Consumer confidence boosts travel sector
A new industry report has revealed the travel trends likely to impact the UK travel market throughout the course of this year, including identifying some up and coming destinations that insurers should be aware of
UK travel association ABTA recently released its Travel Trends 2015 Report, developed in association with the UK Foreign & Commonwealth Office (FCO), which reveals that consumer confidence is slowly returning to the holiday market, with more consumers planning to spend more on their holidays in 2015 than those looking to cut back (20 per cent state they will spend more on holidays and only 15 per cent say they are planning to spend less). This growth is being led by more affluent holidaymakers, with ‘value for money’ and a ‘desire to maximise holiday experiences’ dominating the rest of the market.
Key trends identified in ABTA’s Travel Trends Report 2015 include that affluent travellers appear to be leaving cautious optimism behind. The report elaborates: “Affluent consumers are breaking away from the cautious optimism that has dominated the market for the last couple of years. Whilst this group remains relatively small, it looks set to drive some growth in the travel industry in 2015. In 2014, people took an average of 3.0 holidays per person; however, those in social class ‘A’ (affluent travellers) took 4.7 holidays per person. This is a marked increase from 2013 when this group took 3.6 holidays per person, and is likely to continue into 2015.”
Elsewhere, ABTA states that in seeking value for money, holidaymakers are maximising their expenditure and leisure time combining elements such as events, shows or experiences with their holiday, as well as taking multi-centre holidays, challenge holidays and activity holidays. The continued growth of the package holiday is also a key part of this. Furthermore, British holidaymakers have been playing it safe for the last few years with their holiday choices, but many people are planning to explore new destinations in 2015; over a third (35 per cent) think they will take a holiday to a country they have never been to before.
Living like a local was identified as being a key trend across all age groups included in the report, as people are looking for more authentic holiday experiences, and many holiday companies are now offering people the chance to enjoy hidden gems alongside traditional tourist attractions. The destination celebration has also become a real player in the travel market, according to ABTA, with the desire to commemorate, celebrate and share experiences – such as anniversaries, stag and hen trips and overseas weddings – expected to drive an increased number of group holidays in 2015.
City breaks overtook beach holidays as the most popular type of holiday in 2014, and are expected to hold the top spot into 2015, with 43 per cent of people planning a city break and 42 per cent planning a beach holiday.
ABTA has also identified its ‘Destinations to watch’ for 2015, a mixture of long and short-haul destinations that are expected to capture the public’s imagination in 2015. The destinations are (in alphabetical order): Austria, Botswana, Cuba, Dominican Republic, Japan, Latvia, La Gomera (Canary Islands, Spain), Norway, Pacific Coast (US), Singapore, the Netherlands, and the Peloponnese (Greece).
Mark Tanzer, ABTA chief executive, commented on the report’s findings: “We do expect to see the slow but steady signs of recovery that have been characteristic of 2014 continue into next year. We are seeing strong growth from the most affluent end of the market and we expect this to drive interest in luxury and tailor-made packages. The rest of the market remains resilient with value for money continuing to be a priority. Holidaymakers want their holiday to work hard for them, whether that’s by offering new experiences, combining different destinations or simply delivering great value.”
In the report, country-specific travel advice has been provided by the Foreign & Commonwealth Office to ensure Brits travelling abroad next year remain safe. Michael Vibert, head of consular communications at the Foreign and Commonwealth Office, said: “This year’s ABTA report notes that British nationals will be doing more to make the most of their holidays abroad in the next twelve months. With many travellers set to visit unfamiliar destinations and fit in as many activities as possible, it’s more important than ever to plan and prepare fully.”