Holiday Planning and Booking Process - UK - May 2017


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Mintel

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Partly as a reaction to the post-referendum devaluation of the Pound, there will be a greater demand for apps and websites that help consumers book cheaper holidays and save money. In addition, bookings on smartphones continue to increase as brands develop more mobile friendly websites and payment systems.

Table of Content

OVERVIEW
What you need to know
Scope of the Report

EXECUTIVE SUMMARY
The market
The number of domestic trips stagnated in 2016
Figure 1: Estimated domestic holiday market volume and value*, 2011-21
Strong growth in overseas trips in 2016
Figure 2: Overseas holiday market volume and value*, 2011-21
The consumer
Consumers to spend more time looking for deals
Figure 3: Holiday behaviour following the Brexit vote, March 2017
Older consumers prefer human contact but this will change over time
Figure 4: Preferred channel for contacting a travel company, March 2017
Which is booked first; accommodation or travel?
Figure 5: When holiday components were booked, by holiday type, March 2017
Over a half book 1-4 months before departure
Figure 6: How long booking was made before departure, March 2017
Mobile use continues to trend upwards
Figure 7: Device used to book holiday, March 2017
Sharp spike in the usage of online travel aggregators
Figure 8: Websites/apps used to book holiday, March 2017
Google leverages its position as the dominant search engine to serve travellers
Figure 9: Websites/apps used to book holiday, March 2017
What we think

ISSUES AND INSIGHTS
Mobile usage continues to increase
The facts
The implications
Google and Facebook release features to draw in holidaymakers
The facts
The implications

THE MARKET – WHAT YOU NEED TO KNOW
Domestic trips fall slightly in 2016
Strong growth in overseas trips in 2016
Consumers still plan to book holidays as confidence remains high
Inflation reduces consumers’ disposable income
Bank of England expects inflation to hit 3% in 2017
Passenger protections in light of Brexit

MARKET OUTLOOK
Domestic trips fall slightly in 2016
Figure 10: Estimated domestic holiday market volume and value*, 2011-21
Strong growth in overseas trips in 2016
Figure 11: Overseas holiday market volume and value*, 2011-21
Forecast methodology

MARKET DRIVERS
Consumers still plan to book holidays as confidence remains high
Figure 12: Consumer plans to book a holiday within the next three months, April 2013-17
Figure 13: Consumers confidence levels for the coming 12 months, April 2009-17
Inflation reduces consumers’ disposable income
Oil is relatively cheap but the Pound remains low
Figure 14: Spot exchange rate for Pound against the Euro and US Dollar, April 2016 to April 2017
Figure 15: Weekly Cushing, OK WTI Spot Price FOB (Dollars per Barrel)
Brexit and the travel market
How will Brexit affect the new Package Travel Directive?
The falling Pound means travel companies can impose surcharges
Denied Boarding Regulation could be called into question
Passenger protections in light of Brexit

MARKET SHARE
TUI and Jet2holidays see double-digit in the year to January 2017
Figure 16: Passengers licensed under ATOL protection, by top 10 ATOL holders, 2011-17

LAUNCH ACTIVITY AND INNOVATION
Google launches its travel planning app Trips
Figure 17: Google Trip features, May 2017
New exploratory Google Earth unveiled to inspire travellers
Figure 18: Google Earth as seen in the Google Chrome web browser, May 2017
Figure 19: Options available in Google Earth’s Voyager menu, May 2017
Figure 20: Landmarks shown with yellow pins in lower Manhattan, May 2017
Travel app Lola raises $15 million from investors
Creating Google Street View imagery with new 360-degree cameras
Figure 21: Google’s street view ready tools, May 2017
Startup BoltFare aims to challenge Skyscanner and Kayak
Figure 22: BoltFare operating via Facebook Messenger, May 2017

THE CONSUMER – WHAT YOU NEED TO KNOW
More effort to get deals and discounts
Older consumers prefer human contact but this will change over time
More customisation and diversification needed in all-inclusive packages
Over half book 1-4 months before departure
Mobile use continues to trend upwards

HOLIDAYS TAKEN AND BREXIT ATTITUDES
Holidaymaker profile; half the population have been overseas
Figure 23: Types of holidays taken in the last 12 months, March 2017
More effort to get deals and discounts
A boost for staycations? A third will holiday in the UK instead of abroad
All-inclusive packages could increase but face challenges in Spain
Figure 24: Holiday behaviour following the Brexit vote, March 2017

COMMUNICATION WITH THE CUSTOMER
Email is the preferred contact method for consumers
Figure 25: Preferred channel for contacting a travel company, March 2017
Older consumers prefer human contact but this will change over time
Figure 26: Preferred channel for contacting a travel company, March 2017
Figure 27: Personal ownership of consumer technology products, by age, April 2015 versus December 2016
Usage of live chat services still low but potential for growth
Figure 28: Facebook Messenger’s GUI interface for seat selection
Potential problems for Messenger lead to a revamp

WHEN HOLIDAY COMPONENTS WERE BOOKED
More customisation and diversification needed in all-inclusive packages
Figure 29: When holiday components were booked, March 2017
Which is booked first; accommodation or travel?
Figure 30: When holiday components were booked, by holiday type, March 2017

BOOKING LEAD TIME
Over half book 1-4 months before departure
Figure 31: How long booking was made before departure, March 2017
Figure 32: How long booking was made before departure, domestic versus overseas, March 2017
A market for spontaneous bookings
Figure 33: How long booking was made before departure, by last holiday taken, March 2017

HOLIDAY BOOKING CHANNELS
Mobile use continues to trend upwards
Figure 34: Holiday booking channels, March 2017
Mobile popular for short-breaks while travel agents popular for long holidays
Figure 35: Holiday booking channels, by holiday length, March 2017
Figure 36: Holiday booking channels, by booking lead time, March 2017
The rise of mobile – tech-giants adapting tools for travel
Figure 37: Holiday booking channels, by last holiday taken, March 2017

ONLINE BOOKINGS AND RESEARCH
Sharp spike in the usage of online travel aggregators
Figure 38: Websites/apps used to book holiday, March 2017
Who is using online travel agents/aggregators?
Figure 39: Websites/apps used to book holiday, March 2017
Figure 40: Proportion of consumers describing their financial situation as healthy, by age, March 2017

ONLINE RESEARCH SOURCES
Customer review sites are popular in the research process
Google leverages its position as the dominant search engine to serve travellers
Figure 41: Websites/apps used to book holiday, March 2017
Facebooks aims to challenge Google in the travel space
Concerns about Google’s Dominance in travel distribution
New Dynamic Ads for Travel could boost social media engagement

APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Consumer research methodology

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