Ferry and Tunnel Crossings - UK - February 2008

Table of Contents

• Issues in the Market
• Main issues
• Definitions
• Abbreviations
• Market In Brief
• Calmer waters
• Staying in the comfort zone
• The sardines are revolting
• Ferries buck package trends
• Losing the booze cruise
• Rail revival
• French affair back on?
• Chasing volume, but not at any price
• Nicotine and Formica
• Internal Market Environment
• Key points
• Overseas growth dips
  • Figure 1: Domestic and overseas holidays and expenditure, 2002-07
• Regional redistribution
  • Figure 2: Passenger movements (scheduled and chartered) at UK airports, 2002-06
• No-frills slowdown
• Heavy baggage
  • Figure 3: Comparison of economy class baggage allowances/charges on selected airlines and Eurostar, January 2008
• Green rail...
• ...and green water?
• The travel guilty
• Paying for pollution
• Taxing questions
• Adding fuel to the fire
  • Figure 4: Crude oil prices, 2002-07
• High-speed Europe
• Rail ups the ante
  • Figure 5: High-speed rail improvements, 2007/08
• Broader Market Environment
• Key points
• Going from bad to worse
  • Figure 6: GfK NOP Consumer Confidence Index, January-December 2007
  • Figure 7: Trends in personal disposable income and consumer expenditure, 2002-12
• Holidays discretionary, but still a priority
  • Figure 8: UK spending priorities for year ahead, 2005-08
• Reading the demographic runes
  • Figure 9: Trends in the age structure of the UK population, by gender, 2002-12
• Population trends support premiumisation
  • Figure 10: Forecast adult population trends, by socio-economic group, 2002-12
• Mature potential
  • Figure 11: Forecast adult population trends, by lifestage, 2002-12
• Online distribution
  • Figure 12: Internet penetration at home/work/place of study or elsewhere, by gender, socio-economic group and age, 2002-07
• Plummeting Pound
  • Figure 13: Annual average exchange rates for Sterling, 2002-07
• Competitive Context
• Key points
• Air versus sea versus tunnel
  • Figure 14: Total overseas trips, by mode, 2002-07
  • Figure 15: Air travel growth rates, overall and holiday travel, 2002-07
• Growing weakness
• Belgian boost
  • Figure 16: Changes in travel market share, by mode, 2002-06
• Cost: tunnel versus air
  • Figure 17: Sample price comparison air vs tunnel, travelling in March 2008
• Cost: ferry versus air
• Strengths and Weaknesses in the Market
• Strengths
• Weaknesses
• Market Size and Forecast
• Key points
  • Figure 18: Volume of total overseas trips by UK residents, by sea and tunnel, 2002-12
• Past and present: return of hope
• Reasons for growth: price-driven demand or airport hassles?
• Future: modest upward growth
  • Figure 19: Forecast of Segmentation up to 2012, Sea crossings
  • Figure 20: Forecast of Segmentation up to 2012, Tunnel crossings
• Factors used in the forecast
• Segment Performance
• Key points
• Sea crossings
  • Figure 21: Volume of trips abroad by UK residents via sea crossing, by purpose, 2002-06
• Tunnel
  • Figure 22: Volume of visits abroad by UK residents via tunnel crossing, by purpose, 2002-06
• Miscellaneous: declining day trip
  • Figure 23: Volume of visits by UK residents by sea and tunnel, by country visited, 2002-06
• The fall of France...
• ...may have plateaued?
• Brussels sprouts
• A place in the sun
  • Figure 24: Volume of visits by UK residents, by UK sea/Channel Tunnel port, 2002-06
• Short change
• Companies and Products
• Key points
  • Figure 25: UK-overseas sea and tunnel crossing routes and operators, January 2008
• Ferry operators
• Brittany Ferries
• DFDS Seaways
• P&O Ferries
• SeaFrance
• SpeedFerries
• Stena Line
• Tunnel operators
• Eurostar
• Eurotunnel/Shuttle
• Who Travels Across the Channel?
• Key points
• Niche markets
  • Figure 26: Cross-Channel leisure travel in the past three years, October 2007
• Multiple crossings
  • Figure 27: Main methods of travel used for last holiday abroad, 2003-07
• Cross-Channel experience by demographics
• Broadly based ferry appeal...
• ...with AB spike...
• ...and West Country/Wales peak
• Petrol heads
• Baby on board
• Ferry passengers like to surf
• AB rail spike
• ABC1 third agers prefer Shuttle to Eurostar
• Important Factors when Choosing Cross-Channel Transport
• Key points
• The soft cushions and the comfy chair
• Bags of opportunity
• Security checks no deal breaker
  • Figure 28: Important factors when choosing cross-Channel transport, 2007
• Important factors by demographics
• From Asda to Waitrose comfort is king
• Young Urban Professionals happy to rough it
• Time-squeezed families
• Slow boat to Bergen/Bilbao
• Pre-retirees prefer close departure points
• That' s entertainment
• Appendix -- Who Travels Across the Channel
  • Figure 32: Cross-Channel leisure travel in the past three years, by gender. age, socio-economic group, marital status, lifestage, presence of children, Mintel' s Special Groups, working status, household income, tenure, region, ACORN category, media usage, supermarket usage, household size, car ownership, detailed lifestage groups, age/socio-economic group and terminal education age, October 2007
• Appendix -- Important Factors when Choosing Cross-Channel Transport
  • Figure 33: Most important factors when choosing cross-Channel transport, by gender. age, socio-economic group, marital status, lifestage, presence of children, Mintel' s Special Groups, working status, household income, tenure, region, ACORN category, media usage, supermarket usage, household size, car ownership, detailed lifestage groups, age/socio-economic group and terminal education age, October 2007
  • Figure 34: Other important factors when choosing cross-Channel transport, by gender. age, socio-economic group, marital status, lifestage, presence of children, Mintel' s Special Groups, working status, household income, tenure, region, ACORN category, media usage, supermarket usage, household size, car ownership, detailed lifestage groups, age/socio-economic group and terminal education age, October 2007
• Appendix -- Attitudes towards Crossing the Channel
  • Figure 35: Most popular attitudes towards crossing the Channel, by gender. age, socio-economic group, marital status, lifestage, presence of children, Mintel' s Special Groups, working status, household income, tenure, region, ACORN category, media usage, supermarket usage, household size, car ownership, detailed lifestage groups, age/socio-economic group and terminal education age, October 2007
  • Figure 36: Further attitudes towards crossing the Channel, by gender. age, socio-economic group, marital status, lifestage, presence of children, Mintel' s Special Groups, working status, household income, tenure, region, ACORN category, media usage, supermarket usage, household size, car ownership, detailed lifestage groups, age/socio-economic group and terminal education age, October 2007
• Appendix -- Cross-Channel Targeting Opportunities
  • Figure 37: Consumer target groups, by gender. age, socio-economic group, marital status, lifestage, presence of children, Mintel' s Special Groups, working status, household income, tenure, region and ACORN category, October 2007
• Target groups by important factors when choosing cross-Channel transport
  • Figure 38: Important factors when choosing cross-Channel transport, by consumer target groups, October 2007
• Target groups by attitudes towards crossing the Channel
  • Figure 39: Attitudes towards crossing the Channel, by consumer target groups, October 2007