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HOLIDAY PLANNING AND BOOKING PROCESS - UK - MAY 2018

Published By :

Mintel

Published Date : May 2018

Category :

Travel Services

No. of Pages : N/A

There are growing opportunities for brands around convenience and capturing the ‘full traveller journey’. Consumers require tools that save them research time and cut through the complexity of the online world. They seek trusted one-stop shops, online and offline, where they can make all their arrangements quickly and easily

Table of Contents

OVERVIEW
What you need to know
Covered in this Report
EXECUTIVE SUMMARY
Holidays achieve record high despite climate of uncertainty
Figure 1: Volume forecast of domestic holiday bookings, 2012-22
Figure 2: Volume forecast of overseas holiday bookings, 2012-22
OTAs take on the big three in package holiday market
Figure 3: Passengers licensed under ATOL protection, by top 10 ATOL holders, April 2018
Booking.com dominates OTA/aggregator sector overall
Figure 4: Travel comparison websites/apps used to book holidays online in the last 12 months, April 2018
Cook remains leading travel retailer despite closures
Figure 5: Use of travel agent shops for holiday booking, September 2017
Consumer demand for holidays remains buoyant
Figure 6: Holiday Taking in the past 12 months, March 2017 versus April 2018
A third of holidays booked 4-8 weeks before travel
Figure 7: When last holiday was booked, April 2018
Mobile takes off
Figure 8: How last holiday was booked, March 2015- April 2018
Rise in online tour operator bookings
Figure 9: Online booking channels used, April 2018
Cost-cutting under-45s
Figure 10: Attitudes towards managing the cost of holidays, April 2018
The Instagrammable holiday
Figure 11: Further attitudes towards planning and booking holidays, April 2018
What we think
ISSUES AND INSIGHTS
Mobile booking reaches a tipping point amongst younger travellers
The facts
The implications
Time to charge?
The facts
The implications
TV & film opportunities
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
Holidays reached record levels in 2017
Brexit uncertainty could impact on market growth
Consumers still spending but more value-conscious
Holidays still a high priority
Holidaymakers looking for destinations where pound will go further
Oil price rises not yet affecting fares
MARKET SIZE AND FORECAST
Short break boom lifts domestic tourism to record level
Figure 12: Volume and value* of domestic holiday bookings, 2012-22
Overseas holidays reach new high
Figure 13: Volume and value* of overseas holiday bookings, 2012-22
Forecast
Figure 14: Volume forecast of domestic holiday bookings, 2012-22
Figure 15: Value* forecast of domestic holiday bookings, 2012-22
Figure 16: Volume forecast of overseas holiday bookings, 2012-22
Figure 17: Value* forecast of overseas holiday bookings, 2012-22
MARKET BACKGROUND
Consumers cautious but still spending
Figure 18: UK average weekly earnings (excluding bonuses)* vs CPI inflation, percentage change year-on-year, January 2014-March 2018
Figure 19: The financial well-being index*, January 2015-February 2018
Figure 20: The financial confidence index*, January 2015-February 2018
Travel remains a high priority
Figure 21: Holiday taking & holiday planning, January 2015-February 2018
Fall in pound has not stopped people travelling abroad
Figure 22: Spot exchange rate, pound sterling vs euro and US dollar, June 2016-April 2018
Rising oil prices could mean higher fares – but not yet
Figure 23: Average annual European Brent Crude oil prices 2013-2017, and average monthly PRICES JANUARY- April 2018
COMPANIES AND PRODUCTS – WHAT YOU NEED TO KNOW
59% of TUI holidays sold online
Jet2holidays focussing on 3rd party stores as well as online
Thomas Cook reports surge in mobile booking
Booking.com accounts for half of OTA/aggregator trips
Thomas Cook is market leader in travel shop retail
Apps, bots and payment tools
MARKET SHARE
Jet2holidays disrupts TUI/Thomas Cook dominance
Figure 24: Passengers licensed under ATOL protection, by top 10 ATOL holders, 2012-18
Booking.com used by over half of OTA bookers
Figure 25: Travel comparison websites/apps used to book holidays online in the last 12 months, April 2018
Travel shops continue to decline
New travel and retail partnerships
Figure 26: Use of travel agent shops for holiday booking, September 2017
LAUNCH ACTIVITY AND INNOVATION
Initiatives to help manage costs
Apps begin to take off
Rise of the bot
Harnessing the power of influentials
Culture Trip launches OTA
THE CONSUMER – WHAT YOU NEED TO KNOW
European trips and short breaks are up
Most popular booking window is 1-2 months before travel
Last minute bookers and long-term planners
Online smartphone bookings have taken off in past 12 months
Offline booking has also risen
OTAs retain leading market share
Helping the ‘holiday hassled’
Power of the screen
HOLIDAY TAKING
Growth in short-haul and short breaks in past 12 months
Figure 27: Holiday Taking in the past 12 months, April 2018 and March 2017
Figure 28: Last holiday taken, April 2018
City breaks and beach are most popular choices
Figure 29: Type of last holiday taken, April 2018
HOLIDAY BOOKING TIMES
A thirds of holidays booked 1-2 months before travel…
…but almost a fifth book less than a month in advance
Tempting early bookers with incentives
Figure 30: When last holiday was booked, April 2018
HOLIDAY BOOKING CHANNELS
Online booking has flattened but mobile shift has accelerated
Mobile surge driven by Millennials
Smartphone bookers more likely to take short breaks
Figure 31: How last holiday was booked, March 2015- April 2018
Counter-trend towards offline booking
Figure 32: Type of holiday booked by booking channel, April 2018
OTA share remains steady but tour operators see sharp rise in online bookings
Figure 33: Online booking channels used, April 2018
Figure 34: Online booking channels used by holiday taken, April 2018
Almost half of city breakers booking online use OTAs
Figure 35: Online booking channels used by holiday type, April 2018
Rise in online tour operator booking amongst most affluent groups
HOLIDAY PLANNING AND BOOKING – ATTITUDES & BEHAVIOUR
A fifth see holiday planning as a hassle
Figure 36: Attitudes towards planning holidays, April 2018
Figure 37: Attitudes towards planning holidays, by demographics, April 2018
Under-45s most likely to adopt cost-saving strategies
Figure 38: Attitudes towards managing the cost of holidays, April 2018
On screen inspiration
Power of the selfie
Figure 39: Further attitudes towards planning and booking holidays, April 2018
VR & chatbots appeal to youngest generation
Well-off, time-pressed travellers would pay for planning and booking
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Definitions
Abbreviations
APPENDIX – MARKET SIZE AND FORECAST
Figure 40: Domestic holidays, volume forecast, 2017-22
Figure 41: Domestic holidays, value* forecast, 2017-22
Figure 42: overseas holidays, volume forecast, 2017-22
Figure 43: Overseas holidays, value* forecast, 2017-22
Forecast methodology

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