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Luxury Travel - UK - November 2017

Published By :

Mintel

Published Date : Nov 2017

Category :

Travel Services

No. of Pages : N/A

In the longer term, new growth opportunities in the market will come from a new generation of luxury consumers who value unusual experiences above material possessions, and who favour a more informal, less traditional kind of luxury aesthetic.

Table of Contents

OVERVIEW
What you need to know
Covered in this Report
EXECUTIVE SUMMARY
The luxury traveller market
Figure 1: Luxury traveller groups, August 2017
Under-45s most likely to reduce luxury spending as economy slows
UK falls down HNWI table
Figure 2: Top 10 nations for number of HNWIs*, 2016
Strong growth seen across many specialist brands
Figure 3: Leading luxury holiday specialist operators, by turnover, 2016
Getting personal
Wellness and gastronomy key elements
Figure 4: Elements of luxury travel, August 2017
North America and Asia are top luxury choices
Figure 5: Destinations visited for luxury holidays, by luxury traveller groups, August 2017
Cruise/escorted tours are key growth areas for specialist brands
Figure 6: Types of luxury holiday taken, by luxury traveller groups, August 2017
‘Comfort’ and ‘feeling special’ are most popular meanings attached to luxury travel
Figure 7: Meanings attached to luxury holidays, by luxury traveller groups, August 2017
Analogue luxury
Figure 8: Attitudes towards holidays, by luxury traveller groups, August 2017
What we think
ISSUES AND INSIGHTS
Targeting new-generation luxury clients
The facts
The implications
Potential for celebration breaks
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
Incomes squeezed even in top quintile
UK HNWI growth has been overtaken
Leading long-haul destinations
Mauritius, India, Vietnam and Japan among trending luxury destinations
Luxury cruises on crest of a wave
LGBT and mini-moon opportunities
MARKET BACKGROUND
Top household quintile sees real-term fall in income…
Figure 9: Average annual household income after tax and benefits, by quintile, 2008/09-2015/16
…but older travellers are less likely to reduce holiday spend
Figure 10: Agreement with the statement ‘Concerns about the UK economy mean that I am likely to spend less on holiday in the next 12 months’, by demographics, August 2017
UK HNWI growth has stalled
Figure 11: Top 10 nations for number of HNWIs*, 2014-16
Overseas holidays still up but growth rates slowing
Figure 12: Trends in the number and value of overseas holidays taken by UK residents, 2011-16
The hybrid long-haul traveller
Figure 13: Long-haul, short-haul and total overseas holiday volume by UK residents, 2011-16
Holidays to Spain and Italy booming
Figure 14: Top 20 overseas holiday destinations, by number of trips, 2012-16
Holidays to Caribbean up 18% in 2016
Figure 15: Top 15 long-haul holiday destinations, by number of trips by UK residents, 2015 and 2016
Maldives and Mauritius top Kuoni’s destination ranking
Japan currently a high-growth luxury destination
Figure 16: Top 20 luxury holiday destinations, Kuoni Annual Trends report, 2012-17
Ultra-luxury cruise enjoying surge in demand
Figure 17: Volume of UK ultra-luxury cruise passengers, 2010-16
Weddings in decline but spending is rising
Figure 18: Number of marriages in England and Wales, 2000-14
Same-sex marriage opportunity
COMPANIES AND PRODUCTS – WHAT YOU NEED TO KNOW
Kuoni remains largest luxury specialist but revenue growth is flat
Audley and ITC have become second and third-biggest players
A&K rethinks strategy in wake of Chinese investment
Leading French specialist enters UK market
‘Adventure plus comfort’ and wellness are key trends
LUXURY TRAVEL SPECIALISTS
Figure 19: Leading luxury holiday specialist operators, by turnover, 2010-16
Kuoni expanding its touring programme
Fast-growing Audley positions itself as tailor-made specialist
ITC emerges as a leading player following acquisition
Scott Dunn revenues have tripled since 2010
Kenwood has the highest six-year growth rate
Destinology to open second store following full Saga takeover
A&K targets new breed of traveller following Chinese takeover
French group Voyageurs du Monde enters UK market
LUXURY TRAVEL PRODUCT INNOVATION
A simpler luxury aesthetic
Luxury adventure
Cruise targeting younger premium travellers
All-inclusive wellness
Airbnb-deluxe
Self-exploration
A taste of the high life
THE CONSUMER – WHAT YOU NEED TO KNOW
Big spenders
Spa and fine dining are key elements at top end of market
North America and Asia are leading destination choices
Beach/city are most popular but cruise/escorted tours offer huge opportunity for specialist brands
Millennials more likely to value experiences over stuff
Feeling special is key at top end of market
Real luxury
Human values
Hibernation mode
DEFINING THE LUXURY TRAVELLER
One in 20 consumers spend £3,000+ per head on holiday
Figure 20: Amount spent on most expensive holiday taken, 2016 and 2017
One in 10 consumers take luxury short breaks
Figure 21: Duration of most expensive holiday taken, August 2017
Almost three in 10 holidaymakers have stayed in five-star accommodation
Figure 22: Use of premium/luxury holiday accommodation, August 2017
Luxury traveller groups
Figure 23: Luxury traveller groups, August 2017
THE LUXURY TRAVELLER – PRODUCTS AND SERVICES
Wellness and gastronomy are key elements
Figure 24: Elements of luxury travel, by luxury traveller groups, August 2017
Figure 25: Number of luxury travel elements in most expensive holiday, August 2017
THE LUXURY TRAVELLER – DESTINATIONS
North America and Asia are leading luxury destinations
Figure 26: Destinations visited for luxury holidays, by luxury traveller groups, August 2017
THE LUXURY TRAVELLER – HOLIDAY TYPES
Cruise and escorted tours have big luxury travel potential
Figure 27: Types of luxury holiday taken, by luxury traveller groups, August 2017
Experimental luxury group
Figure 28: Number of luxury holiday types taken in past five years, August 2017
Dream holidays
THE LUXURY TRAVELLER – MEANING OF LUXURY
Millennials value luxury experiences more than products
Comfort, feeling special, unique experiences and memories are leading associations
Figure 29: Meanings attached to luxury holidays, by luxury traveller groups, August 2017
Escape, surprise and adventure are important themes for younger luxury travellers
Room with a view
THE LUXURY TRAVELLER – ATTITUDES
Authenticity the new luxury?
Specialist advice highly valued by luxury travellers
Unconventional self-image
It’s not what you own but where you’ve been
Figure 30: Agreement with attitudinal statements towards holidays, by luxury traveller groups, August 2017
Luxury as an analogue experience
Luxury Occasions
Under-45s most likely to reduce luxury spend
CHAID ANALYSIS – ATTITUDES
Methodology
A bucketful of memories
Figure 31: Target groups based on statements about holidaying – CHAID – Tree output, August 2017
Figure 32: Target groups based on statements about holidaying – CHAID – Table output, August 2017
APPENDIX
Definitions
Abbreviations

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