Top

Source: Visit Britain( International Passenger Survey, UK Tourism Survey) Cumbria Tourism (Occupancy Survey, Business Survey)

Research points to bumper year for UK

There may not have been a ‘barbecue summer’ last year, but research released by BDRC Continental show that the holiday industry looks set for another bumper year in 2010, making it one of the few industry sectors to benefit from the recession.

The number of overnight domestic holiday trips increased by 17% year-on-year during the first ten months of 2009 (Source: UKTS, VisitEngland) but the burning question for those in the tourism sector was whether people holidaying in the UK last year had a sufficiently good time to want to repeat the experience again in 2010.

The answer at the moment seems to be a resounding yes:

70% of those surveyed said they were likely to book a UK holiday in 2010. And the appeal of holidaying in the UK appears to be strengthening.

31% feel the UK is becoming more appealing as a destination, compared to 25% in 2009 and just 19% back in the pre-economic downturn days of 2008.

39% now claim that they are seriously considering taking their main 2010 holiday in the UK - up 10 percentage points from the same time last year.

High Euro and frustrations with air travel are driving the trend. The continuing strength of the Euro and a growing feeling of disillusion with air travel are at the root of this sustained appeal with holidaying at home. The Holiday Survey reveals that:

46% of all those considering Europe as a holiday destination have revised their plans on the basis of the current Euro exchange rate


The forecasted ‘Back to Britain’ trend so far for 2010 looks like this:
25% of those who intend to take a UK holiday this year are likely to opt for self-catering accommodation, with 16% of us likely to take a camping/caravanning holiday

38% of all UK holidays already booked for 2010 are seaside/beach holidays
33% rural/countryside holidays

28% city/town breaks

13% activity/adventure holidays

21% of families surveyed had already booked a holiday in the UK for 2010 compared with 14% of those without children.

"The UK holiday industry stumbled upon a huge opportunity in 2009 to demonstrate what it can offer to a lost generation of holidaymakers. The good news is more and more people are deciding to holiday at home again this year and are enjoying re-discovering what’s on their own doorstep.

The acid test will be when Sterling strengthens, particularly against the Euro. The UK tourism industry needs to continue to focus on delivering two key components to ensure it takes full advantage of this trend and makes Britain the destination of choice in the future - and they are value for money and quality of service.”

Steve Mills, Director of the Tourism, Travel and Leisure Team at BDRC Continental

Source: Jan 2010 Breaking Travel News

Could a drop in the Euro tempt British holidaymakers abroad?

In May 2009 there were reports that the strength of the Euro was 'scaring off' British holidaymakers.

“The strength of the euro seems to have scared off many travellers, despite the fact that non-euro countries are not necessarily cheaper than those within the eurozone, and that good value holiday spots exist within the eurozone,”

Barry Smith Co-founder Skyscanner

Now in the first quarter of 2010 the strength of the Euro is being carefully watched as the European Union decides how to deal with Greece's ballooning debts. The value of the Euro and European financial markets have already been hit with the Euro down to a nine-month low in February.

"Growth is on the path of consolidation but growth in 2010 will be fragile, moderate,"

Jean-Claude Juncker, Prime Miniter of Luxembourg

The economy of the eurozone will grow by about 1% this year, according to the head of the 16-nation bloc. The eurozone was hit hard by the economic downturn last year, contracting by 4%, its biggest drop since the euro launched in 1999. Ministers are also deciding how to help Greece, whose poor public finances have put the euro under pressure.

Recent GDP figures, released in February, revealed that the German economy failed to grow at all in the final quarter of 2009. This makes it even more unlikely that the European Union's largest economy, Germany, will help to bail out Greece, the European Union's weakest economy. Euro zone finance ministers are now meeting to discuss potential bail-out plans, which at the moment prove unpopular amongst the other European members.   "A weaker Euro will make it cheaper for US, or UK or other on-eurozone tourists to go on holiday in Continental Europe - unless their own currency also takes a tumble." Source: 11th Feb BBC News   TourismTrendSpotter will be watching the strength of the Pound against the Euro carefully to see any signs of the British holidaymaker leaving behind a UK 'staycation' for more affordable breaks in Europe.

Source: FT.com

Source: 2nd February 2010 BBC News, 12th February 2010 BBC News, 16th February 2010 BBC News,

Yorkshire pass launched to tempt visitors to stay longer
Welcome to Yorkshire has launched the UK’s first regional sightseeing pass.

The Yorkshire Pass, which is being sold by Expedia, Superbreak, Lastminute.com and Viator, allows entry to 75 leading attractions in the county including World Heritage sites, national museums and stately homes. York Minster, Fountains Abbey, Studley Royal, The Deep, Castle Howard and Coinsborough Castle are all included on the pass.

It is hoped the pass will encourage people to extend their stays in Yorkshire. Welcome to Yorkshire and its six tourism partnerships will promote the pass in their domestic and international marketing campaigns. Partners include:

Visit York

Yorkshire Dales and Harrogate

Yorkshire Moors and Coast

West Yorkshire

Visit Hull

East Yorkshire and Yorkshire South

“The Yorkshire Pass gives people access to some of the county’s crown jewel attractions and the more it is used, the more savings are made, so people can explore more of Yorkshire for less. It is the first time, anywhere in Britain, that a regional sightseeing pass has been introduced so once again Yorkshire is leading the way in putting tourists first.”

Gary Verity, Chief Executive of Welcome to Yorkshire

Source: Feb 2009 Travelmole.com

Travel companies to focus on social media in 2010
Social media is seen as the greatest challenge in online marketing for 2010, according to a survey from search marketing specialist Bigmouthmedia.

The company surveyed the industry to gauge views on online marketing spend going forward as well as perceived challenges and opportunities. Despite social media being seen as a challenge, respondents described initiatives in the area as their top innovations this year as well as those planned for 2010.

When it came to marketing spend, online continues to get an increasing share of the total budget – up from:

39% in 2008

50% in 2009

an estimated 57% in 2010

However, some areas within travel, such as travel comparison sites, holiday rental specialists and online travel agencies, are anticipating spending more than 80% of their total marketing budgets online.

Paid search received the highest portion of online budgets with an average of 37%, followed by search engine optimisation at 18% and display at 17%.

While only 7% of online marketing spend was devoted to social media this year, 60% of respondents said they would be increasing their social media and search engine optimisation budgets next year.

Some 60% said they would either maintain or decrease pay-per-click spend next year although the overall paid search budget is expected to grow in 2010.

Respondents also said the economic climate was the greatest challenge facing the industry as a whole.
 

Source: Nov 2009 Travolution

Easyjet to launch group planning app for Facebook

EasyJet has developed a group planning application for Facebook enabling users to discuss and share plans before booking. The service is part of the budget airline’s social media strategy which includes its @easyJetcare customer service presence on Twitter.

Source: Dec 2009 Travolution

Responsibletravel.com to offer carbon comparison flight search

responsibletravel.com has announced that it will offer travellers a flight search which compares not only prices, but carbon emissions of different airlines for requested routes.

Created in partnership with Global Travel Market and The Carbon Consultancy. The search offers a choice of provider based upon the efficiency of the equipment (aircraft fleet) used for long and short-haul flights. Alongside the new flight search and carbon reduction advice page, responsibletravel.com aims to help responsible travellers by offering:
Over 200 UK based holidays. The UK is now the best selling destination on the website as many of its UK-based customers chose to holiday closer to home.
The functionality to book Europe and worldwide train tickets or UK train tickets to reach their holiday destination.
A special section dedicated to holidays whose organisers have gone that extra mile in helping travellers choose more environmentally friendly methods of transport. See lower carbon travel holidays.

Source: Dec 2009 Traveldailynews.com

Top

Still Credit Crunched?

Money is still tight – though it’s not all doom and gloom

VisitEngland have completed the fourth wave of their credit crunch tracker, which has been running since October 2008 to measure the impact of the economic downturn on holiday behaviour.

The key headlines this wave are that there is still a high degree of concern about the economy, and some two thirds of the population are still affected in some way by the economic downturn, and three quarters are cutting back on spend. These are numbers which haven’t changed since the start of the year, but there are now signs of cautious optimism about the future.
 

58% describe themselves as "very concerned" (was 70% a year ago)
23% believe we are "over the worst" (was 7%)

among those not yet affected, a higher proportion expect not to be affected in future

Compared to a year ago, fewer people are planning to cut out holidays altogether, or feeling the need to make savings once on holiday, but nonetheless, just under half still expect to make some kind of savings on their holiday budgets - it looks as though belts will continue to be tightened well into next year.
 

Source: 'Impact on Domestic Tourism Wave 4' - Oct 2009 EnjoyEngland

UK outbound traffic most severely hit in Europe
Figures from the ITB's World Travel Tends Report has revealed outbound traffic from the UK was the most severely hit in Europe during the first eight months of 2009.

Total international traffic from European markets dropped by 8% in the first eight months of 2009.

The UK saw the biggest decline at 15%

Russia which was 12% down

Sweden fell by 10%.

Europe’s biggest market, Germany, was 5% down

The study also quantified the extent to which the booking window has changed. Compared with the same period last year the number of Europeans who booked their breaks:

within one week of departure increased by 18% 

between a week and one month ahead was 5% down

between one month and three months was 12% down

more than three months ahead was 13% down

“Consumer insecurity” drove this shift towards late bookings, the report claimed, adding that confidence was still a major concern.

When asked, in October, about their plans for 2010, 68% of Europeans said they would travel “at least as often” next year. When asked the same question at the same time in 2008, 80% said they would do so in 2009.

Despite the negative figures, ITB said that the travel industry “has survived this period in better shape than was expected in the spring of 2009."

Source: Dec 2009 Travolution

Brits take to holiday "snacking" as UK minibreaks soar

Brits are taking more holiday “snacks” and less vacation three course meals, according to a YouGov poll and Hoseasons booking patterns. The YouGov survey of 2361 adults online asked them about their holiday plans for 2010. It found some 30% indicated they are more likely to go on a short break in the UK in 2010 compared to last year. Hoseasons' own data shows that short break holiday bookings are already 25% up in 2010 while 2009 Christmas shortbreaks soared by 68%.

“Last year had a big impact on peoples’ views of the UK as many rediscovered Britain. This newfound love, combined with an increasing reluctance to fly and a tightening of holiday budgets, means that the UK is become the default destination for many short break holidaymakers."

“All this strongly points towards the rise of the ‘holiday-snacking’ and more frequent shorter breaks to enable holidaymakers to make the most of their time and budgets in 2010.”

Richard Carrick, Chief Executive of Hoseasons

Source: Feb 2010 Travelmole.com

Back to Butlins! Families flocking to its revamped holiday camps as they shun expensive foreign breaks
The bucket and spade break is enjoying a revival, with bookings taken by Butlins and Pontin's surging by nearly a quarter. In the past the popularity of this type of holiday waned as air travel expanded and trips to exotic destinations became more affordable.

The two companies are benefiting from the recession, with many hard-pressed families opting to holiday in Britain rather than abroad. Efforts to move their parks upmarket seems to be paying off with health spas, luxury rooms and fine dining restaurants attracting more middle-class visitors.

Pontin's said sales in January were up 22 per cent on the same month last year, with thousands of bookings for school summer holidays.
Butlins said its bookings for the current February half-term are 15 per cent ahead of last year, despite the grim weather.

Many families have been priced out of going overseas during the recession, with foreign package holiday companies pushing up prices by as much as 80 per cent once the schools break up.

Butlins has spent around £100million since 2003 on its three beachside resorts. There are now two ultra-modern hotels, one with a £2million spa, being built at Bognor Regis; a spa at Skegness; and the BlueSkies Vacation Club, which has luxury apartments and flat-screen TVs, at Minehead. There are also sport arenas and go-kart tracks.
 

Source: Feb 2009 DailyMail.co.uk

Top

UK Confidence takes a knock at the beginning of 2010, but remains positive

According to The Hotel Confidence Monitor, confidence amongst hotel general managers suffered a slight setback in Q1 2010 as the new year produced a mixed outlook across the UK. Q1 2010 results revealed a small increase in the proportion of negative respondents at the expense of positive respondents compared with Q4 2009, with a 3.5% increase in the number of general managers surveyed who were not certain about what the next three months would bring.

However, UK hoteliers have a much brighter outlook in Q1 2010 compared to Q1 2009, with more than 55% of respondents either optimistic or very optimistic about their hotel’s trading performance over the next three months. Looking back, just 29% of respondents were optimistic or very optimistic about future trading performance in Q1 2009.

Occupancy expectations for 2010 compared to 2009:

50% expect a growth

26% are not anticipating a change

24% forecasting a decline.

Year-end growth in rooms revenue during 2010 is anticipated by 69% of the 115 general managers who completed the Hotel Confidence Monitor survey, with less than 20% of respondents expecting a year of negative revenue performance.

(Online survey, carried out between 11 and 22 January 2010, with a total of 115 UK chain hotel general manager completes)

Source: Feb 2010 TRI Hospitality Consulting

London continues to outperform the European hotel market

With the exception of Prague and Budapest, all cities profiled in the TRI Hospitality Consulting European Chain Hotels Market Review for November 2009 enjoyed a growth in room occupancy levels compared to last year. Berlin, London and Barcelona experienced the strongest increase in room occupancy levels of six to seven percentage points.

“The growth in average annual room occupancy levels reconfirms the signs of a slow and gradual sales recovery of the European hotel market”

David Bailey, deputy managing director, TRI Hospitality Consulting.

Achieved average room rates continue to decline, compared to levels achieved last year, with the exception of London, which increased achieved average room rates by 2.7%.

In November 2009 London continued to outperform the European hotel market, driving room occupancy and achieved average room rate levels, while restraining payroll costs by 4.6%. As a result, RevPAR in the UK capital increased by over 11% and profit per available room (GOP PAR) rose by 9.2% to a notable €113.25. This moves London significantly above other leading European cities such as Paris (€62.98) and Amsterdam (€59.44).

A sample of 115 full-service London hotels reported a third successive month of average room occupancy growth, increasing year-on-year from 79.3% to 84.0%. The weak Pound, mild winter weather and widespread discounts helped drive the best retail sales in London since October 2006. London remains a top retail destination and, with the sales starting early, November’s footfall increased by 3.6% year-on-year.

Source: Dec 2009 Hotelier.com, Dec 2009 4Hoteliers

Top

Person-to-person car sharing service
RelayRides bills itself as the first person-to-person car-sharing marketplace. The site allows people with cars to earn money by renting them out to people who don't have cars of their own. Cars are fitted with a device that allow authorized renters to access it without having to be given keys. It also establishes an insurance policy to cover renters during the rental period.

Next, owners set the car’s rental price, along with where the car will be rented and when it is usually available. Renters can then reserve the vehicle by the hour or day within the owner-set schedule. With suggested hourly rates of between USD 6 and USD 12 - covering 20 miles per reserved hour or 160 miles per day along with gas and insurance - owners can earn as much as USD 8,000 per year by renting out their cars for just 20 hours a week, RelayRides says.
Every shared car replaces 14 to 18 vehicles on the road.

This shows the technology exists for a flexible car rental system that can be run in real time with citizens/visitors. Would such a car rental scheme in the Lake District be part of the solution to a sustainable transport system?

Read More >

Green light given for London's first Art'otel
Planning permission has been granted for the building of the first Art’otel in London, to be operated by Park Plaza Hotels.
 

"We can now build a world-class hotel that will be a showcase for artists."

Boris Ivesha, president and chief executive of Park Plaza Hotels, the owner of the Art’otel brand.

Situated close to Hoxton Square with its strong artistic influences, the location of the 350-bedroom hotel is believed to be important to its success as the brand’s concept focuses on original art by one artist being displayed throughout the bedrooms and public areas. The 18-storey London hotel, which will include an art gallery, space for video artists and photographic studios, is due to open in 2012. There will also be a spa, cinema and a top floor restaurant and bar.

There are currently seven Art’otels in Europe – six in Germany and one in Budapest, with two scheduled to open this year in Cologne and Marrakech and one in Amsterdam in 2011.
Read More >

The tools to take rental goods and services to market
Continuing on the rental theme, Rentcycle is a new online platform to help rental businesses go online. The brainchild of Silicon Valley entrepreneur Tim Hyer, this startup offers web-based hosting and software utilities to help rental companies streamline their business process and improve customer conversion. In addition, the site aims to become a portal for consumers wishing to rent goods or services.

Once registered, companies get a branded online storefront to present their wares, along with reservation systems, inventory management and analytics. Customers can search both by product or provider in their area, and can order and pay for items through Rentcycle. There is also a messaging service delivering reservation reminders and SMS updates on customer inquiries.

While small businesses in many sectors are squeezed out by the economies of scale of their web-based competitors, Rentcycle has developed a solution to help those outlets become more efficient and accessible. The rental market, beyond just Car rental, in a sustainable tourism destination such as the Lake District should be on every entrepreneur's watchlist. Especially with sustainability being an increasing factor in consumer decisions.
Read More >

Top

Source: Springwise + TheDrum

Top

Cumbria Tourism Research Request Form

Top