Family Holidays - UK - June 2004

SUMMARY

As one of a series of Travel Intelligence reports covering six European tourism markets for family holidays, this report focuses on tourism generated by British families. It analyses the market drivers, suppliers, consumers, and trends for family holidays in the UK, which includes both domestic and outbound travel.

Factors such as the attitudes toward family holidays, accommodation and transportation costs, and demographic shifts impact the amount of family participation in tourism activities.

Mintel research defines the essential elements that contribute to tourism growth by examining trends in the holiday market.

Report findings show a market approaching maturity, foreign gain at the expense of domestic, and benefits of increasingly affluent consumers.

By removing barriers of cost and offering discounts and special offers, suppliers can continually attract families looking for leisure getaways. Market size forecasts, including changes in foreign travel, are revealed in this report.

Where is the family holiday market headed next?

TABLE OF CONTENTS

Introduction and Abbreviations

• Introduction
• Definition
• Consumer research

Abbreviations

Premier Insight

Summary of Key Report Findings

• Family holidays currently account for one in four holiday trips
• Independent holidays are the backbone of the family holiday sector
• Demographic changes will have an adverse impact on the family holiday segment
• The government's Standard School Year policy will alter family holiday patterns
• The 'big five' tour operators still dominate the package family holiday market
• Families depend on friends and families for ideas, the Internet for research and both the
• Internet and travel agents for making bookings
• Families love beach holidays
• Different holidays are taken by families with different needs and preferences
• Seven in ten parents who went on holiday want something their kids will enjoy
• Spenders and Savers
• Grandtravellers - a burgeoning sector?

Market Factors

• Family expenditure on holidays set to grow in the immediate term
• Figure 1: Personal disposable income, consumer expenditure, gross domestic product and holiday expenditure, 1999-2007
• Single parents spend less than two-parent families on leisure
• Figure 2: Average weekly expenditure on recreation and culture, by household type, 2002/03
• Demographic and social changes will have a long-term negative impact on the family holiday segment
• Figure 3: Key demographic family indicators, 1999-2007
• Figure 4: Household structure of the UK, 1971-2002
• The need for a work/life balance is driving the family market
• A more positive outcome predicted for the wider holiday market
• Figure 5: The UK holiday market, 1999-2004
• The weather will help to prop up the domestic market in 2004
• Family holidays are still highly seasonal in nature
• Figure 6: Proportion of holidays taken by UK adults versus families, by quarter, 2003
• Changes in the Standard School Year will alter booking patterns
• Government fines on term-time truancy will have little impact on the family holiday market

Market Size and Segmentation

The family holiday market

• Market size
• Figure 7: The family holiday market, by volume, 1999-2004
• Figure 8: The family holiday market, by value, 1999 and 2004

Key market trends

• More families holiday in the UK than abroad
• Multiple family holidays and short breaks are growing in popularity
• Figure 9: UK adults with children who have gone on three or more holidays and who have taken a short break in the last 12 months, 2001-03
• More families go on independent breaks than package holidays
• Figure 10: Estimated number of independent and package holidays taken by families, 2004

The Supply Structure

Tour operators

• Figure 11: Passengers licensed to top five groups and companies up to September, 2002 and 2003
• Figure 12: Family package holidays taken, by tour operators, April 2004
• Figure 13: Summary of family services, facilities and promotions, by tour operator, summer/winter 2004
• TUI UK
• Thomson Holidays
• MyTravel
• Thomas Cook
• First Choice Holidays plc
• Cosmos Group
• Other tour operators

Accommodation suppliers

• Holiday parks, holiday centres, campsites and caravans
• Hotels and resorts

Planning and Booking a Family Holiday

• Family holiday ideas
• Figure 14: Sources of holiday ideas for adults and families, November 2003
• Channels used to research family holidays
• Figure 15: Channels used by adults and families to research holidays, November 2003
• Booking channels for family holidays
• Figure 16: Channels used by adults and families to book holidays, November 2003
• Turning ideas into reality
• Figure 17: Top four sources of family holiday ideas, by booking channels, November 2003

The Consumer

Holidays taken in the last 12 months

• Figure 18: Holidays taken in the last 12 months, by adults and families, March 2004

Type of family holidays taken

• Figure 19: Type of holidays taken, by all adults and families, March 2004
• Figure 20: Top two holiday types taken by families in the last 12 months, by socio-economic group, working status, Mintel's Special Groups and presence of children, March 2004
• Figure 21: Top two holiday types taken by families in the last 12 months, by region, media usage, supermarket usage and commercial TV viewing, March 2004
• Figure 22: Holidays taken by families in the last 12 months, by top two family holiday types, March 2004

Transport and accommodation used by families on holiday

• Figure 23: Transport and accommodation used on holiday in the last 12 months, by adults and
• families, March 2004
• Transport used by families on holiday
• Figure 24: Transport used by families on holiday, by socio-economic group, working status, Mintel's Special Groups and presence of children, March 2004
• Figure 25: Transport used by families on holiday, by region, media usage, supermarket usage and commercial TV viewing, March 2004
• Accommodation used by families on holiday
• Figure 26: Accommodation used by families on holiday, by socio-economic group, working status, Mintel's Special Groups and presence of children, March 2004
• Figure 27: Accommodation used by families on holiday, by region, media usage, supermarket usage and commercial TV viewing, March 2004
• Transport and accommodation used in the UK or overseas
• Figure 28: Holidays taken by families in the last 12 months, by transport and accomodation used, March 2004
• Transport and accommodation used by holiday type
• Figure 29: Transport and accomodation options used by families, by holiday type, March 2004

The Future

• Grandtravellers - the emerging extended family holiday market
• Changes in the Standard School Year will have negative repercussions for the domestic
• market
• Overseas package holidays will retain a fair slice of the family holiday segment
• Travel agents will remain the main booking channel for package family holidays

Forecast

• Figure 30: Forecast of the family holiday market, by volume, 2004-09
• Factors incorporated