Group Travel - UK - November 2003

SUMMARY

An extensive investigation a travel sector considered niche but still worth an estimated ?2 billion, 'Group Travel - UK, 2003' is as relevant to established operators as it is to travel companies or investors looking to gain an expert's understanding of a growing market. Offering you expert insight into:

• How group travel specialists are meeting the needs of the 21st Century British traveller
• The failings of the major AITs in this sector
• The fragmentation and polarisation in the group travel industry and the vital importance of school trips
• Group travel as part of holidays taken by Britons
• The risk of falling demand - the negative impact of poor publicity and the steps taken by the industry to strengthen safety guidelines
• A complex and diversified supply structure
• Key opportunities in the group travel market, including the impact of low-cost airlines, short breaks and the implications on the industry of a growing interest in independent holidays
• The need for operators to integrate customised interest or subject-themed tours and activities with conventional flight-and-accommodation
• An increase in bookings made by group travellers over the Internet
• Key customer target groups and their attitudes to group travel

There is no official or trade definition of group travel or a group holiday, but the products in the marketplace suggest that the travel trade attaches a different definition to the travelling consumer. For the trade, 'a group' is typically defined as either ten or 12 adults travelling together under one booking, the purpose of the definition being to offer a discount, usually in the form of one free passenger (free place).

While the travel trade mainly treats group travel as a discounting mechanism, the consumer's motivation to travel in a group does not usually come from the discount. Group travel is usually chosen for specific reasons related to the holiday or other leisure activity, of which the following are considered by Mintel to be the most important:

• school tours
• student groups, including part-holiday part-study trips
• touring by car, coach or caravan
• cruises
• sports teams on tour
• activity and cultural holidays, eg walking tours, climbing expeditions
• religious groups.

Mintel defines group travel as five or more consumers travelling together under a single booking. Specialist business group travel including meetings, conventions and incentive programmes will not be examined in this report. Written by industry experts for industry professionals, Mintel's latest report offers you a new perspective of:

Market factors/ Market size and trends/ Market segmentation/ The supply structure/ Consumer trends/ Consumer attitudes and typologies/ The future/ Sales forecast

TABLE OF CONTENTS

Introduction and Abbreviations

• Definitions
• Consumer research
• ACORN

Abbreviations

Summary of Key Report Findings

• Group travel specialists are meeting the needs of the 21st Century British traveller
• It is a substantial market
• Demand is at risk
• Complex and diversified supply structure
• Key opportunities in the group travel market

Market Factors

• The effect of global events on the outbound UK market
• Positive changes in the domestic UK market
• The UK economy
• Figure 1: Key economic indicators, at constant 1998 prices, 1998-2006
• The euro has improved price-transparency
• Figure 2: Average annual exchange rates between the Pound and other major currencies, 2000-02
• Population demographics
• Figure 3: The UK population, by age group, 1998-2006
• Figure 4: The UK population, by lifestage, 1998-2006
• The school trips market
• Figure 5: Pupils in primary and secondary schools, by type of schools, 1980/81-2001/02
• School trip accidents and their impact on the group travel industry
• Safety fears
• The Internet and group travel
• Figure 6: Weekly Internet usage for consumers who have travelled in a group versus those who have not travelled in a group, June 2003

Market Size and Trends

The holiday market

• The domestic market
• Figure 7: Domestic holidays taken by the British, 1998-2006
• Outbound holiday market
• Figure 8: Overseas holidays taken by the British, 1998-2006

The group travel market

• Expenditure by group travellers
• Figure 9: All adult holidays and group holidays taken in the last 12 months, by cost of holiday, summer 2003

Market size and value

• Adult group market
• School trips (under 16) market
• Holiday bookings by group travellers
• Figure 10: Holiday booking trends, by group travellers, 2000-03

Market Segmentation

• Children on school trips
• The adult market
• Destination

The Supply Structure

Academic/educational group travel specialists

• Blue Chip Travel (Travelsphere)
• NST Travel Group plc
• Other companies

Special interest group travel

• Anglia Battlefield Tours
• Arblaster & Clarke Wine Tours
• Casterbridge Tours

Adult group travel services

General tour operators and travel agents

• MyTravel (formerly Airtours)
• TUI UK/Thomson
• Thomas Cook
• First Choice

The Consumer

• Figure 11: Holiday types taken by groups, June 2003
• Figure 12: Those who have been on group holidays in the last three years and those who have not, by gender, age and socio-economic group, June 2003
• Figure 13: Those who have been on group holidays in the last three years and those who have not, by lifestage, Mintel's Special Groups and the presence of children, June 2003
• Demographics of group and non-group travellers
• Figure 14: Those who have been on group holidays in the last three years and those who have not, by marital status, working status, household size, region and ACORN categories, June 2003
• Figure 15: Those who have been on group holidays in the last three years and those who have not, by media usage, supermarket usage and commercial TV viewing, June 2003
• Group travellers by the types of holiday taken
• Figure 16: Top five holiday types taken by groups, by gender, age and socio-economic group, June 2003
• Figure 17: Top five holiday types taken by groups, by lifestage, Mintel's Special Groups and the presence of children, June 2003
• Figure 18: Top five holiday types taken by groups, by marital status, working status, household size, region and ACORN categories, June 2003
• Figure 19: Top five holiday types taken by groups, by media usage, supermarket usage and commercial TV viewing, June 2003
• Figure 20: Other holiday types taken by groups, by gender, age and socio-economic group, June 2003
• Figure 21: Other holiday types taken by groups, by lifestage, Mintel's Special Groups and the presence of children, June 2003
• Figure 22: Other holiday types taken by groups, by marital status, working status, household size, region and ACORN categories, June 2003
• Figure 23: Other holiday types taken by groups, by media usage, supermarket usage and commercial TV viewing, June 2003

The Future

• Demand for school trips expected to dwindle
• Opportunities in the adult market
• The Internet

Forecast

• A population-based forecast
• Figure 24: Typology forecast of potential target market for group travel, 2003-07
• Growth opportunities do exist...
• ...but shaky confidence in school trips could hinder growth

Appendix: Research Methodology