Holidays - UK - February 2005

Contents

Introduction and Abbreviations

• Definitions
• Methodology
• Consumer research
• ACORN

Abbreviations

Summary of Key Report Findings

• Ageing and more affluent population
• Healthy economy
• Rising oil prices
• Weakened Dollar and Tsunami driving holidaymakers west
• Low-cost and Internet still driving independent market
• Number of holidaymakers and multiple holidays on the up
• Domestic holidays
• The overseas market
• Destinations abroad
• Segmentation
• Consumer protection
• Supply
• More flexibility
• Long-haul at top of holiday wish lists
• Consumer
• Important factors for an enjoyable holiday and destination preferences
• Spain - positive image with growth boosted by the independent sector
• France
• US and Florida
• The future

Market Factors

• Population developments: lifestage
• Figure 1: Adult population, by lifestage, 1999-2009
• Population developments: socio-economic groups
• Figure 2: Adult population, by socio-economic group, 1999-2009
• The state of the economy
• Figure 3: GDP and PDI at 1999 prices and interest base rate, 1999-2009
• Figure 4: Growth rates of GDP and PDI compared with overseas holidays and expenditure all at current prices, 1995-2004
• Consumer confidence
• Rising oil prices
• Figure 5: Crude oil prices, 1999-2004
• Exchange rates
• Figure 6: Annual average exchange rates for Sterling against the euro and US Dollar, 1999-2004
• The impact of low-cost airlines
• Figure 7: Scheduled passenger uplift of main low-cost airlines, 1999-2003
• Increasing Internet usage and other technologies
• Figure 8: Internet penetration, by gender, socio-economic group and age, 1999-2004
• Figure 9: Penetration of Internet technologies, 2003-04
• Sustainability
• Earthquake

The Total Holiday Market

• Figure 10: Domestic and overseas holidays and expenditure, 1999-2005
• Multiple holidays becoming more common
• Figure 11: Number of holidays taken, 1999-2004

The Domestic Holiday Market

• Holidays
• Figure 12: Domestic holiday volume and expenditure, at constant and current values, 1999-2005
• Tourism expenditure by category
• Figure 13: Domestic tourism expenditure (including business and VFR), by category, 2002 and 2003
• Holiday length of stay
• Figure 14: Short versus long holidays, 1999-2004
• Number of holidays taken
• Figure 15: Number of domestic holidays taken, 2003 and 2004
• Domestic holidays by region
• Figure 16: Distribution of domestic holiday trips, 1999-2004

The Overseas Holiday Market

• Figure 17: Overseas holidays and expenditure, at constant and current prices, 1999-2005
• Short versus long holidays
• Figure 18: Short versus long holidays, by volume and value, 1999-2005
• Inclusive versus independent
• Figure 19: Inclusive holidays volume versus independent volume, 1999-2005
• Destinations abroad
• Figure 20: Outbound holiday visits, by region visited, 1999-2004
• Figure 21: Top 20 inclusive tour destinations for the British, 1999-2004
• Figure 22: Top 20 independent holiday destinations for the British, 1999-2004
• More holidays taken during the year
• Figure 23: Number of holidays abroad taken, 2003 and 2004

Market Segmentation

• Figure 24: Type of holiday taken on last holiday, UK and abroad, 1999-2004
• Beach/resort holidays
• City breaks
• Coach tours
• Figure 25: Summary of coach market, 1999-2005
• Cruise
• Figure 26: Passenger taking a river and ocean cruise, 1998-2004
• Holiday centres
• Figure 27: Value of the UK holiday centres market, 1999-2004
• Snowsports
• Figure 28: Market size, by volume and value, 1999/2000-2004/05

The British Holidaymaker and Spain

• Figure 29: Tourists to Spain, by top ten source markets, 1999-2003
• Figure 30: Tourists to Spain, by top ten source markets, cumulative January-November 2004
• Falling tour operator capacity
• Marketing
• Holidaymakers to Spain
• Figure 31: Holidaymakers to Spain, by gender, age and socio-economic group, October 2004
• Figure 32: Holidaymakers to Spain, by region and ACORN categories, October 2004
• Figure 33: Holidaymakers to Spain, by detailed lifestage groups, October 2004
• Figure 34: Holidaymakers to Spain, by media usage, supermarket usage and commercial TV viewing, October 2004
• Attitudes towards Spain as a holiday destination
• Figure 35: Attitudes towards Spanish holidays, October 2004
• Essential factors for an enjoyable holiday by holidaymakers to Spain
• Figure 36: Essential factors for an enjoyable holiday by Spanish holidaymakers, October 2004
• Agreement with positive statements
• Figure 37: Agreement with positive statements about Spain by Spanish holidaymakers, October 2004
• Agreement with negative statements
• Figure 38: Agreement with negative statements about Spain by Spanish holidaymakers, October 2004

Consumer Behaviour and Targeting Opportunities - Detailed Demographics

• Top attitudes towards Spain
• Figure 39: Top attitudes towards Spain, by gender, age and socio-economic group, October 2004
• Figure 40: Top attitudes towards Spain, by region and ACORN categories, October 2004
• Figure 41: Top attitudes towards Spain, by detailed lifestage groups, October 2004
• Figure 42: Top attitudes towards Spain, by media usage, supermarket usage and commercial TV viewing, October 2004

The British Holidaymaker and France

• Figure 43: French tourist arrivals and receipts, 2000-03
• Figure 44: UK holiday arrivals in France, 2000-03
• Marketing
• Holidaymakers to France
• Figure 45: Holidaymakers to France, by gender, age and socio-economic group, October 2004
• Figure 46: Holidaymakers to France, by region and ACORN categories, October 2004
• Figure 47: Holidaymakers to France, by detailed lifestage groups, October 2004
• Figure 48: Holidaymakers to France, by media usage, supermarket usage and commercial TV viewing, October 2004
• Attitudes towards France as a holiday destination
• Figure 49: Attitudes towards French holidays, October 2004
• Essential factors for an enjoyable holiday by holidaymakers to France
• Figure 50: France visitors vs. non-visitors, essential factors for making a good holiday, October 2004
• Agreement with positive statements
• Figure 51: Agreement with positive statements about France by French holidaymakers, October 2004
• Agreement with negative statements
• Figure 52: Agreement with negative statements about France by French holidaymakers, October 2004

Attitudes towards holidays in France - Detailed demographics

• Figure 53: Top attitudes towards France, by gender, age and socio-economic group, October 2004
• Figure 54: Top attitudes towards France, by region and ACORN categories, October 2004
• Figure 55: Top attitudes towards France, by detailed lifestage groups, October 2004
• Figure 56: Top attitudes towards France, by media usage, supermarket usage and commercial TV viewing, October 2004

The British Holidaymaker and the US

• Figure 57: Tourist arrivals to the US, by major source markets, 1999-2003
• British tourists to the US
• Figure 58: British visitation estimates to census regions and states, 2002 and 2003
• Figure 59: Purpose of visit, UK visitors to the US, 2002 and 2003
• Figure 60: Selected traveller characteristics, UK visitors to the US, 2002 and 2003
• Marketing
• Holidaymakers to Florida/US
• Figure 61: Holidaymakers to Florida and the US, by gender and age, October 2004
• Figure 62: Holidaymakers to Florida and the US, by region and ACORN categories, October 2004
• Figure 63: Holidaymakers to Florida and the US, by detailed lifestage groups, October 2004
• Figure 64: Holidaymakers to Florida and the US, by media usage, supermarket usage and commercial TV viewing, October 2004
• Attitudes towards Florida as a holiday destination
• Figure 65: Attitudes towards Florida as a holiday destination, October 2004
• Essential factors for an enjoyable holiday by holidaymakers to Florida
• Figure 66: Essential factors for an enjoyable holiday by holidaymakers to Florida, October 2004
• Agreement with positive statements
• Figure 67: Agreement with positive statements about Florida and the US by Florida and US holidaymakers, October 2004
• Agreement with negative statements
• Figure 68: Agreement with negative statements about Florida and the US by Florida and US holidaymakers, October 2004

Attitudes towards holidays in Florida - Detailed demographics

• Figure 69: Main attitudes towards Florida, by gender, age and socio-economic group, October 2004
• Figure 70: Main attitudes towards Florida, by region and ACORN categories, October 2004
• Figure 71: Main attitudes towards Florida, by detailed lifestage groups, October 2004
• Figure 72: Main attitudes towards Florida, by media usage, supermarket usage and commercial TV viewing, October 2004

Distribution

• Figure 73: How last holiday abroad was booked, 1999-2004
• Figure 74: Method used to book last holiday abroad, 2003 and 2004
• Figure 75: How last holiday abroad was booked, by booking method, 2004
• Leading travel websites
• Figure 76: Top 20 UK travel sites (based on visits market share) October 2004
• Researching holidays
• Figure 77: Most searched travel destinations, December 2004

The Supply Structure

Consumer protection

• ATOLs issued
• Figure 78: Passengers licensed to top ten groups and companies, year to September 1999-2004
• ATOL passengers carried
• Figure 79: ATOL passengers carried by the top ten travel companies, 12 months to March 2002-04
• More flexibility
• TUI UK
• Figure 80: World of TUI, Northern Europe division, financial performance, 2001-04
• MyTravel Group
• Figure 81: MyTravel Group plc, financial performance, 1999-2004
• Thomas Cook UK
• Figure 82: Thomas Cook AG and Thomas Cook UK, Financial performance, 2000/01-2002/03
• Figure 83: Thomas Cook AG and Thomas Cook UK, third quarter results 2002/03 and 2003/04
• First Choice Holidays plc
• Figure 84: First Choice Holidays plc, group financial performance, 1999-2004
• Cosmos Group
• Gold Medal International Ltd
• Figure 85: Gold Medal International, financial performance, 2000-04
• Trailfinders Ltd
• Figure 86: Trailfinders ltd, financial performance, 1999-2004
• Lastminute.com
• Figure 87: Lastminute.com, financial performance, 1999-2004
• Libra Holidays Group
• Figure 88: Libra Holidays Ltd, financial performance, 1999-2003
• Interactive Corporation - Expedia 101
• Figure 89: Expedia.com Ltd, financial performance, 2001 and 2002

The Consumer

Type of holiday taken

• Figure 90: Type of holiday taken in the past year, October 2004
• Independent versus package holidays
• Figure 91: Holidays taken in the past 12 months, by gender, age and socio-economic group, October 2004
• Figure 92: Holidays taken in the past 12 months, by region and ACORN categories, October 2004
• Figure 93: Holidays taken in the past 12 months, by detailed lifestage groups, October 2004
• Figure 94: Holidays taken in the past 12 months, by media usage, supermarket usage and commercial TV viewing, October 2004
• Short-haul versus long-haul holidays
• Figure 95: Short-haul vs long-haul holidays taken in the past 12 months, by gender, age and socio-economic group, October 2004
• Figure 96: Short-haul versus long-haul holidays taken in the past 12 months, by region and ACORN categories, October 2004
• Figure 97: Short-haul vs long-haul holidays taken in the past 12 months, by detailed lifestage groups, October 2004
• Figure 98: Short-haul vs long-haul holidays taken in the past 12 months, by media usage, supermarket usage and commercial TV viewing, October 2004

Holiday destinations visited

• Figure 99: Main holiday destinations visited in the past five years, October 2004
• Figure 100: Main holiday destinations visited in the past five years, by gender, age and socio-economic group, October 2004
• Figure 101: Main holiday destinations visited in the past five years, by region and ACORN categories, October 2004
• Figure 102: Main holiday destinations visited in the past five years, by detailed lifestage groups, October 2004
• Figure 103: Main holiday destinations visited in the past five years, by media usage, supermarket usage and commercial TV viewing, October 2004
• Countries visited by type of holiday taken
• Figure 104: Type of holiday taken in the last 12 months, by destinations visited in the past five years, October 2004

Consumer Behaviour and Targeting Opportunities

Essential factors for an enjoyable holiday

• Figure 105: Type of holidays taken in the past 12 months, October 2004

Holiday destinations desired to visit

• Figure 106: Holiday destinations desired to visit in the future, October 2004

Holiday target groups

• Culture Driven (24% of sample or 11.7 million adults)
• The Choosy (14% of sample or 6.8 million adults)
• Weather Driven (29% of sample or 14.2 million adults)
• The Laid-Back (33% of sample or 16.1 million adults)
• Figure 107: Holiday target groups, by gender, age and socio-economic group, October 2004
• Figure 108: Holiday target groups, by region and ACORN categories, October 2004
• Figure 109: Holiday target groups, by detailed lifestage groups, October 2004
• Figure 110: Holiday target groups, by media usage, supermarket usage and commercial TV viewing, October 2004
• Holiday target groups by the type of holiday taken
• Figure 111: Holiday target groups, by type of holiday taken, October 2004
• Holiday target group by destinations would like to visit
• Figure 112: Holiday target groups, by destinations would like to visit, October 2004
• Number of countries visited by the countries would like to visit in the future
• Figure 113: The number of countries visited over the last five years, by what countries they would like to visit in the future, October 2004

Optimum targeting

• Optimum targeting by type of holiday
• Figure 114: Optimum targeting, by type of holiday, October 2004
• Optimum targeting by destinations 128
• Figure 115: Optimum targeting, by destinations, October 2004

Consumer behaviour and targeting opportunities - Detailed demographics

• Essential factors for an enjoyable holiday
• Figure 116: Top essential factors for an enjoyable holiday, by gender, age and socio-economic group, October 2004
• Figure 117: Top essential factors for an enjoyable holiday, by region and ACORN categories, October 2004
• Figure 118: Top essential factors for an enjoyable holiday, by detailed lifestage groups, October 2004
• Figure 119: Top essential factors for an enjoyable holiday, by media usage, supermarket usage and commercial TV viewing, October 2004
• Figure 120: Next most essential factors for an enjoyable holiday, by gender, age and socio-economic group, October 2004
• Figure 121: Next most essential factors for an enjoyable holiday, by region and ACORN categories, October 2004
• Figure 122: Next most essential factors for an enjoyable holiday, by detailed lifestage groups, October 2004
• Figure 123: Next most essential factors for an enjoyable holiday, by media usage, supermarket usage and commercial TV viewing, October 2004

The Future

• Independent market growth set to continue
• Package market making recovery
• Long-haul returning to growth
• Multiple short breaks continue to rise
• It may rain in Spain but Brits still want the sun
• Holiday target group by destinations visited
• Figure 124: Holiday target groups, by destinations would like to visit, October 2004
• Destinations desired to visit in the future - Detailed demographics
• Figure 125: Top destinations desired to visit in the future, by gender, age and socio-economic group, October 2004
• Figure 126: Top destinations desired to visit in the future, by region and ACORN categories, October 2004
• Figure 127: Top destinations desired to visit in the future, by detailed lifestage groups, October 2004
• Figure 128: Top destinations desired to visit in the future, by media usage, supermarket usage and commercial TV viewing, October 2004
• Figure 129: Next most desired destinations to visit in the future, by gender, age and socio-economic group, October 2004
• Figure 130: Next most desired destinations to visit in the future, by region and ACORN categories, October 2004
• Figure 131: Next most desired destinations to visit in the future, by detailed lifestage groups, October 2004
• Figure 132: Next most desired destinations to visit in the future, by media usage, supermarket usage and commercial TV viewing, October 2004

Forecast

• Domestic and overseas holidays
• Figure 133: Forecast of expenditure on domestic and overseas holidays, 2004-09
• Overseas holidays continue to surge ahead of domestic holidays
• Figure 134: Forecast of the number of oevrseas and domestic holidays taken, 2004-09
• The future looks positive

Holiday target groups

• Scenario 1
• Figure 135: Forecast of the holiday target groups, Scenario 1, 2004-09
• Scenario 2
• Figure 136: Forecast of the holiday target groups, Scenario 2, 2004-09
• Scenario 3
• Figure 137: Forecast of the holiday target groups, Scenario 3, 2004-09
• Factors used in the forecast