Holiday Review - UK - March 2007

TABLE OF CONTENTS

• Issues in the Market
• Main issues
• Definitions
• Abbreviations
• Market In Brief
• More holidaymakers and more frequent shorter holidays
• Holiday spend also on the up
• Holiday growth driven by independent sector
• Aviation soars despite green pressures and extra costs
• Long-haul and Eastern Europe prosper
• Travel groups adapting to market changes
• Travel agents struggling to keep up
• More variety and long-haul growth
  • Figure 1: The total holiday market by volume, 2002-12
• Internal Market Environment
• Key points:
• A move towards greener travel?
• Air passenger duty hike
• Carbon offsetting
• Rising costs of travel: fuel supplements
• More holidaymakers and more trips
  • Figure 2: Percentage of adults booking UK and overseas holidays, 2002-06
• Internet penetration
  • Figure 3: Internet penetration, by gender, socio-economic group and age, 2002-06
• Broader Market Environment
• Key points:
• Income and inflation
  • Figure 4: Trends in personal disposable income and consumer expenditure, 2002-11
• UK retailing in figures
  • Figure 5: UK: Retail sales, 2001-06
• Holidays are a must
  • Figure 6: UK spending priorities, January 2007
• Rise of ABC1s
  • Figure 7: Forecast adult population trends, by socio-economic group, 2002-11
• Third age: a third of the market
  • Figure 8: Forecast adult population trends, by lifestage, 2002-11
• Competitive Context
• Key points:
  • Figure 9: UK: Retail sales, by broad sector, 2002-05
• Strengths and Weaknesses in the Market
• Strengths
• Weaknesses
• Market Size and Forecast
• Key points:
• Rising holiday volume driven by outbound market
  • Figure 10: Domestic and overseas holidays volume, 2002-12
• Holiday expenditure
  • Figure 11: Domestic and overseas holidays expenditure, 2002-12
  • Figure 12: Domestic and overseas holidays average spend per trip, 2002-12
• Segment Performance for Overseas Holidays
• Key points:
• And the winner is independent holidays
  • Figure 13: Inclusive holidays versus independent holidays, by volume, 2002-06
• People spend less on independent holidays
  • Figure 14: Inclusive holidays versus independent holiday -- duration, spending and volume, 2005
• Long-haul and Eastern Europe experiencing major growth
  • Figure 15: Outbound holiday visits, by region visited, 2002-06
• Viva Espana, Forza Italia!
  • Figure 16: Top 20 destinations, by number of visits, 2002-05
  • Figure 17: Number of visits, nights and spending, by purpose and by country of visit, 2005
• Transport
  • Figure 18: Number of visits and spending, by mode of travel and by region and purpose of visit, 2005
• Departure airports
  • Figure 19: Passenger movements (scheduled and chartered) at UK airports, 2002-05
• Seasonality
  • Figure 20: Seasonality of holiday visits, by quarter, 2005
  • Figure 21: Number of holiday visits and spending, by quarter and region, 2005
• ATOL Market Share
• Falling number of air passengers protected by ATOL
• Top ten ATOL holders
  • Figure 22: ATOL passengers carried by the top ten travel companies, 12 months to March 2002-06
• Top ten travel groups by ATOLs
  • Figure 23: Passengers licensed to top ten groups and companies, 2004/05 and 2005/06
• Companies and Products
• Key points:
• TUI UK
• 2006 in brief
• Restructuring: job cuts
• Focus on modular travel
• Performance and prospects
• Thomas Cook Group
• 2006 in brief
• Cruise focus
• Family focus
• Repositioning mass-market and scheduled offering
• Web initiatives
• Performance and prospects
• First Choice Holidays plc
• 2006 in brief
• Niche value
• Online business
• Driving the green debate
• Prospects for 2007
• MyTravel Group plc
• 2006 in brief
• Cruise prospects
• Prospects for 2007
• XL Leisure Group
• 2006 in brief
• New direct sales division
• Prospects for 2007
• Expedia
• 2006 in brief
• Developments
• Prospects for 2007
• Cosmos
• From Kent to Norfolk
• Environmental push
• Prospects for 2007
• Travelport
• 2006 in brief
• Developments
• Prospects for 2007
• Gold Medal Travel
• Developments
• Prospects for 2007
• Sabre Holdings Corporation Group
• 2006 in brief
• Technological developments
• Going green
• Prospects for 2007
• Distribution
• Key points:
• Domestic DIY
  • Figure 24: How last UK holiday was booked, 2002-06
  • Figure 25: Booking method for last UK holiday, 2003-06
• Travel agents dominate overseas holiday bookings by a whisker
  • Figure 26: How last holiday abroad was booked, 2002-06
  • Figure 27: Method used to book last holiday abroad, 2003-06
  • Figure 28: How last holiday abroad was booked, by booking method, 2006
• Internet dominates holiday research methods
  • Figure 29: Sources used to get information on last holiday, 2003-06
• More closures on the high street
  • Figure 30: Leading travel agents, by number of outlets, 2001-07
• Changes...on paper at least
• The Consumer: Holidays Taken -- Domestic and Abroad
• Key points:
• Holidays taken in the last year
  • Figure 31: Holidays taken in the last 12 months, 2004-06
  • Figure 32: Holiday essentials, 2002-06
• The Consumer -- Holidays Abroad
• Key points:
• Multiple holidays increasing...
  • Figure 33: Number of holidays taken, 2002-06
• ...but average length diminishing
  • Figure 34: Length of last holiday abroad, 2002-06
• Beach holidays take a nose dive
  • Figure 35: Type of holiday taken for last holiday abroad, 2002-06
• Transport
  • Figure 36: Main method of travel used for last holiday abroad, 2002-06
• Accommodation
  • Figure 37: Type of accommodation for last holiday abroad, 2002-06
  • Figure 38: Timing of last overseas holiday booking, 2002-06