Britons rediscover the British Holiday

Reflecting the increased number of holiday trips, seaside locations have grown considerably since the start of the year (+20% growth in trips) while the countryside has also benefited (+10% increase in trips). Interestingly, in the month of September, growth to countryside locations outstripped seaside growth (+32% growth in countryside trips vs. 11% increase in seaside trips).

Blackpool shook off its seemingly inevitable yearly decline by attracting 2 million more guests to the seaside resort across the last 12 months. Blackpool Hotel providers report more demand for beds compared to last winter. Familiar traditional mainstays of British vacationing, like Yarmouth, Skegness and Brighton have all reported similar increases in holiday activity.

Visitor attractions in the North East have had 100,000 more visitors on the year before. The national trust has reported similar increases in domestic travel with 713,000 people visiting attractions in the North East alone.

"We have had a bumper season. What has happened is that Britons are exploring their own country again." David Ronn, National Trust Director

Two thirds of museums and art galleries have experienced an increase in visits this year, according to research conducted by The Art Fund. The survey was carried out amongst 255 such attractions. The Royal Horticultural Society have also seen a turnout 15% higher this year compared to June to August last year for the events they host, including the Chelsea and Hampton Court Flower Shows .

Bookings for campsites, holiday parks, self-catering cottages and boating breaks are up on last year.

At Butlins, reservations started the year 10% up on last year. However figures for the whole year now show bookings were only up 2% on last year.
Hoseasons, the biggest seller of UK breaks, has seen bookings for their holiday parks, cottages, lodges and boats increase by more than a quarter. The company's chief executive says demand for UK breaks is greater than it has been for 25 years.
The Camping and Caravanning Club sites saw occupancy increase 8% in 2009, and membership recruitment levels rocket by some 24%.

Source: Oct 2009 Telegraph.co.uk, Nov 2009 Ezineaticles.com, Sep 2009 VisitEngland's 'UKTS', Aug 2009 Sky News

Holidays remain a top priority despite consumers becoming more cost conscious 

The cost of travel in the UK and petrol price volatility is likely to be a future problem for domestic tourism. 

2.5 million adults opted to take a full-blown home-based ‘staycation’ – a holiday from their normal routine, but returning to their own home to sleep – in 2009.

16% of consumers agree high rail prices put them off UK holidays. However this percentage has dropped from the 22% recorded in 2007.

Expenditure on holidays takes a nosedive
Earlier in the year research from travel specialist Arkenford reported that nearly three quarters of the UK population (73%) would be reducing spend on their holidays in 2009. This was far more than recent research has suggested. It was also revealed that only 11% of accommodation and travel is now booked through third party web sites (less than the 14 -15% booked via travel agents).

"These figures are a reflection of the times – people are downsizing and also becoming increasingly independent – and will be food for thought for many operators." Ben Moxon, Director of Arkenford
 

According to Mintel the growth of Domestic Tourism in terms of value has lagged, as stay-at-home holidaymakers have spent less, forcing many operators and hoteliers to discount. Budget breaks and attractions have benefited the most.

Source: Dec 2009 Mintel 'Domestic Tourism', June 2009 Arkenford’s Travel Navigator, Nov 2009 Caterer & Hotelkeeper

More expensive for Britons to travel abroad

A continued unfavourable pound to euro and with the UK still officially in recession the predictions of tourists shunning foreign climates for more homely pleasures have proved correct. Outbound travel during the first three quarters of 2009 has dropped by -15% with a -18% drop in spend abroad.

Source: Sep 2009 VisitEngland's 'UK Tourism Survey'

Lack of a British "barbecue summer" drives a surge of sun seeker abroad

Early predictions of a "barbecue summer" helped drive the trend for a so-called "staycation" with millions of people opting to remain in Britain this year. But disappointing weather later drove many to snap up last-minute offers.

Official figures confirm a 'staycation' summer with 13 million visits by UK residents to Europe in April, May and June compared to 14.9 million during the same period in 2008. The number of visits to North America fell from 1.2 million to 930,000 during the same period.

However the figures do not take into account what appears to have been a surge in demand for holiday travel in late July and August when the hot summer that was predicted stubbornly refused to appear.
Heathrow had its third busiest month ever in July with 6.48 million passengers.

Gatwick, one of Britain's main bucket and spade airports, showed a sharp rise in traffic to European sunshine destinations in July with a 5.8 per cent rise in passengers in the previous month.
Even Stansted, which has had a tough year, also showed signs of recovery in July with the airport seeing the annual decline drop sharply compared to the previous month.
The Association of British Travel Agents (ABTA) saw a 30 per cent increase in summer bookings for the last two weeks of July.

Travel website Hotelly.com saw a sharp rise in holiday bookings as Brits looked for trips abroad last winter. October bookings increased by 41 per cent as holidaymakers searched for warmer climates at some of the top winter sun destinations including Egypt, Turkey and the Canary Islands.

"Poor weather in July, together with the revised Met Office summer forecast, has seen many UK travellers switch their plans from domestic to international."

Chris Lee, Head of Travel at Barclays Commercial.
 

According to Alex Christou, head of travel at the management consultants Accenture, the late surge in demand has also masked a change in holiday patterns.

Quarter of Brits will haggle over price with travel agents - Figures from the first Visa Europe Holiday Report reflect news from travel agents that consumers have become even more focused on haggling to get a good deal due to the recession. The report, which surveyed just over 1,000 holidaymakers online between the end of May and the beginning of June, reported 35% of Brits were planning at least two holidays this year, and 60% choosing a beach-based break.

"It looks like people are saving to have their holiday abroad, with the notion that holidays are sacrosanct. Interestingly, it disputes the 'staycation' idea as it shows people are going [abroad] on holiday. While camping in the UK is having a renaissance, it's not a seismic shift, but people are being less frivolous and ensuring they get value for money."

Euan Ballantyne, Head of products and delivery at Visa Europe 

Source: July 2009 TravelWeekly.com, #1 Aug 2009 Telegraph.co.uk,

#2 Aug 2009 Telegraph.co.uk, Nov 2009 Tenerife News

Britons leave Europe behind
The costly euro has forced British holidaymakers to look at long-haul bargains. Kenya, South Africa, China and Indonesia have experienced record increases in currency sales this summer as Britons look beyond the eurozone for good-value holidays.

Research by the Post Office confirms the trend of Britons increasingly to book breaks to long-haul destinations. Eight of the 10 biggest rises in currency sales were to long-haul destinations.

Britons have returned to Kenya in growing numbers. Sales of the Kenyan shilling are up by 73 per cent from June-August, compared with the same period last year.
Cut-price packages to Bali and Thailand have resulted in the sales of the relevant currencies increase by 54 per cent and 26 per cent respectively this summer.

China has begun to reap the benefits of its Olympic investment, with Britons buying 27 per cent more yuan than last summer – when the Games saw hotel rates rise to record highs in Beijing and beyond.

The biggest declines have been in Eastern Europe, with sales of the Hungarian, Czech aJaulgarian currencies falling by up to a third.

Source: 4 September 2009 Telegraph.co.uk

53 hotel companies went bust during April to June 2009

As the effect of the recession took hold, with business trips down by -7% for the first three quarters of 2009, many hotel companies across the country have felt the squeeze despite a +17% increase in "pure holiday" trips. For the first half of 2009 UK hotels as a whole saw a 16% fall in average room prices.

Consumer perception of UK accommodation being too expensive has dropped

Consumer research by Mintel reports 30% of respondents agreed that ‘accommodation in the UK is too expensive.’ This represents a seven percentage point reduction from the previous survey in 2007.

"Every economic crisis has a silver lining." In the last quarter of 2009 'The Lonely Planet' guide gave a boost to our country's capital by naming London one of the top 10 best-value destinations in the world.

"London has become much more affordable for visitors from abroad, if not for its residents."

Tom Hall, Lonely Planet travel editor

Source: Dec 2009 Mintel, Sep 2009 VisitEngland's 'UK Tourism Survey', Nov 2009 www.DailyMail.co.uk

VisitBritain predicts a year of growth for 2010

VisitBritain forecasts a slight rise of 0.8% in the volume of inbound tourism to 30.4million, with inbound visitor spending rising to £17.1 billion, an increase of nearly 4% on 2009. If sterling remains weak VisitBritain predicts we could see a steeper increase in visitor spending than expected.
 

“These figures from the International Passenger Survey, and VisitBritain’s forecasts, suggest that Britain’s tourism is now heading back in the right direction and whilst conditions will still be tough, we believe that the exchange rate will make Britain attractive and offer exceptional value for the new year.”

Sandie Dawe, Chief Executive of VisitBritain

Sterling is set for another rocky year on the international exchange markets
“All the indications are that the pound is not likely to increase against the euro, indeed, if interest rates are raised [in the UK] it is possible that it may even succumb to parity.”

Colin Heal, Chairman of Worldchoice

David Edwards from VisitBritain, speaking at the Tourism Society Prospects for 2010, said ongoing currency problems could help drive domestic tourism this year following its success last year. In 2009, 20 million Brits took a domestic break compared with eight million in 2007.

“Domestic tourism will remain strong, but we’ll need to really stay on top of it if we are to beat the exceptional growth we saw in 2009.”

David Edwards, Head of Research and Forecasting at VisitBritian.

Source: December 2009 The Drum, January 2010 www.travelweekly.co.uk

Push staycations or lose business in 2010, says Hoseasons boss

According to Mintel a return of financial and job market security should release some pent-up demand for trips abroad; with domestic holidays suffering as a result. In the UK, the short break segment should continue to lead the market with further ABC1 growth in lifestyle-oriented short trips and ‘nano-breaks’ with an experiential, gently active, de-stress or self-improvement dimension.

Chairman of Worldchoice, Colin Heal speaking at the 'Tourism Society Prospects for 2010' event, commented that trading will remain difficult in 2010 for agents with the economy, unemployment and the looming general election all depressing the market.
 

Travel agents need to plan to maximise the opportunities of the 'staycation' during 2010 or they risk losing business, Hoseasons chief executive Richard Carrick has warned. He claims agents need to adapt if they are to take advantage of the "seismic shift" in holiday habits. The warning comes after a YouGov poll in last weekend's Sunday Times showed that 54% of Britons plan to take their main holiday at home in 2010.

UK holidays are expected to remain at least as popular in 2010 as last year

The YouGov poll for the Sunday Times also showed that only 11% of Brits who have already booked a domestic break are planning an overseas holiday in 2010. Booking figures from Hoseasons demonstrate that more consumers have already made a firm financial commitment to stay in the UK in 2010.

"Our UK bookings for 2010 are up 51.6% against this time last year. The good news is that the increase is 65.4% in the trade, which shows that travel agents have started to take on board the message that the UK can be good business."

Richard Carrick, Chief executive of Hoseasons
 

“One of the interesting trends we’ve noticed is that many of the bookings are for shorter breaks and that people are staying closer to home, choosing to holiday near to friends and family to combine visits with holidays.
 

“Given that we sell to over one million customers a year, our figures are a good barometer for the UK self-catering industry as a whole and they show that in 2010 the UK is set to be as popular, if not more, than in 2009.”

Richard Carrick, Chief executive of Hoseasons

Source: Dec 2009 Mintel, Dec 2009 The Drum, #1 Jan 2010 Travel Weekly,

#2 August 2009 Travel Weekly, Jan 2010 Travel Mole

Short breaks are making a return in popularity

In a poll of more than 2,000 people taken by PricewaterhouseCoopers in December, found a fifth of respondents core priority this year was focused on paying off debts on credit cards, loans and overdrafts.

However, short breaks are making a return in popularity, moving from eighth place last year to sixth place this year in the poll of priority spends.

"Early sentiment indicates that the travel trade expects summer 2010 to be broadly flat with 2009 – although there remains a concern about how some consumer groups will finance their main holiday, as average spend per family on an annual holiday now reaches into the thousands.”

“Last year we saw a big shift to late booking, due to uncertainty over job prospects. But this year there may be a switch back, as the lack of capacity last summer meant decent late deals were few and far between.
 

“Those consumers who left it too late might be tempted to book earlier especially if operators promote deals sooner rather than later.”

David Trunkfield, Leisure Director of PricewaterhouseCoopers
 

Source: 5 January 2010 TravelWeekly

Holidaymakers turning their backs on domestic breaks
According to the poll of 3,000 consumers by travel site SimonSeeks.com, over half (56%) of those who holidayed in the UK this year are turning their backs on the staycation and are planning to escape to destinations including Spain, USA and France during 2010.

Of those going abroad, 41% will cut back on this year’s holiday budget, saving an average of £391.
Half of respondents would cut back on entertainment and going out for a year to fund their trip away and the same number of women would wear last year’s winter wardrobe to save the money.
Another four in 10 said they would work overtime to pay for the holiday, 14 per cent will ditch home improvements and 41% will start taking a packed lunch to work.
 

The survey also found that holidaymakers will spend an average of five days researching and comparing prices before booking their holiday. Two-thirds would be happy to wait until the last minute to book if it meant a cheaper deal.

“The research reveals a real determination to travel - especially among those who didn’t take a holiday overseas in 2009. Staycation was the buzz word of 2009 but it seems that 2010 is will be more about a compromise culture, with people giving up short terms benefits to ensure they can afford that holiday abroad.”

Chris Nixon, Commerical Director of SimonSeeks.com

Source: 28 December 2009 www.travelweekly.co.uk

Agents 'cautiously optimistic' about summer sales abroad
Agents are “cautiously optimistic” about summer holiday sales at the start of the peak period. Advantage saw sales of summer 2010 packages increase 20% for the first week after Christmas, partially driven by a 40% increase for eastern Mediterranean sales.
 

“The enquiry levels are up and agents are very positive as the conversions are there in very significant numbers.”

Julia Lo Bue-Said, Commercial Director of Advantage Travel Centres

Worldchoice said pricing was holding up, with an average booking price after 29th December 2009 of £1,000 per person, up from £570 last year.
“Flight-only and cruise did well and represented more than half of the bookings.”

Bill Pickering, Operations Director of Worldchoice

“We are up around 70% year on year so far. There are a lot of bargains out there and people are taking advantage. It has been all summer holidays so far, no late winter bookings. Turkey and Egypt are very busy and all-inclusive is ahead of everything else.”

Johnny Pollard, Commercial Director of On the Beach

Despite some positive reports, a note of caution came from a consumer survey for Travel Weekly by market research company TNS. It revealed that almost four in 10 customers do not plan to take a holiday in 2010. Of those planning a holiday, half said they would take only one trip, while just one in five will take three or more.

Source: 7 January 2010 TravelWeekly