All-inclusive Holidays - UK - March 2007

TABLE OF CONTENTS

• Issues in the Market
• Main issues:
• Definitions
• Abbreviations
• Market in Brief
• All-inclusive boom
• Key marketing message
• Emerging markets and long haul lead the way
• Getting active
• Courting controversy
• Hassle-free indulgence
• I'm an AB traveller, get me out of here!
• Edutainment, edutainment, edutainment...
• Best of both worlds
• Europe must up its game
• Internal Market Environment
• Key points:
• Upward path
  • Figure 1: Domestic and overseas holidays and expenditure, 2001-06
• Seismic shift
  • Figure 2: Overseas package holidays versus independent holidays, by volume, 2001-06
• Emerging markets
  • Figure 3: Outbound holiday visits, by region visited, 2001-05
• Fierce competition
  • Figure 4: Type of holiday taken for last holiday abroad, 2002-06
• Key dynamic
  • Figure 5: Number of holidays taken, by adults who went abroad for their last holiday, 2002-06
  • Figure 6: Length of last holiday abroad, 2002-06
• All-inclusive-combo
• Safety first
• Anxious affluents
• International tourism development
• Emerging market enclaves
• Resorts in crisis
• Global adoption
• Ethics
• Leakage and linkage
• More optimistic
• Local owners do better
• Uncomfortable questions
• Ethical consumerism: do people care?
• Bad news costs dear
• Broader Market Environment
• Key points:
• Challenging climate
  • Figure 7: Consumer confidence index, February 2006-January 2007
  • Figure 8: Trends in personal disposable income and consumer expenditure, 2002-11
• Top priority
  • Figure 9: Spending priorities, January 2007
• Budget control
• Poles apart
  • Figure 10: Forecast adult population trends, by socio-economic group, 2001-11
• Hostile third agers
  • Figure 11: Forecast adult population trends, by socio-economic group, 2001-11
• Competitive Context
• Key points:
• All-inclusive surges ahead
  • Figure 12: All-inclusive overseas holidays volume 2002-07
• Rising penetration
  • Figure 13: Type of accommodation for last holiday abroad, 2002-06
• Strengths and Weaknesses in the Market
• Strengths
• Weaknesses
• Market Size and Forecast
• Key points:
• Past and present
• All-inclusives grow market share
  • Figure 14: All-inclusive overseas holidays volume 2002-07
• Reasons for growth
• Emerging markets set the pace
• Long-haul boost
• Active holidays
• Horses for courses
• Future
• Strong growth path
• Long-haul drives development
• Greater segmentation
• Six-star plus
• All-inclusive combo
• Super-Cannes
• North/South divide
• Segment Performance
• Key points:
• Wide spectrum
• Budget band
• Middle of the road
• Top of the range
• Destination mix
  • Figure 15: Thomas Cook: most popular all-inclusive destinations as at March 2007
• Niche markets and key demographics:
• Wedding and honeymoon
  • Figure 16: Number of weddings in UK and abroad, 2000-05
  • Figure 17: Weddings abroad -- most popular locations March 2006
• Activity
• Families
• Couples and singles
• Grey Market
• Naturism
• Corporate
• Companies and Products
• Key points:
• Specialist all-inclusive resort operators
• Hotel chains
• The UK travel trade
• Specialists
• Club Med
• Mark Warner
• Sandals
• Superclubs
• Tour operators
• Cosmos
• First Choice
• Thomas Cook
• The Consumer -- Overall Holidays Taken
• Key points:
  • Figure 18: Holidays taken in past 12 months, February 2007
• All-inclusive goes independent
• Overall holidays taken -- detailed demographics
  • Figure 19: Holidays taken in past 12 months by demographics, February 2007
• The Consumer -- All-inclusive Holidays Taken
• Key points:
  • Figure 20: Experience of all-incluisve holidays, February 2007
• All-inclusive virgins can double market penetration
• Satisfied customers
• Experience by demographics
• Age concern
• All exclusives
• Double Times
• Untapped demand
• Experience -- detailed demographics
  • Figure 21: Experience of all-incluisve holidays by demographics, February 2007
• The Consumer: Attitudes Towards All-inclusive Holidays
• Key points:
• Attitudes
  • Figure 22: Attitudes towards all-incluisve holidays, February 2007
• More bang for your buck
• Penned in
• Minority concern?
• Attitudes by demographics
• Social divide
• Short and sweet
• Affluent ethicals
• Low priority
• Attitudes - detailed demographics
  • Figure 23: Most popular attitudes towards all-incluisve holidays by demographics, February 2007
  • Figure 24: Further attitudes towards all-incluisve holidays by demographics, February 2007