2020
9
UK Travel Trends Market Report 2020
2020-09-09T10:55:37+01:00
OX1015592
2195
124847
[{"name":"Consumer and Market Trends","url":"https:\/\/store.mintel.com\/industries\/consumers-trends\/consumer-market-trends"},{"name":"Holidays and Travel","url":"https:\/\/store.mintel.com\/industries\/holidays-travel"}]
Report
en_GB
“The level of service provided by travel companies during the pandemic will influence consumers’ future choices. Travel companies that are able to learn and adapt their level of customer service…

£ 2,195 (Excl.Tax)

Report Summary

Providing the most comprehensive and up-to-date information and analysis of the UK Travel Trendsmarket including the behaviours, preferences and habits of the consumer.

A fifth of those who were open to taking a cruise prior to COVID-19 would no longer consider this type of holiday, even when a vaccine becomes available. Outbreaks of the virus on cruise ships and subsequent media coverage have caused permanent reputational damage to the industry. As older travellers are currently more risk-averse when it comes to travelling, it has never been more important for the cruise industry to win over younger audiences.

Booking levels are generally rising, albeit at a very slow pace and still well below levels seen last year. Confidence remains volatile, with events such as (regional) lockdowns, rising COVID-19 cases and the re-introduction of quarantining measures for several overseas holiday destinations (most notably Spain and France) impacting consumer demand for travel. Amid the uncertainties caused by COVID-19, cancellation policies have become much more important in travellers’ decision-making process.

There is less strong demand for hotel stays than prior to COVID-19, whilst holiday rental properties hold high growth potential. Though hotels are much more associated with hygiene, being with other people in an indoor space is putting people off staying in them. According to UK travellers, hotels should prioritise enhancing sanitisation procedures and social distancing measures.

The level of service provided by travel companies will influence consumers’ future choices. Companies that learn and adapt quickly to the ever changing situation caused by COVID-19 can gain a competitive advantage. More travel companies should look to offer online self-service options that allow travellers to easily amend bookings or view alternative dates and destinations in order to reduce reliance on call centres.

Read on to discover more details or take a look at all of our UK Holidays and Travel market research.

Quickly Understand

  • The impact of COVID-19 on the domestic and overseas holiday market.
  • Trends in booking intentions and consumers’ confidence in travelling.
  • Considered destinations over the longer term.
  • COVID-19 information needs and desired safety measures.
  • Company innovations in response to COVID-19.

Covered in this report

Definitions used: 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 featured: Co-operative Travel, TUI, Aerospace, Manchester Airport, Hilton, Culture Trip, Lonely Planet, Wellbeing Escapes and more.

Expert analysis from a specialist in the field

Written by Marloes de Vries, a leading analyst in the Travel sector, her extensive knowledge delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

The level of service provided by travel companies during the pandemic will influence consumers’ future choices. Travel companies that are able to learn and adapt their level of customer service quickly to the ever changing situation caused by COVID-19 are well positioned to gain a competitive advantage.
More brands should look to offer online self-service options that allow travellers to easily amend bookings or view alternative dates and destinations in order to reduce reliance on call centres.

Marloes de Vries
Senior Leisure and Travel Analyst

Table of Contents

  1. Overview

    • What you need to know
      • Key issues covered in this Report
        • Products covered in this Report
          • COVID-19: Market context
            • Economic and other assumptions
            • Executive Summary

                • The market
                  • Reintroduction of quarantine measure for arrivals from key holiday destinations expected to boost demand for staycations
                    • Figure 1: Forecast value of domestic holidays* taken by British residents, 2015-25 (prepared on 14 August 2020)
                    • Figure 2: Forecast value* of overseas holidays taken by UK residents, 2015-25 (prepared on 14 August 2020)
                  • Value deals alone will not be enough to convince price-sensitive traveller
                    • Mintel’s long-term outlook on the holiday market remains positive
                      • The impact of COVID-19 on travel
                        • Travel industry faces the biggest challenge in history with overseas travel taking the biggest hit
                          • Figure 3: Short, medium and long-term impact of COVID-19 on the UK travel market, 14 August 2020
                        • Companies and brands
                          • Consumers’ safety and protection have been central to company innovation
                            • More companies are working towards a greener comeback
                              • The consumer
                                • Booking intentions are creeping up, albeit at a slow pace
                                  • Figure 4: Actual bookings and plans to book a holiday in the next three months, by age, January 2019 to July 2020 (fieldwork dates in July 2020: 2-11 July)
                                • Vaccine will be essential for recovery
                                  • Figure 5: When consumers would consider holiday activities again, by destination, accommodation and holiday types, June 2020
                                • Longer-term outlook for London is positive, but capital faces headwinds in the short to medium term
                                  • Recovery of overseas holidays heavily impacted following reintroduction of quarantine measures
                                    • The US remains the most desired long-haul destination over the longer term
                                      • Cancellation policy more important than rescheduling policy
                                        • Figure 6: Preferred information regarding COVID-19, June 2020
                                      • Various safety measures required to boost confidence in flying
                                        • Figure 7: Preferred hygiene measures in hotels/resorts, airplanes and on cruises, June 2020
                                      • Travel insurance an essential
                                        • Figure 8: Attitudes towards the impact of COVID-19 on travel, June 2020
                                      • Outdoor activities have become more important when promoting wellness breaks
                                      • The Impact of COVID-19 on Travel

                                        • The market
                                          • Reintroduction of quarantine measure for arrivals from key holiday destinations expected to boost demand for staycations
                                            • Mintel’s long-term outlook on the holiday market remains positive
                                              • The consumer
                                                • Booking intentions are creeping up, albeit at a slow pace
                                                  • Vaccine will be essential for recovery
                                                    • Longer-term outlook for London is positive, but capital faces headwinds in the short to medium term
                                                      • Recovery of overseas holidays heavily impacted following reintroduction of quarantine measures
                                                        • Cancellation policy more important than rescheduling policy
                                                          • Enhanced cleaning and sanitisation considered a priority
                                                            • Companies and brands
                                                              • Consumers’ safety and protection have been central to company innovation
                                                                • More companies are working towards a greener comeback
                                                                • Issues and Insights

                                                                  • Enhanced customer service will help to gain a competitive advantage
                                                                    • Return to nature has become a more important wellness theme
                                                                    • The Market – Key Takeaways

                                                                      • Reintroduction of quarantine measures for key holiday destinations expected to boost demand for staycations
                                                                        • Reassuring messages remain key
                                                                        • Market Size and Forecast – Domestic and Overseas Holidays

                                                                          • Travel industry faces its biggest challenge in history with overseas travel taking the biggest hit
                                                                            • Figure 9: Short, medium and long-term impact of COVID-19 on the UK travel market, 14 August 2020
                                                                          • Lockdown
                                                                            • Re-emergence
                                                                              • Recovery
                                                                                • Recovery will be slow due to consumers’ concerns about their physical and financial wellbeing
                                                                                  • Mintel’s long-term outlook on the holiday market remains positive
                                                                                    • Reintroduction of quarantine measure for arrivals from key holiday destinations expected to boost demand for staycations
                                                                                      • Figure 10: Forecast volume of domestic holidays* taken by British residents, 2015-25 (prepared on 14 August 2020)
                                                                                      • Figure 11: Forecast value of domestic holidays* taken by British residents, 2015-25 (prepared on 14 August 2020)
                                                                                      • Figure 12: Forecast volume and value* of domestic holidays taken by British residents, 2015-25 (prepared on 14 August 2020)**
                                                                                    • Reintroduction of quarantine measures for key holiday destinations hits consumer confidence in travelling overseas
                                                                                        • Figure 13: Forecast volume of overseas holidays taken by UK residents, 2015-25 (prepared on 14 August 2020)
                                                                                        • Figure 14: Forecast value* of overseas holidays taken by UK residents, 2015-25 (prepared on 14 August 2020)
                                                                                        • Figure 15: Forecast volume and value* of overseas holidays taken by UK residents, 2015-25 (prepared on 14 August 2020)**
                                                                                      • Market drivers and assumptions
                                                                                        • Figure 16: Key drivers affecting Mintel’s market forecast, 2015-2025 (prepared on 10 August 2020)
                                                                                      • Learnings from the last recession
                                                                                        • Figure 17: Value sales of domestic and overseas holidays, 2009-15
                                                                                      • Forecast methodology
                                                                                      • Market Drivers

                                                                                        • Consumers have started to feel the impact of COVID-19 on their finances
                                                                                          • Figure 18: Changes in financial situation, July 2019, March 2020 and July 2020
                                                                                        • Value deals alone will not be enough to convince price-sensitive travellers
                                                                                          • Figure 19: Financial confidence in the year ahead, July 2019, March 2020 and July 2020
                                                                                        • More key holiday destinations removed from the UK’s list of travel corridors
                                                                                          • Figure 20: Top 15 destinations for overseas holidays taken by UK residents, by volume in 2019
                                                                                      • Companies and Brands – Key Takeaways

                                                                                        • Consumers’ safety and protection have been central to company innovation
                                                                                          • More companies are working towards a greener comeback
                                                                                            • Increased levels of stress create opportunities for wellbeing messages
                                                                                            • Launch Activity and Innovation

                                                                                              • Increased customer protection offered in response to COVID-19
                                                                                                • Co-operative Travel promises a cash refund within 10 working days
                                                                                                  • TUI offers pandemic cover at no extra cost
                                                                                                    • Tools to encourage social distancing
                                                                                                      • Manchester Airport is trialling a pre-booking system to reduce queue sizes
                                                                                                        • Aerospace company develops AI-based inflight vending machine
                                                                                                          • Travel brands invest in sustainable recovery
                                                                                                            • Culture Trip and Lonely Planet use their influence to encourage responsible travel
                                                                                                              • Hilton invests in sustainable travel and tourism in Africa
                                                                                                                • Initiatives to help reduce stress caused by COVID-19
                                                                                                                  • Iceland campaign invites consumers to release stress
                                                                                                                    • Wellbeing Escapes launches online retreats during pandemic
                                                                                                                    • The Consumer – Key Takeaways

                                                                                                                      • Consumers are still nervous about flying
                                                                                                                        • Appeal of outdoor activities in quieter areas remain high on consumers’ wish list
                                                                                                                          • Investments in customer service necessary to keep trust levels high
                                                                                                                          • Impact of COVID-19 on Booking Intentions

                                                                                                                            • Booking intentions are creeping up, albeit at a slow pace
                                                                                                                              • Figure 21: Actual bookings and plans to book a holiday in the next three months, by age, January 2019 to July 2020 (fieldwork dates in July 2020: 2-11 July)
                                                                                                                          • Impact of COVID-19 on Confidence in Travel

                                                                                                                            • Consumers are still nervous about flying
                                                                                                                              • Investments in customer service necessary to keep trust levels high
                                                                                                                                • Figure 22: Consumers’ confidence in holiday transport and accommodation types, 25 June 2020 to 7 August 2020)
                                                                                                                            • Speed of Recovery

                                                                                                                              • Holiday rental properties likely to make gains on hotels
                                                                                                                                • Figure 23: When consumers would consider holiday activities, by destination, accommodation and holiday types, June 2020
                                                                                                                              • Vaccine will be essential for recovery
                                                                                                                                • Figure 24: When consumers would consider holiday activities again, by destination, accommodation and holiday types, June 2020
                                                                                                                              • Reputational damage for cruise holidays
                                                                                                                                • Cruise operators challenged to get younger generation on board
                                                                                                                                  • Figure 25: Interest in activities once government travel restrictions are lifted, by age, June 2020
                                                                                                                              • Considered Destinations over the Longer Term

                                                                                                                                • Longer-term outlook for London is positive, but capital faces headwinds in the short to medium term
                                                                                                                                  • Figure 26: Considered UK holiday destinations in the next three years, June 2020
                                                                                                                                • Recovery of overseas holidays heavily impacted by reintroduction of quarantine measures
                                                                                                                                  • Figure 27: Considered holiday destinations in Europe in the next three years, June 2020
                                                                                                                                • Italy and Greece could benefit from reintroduction of quarantine measures
                                                                                                                                  • Figure 28: Intentions to visit short-haul destinations in the two years following June 2020, by intentions to visit other short-haul destinations
                                                                                                                                • The US remains the most desired long-haul destination over the longer term
                                                                                                                                  • Figure 29: Considered holiday destinations outside Europe in the next three years, June 2020
                                                                                                                              • COVID-19 Information Needs

                                                                                                                                • Cancellation policy more important than rescheduling policy
                                                                                                                                  • Majority of travellers prefer to be informed about hygiene measures
                                                                                                                                    • Figure 30: Preferred information regarding COVID-19, June 2020
                                                                                                                                  • Older travellers require more extensive information regarding COVID-19
                                                                                                                                    • Figure 31: Preferred information regarding COVID-19 – Repertoire, June 2020
                                                                                                                                • Desired Safety Measures

                                                                                                                                  • Enhanced cleaning and sanitisation considered a priority
                                                                                                                                      • Figure 32: Preferred hygiene measures in hotels/resorts, airplanes and on cruises, June 2020
                                                                                                                                    • Various safety measures required to boost confidence in flying
                                                                                                                                    • Attitudes Towards Travel

                                                                                                                                      • Travel insurance an essential
                                                                                                                                        • Figure 33: Attitudes towards the impact of COVID-19 on travel, June 2020
                                                                                                                                      • COVID-19 has raised awareness on the environmental impact of travel
                                                                                                                                        • Most consumers will not give up on holidaying…
                                                                                                                                          • …but the pressure on companies to take action and expand greener travel options will increase
                                                                                                                                            • Demand for advice through online channels expected to increase
                                                                                                                                              • Figure 34: Attitudes towards travel agent advice, CHAID analysis, June 2020
                                                                                                                                            • Older population have become more open to visiting lesser-known cities
                                                                                                                                              • Figure 35: Interest in visiting lesser-known cities, May 2018 vs June 2020
                                                                                                                                            • Outdoor activities have become more important when promoting wellness breaks
                                                                                                                                              • Figure 36: Interest in taking wellness short breaks, June 2020
                                                                                                                                          • Appendix – Data Sources, Abbreviations and Supporting Information

                                                                                                                                              • Abbreviations
                                                                                                                                                • Consumer research methodology
                                                                                                                                                  • CHAID analysis methodology
                                                                                                                                                    • Figure 37: Travel trends – CHAID – table output, June 2020

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