Increased frequency of holidays
As people become more affluent they are able to take more frequent holidays. This had led to the popularity of the short break, often to a city. The traditional pattern of holiday taking is a two week summer break, often in a Mediterranean resort. Affluent families often add a winter ski break. According to a 2008 Mintel report, an estimate 7 million UK resident adults take two or more European holidays and an estimated 1.7 million take two or more long haul trips annually.
The trend had turned in 2009 with UK residents making fewer outbound trips. According to the International Passenger Survey, trips abroad fell by 17 per cent, which has meant a decline in visitor numbers. The effect of a decline in visitor numbers has included jobs in destinations being reduced and tour operators cutting capacity. Airlines have also cut capacity, which means they are operating fewer flights.
As people become more affluent they are able to take more frequent holidays. This had led to the popularity of the short break, often to a city. The traditional pattern of holiday taking is a two week summer break, often in a Mediterranean resort. Affluent families often add a winter ski break. According to a 2008 Mintel report, an estimate 7 million UK resident adults take two or more European holidays and an estimated 1.7 million take two or more long haul trips annually.
The trend had turned in 2009 with UK residents making fewer outbound trips. According to the International Passenger Survey, trips abroad fell by 17 per cent, which has meant a decline in visitor numbers. The effect of a decline in visitor numbers has included jobs in destinations being reduced and tour operators cutting capacity. Airlines have also cut capacity, which means they are operating fewer flights.
Holiday home ownership
There has been an upward trend in the UK residents owning second homes, according to figures from Office of National Statistics. Although some can be explained by higher divorce rates and people having second homes for work, it is acknowledged that about 50 per cent are holiday homes.
About 235,000 homes are owned abroad by British Citizens. Growth in these numbers can be attributed to be rapid growth of low cost airlines, which allow cheaper access to holiday homes. Another factor is people from immigrant backgrounds, from countries such as India, Pakistan, South Africa and the Caribbean, wishing to own holiday properties back in their countries of origin.
Kent is predicted as an area of growth for second home ownership. Many second homeowners abroad have their home in Spain. There are many examples of people commuting from Spain during the week to work in the UK. More recently, some of the developments of new holiday homes have been halted in order to allow a reduction in the number of people buying holiday homes abroad during the recession. In some places such as Dubai, buildings have been left half finished until funding to continue the work can be found.
There has been an upward trend in the UK residents owning second homes, according to figures from Office of National Statistics. Although some can be explained by higher divorce rates and people having second homes for work, it is acknowledged that about 50 per cent are holiday homes.
About 235,000 homes are owned abroad by British Citizens. Growth in these numbers can be attributed to be rapid growth of low cost airlines, which allow cheaper access to holiday homes. Another factor is people from immigrant backgrounds, from countries such as India, Pakistan, South Africa and the Caribbean, wishing to own holiday properties back in their countries of origin.
Kent is predicted as an area of growth for second home ownership. Many second homeowners abroad have their home in Spain. There are many examples of people commuting from Spain during the week to work in the UK. More recently, some of the developments of new holiday homes have been halted in order to allow a reduction in the number of people buying holiday homes abroad during the recession. In some places such as Dubai, buildings have been left half finished until funding to continue the work can be found.
Greater flexibility of booking
As people become more confident about travel and more used to travelling abroad and seeing different cultures, they are able to book the component parts of their holiday themselves rather than go to a travel agent. This is most likely to happen for more frequent lower priced trips. When people are spending a lot of money, for example on a wedding or cruise, they are more likely to seek expert advice from a travel agent.
Many people now have access to the internet at home and are able to carry out research into travel and booking online websites, like Expedia, have profited from internet growth by providing the ability to make up holiday packages, selecting flights and accommodation as desired.
The effect of more people booking independently is that there is less demand for travel agency services. Web-based companies are able to compete more easily with large tour operators.
As people become more confident about travel and more used to travelling abroad and seeing different cultures, they are able to book the component parts of their holiday themselves rather than go to a travel agent. This is most likely to happen for more frequent lower priced trips. When people are spending a lot of money, for example on a wedding or cruise, they are more likely to seek expert advice from a travel agent.
Many people now have access to the internet at home and are able to carry out research into travel and booking online websites, like Expedia, have profited from internet growth by providing the ability to make up holiday packages, selecting flights and accommodation as desired.
The effect of more people booking independently is that there is less demand for travel agency services. Web-based companies are able to compete more easily with large tour operators.
More independent travellers
Mintel reports a continuing rise in the number of independently booked holidays. This is almost entirely due to the internet. It is not only young travellers who go independently, but also more upmarket customers who plan their own luxury trips and want value for money. However, it is not expected that the package holiday market will decline completely as it offers convenience and in some instances cheaper packages.
Mintel reports a continuing rise in the number of independently booked holidays. This is almost entirely due to the internet. It is not only young travellers who go independently, but also more upmarket customers who plan their own luxury trips and want value for money. However, it is not expected that the package holiday market will decline completely as it offers convenience and in some instances cheaper packages.
Opportunity for adventure
Surveys have shown that some adventure holidays include activities such as bird watching and cultural activties. Others perceive adventure holidays to include extreme sports and risk-taking. The effect of this is that it is clear that organisations offering adventure travel report increased interest and increased bookings. Tour operators are aware of the trend and have created, or acquired, activity or adventure holiday businesses. The travel and group Holidaybreak is a good example, with many adventure holiday companies such as Explore and Regaldive.
Surveys have shown that some adventure holidays include activities such as bird watching and cultural activties. Others perceive adventure holidays to include extreme sports and risk-taking. The effect of this is that it is clear that organisations offering adventure travel report increased interest and increased bookings. Tour operators are aware of the trend and have created, or acquired, activity or adventure holiday businesses. The travel and group Holidaybreak is a good example, with many adventure holiday companies such as Explore and Regaldive.
Short term trends
Some trends are short term, but have a serious impact on the sector.
Decline in incoming and outgoing passenger numbers
A decline in passenger numbers can be linked to a recession. The suggestion is that rather than targeting customers according to age or lifestyle, the trade should look at customers reaction to recession. Four groups were described:
The trend is entirely due to poor exchange rate. In 2009 the pound was weak against the euro, this was a significant drop from the previous few years so UK holidaymakers found Europe very expensive. The effect of this is that when people holiday under these circcumstances they change their behaviour on holiday, spending less freely and in their accommodation rather than in restaurants. This means less revenue for businesses in the destination and leads to lower investment in improving or maintaining facilities.
Growth and expansion of regional airports
This has been a popular trend with passengers who like the convenience of travelling from nearby airport. The trend is possible because it is government policy it is government policy to expand regional airports laid out in their Aviation White Paper. However, airport expansion is also controversial due to environmental considerations, so a change of government might see a change to this policy. Low-cost airlines often use regional airports as they are cheaper, which means that the growth of low-cost airlines has contributed to the growth of these airports. London City Airport increased capacity in 2009 from 80,000 to 120,000 flights per year.
Withdrawal of some destinations by low-cost airlines
The 2008-2010 recession has had a huge impact on aviation. Many airlines made a loss in 2009 and cut staff. Low-cost airlines consolidated their routes and withdrew some unprofitable routes. Low-cost airlines continually review their routes at all times as their business model depends on having high loads. They need to look at the popularity of destinations and target routes accordingly. The effect of recession is that some of the many routes to Eastern Europe may be axed. However, new routes can also be added. Recent additions have been further afield to Egypt and to the Canary Islands.
Some trends are short term, but have a serious impact on the sector.
Decline in incoming and outgoing passenger numbers
A decline in passenger numbers can be linked to a recession. The suggestion is that rather than targeting customers according to age or lifestyle, the trade should look at customers reaction to recession. Four groups were described:
- People at the lower end of earning, who stop spending as they badly hit ny the recession
- People that can be persuaded to go on holiday as long as they think they are getting value for money
- This is mainly young and urban people, who see little need to alter their spending habits
- This is people in the top 5 per cent income bracket and not really affected by the recession, but may want to be more discreet in their spending
The trend is entirely due to poor exchange rate. In 2009 the pound was weak against the euro, this was a significant drop from the previous few years so UK holidaymakers found Europe very expensive. The effect of this is that when people holiday under these circcumstances they change their behaviour on holiday, spending less freely and in their accommodation rather than in restaurants. This means less revenue for businesses in the destination and leads to lower investment in improving or maintaining facilities.
Growth and expansion of regional airports
This has been a popular trend with passengers who like the convenience of travelling from nearby airport. The trend is possible because it is government policy it is government policy to expand regional airports laid out in their Aviation White Paper. However, airport expansion is also controversial due to environmental considerations, so a change of government might see a change to this policy. Low-cost airlines often use regional airports as they are cheaper, which means that the growth of low-cost airlines has contributed to the growth of these airports. London City Airport increased capacity in 2009 from 80,000 to 120,000 flights per year.
Withdrawal of some destinations by low-cost airlines
The 2008-2010 recession has had a huge impact on aviation. Many airlines made a loss in 2009 and cut staff. Low-cost airlines consolidated their routes and withdrew some unprofitable routes. Low-cost airlines continually review their routes at all times as their business model depends on having high loads. They need to look at the popularity of destinations and target routes accordingly. The effect of recession is that some of the many routes to Eastern Europe may be axed. However, new routes can also be added. Recent additions have been further afield to Egypt and to the Canary Islands.