866-997-4948(US-Canada Toll Free)

Holiday Rental Property - UK - June 2017

Published By :

Mintel

Published Date : Jun 2017

Category :

Travel Services

No. of Pages : N/A

There are significant opportunities for the incorporation of value-added products beyond basic bricks-and-mortar accommodation, and better integration of property rental within a more holistic holiday experience – in the shape of extra services within the property as well as activities (provided by professionals or peer-to-peer networks) within the destination itself.

Table of Content

OVERVIEW
What you need to know
Covered in this Report

EXECUTIVE SUMMARY
7 million domestic holiday rentals in 2016
Figure 1: Volume forecast for the domestic holiday rental property market, 2012-22
Overseas rentals spending up 15% in 2016 but slowdown expected
Figure 2: Annual percentage change in the total number of overseas holidays taken by UK residents, 2011-Q1 2017
Big brands consolidate market power
Figure 3: Leading holiday rental property providers in the UK market, by number of listings, May 2017
One in four adults rent holiday property
Figure 4: Types of holiday accommodation used in the past three years, April 2017
Airbnb surge takes market share to 17%
Figure 5: Sources used for booking last holiday rental property, April 2017
Visuals are the biggest influence on booking
Outdoor space, pool and ‘localism’ are key extras
Figure 6: Popular extras when booking holiday rental property, April 2017
What we think

ISSUES AND INSIGHTS
Premium property potential
The facts
The implications
Room for specialist seniors brand
The facts
The implications
Budget families book four- to six-day breaks
The facts
The implications
Cross-selling/long-haul opportunities
The facts
The implications
Mixed-location, high-contrast holidays
The facts
The implications
Local food can help build bonds
The facts

THE MARKET – WHAT YOU NEED TO KNOW
Both domestic and overseas segments rise in 2016…
…but flatter outlook for 2017, particularly for rentals abroad
Independence day…
…but security concerns are affecting travel flows
South West/Spain dominate UK/overseas segments
Sharing economy faces tighter scrutiny

MARKET SIZE, FORECAST AND SEGMENT PERFORMANCE
UK domestic rentals up by 3% in 2016
Figure 7: Type of accommodation stayed at on holiday in the UK in the past 12 months, May 2017 versus March 2016
Figure 8: Trends in the volume and value of the market for domestic holiday rental property, 2012-22
Figure 9: Volume forecast for the domestic holiday rental property market, 2012-22
Figure 10: Value* forecast for the domestic holiday rental property market, 2012-22
Overseas rentals up 6% in 2016
Figure 11: Type of accommodation stayed at on holiday abroad in the past 12 months, May 2017 versus March 2016
Long-term growth prospects stronger in overseas segment
South West accounts for one in four domestic holiday rentals
Figure 12: Number of domestic holidays taken in holiday self-catering* property, by region, 2012-16

MARKET BACKGROUND
Households begin to feel the squeeze
Figure 13: UK average weekly earnings (excluding bonuses)* vs CPI inflation, percentage change year on year, January 2014-April 2017
Figure 14: Expected impact of UK vote to leave the EU on wider economy and personal finances, February 2017
Pound’s fall has had little impact on travel patterns
Figure 15: Spot exchange rate, Pound Sterling versus selected currencies, May 2016-May 2017
Figure 16: Trends in the number and value of domestic holidays taken by UK residents, 2011-16
Overseas growth curve likely to flatten in 2017
Figure 17: Trends in the number and value of overseas holidays taken by UK residents, 2011-16
Independent travel to Spain surges by 14% in 2016
Figure 18: Trends in the number of independent overseas holidays, 2011-16
Security concerns could affect city break apartment sector
Figure 19: Top 10 independently booked overseas holiday destinations, by number of trips, 2011-16
Pressure mounting to regulate P2P property
Urban listings could decline
Tax relief also under threat
Airbnb’s ‘buydeology’ stance

COMPANIES AND LAUNCH ACTIVITY – WHAT YOU NEED TO KNOW
Consolidation and globalisation
Airbnb hits 3 million listings and launches Trips product
HomeAway given marketing push
TripAdvisor makes fifth rental property purchase in nine years
Booking.com rental property listings up 48% in past 12 months
Wyndham stakes out territory in urban and premium sectors
Tour operators ramp up presence in property rental space

MARKET SHARE
Market continues to consolidate
Figure 20: Leading holiday rental property providers in the UK market, by number of listings, May 2017
Airbnb hits 3 million listings
HomeAway benefiting from Expedia marketing clout
TripAdvisor growing incrementally through acquisition
Booking.com has instant booking advantage
TUI launches new villa site
Wyndham dominates UK cottage and lodge sectors
Other domestic companies

PRODUCT INNOVATION
Airbnb evolving into full travel provider
Luxury rentals and P2P-plus
P2P future possibilities
Wyndham lodge brands go back to nature
New villa package focus from leading tour operators

THE CONSUMER – WHAT YOU NEED TO KNOW
Rentals is second-largest commercial accommodation sector
AB bias supports industry move towards premium rentals
Airbnb is single largest booking channel
Flexibility of duration is key
Power of images
Outdoor space, pool and localism are key incentives

USE OF HOLIDAY RENTAL PROPERTY
One in four adults have stayed in rental property in past three years
Figure 21: Types of holiday accommodation used in the past three years, April 2017
Holiday property has higher AB proportion than hotels
Figure 22: Demographic profile of holiday rental property customers versus hotel leisure guests in the past three years, April 2017
Room-only accounts for 7% of rentals
Figure 23: Type of property stayed in for last holiday, April 2017

HOLIDAY RENTAL PROPERTY BOOKING
Airbnb accounts for 17% of all holiday rentals
Data points to sharp rise in use of third-party brands
Figure 24: Sources used for booking last holiday rental property, April 2017
Potential for third-party senior brand
One-week booking still most popular but sector is adopting greater flexibility
Figure 25: Duration of last holiday property rental, April 2017
Four- to six-night breaks for families on tighter budget
Over one in three short break rentals made via Airbnb

HOLIDAY RENTAL PROPERTY LOCATIONS
One in five renters have been beyond Europe
Strong UK/overseas crossover
Figure 26: Holiday property rentals in the past three years, UK and overseas, April 2017
Clean air breaks
Dual-location opportunities
Figure 27: Location type of last holiday rental property, April 2017
Almost one in four rentals are in Spain
Figure 28: Destination of last holiday rental property abroad, April 2017

HOLIDAY RENTAL PROPERTY INFLUENTIAL FACTORS
Photo/video is critical selling factor
Figure 29: Important factors when booking a holiday rental property, April 2017
Figure 30: Factors rated as ‘very important’ when booking a holiday rental property, April 2017
Customer review is king but official ratings are still of value
Women prioritise local amenities, men prioritise indoor tech

HOLIDAY RENTAL PROPERTY FEATURES AND SERVICES
Outdoor space is most popular feature
Importance of localism
Figure 31: Popular extras when booking holiday rental property, April 2017
Urban professionals under 35 keenest on activities
Family explorers
Breaks for burn-out parents
21% of customers offer huge added-value opportunity
Figure 32: Number of extra features/services selected, April 2017
Staycation food packs
Pet-plus properties
Figure 33: Popular extras when booking holiday rental property, by domestic versus overseas renters, April 2017

APPENDIX
Definitions
Abbreviations

List of Table

NA

Make an enquiry before buying this Report

Please fill the enquiry form below.

  • Full Name *
  • Your Email *
  • Job Title
  • Company
  • Phone No. * (Pls. Affix Country Code)
  • Message
  • Security Code *