Fly-Drive Holidays - UK - March 2005

Contents

Introduction and Abbreviations

• Definitions
• Consumer research
• ACORN

Abbreviations

Summary of Key Report Findings

• Increased road usage in the UK
• Population growth leads to an increase in the number of drivers
• Declining leisure car hire market
• Long-haul return to growth and dominance of independent sector
• Some 896,000 fly-drive holidays taken in 2004...
• ...and 13 million potential fly-drivers in the UK
• Positive attitudes towards fly-drive
• The future

Market Factors

• Congestion
• Gender split of driving licence holders
• Figure 1: Full car driving licence holders, by gender, 1975/76-2002/03
• Car hire
• Figure 2: Total UK car and van hire market, 1998-2003
• Figure 3: Car hire market penetration, by use, UK, 1999-2004
• Rising fuel prices
• Figure 4: Crude oil prices, 1999-2004
• The overseas holiday market
• Figure 5: Overseas holidays and expenditure, at current and constant values, 1999-2004
• Inclusive versus independent
• Figure 6: Inclusive versus independent holidays by volume, 1999-2005
• Long-haul return to growth
• Figure 7: Long-haul holidays and expenditure, at current and constant values, 1999-2004
• Exchange rates
• Figure 8: Annual average exchange rates for Sterling against the euro and US Dollar, 1999-2004
• Consumer confidence
• Population changes: age
• Figure 9: Adult population, by age, 1999-2009
• Population changes: socio-economic group
• Figure 10: Adult population, by socio-economic group, 1999-2009

Market Size and Trends

• Figure 11: Fly-drive holidays and expenditure, 1999-2005

Market Segmentation

• Top holiday destinations
• Figure 12: Leading holiday destinations for UK holidaymakers, 2001-03
• Europe
• North America
• Australia
• South Africa

The Supply Structure

• Figure 13: Examples of operators fly-drive products and car premiums, 2005
• Weak Web information
• TUI UK
• MyTravel
• First Choice
• Thomas Cook
• Cosmos
• Virgin Holidays
• Examples of other fly-drive operators

The Consumer

Fly-drive holidays taken

• Figure 14: Fly-drive holidays taken, October 2004
• Figure 15: Fly-drive holidays taken, by gender, age and socio-economic group, October 2004
• Figure 16: Fly-drive holidays taken, by region and ACORN category, October 2004
• Figure 17: Fly-drive holidays taken, by detailed lifestage group, October 2004
• Figure 18: Fly-drive holidays taken, by media usage, supermarket usage and commercial TV viewing, October 2004

Desired fly-drive holiday destinations

• Figure 19: Desired fly-drive holiday destinations, by gender, age and socio-economic group, October 2004
• Figure 20: Desired fly-drive holiday destinations, by region and ACORN category, October 2004
• Figure 21: Desired fly-drive holiday destinations, by detailed lifestage groups, October 2004
• Figure 22: Desired fly-drive holiday destinations, by media usage, supermarket usage and commercial TV viewing, October 2004
• Fly-drive holidaymakers by future destinations
• Figure 23: Fly-drive holidaymakers and types of fly-drive holidays desired to take in the future, October 2004

The Future

• Strong consumer potential
• Long-haul favourites will continue to dominate
• Short-haul opportunities
• Flexibility and independence
• More adventurous holidaymakers

Forecast

• Figure 24: Forecast of expenditure on fly-drive holidays, 2005-09
• Figure 25: Forecast of the number of fly-drive holidays taken and average expenditure, 2005-09

Appendix: Research Methodology