UK Package vs Independent Holidays Market Report 2024
Consumer confidence is much stronger than one year ago, which has had a positive impact on holidaying intentions.
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Executive Summary
- Opportunities for the package and independent holiday market
- Three big opportunities for the package holiday market
- Three big opportunities for the independent holiday market
- Market dynamics and outlook
- Market size and forecast overseas package holidays
- Market size and forecast overseas independent holidays
- Market predictions
- By 2028, the value of the overseas package holidays market is forecast to have grown to £26.2 billion
- The value of overseas independent holidays is expected to reach £31.4 billion in 2028
- Double digit growth in passenger licenses for nearly all top-10 ATOL holders in 2024
- Jet2holidays, TUI and We Love Holidays are the largest ATOL holders
- Financial confidence dipped slightly in March 2024
- Graph 1: the financial confidence index, 2016-24
- The number of people of pensionable age will grow by 11% between mid-2020 and mid-2030
- Graph 2: population by life stage, mid-2020, mid-2030 and mid-2045
- Protests in Canary Islands against overcrowding
- What consumers want and why
- The desire to travel has increased further
- Graph 3: planned destination for the main holiday in the next 12 months, 2021-24
- Even split between overseas independent and package holidays
- Graph 4: expected booking method for main holiday in the next 12 months, by destination, 2024
- Booking convenience has become a bigger draw for booking package holidays
- Group holidays/escorted tours most likely to be booked as a package
- Graph 5: how travellers plan to book their main holiday in the next 12 months, 2024
- The biggest difference in perception is with customisation
- Innovation and marketing
- Tour operators continue to expand into experiences
- Brands keep investing in a greener future and learn as they go
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Market Dynamics
- Market size
- Volume of overseas package holidays continued to recover
- Graph 6: volume of overseas package holidays taken by UK residents, 2016-23
- Value of overseas package holidays exceeds pre-pandemic levels
- Graph 7: value of overseas package holidays taken by UK residents, 2016-23
- Volume of independent holidays is close to pre-COVID levels
- Graph 8: volume of overseas independent holidays taken by UK residents, 2016-23
- Value of overseas independent holidays well above pre-pandemic levels
- Graph 9: value of overseas independent holidays taken by UK residents, 2016-23
- Roughly six in 10 overseas holidays are independent holidays
- Graph 10: share of package vs independent holidays, 2015-23
- Consumers spend more on package holidays
- Market forecast
- By 2028, the volume of overseas package holidays is forecast to have grown to 25.3 million holidays
- By 2028, the value of the overseas package holidays market is forecast to have grown to £26.2 billion
- The volume of overseas independent holidays is expected to reach 37.6 million in 2028
- The value of overseas independent holidays is expected to reach £31.4 billion in 2028
- Both the overseas package and independent holiday segments are expected to grow
- Market segmentation
- Holidays to Mexico, Caribbean and Turkey are most likely to be as a package
- Graph 11: package vs independent share, by destination, based on volume of trips taken by UK residents, 2022/23
- Spain, Greece and Turkey are the leading package holiday destinations
- Spain, France and Italy are the leading holiday destinations for independent holidays
- Strong variation in performance between holiday destinations
- Holidays of 4 to 13 nights are the fastest recovering segment
- Graph 12: overseas independent holiday volume, by duration, 2018-19, 2021-22 and 2022-23
- Graph 13: overseas package holiday volume, by duration, 2018-19, 2021-22 and 2022-23
- Market share
- Double digit growth in passenger licenses for nearly all top-10 ATOL holders in 2024
- Jet2holidays remained the market leader
- TUI aims to gain market share through more products and new guests
- We Love Holidays the fastest growing major ATOL holder in 2024
- easyJet continues to focus on growing its holidays business
- Macroeconomic factors
- Inflation rate declined in February 2024
- Graph 14: CPI inflation rate, 2021-24
- Financial confidence dipped slightly in March 2024
- Graph 15: the financial confidence index, 2016-24
- Social, environmental and legal factors
- The number of people of pensionable age will grow by 11% between mid-2020 and mid-2030
- Graph 16: population by lifestage, mid-2020, mid-2030 and mid-2045
- Regulatory and legislative changes
- Climate change likely to impact travel patterns
- Protests in Canary Islands against overcrowding
- Holiday bookings and booking intentions
- Positive start to the 2024 peak booking season
- Graph 17: holiday bookings in the last three months, 2018, 2019, 2023 and 2024
- Booking intentions remain promising
- Graph 18: plans to book a holiday in the next three months, 2018, 2019, 2023 and 2024
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What Consumers Want and Why
- Destination for main holiday
- The desire to travel has increased further
- Graph 19: holidaying intentions in the next 12 months, 2021-24
- Appetite to travel overseas has continued to recover
- Graph 20: planned destination for the main holiday in the next 12 months, 2021-24
- Plans to spend main break in the UK remains stronger than before the pandemic
- Graph 21: Destinations visited before the pandemic vs intentions to visit for main holiday in the next 12 months, 2020 and 2024
- Package vs independent bookings
- Over half of travellers plan to book their main break independently
- Even split between overseas main independent and package holidays
- Graph 22: expected booking method for main holiday in the next 12 months, by destination, 2024
- Overseas travellers are increasingly interested in booking a package
- Graph 23: expected booking method for main holiday abroad in the next 12 months, 2021-24
- Majority of domestic holidays are booked independently
- Graph 24: expected booking method for main holiday in the UK in the next 12 months, 2021-24
- Market for overseas package holidays best positioned to benefit from ageing population
- Preferences when booking a package holiday
- Package holiday providers need to balance the need for convenience against the need for customisation
- Younger travellers are most interested in building their own package
- Graph 25: preferences when booking a package holiday, by age, 2024
- Affluent travellers and families are more interested in tailoring their package
- TUI has increased focus on choice and flexibility
- Reasons for booking package holidays
- Easy & quick to arrange and value for money are the main reasons for booking package holidays
- Graph 26: reasons for booking package holidays, 2024
- Convenience has become a bigger draw for booking package holidays
- Graph 27: reasons for booking package holidays, 2021-24
- Easy & quick to arrange a bigger selling point
- Affluent travellers are looking for travel guidance and security
- The share of consumers that chose package holidays for the security they offer has stabilised
- Reasons for booking independent holidays
- Value for money remains the leading motivation for booking independently
- Graph 28: reasons for booking independent holidays, 2024
- Booking travel and accommodation at separate times has become more important
- Graph 29: reasons for booking independent holidays, 2021-24
- Scope to enhance feelings of joy when parents book their holiday independently
- Type of main holiday
- Group holidays/escorted tours most likely to be booked as a package
- Graph 30: how travellers plan to book their main holiday in the next 12 months, 2024
- Increased demand for domestic beach holidays, group touring holidays and luxury holidays
- Graph 31: expected holiday type for main holiday in the UK, 2021-24
- Overseas beach and city destinations continue to dominate
- Graph 32: expected holiday type for main holiday abroad, 2021-24
- Moving towards purposeful travel
- Product opportunities
- Booking period
- The majority of travellers are yet to book their main holiday
- Those who are yet to book are more price sensitive
- Graph 33: share of consumers who have already booked their main holiday, by annual household income, 2024
- Overseas package holidaymakers are most likely to have already booked
- Graph 34: booking period for main holiday, by destination and booking method, 2024
- Perceptions of holiday types
- Package and independent holidays each have their own strengths
- The biggest difference in perception is with customisation
- Helping travellers connect with local surroundings can help package holidays combat their touristy image
- Independently booked holidays less associated with easy to book and offering support
- Graph 35: share that associate package and independent holidays with ‘lack of support’, by age, 2024
- Graph 36: share that associate package and independent holidays with ‘easy to book’, by age, 2024
- Over-65s are less convinced that independent holidays offer good value for money
- Graph 37: share that associate package and independent holidays with ‘good value for money’, by age, 2024
- Younger travellers are less likely to associate package holidays with financial protection
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Innovation And Marketing Trends
- Launch activity and innovation
- Travel agent shops explore ways to engage with travellers
- Innovations around offering travel advice
- TUI is committed to a responsible and opportunity-driven approach to AI
- Brands keep investing in a greener future and learn as they go
- Expedia Group unites Expedia, Hotels.com and Vrbo into one loyalty program
- Tour operators continue to expand into experiences
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Appendix
- Supplementary data
- Volume of independent and package holidays by duration
- 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
- Methodology
- Consumer research methodology
Stay ahead of the curve and future-proof your business with Mintel’s UK Package vs. Independent Holidays Market Report 2024. Our full report is packed with consumer-led market intelligence, the latest UK package holiday market research, trends, and consumer behaviours affecting your business. Get a 360° view of the package and independent holiday sector, including package holidays market size, market 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.
Topics Analysed in this Report
- The outlook for the package and independent holiday sector for the next five years.
- Holidaying intentions and likely behavioural changes.
- Reasons for booking package vs independent holidays.
- Perceptions of package holidays and independently booked holidays.
Package and Independent Holiday Sector Market Overview
Consumer confidence is much stronger than one year ago, which has had a positive impact on holidaying intentions. Package holidays are expected to grow at a slightly faster pace than independently booked holidays. The ease with which these holidays can be arranged is an increasingly important reason for choosing this booking method.
- Package holidays market size: Spending on overseas package holidays taken by UK residents is estimated to have reached £21.1 billion in 2023.
Opportunities for Brands in the Independent and UK Package Holiday Market
Stimulate short-break market interest
Overseas short breaks holidays have seen a slower recovery as high inflation impacted demand. Promoting low-cost options, such as urban camping or highlighting the cheapest cities to travel to, will help operators to appeal to more price sensitive travellers.
- UK package holiday market statistics: Only 34% of travellers book their city break holidays via package deals.
Demand for customisable
Less than 1 in 5 travellers associate package holidays with being customisable. Communication around increased flexibility and choice offered by package holiday providers is important to engage with consumers evolving needs.
- Independent holiday sector consumer behaviour: 43% of travellers believe that independent holidays are customisable.
Purchase our UK Package vs. Independent Holiday Market Report to receive a five-year forecast, consumer behaviour analysis, and recommendations for market opportunities. Readers of this report may also be interested in our UK Travel Money Market Report 2024, or our range of Holidays and Travel Market Research.
Brands Featured in the Full Report
TUI, Tripadvisor, Skyscanner, Everywhere Guide, Barrhead, Booking.com, Intrepid, Expedia, EasyJet, loveholidays and many more.
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Expert Insights from a Travel Analyst
This report, written by Marloes De Vries, a leading research analyst, delivers in-depth commentary and analysis to highlight trends in UK sports market and add expert context to the numbers.
Package holidays remain popular due to their convenience, but operators face the challenge of catering to both those who prioritise speed and those who prefer to customise their trip.
Marloes De Vries
Travel Analyst
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