands such as Jet2holidays, TUI UK, We Love Holidays, On the Beach Travel, Booking.com, Expedia Group, and more, including their respective market share, and features launch activity and innovations in the market.
Additional Features Included with Your Purchase
- Interactive Data Book:Â This gives you unlimited access to a consumer confidence tracker that is segmented into 25 different demographic categories.
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To learn how to connect with your audience, purchase our full UK Package vs Independent Holidays Market Report 2023. Discover lucrative innovation opportunities to help your business grow during times of financial uncertainty.
Expert Insights from a Specialist in the Travel Sector
This report, written by Marloes de Vries, a leading travel analyst, delivers in-depth commentary and analysis to highlight current trends in the UK holidays market and add expert context to the numbers.
The security that package holidays offer has become a less important purchase driver as a result of increased confidence in travel. However, the segment still has the potential to benefit from interest in all-inclusive holidays as more consumers look to control costs. Meanwhile, short breaks overseas remain under pressure, which is hindering the recovery of the independent segment to a greater extent.
Marloes de Vries
Associate Director – Travel
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Overview
- Key issues covered in this Report
- Products covered in this Report
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Executive Summary
- The five-year outlook for the UK holiday market
- Figure 1: Category outlook, 2023-27
- The market
- In 2022, consumers were more receptive to the protection offered by package holidays
- The value of package and independent holidays will recover ahead of volume
- Figure 2: Forecast value* of overseas package holidays taken by UK residents, 2017-27
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- Figure 3: Forecast value* of overseas independent holidays taken by UK residents, 2017-27
- Consumer confidence in their financial situation remains relatively low
- Ongoing strikes continue to cause disruption
- Companies and brands
- Jet2holidays tops the ATOL holder list for the first time
- TUI plans its biggest ever Summer 2024 programme…
- Booking.com is the fastest-growing ‘newcomer’
- Expedia’s new trip planning feature powered by ChatGPT
- The consumer
- Demand for overseas breaks under pressure due to inflationary pressures
- Figure 4: Destinations visited vs intentions to visit for main holiday, 2020-23
- Almost six in 10 travellers plan to book their main break independently
- Figure 5: Booking method for main holiday in the next 12 months, by destination, 2023
- Ageing population more likely to benefit the package holiday market
- Domestic camping holidays have become more popular
- Figure 6: Holiday types for main holiday in the UK, participation vs intentions, 2020-23
- Demand for overseas beach and luxury holidays continues to exceed pre-pandemic levels
- Figure 7: Holiday types for main holidays abroad, participation vs intentions, 2020-23
- The convenience of arranging package holidays has become a stronger purchase driver
- The need for security has fallen outside the top-three
- Figure 8: Reasons for booking package holidays, 2021-23
- Independent travellers love the fact that they are in control, but the planning process remains time-consuming
- Figure 9: Reasons for booking independent holidays, 2021-23
- Lack of transparency when it comes to the environmental impact of holiday options
- Figure 10: Attitudes towards holidays, 2023
- More choice is an effective way to increase the attractiveness of package holidays
- Figure 11: Ways to increase the attractiveness of package holidays, by age, 2023
- Local and unique experiences will help brands to appeal to independent travellers
- The five-year outlook for the UK holiday market
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Issues and Insights
- Inflationary pressures have affected most travellers’ holiday budgets
- Offering greater choice will help the package holiday segment appeal to younger travellers
- The independent sector should utilise AI to offer a simpler booking process
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Market Size and Performance
- The overseas holiday market started its recovery in 2022…
- …with consumers more receptive to the protection offered by package holidays
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- Figure 12: Volume of overseas package and independent holidays taken by UK residents, 2015-22
- Figure 13: Value of overseas package and independent holidays taken by UK residents, 2015-22
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Market Forecast
- The five-year outlook for the UK holiday market
- Figure 14: Category outlook, 2023-27
- The value of package and independent holidays will recover ahead of volume
- Figure 15: Forecast volume of overseas package holidays taken by UK residents, 2017-27
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- Figure 16: Forecast volume of overseas independent holidays taken by UK residents, 2017-27
- Figure 17: Forecast value* of overseas package holidays taken by UK residents, 2017-27
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- Figure 18: Forecast value* of overseas independent holidays taken by UK residents, 2017-27
- Learnings from the last income squeeze
- Forecast methodology
- The five-year outlook for the UK holiday market
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Market Segmentation
- Spain remains leading destination
- Turkey and Greece among the best-performing destinations in 2022
- Slower recovery of destinations that rely more on shorter breaks
- France faces additional challenges
- Figure 19: UK overseas independent and package holiday volume, top 10 destinations, 2018-19 vs 2021-22
- Families with children among the harder-hit segments
- Figure 20: UK overseas independent and package holiday volume, by age, 2018-19 vs 2021-22
- One to three-night holidays are slower to recover
- Figure 21: UK overseas independent and package holiday volume, by duration, 2018-19 vs 2021-22
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Market Drivers
- Consumer confidence in their financial situation remains relatively low
- Figure 22: The Financial Confidence Index, 2009-23
- Holiday bookings hit pre-pandemic levels, but future bookings are under pressure
- Figure 23: Holiday bookings in the last three months, 2017-23
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- Figure 24: Plans to book a holiday in the next three months, 2017-23
- Ongoing strikes continue to cause disruption
- Disruption caused by air traffic control is a particular concern
- The CAA ran a second consultation on the ATOL Reform
- Consumer confidence in their financial situation remains relatively low
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Market Share
- Jet2holidays tops the ATOL holder list for the first time
- Jet2holidays continues to invest in its customer-first strategy
- TUI plans its biggest-ever Summer 2024 programme…
- …while the brand is testing new products to broaden its client base
- Figure 25: Passengers licensed under ATOL protection, by top 10 ATOL holders, 2018-23
- We Love Holidays becomes the third largest ATOL holder
- Booking.com is the fastest-growing ‘newcomer’
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Launch Activity and Innovation
- Automated tools to provide travel expertise
- Expedia’s new trip planning feature powered by ChatGPT
- Figure 26: Expedia’s in-app conversational trip planning experience powered by ChatGPT, 2023
- Airbnb expands Solo Traveller Safety feature to more users
- Focus on convenience to increase perceived value
- Jet2holidays launched Express Transfers to provide faster group transfers
- easyJet expands Twilight Bag Drop service
- Unique and exclusive experiences to stand out
- Newmarket Holidays launches Newmarket Exclusive collection
- Airbnb speeds up the development of unique accommodation
- Bringing travellers closer to the local culture
- Decentralised hotel opens in Japanese city
- Holland America Line introduces extended Legendary Voyages to offer an in-depth experience
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Holidaying Destination
- Demand for overseas breaks under pressure due to inflationary pressures
- Figure 27: Destinations visited vs intentions to visit for main holiday, 2020-23
- Demand for overseas breaks under pressure due to inflationary pressures
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Package vs Independent Bookings
- Almost six in 10 travellers plan to book their main break independently
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- Figure 28: Booking method for main holiday in the next 12 months, by destination, 2023
- Ageing population more likely to benefit the package holiday market
- Figure 29: Demographic profile of package vs independent bookers, by destination, 2023
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Holiday Types
- Domestic camping holidays have become more popular
- Figure 30: Holiday types for main holiday in the UK, participation vs intentions, 2020-23
- Demand for overseas beach and luxury holidays continues to exceed pre-pandemic levels
- Figure 31: Holiday types for main holidays abroad, participation vs intentions, 2020-23
- Luxury holidays, escorted tours and beach holidays most likely to be booked as a package
- Figure 32: How travellers plan to book their main holiday in the next 12 months, 2023
- Domestic camping holidays have become more popular
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Reasons for Booking Package Holidays
- The convenience of arranging package holidays has become a stronger purchase driver
- The need for security has fallen outside the top-three
- Figure 33: Reasons for booking package holidays, 2021-23
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Reasons for Booking Independent Holidays
- Independent travellers love the fact that they are in control…
- …but there is room to enhance feelings of joy in the planning and booking process
- AI enables brands to provide human-like advice and support at scale
- Figure 34: Reasons for booking independent holidays, 2021-23
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Attitudes towards Holidays
- Lack of transparency when it comes to the environmental impact of holiday options
- Figure 35: Attitudes towards holidays, 2023
- Inflationary pressures have affected most travellers’ holiday budget
- Figure 36: Demand for all-inclusive holidays, CHAID analysis, 2023
- Lack of transparency when it comes to the environmental impact of holiday options
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Improving the Attractiveness of Package Holidays
- The desire for a greater choice of flight departure times is high across demographics…
- …while the younger crowd craves more choice of accommodation types and holiday durations
- Figure 37: Ways to increase the attractiveness of package holidays, by age, 2023
- Local and unique experiences will help brands to appeal to independent travellers…
- …and so will self-guided tours
- Figure 38: Ways to increase the attractiveness of package holidays, by booking method, 2023
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Appendix – Data Sources, Abbreviations and Supporting Information
- Abbreviations
- Consumer research methodology
- Methodology CHAID analysis
- Figure 39: Package vs Independent Holidays – CHAID analysis, 2023
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Appendix – Forecast Methodology
- Volume forecast and prediction intervals for overseas package holidays
- Figure 40: Lower-bound, central and upper-bound forecast for the volume of overseas package holidays taken by UK residents, 2022-27
- Value forecast and prediction intervals for overseas package holidays
- Figure 41: Lower-bound, central and upper-bound forecast for the value* of overseas package holidays taken by UK residents, 2022-27
- Volume forecast and prediction intervals for overseas independent holidays
- Figure 42: Lower-bound, central and upper-bound forecast for the volume of overseas independent holidays taken by UK residents, 2022-27
- Value forecast and prediction intervals for overseas independent holidays
- Figure 43: Lower-bound, central and upper-bound forecast for the value* of overseas independent holidays taken by UK residents, 2022-27
- Value forecast package and independent holidays at constant prices
- Figure 44: Value of overseas package holidays taken by UK residents at 2022 prices, 2022-27
- Figure 45: Value of overseas independent holidays taken by UK residents at 2022 prices, 2022-27
- Market drivers and assumptions
- Forecast methodology
- Volume forecast and prediction intervals for overseas package holidays
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