Backpacking Travel - UK - May 2004

SUMMARY

This report looks at developments within the youth travel and backpacking market. Backpackers are defined as travellers who prefer budget accommodation, enjoy meeting other travellers, have an organised and flexible schedule, experience long holidays, and emphasise informal participatory activities.

With shifting lifestyles and demographics, the phenomenon of backpacking is constantly changing. Free independent travellers are often utilised to describe young tourists, in addition to active travellers who desire adventurous challenges.

Increasing enthusiasm for global travel and international education has fuelled the growth of youth travel around the world. Due to rapid changes, the backpacker industry has experienced favourable expansion. Factors such as Internet usage, global mobility and travel packages will impact the participation of tourists who backpack during foreign travel.

Mintel research reveals insights into current trends and distinctions between tourists, travellers, and backpackers among surveyed respondents. The backpacking industry is expected to grow with the heightened appeal of tourism.

What is the future for backpacking travel?

TABLE OF CONTENTS

Introduction and Abbreviations

• Definitions
• Consumer research
• ACORN

Abbreviations

Summary of Key Report Findings

• Growth within key age demographic
• Student funding and loans encouraging travel
• Low consumer confidence has little effect on backpacking
• Dominance of the Internet
• Small market but leads to a lifetime of independent travel
• Internet and travel agents dominate distribution
• Supply
• The backpacker
• The future

Market Factors

• Population growth
• Figure 1: UK population, by age group, 1999-2007
• Student population
• Figure 2: Illustration of the total number of students in Further and Higher Education, 1970/71-2001/02
• Student funding
  • Figure 3: Value and number of student loans, 1993/94-2002/03
• The economy
  • Figure 4: PDI, consumer expenditure and savings ratio, at 1999 prices, 1999-2007
• Consumer confidence and safety issues
• The holiday market
  • Figure 5: Domestic and overseas holidays and expenditure, 1999-2004
• Growing use of the Internet for holiday research
  • Figure 6: Internet penetration, by gender, socio-economic group and age, 1998-2003

Market Size and Trends

• Market size
• Profile of a backpacker
• Figure 7: Profile of holidaymakers and independent travellers staying in more than one place, by gender, age, socio-economic group, region, marital status and presence of children, March 2004
• Growth in older backpacker market
• Independent travel - a mentality?
• Low-budget travellers but still a good target
• Yuppie backpackers
• Gap year travel has become increasingly popular in recent years
• Dangers of backpacking exaggerated by the media

Distribution

• Figure 8: Sources of information used by young independent travellers prior to departure, 2002
• Figure 9: Booking channel used by young independent travellers, by product, 2002

The Supply Structure

Accommodation

• Figure 10: Type of accommodation used by young independent travellers, 2002

Transport

• Europe and the UK
• Down under
• Figure 11: Bus packages purchased in Australia by foreign backpackers, 2002 and 2003
• North America
• Asia
• Africa and the Middle East

Travel intermediaries

• Gap year and round-the-world specialists
• Media

The Consumer

• Types of holidays taken
• Figure 12: Types of holiday taken in the last 12 months, March 2004
• Backpacking holidays taken
• Figure 13: Backpacking statements, March 2004
• Figure 14: Backpacking holidays taken, by gender, age, socio-economic group and working status, March 2004
• Figure 15: Backpacking holidays taken, by detailed lifestage groups, March 2004
• Figure 16: Backpacking, by region and ACORN categories, March 2004
• Figure 17: Backpacking, by media, supermarket usage and commercial TV viewing, March 2004

The Future

• Growth of student population fuelling the backpacker market
• Continued growth of the 25-34-year-old backpacker
• Growing backpacker infrastructure
• The Internet

Forecast

• Scenario 1
  • Figure 49: Forecast of backpacking target groups, scenario 1, 2004-09
• Scenario 2
  • Figure 50: Forecast of backpacking target group, scenario 2, 2004-09
• Scenario 3
  • Figure 51: Forecast of backpacking target groups, scenario 3, 2004-09