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Holiday Purchasing Patterns - Market Assessment

Published by: Key Note Publications Ltd

Published: Feb. 1, 2004 - 106 Pages


Table of Contents


Executive Summary

1. Introduction

OVERVIEW

RESEARCH

DEFINITIONS

Tourism

Forms of Tourism

Purpose of Tourism

Basic Tourism Units - Visits

Short Breaks

Inclusive or Package Holidays

Independent Holidays

2. Strategic Overview

MARKET DYNAMICS AND SEGMENTATION

Market Segmentation

Current Developments in the UK Holiday Market - Overview

Table 1: UK GDP and the UK Holiday Market by Volume and Value (£bn and million trips), 1998-2002

Table 2: UK Household Disposable Income at Current Prices (£m), 1998-2002

Exchange-Rate Fluctuations

Table 3: The Value of Sterling (exchange rate e/£),1998-2002

COMPETITIVE STRUCTURE AND DISTRIBUTION

UK Domestic Holiday Sector

Table 4: Booking Characteristics for Domestic Short Break Holiday Trips (% of respondents), 2002

UK Outbound Holiday Sector

The Vertically Integrated Travel Groups

Table 5: The 'Big Four' Vertically Integrated Tour-Operating Groups, 2003

Distribution

3. The Domestic Holiday Market

UK DOMESTIC HOLIDAYS

Table 6: The UK Domestic Holiday Market by Volume and Value (million trips and £bn), 1999-2003

Figure 1: The UK Domestic Holiday Market by Volume and Value (million trips and £bn), 1999-2003

Length of Stay

Table 7: The UK Domestic Holiday Market by Length of Stay by Volume and Value (million trips, £bn and %), 1999-2003

Figure 2: The UK Domestic Holiday Market by Length of Stay by Volume and Value (million trips and £bn), 1999-2003

Expenditure per Trip

Table 8: The UK Domestic Holiday Market by Average Expenditure per Trip (£), 1999-2003

Seasonality

Table 9: The UK Domestic Holiday Market by Seasonal Distribution of Trips (%), 1998-2002

Mode of Transport

Table 10: The UK Domestic Holiday Market by Main Mode of Transport Used (%), 1998, 1999 and 2002

Destination Trends

Table 11: Domestic Holiday Destinations by English Region (% of total trips, nights and expenditure), 2001

Product Trends

4. The Outbound Holiday Market

UK OUTBOUND HOLIDAYS

Table 12: The UK Outbound Holiday Market by Volume and Value (million trips and £bn), 1999-2003

Figure 3: The UK Outbound Holiday Market by Volume and Value (million trips and £bn), 1999-2003

Length of Stay

Table 13: The UK Outbound Holiday Market by Length of Stay by Volume and Value (million trips, £bn and %), 1999-2003

Figure 4: The UK Outbound Holiday Market by Length of Stay by Volume and Value (million trips and £bn), 1999-2003

Expenditure per Trip

Table 14: The UK Outbound Holiday Market by Average Expenditure Per Trip (£), 1999-2003

Seasonality

Table 15: The UK Outbound Holiday Market by Seasonal Distribution of Trips (%), 1998-2002

Mode of Transport

Table 16: The UK Outbound Holiday Market by Main Mode of Transport Used by Volume (million trips), 1998-2002

Destination Trends

Table 17: The UK Outbound Holiday Market by Destination Region by Volume (million trips), 1998-2002

Table 18: The UK Outbound Holiday Market by Destination Country and Holiday Type by Volume (000 trips and %), 2002

Product Trends

Table 19: The UK Outbound Holiday Market by Inclusive-Tour Share by Volume (million trips), 1998-2002

Table 20: The UK Outbound Holiday Market by Inclusive-Tour Share by Value (£m), 1998-2002

Niche Products

Table 21: The UK Ocean Cruise Market by Volume (000 cruise trips), 1998-2002

Independent Holidays Abroad

5. International Holiday Purchasing Patterns

MARKET DEVELOPMENTS

International Tourist Arrivals

Table 22: World International Tourist Arrivals by Region (million), 1998-2002

European Tourist Arrivals

Table 23: European Tourist Arrivals by Region (million), 2000-2002

Table 24: Expenditure on International Tourism - Top Ten Countries and Percentage Change ($bn and %), 2002

COMPETITOR ENVIRONMENT

Activity Holidays

European Operators

CONSUMER BEHAVIOUR

6. PEST Analysis

POLITICAL FACTORS

European Union

Legislation

ECONOMIC FACTORS

Exchange Rate

Taxation

Equity

SOCIAL FACTORS

Demographic Changes

Table 25: Percentage of Households in Great Britain by Size of Household and Number of Households (% and million), 1961, 1971, 1981, 1991 and 2001

More Variety

Deterrents

Sustainable Development

Media Coverage

TECHNOLOGICAL FACTORS

7. Consumer Dynamics

CONSUMER RESEARCH

Problems in Interpreting the Results

Table 26: Sources of Information and Decision-Making Factors in Holiday Purchase (% of respondents), 2003

REPEAT HOLIDAY PURCHASES

Table 27: UK Holiday Market - Penetration and Repeat Purchases (% of respondents), 1999-2003

Table 28: Profiles of Holidaymakers

by Number of Holidays in the Last 12 Months (% of respondents), 2003

DOMESTIC VERSUS OUTBOUND HOLIDAYMAKERS (S1 AND S2)

Table 29: UK Holidays Versus Holidays Abroad (% of respondents), 2003

SHORT BREAKS VERSUS LONG HOLIDAYS (S3 AND S4)

Table 30: Short Breaks Versus Long Holidays (% of respondents), 2003

HOLIDAY DECISION INFLUENCES

Holiday Brochures Versus Television Programmes (S5 and S6)

Table 31: Holiday Brochures Versus Television Programmes (% of respondents), 2003

TELEVISION ADVERTISEMENTS VERSUS TELETEXT (S7 AND S8)

Table 32: Television Advertisements Versus Teletext (% of respondents), 2003

INTERNET VERSUS MAGAZINE ARTICLES (S9 AND S10)

Table 33: Holidays on the Internet Versus Magazine Articles (% of respondents), 2003

WORD OF MOUTH (S11)

Table 34: Holidays Prompted by Word of Mouth (% of respondents), 2003

BOOKING THROUGH TRAVEL AGENTS OR VIA THE INTERNET (S12 AND S13)

Table 35: Holidays Booked Through Travel Agents and Via the Internet (% of respondents), 2003

BOOKING PROFILE - INFLUENCE OF THE INTERNET

Table 36: UK Holiday Market - Booking Profile (% of respondents), 1999-2003

Booked as a Package or Arranged Independently (S14 and S15)

Table 37: Package Versus Independent Holidays (% of respondents), 2003

EARLY VERSUS LATE BOOKINGS (S16 AND S17)

NEVER TAKING HOLIDAYS (S18)

Table 38: Early Versus Late Booking (% of respondents), 2003

Table 39: Those Never Taking Holidays (% of respondents), 2003

8. The Future

INTRODUCTION

The Political and Regulatory Environment

ECONOMIC AND SOCIAL FORECASTS 2004-2007

Economic Prospects

Table 40: Forecast of UK Gross Domestic Product (%), 2004-2007

Socio-Demographic Trends

Table 41: The Forecast UK Population by Gender (000), 2004-2007

HOLIDAY MARKET FORECASTS 2004-2008

Table 42: The Forecast UK Domestic and Outbound Holiday Market by Volume and Value (million trips and £bn), 2004-2008

Figure 5: The Forecast UK Total Domestic and Outbound Holiday Market by Volume and Value (million trips and £bn), 2004-2008

Table 43: The Forecast UK Outbound Holiday Market by Volume and Value (million trips and £bn), 2004-2008

Figure 6: The Forecast UK Outbound Holiday Market by Volume and Value (million trips and £bn), 2004-2008

9. Glossary

10. Further Sources

Associations

General Sources

Government and Official Sources

Other Sources

Bonnier Information Sources

Key Note Research

The Key Note Range of Reports

Abstract

This report reviews the holiday purchasing patterns of UK consumers. It includes short breaks and long holidays both at home and abroad.

The international travel and tourism market has been unstable in recent years with a number of unforeseen events having an impact on the market. Some of these have affected the international travel market overall, others have had more impact on the UK outbound market and some have had more affect on the domestic market. Since 1999, major influences on the market have included:

  • the abolition of duty free sales
  • fuel blockades at UK petrol stations
  • the restrictions imposed on the rail network after the Hatfield disaster
  • the events of 11th September 2001
  • the foot-and-mouth outbreak
  • severe acute respiratory syndrome (SARS)
  • the Iraqi war.
Despite the instability caused by these events, the underlying trend in the demand for holidays continues to move ahead of the growth in gross domestic product (GDP) and disposable income. The breaking down of border restrictions, the increasing interest in travel as a leisure activity, the fall in the real cost of travelling and the change in modern lifestyles are all factors that are driving demand ahead of economic activity. This, combined with the growth in the value of sterling, has had a positive effect on outbound holidays, which are growing at a faster rate than domestic holidays.

UK consumers expect more choice, variety and individuality and the market panacea of 'pile them high, sell them cheap' is no longer a recipe for success for the holiday market in general, and for the outbound holiday market in particular. Although mass-market sun and sea holidays are still the bedrock of the outbound holiday market, it is specialist holidays targeted at particular market segments that are the key to profitability. Many of the major outbound tour operators offer large portfolios providing a range of different product brands targeted at different markets.

The driving force behind the underlying growth in the UK holiday market is the increasing level of repeat purchases or multi-holidaymaking in any year. Since 1999, the percentage of UK adults taking an annual holiday has not changed significantly, with the exception of 2003. The growth in multi-holidaymaking has stimulated the market for short holidays in the UK, while long holidays in the UK have remained more or less on a plateau. Outbound holiday growth has been much more dynamic than domestic holiday growth with long and short holidays each showing increases. Much of the growth in short holidays abroad has been stimulated by the establishment and expansion of low-cost airline services.

Low-cost airline services are characterised by direct independent booking facilities via the Internet. Their operation has encouraged a growth in the use of the Internet for seeking information on travel and for booking transport and accommodation. The Internet is also an ideal distribution medium for many travel and transport requirements and allows direct bookings to be made to package-holiday operators.

Travel agents, in general, appear to be most affected by the fact that more bookings are being made directly over the Internet by the consumer, although there are many travel agents that have capitalised on Web bookings.

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