Short-haul Airlines - UK - July 2009

Table of Contents

• Issues in the Market
• Key issues:
• Definitions
• Abbreviations
• Future Opportunities
• Bargain hunting
• Smart Shopping Gets Smarter
• Value vs perceived value
• Flight-only
• Simplicity and Convenience
• Get on board
• Market in Brief
• Past, present and future
• The wider picture
• Flying and paying
• Competition on track
• Footfall and class
• The price battleground drives innovation
• Internal Market Environment
• Key points
• Holidays fall
  • Figure 1: Domestic and overseas holiday volumes, 2004-09
• The charges against charges
• Where to?
  • Figure 2: Overseas journeys (all visits), by region, 2004-08
  • Figure 3: Overseas holidays, by region, 2004-08
  • Figure 4: Top 15 destinations 2008, by estimated number of visits, 2004-08
• Low-cost vs full-service
• Flying high, feeling low
• Broader Market Environment
• Key points
• Cautious confidence
  • Figure 5: GfK NOP Consumer Confidence Index, May 2008-May 2009
  • Figure 6: Trends in personal disposable income and consumer expenditure, 2004-14
• Future fliers
  • Figure 7: Forecast adult population trends, by socio-economic group, 2004-14
  • Figure 8: Forecast adult population trends, by lifestage, 2004-14
• Age of flight
  • Figure 9: Trends in the age structure of the UK population, by gender, 2004-14
• Online on board
  • Figure 10: British internet penetration at home/work/place of study or elsewhere, by gender, socio-economic group, age, region and working status, 2004-09
• Holding on to holidays
  • Figure 11: Expenditure priorities for the year ahead, January 2009
• Exchange rates
  • Figure 12: Sterling exchange rates at the beginning of each year, 2005-09
• Back to black gold
  • Figure 13: Crude oil prices, 2004-09
• Competitive Context
• Key points
• How we go
  • Figure 14: All short-haul visits by air and sea/tunnel -- volume 2004-09
  • Figure 15: All short-haul holidays by air and sea/tunnel -- volume 2004-09
• The why of the way
• Strengths and Weaknesses
• Strengths
• Weaknesses
• Who' s Innovating?
• Key points
• Technology
• Phones
• Internet booking
• Check in
• Revenue streams
• Promotions
• Operations
• Environmental
• Market Size and Forecast
• Key points
  • Figure 16: Passengers uplifted -- all (international) vs short-haul, 2004-14
• Past
• Present
• Future
• Factors used in the forecast
• Segment Performance
• Key points
• Holidays hit
  • Figure 17: Main method of travel for last/last but one holiday using short-haul air, 2004-08
  • Figure 18: All short-haul passengers uplifted by UK airlines, non-scheduled vs scheduled, 2004-09
• Fly away (from) home
  • Figure 19: Passenger movement (scheduled and non-scheduled) at UK airports, 2004-08
  • Figure 20: Airports used for short-haul flights in the last 12 months, 2004-08
• What matters
  • Figure 21: Most important factor when choosing which airline to fly with on holiday, 2004-08
• The business of economy
• Market Share
• Key points
• British Airways bowed
  • Figure 22: Passengers uplifted to EEA by selected airlines, 2004-08
  • Figure 23: Number of active aircraft, 2008
• Companies and Products
• Key points
• British Airways
• bmibaby
• easyJet
• Flybe
• Jet2.com
• Monarch
• Ryanair
• Thomas Cook Airlines
• Thomson Airways
• Distribution
• Key points
• Click and go
  • Figure 34: Method used to book last holiday overseas by those who flew short-haul, 2004-08
• Website woes
• What do Holidaymakers Look For?
• Key points
• Sit back as the sun shines
  • Figure 35: Factors looked for in a holiday, April 2009
• Atmosphere/engagement-agers
• Oversea seekers
• Who Flies Short-haul?
• Key points
  • Figure 36: Flights taken in the past three years, April 2009
• Short-haul, long appeal
• Charting success
• Never say never
• Attitudes Towards Short-haul Airlines
• Key points
  • Figure 37: Attitudes towards short-haul airlines, April 2009
• Low (cost) expectations
• Time to go
• Help the ageing
• Targeting Opportunities
• Key points
• Target groups
  • Figure 38: Short-haul airlines target groups, April 2009
• Full-service Fans (19% of adults aged 15+ or 9.7 million adults)
• Demographic profile
• Marketing message
• Pragmatists (19% of adults aged 15+ or 9.7 million adults)
• Demographic profile
• Marketing message
• Low-cost Lovers (29% of adults aged 15+ or 14.8 million adults)
• Demographic profile
• Marketing message
• Short-shrifters (33% of adults aged 15+ or 16.9 million adults)
• Demographic profile
• Marketing message
• Schedule a break
  • Figure 39: Overseas flights taken in the past three years, by target groups, April 2009
• Factorisation
  • Figure 40: Factors looked for in a holiday, by target groups, April 2009
• Appendix -- What do Holidaymakers Look For?
  • Figure 41: Most popular factors looked for in a holiday, by demographics, April 2009
  • Figure 42: Next most popular factors looked for in a holiday, by demographics, April 2009
  • Figure 43: Other factors looked for in a holiday, by demographics, April 2009
• Appendix -- Who Flies Short-Haul?
  • Figure 44: Most popular flights taken in the past three years, by demographics, April 2009
  • Figure 45: Next most popular flights taken in the past three years, by demographics, April 2009
• Appendix -- Attitudes Toward Short-Haul Airlines
  • Figure 46: Most popular attitudes towards short-haul airlines, by demographics, April 2009
  • Figure 47: Next most popular attitudes towards short-haul airlines, by demographics, April 2009
• Appendix -- Targeting Opportunities
  • Figure 48: Target groups, by demographics