Documente Academic
Documente Profesional
Documente Cultură
ISBN 978-1-84729-663-4
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Contents
Executive Summary 1
1. Industry Overview 2
REPORT COVERAGE....................................................................................................................2
Definitions.......................................................................................................................................2
REPORT BACKGROUND.............................................................................................................2
ECOMONIC TRENDS....................................................................................................................3
Population.......................................................................................................................................3
Table 1.1: UK Resident Population Estimates by Sex (000), Mid-Years 2005-2009...........3
Gross Domestic Product................................................................................................................4
Table 1.2: UK Gross Domestic Product at Current and Annual Chain-Linked Prices
(£m), 2005-2009..............................................................................................................................4
Inflation...........................................................................................................................................4
Table 1.3: UK Rate of Inflation (%), 2005-2009.......................................................................5
Unemployment...............................................................................................................................5
Table 1.4: Actual Number of Unemployed Persons in the UK (million), 2005-2009.........5
Household Disposable Income....................................................................................................5
Table 1.5: UK Household Disposable Income Per Capita (£), 2005-2009............................6
MARKET SIZE.................................................................................................................................6
By Value ..........................................................................................................................................6
Table 1.6: The Total UK Travel and Tourism Market by Value (£m), 2005-2009...............6
Figure 1.1: The Total UK Travel and Tourism Market by Value (£m), 2005-2009.............8
By Volume.......................................................................................................................................8
Table 1.7: The Total UK Travel and Tourism Market by Number of Trips (000),
2005-2009........................................................................................................................................9
Figure 1.2: The Total UK Travel and Tourism Market by Number of Trips (000),
2005-2009......................................................................................................................................10
Number of Bed Nights................................................................................................................10
Table 1.8: The Total UK Travel and Tourism Market by Number of Bed Nights
(million), 2005-2009.....................................................................................................................11
Figure 1.3: The Total UK Travel and Tourism Market by Number of Bed Nights
(million), 2005-2009.....................................................................................................................12
MARKET SEGMENTATION......................................................................................................12
Table 1.9: The Total UK Travel and Tourism Market by Sector by Value and Volume
(£m, 000, million and %), 2009.................................................................................................13
Table 1:10: The UK Travel and Tourism Market by Average Expenditure per Trip
and Per Bed Night, and Average Number
of Bed Nights per Trip (£ and number), 2009........................................................................14
UK Tourism....................................................................................................................................14
Table 1.11: The UK Tourism Market by Sector by Value and Volume
(£m, 000, million and %), 2005-2009.......................................................................................15
Internal Tourism...........................................................................................................................16
Table 1.12: The UK Internal Tourism Market by Sector by Value and Volume
(£m, 000, million and %), 2005-2009.......................................................................................16
International Tourism.................................................................................................................18
Table 1.13: The UK International Tourism Market by Sector by Value and Volume
(£m, 000, million and %), 2005-2009.......................................................................................18
INDUSTRY STRUCTURE............................................................................................................20
Concentration...............................................................................................................................20
Table 1.14: Estimated Market Shares of the Three Leading Companies in Selected
Areas of the UK Travel and Tourism Market (%), 2010.......................................................20
Number of UK Businesses...........................................................................................................21
Transport Providers......................................................................................................................21
Table 1.15: Number of UK VAT- and/or PAYE-Based Enterprises Engaged in Urban
and Suburban Passenger Land Transport by Turnover Sizeband
(£000 and number), 2005-2009.................................................................................................21
Table 1.16: Number of UK VAT- and/or PAYE-Based Enterprises Engaged
in Passenger Air Transport by Turnover Sizeband (£000 and number), 2009.................22
Table 1.17: Number of UK VAT- and/or PAYE-Based Enterprises Engaged in Rail
Transport by Turnover Sizeband (£000 and number), 2009................................................23
Table 1.18: Number of UK VAT- and/or PAYE-Based Enterprises Engaged in Sea
and Coastal Passenger Water Transport and Inland Passenger Water Transport
by Turnover Sizeband (£000 and number), 2009...................................................................23
Accommodation Providers.........................................................................................................24
Table 1.19: Number of UK VAT- and/or PAYE-Based Enterprises Engaged as Hotels
and Similar Accommodation, by Turnover Sizeband (£000 and number),
2005-2009......................................................................................................................................25
Table 1.20: Number of UK VAT- and/or PAYE-Based Enterprises Engaged
in the Provision of Holiday and Other Short-Stay Accommodation by Turnover
Sizeband (£000 and number), 2009..........................................................................................26
Travel Agents and Tour Operators...........................................................................................26
Table 1.21: Number of UK VAT- and/or PAYE-Based Enterprises Engaged as Travel
Agencies, Tour Operators and Other Reservation Service and Related Activities
by Turnover Sizeband (£000 and number), 2005-2009........................................................27
Employment..................................................................................................................................27
Table 1.22: Number of UK Employee Jobs in the Hotels and Restaurants, Travel
Agents, Air Transport and Water Transport Sectors (000), 2005-2009.............................28
Distribution...................................................................................................................................28
Table 1.23: The UK Outbound Holiday Market by Type of Arrangement by Volume
(%), 2005-2009..............................................................................................................................28
MARKET POSITION....................................................................................................................29
Table 1.24: Countries Expected To Produce the Largest Amount of Travel
and Tourism Gross Domestic Product ($bn and %), 2010....................................................29
KEY TRENDS................................................................................................................................30
Corporate Activity........................................................................................................................31
LEGISLATION...............................................................................................................................32
Development of Tourism Act 1969 ..........................................................................................33
Outbound Market........................................................................................................................33
Airports..........................................................................................................................................34
Air Transportation.......................................................................................................................34
Bus and Coach..............................................................................................................................34
Sea Passenger Transportation...................................................................................................35
KEY TRADE ASSOCIATIONS....................................................................................................35
Air Transport Users Council........................................................................................................35
The Air Travel Insolvency Protection Advisory Committee..................................................35
Airports Council International...................................................................................................36
Airport Operators Association...................................................................................................36
Association of European Airlines..............................................................................................36
Association of Independent Tour Operators..........................................................................36
British Air Transport Association..............................................................................................37
Civil Aviation Authority..............................................................................................................37
European Low Fares Airline Association.................................................................................37
Guild of European Business Travel Agents.............................................................................38
Guild of Travel Management Companies...............................................................................38
International Air Transport Association..................................................................................38
International Civil Aviation Organization...............................................................................39
Passenger Shipping Association................................................................................................39
The Travel Association................................................................................................................39
UKinbound....................................................................................................................................39
World Tourism Organization.....................................................................................................40
World Travel & Tourism Council...............................................................................................40
2. PEST Analysis 41
POLITICAL FACTORS.................................................................................................................41
Air Travel Insolvency Protection Advisory Committee Urges Adoption of ‘Flight Plus’
Air Travel Organisers’ Licence...................................................................................................41
Air Passenger Duty.......................................................................................................................41
Government Needs To Expand Airports .................................................................................42
Ferry Operators in Disagreement with Dover Harbour Board............................................42
BAA Wins Appeal Over Airports Break-Up.............................................................................42
The Package Travel Directive.....................................................................................................43
ECONOMIC FACTORS...............................................................................................................44
Volcano Crisis Cost Airlines $1.7bn...........................................................................................44
Government Advises Operators to Foot the Ash Bill............................................................44
The Collapse of Goldtrail Travel Ltd.........................................................................................45
Association of Independent Tour Operators Puts Pressure on ’Rogue Traders’.............45
Visit London Saved from Grant Cut.........................................................................................46
SOCIAL...........................................................................................................................................46
Industrial Actions Continue to Affect Air Travel Sector.......................................................46
Cruise and ferry firms oppose new crew salary rules...........................................................47
Greener Journeys Campaign .....................................................................................................47
Holidaymakers Urged To Go Greener......................................................................................48
CAA to be given new duty to help passengers......................................................................48
TECHNICAL...................................................................................................................................48
The introduction of Advanced Imaging Technology............................................................48
Bus Users Get Mobile with Arriva M-Ticketing Launch........................................................49
Dreamliner Visits the UK............................................................................................................50
easyJet Unveils Ash Detector Plan............................................................................................50
3. Consumer Research 51
INTRODUCTION..........................................................................................................................51
NUMBER OF HOLIDAYS TAKEN............................................................................................51
Table 3.1: Penetration of Holidays in the Last 12 Months (% of adults), Years Ending
March 2005-2008 and September 2009..................................................................................51
Table 3.2: Number of Holidays and Short Breaks Taken in the British Isles
and Abroad in the Last 12 Months (% of adults), September 2009..................................52
By Socio-Demographic Group...................................................................................................52
Table 3.3: Penetration of Holidays in the British Isles or Abroad in the Last 12 Months
by Number of Holidays and Socio-Demographic Group (% of adults), September
2009 ...............................................................................................................................................53
PLANNING A HOLIDAY............................................................................................................54
Table 3.4: Sources Used to Obtain Information for the Most Recent Holiday or Short
Break Taken in the Last 12 Months (% of adults), September 2009.................................55
BOOKING A HOLIDAY..............................................................................................................55
Table 3.5: Method of Booking the Most Recent Holiday or Short Break Taken
in the Last 12 Months (% of adults), September 2009.........................................................56
Table 3.6: How Far in Advance the Booking was Made for the Most Recent Holiday
or Short Break Taken in the Last 12 Months (% of adults), September 2009 ................56
METHOD OF TRAVEL................................................................................................................57
Table 3.7: Main Mode of Travel Used for the Most Recent Holiday or Short Break
Taken in the Last 12 Months (% of adults), September 2009.............................................58
TYPE OF ACCOMMODATION................................................................................................58
Table 3.8: Type of Accommodation Used for the Most Recent Holiday or Short Break
Taken in the Last 12 Months (% of adults), September 2009.............................................59
TYPE OF HOLIDAY.....................................................................................................................59
Table 3.9: Most Recent Holiday or Short Break Taken in the Last 12 Months — Type
of Holiday (% of adults), September 2009.............................................................................60
LENGTH OF STAY.......................................................................................................................60
Table 3.10: Most Recent Holiday or Short Break Taken in the Last 12 Months —
Length of Stay (% of adults), September 2009......................................................................61
COST OF HOLIDAY....................................................................................................................61
Table 3.11: Total Cost of Most Recent Holiday or Short Break Taken in the Last
12 Months (% of adults), September 2010.............................................................................61
4. Competitive Structure 63
THE MARKETPLACE..................................................................................................................63
Table 4.1: Leaders in the UK Travel and Tourism Industry by Market and Industry
Sector, 2010...................................................................................................................................63
MARKET LEADERS.....................................................................................................................63
British Airways PLC......................................................................................................................63
Company Structure......................................................................................................................63
Financial Results...........................................................................................................................64
FirstGroup PLC..............................................................................................................................64
Company Structure......................................................................................................................64
Financial Results...........................................................................................................................65
National Express Group PLC.......................................................................................................65
Company Structure......................................................................................................................65
Financial Results...........................................................................................................................66
P&O Ferries Ltd.............................................................................................................................66
Company Structure......................................................................................................................66
Financial Results...........................................................................................................................67
Thomson Airways Ltd..................................................................................................................67
Company Structure......................................................................................................................67
Financial Results...........................................................................................................................67
TUI Travel PLC...............................................................................................................................67
Company Structure......................................................................................................................67
Financial Results...........................................................................................................................68
Other Companies.........................................................................................................................69
Outside Suppliers.........................................................................................................................69
MARKETING ACTIVITY.............................................................................................................69
Table 4.2: Main Media Advertising Expenditure by the Main Sectors in the Travel
and Tourism Industry (£000), Years Ending March 2006-2010...........................................70
BUYING BEHAVIOUR................................................................................................................98
Table 5.19: The UK Domestic Travel and Tourism Market — Share of Expenditure,
Trips and Bed Nights by Age Group and Social Grade (%), 2009......................................99
Profile of Domestic Holidays......................................................................................................99
Table 5.20: Profile of One, Two and Three or More Holidays..........................................100
Penetration of Domestic Hotel Stays.....................................................................................101
Table 5.21: Penetration of Hotel Stays..................................................................................102
Penetration of Domestic Air Travel........................................................................................103
Table 5.22: Number of Separate Air Trips Made in the UK in the Last 12 Months
by Sex, Age, Social Grade and Region of Residence (% of adults), September
2009..............................................................................................................................................104
FORECASTS 2010 TO 2014....................................................................................................105
Table 5.23: The Forecast UK Domestic Travel and Tourism Market by Value
and Volume (£m, 000 and million), 2010-2014....................................................................106
Figure 5.2: The Forecast UK Domestic Travel and Tourism Market by Value (£m),
2010-2014....................................................................................................................................106
Executive Summary
The UK travel and tourism industry serves three separate markets: domestic
tourism by UK residents within the UK; outbound tourism by UK residents
travelling abroad; and inbound tourism by overseas residents travelling to the
UK. In 2009, total expenditure on UK travel and tourism (combining these three
markets) fell by 5.5% to £70.17bn. Falls were also recorded in the number of
trips made, which was down by 1.9% to 214.5 million, and in the number of
bed nights, which fell by 6.4% to 1.24 billion. The outbound market is the
largest by expenditure and bed nights, while the highest number of trips made
was reported in the domestic market.
The UK travel and tourism market felt the full force of the UK and global
recession in 2009. The outbound travel and tourism market, which
demonstrated steady annual growth in value terms between 2005 and 2008,
was most affected by the downturn, while the inbound market was hit by
falling visitor numbers. In contrast, the domestic travel and tourism market
flourished, as UK consumers opted for so-called ‘staycation’ holidays in
preference to holidaying abroad.
The election of the Coalition Government has already had implications for the
travel and tourism industry. The Government quickly announced that it will
block the building of a third runway at Heathrow airport and prohibit the
building of further runways at Gatwick and Stansted airports. It has also
indicated that it will replace Air Passenger Duty (APD), a levy which has resulted
in the UK having the highest levels of aviation tax in Europe, with a per-plane
duty (PPD).
2010 is expected to be another difficult year for the UK travel and tourism
market. The forecast improvement in the UK and global economic outlook in
2010 should help to bolster demand, although the speed and rate of recovery
is likely to remain modest and it may be 2011 before the market starts to
improve. The 2012 London Olympics should provide a welcome boost to both
the inbound and domestic sectors of the market.
1. Industry Overview
REPORT COVERAGE
The UK travel and tourism industry serves three separate markets:
Definitions
The main source of statistics for the domestic tourism market is the United
Kingdom Tourism Survey (UKTS), which is sponsored by the UK’s national
tourist boards. This survey covers all trips lasting up to 60 days, provided that
they involve a stay of at least 1 night away from home.
Figures for the outbound and inbound tourism markets are drawn from the
International Passenger Survey (IPS), which is undertaken by National Statistics
on behalf of central government. This survey covers all overseas trips lasting
up to 1 year, including day trips.
This Market Review also includes some statistics from the World Tourism
Organization (UNWTO). The UNWTO’s definition of international tourism
differs slightly from that used by the IPS, in that day trips are excluded.
REPORT BACKGROUND
The UK travel and tourism market is one of the UK’s largest industries and a
leading travel and tourism market on both a European and global level. In
value terms, the market enjoyed steady growth between 2005 and 2008, aided
by a supportive UK and global economic climate, plus market-specific factors
such as low-cost air travel, the popularity of independently organised holidays
and the growth of, and easy access to, online travel and tourism websites.
During the period spanning from 2005 to 2008, the outbound and inbound
sectors of the travel and tourism market flourished while the domestic sector
went through a period of ongoing decline. The dynamics of the market
changed in 2009, however, as the worldwide economic recession resulted in a
downturn in the outbound and inbound sectors of the market and an upturn
in the domestic market. This was mainly due to UK consumers opting for
so-called ‘staycation’ holidays in preference to holidaying abroad, while fewer
overseas visitors arrived in the UK. Although economic growth is set to return
in 2010, the UK travel and tourism market is expected to remain weak and it
may not be until 2011 that growth in the overall market returns.
ECOMONIC TRENDS
Population
The UK population reached a projected 61.8 million in 2009, an increase of
2.6% on 2005 and an additional 1.6 million people over the 5-year period. A
rising population increases demand for many types of goods and services
including travel and tourism. According to Kantar Media’s annual Target
Group Index (TGI) survey, 69.3% of British adults took a holiday or short break
in the 12 months ending September 2009, up from 66.3% who took a holiday
in the year ending March 2008.
Annual chain-
linked GDP 1,254,058 1,289,833 1,322,842 1,330,088 1,264,646
% change
year-on-year - 2.9 2.6 0.5 -4.9
Source: Economic & Labour Market Review, May 2010, National Statistics website
© Crown copyright material is reproduced with the permission of the Controller
of HMSO (and the Queen’s Printer for Scotland)
Inflation
UK inflation increased steadily between 2005 and 2008, reaching 4% in 2008.
Deflation was a feature of the UK economy in 2009, however, with the retail
price index (RPI) falling by 4.5%. The impact of the recession and falling prices,
affected the travel and tourism sector and the RPI for some of the main sectors
of the market. For example, the RPI for UK holidays was 0.3% lower in
December 2009 compared to December 2008 and the RPI for passenger
transport by air was 0.2% lower in December 2009 than in December 2008.
Sectors of the market for which the RPI rose between 2008 and 2009 included
foreign holidays, the RPI for which was 0.4% higher in December 2009 than in
December 2008; and the RPI for passenger transport by sea and inland
waterways which was 14.3% higher.
Unemployment
Unemployment in the UK increased by more than two-thirds (68.1%) to
1.53 million claimants in 2009, largely due to the recession. This sharp rise in
unemployment is likely to have affected consumer confidence and consumer
expenditure and contributed to the downturn in the outbound travel and
tourism market in 2009.
Household disposable
income (£) 13,572 13,952 14,331 14,907 15,495
% change year-on-year - 2.8 2.7 4.0 3.9
Source: Economic & Labour Market Review, May 2010, National Statistics website
© Crown copyright material is reproduced with the permission of the Controller
of HMSO (and the Queen’s Printer for Scotland)
MARKET SIZE
By Value
The UK travel and tourism market was valued at £70.17bn in 2009, a 5.5%
reduction on 2008. Outbound travel and tourism is the largest sector of the
market with a value of £31.69bn in 2009, representing 45.2% of the market.
However, the outbound market suffered significantly from the recession in
2009, with receipts from outbound travel and tourism declining by 14%
compared to 2008 figures. The domestic travel and tourism market, the
second-largest segment, had a value of £21.88bn in 2009, a 3.7% increase on
2008. Expenditure on the inbound travel and tourism market was also 1.6%
higher in 2009 at £16.59bn.
The UK continues to operate a trade deficit in travel and tourism although this
fell by more than a quarter (26.4%) in 2009 to £15.1bn from £20.51bn in 2008.
Table continues...
...table continued
† — excluding fares
Note: domestic figures relate to trips of at least 1 night but fewer than 60 days; outbound
and inbound figures relate to trips of less than 1 year, including day trips; the 2008 figures
for the outbound and inbound markets has also been revised by the source since the last
edition of this Market Review was published.
74,500
74,000
73,500
73,000
72,500
72,000
71,500
71,000
70,500
70,000
69,500
69,000
68,500
68,000
2005 2006 2007 2008 2009
Note: domestic figures relate to trips of at least 1 night but fewer than 60 days;
outbound and inbound figures relate to trips of less than 1 year, including day trips;
the 2008 figures for the outbound and inbound markets has also been revised by the
source since the last edition of this Market Review was published.
By Volume
The number of trips made in the UK travel and tourism market declined
throughout the 5-year review period and in 2009, this downward trend
continued with a 1.9% fall to 214.5 million trips. From 2008 to 2009, falls in
trip numbers were recorded in both the outbound and inbound markets, with
outbound trips down by 15.1% to 58.6 million and inbound trips slipping by
6.3% to 29.9 million. In contrast, domestic trips increased for the first time over
the review period, with a 7% advance to 126 million in 2009.
Note: domestic figures relate to trips of at least 1 night but fewer than 60 days; outbound
and inbound figures relate to trips of less than 1 year, including day trips.
235,000
232,500
230,000
227,500
225,000
222,500
220,000
217,500
215,000
Note: domestic figures relate to trips of at least 1 night but fewer than 60 days;
outbound and inbound figures relate to trips of less than 1 year, including day trips.
Note: domestic figures relate to trips of at least 1 night but fewer than 60 days; outbound
and inbound figures relate to trips of less than 1 year, including day trips.
1,375
1,350
1,325
1,300
1,275
1,250
1,225
1,200
2005 2006 2007 2008 2009
Note: domestic figures relate to trips of at least 1 night but fewer than 60 days;
outbound and inbound figures relate to trips of less than 1 year, including day trips.
MARKET SEGMENTATION
Table 1.9 provides a comparison of the three main measures (expenditure,
number of trips and number of bed nights) for the domestic, inbound and
outbound markets in 2009. The domestic market generated the largest
percentage of trips made, while the outbound market accounted for the
highest percentages of expenditure and bed nights.
% of Total
Domestic 31.2 58.7 32.1
Outbound 45.2 27.3 49.4
Inbound 23.6 13.9 18.5
The three sectors of the market continue to produce wide variations in average
expenditure, average bed nights and average bed nights per trip. In 2009,
average expenditure per trip in the domestic market was £173.64, a figure
substantially below the averages for outbound and inbound trips which were
reported as £540.72 and £555.12, respectively. This difference is principally due
to the average length of stay, with domestic trips being much shorter in
comparison to outbound and inbound trips. In 2009, the average stay in the
domestic market was 3.2 bed nights compared to 7.7 bed nights in the inbound
market and 10.5 bed nights in the outbound market.
† — excluding fares
Note: domestic figures relate to trips of at least 1 night but fewer than 60 days; outbound
and inbound figures relate to trips of less than 1 year, including day trips.
As noted earlier, the three main markets of the travel and tourism sector —
domestic, outbound and inbound — are each covered separately by this Key
Note Market Review. However, they can also be grouped in broader categories,
as follows:
UK Tourism
The total UK tourism market covers the domestic and outbound sectors. In
2009, this had a value of £53.58bn, a 7.5% reduction on 2008. There was also
a 1.1% fall to 184.6 million in the number of trips made and a 6.3% decline to
1.01 billion in the number of bed nights compared to 2008 levels.
% of Total
Domestic 41.3 37.9 37.8 36.4 40.8
Outbound 58.7 62.1 62.2 63.6 59.2
Total 100.0 100.0 100.0 100.0 100.0
Trips (000)
Domestic 138,700 126,300 123,500 117,700 126,000
Outbound 66,441 69,536 69,450 69,011 58,614
Total 205,141 195,836 192,950 186,711 184,614
% of Total
Domestic 67.6 64.5 64.0 63.0 68.3
Outbound 32.4 35.5 36.0 37.0 31.7
Total 100.0 100.0 100.0 100.0 100.0
Table continues...
...table continued
† — excluding fares
Note: domestic figures relate to trips of at least 1 night but fewer than 60 days; outbound
figures relate to trips of less than 1 year, including day trips.
Internal Tourism
Internal tourism combines the domestic and inbound markets of the travel and
tourism sector. In 2009, the value of this market increased by 2.8% to £38.47bn
from 2008 figures. There was also a 4.2% rise in the number of trips made to
155.9 million, and a 0.6% rise to 628.2 million bed nights over the same period.
These two sectors share and increase demand for many of the services and
facilities provided by the UK internal tourism market, such as transport,
accommodation and visitor attractions. Although a certain amount of overlap
is likely, some of these attractions and facilities are aimed more at the inbound
tourist while others are directed more towards the domestic market.
Table continues...
...table continued
Trips (000)
Domestic 138,700 126,300 123,500 117,700 126,000
Inbound 29,970 32,713 32,778 31,888 29,889
Total 168,670 159,013 156,278 149,588 155,899
% of Total
Domestic 82.2 79.4 79.0 78.7 80.8
Inbound 17.8 20.6 21.0 21.3 19.2
Total 100.0 100.0 100.0 100.0 100.0
% of Total
Domestic 64.0 59.4 61.1 60.6 63.5
Inbound 36.0 40.6 38.9 39.4 36.5
Total 100.0 100.0 100.0 100.0 100.0
† — excluding fares
Note: domestic figures relate to trips of at least 1 night but fewer than 60 days; inbound
figures relate to trips of less than 1 year, including day trips.
Table continues...
...table continued
International Tourism
The international tourism market combines the outbound and inbound
tourism markets. In 2009, this sector had a value of £48.29bn, which was 9.2%
lower than 2008 levels. There was also a 12.3% fall to 88.5 million trips made,
and an 11.1% decline to 843.9 million bed nights over the same period. The
outbound sector is the larger of the two markets, accounting for 65.6% of
expenditure, 66.2% of trips and 72.8% of bed nights in 2009. The main facilities
shared by these two sectors include airports, airlines and trains.
Expenditure (£m)†
Outbound 32,154 34,411 35,013 36,838 31,694
Inbound 14,248 16,002 15,960 16,323 16,592
Total 46,402 50,413 50,973 53,161 48,286
% of Total
Outbound 69.3 68.3 68.7 69.3 65.6
Inbound 30.7 31.7 31.3 30.7 34.4
Total 100.0 100.0 100.0 100.0 100.0
Trips (000)
Outbound 66,441 69,536 69,450 69,011 58,614
Inbound 29,970 32,713 32,778 31,888 29,889
Total 96,411 102,249 102,228 100,899 88,503
Table continues...
...table continued
% of Total
Outbound 68.9 68.0 67.9 68.4 66.2
Inbound 31.1 32.0 32.1 31.6 33.8
Total 100.0 100.0 100.0 100.0 100.0
% of Total
Outbound 72.9 72.0 73.3 74.1 72.8
Inbound 27.1 28.0 26.7 25.9 27.2
Total 100.0 100.0 100.0 100.0 100.0
p — provisional
† — excluding fares
Note: figures relate to trips of less than 1 year, including day trips.
INDUSTRY STRUCTURE
Concentration
The UK travel and tourism market is subject to varying degrees of
concentration. For example, the three leading bus and coach operators in the
UK — Firstgroup PLC, Stagecoach Holdings PLC and Arriva PLC together
operate 49.5% of the estimated 44,000 buses in the UK. Within the airline
industry, the three leading aircraft operators include British Airways PLC,
easyJet Airline Company and Flybe Ltd, which account for almost half (46.8%)
of the 1,010 aircraft flown by UK carriers in 2009. The travel agencies sector is
a little less concentrated although the three largest operators — Thomas Group
PLC, owned by Thomas Cook; TUI Travel PLC, owned by Thomson, and First
Choice — still accounted for an estimated 25.8% of the travel agencies
operating in the UK in 2009. Within the rail sector, three operators —
FirstGroup PLC, Govia Ltd and Stagecoach — are involved in the operation of
10 of the 19 UK passenger train franchises.
Travel Agencies
Number of UK Businesses
There are a large number, and broad range, of UK businesses involved in the
travel and tourism market, including: accommodation providers, such as hotels
and holiday camps, etc.; transport companies, such as bus and coach, rail, air
and sea operators; and travel agencies and tour operators.
Transport Providers
In 2009, there were 1,730 UK VAT- and/or PAYE-based enterprises engaged in
urban and suburban passenger land transport — a category which essentially
covers scheduled bus and coach operators. The 2009 total of 1,730 was a
reduction of 150 enterprises or 8% on the number of enterprises operating in
2008. This reduction in numbers occurred across most of the turnover sizebands
with, for example, the number of enterprises with turnovers of £1m or more
falling from 270 in 2008 to 240 in 2009. Company takeovers and
amalgamations are likely to have accounted for some of these reductions.
Note: the 2008 and 2009 UK Business: Activity, Size and Location publications have been
enhanced by National Statistics to include enterprises that although not registered for
VAT, do have PAYE employers. This has extended the scope of the 2008 and 2009 tables
from the previous VAT-based enterprise tables.
Number of Enterprises
Turnover (£000)
1-49 175
50-99 110
100-249 120
250-499 75
500-999 50
1,000-4,999 75
5,000+ 120
Total 725
Number of Enterprises
Turnover (£000)
1-49 15
50-99 10
100-249 15
250-499 5
500-999 5
1,000-4,999 10
5,000+ 20
Total 80
In 2009, there were 595 VAT- and/or PAYE-based sea and coastal passenger
water transport companies and 170 VAT- and/or PAYE-based inland passenger
water transport companies registered in the UK. The sea and coastal transport
sector includes the large ferry and cruise operators.
Table continues...
...table continued
Accommodation Providers
There was a reduction of 2.8% in the number of UK VAT- and/or PAYE-based
enterprises engaged as hotels, which stood at 9,910 in 2009. Much of this
reduction was due to hotels with smaller turnovers. For example, there was a
slide of 7% to 1,800 hotels with turnovers of £99,000 or less, and a fall of 5.4%
to 6,455 hotels with turnovers of £499,000 or less. By contrast, there was a 4%
increase in hotels with sales of between £1m and £5m, and a 7.2% advance in
hotels with sales of more than £5m. The reduction in the number of smaller
hotels operating in the market may be due to the current economic climate
and the difficulty that some of these hotels have experienced while operating
in a highly competitive market.
Note: the 2008 and 2009 UK Business: Activity, Size and Location publication have been
enhanced by National Statistics to include enterprises that although not registered for
VAT, do have PAYE employers. This has extended the scope of the 2008 and 2009 tables
from the previous VAT-based enterprise tables. The number of travel agents and tour
operators given in this table differs from the number given in Chapter 6 — The Outbound
Market — owing to the fact that the figures in this table refer to VAT- and/or PAYE-based
travel agents and tour operators, whereas the data in Chapter 6 relates to retail outlets
operated by travel agents.
Employment
According to National Statistics in its Annual Abstract of Statistics, the number
of employee jobs in the hotels and restaurants, travel agents, air transport and
water transport sectors stood at 2.4 million in 2008, a figure relatively
unchanged on 2007. Key Note estimates that all sectors of these markets could
be affected by job losses in 2009, with the total falling by a little over 1%.
Employment numbers for the road and rail passenger industries are not given
in the Annual Abstract of Statistics. Key Note estimates, however, that these
sectors could add another 100,000-plus to the number of people employed in
the UK travel and tourism industry.
Distribution
The preference for UK outbound holidaymakers to organise their own travel
and accommodation arrangements rather than book inclusive holidays or
package tours continued to gather pace in 2009 with the percentage of
independently arranged trips for outbound holidays reaching a 5-year high of
62.3%. As in the past, the availability of low-cost flights and the ease and
convenience of booking travel and accommodation via the Internet are
helping to sustain and boost this segment of the market.
Table continues...
...table continued
p — provisional
Note: figures relate to trips of less than 1 year, including day trips.
MARKET POSITION
According to the World Travel & Tourism Council (WTTC), the UK is forecast to
be the world’s seventh-largest generator of travel and tourism GDP in 2010
with a figure of some $231.1bn, which equates to 4% of the 2010 global travel
and tourism total of $5.75bn. The US is forecast to produce 23.9% of global
travel and tourism GDP followed by the People’s Republic of China (PRC) with
8.7%. France is expected to be the leading European travel and tourism market
with 4.9% of the total.
$bn % of Total
US 1,375.9 23.9
PRC 499.9 8.7
Japan 459.3 8.0
France 284.6 4.9
Germany 273.4 4.8
Spain 237.9 4.1
UK 231.1 4.0
Italy 217.1 3.8
Canada 136.1 2.4
Table continues...
...table continued
$bn % of Total
Australia 123.1 2.1
Others 1,912.6 33.3
Source: Tourism Satellite Accounting Forecasts 2010, World Travel & Tourism
Council
KEY TRENDS
In 2009, the UK domestic travel and tourism market benefited from the
‘staycation’ trend as domestic consumers turned away from overseas holidays
due to the recession, the low value of sterling and other negative factors. The
result was that expenditure, the number of trips and bed nights all observed
increases within the domestic travel and tourism market in comparison to 2008
figures.
The UK outbound travel and tourism market was significantly affected by the
economic downturn in 2009, which resulted in outbound expenditure falling
to its lowest level since 2004 and the number of outbound trips made sliding
to their lowest level since 2001. Particularly affected were inclusive holiday
trips, which fell by 19% from 2008 levels, while the number of independently
arranged holiday trips declined by 13.2%.
Spain and France remain the two main destinations for UK outbound travellers
and tourists, although in 2009, the numbers of trips made to both of these
destinations were at their lowest levels since at least 2005. The numbers of trips
made to each of the other 20 most visited outbound destinations were also all
lower in 2009 compared to 2008.
The recession took its toll on the UK inbound travel and tourism market in 2009,
and falls were recorded in the number of trips made and bed nights stayed.
On the positive side, inbound trips for holiday purposes did increase by 4.6%
from 2008, although inbound trips for business purposes fell by 19% in 2009
— their largest decline in more than a decade.
As in the UK, 2009 was a difficult year for the world tourism industry with
international tourist arrivals estimated to have fallen by 4.2% in 2009 and
international tourism receipts projected to have declined by 9.6%.
International tourist arrival numbers were particularly affected in the first
three quarters of 2009 although in the final quarter of the year, the number
of arrivals did increase compared to the comparable period in 2008.
Corporate Activity
• In December 2009, BAA sold Gatwick airport to Global Infrastructure
Management, LLC, which is part of Global Infrastructure Partners, for £1.5bn.
• In April 2010, British Airways PLC and Iberia Líneas Aéreas de España SA
announced that they had signed a definite merger agreement which will
create Europe’s third-largest airline by revenue. For BA and Iberia, a merger
would mean keeping pace with Deutsche Lufthansa AG and Franco-Dutch
airline Air France-KLM. The merger is expected to be completed by the end
of 2010.
• It also now seems likely that British Airways and Iberia will form a
transatlantic alliance with American Airlines. In July 2010, the European
Commission approved the partnership which gives the carriers antitrust
immunity so they can collaborate on pricing, scheduling, marketing,
frequent-flier programs and other areas. However, the pact still needs
clearance from the US Department of Transportation.
• In April 2009, the online travel company Freedom Direct Holidays Ltd ceased
trading. The company, which traded as freedomdirect.co.uk and
hotsunholidays.co.uk, sold air holiday packages to the Mediterranean, the
Canary Islands and Turkey, as well as to medium- and long-haul destinations.
• In December 2009, the Allbury Travel Group ceased trading. The company,
which traded as Libra Holidays, Argo Holidays and JetLife, sold air package
holidays and flights departing from Gatwick, Manchester, Newcastle,
Birmingham and Leeds-Bradford airports, going to Greece, Cyprus and Egypt.
These package deals were principally sold through travel agents.
• In July 2010, Goldtrail Travel Ltd, which traded as Goldtrail Holidays, Goldtrail
Travel and Sunmar, ceased trading. It operated flights and holiday packages
from many UK airports going to Turkey and Greece, which it largely sold
through travel agents. Approximately 15,000 people who travelled with
Goldtrail were trapped overseas, and a further 50,000 had holidays booked
with the company before it went bankrupt.
• In July 2010, Thomas Cook announced that it had agreed to buy Öger Tours,
a German tour operator specialising in package holidays to Turkey.
LEGISLATION
The UK travel and tourism market is affected by a wide range of legislative
measures across its various areas of activity.
Outbound Market
Organisations which sell package holidays in the UK must comply with the
Package Travel, Package Tours and Package Holiday Regulations 1992. These
regulations provide consumers with statutory legal rights against tour
operators, in that all tour operators selling packages must be bonded or
protect the prepayments that they hold. Consumers also have rights in relation
to changes made to their holidays or if the brochure was misleading. These
regulations also enable dissatisfied holidaymakers to pursue their case with a
single supplier, the travel organiser, instead of with individual suppliers such
as airlines or hoteliers. Where a tour operator has failed to honour its
contractual obligations to a customer, it may be liable to pay compensation.
Reforms to the Package Travel Directive are currently being considered by the
European Commission. Should the review progress as expected, a new directive
could be introduced in 2012.
Airports
Airports are subject to a wide range of domestic, European and international
legislation. New measures are also being introduced on an ongoing basis, with
one of the latest being the Government’s decision to introduce body scanners
at UK airports. A number of early legislation measures also remain important
including the Airports Act 1986 and the Airports (Northern Ireland) Order 1994
under which the CAA has powers of economic regulation for airports in the
UK. An airport with an annual turnover of at least £1m requires a ‘permission
to levy airport charges’ from the CAA. The exceptions are airports managed by
the Secretary of State or owned or managed by the CAA. The CAA can
investigate the conduct of such airports and if it finds that the airport operator
is unreasonably discriminating between users, unfairly exploiting its
bargaining position or engaging in predatory pricing it can impose conditions
to remedy the situation. The Government has designated three airports
(Heathrow, Gatwick and Stansted) for detailed price control. This means that
for these airports, the CAA sets a price cap to limit the amount that can be
levied by way of airport charges for a 5-year period.
Air Transportation
The air transportation sector is subject to a wide range of legislation, including
domestic, European and international. Examples include aircraft navigation —
The Air Navigation Order 2005; aircraft noise — The Aeroplane Noise
Regulations 1999; aviation insurance — The Civil Aviation (Insurance)
Regulations 2005; consumer rights — The Civil Aviation (Denied Boarding,
Compensation and Assistance) Regulations 2005; air travel organisers’ licensing
— The Civil Aviation (Air Travel Organisers’ Licensing) Regulations 1995; and
health and safety — Civil Aviation (Working Time) Regulations 2004.
A further 160-plus companies are Associate Members of the AOA and represent
a range of suppliers to the airports industry including airlines, air traffic
services, equipment manufacturers and suppliers, fuel companies, retailers,
information and security specialists, and various consultancy services.
• air safety
• economic regulation
• airspace regulation
• consumer protection
• regulates airlines, airports and national air traffic services’ economic activities
and encourages a diverse and competitive industry
• manages the UK’s principal travel protection scheme, the ATOL scheme;
licenses UK airlines; and manages consumer issues
• brings civil and military interests together to ensure that the airspace needs
of all users are met as equitably as possible.
According to the GTMC, its members account for some 80% of business travel
expenditure in the UK and facilitate more than 11 million transactions,
including the sale of over 6 million airline tickets each year.
The IATA is also involved in the worldwide accreditation of travel agents, with
the exception of the US where this is done by the Airlines Reporting
Corporation (ARC). However, for practical purposes, this and giving permission
to sell airline tickets from the participating carriers is achieved through
national member organisations. The IATA also regulates the shipping of
dangerous goods and publishes the IATA Dangerous Goods Regulations
manual, a globally accepted field source reference for airlines shipping
hazardous materials.
The ICAO Council adopts standards and recommended practices concerning air
navigation, prevention of unlawful interference, and facilitation of
border-crossing procedures for international civil aviation. In addition, the
ICAO defines the protocols for air accident investigation which is followed by
transport safety authorities in countries signatory to the Convention on
International Civil Aviation, commonly known as the Chicago Convention.
ABTA’s main aims are to maintain high standards of trading practice for the
benefit of its members, the travel industry at large and the consumers that they
serve, and to create as favourable a business climate as possible for its
members. In July 2008, ABTA amalgamated with the Federation of Tour
Operators (FTO) to create a more powerful and authoritative voice for the
travel industry.
UKinbound
UKinbound is a trade association representing the interests of the UK’s
inbound tourism businesses. The association has around 250 members and is
the only association to focus exclusively on the inbound sector. UKinbound
represents a diverse membership of tourism providers who organise tours in
the UK, provide accommodation in the UK or provide cultural, sporting and
other leisure activities in the UK. Membership includes accommodation
providers, destination marketing companies, attractions, tourism service
providers, inbound tour operators and UK ground handlers.
Its membership includes 154 countries, 7 territories and over 400 Affiliate
Members representing the private sector, educational institutions, tourism
associations and local tourism authorities.
UNWTO has regional representatives in Africa, the Americas, East Asia and the
Pacific, Europe, the Middle East and South Asia. It has its headquarters in
Madrid.
The WTTC works to raise awareness of travel and tourism as one of the world’s
largest industries. Membership of the Council is by invitation only.
2. PEST Analysis
POLITICAL FACTORS
All holiday companies selling air holiday packages and flights in the UK are
required by law to hold an ATOL licence. Under this licence, which is granted
after a company has met the Civil Aviation Authority’s (CAA’s) licensing
requirements, each ATOL holder must contribute to a protection fund called
the Air Travel Trust Fund (ATTF). In the event of an ATOL holder’s failure, the
ATOL Scheme ensures customers who booked and are contracted with the
ATOL holder for an air holiday package or a flight do not lose their payment
or are not stranded abroad.
In December 2009, the CAT upheld part of BAA’s application for review, which
could end up deferring future sales of Stansted and Glasgow or Edinburgh
airports for some years. The CC, which claims BAA’s near-monopoly over
Britain’s biggest airports is harming passengers’ interests, has announced its
intention to appeal against this judgement.
The directive covers pre-arranged holiday packages which combine at least two
of the following:
• transport
• accommodation
Consumers are protected where: (a) at least two of the above elements are sold
at an inclusive price and (b) the service covers a period of more than 24 hours
or includes an overnight stay.
The directive defines a range of the organisers’ and retailers’ obligations and
liabilities as well as the related consumer rights. The Member States have been
free to add more stringent rules to protect consumers in their national laws.
The development of the Internet and the emergence of low-cost air carriers
have, however, revolutionised the way in which consumers organise their
holidays and an increasing number of EU citizens now arrange their holidays
themselves, instead of buying pre-arranged travel packages. As a result of
these developments, the number of consumers who are protected under the
Package Travel Directive (PTD) when going on holiday has been falling steadily.
In the UK, for example, it is estimated that less than 50% of passengers on
leisure flights are protected under the Directive, compared to 98% in 1997. The
use of travel websites which allow holidaymakers to put together their own
‘dynamic packages’ has also created legal grey zones and uncertainty for both
businesses and consumers. As a result, the PTD, which dates back to 1990, is
now considered to be in need of an overhaul so that it better reflects modern
consumers’ needs and new business models.
To address these issues, the European Commission launched its own review of
the PTD in November 2009. The review asked for opinions from the travel
industry on the scope of the PTD; the level of financial protection consumers
should expect from travel agents and tour operators, who should be
responsible for any consumer problems; the level of information that
consumers should be provided with; and other aspects of how the sector
operates. The Commission has also published a report on consumer detriment
arising from the sale of dynamic packages. Once the various drafting and
Committee stages have been pursued, there is a potential for a new directive
to be finalised and agreed in 2012.
ECONOMIC FACTORS
According to IATA, some cost savings were made relating to flight groundings.
For example, the fuel bill was $110m lower per day compared to normal daily
flight activity. However, the airlines faced added costs including those from
passenger care. For an industry that lost $9.4bn in 2009, the crisis was
devastating, particularly since Europe’s carriers were already expected to lose
$2.2bn in 2010.
Airline bosses have also been left frustrated after a meeting in June 2010 with
the transport minister, after he ruled out compensation from the UK
Government over the ash cloud. Carriers including British Airways, Virgin
Atlantic, easyJet and Thomson Airways had met with the transport secretary to
put their case forward for compensation.
In the year ending 31st March 2010, 29 ATOL holders went into administration,
with one of the most notable failures being the Globespan Group, which
operated as both an airline and travel agent, and which ceased trading in
December 2009. As a result of the protection afforded by ATOL and the ATTF,
almost 2,500 ATOL-protected passengers were able to complete their holiday
during this period and around 45,000 others will receive a refund. In the first
half of 2010, around ten ATOL tour operators, in addition to Goldtrail Travel
Ltd, ceased trading.
SOCIAL
In another development, the Unite union has also announced that it is to hold
a strike ballot amongst BAA staff. The Union will ballot 6,185 staff including
security staff, engineers, firefighters and support staff at BAA airports
including Heathrow, Stansted, Southampton, Glasgow, Aberdeen and
Edinburgh. The airport operator says its offer to the Union is reasonable at a
time when the industry is recovering from recession and the volcanic ash cloud
disruption.
TECHNICAL
The requirement to deploy AIT machines came into effect on 1st February 2010,
initially affecting Heathrow and Manchester airports. The scanners are
designed to give airport security staff a much better chance of detecting
explosives or other potentially harmful items hidden on a passenger’s body.
Following their introduction at Heathrow and Manchester, the scanners are to
be installed at Birmingham and Gatwick airports and then rolled out across the
country.
Arriva sees its m-ticketing approach as having major advantages over some
other mobile ticketing systems in that it can be rolled out across the Arriva
networks without any downtime for vehicles or costly onboard technology.
Arriva also believes that the convenience to customers of having their ticket
on their mobile will encourage more customers to purchase multi-journey
tickets.
The first stage of the trial will be to fit a camera to an Airbus A340, which will
carry out tests in areas of the world where there are active volcanoes within
2 months. If successful, easyJet hopes that other carriers will follow suit and
that the cameras will be fitted to hundreds of aircraft. The system should allow
individual pilots to take action to avoid ash once it is detected by the cameras.
The pilots will then have about 5 minutes to change course in order to avoid
the ash. easyJet believes that the cameras will also allow the industry, as a
whole, to provide accurate maps of where the ash is, rather than relying on
computer-generated predictions. The accuracy of the predictions that led to
the grounding of flights within Europe in April has since been questioned by
the aviation industry.
The AVOID system was developed by the Norwegian Institute for Air Research
(NILU).
3. Consumer Research
INTRODUCTION
Kantar Media’s annual Target Group Index (TGI) survey examines various
aspects of consumer holidays, including the number of holidays taken at home
and abroad in the past 12 months, the method and timing of bookings, the
sources used to gather information, the type of holiday, the length of stay, the
type of accommodation, the mode of travel and the cost of the holiday. Key
Note has based this chapter on the TGI findings.
Source: Target Group Index (TGI) © Kantar Media, Quarter 3 (April-March), 2005,
2006, 2007, 2008 and 2009
In the year ending September 2009, 28.8% of British adults took one or more
holidays in the British Isles and 43% of British adults took one or more short
breaks — defined as 3 nights or less — in the British Isles. The percentage of
adults taking holidays abroad was, at 32.8%, higher than the proportion of
adults taking holidays in the UK ,whereas the percentage of adults taking short
breaks abroad was, at 16.1%, considerably lower than the proportion taking
short breaks in Britain.
By Socio-Demographic Group
The penetration of one or more holidays in the British Isles and one or more
holidays abroad by socio-demographic group in the last 12 months is analysed
in Table 3.3.
In the year ending September 2009, the proportion of British females who took
one holiday in the British Isles exceeded the proportion of males in the same
category, whereas for one or two holidays abroad, the proportion of males
exceeded the percentage of females. This trend was reversed for three or more
holidays abroad which attracted a higher percentage of females than males.
Penetration rates for taking one holiday in the British Isles peaked within the
35 to 44 age group, but were highest in the 65 and over age group in regards
to taking two or more holidays. These age trends differ a little for holidays
taken abroad, with the peak penetration rate for taking one holiday abroad
being within the 45 to 54 age group, and within the 55 to 64 age group when
taking two or more holidays.
As might be expected, the propensity for taking holidays, and particularly two
or more holidays, tends to be associated with social grade. For example, 18.3%
of adults in social grade A took two holidays abroad in the year ending
September 2009, compared with 4.2% of adults in social grade D and 2.3% of
adults in social grade E. Social grade differences are less apparent for adults
who took one holiday in the British Isles, although they do become more
pronounced as the number of holidays taken in Britain increases.
Regionally, the highest penetration rate for taking three or more holidays in
the British Isles is in the North West at 7.1%, with the lowest penetration rate
being in the North at 1.4%. The highest penetration rate for taking three or
more holidays abroad is in Greater London at 8.4% and the lowest is in Wales
at 2%.
Table continues...
...table continued
PLANNING A HOLIDAY
The Internet remains by far the most popular source of information used when
planning a holiday or short break. According to the TGI survey, 25.8% of adults
used the Internet when planning their most recent holiday in the 12 months
ending September 2009 and 19% used it when planning their most recent short
break within the same period. There are some variations between holidays and
short breaks in the popularity of other sources of information. For example,
travel agents were used by 10.2% of adults who were planning holidays but
by just 1.3% of adults who were planning short breaks.
BOOKING A HOLIDAY
The trend for individuals to make their own travel arrangements remains
popular among holidaymakers. In 2009, 17.1% of adults made their own
arrangements when booking their last holiday and 18.5% of adults made their
own arrangements when booking their last short break. 12.3% of adults used
a travel agent to book their last package holiday in the year ending September
2009 and 8.7% of adults used a tour operator to book their last package
holiday. The use of travel agents and tour operators to book short breaks is
fairly small, although 3.5% of respondents did use a travel agent to book their
last short break accommodation in the year ending September 2009. This
compares with 2.2% of adults who used a travel agent to book their last
holiday accommodation.
Travel Agent
Used travel agent to book package holiday 12.3 2.6
Used travel agent to book accommodation only 2.2 3.5
Used travel agent to book flight only 5.0 0.9
Tour Operator
Used tour operator to book package tour 8.7 2.3
Used tour operator to book flight only 3.2 0.9
In general, adults taking holidays tend to book their trips earlier in advance
than adults taking short breaks. For example, in the year ending September
2009, 9.6% of adults booked their most recent short break within 2 weeks of
their trip and 10.7% of adults booked about 1 month before their trip. By
contrast, just 4.9% of adults taking their most recent holidays booked it within
2 weeks of the trip and 7.7% booked a month before their trip.
For holidays, the largest percentage of adults (8.3%) booked their most recent
holiday 3 months in advance and 6.7% of adults booked their holiday 10 or
more months in advance. By comparison, only 3.5% of adults taking their most
recent short break booked it more than 6 months in advance.
Table 3.6: How Far in Advance the Booking was Made for the
Most Recent Holiday or Short Break Taken in the Last
12 Months (% of adults), September 2009
Table continues...
Table 3.6: How Far in Advance the Booking was Made for the
Most Recent Holiday or Short Break Taken in the Last
12 Months (% of adults), September 2009
...table continued
METHOD OF TRAVEL
Respondents to the TGI survey were also asked about the main method of
travel used for their most recent holiday taken in the previous 12 months. It
should be noted that, for some methods of travel, e.g. coach and rail, the
results do not generally distinguish between holidays in the British Isles and
holidays abroad. The survey also covers the main method of travel used, but
does not take into account the use of multiple types of transport. It may be,
for example, that some holidaymakers fly to their destination but use a hired
self-drive car for the duration of their stay. Similarly, people might fly or take
the train to cover long distances within Great Britain (for example, from the
south of England to Scotland), and then hire a car on arrival.
Taking these qualifications into consideration, the survey found that 27% of
respondents holidayed with their own car when taking their most recent short
break and 17% used their own car on their most recent holiday. The use of air
travel, scheduled and charter, is considerably more likely for adults who took
holidays rather than short breaks, while the use of rail travel is more likely for
adults who took a short break rather than a holiday.
Table 3.7: Main Mode of Travel Used for the Most Recent
Holiday or Short Break Taken in the Last 12 Months (% of
adults), September 2009
TYPE OF ACCOMMODATION
Hotels are the most popular type of accommodation for adults taking holidays
or short breaks, with 26.2% indicating that they had used a hotel on their most
recent holiday. The highest penetration of adults (9.3%) stayed on a full- or
half-board basis, followed by 6.6% of adults on a bed-and-breakfast basis,
6.3% on an all-inclusive basis and 4% who booked a room only. A further 1.4%
of adults stayed in a guest house. The situation was similar for short breaks
with 22.7% of adults having stayed in a hotel on their most recent vacation,
with bed and breakfast the most popular option, while a further 4.8% of
respondents stayed in a guest house.
Of the self-catering options, renting a villa, flat, cottage or chalet was the most
popular choice for adults taking a holiday in 2009, while a caravan was the
most popular choice for adults taking a short break.
Staying with friends or relatives was the second most popular accommodation
option for adults taking a short break in 2009, with 9.5% of respondents opting
for this.
Self Catering
Rented villa/flat/cottage/chalet 11.7 4.6
Caravan 5.3 5.3
Own holiday home or timeshare 3.7 2.1
Camping/tent 2.0 3.0
Timeshare 1.8 0.2
TYPE OF HOLIDAY
A beach or resort holiday remains by far the most popular type of vacation
undertaken by respondents to the TGI survey. In the year ending September
2009, the most recent holiday undertaken by 22.5% of adults was a beach or
resort holiday, with the second most popular choice being a holiday centre
vacation, which was chosen by 6.4% of respondents in the same year. By
contrast, a city break holiday was the most popular recent short break option,
and was undertaken by 12.2% of adults in 2009. The second most popular short
break option was a holiday centre visit followed by a beach/resort short break.
Table 3.9: Most Recent Holiday or Short Break Taken in the Last
12 Months — Type of Holiday (% of adults), September 2009
LENGTH OF STAY
The traditional 7-night holiday remains the most popular length of stay for
British adults. In the year ending September 2009, 13.5% of adults stayed for
7 nights on their most recent holiday, with a further 10.9% of adults staying
for 14 nights. The third most popular length of stay was 21 nights with 9.9%
of adults staying for this period of time during their most recent holiday.
Table 3.10: Most Recent Holiday or Short Break Taken in the Last
12 Months — Length of Stay (% of adults), September 2009
COST OF HOLIDAY
As might be expected, there were considerable differences between the total
cost of holidays and short breaks. In the year ending September 2009, the total
cost of the most recent short break taken by 23.2% of British adults was £249
or less compared to just 6.5% of adults who spent this amount on their most
recent holiday. At the other end of the cost range, just 2.6% of adults spent
£1,000 or more on their most recent short break compared to 23.8% of adults
who spent £1,000 or more on their most recent holiday. At the very top end of
the cost range, almost one in 10 adults (9.3%) spent £2,500 or more on their
most recent holiday.
Table continues...
...table continued
Note: data relates to the total cost of the holiday, excluding spending money, for the
party.
4. Competitive Structure
THE MARKETPLACE
The UK travel and tourism market is served by a wide range of companies from
a variety of sectors, although only a small number of these companies have a
significant presence in the main market sectors. These include British Airways
PLC, which is principally involved in the inbound and outbound scheduled
airline sector; Thomson Airways Ltd, which is the UK’s leading charter airline;
P&O Ferries Ltd, which is the UK’s leading ferry operator; FirstGroup PLC; and
National Express Group PLC, which both have leading positions in the UK bus
and train sectors; and TUI Travel PLC, which is the UK’s leading travel agent
and tour operator.
MARKET LEADERS
Company Structure
British Airways PLC is the largest airline in the UK based on fleet size,
international flights and international destinations. Until 2008, British Airways
was also the largest UK airline in terms of passenger numbers, although the
low-cost carrier easyJet has now surpassed British Airways on that measure.
British Airways offers flights to 150 destinations across the UK, Europe, the
Americas, Africa, the Middle East and Asia/Pacific, and has a fleet of over 230
aircraft. Its main base is London Heathrow where it owns around 40% of the
takeoff and landing slots. British Airways also has a second hub at Gatwick
airport and operates overseas flights from London City airport. The company
also operates domestic flights from a number of non-London airports.
However, the airline has recently discontinued all direct overseas flights from
non-London airports and international passengers originating at non-London
airports must now connect via London.
British Airways has reached an agreement to merge with the Spanish airline
Iberia. The merger between the two carriers will create the world’s
third-largest airline in terms of annual revenue and the second-largest airline
group within Europe. The merger was confirmed in April 2010, and it is
expected to be completed by the end of the same year.
Financial Results
In the year ending 31st March 2010, British Airways PLC reported a fall in
turnover of 11.1% to £7.99bn. A pre-tax loss of £531m was announced in 2010
compared to a pre-tax loss of £401m in 2009.
FirstGroup PLC
Company Structure
FirstGroup PLC is a leading transport operator in the UK, mainland Europe and
North America. The company transports some 2.5 billion passengers a year and
employs more than 130,000 staff.
In the UK, FirstGroup is Britain’s largest bus operator, running more than one
in five of all local bus services. It has a fleet of nearly 8,500 buses and these
carry approximately 3 million passengers a day in more than 40 major towns
and cities. FirstGroup also operates Greyhound UK which provides regular
services between London and Portsmouth and London and Southampton.
Financial Results
In the year ending 31st March 2010, FirstGroup PLC’s turnover increased by
2.1% to £6.32bn, while its pre-tax profit fell by 10.2% to £179.6m. The
company’s UK bus operation contributed £1.17bn to group turnover in the year
ending 31st March 2010 and its UK rail operation contributed £2.19bn.
Company Structure
National Express Group PLC is a leading international public transport group,
with bus, coach and train service operations in the UK; bus and coach
operations in Spain; and school bus services in North America.
National Express UK rail services include the operation of the East Anglia
service and the London commuter service, c2c. In November 2009, National
Express relinquished its loss-making East Coast franchise although it will
continue to operate its remaining two rail franchises to their normal
termination dates in 2011.
In North America, National Express operates yellow school buses in the US and
Canada. The service operates in 27 states and two Canadian provinces,
employing 19,000 people and over 12,000 vehicles. In Spain, National Express
is the leading private operator of coach and bus services with 1,400 vehicles
and 6,400 employees.
Financial Results
In the year ending 31st December 2009, turnover at National Express Group
PLC fell by 2% to £2.71bn. The company reported a pre-tax loss of £83.5m in
2009 compared to a pre-tax profit of £109.9m in 2008.
According to the company’s annual accounts for 2009, the train division
contributed £1.19bn to overall turnover in 2009, while the UK bus division
contributed £293.4m and the UK coach division £235.9m.
Company Structure
P&O Ferries Ltd offers services to mainland Europe from Dover, Hull and
Portsmouth to destinations in France, Holland, Belgium and Spain. The
company also operates a mixture of freight and passenger services under the
name P&O Irish Sea from Cairnyan or Troon to Larne; and from Dublin to
Liverpool. It also has a sister company, P&O Ferrymasters, which is a leading
European provider of tailor-made transportation and logistics services.
Freight-only services are operated by the company from Tilbury to Zeebrugge;
and Teesport to Rotterdam or Zeebrugge. United Arab Emirates-based Dubai
World Corporation is P&O Ferries Ltd’s ultimate holding company.
P&O Ferries operates four ferry routes from the UK to the Continent:
• Hull to Rotterdam — P&O operates two vessels, the Pride of Hull and the
Pride of Rotterdam. These two ships operate one overnight sailing in each
direction per day.
• Hull to Zeebrugge — P&O operates two vessels, the Pride of York and the
Pride of Bruges. These two ships operate one overnight sailing in each
direction per day.
Two new vessels, the Spirit of Britain and the Spirit of France, will come into
service with P&O in 2011. At 213 metres long and 49,000 tonnes, the two ferries
will be the largest ships ever to operate between Dover and Calais, each with
a carrying capacity of 180 articulated lorries plus a further 200 cars and 1,750
passengers. They are currently being built in Finland at a cost of more than
£330m. The Spirit of Britain will enter service in January 2011 and the Spirit of
France in September 2011.
Financial Results
In the year ending 31st December 2008, turnover at P&O Ferries Ltd increased
by 0.9% to £286.8m. The company reported a pre-tax profit of £21.1m in 2008
compared to a pre-tax profit of £25.6m in 2007.
Company Structure
Thomson Airways is the third-largest airline in the UK by total passengers
carried, after easyJet and British Airways, and is the world’s largest charter
airline by this measure. Thomson offers mostly chartered flights from the UK
to holiday destinations including the Mediterranean and the Caribbean. It
operates flights from over 20 UK airports to more than 80 destinations, with
its three main UK bases being London Gatwick, Birmingham and Manchester.
The airline has a fleet of around 64 aircraft.
Financial Results
In the year ending 30th September 2009, Thomson Airways Ltd increased its
turnover to £1.81bn from £1.11bn in 2008. Pre-tax profit rose to £106m in 2009
from £50m in 2008.
Company Structure
TUI Travel PLC is the world’s leading international leisure travel group with
operations in approximately 180 countries worldwide, including 27 source
markets. It has its headquarters in Crawley, near Gatwick airport, employs
around 50,000 people and operates a pan-European airline consisting of 146
aircraft. It serves more than 30 million customers each year.
TUI Travel mainly serves the leisure travel customer and is organised and
managed through three business sectors which include: Mainstream; Activity;
and Accommodation & Destinations. Following a review, the operations of a
fourth business sector, Specialist & Emerging Markets, were transferred to
other areas of the group.
The Activity sector has over 40 activity travel businesses that operate under five
divisions — Marine, Adventure, Ski, Student and Sport. The Adventure division
takes customers to adventure destinations, while the Sport division offers
supporter-led cricket and rugby tours in Australia and the UK. The Student
division offers holidays which range from traditional school trips in France to
trek holidays for groups of young adults in the Himalayas. This sector also
includes the leading yacht brands in Europe and the US, and the world’s largest
ski operator.
The Accommodation & Destinations sector sells and provides a range of services
to tour operators, travel agents, corporate clients and direct to consumers.
These services include hotel accommodation, transfers, excursions, round trips,
incentives, conferences and events and cruise handling. The sector offers
Business to Business (B2B) and Business to Consumer (B2C) services.
Financial Results
In the year ending 30th September 2009, turnover for TUI Travel PLC fell by
0.5% to £13.86bn. The company reported a pre-tax loss of £52m in 2009, down
from a pre-tax loss of £267m in 2008.
TUI Travel PLC’s interim results for the 6 months ending 31st March 2010
revealed a turnover of £4.93bn compared to £5.38bn in the corresponding
period in 2009. A pre-tax loss of £367m was reported in the 6 months ending
31st March 2010 compared to a pre-tax loss of £333m in 2009.
Other Companies
There is a wide range of companies operating in the travel and tourism market,
including businesses that provide other scheduled passenger land transport,
scheduled and non-scheduled passenger air transport, rail transport, sea and
coastal water transport and inland water transport, as well as hotels, other
accommodation providers, travel agents and tour operators. According to
National Statistics’ UK Business: Activity, Size and Location 2009, some 25,200
UK VAT- and/or PAYE-based enterprises were engaged in these various
activities in 2008 (Tables 1.15 to 1.21 in Chapter 1 — Industry Overview).
Outside Suppliers
The travel and tourism industry is supported by a wide range of companies in
a variety of sectors. The services offered by these companies include catering,
security, manufactur of transport equipment (buses, coaches, trains and
aircraft), energy supply, IT and construction.
MARKETING ACTIVITY
Main media advertising expenditure by the main sectors in the travel and
tourism industry fell for the second successive year in the year ending March
2010, declining by 10.4% to £382.9m. Of the sectors which contribute to overall
expenditure, the largest sums are committed by the transport operators who
spent a combined £160.3m on this in the year ending March 2010, a 14.4%
reduction on the previous year. Main media advertising expenditure levels by
tourist offices and tour operators fell by smaller percentages of 5.7% and 4.8%
respectively and expenditure by the accommodation providers was down by
4.7%.
The largest percentage fall in main media advertising expenditure in the year
ending March 2010 was reported by airlines (down 22.6% to £70.9m) with the
largest increase in expenditure being recorded by travel agents (up 16.1% to
£18.1m).
% change 2009-2010
2006
2007
2008
2009
2010
Transport Operators
Airlines† 89,636 100,271 109,710 91,598 70,859 -22.6
Cruises 30,238 34,043 44,903 45,208 40,864 -9.6
Rail 24,677 24,874 27,940 28,637 27,942 -2.4
Ferries 12,624 11,789 11,814 11,042 10,732 -2.8
Bus & Coach 10,923 16,031 12,007 10,861 9,950 -8.4
Total transport
operators 168,098 187,008 206,374 187,346 160,347 -14.4
Tourist Offices
Overseas tourist
offices 44,904 41,291 38,796 39,625 36,751 -7.3
UK tourist offices 14,971 15,600 14,308 17,401 17,003 -2.3
Total tourist
offices 59,875 56,891 53,104 57,026 53,754 -5.7
Tour Operators
Overseas tour
operators 55,303 60,763 52,961 51,212 48,389 -5.5
UK tour operators 6,145 6,275 7,484 4,175 4,313 3.3
Total tour
operators 61,448 67,038 60,445 55,387 52,702 -4.8
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% change 2009-2010
2006
2007
2008
2009
2010
Accommodation
UK hotels 21,630 23,378 25,641 27,353 28,370 3.7
UK holiday resorts 10,838 10,375 10,612 9,861 7,108 -27.9
Total
accommodation 32,468 33,753 36,253 37,214 35,478 -4.7
DEFINITION
The United Kingdom Tourism Survey (UKTS) is the main national consumer
survey used to measure the volume and value of tourism trips taken by
residents of the UK. It is jointly sponsored by VisitBritain, VisitScotland,
VisitWales and the Northern Ireland Tourist Board and covers trips away from
home lasting one night or more (but fewer than 60 days) taken by UK residents
for the purpose of holidays, visits to friends and relatives (VFR), business and
conferences or any other purpose. Tourism is measured in terms of volume
(trips taken, nights away) and value (expenditure on trips).
The domestic travel and tourism market can be divided in four main ways:
KEY TRENDS
The UK domestic travel and tourism market, which has contracted more or less
yearly since 2005, benefited from the so-called ‘staycation’ trend in 2009 as
domestic consumers turned away in large numbers from overseas holidays and
travel and holidayed within the UK instead. The outcome was that consumer
expenditure on domestic travel and tourism, the number of trips made and
bed nights all rose in comparison to 2008 figures.
The main factor driving the UK domestic travel and tourism market in 2009 was
the holiday sector, which showed strong growth compared to 2008 with the
number of trips made for holiday purposes up by 16.7% and holiday
expenditure up by 10.7%. By comparison, expenditure on VFR, business trips
and other purposes was lower than in 2008.
Despite the increase in the domestic travel and tourism market, both room
occupancy and bedspace occupancy rates fell in 2009. The room occupancy
average fell from 60% in 2008 to 58% in 2009, while the bedspace occupancy
level declined from 44% to 43% over the same period.
Average expenditure per trip fell by 3.2% to £173.64 between 2008 and 2009
while the average length of stay remained unchanged at 3.2 days. Average
expenditure per bed night fell from £55.78 in 2008 to £54.87 in 2009, a 1.6%
decline.
Early indications of market trends in 2010 suggest that the gains made in the
domestic travel and tourism sector in 2009 will be maintained in 2010. Much
of the impetus in the early part of the year, however, originated from
recoveries in the business trips and the trips to friends and relatives markets.
Trips for holiday purposes in the first quarter of 2010 were slightly down
compared to the corresponding period in 2009.
MARKET SIZE
For the first time since 2005, the UK domestic travel and tourism market
returned to growth in 2009 as the recession and the general economic climate
led to an upswing in demand for holidays in the UK. The largest increase was
in the number of trips made, which was up by 7.1% to 126 million, the highest
total since 2006. There was also a 5.4% advance in the numbers of bed nights
to 398.8 million and a 3.7% rise in domestic travel and tourism expenditure to
£21.88bn, which was the highest total in current terms since 2005.
Note: figures relate to trips of at least 1 night but fewer than 60 days.
137,500
135,000
132,500
130,000
127,500
125,000
122,500
120,000
117,500
Note: figures relate to trips of at least 1 night but fewer than 60 days.
By Purpose of Trip
Trips for holidays are the largest sector of the UK domestic travel and tourism
market and, in 2009, were also the most buoyant, with expenditure on this
sector of the market rising by 10.7% to £12.61bn. By contrast, the other sectors
of the domestic market were less dynamic, with expenditure on VFR, on
business trips and on trips for miscellaneous purposes down by 5.1%, 3.3% and
12.9%, respectively. Trips for holiday purposes accounted for 57.6% of the UK
domestic travel and tourism market by value in 2009 up from 50.7% in 2005.
% of Total
Holiday 50.7 52.0 54.0 54.0 57.6
VFR 23.6 23.0 22.8 22.5 20.6
Business 23.2 22.1 21.0 21.2 19.8
Miscellaneous 2.5 2.8 2.3 2.3 1.9
Total 100.0 †100.0 †100.0 100.0 †100.0
In volume terms, there was a 16.7% increase to 60.7 million in the numbers of
trips made for holiday purposes in 2009. This, in turn, raised the share of the
trips total accounted for by holidays from 44.2% in 2008 to 48.2% in 2009.
According to VisitEngland, 34% of these trips were made to the seaside, and
a further 24% were made to the countryside. Almost two-fifths of these trips
involved holidays of 4 nights or more.
There was a slight increase in the number of trips for VFRs in 2009, which was
up 0.7% to 44.4 million, but the numbers of trips made for business and
miscellaneous purposes was down.
% of Total
Holiday 42.8 42.2 43.5 44.2 48.2
By Season
Seasonality is a feature of the UK domestic travel and tourism market with the
third quarter of the year (July to September) being the most popular.
According to VisitEngland, the domestic holiday market is more seasonal than
the UK domestic travel and tourism market as a whole, with 39% of holiday
trips taken in the third quarter of the year, compared to 32.7% overall, and
30% taken in the second quarter, compared to 27.8% overall.
By Destination
Assessed in terms of region of residence, the South East of England is the main
base for UK domestic tourists, accounting for between 15% and 15.5% of trips,
expenditure and bed nights in 2009. Overall, residents of England accounted
for 83.7% of domestic travel and tourism expenditure and 85.7% of trips in
2009.
By Mode of Transport
Transportation by owned car remains the most popular method of transport
used for UK domestic tourism by far, with the percentage of trips made via this
mode increasing from 73% in 2008 to 75% in 2009. The only noticeable change
in domestic tourism transportation modes during the review period was the
increase, from 11% in 2005 to 13% in 2008, in the percentage of people
travelling by train.
Note: refers to the mode of transport used on the longest part of the journey; figures
relate to trips of at least 1 night but fewer than 60 days.
By Type of Accommodation
Both room occupancy and bedspace occupancy rates fell across the UK in 2009.
At 60% room occupancy was highest in Scotland and lowest in Northern
Ireland (49%). For bedspace occupancy, a similar pattern occurs with the
average for the UK falling by 1 percentage point between 2008 and 2009 to
43%, and the range of bedspace occupancy rates being highest in Scotland and
lowest in Northern Ireland. The UK occupancy survey estimates that non-UK
residents accounted for around 6% of bedspace occupancy in 2009.
Table continues...
...table continued
Bedspace Occupancy
England 45 47 49 44 43
Scotland 44 45 46 45 46
Wales 40 42 40 39 38
Northern Ireland 36 37 40 38 36
UK 44 47 48 44 43
Note: the difference between bedroom and bedspace occupancy is explained by single
occupancy of double/twin rooms or, in some cases, empty beds in family rooms. A double
room occupied by one person has 100 per cent room occupancy but only 50% bedspace
occupancy.
Bedspace occupancy rates for hotels fell to a 4-year low of 46% in 2009. For
guest houses and bed and breakfasts, the occupancy rates remained
unchanged in 2009 at 38% and 36%, respectively.
Bedspace Occupancy
Hotels 46 49 52 47 46
Guest houses 41 39 40 38 38
Bed and breakfasts 36 38 35 36 36
The two most popular types of accommodation for domestic tourism are the
homes of friends and relatives, which accounted for 38% of all trips taken in
2009, and hotels/motels and guest houses, which accounted for a further 33%
of trips. Generally, the level of popularity of the various types of
accommodation remains fairly stable year-on-year with little real movement.
Friends’/relatives’ homes 40 41 40 39 38
Hotel/motel/guest house 31 31 32 33 33
Rented house/flat/chalet 5 5 5 5 6
Farmhouse/bed and
breakfast 5 5 5 5 5
Camping 4 4 4 4 4
Towed caravan 4 3 4 3 4
Hostel/university/school 2 2 1 2 2
Second home/timeshare 1 1 1 1 1
Table continues...
...table continued
Hotel/motel/guest house 45 46 46 48 46
Friends’/relatives’ homes 24 21 21 21 20
Rented house/flat/chalet 7 8 9 9 10
Farmhouse/bed and
breakfast 7 6 6 6 6
Towed caravan 3 3 3 3 3
Camping 2 2 2 2 3
Hostel/university/school 2 2 1 2 2
Second home/timeshare 1 1 1 1 1
Other 9 11 11 9 10
Table continues...
...table continued
SUPPLY STRUCTURE
The principal suppliers of services to the domestic travel and tourism market
are transport operators and accommodation providers. The structure of these
two sectors is analysed in this section of the Key Note Market Review.
Transport Operators
The main providers of transport in the domestic travel and tourism market are
passenger-train operators, bus and coach operators, and domestic airlines.
Much of the public transport network in the UK is deregulated, although
bodies such as the Civil Aviation Authority (CAA) oversee safety, consumer
protection and the economics of public transport provision. The Department
for Transport (DfT) also has an important role in awarding the franchises that
are required by most of the train-operating companies (TOCs).
As of July 2010, these five companies are estimated to have operated around
26,900 vehicles out of a total UK bus fleet of around 44,000 vehicles. Combined
they accounted for an estimated 61.1% of the total.
Number of Buses in
the UK % of Total
Top Five Operators
Firstgroup PLC 8,500 19.3
Stagecoach Holdings PLC 7,000 15.9
Arriva PLC 6,300 14.3
The Go-Ahead Group PLC 3,500 8.0
National Express Group PLC 1,600 3.6
Total top five operators 26,900 61.1
Train Operators
The rail network in Great Britain consists of five high-speed main lines (the
West Coast, East Coast, Midland, Great Western and Great Eastern) which
branch out from London to the rest of the country. These are in turn
augmented by regional rail lines and commuter networks within the major
cities. The Channel Tunnel Rail Link is operationally separate from the rest of
the network.
Train-Operating Companies
There are 24 train companies in the UK comprising 19 franchised train
operators and 5 non-franchised/open access operators.
For 16 of the 19 franchised train operators in Great Britain the DfT is the
awarding body. The three exceptions are:
• Arriva Trains Wales — the Welsh Assembly has managed the franchise since
July 2006, though it was originally awarded by the DfT.
• Eurostar
• Heathrow Express
• Grand Central
Franchise End
Owner Franchised Services Date
Table continues...
...table continued
Franchise End
Owner Franchised Services Date
FirstGroup PLC First Capital Connect 31/03/2015
First Great Western 31/03/2016
First Scotrail 08/11/2014
FirstGroup PLC/Keolis SA First TransPennine Express 31/01/2012
Govia Ltd London Midland 19/09/2015
London and South Eastern
Railway 31/03/2014
Southern Railway 19/09/2009
DB Regio UK Ltd (Deutsche
Bahn AG) The Chiltern Railway Company 31/12/2021
MTR/DB Regio UK Ltd
(Deutsche Bahn AG) London Overground 31/03/2014
National Express Group PLC c2c Rail 31/05/2011
National Express East Anglia 31/03/2011
Stagecoach Group PLC Stagecoach South Western 03/02/2017
East Midland Trains 31/03/2015
Virgin Rail Group Ltd West Coast Trains 31/03/2012
The trend in domestic air travel between 2005 and 2009 has generally been
one of downturn, with the 2009 total of 19.7 million passengers a 15.4%
reduction on 2005 figures. This fall has been caused in part by rising air travel
taxes, an improving rail network and cuts in the number of domestic air routes
served by the airlines.
In 2009, four airlines accounted for 87.9% of the 19.7 million passengers who
used scheduled domestic flights. easyJet conveyed 5.2 million passengers, Flybe
uplifted 4.9 million, British Airways transported 4 million passengers and BMI
carried 3.2 million.
Accommodation Providers
The accommodation sector of the domestic travel and tourism market is
dominated by the hotel chains, with the two leading hotel groups by outlet
numbers including the budget chains, Premier Inn Hotels and Travelodge
Hotels. Other leading hotel chains by number of outlets include Best Western
with 270 hotels and the InterContinental Hotel Group with around 250.
MAJOR PLAYERS
Arriva PLC
Arriva PLC is one of Europe’s largest transport service organisations with
operations in the UK, the Czech Republic, Denmark, Germany, Hungary, Italy,
the Netherlands, Poland, Portugal, Slovakia, Spain and Sweden. The company
has 42,000 employees and provides more than 1 billion passenger journeys
each year through an extensive range of public transport services which covers
buses, trains, commuter coaches, airside transport and water buses.
Arriva has bus operations in the North East, North West, the South East of
England, Yorkshire, the Midlands, Scotland and Wales. It is also one
of London’s largest bus operators under contract to Transport for London (TfL).
The company operates a fleet of more than 6,300 buses.
In addition to the UK, Arriva has bus operations in ten other European
countries with a combined fleet of over 8,000 buses. This includes around 1,720
buses in Denmark and 1,760 buses in Italy.
The UK rail operations of Arriva PLC comprise the Arriva Trains Wales/Trenau
Arriva Cymru franchise, which stretches from Manchester, through north and
south Wales and across to Birmingham and Gloucester; and the CrossCountry
network, which stretches from Aberdeen to Penzance.
In the year ending 31st December 2009, Arriva PLC had a turnover of £3.15bn
up from £3.04bn in 2008 and a pre-tax profit of £121.7m down from £150m in
2008. According to Arriva’s Annual Report and Accounts 2009, the UK bus
division contributed £961.5m to group turnover in 2009 and the UK train
division contributed £702.6m.
Go-Ahead operates a fleet of over 3,500 buses, which carry, on average, around
1.6 million passengers every day. The company’s operations are focused on
high-density commuter markets. This includes a strong presence in London
where it provides regulated services for TfL and the operation of deregulated
services in the North East, Oxford, the South East and southern England.
The rail operation, Govia, is 65% owned by Go-Ahead and 35% owned by
Keolis, a France-based operator of passenger transport services which is
majority owned by the French national railway SNCF. Through Govia,
Go-Ahead operates three rail franchises — Southeastern, Southern and London
Midland. The company is the UK’s busiest rail operator, carrying almost 30%
of rail passengers.
Go-Ahead also provides car parking services through its Meteor operation,
which includes the ’Meet & Greet’ and ’Pink Elephant’ brands. Other activities
include limited ground handling services at Terminal 1, Heathrow. In December
2009, Go-Ahead announced that it had sold the majority of its ground handling
and cargo operations at Heathrow to Dnata, a supplier of air travel services,
and most of its ground handling operations outside of Heathrow to Servisair
UK Ltd.
Outside of the UK, the Go-Ahead Group has formed a new joint venture
company with Cook-Illinois Corp, a Chicago-based school bus operator, to
pursue potential opportunities for school bus contracts in North America.
In the year ending 27th June 2009, the Go-Ahead Group PLC reported an
increase of 6.7% in turnover to £2.35bn and a decline in pre-tax profit of 59.3%
to £42.9m. The bus division contributed £584.7m to group turnover in 2009, a
4.8% increase compared with 2008. Go-Ahead’s half-year report for the
6 months ending 2nd January 2010 showed a turnover of £1.1bn and a pre-tax
profit before amortisation of £50m.
The Stagecoach Group’s UK rail business includes the operation of the South
Western and East Midlands rail franchises and the operation, in a joint venture
with the Virgin Rail Group, of the West Coast long-distance rail franchise. The
Group also runs: Supertram, a 29-kilometre (km) light rail network based in
Sheffield; and the Manchester Metrolink tram network under a 10-year
contract with Greater Manchester Passenger Transport Executive.
Outside of the UK, Stagecoach’s Coach USA and Coach Canada businesses
provide transport services in North America. These businesses include the
budget coach brand, megabus.com, commuter/transit services, inter-city
services, tour, charter, sightseeing and school bus operations. The company
operates a fleet of around 2,700 vehicles in North America.
In the year ending 30th April 2010, Stagecoach Group PLC achieved a turnover
of £2.16bn and a pre-tax profit of £125.9m, after exceptional items. In 2009,
turnover was £2.1bn with a pre-tax profit of £170.8m. According to the Group’s
Annual Report and Accounts 2010, the UK rail business contributed £1.03bn to
group turnover in 2010 and the UK bus division £875.4m.
Accor UK
Accor UK Ltd is part of Accor SA, a large French multinational corporation
whose main operation is running chains of hotels and restaurants. Accor SA
has more 4,100 hotels in 90 countries, nearly 500,000 rooms and some 145,000
employees. The company’s hotel brands range from the luxury to the economy
and include the Sofitel, Pullman, Novotel, Mercure, Suitehotel, Ibis, All Seasons,
Etap Hotel and Formule 1 brands. Accor currently has 143 hotels based in the
UK.
In the year ending 31st December 2008, De Vere Hotels & Leisure Ltd reported
a turnover of £159.3m and a pre-tax loss of £10.9m. In the previous 15-month
period ending 31st December 2007, De Vere Hotels & Leisure Ltd reported a
turnover of £240.6m and a pre-tax profit of £486.8m (includes exceptional
income of £403.9m).
In the year ending 31st December 2008, Hilton International Hotels (UK) Ltd
reported a turnover of £59.4m up from £58.1m in 2007. The company reported
a pre-tax loss of £444.3m in 2008 and a pre-tax loss of £120.6m in 2007.
In the year ending 31st December 2009, InterContinental Hotels Group PLC
reported a turnover of $1.54bn down from $1.9bn in 2008. A pre-tax loss of
$64m was announced for 2009 compared with a pre-tax profit of $316m in
2008.
In the year ending 28th March 2009, turnover was £129.6m down from
£130.1m in 2008. The company reported a pre-tax loss of £4.1m in 2009,
compared to a profit of £4.5m in 2008.
In the year ending 26th February 2009, Premier Inn Hotels Ltd reported a
turnover of £33.8m and a pre-tax loss of £28m. In 2007, turnover was £159.5m
and a pre-tax profit was £409.2m.
Thistle Hotels
Thistle Hotels is part of Guoman Hotel Management (UK) Ltd and operates 33
3- and 4-star hotels across the UK including 12 hotels in London. Guoman
Hotels also operate four deluxe hotels in central London — The Charing Cross,
The Cumberland, The Royal Horseguards and The Tower.
In the year ending 31st December 2009, Travelodge Hotels Ltd recorded a
turnover of £294.4m up from £287m in 2008. The company made a pre-tax
profit of £66.5m in 2009 compared to £8.7m in 2008.
In the year ending 31st December 2008, turnover for Bourne Leisure Group Ltd
was £90.7m compared with £95.6m in 2007, while pre-tax profit was £15.9m
in 2008, down from £17.9m in 2007.
Holidaybreak PLC
Holidaybreak PLC is an education, leisure and activity travel group. The group
operates in the UK and other major European markets and its activities cover
educational and activity trips for UK schoolchildren, short breaks in the UK and
Europe, worldwide adventure holidays and mobile-home and camping
holidays on sites throughout Europe.
In the year ending 30th September 2009, Holidaybreak PLC had a turnover of
£473.4 up from £455.1m in 2008. Pre-tax profit was £5.4m in 2009, down from
£23.4m in 2008.
The interim results for Holidaybreak PLC for the 6 months ending
31st March 2010 show a turnover of £150.2m and a pre-tax loss (statutory) of
£20m. For the corresponding period in 2009, the company reported a turnover
of £153.2m and a pre-tax loss of £36.6m.
In the year ending 31st December 2009, the Hoseasons Group Ltd had a
turnover of £46.1m, up from £43.4m in 2008, and a pre-tax profit of £6.6m
compared with a pre-tax loss of £6.5m in 2008.
MARKETING ACTIVITY
The leading bus and coach operator by main media advertising expenditure
was National Express, which spent £3.7m in the year ending March 2010
equating to more than a third (37.4%) of the total. Of the other major bus
operators, FirstGroup spent £215,000 and Stagecoach £196,000.
National Express
Group 1,671 1,393 2,151 3,242 3,726
Coach Holidays.Com n.a n.a n.a 134 652
Glenton n.a n.a n.a 136 372
David Urquhart 656 511 525 453 282
Network West
Midlands n.a n.a n.a 463 282
London Transport/TfL 667 7,568 2,886 1,244 268
FirstGroup 209 676 375 213 215
Travelsphere 916 848 198 426 196
Stagecoach n.a 145 781 321 196
WA Shearings 1,294 792 356 180 102
Others 5,511 4,099 4,735 4,049 3,657
Table continues...
...table continued
Train Operators
Main media advertising expenditure by train operators amounted to some
£27.9m in the year ending March 2010, a reduction of 2.4% on 2009 and the
first annual fall since at least 2006. This decline occurred despite leading
advertisers such as Virgin Trains, Network Rail, Great Rail Journeys and Eurostar
all increasing their expenditure in the latest year. A sharp reduction on main
media advertising by Heathrow Express contributed to this slide and both East
Midlands Trains and South Eastern spent less in the year to March 2010
compared to the previous year.
Table continues...
...table continued
% change
year-on-year - 0.8 12.3 2.5 -2.4
Hotels
Main media advertising expenditure by hotels in the UK has increased on a
yearly basis since 2006 and in the year ending March 2010 it rose by a further
3.7% to £28.4m. The two low-cost hotel chains, Premier Inn and Travelodge,
were the heaviest spenders on main media advertising expenditure in the
latest year, followed by the Holiday Inn and Warner Leisure Hotels. Together
these four chains accounted for half of the hotel sector expenditure on main
media advertising.
All of the other hotels detailed in Table 5.17 reduced their level of main media
advertising expenditure in 2009/2010, with the sharpest fall being reported by
the Mercure chain, which reduced its outlay by almost 80% to £234,000.
% change
year-on-year - 8.1 9.7 6.7 3.7
Holiday Camps
In the year ending March 2010, main media advertising expenditure by holiday
camps and resorts dropped by more than a quarter (27.9%) to £7.1m. The three
leading advertisers in this sector, Haven, Center Parcs and Butlins, all cut back
on their advertising expenditure during the year, with the sharpest fall being
a 52% reduction to £1.3m by Butlins. The fourth-largest advertiser, Pontins,
increased its advertising outlay by over 70% to £508,000.
BUYING BEHAVIOUR
Adults aged 35 to 44 years and those in the AB social grades account for the
largest shares of the UK domestic travel and tourism market. According to the
UKTS, in 2009, those aged 35 to 44 accounted for almost a quarter of
expenditure, trips and bed nights, with the 45 to 54 years age group accounting
for the next highest shares, in terms of percentage penetration, within these
three measures. Typically, the share of expenditure, trips and bed nights tends
to increase up to 35 to 44 years and decline thereafter.
There is a clear association between social grade and domestic travel and
tourism with the AB social grade accounting for between 33.8% and 38.7% of
expenditure, trips and bed nights. Social grades D and E make the smallest
contribution to expenditure and trips, while social grade C2 had the lowest
percentage penetration of bed nights at 16.6%.
Social Grade
AB 38.7 35.8 33.8
C1 32.8 32.1 31.5
C2 15.3 16.6 16.6
DE 13.3 15.6 18.1
Total †100.0 †100.0 100.0
Age appears to affect the numbers of holidays taken in the UK, particularly as
the number of holidays taken increases. The proportion of holidays taken by
adults aged 65 years and over, for example, increased from 20.5% of the total
for one holiday to 42.5% for three or more holidays, By contrast, the
proportion of holidays taken by adults aged up to 54 years tends to decrease
as the numbers of holidays taken rises.
Adults in the B and C1 social grades are the most significant for the domestic
holiday market, in that they accounted for more than half (54.9%) of adults
who took one holiday in the British Isles in the year ending September 2009
and two-thirds (66.6%) of all adults who took three or more holidays. Those
in the A and E social grades accounted for the smallest percentages of adults
taking holidays in the British Isles.
Regionally, adults residing in the South East accounted for the largest
proportion of those taking one or two holidays in Great Britain, while adults
in the North West accounted for the largest percentage taking three holidays
or more. By contrast, the smallest percentages of adults taking one or two
holidays are in Wales, while the smallest percentage penetration taking three
holidays or more are those in the North.
Three or
One Two more
Table continues...
...table continued
Three or
One Two more
Region
Scotland 8.7 6.8 6.8
North West 11.0 13.8 18.3
North 3.6 5.7 1.8
Yorkshire and Humberside 8.2 8.0 10.2
East Midlands 9.3 12.5 6.0
East Anglia 4.0 4.4 5.1
South East 19.4 20.2 16.0
Greater London 9.2 7.9 12.5
South West 11.5 4.3 9.1
Wales 3.5 3.6 5.1
West Midlands 11.6 13.6 9.1
Table continues...
...table continued
Region (cont.)
Greater London 34.9
South West 36.5
Wales 34.9
West Midlands 34.9
In terms of age, penetration rates for taking four or more air trips for holiday
or personal reasons and for between one and four business trips tend to peak
among adults aged 25 to 34 years and are lowest among adults aged 15 to 19
and 65 years and over.
Social grade is clearly associated with the number of flights taken with, for
example, 17% of adults in social grade A having taken at least one flight for
holiday or personal reasons compared with 6.5% of adults in social grade E.
Regionally, the highest penetration rates for taking air trips are in Scotland,
with 18.8% of adults taking at least one flight for holiday or personal reasons
and 3% of adults taking between one and four business trips. The lowest
penetration rate for adults taking at least one flight was in Yorkshire and
Humberside at 7.3% and the lowest penetration rate for taking between one
to four business flights was in East Anglia at 0.9%.
Holiday/Personal Reason
Four or Business
One Two Three more Trips (1-4)
Table continues...
...table continued
Holiday/Personal Reason
Four or Business
One Two Three more Trips (1-4)
Region (cont.)
Greater London 5.1 3.3 1.8 0.9 1.5
South West 5.7 1.8 1.1 1.6 1.1
Wales 4.7 1.2 0.6 2.5 1.4
West Midlands 3.9 2.4 1.5 1.2 1.2
The rise in the number of trips taken in the first 3 months of 2010 was mostly
due to increases in the number of trips made for business purposes, which rose
by 7.3% to 4.4 million. There was also a 4.6% increase to 3.3 million in trips to
visit friends and relatives. By contrast, trips taken for holiday purposes fell from
7.6 million in the first quarter of 2009 to 7.5 million in the first quarter of 2010.
In light of these early market indicators, Key Note forecasts that the UK
domestic travel and tourism industry will show further modest growth in 2010
with expenditure, trips and bed nights projected to rise by 1%, 2% and 0.8%,
respectively.
Note: figures relate to trips of at least 1 night but fewer than 60 days.
23,200
23,100
23,000
22,900
22,800
22,700
22,600
22,500
22,400
22,300
22,200
22,100
22,000
2010 2011 2012 2013 2014
Note: figures relate to trips of at least 1 night but fewer than 60 days.
DEFINITION
The UK outbound travel and tourism market can be measured in terms of
expenditure, number of trips and number of bed nights. The official source of
this information is National Statistics’ International Passenger Survey (IPS),
which covers overseas trips by UK residents for periods of less than 1 year,
including day trips. This definition differs from that used by the World Tourism
Organization (UNWTO), which excludes day trips.
The outbound travel and tourism market can be divided in a number of ways
for marketing purposes. The four most important are:
• purpose of trip
• country of destination
• mode of transport
• type of arrangement.
Purpose of Trip
Outbound tourism divides broadly between leisure trips and business trips.
Leisure trips subdivide into independent holidays; inclusive or package
holidays; visiting friends and relatives (VFR); shopping; and leisure travel for
other purposes, such as watching sport or weddings. The division between
travel for leisure and travel for business is fundamental to the branding, pricing
and promotion of many travel services.
Country of Destination
Destination is defined as the main country visited, or the country in which the
visitor stayed the longest during his or her trip. Visits to small nation states and
trips involving transit through other countries are sometimes understated in
the official figures. In addition, the destinations of cruise passengers, who
often visit many countries, may be grouped under the heading ‘rest of world’.
• Latin America — Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Cuba,
the Dominican Republic, Ecuador, El Salvador, Guatemala, Haiti, Honduras,
Mexico, Nicaragua, Panama (including the Canal Zone), Paraguay, Peru,
Uruguay and Venezuela.
• Middle East — Bahrain, Iran, Iraq, Israel, Jordan, Kuwait, Lebanon, Oman,
Qatar, Saudi Arabia, Syria, United Arab Emirates and Yemen.
Mode of Transport
Mode of transport is defined as the main method of transport used for the trip,
for example, air, sea (ferry), Eurotunnel Shuttle or Eurostar. Ferry and Shuttle
passengers are often subdivided by type of vehicle, e.g. car, bus, motorcycle,
etc. Almost all air and Eurostar passengers are travellers on foot.
Type of Arrangement
The main division by type of arrangement is between holidays that are
organised independently and those that are organised by tour operators, i.e.
inclusive or package holidays. Internet booking services and low-cost air travel
have increased the opportunities for independent travel since 2005.
KEY TRENDS
The UK outbound travel and tourism market was significantly affected by the
economic downturn in 2009. Expenditure by outbound travellers and tourists
fell to its lowest level since 2004; the number of outbound trips made fell to
its lowest level since 2001; and the number of bed nights stayed was at its
lowest since 2002.
All sectors of the outbound travel and tourism market were affected by the
economic instability in 2009 including holidays, which accounted for almost
two-thirds (65.7%) of outbound trips. Most affected within the holiday sector
were inclusive trips, which declined by 19% in 2009. The number of
independently arranged holiday trips declined by a smaller 13.2%.
Spain and France remain the two main destinations for UK outbound travellers
and tourists, together accounting for more than a third (36.4%) of all
outbound trips made in 2009. In 2009, the number of outbound trips made to
each of the 20 most popular destinations by UK travellers all fell compared to
2008 levels.
Despite the recession, the number of passengers taking cruises from the UK
increased in 2009, although the rate of annual expansion was at its lowest since
2005. The Mediterranean remains the most popular destination for both UK
port cruises and fly cruises accounting for 592,000 or 38.6% of the cruise
passenger total in 2009.
Outbound travel and tourist trends in the first half of 2010 suggest that further
declines in trip numbers and expenditure for 2010 as a whole are likely. All
sectors of the outbound market remain vulnerable to the continuing adverse
market conditions.
The eruption of the volcano in Iceland in April 2010 caused the outbound travel
and tourism industry to incur considerable costs. Thomas Cook Group PLC, for
example, has indicated that the volcanic ash cloud cost the company a total of
around £70m.
MARKET SIZE
The UK outbound travel and tourism market encountered its most difficult year
for many years in 2009, as the recession and its effects led to sharp falls in
outbound tourism expenditure, the numbers of trips made and the numbers
of bed nights stayed.
Outbound visitor expenditure fell by 14% in 2009 to £31.69bn. It was the first
annual decline in outbound visitor expenditure in the last decade and the
lowest level of outbound expenditure since 2004. In constant expenditure
terms (1995 prices), outbound visitor expenditure in 2009 was 20.9% lower
than in 2008 and 16.9% down on the 2000 equivalent.
In line with the falls in outbound visitor expenditure and trips, there was also
a 12.6% drop to 614.5 million in the number of bed nights spent. The 2009
total was the lowest since 2002 when 595.2 million bed nights were recorded.
Average expenditure per trip did increase by 1.3% in 2009 to £540.72, from
£533.80 in 2008 and the average length of stay rose from 10.2 nights to 10.5
nights. Average expenditure per bed night dipped from £52.38 in 2008 to
£51.58 in 2009.
† — excluding fares
Note: figures relate to trips of less than 1 year, including day trips.
37,000
36,500
36,000
35,500
35,000
34,500
34,000
33,500
33,000
32,500
32,000
31,500
31,000
2005 2006 2007 2008 2009
† — excluding fares
Note: figures relate to trips of less than 1 year, including day trips.
By Purpose of Trip
The holiday market is by far the largest segment of the outbound travel and
tourism industry. In 2009, 65.7% of outbound trips made were for holiday
purposes, a percentage which has remained fairly stable since 2005.
Outbound trips made for holiday purposes fell by 15.5% to 38.5 million in 2009
compared to the overall decline of 15.1% in the total number of trips made.
The above-average decline in the total holiday market was due to the
continuing contraction of the inclusive holiday market, which has fallen
steadily since 2005. In 2009, the number of inclusive holiday trips made
decreased by a further 19% compared to a fall of 13.2% to 24 million in the
number of independently organised trips.
The numbers of trips made for other purposes, which include VFR, trips for
business purposes and trips made for miscellaneous other reasons, fell for the
third successive year in 2009 with the total for that year down by 14.3% to 20.1
million. Within this broad category, the number of VFR trips fell by 6.5% to
11.6 million, the number of trips made for business purposes fell by 22.8% to
6.9 million and the number of trips made for other purposes contracted by
24.2% to 1.6 million.
% change
2005 2006 2007 2008 2009 2008-2009
Holidays
Independent 25,182 26,336 26,763 27,617 23,985 -13.2
Inclusive 18,993 18,951 18,674 17,914 14,507 -19.0
Total holidays 44,175 45,287 45,437 45,531 38,492 -15.5
The largest proportion of trips to all four main world regions is made for
holiday purposes although there is some variation around this measure. For
example, whereas just 22.8% of holiday trips to EU Europe were inclusive tours,
44.9% were independent holidays.
Holidays
Ind Inc VFR Business Other Total
Trips
North
America 1,557 723 735 572 65 3,652
EU Europe 19,041 9,659 7,621 4,840 1,235 42,396
Non-EU
Europe 1,239 1,102 582 560 65 3,548
Other
countries 2,147 3,023 2,654 915 278 9,017
Total †23,985 14,507 11,592 6,887 1,643 †58,614
% of Total by Purpose
North
America 42.6 19.8 20.1 15.7 1.8 100.0
EU Europe 44.9 22.8 18.0 11.4 2.9 100.0
Non-EU
Europe 34.9 31.1 16.4 15.8 1.8 100.0
Other
countries 23.8 33.5 29.4 10.1 3.1 †100.0
Table continues...
...table continued
Holidays
Ind Inc VFR Business Other Total
% of Total by Region
North
America 6.5 5.0 6.3 8.3 4.0 6.2
EU Europe 79.4 66.6 65.7 70.3 75.2 72.3
Non-EU
Europe 5.2 7.6 5.0 8.1 4.0 6.1
Other
countries 9.0 20.8 22.9 13.3 16.9 15.4
Total †100.0 100.0 †100.0 100.0 †100.0 100.0
Ind — independent
Inc — inclusive
VFR — visiting friends and relatives
† — does not sum due to rounding
Note: figures are provisional and relate to trips of less than 1 year, including day trips;
totals may not sum due to rounding.
By Destination
Spain and France remain by far the two main destinations for UK outbound
travellers and tourists, accounting in 2009 for 19.8% and 16.7% respectively of
all outbound trips made. However, the number of outbound trips made to
Spain and France were both lower in 2009 compared to trips made in 2008. In
percentage terms, the largest falls in outbound trip numbers in 2009 were
recorded for Portugal (-28.5%), Canada (-25.7%) and Switzerland (-24.9%). The
smallest falls involved trips to Poland (-1.5%) and the Caribbean (-5.6%). The
numbers of trips made to Spain and France were both at their lowest levels in
2009 compared to the rest of the review period.
%
change
year-on-
2005 2006 2007 2008 2009 year
Note: figures relate to trips of less than 1 year, including day trips.
By Mode of Transport
The majority of UK outbound travellers and tourists fly to their destinations,
as the difficulty of reaching some locations by means other than via air puts
this particular mode of travel in a monopoly situation for many destinations.
In 2009, the number of outbound trips undertaken by air fell by 16.7% to 46.7
million, compared to a smaller 7.8% fall to 12 million in the number of
outbound trips made by sea and tunnel. It is possible that some of the
outbound trips made by sea and tunnel are to France or other nearby countries
such as Belgium. Trips to countries further away, such as Spain, would almost
invariably involve air travel and would have contributed to the greater level
of decline in the outbound air travel market.
Notes: 2009 figures are provisional and may not sum due to rounding. Figures relate to
trips of less than 1 year, including day trips.
By Type of Arrangement
The increase in the proportion of outbound travellers and tourists who choose
to travel independently rather than go with organised or inclusive tours
continues. In 2009, the percentage of outbound travellers (all modes of
transport) preferring the independent option rose to 62.3% compared to
60.7% in 2008 and 57% in 2005. Around this average figure, the proportion of
outbound sea and tunnel travellers who made their own arrangements jumped
to 67.8% in 2009 from 63.4% in 2008, while the percentage of air travellers
who travelled independently edged up to 60.9%. The number of outbound air
travellers who travelled on inclusive tours fell yearly between 2005 and 2009,
with the 2009 total of 11.9 million a 25.4% reduction on 2005 figures.
% of Total
Independent 55.6 58.0 57.8 60.0 60.9
Inclusive 44.4 42.0 42.2 40.0 39.1
Total 100.0 100.0 100.0 100.0 100.0
% of Total
Independent 63.1 59.0 63.6 63.4 67.8
Inclusive 36.9 41.0 36.4 36.6 32.2
Total 100.0 100.0 100.0 100.0 100.0
Table continues...
...table continued
% of Total
Independent 57.0 58.2 58.9 60.7 62.3
Inclusive 43.0 41.8 41.1 39.3 37.7
Total 100.0 100.0 100.0 100.0 100.0
The most popular destination for UK port cruises was the Mediterranean,
which attracted 190,000 passengers in 2009 or 32% of the total. The
Mediterranean was also the most popular location for fly cruises, accounting
for 402,000 or 42.8% of the total in 2009.
Fly Cruises
Mediterranean 263 322 388 439 402
Caribbean/Bahamas/Bermuda 202 195 217 241 262
Atlantic Islands 46 35 36 38 41
West Coast US/Mexico/Hawaii/ 34 35 33 34 37
Panama Canal
Indian Ocean/Red Sea/Persian n.a 40 40 18 33
Gulf
Transatlantic – repositioning§ 19 25 34 42 31
Far East/Australia 15 15 22 26 29
Alaska 26 29 32 31 25
Round-the-world and sectors± 10 13 14 13 25
Norway (Pre 2009 in Baltic) n.a n.a n.a n.a 18
South America 7 14 12 8 11
Scandinavia/Baltic 14 15 19 19 10
East Coast n.a n.a n.a 8 8
Other areas 29 12 18 4 8
Charter 3 3 2 1 1
Table continues...
...table continued
Table 6.8 confirms that the main destination for UK cruise passengers in 2009
(including those on port cruises and those on fly cruises) was the
Mediterranean, with 592,000 passengers — a 2.3% reduction on 2008.
Northern Europe was the next most popular destination in 2009 with 296,000
cruise passengers, a 19.8% rise on 2008, while 275,000 people visited the
Caribbean, up 7.8% on 2008.
Table continues...
...table continued
SUPPLY STRUCTURE
The principal organisations involved in the supply side of the UK outbound
travel and tourism market are the tour operators, which include the two
market leaders Thomas Cook Group PLC and TUI Travel PLC. In addition to tour
operators, other leading suppliers to the outbound travel and tourism market
comprise retail travel agents, airlines, ferry operators and the Channel Tunnel
services — Eurotunnel Shuttle and Eurostar.
Tour Operators
According to the Travel Association (ABTA) it represented 900 tour operations
throughout the British Isles in 2009. This figure suggests that the number of
package holidays sold per operator averaged around 16,119 in 2009, a 28.9%
reduction on 2008.
ABTA-registered
tour operators 850 850 900 790 900
Outbound package
holidays sold (000) 18,993 18,951 18,674 17,914 14,507
Average number of
package holidays
sold per operator 22,344 22,295 20,749 22,676 16,119
% change
year-on-year - -0.2 -6.9 9.3 -28.9
Travel Agents
According to ABTA it currently has 1,351 members with 5,700 outlets. Members
include travel agents, tour operators and support services right across the
spectrum from small family-owned businesses to larger tour operators. Key
Note estimates that the total number of travel agents in the UK (including
non-members of ABTA) stood at around 6,900 in 2010, a figure unchanged on
2009.
† — Going Places travel agencies mostly rebranded as Thomas Cook with effect from
February 2008
‡ — includes travel shops and holiday superstores, excludes in-store branches in
supermarkets
8,100
8,000
7,900
7,800
7,700
7,600
7,500
7,400
7,300
7,200
7,100
7,000
6,900
6,800
2006 2007 2008 2009 2010
Airlines
UK airlines had 1,010 aircraft in service in 2009, an increase of 43 over 2008.
British Airways is the largest UK carrier by aircraft numbers with 233 in service
in 2009, a total which has remained fairly stable since 2005. easyJet, by contrast,
continues to increase its aircraft fleet and in 2009, a further 16 aircraft were
added, bringing the total up to 169. Flybe, the third-largest airline by aircraft
numbers, reduced its fleet to a 3-year low of 71 in 2009 and Thomson Airways,
the fifth-largest airline by aircraft in service, reduced its total by 12 to 64.
Table continues...
...table continued
UK airlines had available seat capacity of 366 million kilometres (km) in 2009,
6.2% less than the capacity of 390.2 million km reported in 2008. In 2009, a
total of 297.8 million km (81.4%) of the available seats were used compared
to 308.7 million kilometres (79.1%) of available seats used in 2008.
British Airways, which operate transatlantic flights, accounted for the highest
numbers of seat kilometres available and seat kilometres used in 2009 at 38.9%
and 37.4% of each total, respectively. Virgin Atlantic Airways, which also
operates transatlantic flights, and easyJet, which operates mostly short-haul
flights within the UK and in Europe, accounted for the second and third highest
numbers of seat kilometres available and seat kilometres used in 2009.
The highest seat utilisation rates are found among the charter airlines with
Thomas Cook Airlines top after reporting 92% of available seat capacity used,
followed by Thomson Airways with 90.1%. The lowest seat utilisation rate
among the companies featured in Table 6.12 was recorded by the low-cost
scheduled carrier Flybe at 60.6%.
% of Total
British Airways PLC 142,217 38.9 111,327 37.4 78.3
easyJet Airline
Company Ltd 54,341 14.8 45,222 15.2 83.2
Virgin Atlantic Airways
Ltd 49,756 13.6 39,282 13.2 78.9
Thomson Airways Ltd 35,548 9.7 32,038 10.8 90.1
Thomas Cook Airlines
Ltd 29,299 8.0 26,950 9.0 92.0
Monarch Airlines Ltd 18,555 5.1 15,510 5.2 83.6
BMI Group Ltd 13,742 3.8 9,598 3.2 69.8
Jet2.Com Ltd 6,564 1.8 5,359 1.8 81.6
Flybe Ltd 5,449 1.5 3,304 1.1 60.6
Flyglobespan† 4,922 1.3 3,947 1.3 80.2
Others 5,607 1.5 5,258 1.8 93.8
MAJOR PLAYERS
This section profiles the leading companies in the outbound travel and tourism
market. Two of these leading companies, Thomson Airways Ltd and TUI Travel
PLC, have already been profiled in Chapter 4 — Competitive Structure.
Tour Operators
Thomas Cook Group PLC, through its subsidiaries, is principally engaged in the
provision of leisure travel services. It has five geographic operating divisions —
UK and the Republic of Ireland, Continental Europe, Northern Europe, North
America and Airlines Germany. The company has a fleet of 95 aircraft, and a
network of approximately 3,400 owned and franchised travel stores. The
Group operates in 21 countries including India and Egypt.
Thomas Cook UK and Ireland is the second-largest leisure travel group in the
UK with around 19,000 employees. It operates a fleet of 45 aircraft, has a
network of around 800 high street stores (Thomas Cook and Going Places),
travel and tourism websites (www.thomascook.com and www.mytravel.com)
and some of the leading travel brands including Airtours, Club 18-30, Bridge,
Cresta, Cruise Thomas Cook, Direct Holidays, Flexibletrips, flythomascook.com,
Latitude, Manos, Neilson, Panorama, Style Holidays, Sunset, Sunworld
Holidays, Thomas Cook, Thomas Cook Signature, Thomas Cook Sport and
Tradewinds. The company’s airline, Thomas Cook Airlines, flies from various
regional airports to destinations worldwide.
In April 2010, the Thomas Cook Group announced that it had acquired Think
W3 Ltd, the owner of Essential Travel, a leading UK online provider of
travel-related products including travel insurance, airport parking and airport
hotels.
In July 2010, the Thomas Cook Group announced that it had agreed to acquire
Öger Tours GmbH, a leading German tour operator specialising in package
holidays to Turkey.
In the year ending 30th September 2009, turnover at Thomas Cook Group PLC
was £9.27bn, a 14.3% increase on 2008. The company reported a profit before
tax of £56.1m in 2009 compared to a pre-tax profit of £48.4m in 2008.
In the 6 months ending 31st March 2010, Thomas Cook PLC reported a turnover
of £3.31bn, a fall of 5% compared to the corresponding period in 2009. A
pre-tax loss of £252.2m was announced for the 6 months ending
30th March 2010, compared to a pre-tax loss of £309m in 2009.
Turnover for easyJet Airline Company Ltd increased to £2.69bn in the year
ending 30th September 2009, up from £2.34bn in 2008. The company reported
a pre-tax loss of £156.6m in 2009 following a pre-tax loss of £30.8m in 2008.
In the 6 months ending 31st March 2010, easyJet Airline Company Ltd
announced a turnover of £1.17bn, a 13.4% increase on the comparable period
in 2009, and a pre-tax loss of £78.7m compared to a pre-tax loss of £116.5m in
2009.
In 2009, Monarch Airlines carried 6.1 million passengers, of which 3.7 million
travelled on scheduled flights and 2.4 million on non-scheduled services.
Monarch currently operates a fleet of 31 aircraft and these serve over 100
destinations worldwide.
In the year ending 31st October 2009, Monarch Airlines Ltd recorded a turnover
of £652.8m, up from £643m in 2008. A pre-tax loss of £19.2m was announced
for 2009 compared with a pre-tax profit of £70,000 in 2008.
Thomas Cook Airlines Ltd is part of Thomas Cook Group PLC and was formed
in March 2008 by the merger of Thomas Cook Airlines UK Ltd and MyTravel
Airways. Thomas Cook Airlines serves holiday resorts in Europe, North
Africa, Asia, North America and the Caribbean. In 2009, the airline carried 8.2
million passengers, down from 8.3 million in 2008. It has a fleet of around 45
aircraft and flies to some 95 destinations.
In the year ending 30th September 2009, Thomas Cook Airlines Ltd reported a
turnover of £989.1m and a pre-tax loss of £29.6m. This compares to a turnover
of £722.1m and a pre-tax profit of £28.3m in the previous 48-week period
ending 30th September 2008.
MARKETING ACTIVITY
Main media advertising expenditure by companies engaged in the outbound
travel and tourism market amounted to £82.6m in the year ending March 2010.
This represented a fall of 6.7% from the corresponding period in 2009 and was
16.3% down on the amount spent in 2007. Between the years ending March
2009 and 2010, main media advertising expenditure by overseas tour operators
fell by 5.5% and declined by 25.8% for online travel agents. In contrast,
advertising expenditure for travel agents increased by 16.1%.
Tour Operators
Main media advertising expenditure by overseas tour operators amounted to
£48.4m in the year ending March 2010. The leading tour operator by main
media advertising in 2009/2010 was the TUI PLC-owned Thomson, which spent
£7.6m, a 20.3% increase on the previous year. Virgin Holidays had the
second-highest level of main media advertising in the year ending March 2010
with £5.4m, a 10.9% increase on 2009, and the TUI PLC-owned company, First
Choice, had the third-highest level of main media advertising expenditure at
£3.5m, a 44.5% reduction on 2009.
Of the other companies included in Table 6.14, the majority increased their
expenditure on main media advertising in the year ending March 2010.
Travel Agents
Main media advertising expenditure by travel agents in the year ending March
2010 was boosted by higher levels of spending by Thomas Cook, which
increased its outlay by a third (33.4%) to 7.2m. Thomas Cook advertising
campaigns during this period included those which featured Jamie and Louise
Redknapp.
Three other travel agents — Barrhead Travel, Teletext and Co-op Travel —
spent more than £1m on main media advertising in 2010. Barrhead Travel,
which spent £1.6m, owns websites such as Flightsdirect.com.
BUYING BEHAVIOUR
According to the Kantar Media’s Target Group Index (TGI) survey for the year
ending September 2009, the proportion of women who took three or more
holidays abroad substantially exceeded the proportion of men who took this
number of holidays abroad at 54.4% to 45.6%. For one or two holidays, the
proportion of men taking holidays exceeded the proportion of women.
In general, the number of holidays taken abroad tended to increase with age.
The TGI survey found, for example, that whereas the 55 years and over age
groups accounted for 27.4% of adults who took one holiday abroad, they
accounted for 41.1% of adults who took two holidays abroad and 47% of
adults who took three or more holidays abroad.
In terms of social grade, groups B and C1 were the two most important to the
outbound travel and tourism market. In the year ending September 2009, 60%
of adults in these social grades took one holiday abroad, 60.2% took two
holidays abroad and 72% took three or more holidays abroad.
Regionally, the South East and Greater London had the greatest percentage
penetration in the outbound travel and tourism market. The third-largest
market for outbound travellers was the North West.
Three or
One Two more
Table continues...
...table continued
Three or
One Two more
Region (cont.)
Greater London 14.7 18.1 20.2
South West 7.9 11.1 12.0
Wales 3.7 1.6 1.9
West Midlands 11.3 9.4 5.0
According to the IPS, in the first 3 months of 2010, the number of visits abroad
by UK residents fell by 10.1% to 10.1 million compared with the corresponding
period in 2009 and expenditure by overseas residents on visits abroad was
down by 10.6% to £6bn. This downward trend in the outbound travel and
tourism market continued into the second quarter of 2010 as the number of
visits taken abroad by UK residents fell by 13% to 56.1 million in the 12-month
period ending May 2010, compared with the equivalent 12-month period in
2009.
If these early year trends in the outbound travel and tourism market are
maintained for the whole of 2010, Key Note forecasts that further sharp falls
in outbound expenditure, trips and bed nights are likely to feature, with
expenditure projected to fall to around £29bn in 2010, an 8.5% decline on 2009
figures; and visits down by some 10.1% to 52,700; while bed nights are forecast
to be 9.7% lower at 555 million. Thereafter and up to 2014, the market is
expected to recover, although much will depend on the buoyancy of the UK
economy, as well as a wide range of other factors and influences which impact
consumer demand for outbound travel and tourism.
† — excluding fares
Note: figures relate to trips of less than 1 year, including day trips.
DEFINITION
The inbound market, in common with other tourism markets, is measured in
terms of expenditure, number of trips and number of bed nights. The official
source of this information is National Statistics’ International Passenger Survey
(IPS), which covers trips to the UK by overseas residents for periods of less than
1 year, including day trips. This definition differs from that used by the World
Tourism Organization (UNWTO), which excludes day trips. Like the outbound
market, the inbound travel and tourism market can be divided in a number of
ways. The four most important are:
• purpose of trip
• country of origin
• mode of transport
• type of arrangement.
By Purpose of Visit
Inbound tourism divides broadly between leisure trips and business trips.
Leisure trips subdivide into: holidays; visiting friends and relatives (VFR);
shopping; and leisure travel for other purposes, such as watching sport or
weddings.
Country of Origin
Origin is defined as the visitor’s main country of residence. The regional
categorisations used by the official statistics are the same as those for the
outbound market, but they are reproduced here for convenience:
• Latin America — Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Cuba,
the Dominican Republic, Ecuador, El Salvador, Guatemala, Haiti, Honduras,
Mexico, Nicaragua, Panama (including the Canal Zone), Paraguay, Peru,
Uruguay and Venezuela.
• Middle East — Bahrain, Iran, Iraq, Israel, Jordan, Kuwait, Lebanon, Oman,
Qatar, Saudi Arabia, Syria, United Arab Emirates and Yemen.
By Mode of Transport
Mode of transport is defined as the main method of transport used for the trip,
such as air, sea (ferry), Eurotunnel Shuttle or Eurostar. Ferry and Shuttle
passengers are often subdivided by type of vehicle, e.g. car, bus, motorcycle,
etc. Almost all air and Eurostar passengers are foot passengers.
By Type of Arrangement
The main division by type of arrangement is between holidays that are
organised independently and those that are organised by tour operators, i.e.
inclusive or package holidays. Internet booking services and low-cost air travel
have increased the opportunities for independent travel since 2005.
KEY TRENDS
The UK inbound travel and tourism market was affected by the recession in
2009, with falls recorded in the number of trips made and bed nights stayed.
Expenditure by inbound visitors did, however, continue to rise. Trips for holiday
purposes remained strong in 2009 with a 4.6% increase from 2008 levels being
recorded. Inbound trips for business purposes, however, fell by a 19% to 6.6
million trips in 2009, which was the lowest total for more than a decade.
France continues to be the main source for inbound trips to the UK, accounting
for 12.7% of all trips made in 2009. Of the 14 leading source markets for the
UK inbound market, France and Spain were the only countries from which
higher numbers of visitors arrived in 2009.
Air transportation remains the most popular mode of transport for inbound
visitors to the UK, although in 2009, visits by air were the most affected by the
recession. The number of inbound trips made by air fell by 8.1% in 2009
compared to a decline of 0.7% in the number of visits made by sea and a 0.7%
fall in the numbers made via the Channel tunnel.
The trend for overseas visitors to the UK to travel independently, rather than
on inclusive or package holidays, continued in 2009, with 83.5% of all inbound
visits being independently arranged, up from 79.3% in 2007.
MARKET SIZE
2009 was a difficult year for the UK travel and tourism inbound market.
Statistics issued by the IPS show that there was a decline of 6.3% to
29.9 million in the number of inbound trips undertaken and a drop of 6.7% to
229.4 million in the number of bed nights stayed. The sharpest percentage falls
in inbound visitor numbers occurred in the first three quarters of 2009 when
the numbers arriving fell by 13.7%, 5.5% and 6.2%, respectively, compared to
the 1st, 2nd and 3rd quarters of 2008. Arrival numbers started to recover in the
fourth quarter of 2009 and the total received between October and December
was 0.3% higher than for the comparable period in 2008.
Table continues...
...table continued
† — excluding fares
Note: figures relate to trips of less than 1 year, including day trips.
16,750
16,500
16,250
16,000
15,750
15,500
15,250
15,000
14,750
14,500
14,250
14,000
2005 2006 2007 2008 2009
† — excluding fares
Note: figures relate to trips of less than 1 year, including day trips.
By Purpose of Trip
Inbound visits for holiday purposes was the largest sector of the inbound
market and the only segment to record an increase in visitor numbers in 2009,
rising by 4.6% to 11.4 million. The sectors most affected by the economic
downturn were visits for business purposes, which suffered a 19% fall to 6.6
million trips, and VFRs, which were 9.7% lower than in 2008 at 8.8 million. Visits
for miscellaneous purposes (which includes study, attending sporting events,
shopping and visits for health or religious purposes) fell by 0.3% in 2009, to 3.1
million.
% change
2005 2006 2007 2008 2009 2008-2009
Trips (000)
Holiday 9,713 10,566 10,758 10,923 11,424 4.6
VFR 8,687 9,406 9,720 9,727 8,783 -9.7
Business 8,168 9,019 8,845 8,124 6,579 -19.0
Miscellaneous 3,401 3,722 3,456 3,113 3,103 -0.3
Total †29,970 32,713 †32,778 †31,888 29,889 -6.3
% of Total
Holiday 32.4 32.3 32.8 34.3 38.2
VFR 29.0 28.8 29.7 30.5 29.4
Business 27.3 27.6 27.0 25.5 22.0
Miscellaneous 11.3 11.4 10.5 9.8 10.4
Total 100.0 †100.0 100.0 †100.0 100.0
Inbound visitors from the EU were by far the largest sector of the market, with
20.3 million trips taken in 2009, representing 68% of the total. However, this
figure has reduced by 6% from 21.6 million visitors in 2008. The largest sector
of the EU inbound market was trips for holiday purposes, which, at 7.8 million
in 2009, accounted for 38.4% of the total number of trips taken from the EU
and 68.4% of all inbound trips made for holiday purposes.
Inbound trips from North America fell to 3.6 million in 2009. Trips for holiday
purposes was the main sector of the North American market (37.6%), followed
by trips to VFR (31.6%).
For non-EU Europeans, trips for holiday purposes were also the main reason
for visits (36.4% of the total), followed by trips for business purposes (26.5%).
The majority of trips from other countries were for holiday purposes or to visit
friends and relatives. In 2009, these accounted for almost three-quarters
(73.1%) of the total.
% of Total by Purpose
EU Europe 38.4 23.3 28.4 9.9 100.0
North America 37.6 19.8 31.6 11.0 100.0
Non-EU Europe 36.4 26.5 23.9 13.2 100.0
Other Countries 38.5 15.9 34.6 11.0 100.0
All regions 38.2 22.0 29.4 10.4 100.0
% of Total by Region
EU Europe 68.4 71.9 65.7 64.9 68.0
North America 11.7 10.7 12.8 12.6 11.9
Non-EU Europe 5.6 7.1 4.8 7.4 5.9
Other Countries 14.3 10.2 16.7 15.0 14.2
Total 100.0 †100.0 100.0 †100.0 100.0
Inbound day visits to the UK are popular among those who live in countries
that are relatively close to the UK, such as France. Their importance to the
overall inbound travel and tourism sector continued to fall, however, with the
total in 2009 at a 5-year low of 1.7 million visits (5.7% of the total). Increases
in travel costs, such as higher ferry, plane and train prices, were likely to have
contributed to the falling popularity of these visits in 2009.
% of Total
Tourist visits 93.6 93.7 94.2 94.5 94.3
Day visits 6.4 6.3 5.8 5.5 5.7
Total 100.0 100.0 100.0 100.0 100.0
By Country of Origin
France continued to be the leading source market for inbound tourist visits to
the UK. In 2009, there were 3.8 million visits from France, a 4.1% increase on
2008 and the highest total over the 5-year review period. In many of the other
leading source markets falls were recorded in visitor numbers between 2008
and 2009. The number of visits from Poland, for example, decreased by 30.2%
to 1 million, while trip numbers from Italy were 25.5% lower at 1.2 million.
Among the 14 leading countries listed in Table 7.5, only Spain and France
recorded a higher number of trips in 2009 compared to 2008 figures.
% change
2005 2006 2007 2008 2009 2008-2009
Note: figures relate to trips of less than 1 year, including day trips.
By Mode of Transport
Although air transportation remained by far the most popular mode of
transport for inbound visitors to the UK, the economic downturn in 2009 had
more of an impact on this form of travel than on sea or tunnel inbound
transportation. In 2009, the number of inbound trips made by air fell by 8.1%
to 22.1 million compared to a 0.7% drop in inbound visits by sea to 4.5 million
visits. Visits made via the Channel Tunnel also fell by 0.7% to stand at 3.3 million
in 2009. The sharper fall in arrivals via air could be due to lower numbers of
travellers arriving from countries where sea or tunnel travel may be less of an
option, Poland for example. By contrast, higher numbers of arrivals from
France may have bolstered demand for the more accessible sea and tunnel
transport options.
Note: figures relate to trips of less than 1 year, including day trips.
By Type of Arrangement
The upward trend for overseas visitors to the UK who travel independently,
rather than on inclusive or package holidays, continued. In 2009, 83.5% of all
inbound visits were independently arranged, up from 82.7%% in 2008 and
79.3% in 2007. The popularity of this form of arrangement was especially
prevalent among air travellers, with over 90% of all inbound air trips booked
in this way. For sea and tunnel travel, two-thirds (67.2%) of inbound trips in
2009 were independently organised.
% of Total
Independent 88.7 89.2 87.0 90.4 91.4
Inclusive 11.3 10.8 13.0 9.6 8.6
Total 100.0 100.0 100.0 100.0 100.0
% of Total
Independent 64.6 66.5 60.7 66.8 67.2
Inclusive 35.4 33.5 39.3 33.2 32.8
Total 100.0 100.0 100.0 100.0 100.0
All Modes
Table continues...
...table continued
% of Total
Independent 80.7 82.1 79.3 82.7 83.5
Inclusive 19.3 17.9 20.7 17.3 16.5
Total 100.0 100.0 100.0 100.0 100.0
Ind — independent
Inc — inclusive
† — does not sum due to rounding
Note: figures are provisional and relate to trips of less than 1 year, including day trips.
SUPPLY STRUCTURE
The UK inbound travel and tourism market is supplied and serviced by a wide
range of organisations including transport providers (road, rail and air),
accommodation providers, companies which offer tourist attractions,
restaurants and catering services. Organisations involved in this sector include
VisitBritain, which works in partnership with the Government, the industry and
its partners in London, England, Scotland and Wales to promote Britain in 35
key overseas markets. VisitBritain has a network of international offices which
are supported by its London-based marketing, commercial, research and policy
teams. Also involved in the inbound travel and tourism market is the trade
organisation, UKinbound, which represents over 250 major member
companies and organisations in all sectors of the industry.
MARKETING ACTIVITY
Main media advertising expenditure by UK tourist offices fell by 2.3% to £17m
in the year ending March 2010. Despite this reduction, the 2010 total was still
the second-highest over the 5-year review period and 13.6% ahead of the
£15m spent in the year ending March 2006.
The tourist board with the highest levels of main media advertising in the year
ending March 2010 was VisitScotland, which spent £4.6m, and Enjoy England
(VisitEngland’s consumer-facing brand) which spent £2.3m. Both of these
tourist boards increased their level of main media advertising in 2010 as did
the Yorkshire Tourist Board, which upped its main media advertising
expenditure almost fivefold to £1.8m. In 2010, the Yorkshire Tourism Agency
reported a sharp increase in traffic to its website from the US following a
high-profile marketing campaign in New York.
BUYING BEHAVIOUR
Average expenditure per trip by incoming visitors to the UK reached a 5-year
high of £555.12 in 2009. The average length of stay for incoming visitors
remained at 7.7 bed nights in 2009, while average expenditure per bed night
increased by 8.8% to £72.33, the highest figure in this category over the review
period. A favourable exchange rate for the euro against the pound contributed
to an increase in average expenditure per day and visit.
Note: expenditure excludes fares; figures relate to trips of less than 1 year, including day
trips.
Note: expenditure excludes fares; figures relate to trips of less than 1 year, including day
trips.
It should be noted that inbound tourist numbers in April 2010 were severely
affected by the ash cloud from the volcanic eruption in Iceland and as a
consequence, visits to the UK by overseas residents were down 10% compared
to April 2009. Between January and March 2010, inbound visitor numbers were
just 1% lower than in the first quarter of 2009.
Based on data for the first 3 months of 2010 from the IPS, VisitBritain is
forecasting that full-year 2010 visitor numbers will decline by 1.3% to
29.5 million in comparison to 2009 figures, while inbound visitor expenditure
will increase by 0.7% to £16.7bn. VisitBritain expects receipts to outperform
volume as a weak sterling encourages growth in average spend per visit.
However, early indications are that this differential may be smaller than at first
anticipated.
In line with the projections of VisitBritain, Key Note forecasts that the number
of inbound trips made to the UK in 2010 and the number of bed nights stayed
will both fall. Total expenditure by visitors is expected to rise, although only
by a marginal amount due to the relatively strong rise in the value of sterling
against the euro. In the longer term, Key Note expects the inbound market to
demonstrate some recovery in visitor numbers in 2011 before being
significantly boosted in 2012 by the London Olympics, which should benefit
the inbound market across all three measures.
† — excluding fares
Note: figures relate to trips of less than 1 year, including day trips.
19,250
19,000
18,750
18,500
18,250
18,000
17,750
17,500
17,250
17,000
16,750
16,500
16,250
16,000
2010 2011 2012 2013 2014
† — excluding fares
Note: figures relate to trips of less than 1 year, including day trips.
8. A Global Perspective
MARKET VOLUME
2009 was a difficult year for the world tourism industry. International tourist
arrivals are estimated to have fallen by 4.2% to 880 million and international
tourism receipts are projected to have declined by 9.6% to $852bn.
International tourist arrival numbers were particularly affected in the first
three quarters of 2009 with falls of 10%, 7% and 2% being recorded,
respectively, compared to the first, second and third quarters of 2008. Tourist
arrivals in the fourth quarter of 2009 increased by 2% compared to the
corresponding quarter in 2008, as the global economy recovered, thus
contributing to a better than initially expected full-year total.
Despite the contractions in 2009, international tourist arrivals within the year
were still 9.9% higher than in 2005 and international tourist receipts were
more than a quarter (25.5%) up on 2005.
Note: International tourist receipts refer to the earnings in destination countries from
expenditure by international visitors on accommodation, food and drink, entertainment,
local transports and shopping, etc. Earnings from international passenger transport are
not included.
950
925
900
875
850
825
800
775
750
2005 2006 2007 2008 2009
By Region
In 2009, falls in international tourist arrivals were recorded within four of the
five regional markets with the largest decline being registered in Europe where
visitor numbers fell by 5.6% to 460 million. Africa was the only region which
saw visitor arrivals increase in 2009 compared to 2008. Europe and the Americas
experienced the largest declines in international tourist receipts in 2009, with
falls of 12.8% to $412.4bn and 11.8% to $165.6bn, respectively. It was only in
the Middle East that international tourist receipts were higher in 2009 than
2008.
Arrivals Receipts
% change % change
2008 2009 2008-2009 2008 2009 2008-2009
By Country
Arrivals
France was the leading country in terms of international tourist arrivals in 2009
with a total of 74.2 million visitors, a 6.3% decline on 2008, but a figure that
still equated to 8.4% of the global total. The US, Spain and the People’s
Republic of China (PRC) all recorded lower numbers of visitors in 2009 than in
2008.
The ten leading countries by international tourist arrivals accounted for 45.2%
of the global visitor total in 2009. Visitor numbers fell in seven of these
countries in 2009, with the UK registering a decline of 7%, the second-largest
drop behind visits to Spain, which fell by 8.7%. The highest increase in
international visitor arrivals among the ten countries included in Table 8.3 was
reported for Malaysia, which saw a 6.8% advance to 23.6 million.
Receipts
The US is the primary beneficiary of international tourist receipts. In 2009, US
receipts from international tourism amounted to $94.2bn or 11.1% of the
global total. However, this figure fell by 14.4% in 2009, a contraction which
was only surpassed by a 16.4% decline to $30.1m in international tourist
receipts in the UK. The nine leading countries by international tourist receipts
accounted for 45.5% of the global total in 2009. Only in Australia did the value
of receipts increase in 2009 compared to 2008.
AIR PASSENGERS
According to the International Air Transport Association (IATA), 2009 was the
worst year that the international scheduled air traffic market had yet
experienced, with passenger demand for the year down by 3.5%.
Assessed in terms of available seat kilometres, the largest falls were recorded
in Asia/Pacific (-6.3%), North America (-5.4%) and Europe (-4.4%). The
passenger load factor was highest in North America at 79.6% and lowest in
Africa at 69.9%.
Europe 34.7
Asia/Pacific 29.8
North America 17.8
Middle East 11.5
Latin America 4.5
Africa 1.8
Table continues...
...table continued
Total †100.0
In 2009, the leading AEA member airline in terms of passengers carried was
Lufthansa with 53.2 million passengers. British Airways was the third-largest
AEA member airline by passengers in 2009 with 32.3 million and Iberia, the
Spanish airline, was the eighth-largest with 20.5 million passengers. Combined,
British Airways and Iberia would have carried 52.8 million passengers in 2009,
indicating that the merger of these two airlines would put them almost equal
to Lufthansa.
Million % of Total
By Region
North America, Europe and Asia/Pacific are the world’s three leading regional
markets for air travel. The recessionary influences of 2009 affected airport
passenger numbers in North America and Europe, which fell by 5.2% to 1.47
billion and 5.4% to 1.4 billion, respectively, while in Asia/Pacific, a strong
performance during the second half of 2009, driven primarily by domestic
traffic in the PRC and India, helped to push passenger numbers up by 4.9% to
1.22 billion. In Latin America/Caribbean, passenger numbers showed a small
increase of 1.5% in 2009 boosted by an improving Brazilian market, while a
more stable Middle Eastern market produced a 7.7% rise. Passenger numbers
in Africa slipped back by 0.6% to 150.6 million.
By Airport
The world’s largest airport by passenger numbers is Atlanta which handled
88 million passengers in 2009, a 2.2% decrease on 2008. Heathrow replaced
Chicago as the world’s second-busiest airport in 2009 with 66 million terminal
and transit passengers and Beijing became the world’s third-busiest airport
with nearly 65.4 million passengers, a 16.9% increase on 2008 figures.
Among the world’s 20 busiest airports, Beijing, Dubai, Bangkok and San
Francisco were the only ones to record increases in passenger numbers in 2009,
while in the top 100 listing, only 26 airports showed positive growth. At the
other end of the scale, Vancouver, London Stansted, Detroit, Stockholm
Arlanda, St. Louis, Manchester, Dublin and Osaka airports all reported
double-digit declines in passenger numbers in 2009.
Table continues...
...table continued
According to the European Cruise Council (ECC), 4.9 million passengers took a
cruise holiday in 2009, an 11.8% increase on the previous year. The UK
continues to be the leading European cruise market in terms of passenger
numbers, followed by Germany, which exceeded the 1 million passenger
threshold for the first time in 2009.
The UK market has doubled in the past 9 years, with 1.5 million British
passengers taking a cruise in 2009, representing 31% of the market. Germany
continues to show strong growth in second place with just over
1 million passengers and 20.8% of the market. Italy, the third-largest cruise
market in Europe, saw a 17.2% increase to 799,000 passengers, while Spain
reported an 18.1% increase to 587,000 passengers in 2009.
According to the June 2010 issue of the UNWTO World Tourism Barometer,
growth in international tourist arrivals is still uneven and trading conditions
remain challenging. Globally, the pace of recovery is faster than initially
expected and is largely being driven by emerging markets. In the first 4 months
of 2010, international tourist arrivals in the Middle East increased by 33%
compared to the same period in 2009, while visitor numbers in Asia and the
Pacific were 12% higher. Lower growth rates were recorded in Africa (6%) and
the Americas (6%), while in Europe growth was limited to just 0.3% due to the
closure of European airspace in April 2010.
These and other challenges mean that the world tourism industry still has some
way to go to make up lost ground. Increasing unemployment continues to be
a major cause of concern, particularly for advanced economies and this could
affect leading outbound markets. The travel and tourism industry may also be
confronted with increased taxes such as the expected rise in UK departure tax,
which is due to come into force in November 2010, and Germany’s intention
to introduce a new air tax as part of its budget-cutting plans.
On the consumer side, trends such as late booking, increasing use of the
Internet to look and book, travelling closer to home and for shorter periods of
time and demanding value for money seem to have been accentuated during
the post-crisis period and are likely to continue in the future.
9. The Future
INTRODUCTION
The Economy
Source: Forecasts for the UK Economy, May 2010, Treasury Independent Average
© Crown copyright
Inflation
Inflation in the UK, as measured by the retail price index (RPI), is currently
forecast to rise by 3.6% in 2010 and remain above 3% between 2012 and 2014.
Inflation at these levels will increase the operating costs of companies involved
in travel and tourism and may lead to price rises above the overall RPI. For
example, in June 2010, the RPI for UK holidays was 4.1% higher than in June
2009 and the RPI for foreign holidays was 6.1% higher.
Source: Forecasts for the UK Economy, May 2010, Treasury Independent Average
© Crown copyright
Unemployment
Unemployment in the UK is forecast to rise by 9.2% to nearly 1.7 million
claimants in 2010, before remaining above 1.6 million until 2013. These
relatively high rates of unemployment could affect both consumer confidence
and consumer expenditure and, in turn, the demand for travel and tourism
services.
Actual number of
claimants (million) 1.67 1.67 1.62 1.48 1.37
% change year-on-year 9.2 0.0 -3.0 -8.6 -7.4
Source: Forecasts for the UK Economy, May 2010, Treasury Independent Average
© Crown copyright
Population
The UK population is forecast to increase by 0.7% to 62.2 million in 2010 and
reach 63.9 million by 2014, a rise of 1.7 million people over the forecast period.
In the long term, a growing population should boost demand for travel and
tourism. However, in the short term, the economic constraints affecting the UK
might mitigate such benefits.
Trips (000)
Domestic 128,530 127,500 132,600 128,000 126,500
Outbound 52,700 53,800 55,100 56,700 58,400
Inbound 29,500 30,000 32,200 30,800 31,550
Total 210,730 211,300 219,900 215,500 216,450
% change -1.8 0.3 4.1 -2.0 0.4
year-on-year
† — excluding fares
Note: domestic trips relate to trips of less than 60 days but at least 1 night; outbound and
inbound trips relate to trips of fewer than 1 year.
75,000
74,000
73,000
72,000
71,000
70,000
69,000
68,000
67,000
2010 2011 2012 2013 2014
† — excluding fares
FUTURE TRENDS
Business Travel
Travel and tourism trips for business purposes have been badly affected by the
recession. In 2009, for example, the number of such trips made in the domestic
market fell to 18 million after recording a figure of 18.2 million in 2008; the
number of outbound trips for business purposes slipped from 8.9 million to 6.9
million and the number of inbound trips for business purposes dropped from
8.1 million to 6.6 million. Although the market for business travel and tourism
may remain difficult in 2011, there may be some potential for recovery within
this sector of the market in the future.
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Airlines Reporting Corporation Air Travel Insolvency Protection
4100 North Fairfax Drive, Suite 600 Advisory Committee
Arlington, VA 22203-1629 E-mail: atipac@caa.co.uk
US http://www.atipac.org.uk
Telephone: 0017-038 168 000 Association of British Travel Agents
Fax: 0017-038 168 104 30 Park Street
http://www.arccorp.com London, SE1 9EQ
http://www.abta.com
Airports Council International
CP 16 Association of European Airlines
Aéroport 15 Avenue Louise 350
1215, Geneva 15 B-1050 Brussels
Switzerland Belgium
Telephone: 0041-227 178 585 Telephone: 00322-639 8989
Fax: 0041-227 178 888 Fax: 00322-639 8999
E-mail: aci@aci.aero http://www.aea.be
http://www.airports.org
Association of Independent Tour
Airport Operators Association Operators
3 Birdcage Walk 133A St Margaret’s Road
London, SW1H 9JJ Twickenham
Telephone: 020-7799 3171 Middlesex, TW1 1RG
Fax: 020-7340 0999 Telephone 020-8744 9280
E-mail: info@aoa.org.uk Fax: 020-8744 3187
http://www.aoa.org.uk E-mail info@aito.com
http://www.aito.co.uk
Air Transport Users Council
CAA House Association of Train Operating
Companies
45-59 Kingsway
3rd Floor
London, WC2B 6TE
40 Bernard Street
Telephone: 020-7240 6061
London, WC1N 1BY
Fax: 020-7240 7071
Telephone: 020-7841 8020
E-mail: admin@auc.org.uk
Fax: 020-7841 8263
http://www.auc.org.uk
http://www.atoc.org
Publications
Daily Telegraph • UK Cruise Census 2009
111 Buckingham Palace Road IRN Research
London, SW1W 0DT Concorde House
http://www.telegraph.co.uk Trinity Park
Solihull
London Evening Standard Birmingham, B37 7UQ
2 Derry Street Telephone: 0121-635 5210
London, W8 5TT Fax: 0121-635 5211
Telephone: 020-3367 7000 E-mail: info@irn-research.com
http://www.thisislondon.co.uk http://www.irn-research.com
• UK Airline Statistics
Civil Aviation Authority
CAA House
45-59 Kingsway
London, WC2B 6TE
http://www.caa.co.uk
General Sources
Dun & Bradstreet Nielsen Media Research
Marlow International Atrium Court
Parkway The Ring
Marlow Bracknell
Buckinghamshire, SL7 1AJ Berkshire, RG12 1BZ
http://www.dnb.co.uk Telephone: 01344-469 100
Fax: 01344-469 102
Dun & Bradstreet E-mail: mediacommunicationuk@
Marlow International nielsen.com
Parkway http://www.nielsenmedia.co.uk
Marlow
Buckinghamshire, SL7 1AJ
http://www.dnb.co.uk
Kantar Media
Ealing Gateway
26-30 Uxbridge Road
Ealing
London, W5 2BP
Telephone: 020-8433 4000
Fax: 020-8433 4001
http://www.kantarmedia.com
Government Sources
Department of Business, Innovation HM Treasury
and Skills 1 Horse Guards Road
1 Victoria Street London, SW1A 2HQ
London, SW1H 0ET Telephone: 020-7270 4558
Telephone: 020-7215 5000 Fax: 020-7270 4861
http://www.bis.gov.uk http://www.hm-treasury.gov.uk
•Forecasts for the UK
Department for Transport Economy-Treasury Independent
Great Minster House Average, May 2010
76 Marsham Street
London, SW1P 4DR
Telephone: 0300-330 3000
Fax: 020-7944 9643
http://www.dft.gov.uk
National Statistics
1 Myddelton Street
London, EC1R 1UW
Telephone: 0845-601 3034
Fax: 01633-652 747
E-mail: info@statistics.gov.uk
http://www.statistics.gov.uk
•Annual Abstract of Statistics, 2009
•Economic & Labour Market Review,
May 2010
•International Passenger Survey
•Monthly Digest of Statistics, May
2010
•Population Projections Database
(2008-based projections)
•UK Business: Activity, Size and
Location
Other Sources
Air Travel Organisers’ Licensing easyJet
Civil Aviation Authority Hangar 89
ATOL Section London Luton Airport
K3 Bedfordshire, LU2 9PF
45-59 Kingsway Telephone: 0871-244 2366
London, WC2B 6TE http://www.easyjet.com
Telephone: 020-7453 6700
http://www.caa.co.uk Greener Journeys
3rd Floor
Arriva Drury House
Admiral Way 34-43 Russell Street
Doxford International Business Park London, WC2B 5HA
Sunderland, SR3 3XP Telephone: 020-7257 2520
Telephone: 0191-520 4000 Fax: 020-7240 6565
Fax: 0191-520 4001 E-mail:
E-mail: enquiries@arriva.co.uk contact@greener-journeys.com
http://www.arriva.co.uk http://www.greener-journeys.com
• Households — a private household consists of either one person living alone or a group of
people, usually, but not always, members of one family, who live together and whose food
and other household expenses are managed as one unit.
• Housewives — a member of a private household who is solely or mainly responsible for the
household duties.
TGI data used in Key Note reports are broken down by age, social grade and standard region.
Social Grade
This is normally based on the occupation of the Head of the Household, or if the Head of the
Household is retired, their former occupation. If this information is not available, social grade
is based on environmental factors such as type of dwelling, amenities in the home, presence of
domestic help, etc.
Social grade is assessed by the interviewer when collecting the information and is, therefore,
based on information given personally and verbally by the respondent. Social grade is checked
by Kantar Media’s coding and editing office.
The following table broadly defines the six social grades used. The relationship between social
grade and net income of the Head of the Household is a complex one and readers should note
that income is not determinant of social grade.
Head of Household’s
Social Grade Social Status Occupation
A Upper middle class Higher managerial,
administrative or professional
B Middle class Intermediate managerial,
administrative or professional
C1 Lower middle class Supervisory or clerical and
junior managerial,
administrative or professional
C2 Skilled working class Skilled manual workers
D Working class Semi and unskilled workers
E Those at lowest levels of State pensioners or widows
subsistence (no other earner)
Standard Region
This is as defined by the Registrar-General.
Online searching is carried out by product code or free search method, and covers the period
from the last edition of the report to the current day.
Trade sources, such as trade associations, trade journals and specific company contacts, are
invaluable to the Key Note research process.
Secondary data are provided by Kantar Media (TGI) and Nielsen Media Research for consumer/
demographic information and advertising expenditure, respectively. In addition, various official
publications published by National Statistics, etc. are used for essential background data and
market trends.
Interviews are undertaken by Key Note for various reports, either face-to-face or by telephone.
This provides qualitative data (‘industry comment’) to enhance the statistics in reports;
questionnaires may also be used.
Field research is commissioned for various consumer reports and market reviews, and is carried
out by NEMS Market Research.
Key Note estimates are derived from statistical analysis and trade research carried out by
experienced research analysts. Up-to-date figures are inserted where possible, although there
will be some instances where a realistic estimate cannot be made or external sources request
that we do not update their figures.
P T
Packaging (Food & Drink) 6 2010 Take Home Trade 17 2008
Packaging (Glass) 13 2008 Telecommunications 21 2007
Packaging (Metals & Aerosols) 12 2003 Timber & Joinery 19 2008
Packaging (Paper & Board) 14 2008 Toiletries 23 2010
Packaging (Plastics) 15 2010 Tourist Attractions 5 2001
Paper & Board Manufacturing 14 2002 Toys & Games 24 2010
Personal Banking 11 2000 Training 18 2009
Photocopiers & Fax Machines 14 2005 Travel Agents & Overseas Tour
Plant Hire 13 2007 Operators 22 2009
Plastics Processing 10 2003 Tyre Industry 4 2008
Poultry 4 2010 V
Power Tools 5 2007 Vehicle Security 9 2010
Premium Lagers, Beers & Ciders 8 2009 Videoconferencing 4 2007
Printing 15 2010 Video & DVD Retail & Hire 8 2005
Private Healthcare 20 2009 W
Protective Clothing & Equipment 7 2009 Wallcoverings & Ceramic Tiles 18 2010
Public Houses 26 2010 Waste Management 10 2010
R Water Industry 5 2010
Rail Travel 7 2008 Windows & Doors 20 2010
Ready Meals 11 2009 Wine 20 2009
Recruitment Agencies White Spirits 1 2005
(Permanent) 10 2010
Market Reviews
Recruitment Agencies
Catering Market 21 2009
(Temporary & Contract) 10 2010
Clothing & Footwear Industry 13 2010
Renewable Energy 3 2009
UK Computer Market 11 2004
Restaurants 24 2009
Construction Industry 11 2009
Retail Chemists & Drugstores 16 2010
Contracted-Out Services 3 2007
Road Haulage 22 2009
Defence Industry 7 2003
S
Distribution Industry 10 2009
Sauces & Spreads 11 2008
DIY & Home Improvements
Shopfitting 14 2009 Industry 11 2009
Short Break Holidays 4 2001 Drinks Market 18 2008
Slimming Market 8 2000 Energy Industry 8 2010
Small Domestic Electrical Film Market 2 2009
Appliances 12 2010
Food Industry 19 2009
Snack Foods 20 2010
Healthcare Market 10 2005
Soft Drinks (Carbonated &
Insurance Industry 10 2009
Concentrated) 17 2008
The Legal Services Market 1 2005
Soup Market 3 2009
Leisure & Recreation Market 15 2005
Sports Clothing & Footwear 12 2009
Leisure in the Home 2 2008
Sports Equipment 15 2009
Leisure Outside the Home 2 2008
Sports Sponsorship 7 2009
Local Government Services 3 2010
Stationery (Personal & Office) 25 2010
Mechanical Handling 1 2001
Motor Industry 12 2008
Music Industry 2 2010
Office Equipment Industry 9 2010
Packaging (Food & Drink)
Industry 1 2003
B
E-Commerce: The Internet
Grocery Market 2009
Baby Foods 2006
E-Commerce: The Internet
Baby Products 2010 Leisure & Entertainment Market 2008
Baths and Showers 2000 Electronic Banking 2008
Beds, Bedrooms and Upholstered EMU — The Impact on the UK
Furniture 2000 Financial Services Industry 2003
Betting and Gaming 2002 E-Recruitment 2006
Book Retailing on the Internet 2007 E-Shopping 2002
Bottled Water 2003 Estate Agents and Services 2010
Bridalwear 2002 Ethnic Foods 2002
Business Postal Services 2008 European Electricity Industry 2007
B2B Marketing 2008 European Gas Industry 2007
Business Travel Market 2008 European Long-Term Insurance 2008
C European Oil & Gas Industry 2007
Cable and Satellite Services 2002 European Renewable 2008
Charity Funding 2005 Energy Industry 2008
Childcare 2008 European Short Breaks 2008
Children’s Publishing 2010 European Telecommunications 2010
Clothing Retailers 2000 European Tourist Attractions 2009
Coffee & Sandwich Shops 2009 European Trends in Food
Commercial Dynamics in Shopping 2009
Financial Services 2005 European Water Industry 2007
Commercial Insurance for Small Extended Financial Families 2005
Businesses 2009
Condiments and Sauces 2008
Consumer Credit & Debt 2010
Contact Centres 2010
Contraception 2002
Cooking & Eating 2009
Cross-Border Shopping 2000
Cruise Market 2008
F L
Financial Services Marketing to Lifestyle Magazines 2008
ABs 2006 Low-Fat & Reduced-Sugar Foods 2008
Financial Services Marketing to The Luggage Market 2000
ABC1s 2000
M
Financial Services Marketing to
BCs 2009 Marketing to Children 4-11 2003
Financial Services Marketing to Marketing in the Digital Age 2009
C1C2DEs 2006 Media Marketing 2010
Financial Services Marketing to Medical & Health Insurance 2007
DEs 2009 Men and Women’s Buying Habits 2008
Financial Services Marketing to Men’s Toiletries & Fragrances 2008
Over 60s 2004
Millennium Youth 2002
Financial Services Marketing to
Mobile Marketing 2009
the Affluent 2009
Motor Finance 2008
Financial Services Marketing to
the Retired and Elderly 2007 N
Financial Services Marketing to The Newspaper Industry 2005
Start-Up Businesses and the Self- Non-Food Sales in Supermarkets 2008
Employed 2010
Nutraceuticals 2008
Financial Services Organisations
on the Internet 2009 O
S U
Savings & Investments 2010 Utilities 2007
Saving Trends in the Eurozone 2002 V
Singles Market 2009 Vegetarian Foods 2009
Shopping Centres 2008 Vehicle Breakdown Services 2010
Short Breaks 2004 Vitamins, Minerals &
Slimming Market 2009 Supplements 2009
Small Businesses & Banks 2010 W
Small Office Home Office White Goods 2000
Consumer 2001 Women Over 45 2007
Small Office Home Office Working Women 2009
Products 2001
The Soup Market 2001
Sponsorship 2000
Supermarket Own Label 2009
Supermarket Services 2007
Sweet & Salty Snacks 2010
T
Teenage Fashionwear 2008
Teenage & Pre-Teen Magazines 2009
Teleworking 2003
Trends in Food Shopping 2008
Trends in Leisure Activities 2007
Tweenagers 2005
No part of this publication may be reproduced, copied, stored in an electronic retrieval system or transmitted
save with written permission or in accordance with the provisions of the Copyright, Designs and Patents Act
1988.
Published by Key Note Ltd, 5th Floor, Harlequin House, 7 High Street, Teddington, Richmond Upon Thames,
TW11 8EE. Telephone: 0845-504 0452
Stringent efforts have been made by Key Note to ensure accuracy. However, due principally to the fact that
data cannot always be verified, it is possible that some errors or omissions may occur; Key Note cannot accept
responsibility for such errors or omissions. Details supplied by Key Note should only be used as an aid, to assist
the making of business decisions, not as the sole basis for taking such decisions.
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