Market Review 2010

17th Edition September 2010 Edited by Lucy Capstick ISBN 978-1-84729-663-4

Travel & Tourism Market

Travel & Tourism Market

Foreword

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Travel & Tourism Market

Contents

Contents
Executive Summary 1. Industry Overview 1 2

REPORT COVERAGE....................................................................................................................2
Definitions.......................................................................................................................................2

REPORT BACKGROUND.............................................................................................................2 ECOMONIC TRENDS....................................................................................................................3
Population.......................................................................................................................................3 Table 1.1: UK Resident Population Estimates by Sex (000), Mid-Years 2005-2009...........3 Gross Domestic Product................................................................................................................4 Table 1.2: UK Gross Domestic Product at Current and Annual Chain-Linked Prices (£m), 2005-2009..............................................................................................................................4 Inflation...........................................................................................................................................4 Table 1.3: UK Rate of Inflation (%), 2005-2009.......................................................................5 Unemployment...............................................................................................................................5 Table 1.4: Actual Number of Unemployed Persons in the UK (million), 2005-2009.........5 Household Disposable Income....................................................................................................5 Table 1.5: UK Household Disposable Income Per Capita (£), 2005-2009............................6

MARKET SIZE.................................................................................................................................6
By Value ..........................................................................................................................................6 Table 1.6: The Total UK Travel and Tourism Market by Value (£m), 2005-2009...............6 Figure 1.1: The Total UK Travel and Tourism Market by Value (£m), 2005-2009.............8 By Volume.......................................................................................................................................8 Table 1.7: The Total UK Travel and Tourism Market by Number of Trips (000), 2005-2009........................................................................................................................................9 Figure 1.2: The Total UK Travel and Tourism Market by Number of Trips (000), 2005-2009......................................................................................................................................10 Number of Bed Nights................................................................................................................10 Table 1.8: The Total UK Travel and Tourism Market by Number of Bed Nights (million), 2005-2009.....................................................................................................................11 Figure 1.3: The Total UK Travel and Tourism Market by Number of Bed Nights (million), 2005-2009.....................................................................................................................12

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Travel & Tourism Market

Contents

MARKET SEGMENTATION......................................................................................................12
Table 1.9: The Total UK Travel and Tourism Market by Sector by Value and Volume (£m, 000, million and %), 2009.................................................................................................13 Table 1:10: The UK Travel and Tourism Market by Average Expenditure per Trip and Per Bed Night, and Average Number of Bed Nights per Trip (£ and number), 2009........................................................................14 UK Tourism....................................................................................................................................14 Table 1.11: The UK Tourism Market by Sector by Value and Volume (£m, 000, million and %), 2005-2009.......................................................................................15 Internal Tourism...........................................................................................................................16 Table 1.12: The UK Internal Tourism Market by Sector by Value and Volume (£m, 000, million and %), 2005-2009.......................................................................................16 International Tourism.................................................................................................................18 Table 1.13: The UK International Tourism Market by Sector by Value and Volume (£m, 000, million and %), 2005-2009.......................................................................................18

INDUSTRY STRUCTURE............................................................................................................20
Concentration...............................................................................................................................20 Table 1.14: Estimated Market Shares of the Three Leading Companies in Selected Areas of the UK Travel and Tourism Market (%), 2010.......................................................20 Number of UK Businesses...........................................................................................................21 Transport Providers......................................................................................................................21 Table 1.15: Number of UK VAT- and/or PAYE-Based Enterprises Engaged in Urban and Suburban Passenger Land Transport by Turnover Sizeband (£000 and number), 2005-2009.................................................................................................21 Table 1.16: Number of UK VAT- and/or PAYE-Based Enterprises Engaged in Passenger Air Transport by Turnover Sizeband (£000 and number), 2009.................22 Table 1.17: Number of UK VAT- and/or PAYE-Based Enterprises Engaged in Rail Transport by Turnover Sizeband (£000 and number), 2009................................................23 Table 1.18: Number of UK VAT- and/or PAYE-Based Enterprises Engaged in Sea and Coastal Passenger Water Transport and Inland Passenger Water Transport by Turnover Sizeband (£000 and number), 2009...................................................................23 Accommodation Providers.........................................................................................................24 Table 1.19: Number of UK VAT- and/or PAYE-Based Enterprises Engaged as Hotels and Similar Accommodation, by Turnover Sizeband (£000 and number), 2005-2009......................................................................................................................................25 Table 1.20: Number of UK VAT- and/or PAYE-Based Enterprises Engaged in the Provision of Holiday and Other Short-Stay Accommodation by Turnover Sizeband (£000 and number), 2009..........................................................................................26 Travel Agents and Tour Operators...........................................................................................26 Table 1.21: Number of UK VAT- and/or PAYE-Based Enterprises Engaged as Travel Agencies, Tour Operators and Other Reservation Service and Related Activities by Turnover Sizeband (£000 and number), 2005-2009........................................................27

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.....................................................................................35 The Air Travel Insolvency Protection Advisory Committee...................35 KEY TRADE ASSOCIATIONS................................................39 UKinbound..................27 Table 1......................................................................................................................................33 Airports...36 Association of Independent Tour Operators.....22: Number of UK Employee Jobs in the Hotels and Restaurants...............................................37 Civil Aviation Authority............................................................................................... Air Transport and Water Transport Sectors (000)...................................................................Travel & Tourism Market Contents Employment......................................................................................32 Development of Tourism Act 1969 .............................39 Passenger Shipping Association.......................................38 International Air Transport Association.....................................................................23: The UK Outbound Holiday Market by Type of Arrangement by Volume (%)...........................................................................................................................................34 Air Transportation................................................................33 Outbound Market.........................................................................................28 Distribution....28 MARKET POSITION...............................................................................................................................................28 Table 1................................................................................................................................................................................................................37 European Low Fares Airline Association....................................................38 International Civil Aviation Organization................36 Airport Operators Association..................................................................36 British Air Transport Association....................................................................................29 Table 1...................................................................................................................... 2010............................31 LEGISLATION................................................................................36 Association of European Airlines...............................34 Sea Passenger Transportation..........................................................................................................................................................................................................24: Countries Expected To Produce the Largest Amount of Travel and Tourism Gross Domestic Product ($bn and %)..............................................................................35 Air Transport Users Council................................................................................................................................................................37 Guild of European Business Travel Agents....... 2005-2009............................ Travel Agents.................................................................................................................................................................................................................40 World Travel & Tourism Council.. 2005-2009.................................................................................29 KEY TRENDS............................................................................................................................................................................................................30 Corporate Activity....................................................38 Guild of Travel Management Companies...............................................34 Bus and Coach..................................................................................................................................................40 © Key Note Ltd 2010 ......................................................................................................................................................................................................39 World Tourism Organization......39 The Travel Association...........................................................................................................................35 Airports Council International.........

................................. PEST Analysis 41 POLITICAL FACTORS......43 ECONOMIC FACTORS......................................................7bn........................44 The Collapse of Goldtrail Travel Ltd......................................................44 Volcano Crisis Cost Airlines $1...............................................................................................................................................................................................................................................................................................................................................................................................................48 CAA to be given new duty to help passengers..........................................................................................................................................................47 Holidaymakers Urged To Go Greener..........................................................................................................................................................44 Government Advises Operators to Foot the Ash Bill.................................45 Association of Independent Tour Operators Puts Pressure on ’Rogue Traders’..........................................................................................41 Air Travel Insolvency Protection Advisory Committee Urges Adoption of ‘Flight Plus’ Air Travel Organisers’ Licence..........................................48 The introduction of Advanced Imaging Technology...........48 Bus Users Get Mobile with Arriva M-Ticketing Launch........................................................50 easyJet Unveils Ash Detector Plan......................................................46 Cruise and ferry firms oppose new crew salary rules.....................45 Visit London Saved from Grant Cut...................................................................................................................................................................................................................................................................................................................................................................................46 Industrial Actions Continue to Affect Air Travel Sector..................46 SOCIAL................................42 The Package Travel Directive..............................................................................42 Ferry Operators in Disagreement with Dover Harbour Board...................................49 Dreamliner Visits the UK.41 Government Needs To Expand Airports ..........47 Greener Journeys Campaign ...............................41 Air Passenger Duty.................................................................50 © Key Note Ltd 2010 ..............42 BAA Wins Appeal Over Airports Break-Up.........................................48 TECHNICAL................................................................................................................................Travel & Tourism Market Contents 2......................................

........................58 TYPE OF ACCOMMODATION....Travel & Tourism Market Contents 3......................................................................................................................11: Total Cost of Most Recent Holiday or Short Break Taken in the Last 12 Months (% of adults).......................................................60 Table 3..................................................................56 Table 3...59 Table 3............8: Type of Accommodation Used for the Most Recent Holiday or Short Break Taken in the Last 12 Months (% of adults)............ September 2009........52 By Socio-Demographic Group..............61 © Key Note Ltd 2010 .................................................................................................................................................................................6: How Far in Advance the Booking was Made for the Most Recent Holiday or Short Break Taken in the Last 12 Months (% of adults)..................... September 2009.......................................4: Sources Used to Obtain Information for the Most Recent Holiday or Short Break Taken in the Last 12 Months (% of adults).2: Number of Holidays and Short Breaks Taken in the British Isles and Abroad in the Last 12 Months (% of adults)............................................................................51 Table 3.52 Table 3................................................................................... September 2010................... Years Ending March 2005-2008 and September 2009..............56 METHOD OF TRAVEL.......................9: Most Recent Holiday or Short Break Taken in the Last 12 Months — Type of Holiday (% of adults)....... September 2009.....................................................................................................................................................................1: Penetration of Holidays in the Last 12 Months (% of adults)............. September 2009....... September 2009..........................61 Table 3............5: Method of Booking the Most Recent Holiday or Short Break Taken in the Last 12 Months (% of adults)...........................................................................60 LENGTH OF STAY...........54 Table 3..................................................................................................................................................................3: Penetration of Holidays in the British Isles or Abroad in the Last 12 Months by Number of Holidays and Socio-Demographic Group (% of adults)..........7: Main Mode of Travel Used for the Most Recent Holiday or Short Break Taken in the Last 12 Months (% of adults)..................................53 PLANNING A HOLIDAY.............. September 2009..........................10: Most Recent Holiday or Short Break Taken in the Last 12 Months — Length of Stay (% of adults).... September 2009...............51 Table 3.55 Table 3............. September 2009 .....................................................................................................59 TYPE OF HOLIDAY.. Consumer Research 51 INTRODUCTION...................................61 COST OF HOLIDAY.....................................................................................................55 BOOKING A HOLIDAY..................................................................................................51 NUMBER OF HOLIDAYS TAKEN..58 Table 3.....57 Table 3..................................... September 2009 ................................................

.68 Other Companies.....................67 Financial Results.........................................................................................................65 National Express Group PLC..........................................................................................................70 © Key Note Ltd 2010 ....2: Main Media Advertising Expenditure by the Main Sectors in the Travel and Tourism Industry (£000)................................................63 Company Structure..............................................69 Table 4.................................................................................................................................................63 Table 4...................................................................................................................................................63 British Airways PLC................................64 Company Structure.................65 Financial Results................................................. Competitive Structure 63 THE MARKETPLACE..................................................66 Financial Results..............................................................................................................................................................69 MARKETING ACTIVITY....................................................................................................................................................................................................... Years Ending March 2006-2010..........................................................................................................................................................................69 Outside Suppliers.............................................1: Leaders in the UK Travel and Tourism Industry by Market and Industry Sector.66 Company Structure........................................................................................................................................................67 Company Structure.........................66 P&O Ferries Ltd...............................................................................................................................................................................................63 MARKET LEADERS........................................................................................................64 FirstGroup PLC............................................................67 Company Structure............................................................................................................................65 Company Structure.................... 2010......................................................................................................................................................................................................................................................67 Thomson Airways Ltd......................................................................................67 Financial Results..........................67 TUI Travel PLC........................................................63 Financial Results...............................................................................................................................................................................................................................................................64 Financial Results.......................................................................................................................................................................................................Travel & Tourism Market Contents 4.................................

...................... 2005-2009.............................................................................82 SUPPLY STRUCTURE.....................................85 © Key Note Ltd 2010 .... 2005-2009........................................................................................................... 2005-2009.76 Table 5.................. million and %)...............................................................73 Figure 5..78 By Mode of Transport......................................................77 By Destination.................................................. July 2010.....................................................................................................................................................................................84 Train Operators........................................1: The UK Domestic Travel and Tourism Market by Value and Volume (£m.........79 Table 5........83 Transport Operators.....................................................................................................................11: Leading Bus Operators in the UK by Estimated Size of Fleet (number and %)....................... 2005-2009...............................................................................................8: The UK Domestic Travel and Tourism Market — Serviced Accommodation Occupancy by Type of Establishment (%)....................................................................................................................1: The UK Domestic Travel and Tourism Market by Number of Trips (000)..........................................................79 Occupancy by Type of Establishment .....................................................................................................75 Table 5.....................72 MARKET SIZE........................................2: The UK Domestic Travel and Tourism Market by Purpose of Trip by Value (£m and %)............................5: The UK Domestic Travel and Tourism Market — Expenditure.............................79 By Type of Accommodation.........................................................................10: The UK Domestic Travel and Tourism Market by Type of Accommodation (% of expenditure)................................................................................................... 2005-2009.......................................................................................... 000 and million)...7: The UK Domestic Travel and Tourism Market — Serviced Accommodation Occupancy by Country (%)...............3: The UK Domestic Travel and Tourism Market by Purpose of Trip by Volume (million and %)...................................................................................................................................... 2009.................................................... Number of Trips and Number of Bed Nights by Season of Stay (£m............................ 2005-2009..............................73 Table 5....................................................................78 Table 5.......................6: The UK Domestic Travel and Tourism Market by Mode of Transport (% of trips).............................12: Passenger Train-Operating Companies in Great Britain................................................................................. million and %).................. 2009..83 Table 5..............74 By Purpose of Trip......................84 Table 5.......................9: The UK Domestic Travel and Tourism Market by Type of Accommodation (% of trips)......................................... 2005-2009.................................................72 KEY TRENDS..............................................................74 Table 5............................................................................................81 Table 5..81 Table 5..................................................................... July 2010.................................... 2005-2009....... Number of Trips and Number of Bed Nights by Region of Residence (£m......................4: The UK Domestic Travel and Tourism Market — Expenditure.83 Bus and Coach Operators.... The Domestic Market 72 DEFINITION..................................................................... 2005-2009..................84 Train-Operating Companies..........76 By Season.......................................................80 Table 5...................................................77 Table 5...........................Travel & Tourism Market Contents 5.............

..................87 Table 5....................................................................................... 2005-2009.....................97 Table 5..........................................................................................................................91 De Vere Hotels & Leisure Ltd...................................................................................................14: Selected Hotel Chains by Estimated Number of Outlets................................................................................................................................................................................................................................................................................................ Years Ending March 2006-2010.....................................................................88 The Go-Ahead Group PLC..........88 MAJOR PLAYERS..............................................................................................................94 Table 5.....................................................................................................................................................................87 Table 5.........................................92 Other Accommodation Providers.................88 Bus and Coach Operators...............................................17: Main Media Advertising Expenditure by UK Hotels (£000)...............................................................................97 Holiday Camps............92 Premier Inn Hotels Ltd........................89 Stagecoach Group PLC.................................................................................................................................................... Years Ending March 2006-2010................................................................................................................................................................95 Table 5....................................16: Main Media Advertising Expenditure by Train Operators (£000).............................................................................................96 Table 5..........................................................................................................91 Intercontinental Hotels Group PLC...............................92 Thistle Hotels.............................................90 Accor UK ..........................................................................................................................................90 Accommodation Providers — Hotels...................95 Hotels...............90 Choice Hotels Europe ................................................13: Domestic Air Passengers Uplifted on Scheduled and Non-Scheduled Services in the UK (000).............................................................................................................94 Bus and Coach Operators ........................................................................................................................15: Main Media Advertising Expenditure by UK Bus and Coach Operators (£000)........................................................................................................87 Accommodation Providers.............................................................Travel & Tourism Market Contents Domestic Air Travel............91 Hilton International Hotels (UK) Ltd..............................................93 MARKETING ACTIVITY..............................18: Main Media Advertising Expenditure by Holiday Resorts (£000).........98 © Key Note Ltd 2010 ......................94 Train Operators..................................................................................................................................................................................................................................88 Arriva PLC................................................................................................................................................................................................ Years Ending March 2006-2010.................................................... 2010.................................................................................................................................................................93 The Hoseasons Group Ltd......................................................92 Travelodge Hotels Ltd............................................................90 Best Western Great Britain........................93 Holidaybreak PLC............91 Jarvis Hotels Ltd..................... Years Ending March 2006-2010.................................................................................................................................................................................93 Bourne Leisure Group Ltd.....................................

..........................................116 By Type of Arrangement...............................................................................................................Travel & Tourism Market Contents BUYING BEHAVIOUR.........114 Table 6.............................................................................................................................................................. 000 and million)....................................................................................................20: Profile of One.... Two and Three or More Holidays.............1: The UK Outbound Travel and Tourism Market by Value..............109 MARKET SIZE............. 2005-2009 ................. 2005-2009..................111 By Purpose of Trip.........................................................................................................................................................................................................117 © Key Note Ltd 2010 ............. 2005-2009..........117 Table 6........109 Table 6.....................................................................110 Figure 6.............................................................................................19: The UK Domestic Travel and Tourism Market — Share of Expenditure......................................................................................2: The Forecast UK Domestic Travel and Tourism Market by Value (£m).103 Table 5......105 Table 5.......................................................112 Table 6............................21: Penetration of Hotel Stays............2: The UK Outbound Travel and Tourism Market by Purpose of Trip by Volume (000 and %)........................................................................................................104 FORECASTS 2010 TO 2014....................................... September 2009........................115 By Mode of Transport...................................................................................................................................................................................................................100 Penetration of Domestic Hotel Stays..........................................................................6: The UK Outbound Holiday Market by Type of Arrangement and Mode of Transport by Volume (000 trips and %)............106 Figure 5......... The Outbound Market 107 DEFINITION...111 Table 6.101 Table 5...1: The UK Outbound Travel and Tourism Market by Value and Volume (£m........................ 2010-2014.......................102 Penetration of Domestic Air Travel...........107 Mode of Transport......22: Number of Separate Air Trips Made in the UK in the Last 12 Months by Sex....................................................................................................................... 2010-2014............................................................107 Purpose of Trip..................................98 Table 5...5: The UK Outbound Travel and Tourism Market by Mode of Transport (000 trips).. 000 and million)............................................................................................................................................ Social Grade and Region of Residence (% of adults)....23: The Forecast UK Domestic Travel and Tourism Market by Value and Volume (£m.................... Age..............99 Table 5.............................................................116 Table 6...................................................................................108 Type of Arrangement..............................................3: The UK Outbound Travel and Tourism Market by Purpose of Trip by Main Regional Destination (000 trips and %)..........................................................107 Country of Destination...........99 Profile of Domestic Holidays...........................................113 By Destination.......................................................................................................................... 2009............................................................................................................................................................106 6......................................... 2005-2009.....................................................................4: The UK Outbound Travel and Tourism Market by Country of Destination by Volume (000 trips)........................................................................ Trips and Bed Nights by Age Group and Social Grade (%)... 2009 .............................................108 KEY TRENDS........... 2005-2009...........

......................14: Main Media Advertising Expenditure by Overseas Tour Operators (£000).......... Years Ending March 2006-2010.......................129 MARKETING ACTIVITY......133 Table 6.............129 Table 6..................................123 Figure 6............ 2009.....................................................13: Main Media Advertising Expenditure By Companies Engaged in the Outbound Travel and Tourism Market (£000)...............................................................................................................................9: Number of ABTA-Registered Tour Operators in the UK and Average Number of Package Holidays Sold (number and 000)................128 Monarch Airlines Ltd........................................................................................................................................................... 2005-2009..............................................................................................................127 Scheduled and Charter Airlines.............................................16: Main Media Advertising Expenditure by Online Travel Agents (£000)............ 2005-2009........................................................130 Tour Operators............................127 Thomas Cook Group PLC................... 2005-2009..................................................................122 Travel Agents.............................................................................................................................................17: Profile of One.................................................................................... Years Ending March 2006-2010.......................................................................134 FORECASTS 2010 TO 2014...........................................................................................................2: UK Travel Agents by Number of Branches.................. Year Ending July 2006-2010............121 Table 6....................15: Main Media Advertising Expenditure by Travel Agents (£000)...........................................120 SUPPLY STRUCTURE.....132 Online Travel Agents........................................................................................................................................... Year Ending July 2006-2010..................133 BUYING BEHAVIOUR..........128 easyJet Airline Company Ltd...... Two and Three or More Holidays.............................................130 Table 6...........................132 Table 6................................................7: The UK Open-Sea Cruise Market by Type of Cruise and Destination by Volume (000 passengers).........................................12: UK Airlines by Available Seat Capacity and Seat Capacity Used (000 seat kilometres and %)..................................................................................................128 Thomas Cook Airlines Ltd..................................124 Table 6............... Years Ending March 2006-2010......136 © Key Note Ltd 2010 .....................126 MAJOR PLAYERS..............................................................................Travel & Tourism Market Contents The Cruises Market....................................................18: The Forecast UK Outbound Travel and Tourism Market by Value and Volume (£m...................131 Travel Agents....................................................................................................................................................8: The UK Open-Sea Cruise Market by Main Destination by Volume (000 passengers)..118 Table 6.........................119 Table 6...........124 Table 6............................................................................................................. 000 and million)................. 2010-2014............................................121 Tour Operators..................................126 Tour Operators ............................................................. 2005-2009.............10: The UK’s Leading Travel Agents by Estimated Number of Branches (number and %)....................11: Number of Aircraft in Service with UK Airlines...........................................................................................................................................................................................................................................131 Table 6....................................................................................................................................................................................124 Airlines............................................................................................... Years Ending March 2006-2010..................................................................................122 Table 6....................135 Table 6......................................................................

..............................3: The UK Inbound Travel and Tourism Market by Purpose of Trip by Region of Origin by Volume (000 trips and %)..................147 Table 7............... 2005-2009.........................................................146 By Type of Arrangement................................Travel & Tourism Market Contents 7.......................... 2005-2009.........................152 © Key Note Ltd 2010 ................................................................ 000 and million).....................138 MARKET SIZE...........147 Table 7.1: The UK Inbound Travel and Tourism Market by Value and Volume (£m.............................................................. 2005-2009...........................................................151 Table 7.. 2005-2009...6: The UK Inbound Travel and Tourism Market by Mode of Transport by Volume (000 trips)............................141 By Purpose of Trip........................................................10: Average Expenditure per Trip..........................................141 Table 7............................... 2005-2009........................................................138 KEY TRENDS..........................146 Table 7.................................... Years Ending March 2006-2010............11: Average Expenditure per Trip..........................................................139 Table 7........................................................................................................................................................................................................................................................................................................144 By Country of Origin.................................................................................................................................149 Table 7..............151 Table 7........................................................................ The Inbound Market 137 DEFINITION... 2005-2009.......2: The UK Inbound Travel and Tourism Market by Purpose of Trip by Volume (000 and %)......... Average Length of Stay and Average Expenditure per Bed Night by Overseas Visitors to the UK (£ and number of bed nights).....................................137 By Mode of Transport.................4: The UK Inbound Travel and Tourism Market by Type of Trip by Volume (000 trips and %)...............145 By Mode of Transport.............8: The UK Inbound Holiday Market by Type of Arrangement and Region of Origin by Volume (000 trips and %)............................143 Table 7.............149 MARKETING ACTIVITY...................................................................9: Main Media Advertising Expenditure by UK Tourist Offices (£000)..................... 2007-2009.....................................................................................................137 Country of Origin........................................................................................................150 BUYING BEHAVIOUR...................................................................144 Table 7................1: The UK Inbound Travel and Tourism Market by Value.................................................................... 2005-2009...............................................................................5: The UK Inbound Travel and Tourism Market by Country of Origin by Volume (000 trips and %).........149 SUPPLY STRUCTURE............................142 Table 7...................138 By Type of Arrangement....137 By Purpose of Visit................................................................ 2009..............................................................................7: The UK Inbound Holiday Market by Type of Arrangement and Mode of Transport by Volume (000 trips and %)............................................................................................................................................................................................................................................................................................. 2009.............................................................................. Average Length of Stay and Average Expenditure per Bed Night by Overseas Visitors to the UK by Region of Origin (£ and number of bed nights)...............................................139 Figure 7...............................

.................................9: Worldwide Airport Passengers by Region (000 and %)...167 © Key Note Ltd 2010 ...............160 EUROPEAN AIRLINE MARKET................................12: The Forecast UK Inbound Travel and Tourism Market by Value and Volume (£m.........................................................................................................................................................161 Table 8.........164 THE CRUISE MARKET......................................................................166 GLOBAL TOURIST FORECASTS............... 2008 and 2009......158 Receipts....................................153 Figure 7.......................................... 2008-2009 ..... 000 and million).........................................................................157 By Country............................157 Arrivals.........165 Table 8................................................................................................................................................................................................................... 2009......................................163 Table 8............................156 By Region.........159 Table 8..................................................160 Table 8..163 Table 8...............Travel & Tourism Market Contents FORECASTS 2010 TO 2014....................................... A Global Perspective 155 MARKET VOLUME....163 By Airport................................................... 2008 and 2009....159 AIR PASSENGERS............10: Worldwide Airport Passengers by Airport (000)........................................................................ 2008 and 2009.................. $bn and %)..................................162 AIRPORT PASSENGER NUMBERS.........................................155 Figure 8........................ 2005-2009...... 2009..................................... 2005-2009...........................................................................4: International Tourist Receipts by Country ($bn and %).......6: Revenue Passenger Kilometres Market Shares by Region (%)............................7: Number of Air Transport Passengers and Passenger Kilometres Travelled by Association of European Airlines’ Members on Scheduled Services (million and billion kilometres).11: Number of European Cruise Passengers by Country (000).................................161 Table 8.................................5: Revenue Passenger Kilometres............................................ 2010-2014......... 2005-2009.............158 Table 8..........155 Table 8........... 2005-2009..................................................................................................................................................................................... 2009.............................................................................156 Table 8..... 2009.........................................154 8.......................................................................................................................157 Table 8...........................................................1: International Tourist Arrivals and Receipts (million and $bn)..............................................................................................1: International Tourist Arrivals (millions)...........2: The Forecast UK Inbound Travel and Tourism Market by Value...........................................................152 Table 7.................................2: International Tourist Arrivals and Receipts by Region (million........3: International Tourist Arrivals by Country (million and %)..........................163 By Region.................................................... Available Seat Kilometres Growth and Passenger Load Factor (%).......8: Number of Air Transport Passengers of Association of European Airlines’ Members by Airline (million and %)....................................

.....................................185 © Key Note Ltd 2010 .....................................3: Forecast Actual Number of Unemployed Persons in the UK (millions)................................169 Table 9...............169 Unemployment.............................................................................................................................. 2010-2014.............181 Understanding TGI Data 184 Number..................................................170 FORECASTS 2010 TO 2014......................................Travel & Tourism Market Contents 9.........................................................................................................................................1: Forecast UK Growth in Gross Domestic Product in Real Terms (%)........................174 Publications.............2: Forecast UK Rate of Inflation (%).................................................................................................................................................................................................................168 Table 9............................................................184 Social Grade..............................................................................................................168 The Economy........................................................................ 000 and million)......................................................................................................................................178 Government Sources.............................1: The Forecast UK Travel and Tourism Market by Value..................... 2010-2014............................................................. Penetration......185 Standard Region..........................................................................................................................................................................................170 Table 9................................................................................................................................................................................169 Population............................................................................................................................................................. Profile................................................................................................169 Table 9.... Mid-Years 2010-2014.................................173 Business Travel..179 Key Note Sources ...... 2010-2014...............................................................................................................................................................................168 Gross Domestic Product....................................................................................168 Table 9.........................................................178 Other Sources....................................................173 10.....................................................................................................................177 General Sources.........5: The Forecast UK Travel and Tourism Market by Value and Volume (£m. Further Sources 174 Associations......................171 Figure 9..............................172 FUTURE TRENDS.............. The Future 168 INTRODUCTION..........................172 Package Travel Directive.................................................................................................. 2010-2014................4: Forecast UK Resident Population by Sex (000).................................................................................................................................172 Value of Tourism to the UK Economy Set to Rise...................168 Inflation...................................................

Travel & Tourism Market Contents Key Note Research The Key Note Range of Reports 186 187 © Key Note Ltd 2010 .

5% to £70. The outbound travel and tourism market. while the highest number of trips made was reported in the domestic market. The UK travel and tourism market felt the full force of the UK and global recession in 2009. It has also indicated that it will replace Air Passenger Duty (APD). while the inbound market was hit by falling visitor numbers. In 2009. The forecast improvement in the UK and global economic outlook in 2010 should help to bolster demand.24 billion. total expenditure on UK travel and tourism (combining these three markets) fell by 5. outbound tourism by UK residents travelling abroad. The 2012 London Olympics should provide a welcome boost to both the inbound and domestic sectors of the market.Travel & Tourism Market Executive Summary Executive Summary The UK travel and tourism industry serves three separate markets: domestic tourism by UK residents within the UK. 2010 is expected to be another difficult year for the UK travel and tourism market. In contrast. The ‘flight plus’ system will require ATOL protection for all sales of flights. the domestic travel and tourism market flourished. regardless of the terms and conditions of booking. The Air Travel Insolvency Protection Advisory Committee (ATIPAC) has reiterated its support for the ‘flight plus’ Air Travel Organisers’ Licensing (ATOL) reform proposals. a levy which has resulted in the UK having the highest levels of aviation tax in Europe. such as hotels or car hire.9% to 214. which demonstrated steady annual growth in value terms between 2005 and 2008.4% to 1. was most affected by the downturn. and inbound tourism by overseas residents travelling to the UK. ATIPAC believes that reform of ATOL is long overdue and that the new Government should not miss the opportunity to bring clarity to consumers and to extend financial protection arrangements to a greater number of holidaymakers. which fell by 6. as UK consumers opted for so-called ‘staycation’ holidays in preference to holidaying abroad. Falls were also recorded in the number of trips made. which was down by 1. and in the number of bed nights.17bn. as well as other holiday components. The election of the Coalition Government has already had implications for the travel and tourism industry.5 million. with a per-plane duty (PPD). although the speed and rate of recovery is likely to remain modest and it may be 2011 before the market starts to improve. The Government quickly announced that it will block the building of a third runway at Heathrow airport and prohibit the building of further runways at Gatwick and Stansted airports. © Key Note Ltd 2010 1 . The outbound market is the largest by expenditure and bed nights.

the market enjoyed steady growth between 2005 and 2008. The UNWTO’s definition of international tourism differs slightly from that used by the IPS. © Key Note Ltd 2010 2 . Industry Overview REPORT COVERAGE The UK travel and tourism industry serves three separate markets: • the domestic market — tourism by UK residents within the UK • the outbound market — tourism by UK residents travelling abroad • the inbound market — tourism by overseas residents travelling to the UK. Figures for the outbound and inbound tourism markets are drawn from the International Passenger Survey (IPS). This survey covers all overseas trips lasting up to 1 year.Travel & Tourism Market Industry Overview 1. These three markets are examined in detail in Chapters 5 to 7 of this Market Review. and easy access to. This Market Review also includes some statistics from the World Tourism Organization (UNWTO). plus market-specific factors such as low-cost air travel. REPORT BACKGROUND The UK travel and tourism market is one of the UK’s largest industries and a leading travel and tourism market on both a European and global level. online travel and tourism websites. aided by a supportive UK and global economic climate. Definitions The main source of statistics for the domestic tourism market is the United Kingdom Tourism Survey (UKTS). the popularity of independently organised holidays and the growth of. which is sponsored by the UK’s national tourist boards. In value terms. which is undertaken by National Statistics on behalf of central government. There is particular emphasis on the domestic and outbound markets. including day trips. This survey covers all trips lasting up to 60 days. which involve spending by UK residents. in that day trips are excluded. provided that they involve a stay of at least 1 night away from home.

May 2010/Population Projections Database (2008-based projections). National Statistics website © Crown copyright material is reproduced with the permission of the Controller of HMSO (and the Queen’s Printer for Scotland) © Key Note Ltd 2010 3 .1: UK Resident Population Estimates by Sex (000).238 - 60. an increase of 2.232 30. up from 66. Mid-Years 2005-2009 2005 Female Male 30.497 2006 30. ECOMONIC TRENDS Population The UK population reached a projected 61.3% of British adults took a holiday or short break in the 12 months ending September 2009. The dynamics of the market changed in 2009.6 million people over the 5-year period.916 2008 31.059 29. the outbound and inbound sectors of the travel and tourism market flourished while the domestic sector went through a period of ongoing decline.420 30.694 2007 31. as the worldwide economic recession resulted in a downturn in the outbound and inbound sectors of the market and an upturn in the domestic market.8 million in 2009.893 29.7 61. Although economic growth is set to return in 2010.6% on 2005 and an additional 1. According to Kantar Media’s annual Target Group Index (TGI) survey.975 0.383 0. This was mainly due to UK consumers opting for so-called ‘staycation’ holidays in preference to holidaying abroad. A rising population increases demand for many types of goods and services including travel and tourism.3% who took a holiday in the year ending March 2008. while fewer overseas visitors arrived in the UK.741 29. 69. Table 1.6 60.7 † — taken from Population Projections Database Source: Monthly Digest of Statistics.6 61.Travel & Tourism Market Industry Overview During the period spanning from 2005 to 2008.587 0. however.151 †2009 31.374 Total % change year-on-year 60.794 0. the UK travel and tourism market is expected to remain weak and it may not be until 2011 that growth in the overall market returns.

5 -3.5%. 2005-2009 2005 Current prices % change year-on-year 5.254.5 1.448.3% lower in December 2009 compared to December 2008 and the RPI for passenger transport by air was 0.322. with annual chain-linked gross domestic product (GDP) rising by 5.088 0. the RPI for which was 0.6 1.264. Deflation was a feature of the UK economy in 2009.9 1.795 2007 1. The fall in GDP in 2009 affected most sectors of UK business and industry including some sectors of the travel and tourism market. and the RPI for passenger transport by sea and inland waterways which was 14. with the retail price index (RPI) falling by 4.4% higher in December 2009 than in December 2008. and in 2009.058 2006 1.058 - 1.872 Annual chainlinked GDP % change year-on-year GDP — gross domestic product 1.395.833 2. © Key Note Ltd 2010 4 .2% lower in December 2009 than in December 2008. The start of the global recession in 2008 contributed to annual GDP growth slowing to 0. National Statistics website © Crown copyright material is reproduced with the permission of the Controller of HMSO (and the Queen’s Printer for Scotland) Inflation UK inflation increased steadily between 2005 and 2008.5% over the 3-year period. the ongoing economic downturn resulted in a fall in GDP of 4.2: UK Gross Domestic Product at Current and Annual Chain-Linked Prices (£m). The impact of the recession and falling prices. affected the travel and tourism sector and the RPI for some of the main sectors of the market. Table 1. Sectors of the market for which the RPI rose between 2008 and 2009 included foreign holidays.398. however.325.5 3.289.9 Source: Economic & Labour Market Review.Travel & Tourism Market Industry Overview Gross Domestic Product The UK economy witnessed a strong performance between 2005 and 2007.9%.646 -4.3% higher.5% in that year (in annual chain-linked terms).330.254.391 2009 1. For example.6 1.842 2. the RPI for UK holidays was 0. reaching 4% in 2008.882 2008 1.7 5. May 2010.

495 representing an increase of 14.1 Source: Monthly Digest of Statistics. largely due to the recession. National Statistics website © Crown copyright material is reproduced with the permission of the Controller of HMSO (and the Queen’s Printer for Scotland) Household Disposable Income Per capita household disposable income increased steadily between 2005 and 2009. Source: Monthly Digest of Statistics. with the 2009 total of £15. 2005-2009 2005 Actual number of claimants (million) % change year-on-year 2006 2007 2008 2009 0.3 -4.8 2006 3.95 10.5 0.5 Note: inflation is at retail price index (RPI). May 2010. Table 1. © Key Note Ltd 2010 5 . May 2010.0 2009 -0.8 1.4 1. This sharp rise in unemployment is likely to have affected consumer confidence and consumer expenditure and contributed to the downturn in the outbound travel and tourism market in 2009.4: Actual Number of Unemployed Persons in the UK (million). 2005-2009 2005 Inflation (%) Percentage point change year-on-year 0.53 68.3: UK Rate of Inflation (%).1 -0.5 0.91 5.2% over the 5-year review period.3 2008 4.Travel & Tourism Market Industry Overview Table 1. Increasing levels of disposable income have contributed to rising consumer expenditure on a wide range of goods and services including travel and tourism.2 2007 4.53 million claimants in 2009.1%) to 1.5 2. National Statistics website © Crown copyright material is reproduced with the permission of the Controller of HMSO (and the Queen’s Printer for Scotland) Unemployment Unemployment in the UK increased by more than two-thirds (68.86 - 0.86 -9.

907 4.013 15. with receipts from outbound travel and tourism declining by 14% compared to 2008 figures.154 14. the second-largest segment.Travel & Tourism Market Industry Overview Table 1. a 3.572 - 13..592 Table continues.8 14.9 Source: Economic & Labour Market Review.002 2007 21. 2005-2009 2005 Domestic Outbound† Inbound† 22.7 14. a 5.0 15. May 2010. Table 1.5% reduction on 2008.. The UK continues to operate a trade deficit in travel and tourism although this fell by more than a quarter (26.88bn in 2009. Expenditure on the inbound travel and tourism market was also 1. Outbound travel and tourism is the largest sector of the market with a value of £31.323 2009 21.2% of the market.7% increase on 2008.51bn in 2008.1bn from £20. representing 45.17bn in 2009.6% higher in 2009 at £16.4%) in 2009 to £15.6: The Total UK Travel and Tourism Market by Value (£m).59bn.238 35. © Key Note Ltd 2010 6 . However. 2005-2009 2005 Household disposable income (£) % change year-on-year 2006 2007 2008 2009 13.838 16. National Statistics website © Crown copyright material is reproduced with the permission of the Controller of HMSO (and the Queen’s Printer for Scotland) MARKET SIZE By Value The UK travel and tourism market was valued at £70.107 36.694 16.69bn in 2009.960 2008 21.248 2006 20. The domestic travel and tourism market.667 32. had a value of £21.965 34.952 2.331 2.5: UK Household Disposable Income Per Capita (£).495 3.411 16.881 31. the outbound market suffered significantly from the recession in 2009.

.table continued 2005 Total % change year-on-year † — excluding fares Note: domestic figures relate to trips of at least 1 night but fewer than 60 days. including day trips.069 - Source: United Kingdom Tourism Survey/International Passenger Survey. the 2008 figures for the outbound and inbound markets has also been revised by the source since the last edition of this Market Review was published.2 2008 74.5 69.268 2. outbound and inbound figures relate to trips of less than 1 year. 2006 71.3 2007 72.Travel & Tourism Market Industry Overview Table 1. National Statistics © Crown copyright material is reproduced with the permission of the Controller of HMSO (and the Queen’s Printer for Scotland)/Key Note © Key Note Ltd 2010 7 ..8 2009 70. 2005-2009 .211 1.6: The Total UK Travel and Tourism Market by Value (£m).378 3.167 -5.

500 73. National Statistics © Crown copyright material is reproduced with the permission of the Controller of HMSO (and the Queen’s Printer for Scotland)/ Key Note By Volume The number of trips made in the UK travel and tourism market declined throughout the 5-year review period and in 2009.6 million and inbound trips slipping by 6. domestic trips increased for the first time over the review period. Source: United Kingdom Tourism Survey/International Passenger Survey.000 2005 2006 2007 2008 2009 Note: domestic figures relate to trips of at least 1 night but fewer than 60 days.1% to 58.000 69. 2005-2009 75.3% to 29.500 74. with outbound trips down by 15.9% fall to 214.000 73.1: The Total UK Travel and Tourism Market by Value (£m).000 70.Travel & Tourism Market Industry Overview Figure 1. outbound and inbound figures relate to trips of less than 1 year. with a 7% advance to 126 million in 2009.000 68. © Key Note Ltd 2010 8 . In contrast. falls in trip numbers were recorded in both the outbound and inbound markets. including day trips.500 71.000 71. From 2008 to 2009.500 72.5 million trips.9 million.500 69.000 72. the 2008 figures for the outbound and inbound markets has also been revised by the source since the last edition of this Market Review was published.000 74.500 68. this downward trend continued with a 1.500 70.

2005-2009 2005 Domestic Outbound Inbound 138.536 32. National Statistics © Crown copyright material is reproduced with the permission of the Controller of HMSO (and the Queen’s Printer for Scotland)/Key Note © Key Note Ltd 2010 9 . outbound and inbound figures relate to trips of less than 1 year.000 58.441 29.503 -1.889 Total % change year-on-year 235.700 69.300 69.970 2006 126.778 2008 117. including day trips.Travel & Tourism Market Industry Overview Table 1.713 2007 123.7: The Total UK Travel and Tourism Market by Number of Trips (000).111 - 228.2 214.8 225.599 -3.700 66.9 Note: domestic figures relate to trips of at least 1 night but fewer than 60 days.500 69.549 -2.728 -1.450 32.888 2009 126. Source: United Kingdom Tourism Survey/International Passenger Survey.011 31.614 29.2 218.

500 225.000 217.500 220.4% to 398.000 227.24 billion bed nights in the UK travel and tourism market in 2009.5 million and 6.500 215. respectively. National Statistics © Crown copyright material is reproduced with the permission of the Controller of HMSO (and the Queen’s Printer for Scotland)/ Key Note Number of Bed Nights There were 1. As was the case with the number of trips made. Conversely. which were down by 12.4 million. increases in bed nights were registered in the domestic market which was up by 5. a 6.500 230. outbound and inbound figures relate to trips of less than 1 year. 2005-2009 235.6% to 614.4% reduction on 2008.000 232. Source: United Kingdom Tourism Survey/International Passenger Survey. In 2009. © Key Note Ltd 2010 10 .8 million from 2008.Travel & Tourism Market Industry Overview Figure 1.000 2005 2006 2007 2008 2009 Note: domestic figures relate to trips of at least 1 night but fewer than 60 days.2: The Total UK Travel and Tourism Market by Number of Trips (000). falls in bed night numbers were recorded in the outbound and inbound markets from 2008 figures.7% to 229. including day trips.000 222. the number of bed nights in the inbound market was the lowest since 2003 and the number of bed nights in the outbound market was the lowest since 2002.

4 703.Travel & Tourism Market Industry Overview Table 1.4 Note: domestic figures relate to trips of at least 1 night but fewer than 60 days.8 1.7 -6.3 273.360.0 249.8 614.6 251.8: The Total UK Travel and Tourism Market by Number of Bed Nights (million).4 - 1.9 1.2 2006 400.335.6 1. including day trips.2 669. Source: United Kingdom Tourism Survey/International Passenger Survey.4 Total % change year-on-year 1.242.5 229.8 2009 398.5 -2.5 -0.1 701. outbound and inbound figures relate to trips of less than 1 year.3 245. 2005-2009 2005 Domestic Outbound Inbound 442.4 2007 394.327.5 2008 378.4 689. National Statistics © Crown copyright material is reproduced with the permission of the Controller of HMSO (and the Queen’s Printer for Scotland)/Key Note © Key Note Ltd 2010 11 .1 1.374.

300 1.325 1.Travel & Tourism Market Industry Overview Figure 1.250 1.375 1. © Key Note Ltd 2010 12 . while the outbound market accounted for the highest percentages of expenditure and bed nights.225 1. The domestic market generated the largest percentage of trips made. number of trips and number of bed nights) for the domestic. Source: United Kingdom Tourism Survey/International Passenger Survey. National Statistics © Crown copyright material is reproduced with the permission of the Controller of HMSO (and the Queen’s Printer for Scotland)/ Key Note MARKET SEGMENTATION Table 1.350 1. inbound and outbound markets in 2009. outbound and inbound figures relate to trips of less than 1 year. 2005-2009 1.275 1. including day trips.200 2005 2006 2007 2008 2009 Note: domestic figures relate to trips of at least 1 night but fewer than 60 days.3: The Total UK Travel and Tourism Market by Number of Bed Nights (million).9 provides a comparison of the three main measures (expenditure.400 1.

72 and £555. 000.7 Bed Nights (million) Trips (000) % of Total Domestic Outbound Inbound Total † — does not sum due to rounding Note: domestic figures relate to trips of at least 1 night but fewer than 60 days.Travel & Tourism Market Industry Overview Table 1.167 126. a figure substantially below the averages for outbound and inbound trips which were reported as £540.1 49. In 2009.8 614.694 16. average bed nights and average bed nights per trip.6 100.12.64.7 bed nights in the inbound market and 10. National Statistics © Crown copyright material is reproduced with the permission of the Controller of HMSO (and the Queen’s Printer for Scotland)/Key Note The three sectors of the market continue to produce wide variations in average expenditure. with domestic trips being much shorter in comparison to outbound and inbound trips.2 23.0 Source: United Kingdom Tourism Survey/International Passenger Survey.7 27. average expenditure per trip in the domestic market was £173.242.614 29. outbound and inbound figures relate to trips of less than 1 year.889 214. In 2009. © Key Note Ltd 2010 13 .3 13.5 bed nights in the outbound market.9 †100. million and %). respectively.5 229.5 100.881 31.2 bed nights compared to 7.0 58. the average stay in the domestic market was 3.592 70.0 32.2 45.503 398.000 58. This difference is principally due to the average length of stay. including day trips. outbound and inbound expenditure excludes fares.4 18.4 1. 31.9: The Total UK Travel and Tourism Market by Sector by Value and Volume (£m. 2009 Expenditure (£m) Market Sector Domestic Outbound Inbound Total 21.

and the domestic market percentages of UK tourism expenditure. this had a value of £53.7 173. The downturn in the outbound market in 2009 and the resurgence of the domestic market affected these trends.12 Source: United Kingdom Tourism Survey/International Passenger Survey.01 billion in the number of bed nights compared to 2008 levels. Average Expenditure per Bed Night (£) 54. they can also be grouped in broader categories. © Key Note Ltd 2010 14 .87 51.5 7. UK Tourism The total UK tourism market covers the domestic and outbound sectors.3% decline to 1.2 10. 2009 Average Expenditure per Trip (£) Domestic Outbound Inbound † — excluding fares Note: domestic figures relate to trips of at least 1 night but fewer than 60 days.33 Average Number of Bed Nights per Trip 3.Travel & Tourism Market Industry Overview Table 1:10: The UK Travel and Tourism Market by Average Expenditure per Trip and Per Bed Night.6% of expenditure and 65% of bed nights.64 †540. outbound and inbound figures relate to trips of less than 1 year.1% fall to 184. a 7. However. National Statistics © Crown copyright material is reproduced with the permission of the Controller of HMSO (and the Queen’s Printer for Scotland)/Key Note As noted earlier. however. and in 2008 it accounted for 63. There was also a 1.6 million in the number of trips made and a 6. the three main markets of the travel and tourism sector — domestic. The importance of the outbound sector to the UK tourism market increased steadily between 2005 and 2008. including day trips.5% reduction on 2008. trips and bed nights all increased in the same year. and Average Number of Bed Nights per Trip (£ and number).72 †555. as follows: • domestic and outbound tourism are categorised as national or UK tourism • domestic and inbound tourism relate to internal tourism • outbound and inbound tourism constitute international tourism. In 2009.58bn. outbound and inbound — are each covered separately by this Key Note Market Review.58 72.

881 31.694 53..376 21.700 66.614 184.5 35.013 56.7 398.0 68.2 100.6 100.238 35.300 69.667 32.4 100.084.0 40.700 69.011 186.0 22. © Key Note Ltd 2010 15 .0 1.1 100. 2005-2009 2005 Expenditure (£m) Domestic Outbound† Total % of Total Domestic Outbound Total 41.411 55.0 Bed Nights (million) Domestic Outbound Total 442.7 100.945 21.5 1.1 701. 000. million and %).0 37.081..8 59.0 100.838 57.11: The UK Tourism Market by Sector by Value and Volume (£m.0 36.154 54.821 20.450 192.111.6 32.7 100.3 58.013.251 21.0 64.0 64.441 205.0 36.4 63.836 123.0 63.101.2 400.2 669.4 394.3 31.950 117.500 69.Travel & Tourism Market Industry Overview Table 1.8 62.000 58.711 126.536 195.0 37.0 37.6 1.3 1.575 2006 2007 2008 2009 Trips (000) Domestic Outbound Total 138.0 100.0 378.5 100.3 1.107 36.4 703.9 62.4 689.3 Table continues.2 100.965 34.8 614.141 126.614 % of Total Domestic Outbound Total 67.

Travel & Tourism Market Industry Overview Table 1. 2006 36.0 2008 35. 000. Table 1.0 Source: United Kingdom Tourism Survey/International Passenger Survey.11: The UK Tourism Market by Sector by Value and Volume (£m. There was also a 4. 2005-2009 .8% to £38. and a 0. some of these attractions and facilities are aimed more at the inbound tourist while others are directed more towards the domestic market.0 65. Although a certain amount of overlap is likely.4 60.6 100.2 100. National Statistics © Crown copyright material is reproduced with the permission of the Controller of HMSO (and the Queen’s Printer for Scotland)/Key Note Internal Tourism Internal tourism combines the domestic and inbound markets of the travel and tourism sector. million and %).960 37. the value of this market increased by 2.table continued 2005 % of Total Domestic Outbound Total † — excluding fares Note: domestic figures relate to trips of at least 1 night but fewer than 60 days.3 63.0 2007 36.6 100.323 37..2% rise in the number of trips made to 155.915 20.248 36.473 2006 2007 2008 2009 Table continues...9 million.107 16.0 39.198 21. © Key Note Ltd 2010 16 . 2005-2009 2005 Expenditure (£m) Domestic Inbound† Total 22. such as transport.967 21.881 16.965 16. 000.592 38.4 63. million and %).430 21. accommodation and visitor attractions.. including day trips.12: The UK Internal Tourism Market by Sector by Value and Volume (£m.002 36.8 60. In 2009.0 2009 39. outbound figures relate to trips of less than 1 year.2 million bed nights over the same period.6% rise to 628.47bn from 2008 figures. These two sectors share and increase demand for many of the services and facilities provided by the UK internal tourism market.238 15.7 100.0 100.667 14.

0 100.1 100.0 Bed Nights (million) Domestic Inbound Total % of Total Domestic Inbound Total † — excluding fares Note: domestic figures relate to trips of at least 1 night but fewer than 60 days.588 126.0 79.1 273.5 645.0 63.2 17.3 100.4 43.12: The UK Internal Tourism Market by Sector by Value and Volume (£m. 2005-2009 .0 56.500 32.7 43..9 100.8 624.4 40.0 100.table continued 2005 % of Total Domestic Inbound Total 61.0 78.4 245.970 168.5 36.1 42.5 100.888 149.899 % of Total Domestic Inbound Total 82.0 Table continues.6 100.300 32.000 29..0 56.013 123.2 398.9 43.2 100.6 39.0 79.7 21. 000.4 628.5 394.1 38.0 59.4 100. © Key Note Ltd 2010 17 .700 29.670 126.0 61.9 378.0 80.2 64.0 2006 2007 2008 2009 Trips (000) Domestic Inbound Total 138.778 156.2 691. million and %)..4 38..9 100.2 249.889 155. including day trips.0 60.Travel & Tourism Market Industry Overview Table 1.0 21.8 19.3 100. inbound figures relate to trips of less than 1 year.700 31. 442.4 673.4 251.0 36.4 400.8 229.8 100.0 56.6 100.4 20.713 159.6 100.278 117.6 100.0 57.

411 16.1% decline to 843.0 68. 66. In 2009.0 65. which was 9.402 34.5 million trips made.161 31. airlines and trains.Travel & Tourism Market Industry Overview Table 1.002 50. 2005-2009 2005 Expenditure (£m)† Outbound Inbound Total 32. this sector had a value of £48. accounting for 65.713 102.536 32.2% of trips and 72.7 100. © Key Note Ltd 2010 18 .3 100..411 69. National Statistics © Crown copyright material is reproduced with the permission of the Controller of HMSO (and the Queen’s Printer for Scotland)/Key Note International Tourism The international tourism market combines the outbound and inbound tourism markets.286 2006 2007 2008 p2009 % of Total Outbound Inbound Total 69.0 68.889 88.154 14..3% fall to 88.7 100.7 100. The main facilities shared by these two sectors include airports.3 30.249 69.4 100. 2005-2009 .6% of expenditure.450 32.013 15.838 16..3 30.13: The UK International Tourism Market by Sector by Value and Volume (£m.228 69.6 34.778 102. and an 11.592 48.694 16.0 Trips (000) Outbound Inbound Total 66.12: The UK Internal Tourism Market by Sector by Value and Volume (£m.323 53. million and %).table continued Source: United Kingdom Tourism Survey/International Passenger Survey. million and %).0 69. 000. The outbound sector is the larger of the two markets.960 50.970 96.413 35.441 29.503 Table continues. Table 1.9 million bed nights over the same period. There was also a 12.888 100.899 58.7 31.973 36.248 46.3 31.8% of bed nights in 2009.29bn. 000.614 29.2% lower than 2008 levels..011 31.

table continued 2005 2006 2007 2008 p2009 % of Total Outbound Inbound Total 68.9 % of Total Outbound Inbound Total p — provisional † — excluding fares Note: figures relate to trips of less than 1 year. million and %).Travel & Tourism Market Industry Overview Table 1.3 26.6 100.5 941.0 73.0 72.1 703.1 100.0 249.2 701.9 27. 000.0 74.0 72.0 Source: International Passenger Survey.0 68.7 100.6 251.0 28.1 100.0 66.3 245. 2005-2009 .0 67..9 31.4 974.0 32.13: The UK International Tourism Market by Sector by Value and Volume (£m.3 273.0 100.4 843.9 100.2 918.2 100.0 68.0 Bed nights (million) Outbound Inbound Total 669.4 31.8 949.0 100.2 33.8 27.1 100. 72. including day trips.. National Statistics © Crown copyright material is reproduced with the permission of the Controller of HMSO (and the Queen’s Printer for Scotland)/Key Note © Key Note Ltd 2010 19 .5 229.7 689.1 614.1 25.8 100.9 32.

4 4.0 © Key Note Ltd 2010 20 .0 46.1 16.8 74.Travel & Tourism Market Industry Overview INDUSTRY STRUCTURE Concentration The UK travel and tourism market is subject to varying degrees of concentration.5 9. For example. and First Choice — still accounted for an estimated 25. TUI Travel PLC.14: Estimated Market Shares of the Three Leading Companies in Selected Areas of the UK Travel and Tourism Market (%). the three leading bus and coach operators in the UK — Firstgroup PLC. owned by Thomas Cook. Stagecoach Holdings PLC and Arriva PLC together operate 49.9 25. three operators — FirstGroup PLC.9 14. easyJet Airline Company and Flybe Ltd.7 7.8% of the travel agencies operating in the UK in 2009. which account for almost half (46. 2010 Passenger Aircraft Operators Bus and Coach Operators Travel Agencies Top Three Companies 1 2 3 Total top three companies Others Total Source: Key Note 19.0 11.8 53. owned by Thomson. The travel agencies sector is a little less concentrated although the three largest operators — Thomas Group PLC. Govia Ltd and Stagecoach — are involved in the operation of 10 of the 19 UK passenger train franchises.000 buses in the UK.3 49.3 15. the three leading aircraft operators include British Airways PLC.5% of the estimated 44. Within the rail sector.010 aircraft flown by UK carriers in 2009. Within the airline industry.5 100.5 50.8%) of the 1.0 23.2 100. Table 1.2 100.

the number of enterprises with turnovers of £1m or more falling from 270 in 2008 to 240 in 2009.880 420 320 385 215 150 155 85 1. Transport Providers In 2009. National Statistics website © Crown copyright material is reproduced with the permission of the Controller of HMSO (and the Queen’s Printer for Scotland) © Key Note Ltd 2010 21 .000+ Total 440 350 395 235 190 190 95 1. air and sea operators.15: Number of UK VAT. do have PAYE employers.890 435 340 360 255 200 200 100 1.and/or PAYE-Based Enterprises Engaged in Urban and Suburban Passenger Land Transport by Turnover Sizeband (£000 and number). including: accommodation providers. such as bus and coach. transport companies. This reduction in numbers occurred across most of the turnover sizebands with.000-4. 2005-2009 2005 Turnover (£000) 1-49 50-99 100-249 250-499 500-999 1. Table 1. of UK businesses involved in the travel and tourism market.and/or PAYE-based enterprises engaged in urban and suburban passenger land transport — a category which essentially covers scheduled bus and coach operators. Size and Location.. Size and Location publications have been enhanced by National Statistics to include enterprises that although not registered for VAT.999 5. rail. The 2009 total of 1.730 2006 2007 2008 2009 Note: the 2008 and 2009 UK Business: Activity. and broad range. Company takeovers and amalgamations are likely to have accounted for some of these reductions.895 425 365 380 235 195 200 90 1.730 UK VAT. Source: UK Business: Activity. etc. for example.890 445 370 370 250 175 175 95 1. such as hotels and holiday camps.730 was a reduction of 150 enterprises or 8% on the number of enterprises operating in 2008. there were 1. and travel agencies and tour operators. This has extended the scope of the 2008 and 2009 tables from the previous VAT-based enterprise tables.Travel & Tourism Market Industry Overview Number of UK Businesses There are a large number.

999 5. The train companies which are included in the highest turnover sizeband include the major operators such as National Express. National Statistics website © Crown copyright material is reproduced with the permission of the Controller of HMSO (and the Queen’s Printer for Scotland) Rail transportation is a relatively small sector in terms of the number of operators. a high percentage of the non-scheduled air passenger operators are likely to be one.and/or PAYE-based enterprises were engaged in passenger air transport (both scheduled and non-scheduled). © Key Note Ltd 2010 22 . the smaller airlines usually serve small. 2009 Number of Enterprises Turnover (£000) 1-49 50-99 100-249 250-499 500-999 1. including the largest 20 which had turnovers in excess of £5m. Table 1. Size and Location.and/or PAYE-based enterprises were engaged in rail transport.or two-man businesses which offer transport services on an ad-hoc basis. while the mass transportation of passengers on non-scheduled flights is dominated by a small number of leading charter airlines. FirstGroup and Govia.16: Number of UK VAT. while the major low-cost scheduled airlines serve the mass market. In 2009. just 80 UK VAT.000+ Total 175 110 120 75 50 75 120 725 Source: UK Business: Activity.Travel & Tourism Market Industry Overview In 2009.and/or PAYE-Based Enterprises Engaged in Passenger Air Transport by Turnover Sizeband (£000 and number). The 120 companies which have turnovers in excess of £5m are likely to include all of the well-known UK scheduled and charter airlines.000-4. Within the scheduled air transportation sector. 725 UK VAT. niche segments. Due to their relatively small turnovers.

and/or PAYE-Based Enterprises Engaged in Sea and Coastal Passenger Water Transport and Inland Passenger Water Transport by Turnover Sizeband (£000 and number).Travel & Tourism Market Industry Overview Table 1.18: Number of UK VAT.and/or PAYE-Based Enterprises Engaged in Rail Transport by Turnover Sizeband (£000 and number).and/or PAYE-based inland passenger water transport companies registered in the UK. there were 595 VAT.000-4..17: Number of UK VAT.and/or PAYE-based sea and coastal passenger water transport companies and 170 VAT. National Statistics website © Crown copyright material is reproduced with the permission of the Controller of HMSO (and the Queen’s Printer for Scotland) In 2009. © Key Note Ltd 2010 23 . 2009 Sea and Coastal Passenger Water Transport Turnover (£000) 1-49 50-99 100-249 250-499 290 90 95 30 50 35 45 15 Inland Passenger Water Transport Table continues. Table 1.. Size and Location.000+ Total 15 10 15 5 5 10 20 80 Source: UK Business: Activity.999 5. 2009 Number of Enterprises Turnover (£000) 1-49 50-99 100-249 250-499 500-999 1. The sea and coastal transport sector includes the large ferry and cruise operators.

2% advance in hotels with sales of more than £5m.and/or PAYE-based enterprises engaged as hotels. The reduction in the number of smaller hotels operating in the market may be due to the current economic climate and the difficulty that some of these hotels have experienced while operating in a highly competitive market.000+ Total 35 20 35 595 15 10 0 170 Inland Passenger Water Transport Source: UK Business: Activity. 2009 . Size and Location.. © Key Note Ltd 2010 24 .18: Number of UK VAT. For example.) 500-999 1.and/or PAYE-Based Enterprises Engaged in Sea and Coastal Passenger Water Transport and Inland Passenger Water Transport by Turnover Sizeband (£000 and number).999 5.800 hotels with turnovers of £99.table continued Sea and Coastal Passenger Water Transport Turnover (£000) (cont.000 or less. and a 7. there was a slide of 7% to 1.. which stood at 9.455 hotels with turnovers of £499. National Statistics website © Crown copyright material is reproduced with the permission of the Controller of HMSO (and the Queen’s Printer for Scotland) Accommodation Providers There was a reduction of 2. and a fall of 5.8% in the number of UK VAT. there was a 4% increase in hotels with sales of between £1m and £5m.Travel & Tourism Market Industry Overview Table 1.4% to 6. Much of this reduction was due to hotels with smaller turnovers.000 or less. By contrast.910 in 2009.000-4.

935 1.845 1.555 370 9.495 345 10.110 2006 300 1.20 illustrates.335 295 8.550 1. Size and Location. The majority of these enterprises tend to be small operators with turnovers of less than £249.530 1. 3. a variety of other types of accommodation — including camping and caravan sites.440 1.875 1.260 280 †9. Source: UK Business: Activity.840 2.19: Number of UK VAT.400 325 8.195 2009 490 1.530 1.050 1. 2005-2009 2005 Turnover (£000) 1-49 50-99 100-249 250-499 500-999 1.925 2007 300 1.130 2.945 1.720 1. Size and Location publications have been enhanced by National Statistics to include enterprises that although not registered for VAT.425 1. © Key Note Ltd 2010 25 .470 1.310 2.000.175 UK VAT.400 2. As Table 1.and/or PAYE-Based Enterprises Engaged as Hotels and Similar Accommodation.and/or PAYE-based enterprises engaged in the provision of other short-stay accommodation (68.Travel & Tourism Market Industry Overview Table 1.350 2. National Statistics website © Crown copyright material is reproduced with the permission of the Controller of HMSO (and the Queen’s Printer for Scotland) In addition to hotels.999 5.540 of the 5.210 2. This has extended the scope of the 2008 and 2009 tables from the previous VAT-based enterprise tables.4%) came under this category in 2009.000-4. holiday centres and holiday villages — are available to tourists and travellers in the UK.810 2008 535 1. with just 90 enterprises having turnovers of more than £5m.385 1. by Turnover Sizeband (£000 and number).910 † — does not sum at source Note: the 2008 and 2009 UK Business: Activity. do have PAYE employers.000+ Total 280 1.440 1.

4%) to 6. Almost a quarter of these enterprises (24.20: Number of UK VAT.460 795 1.1%) had turnovers of between £100. mountain refuges.999 5.and/or PAYE-Based Enterprises Engaged in the Provision of Holiday and Other Short-Stay Accommodation by Turnover Sizeband (£000 and number).8% had turnovers of between £1m and £5m. other self-catering holiday accommodation and other tourist or short-stay accommodation Source: UK Business: Activity. there was an increase of 160 companies (2.000 and a further 15.000-4.4% of the total) — had turnovers in excess of £5m in 2009. This group is likely to include many of the well-known high-street brands. © Key Note Ltd 2010 26 .490 710 450 385 90 5. National Statistics website © Crown copyright material is reproduced with the permission of the Controller of HMSO (and the Queen’s Printer for Scotland) Travel Agents and Tour Operators In 2009.000 and £249. tour operators and other reservation service and related activities.255 1.175 †Holiday Centres/ Holiday Villages Total † — includes youth hostels. The smallest percentage of travel agents and tour operators — 505 (7.Travel & Tourism Market Industry Overview Table 1.and/or PAYE-based enterprises engaged as travel agencies.000+ Total 65 275 455 355 260 250 55 1. 2009 Camping/ Caravan Sites Turnover (£000) 1-49 50-99 100-249 250-499 500-999 1. Size and Location.815 in the number of UK VAT.715 730 980 1.035 355 190 135 35 3.

999 5. Source: UK Business: Activity. Tour Operators and Other Reservation Service and Related Activities by Turnover Sizeband (£000 and number). that these sectors could add another 100. air transport and water transport sectors stood at 2. Employment numbers for the road and rail passenger industries are not given in the Annual Abstract of Statistics. do have PAYE employers. whereas the data in Chapter 6 relates to retail outlets operated by travel agents.and/or PAYE-based travel agents and tour operators. Key Note estimates.070 445 5.025 680 640 1.400 915 895 1.030 645 715 1.4 million in 2008.075 505 6.000-plus to the number of people employed in the UK travel and tourism industry. Size and Location publication have been enhanced by National Statistics to include enterprises that although not registered for VAT.21: Number of UK VAT.000+ Total 760 725 1. © Key Note Ltd 2010 27 .and/or PAYE-Based Enterprises Engaged as Travel Agencies.090 440 5. however. Key Note estimates that all sectors of these markets could be affected by job losses in 2009. travel agents. with the total falling by a little over 1%.Travel & Tourism Market Industry Overview Table 1. 2005-2009 2005 Turnover (£000) 1-49 50-99 100-249 250-499 500-999 1. the number of employee jobs in the hotels and restaurants. a figure relatively unchanged on 2007.655 930 870 1.540 990 775 1. National Statistics website © Crown copyright material is reproduced with the permission of the Controller of HMSO (and the Queen’s Printer for Scotland) Employment According to National Statistics in its Annual Abstract of Statistics.045 495 6.055 450 5. This has extended the scope of the 2008 and 2009 tables from the previous VAT-based enterprise tables. The number of travel agents and tour operators given in this table differs from the number given in Chapter 6 — The Outbound Market — owing to the fact that the figures in this table refer to VAT. Size and Location.645 965 825 1.015 685 705 1.405 765 725 1.000-4.410 780 770 1.815 2006 2007 2008 2009 Note: the 2008 and 2009 UK Business: Activity.

.3%.810 455 85 17 Total e — Key Note estimates 2. 2005-2009 2005 Independent holiday Inclusive holiday 57.415 2.23: The UK Outbound Holiday Market by Type of Arrangement by Volume (%).0 43.3 p2009 62.385 2.840 443 90 18 2007 1.9 41. the availability of low-cost flights and the ease and convenience of booking travel and accommodation via the Internet are helping to sustain and boost this segment of the market. As in the past.7 39.7 Table continues.391 2.2 41. Table 1.8 2007 58.0 2006 58. National Statistics website © Crown copyright material is reproduced with the permission of the Controller of HMSO (and the Queen’s Printer for Scotland) Distribution The preference for UK outbound holidaymakers to organise their own travel and accommodation arrangements rather than book inclusive holidays or package tours continued to gather pace in 2009 with the percentage of independently arranged trips for outbound holidays reaching a 5-year high of 62.399 2.. © Key Note Ltd 2010 28 .367 Source: Annual Abstract of Statistics.22: Number of UK Employee Jobs in the Hotels and Restaurants.3 37.1 2008 60.855 453 88 19 2006 1.835 462 85 17 1.Travel & Tourism Market Industry Overview Table 1.826 452 90 17 e2008 e2009 1. 2005-2009 2005 Hotels and restaurants Travel agents Air transport Water transport 1. Travel Agents. Air Transport and Water Transport Sectors (000).

6 273. National Statistics © Crown copyright material is reproduced with the permission of the Controller of HMSO (and the Queen’s Printer for Scotland)/Key Note MARKET POSITION According to the World Travel & Tourism Council (WTTC). © Key Note Ltd 2010 29 .8 4.4 Table continues.9 4. which equates to 4% of the 2010 global travel and tourism total of $5. The US is forecast to produce 23. France is expected to be the leading European travel and tourism market with 4.Travel & Tourism Market Industry Overview Table 1. including day trips.table continued 2005 Total p — provisional Note: figures relate to trips of less than 1 year.1 136.0 p2009 100. the UK is forecast to be the world’s seventh-largest generator of travel and tourism GDP in 2010 with a figure of some $231.0 3.3 284.9% of the total.0 Source: International Passenger Survey.7 8.1 4..375. 2010 $bn US PRC Japan France Germany Spain UK Italy Canada 1.0 100..0 2008 100.9% of global travel and tourism GDP followed by the People’s Republic of China (PRC) with 8.23: The UK Outbound Holiday Market by Type of Arrangement by Volume (%).1 % of Total 23.4 237.24: Countries Expected To Produce the Largest Amount of Travel and Tourism Gross Domestic Product ($bn and %).75bn..8 2.9 499. 2006 100.7%.0 2007 100.1 217.9 459. Table 1.9 231..0 4. 2005-2009 .1bn.9 8.

Spain and France remain the two main destinations for UK outbound travellers and tourists. the UK domestic travel and tourism market benefited from the ‘staycation’ trend as domestic consumers turned away from overseas holidays due to the recession.6 5. although inbound trips for business purposes fell by 19% in 2009 — their largest decline in more than a decade.1 1. On the positive side.751.. World Travel & Tourism Council KEY TRENDS In 2009. The UK outbound travel and tourism market was significantly affected by the economic downturn in 2009. The result was that expenditure. although in 2009.Travel & Tourism Market Industry Overview Table 1.. which resulted in outbound expenditure falling to its lowest level since 2004 and the number of outbound trips made sliding to their lowest level since 2001. while the number of independently arranged holiday trips declined by 13.0 123. inbound trips for holiday purposes did increase by 4.3 100. the numbers of trips made to both of these destinations were at their lowest levels since at least 2005. the low value of sterling and other negative factors.table continued $bn Australia Others Total PRC — People’s Republic of China % of Total 2. Particularly affected were inclusive holiday trips.2%. the number of trips and bed nights all observed increases within the domestic travel and tourism market in comparison to 2008 figures. which fell by 19% from 2008 levels.0 Source: Tourism Satellite Accounting Forecasts 2010. © Key Note Ltd 2010 30 .912. The numbers of trips made to each of the other 20 most visited outbound destinations were also all lower in 2009 compared to 2008.24: Countries Expected To Produce the Largest Amount of Travel and Tourism Gross Domestic Product ($bn and %). and falls were recorded in the number of trips made and bed nights stayed.1 33. 2010 . The recession took its toll on the UK inbound travel and tourism market in 2009.6% from 2008.

Newcastle.6%.uk. The Inverness-based airline operated a fleet of nine aircraft. The company. the Canary Islands and Turkey. Edinburgh airport and Aberdeen airport. Deutsche Bahn already operates the Chiltern rail franchise in the UK and the London Overground. Cyprus and Egypt. marketing. going to Greece. LLC.5bn.Travel & Tourism Market Industry Overview As in the UK. • It also now seems likely that British Airways and Iberia will form a transatlantic alliance with American Airlines. Argo Holidays and JetLife. as well as to medium. the pact still needs clearance from the US Department of Transportation. • In April 2010. International tourist arrival numbers were particularly affected in the first three quarters of 2009 although in the final quarter of the year. sold air package holidays and flights departing from Gatwick. running services between Cardiff and Anglesey Stornoway and Benbecula in the Outer Hebrides and Oban and the Inner Hebrides. the number of arrivals did increase compared to the comparable period in 2008. a merger would mean keeping pace with Deutsche Lufthansa AG and Franco-Dutch airline Air France-KLM.uk and hotsunholidays. scheduling. Flyglobespan. BAA sold Gatwick airport to Global Infrastructure Management. For BA and Iberia. Arriva PLC announced that it was recommending a takeover bid for the company from Deutsche Bahn. Highland Airways Ltd went into administration. In July 2010. However. Corporate Activity • In December 2009. Manchester. which is part of Global Infrastructure Partners. which traded as Libra Holidays. the European Commission approved the partnership which gives the carriers antitrust immunity so they can collaborate on pricing. the Allbury Travel Group ceased trading. • In April 2009. • In March 2010. • In December 2009.2% in 2009 and international tourism receipts projected to have declined by 9. Birmingham and Leeds-Bradford airports. sold air holiday packages to the Mediterranean. © Key Note Ltd 2010 31 . a low-cost airline based in Edinburgh. It also operated flights from London Gatwick. the German state-backed rail company. British Airways PLC and Iberia Líneas Aéreas de España SA announced that they had signed a definite merger agreement which will create Europe’s third-largest airline by revenue. 2009 was a difficult year for the world tourism industry with international tourist arrivals estimated to have fallen by 4. went into administration due to financial problems. the online travel company Freedom Direct Holidays Ltd ceased trading. The company. frequent-flier programs and other areas. The merger is expected to be completed by the end of 2010.co. These package deals were principally sold through travel agents. for £1.and long-haul destinations. • In December 2009. which traded as freedomdirect. Its main bases included Glasgow International airport. • In April 2010.co.

and 15 travel agencies in Germany.Travel & Tourism Market Industry Overview • In July 2010. Approximately 15. agreeing to RAM taking a majority stake in Jet4You. and a further 50. In September 2009.000 had holidays booked with the company before it went bankrupt. TUI also signed a letter of intent with Royal Air Maroc (RAM). clubs and universities. the group entered into an agreement to acquire the assets of East Thames Buses from Transport for London (TfL). TUI consolidated its position in the student sports tours market with the acquisition of SET Sports Tours. a hotel management company in Turkey. LEGISLATION The UK travel and tourism market is affected by a wide range of legislative measures across its various areas of activity. TUI increased its presence in the English-language teaching market with the acquisition of the Hampstead School of English. In its Accommodation and Destinations Sector. Goldtrail Travel and Sunmar. which traded as Goldtrail Holidays. ceased trading. and in December 2009. © Key Note Ltd 2010 32 . • In July 2010. In the Activity sector. which organises sports tours and festivals for schools. a leading Canadian tour operator. TUI acquired Select Tours. Go-Ahead completed the acquisition of Plymouth CityBus from Plymouth City Council. a leading Australian premier cruise handling operator. It operated flights and holiday packages from many UK airports going to Turkey and Greece. Thomas Cook announced that it had agreed to buy Öger Tours. Acquisitions in the company’s mainstream sector include the establishment of a strategic venture with Sunwing. a German tour operator specialising in package holidays to Turkey. • The Go-Ahead Group continues to expand its bus operations through acquisitions. In addition. which it largely sold through travel agents. In July 2010. Goldtrail Travel Ltd. • TUI PLC acquired a number of companies in 2009. Jet4You is TUI Travel’s Moroccan carrier which operates low-cost routes between Morocco and European cities.000 people who travelled with Goldtrail were trapped overseas.

Travel & Tourism Market Industry Overview Development of Tourism Act 1969 The British Tourist Authority (BTA). Should the review progress as expected. representing the public and private sector stakeholders of English tourism. Package Tours and Package Holiday Regulations 1992. Where a tour operator has failed to honour its contractual obligations to a customer. along with bolstering the provision and improvement of British tourism facilities. These regulations provide consumers with statutory legal rights against tour operators. implementation and delivery of a marketing strategy for England by VisitBritain. was created by the Development of Tourism Act 1969. which is funded by a per traveller contribution. in that all tour operators selling packages must be bonded or protect the prepayments that they hold. a new strategic leadership body. Repatriation costs and refunds are met by the Air Travel Trust Fund (ATTF). Reforms to the Package Travel Directive are currently being considered by the European Commission. came into being. All tour operators selling air holiday packages. Air Travel Organisers’ Licensing (ATOL) is managed by the Civil Aviation Authority (CAA) and provides comprehensive protection for consumers in the UK who buy air holidays and flights from travel organisers. VisitBritain was created to promote Great Britain overseas and to co-ordinate the marketing of England domestically. The BTA’s role included encouraging people living overseas to visit Great Britain and people living in Great Britain to take their holidays there. the BTA and the English Tourist Board were merged to create VisitBritain which became the trading name for the BTA. In 1998. If a licence holder fails. the England Marketing Advisory Board (EMAB) was created to oversee the creation. the CAA ensures its customers are either repatriated to the UK or receive a refund of payments made. Consumers also have rights in relation to changes made to their holidays or if the brochure was misleading. instead of with individual suppliers such as airlines or hoteliers. Welsh and English tourist boards. the travel organiser. responsibility for tourism was devolved to Scotland and Wales and the BTA was designated a ‘cross border’ authority under the devolutions legislation. © Key Note Ltd 2010 33 . together with the Scottish. Outbound Market Organisations which sell package holidays in the UK must comply with the Package Travel. In 2003. a new directive could be introduced in 2012. To ensure that there was a clear delineation between VisitBritain’s international and domestic roles. charter flights and certain scheduled flights must hold a licence from the CAA. VisitEngland. it may be liable to pay compensation. In April 2009. These regulations also enable dissatisfied holidaymakers to pursue their case with a single supplier.

© Key Note Ltd 2010 34 . The Concessionary Bus Travel Act 2007 and the Disability Discrimination Acts of 1995 and 2005. The Government has designated three airports (Heathrow. This particular regulation entitles passengers to care and assistance including the right to: • meals and refreshments in reasonable relation to the waiting time • hotel accommodation where a stay of one or more nights becomes necessary • two telephone calls. air travel organisers’ licensing — The Civil Aviation (Air Travel Organisers’ Licensing) Regulations 1995. This means that for these airports. New measures are also being introduced on an ongoing basis. telex or fax messages. aircraft noise — The Aeroplane Noise Regulations 1999. European and international legislation. Passengers are not entitled to additional financial compensation as would be the case if the cause of the disruption were the responsibility of the airline. consumer rights — The Civil Aviation (Denied Boarding. aviation insurance — The Civil Aviation (Insurance) Regulations 2005. The CAA can investigate the conduct of such airports and if it finds that the airport operator is unreasonably discriminating between users. Bus and Coach A range of legislative measures affect the operators of bus and coach services and also the local authorities who oversee some of these services. An airport with an annual turnover of at least £1m requires a ‘permission to levy airport charges’ from the CAA. unfairly exploiting its bargaining position or engaging in predatory pricing it can impose conditions to remedy the situation. and health and safety — Civil Aviation (Working Time) Regulations 2004. Gatwick and Stansted) for detailed price control. the CAA sets a price cap to limit the amount that can be levied by way of airport charges for a 5-year period. Examples include aircraft navigation — The Air Navigation Order 2005. Compensation and Assistance) Regulations 2005. with one of the latest being the Government’s decision to introduce body scanners at UK airports. A number of early legislation measures also remain important including the Airports Act 1986 and the Airports (Northern Ireland) Order 1994 under which the CAA has powers of economic regulation for airports in the UK. or e-mails. Another piece of legislation with topical interest is the EU Regulation on Denied Boarding and Cancellation (EU 261/2004) which became extremely relevant during the exceptional and extended disruption created by the Icelandic volcanic ash cloud.Travel & Tourism Market Industry Overview Airports Airports are subject to a wide range of domestic. The exceptions are airports managed by the Secretary of State or owned or managed by the CAA. The list includes the Local Transport Act 2008. Air Transportation The air transportation sector is subject to a wide range of legislation. including domestic. European and international.

the Government and the Trustees of the Air Travel Trust on financial protection for air travellers and holidaymakers. and consumer and independent representatives. and air passengers. ATIPAC’s membership includes a wide range of senior travel industry figures. and compensation of up to 50% of the ticket price. It was set up by the CAA and the Department for Transport (DfT) in 2000 to replace the Air Travel Trust Committee (ATTC). food and accommodation of up to three nights if they are stranded. The principal focus of the AUC is on matters that directly affect the interface between airlines and airports. The AUC is not constrained from expressing an independent view on any issue that it judges to have a significant direct operational impact on air service customers. The European Parliament has voted in favour of giving sea passengers similar rights to airline customers. KEY TRADE ASSOCIATIONS Air Transport Users Council The Air Transport Users Council (AUC) is the consumer watchdog for the airline industry.Travel & Tourism Market Industry Overview Sea Passenger Transportation Sea passenger transportation is also governed by a wide range of safety. or where its experience in the field of customer/operator relations enables it to make a distinctive contribution on matters subject to regulation. The Air Travel Insolvency Protection Advisory Committee The Air Travel Insolvency Protection Advisory Committee (ATIPAC) is a consultative Committee that includes a balance of travel industry nominees. ferry passengers can claim a refund or book a seat on the next available crossing if things go wrong. Currently. In general. It meets four times a year at the CAA. who can claim compensation if a European flight is disrupted. they will be entitled to a refund if the journey is delayed by more than 90 minutes or if it is cancelled. The new rules are likely to come into force by the end of 2012. accessibility and other legislation requirements. If the new rules are adopted. It was established by the CAA to help protect the interests of air travellers. In a recent ruling. as well as consumer and CAA representatives. ferry passengers are now expected to be given the right to claim compensation if their journey is delayed or cancelled. © Key Note Ltd 2010 35 . ATIPAC’s role is to advise the CAA. these cover aspects falling outside the CAA’s regulatory remit. or in response to formal consultations.

at national. A further 160-plus companies are Associate Members of the AOA and represent a range of suppliers to the airports industry including airlines. information and security specialists. The AOA has 72 airport members which represent the UK’s international hub and its major regional airports. thus strengthening the hand of airports in their dealings with airlines. European and international levels in order to secure policy outcomes that contribute to conditions for sustainable growth within the airport sector. the AEA collects. retailers.Travel & Tourism Market Industry Overview Airports Council International The Geneva-based Airports Council International (ACI) was created in 1991 and is an association for the world’s airports. Airport Operators Association The Airport Operators Association (AOA) is the trade association that represents the interests of British airports and is the principal body with which the UK Government and regulatory authorities consult on airport matters. where international standards for air transport are debated and developed. In order to achieve its objectives. Association of European Airlines The Association of European Airlines (AEA) is an NPO association. Its main role is to represent its membership of 36 major service and scheduled network carrier airlines to the institutions of the EU. It is a non-profit organisation (NPO). The most important relationship is with the International Civil Aviation Organization (ICAO). security and environmental initiatives. AITO members are independent companies. The mission of the AOA is to influence governments and regulators. It also advances and protects airport interests relating to important policy changes on airport charges and regulation. analyses and interprets information and also undertakes research. whose prime purpose is to advance the interests of airports and to promote professional excellence in airport management and operations. Association of Independent Tour Operators The Association of Independent Tour Operators (AITO) is an organisation representing more than 140 specialist UK tour operators. as well as those who serve community. and they specialise in particular destinations or types of holiday. air traffic services. ACI defends airports’ positions and develops standards and recommended practices in the areas of safety. and various consultancy services. fuel companies. © Key Note Ltd 2010 36 . the European Civil Aviation Conference and to any other institutional organisations or associations and individual governments of relevance. equipment manufacturers and suppliers. most of them owner-managed. business and leisure aviation.

infrastructure capacity and regulation. Its role is to represent the industry to government. Flybe. environmental policy. produces statistical data and provides specialist services. European Low Fares Airline Association The European Low Fares Airline Association (ELFAA) was formed in 2003 to represent and protect the views of the low-fare airlines and their customers. conducts economic and scientific research. © Key Note Ltd 2010 37 . ELFAA has a membership of ten airlines including easyJet. In addition. ELFAA’s primary objective is to ensure that European policy and legislation promote free and equal competition to enable the continued growth and development of low fares into the future. licenses UK airlines. represents consumer interests. BATA is active in bringing member airlines together and developing common positions on a wide range of industry issues including safety. and manages consumer issues • brings civil and military interests together to ensure that the airspace needs of all users are met as equitably as possible. the ATOL scheme. The CAA advises the Government on aviation issues. regulators and the media. airports and national air traffic services’ economic activities and encourages a diverse and competitive industry • manages the UK’s principal travel protection scheme. thereby allowing a greater number of people to travel by air. Jet2. The CAA’s responsibilities include: • air safety • economic regulation • airspace regulation • consumer protection • environmental research and consultancy. the CAA: • ensures that UK civil aviation standards are set and achieved • regulates airlines. The Association’s membership covers a wide range of airline services and produces over 80% of UK airline output. Civil Aviation Authority The Civil Aviation Authority (CAA) is a public corporation. security. which was established by Parliament in 1972 as an independent specialist aviation regulator and a provider of air traffic services.Travel & Tourism Market Industry Overview British Air Transport Association The British Air Transport Association (BATA) is the trade association for UK-registered airlines.com and Ryanair.

this and giving permission to sell airline tickets from the participating carriers is achieved through national member organisations. challenges unreasonable rules and charges. the Republic of Ireland. holds regulators and Governments to account and strives for sensible regulation. a globally accepted field source reference for airlines shipping hazardous materials. It is the key thrust of the GTMC’s activities to provide a better deal for organisations and their travelling employees. The IATA also regulates the shipping of dangerous goods and publishes the IATA Dangerous Goods Regulations manual. for practical purposes. Portugal. There are now seven National Guilds with over 300 members in Germany. Guild of Travel Management Companies Founded in 1967. with the exception of the US where this is done by the Airlines Reporting Corporation (ARC). Spain and the UK. from the world’s largest multiple to small independent specialists. the Netherlands.Travel & Tourism Market Industry Overview Guild of European Business Travel Agents The Guild of European Business Travel Agents (GEBTA) was founded in January 1990 in the UK. According to the GTMC. The Guild also provides a single clear message of the sector to European policy makers. be they travel suppliers. © Key Note Ltd 2010 38 . the Guild of Travel Management Companies (GTMC) is made up of a diverse range of travel management companies. It fights for the interests of airlines across the globe. travellers and the travel management companies who serve them. opinion formers or the media. government or EU legislators. International Air Transport Association The International Air Transport Association (IATA) is the prime vehicle for inter-airline co-operation. its members account for some 80% of business travel expenditure in the UK and facilitate more than 11 million transactions. including the sale of over 6 million airline tickets each year. GEBTA’s mission is to champion the interests of the European business travel sector. Italy. The IATA is also involved in the worldwide accreditation of travel agents. However. The key activity of the GTMC is to lobby all those that have an impact on the business travel of members’ clients. The IATA seeks to improve understanding of the industry among decision-makers and increase awareness of the benefits that aviation brings to national and global economies. The Association’s members comprise some 230 airlines — including the world’s leading passenger and cargo airlines — and together they represent some 93% of scheduled international air traffic.

with one of its main aims being the promotion of travel by sea to the UK public. as well as call centres. UKinbound UKinbound is a trade association representing the interests of the UK’s inbound tourism businesses. the travel industry at large and the consumers that they serve. made up of seven Cruise and five ferry members. The ICAO Council adopts standards and recommended practices concerning air navigation. prevention of unlawful interference. Membership includes accommodation providers. commonly known as the Chicago Convention. Internet booking services and high street shops. tourism service providers.Travel & Tourism Market Industry Overview International Civil Aviation Organization The International Civil Aviation Organization (ICAO) is an agency of the United Nations (UN) and develops the principles and techniques of international air navigation. ABTA amalgamated with the Federation of Tour Operators (FTO) to create a more powerful and authoritative voice for the travel industry. and to create as favourable a business climate as possible for its members. destination marketing companies. The Travel Association The Travel Association (ABTA) was formed in 1950 by 22 leading travel companies and currently represents over 5. specialist tour operators and independent travel agencies. The PSA is run from a London-based office and is supported by a Council of Management. attractions. Its membership ranges from small. In addition. The association has around 250 members and is the only association to focus exclusively on the inbound sector. UKinbound represents a diverse membership of tourism providers who organise tours in the UK.000 travel agencies and more than 900 tour operators throughout the British Isles. Passenger Shipping Association The Passenger Shipping Association (PSA) is the trade association for the cruise and ferry industry in the UK. and facilitation of border-crossing procedures for international civil aviation. It also fosters the planning and development of international air transport to ensure safe and orderly growth. inbound tour operators and UK ground handlers. In July 2008. All such establishments carry the ABTA logo. ABTA’s main aims are to maintain high standards of trading practice for the benefit of its members. © Key Note Ltd 2010 39 . the ICAO defines the protocols for air accident investigation which is followed by transport safety authorities in countries signatory to the Convention on International Civil Aviation. provide accommodation in the UK or provide cultural. sporting and other leisure activities in the UK. The PSA represents all passenger shipping interests within the UK. to publicly listed companies and household names.

UNWTO has regional representatives in Africa. Membership of the Council is by invitation only. social and cultural effects of tourism and fully reap its benefits. Its membership includes the Chief Executives (CEs) of around 100 of the world’s leading travel and tourism companies and it is the only body representing the private sector in all parts of the travel and tourism industry worldwide. The WTTC works to raise awareness of travel and tourism as one of the world’s largest industries. paying particular attention to the interests of developing countries. while minimising its negative social and environmental impacts. World Travel & Tourism Council The World Travel & Tourism Council (WTTC) is the forum for business leaders in the travel and tourism industry.Travel & Tourism Market Industry Overview World Tourism Organization The World Tourism Organization (UNWTO/OMT) is a specialised agency of the UN and the leading international organisation in the field of tourism. It serves as a global forum for tourism policy issues and a practical source of tourism know-how. tourism associations and local tourism authorities. UNWTO plays a central and decisive role in promoting the development of responsible. It has its headquarters in Madrid. 7 territories and over 400 Affiliate Members representing the private sector. sustainable and universally accessible tourism. East Asia and the Pacific. Europe. © Key Note Ltd 2010 40 . with a view to ensuring that member countries. the Middle East and South Asia. educational institutions. the Americas. tourist destinations and businesses maximise the positive economic. Its membership includes 154 countries. The organisation encourages the implementation of the Global Code of Ethics for Tourism.

Travel & Tourism Market PEST Analysis 2. the level and mechanics of the new tax is of concern. The Government has announced that it will report back to Parliament in the autumn of 2010 on proposals to reform APD and to replace it with a per-plane duty (PPD). A poorly designed tax system that ignores the valid concerns of the industry can be damaging to the travel sector. ABTA has indicated that. PEST Analysis POLITICAL FACTORS Air Travel Insolvency Protection Advisory Committee Urges Adoption of ‘Flight Plus’ Air Travel Organisers’ Licence The Air Travel Insolvency Protection Advisory Committee (ATIPAC) has reiterated its support for the ‘flight plus’ Air Travel Organisers’ Licensing (ATOL) reform proposals put forward by the Department of Transport (DfT). for example with fuller passenger loads. Under this licence. All holiday companies selling air holiday packages and flights in the UK are required by law to hold an ATOL licence. each ATOL holder must contribute to a protection fund called the Air Travel Trust Fund (ATTF). which would incentivise airlines to fly more efficiently. especially as an increasing proportion of holidays are sold in ways that were not envisaged by the existing regulations. © Key Note Ltd 2010 41 . ABTA is keen to start policy discussions with the Government on the exact details and level of any new aviation tax. The ‘flight plus’ system will require ATOL protection for all sales of flights plus any other holiday component such as hotels or car hire. which is currently £2. the ATOL Scheme ensures customers who booked and are contracted with the ATOL holder for an air holiday package or a flight do not lose their payment or are not stranded abroad. Expanding the scope of ATOL to a ‘flight plus’ model will help to end the current confusion. In the event of an ATOL holder’s failure. ATIPAC has a long-standing concern with the confusion experienced by consumers over their financial protection arrangements when booking an air holiday.50 per person. which is granted after a company has met the Civil Aviation Authority’s (CAA’s) licensing requirements. These airlines would then have to pay the ATOL Protection Contribution. regardless of the terms and conditions of booking. Air Passenger Duty The Travel Association (ABTA) is calling upon the Government to publish its consultation on replacement options for Air Passenger Duty (APD) at the earliest opportunity. while it broadly supports a change to a PPD. The Committee believes reform of ATOL is long overdue and that the new Government should not miss the opportunity to bring clarity to consumers and to extend financial protection arrangements to a greater number of holidaymakers. It would also extend ATOL coverage to airlines (currently specifically excluded from the ATOL system) who sell other components.

Following its election. sold Gatwick in December 2009. In spite of this the airport operator. P&O Ferries and Norfolk-line are in disagreement with the port of Dover over the use of £60m of cash that they provided to fund a second terminal at the port (Terminal 2) and at the proposed 35% increase in their tariffs over the next 3 years. The decision’s key structural remedy called for the disposal by BAA of three of its airports. BAA. and as a trading island-nation and popular tourist destination. in favour of larger and more economically attractive northern European hubs. Britain’s biggest airport. the Government announced a further representation period on the Board’s ‘voluntary privatisation’ scheme. according to a report by the Institution of Civil Engineers (ICE). BAA Wins Appeal Over Airports Break-Up In March 2009. Terminal 2 is no longer an immediate priority and there would be no obligation on the new owner to actually build it. the Competition Commission (CC) published its final decision in relation to its investigation into the supply of UK airport services by BAA. due to the possible privatisation of the Dover Harbour Board. namely Gatwick. In July 2010. Ferry Operators in Disagreement with Dover Harbour Board The three largest customers of Dover Harbour Board — SeaFrance. In May 2009. Previously agreed increases in APD mean that long-haul travel will bear the brunt of the increases which are due to be introduced in November 2010. In its report Rethinking Aviation the ICE acknowledged the need to address the environmental impact of unrestrained growth in demand for air travel but said that the Government must consider long-term airport infrastructure needs. The ferry companies have learned that. The tax on long-haul travel in particular (B and C — which carry the highest level of aviation tax) has led to mounting international concern. © Key Note Ltd 2010 42 . BAA applied to the Competition Appeal Tribunal (CAT) to review the CC’s decision. Air transport and airport infrastructure are vital to the UK’s international connectivity and prosperity. The Dover Board has applied to the Secretary of State for Transport for the authority to restructure the organisation in order to introduce private capital. Stansted and either Glasgow or Edinburgh. the UK depends on its ability to connect with the rest of the world.Travel & Tourism Market PEST Analysis The tax on aviation — through APD — has risen disproportionately in the UK in recent years and thus has the potential to have a very detrimental effect on outbound and inbound tourism to the UK. Government Needs To Expand Airports The Government’s decision to rule out building further runways at airports in the South East of England could seriously undermine Britain’s connectivity and competitiveness. Capacity constraints could result in international carriers abandoning Heathrow. the Coalition Government cancelled plans for a third runway at London’s Heathrow airport and said it would block runways at Stansted and Gatwick as part of a programme for a low-carbon economy.

for example. The use of travel websites which allow holidaymakers to put together their own ‘dynamic packages’ has also created legal grey zones and uncertainty for both businesses and consumers. is now considered to be in need of an overhaul so that it better reflects modern consumers’ needs and new business models. which could end up deferring future sales of Stansted and Glasgow or Edinburgh airports for some years. Consumers are protected where: (a) at least two of the above elements are sold at an inclusive price and (b) the service covers a period of more than 24 hours or includes an overnight stay. The Package Travel Directive The Package Travel Directive (Council Directive 90/314/EEC) was adopted in 1990 and has been an important cornerstone in the protection of European consumers going on holidays. has announced its intention to appeal against this judgement. which dates back to 1990. revolutionised the way in which consumers organise their holidays and an increasing number of EU citizens now arrange their holidays themselves. In the UK. the PTD. which claims BAA’s near-monopoly over Britain’s biggest airports is harming passengers’ interests. As a result. the number of consumers who are protected under the Package Travel Directive (PTD) when going on holiday has been falling steadily. however. The Member States have been free to add more stringent rules to protect consumers in their national laws. the CAT upheld part of BAA’s application for review. The directive defines a range of the organisers’ and retailers’ obligations and liabilities as well as the related consumer rights. instead of buying pre-arranged travel packages. As a result of these developments.Travel & Tourism Market PEST Analysis In December 2009. it is estimated that less than 50% of passengers on leisure flights are protected under the Directive. © Key Note Ltd 2010 43 . compared to 98% in 1997. The development of the Internet and the emergence of low-cost air carriers have. The directive covers pre-arranged holiday packages which combine at least two of the following: • transport • accommodation • other tourist services not ancillary to transport or accommodation and accounting for a significant proportion of the package. The CC.

the level of information that consumers should be provided with. “During its worst period. Carriers including British Airways. meals and taxi costs incurred during the volcanic ash cloud. However.7bn in lost revenue.2bn in 2010. Airline bosses have also been left frustrated after a meeting in June 2010 with the transport minister. the crisis impacted 29% of global aviation and affected 1. For example. ECONOMIC FACTORS Volcano Crisis Cost Airlines $1.Travel & Tourism Market PEST Analysis To address these issues. the European Commission launched its own review of the PTD in November 2009. lost revenues reached $400m per day. The scale of the crisis eclipsed 9/11. the crisis was devastating. the fuel bill was $110m lower per day compared to normal daily flight activity. Virgin Atlantic.7bn The International Air Transport Association (IATA) has estimated that the Icelandic volcano crisis cost airlines more than $1. some cost savings were made relating to flight groundings. According to IATA. For an industry that lost $9. when disruptions were at their greatest. when US airspace was closed for 3 days”. after he ruled out compensation from the UK Government over the ash cloud. easyJet and Thomson Airways had met with the transport secretary to put their case forward for compensation. Innovation and Skills (BIS) insists that the interpretation of the 1992 Package Travel Regulations remains a matter for the courts.2 million passengers a day. the airlines faced added costs including those from passenger care. Once the various drafting and Committee stages have been pursued. In the 3-day period from 17th to 19th April. and rule in favour of consumers as a result. © Key Note Ltd 2010 44 . Giovanni Bisignani. and other aspects of how the sector operates. IATA’S Director General and its Chief Executive Officer (CEO). The Commission has also published a report on consumer detriment arising from the sale of dynamic packages. the level of financial protection consumers should expect from travel agents and tour operators. and lawyers have warned that court judges’ rulings over unprecedented ash-related compensation cases could be influenced by such advice. who should be responsible for any consumer problems. the industry has attacked the guidance for being too ‘consumer focused’. However. revealed that. Government Advises Operators to Foot the Ash Bill Many hundreds of small tour operators could suffer after government guidance suggested that they should pay for hotels. The review asked for opinions from the travel industry on the scope of the PTD. The Department for Business.4bn in 2009. there is a potential for a new directive to be finalised and agreed in 2012. particularly since Europe’s carriers were already expected to lose $2.

although it is covered by the PTD.000 people overseas. 29 ATOL holders went into administration. The AITO is targeting operators offering packages combining accommodation and other travel components within the destination. In the year ending 31st March 2010.000 others will receive a refund. leaving an estimated 16. such as transport. which operated as both an airline and travel agent. companies going into administration. Association of Independent Tour Operators Puts Pressure on ’Rogue Traders’ The Association of Independent Tour Operators (AITO) has drawn up a list of about 30 companies that it believes are flouting consumer protection laws as a result of its ‘Rogue Trader’ clampdown. The AITO members provide bonding for such packages and are angry at being potentially undercut by competitors who do not carry the costs of meeting obligations that protect customers. In the first half of 2010. almost 2. which specialised in low-cost holidays to Greece and Turkey. with one of the most notable failures being the Globespan Group.Travel & Tourism Market PEST Analysis The Collapse of Goldtrail Travel Ltd In July 2010. Some argue that travel agents may also need to think again about booking the cheapest option and question if it is actually value for money. in addition to Goldtrail Travel Ltd. Goldtrail. the holiday plans of tens of thousands of people were affected after the collapse of the travel operator Goldtrail Travel Ltd. reported to be paying less than £3 per person per day including breakfast for accommodation in Turkey. greater competition and higher levels of complaints from customers. an adventure activity or a cultural tour. and some believe that its collapse should be a salutary lesson to the trade. and which ceased trading in December 2009. Goldtrail was a medium-sized independent operator which carried around 250. The campaign is aimed at small and medium-sized operators with a ‘non-licensable’ turnover that does not come under ATOL as it does not involve flights departing from the UK. The demise of Goldtrail is being blamed on the increasingly popular discounting culture seen in recent years within the travel industry. especially in terms of lower profit margins. © Key Note Ltd 2010 45 .500 ATOL-protected passengers were able to complete their holiday during this period and around 45. around ten ATOL tour operators. for example. As a result of the protection afforded by ATOL and the ATTF. ceased trading. Goldtrail was. went into administration. The feeling now is that travel companies should look at the long-term effects that such discounting is having on the industry. The Association has taken matters into its own hands out of frustration at trading standards not taking action against companies operating without bonding.000 passengers in 2009.

which cost £2m. the Unite union has also announced that it is to hold a strike ballot amongst BAA staff. restaurants and hotels since 2003. Visit London also claims to have attracted more than £1bn in extra trade for the capital’s shops. Glasgow. Visit London. During the June 5-day stoppage. Southampton. Visit London launched its ‘Only in London’ campaign. Boris Johnson argued. The airport operator says its offer to the Union is reasonable at a time when the industry is recovering from recession and the volcanic ash cloud disruption.The industry also helps support 253. In another development. BA cabin crew went on strike for a total of 22 days between March and June 2010. although Unite has disputed these figures. Aberdeen and Edinburgh. who are members of the Unite union. Stansted. which would effectively lead to its demise. which promotes the capital across the world and has a key role in encouraging visitors to the 2012 Olympics. The Union will ballot 6. in order to attract more tourists and business travellers to London and which it estimates brought in approximately £100m in trade.7m annual grant.Travel & Tourism Market PEST Analysis Visit London Saved from Grant Cut London’s tourism agency has apparently been spared after Mayor Boris Johnson made a last-minute plea to the Chancellor of the Exchequer. firefighters and support staff at BAA airports including Heathrow. which is paid through the London Development Agency. George Osborne. for example. the airline said it ran 80% of long-haul flights and 60% of short-haul flights from Heathrow. British Airways (BA) cabin crew. engineers. that tourism is a key driver of London’s economy. © Key Note Ltd 2010 46 . with nearly 15 million overseas visitors and more than 11 million domestic visitors in 2008.000 jobs and results in around £22bn of visitor expenditure in the city every year. A decision to cancel the grant would seemingly put in jeopardy other sources of funding for the tourism body. In 2009. was set to fall victim to the Government’s £6bn cuts programme with the Treasury planning to end its £15.185 staff including security staff. voted against BA’s latest payment plan and the rejection means that Unite is likely to ballot members on further strike action. although any further walkouts will not take place until after the summer. SOCIAL Industrial Actions Continue to Affect Air Travel Sector The air travel sector continues to be affected by strike action. The 11. however. are set to go on strike again in the autumn of 2010 after rejecting the airline’s latest peace deal.000 cabin crew. a move that is estimated to have cost BA around £150m.

What is now proposed is that the British-flag operators pay British rates to these seafarers. In a letter to the Daily Telegraph on 2nd July 2010. encourage bus priority and park and ride. reducing billions of car journeys and making a huge contribution to the Government’s carbon reduction targets as a result. With the widespread application of policies supporting bus and coach travel. and other measures to cut commutes by car. David Cameron. Prime Minister (PM). Greener Journeys has a target of reducing 2 million tonnes of carbon dioxide (CO2) by 2010. The costs will put the company’s British operations under pressures not felt by competitors abroad. The operators state that they currently pay seafarers. reliability and convenience. which would deliver an additional 50% reduction in the CO2 produced from domestic transport to that anticipated over the same period by current Government policies. Greener Journeys is calling on the Government to set targets for local authorities to encourage modal shift. the ferry operators warned that many major shipping companies will have little choice but to register their ships outside of Britain due to obscure regulations arising from the Equality Act. According to the companies. These measures would see both existing and new passengers attracted by added comfort. promote investment in low-carbon buses. salaries that are related to those of highly skilled professionals in their home countries. © Key Note Ltd 2010 47 . is being urged to intervene. the UK’s five largest bus groups joined forces to launch a Greener Journeys campaign. Greener Journeys Campaign In September 2009. The campaign is recommending a range of policy initiatives designed to encourage modal shift and to reduce the number of car journeys in the UK by one billion over 3 years. the major bus groups would like to go much further. who reside abroad. even though they may never set foot on British soil.Travel & Tourism Market PEST Analysis Cruise and ferry firms oppose new crew salary rules The bosses of Carnival UK and ferry companies P&O and Stena Line have warned that new rules could lead to ‘intolerable’ crew costs in the UK. this could be achieved if people switched from car to bus or coach for just 1 journey in 25.

the Government outlined a package of additional measures to enhance aviation security. and the introduction of Advanced Imaging Technology (AIT). Holiday Extras. Thomson. the way UK airports are regulated is in urgent need of reform.Travel & Tourism Market PEST Analysis Holidaymakers Urged To Go Greener According to research from ABTA and The Travel Foundation. and a new system of licensing will allow the CAA to tailor regulations to meet the requirements of individual airports rather than applying the same conditions to all of the airports that it regulates. almost half of Britons admit that their ‘green awareness’ is forgotten when they go on holiday. These measures included: an increase in the use of explosive trace detection. when the aviation sector looked very different from today. The Government has also scrapped plans to give a new remit to Passenger Focus to represent air passengers and intends to explore other options for strengthening passenger representation. Thomas Cook. not having towels laundered on a daily basis and turning off air conditioning when it’s not needed. The survey found that almost 90% of people say that they regularly recycle bottles. and to take action against airports that underperform. First Choice. also known as security scanners. such as new baggage handling equipment. preferring instead to make those airports better and not bigger. It will also be given new powers to investigate and take action against anti-competitive behaviour. Gatwick or Stansted. Virgin Atlantic and Virgin Holidays. According to the Transport Secretary. The current economic regulation legislation dates from 1986. but less than half keep this up when they go away. © Key Note Ltd 2010 48 . The suggestions include taking short showers rather than baths. One in five holidaymakers also admit that they switch off completely when they’re on a beach break and don’t even consider the environment. Teletext Holidays. The campaign is being supported by ABTA and a number of travel firms including The Co-operative Travel. plans for greater random searching of passengers. TECHNICAL The introduction of Advanced Imaging Technology Following the attempted attack on Northwest Airlines flight 253 to Detroit on Christmas Day 2009. The Government has already announced that they do not support the building of new runways at Heathrow. cans and paper in their day-to-day life. The aim is now to put passengers at the heart of how airports are run. CAA to be given new duty to help passengers The CAA is to be given a primary duty to promote the interests of passengers. under new government proposals. a national campaign from The Travel Foundation which urges people to do things on their summer break to make a difference to the place that they are visiting and the people that live there. The CAA will be asked to help drive investment that focuses on passengers. The findings were revealed as part of the first ‘make holidays greener’ week.

Arriva’s introduction of m-ticketing.000 routes served by the operator’s regional fleet of buses. © Key Note Ltd 2010 49 . which is believed to be the largest deployment of its kind worldwide. However. they considered it was imperative to act quickly to strengthen UK airport security measures for the protection of all passengers boarding flights. The Government would have liked to have a longer period of consultation before introducing the security scanners. weekly and 4-weekly tickets via their mobile phones following the national launch of its m-ticketing service.Travel & Tourism Market PEST Analysis The requirement to deploy AIT machines came into effect on 1st February 2010. initially affecting Heathrow and Manchester airports. the company announced that customers across its regional bus businesses in England. Following their introduction at Heathrow and Manchester. Arriva sees its m-ticketing approach as having major advantages over some other mobile ticketing systems in that it can be rolled out across the Arriva networks without any downtime for vehicles or costly onboard technology. Scotland and Wales would be able to buy daily. Once downloaded it allows people to purchase a range of tickets which can be bought either directly through the application via a registered card or by purchasing credit from any PayPoint outlet either by cash or card. The m-ticketing service involves downloading a free application directly onto customers’ phones. Bus Users Get Mobile with Arriva M-Ticketing Launch Arriva has become the first UK bus operator to introduce mobile phone ticketing for all of its regional services. Arriva also believes that the convenience to customers of having their ticket on their mobile will encourage more customers to purchase multi-journey tickets. given the urgency of the situation following the Detroit attack. covers approximately 1. the scanners are to be installed at Birmingham and Gatwick airports and then rolled out across the country. The scanners are designed to give airport security staff a much better chance of detecting explosives or other potentially harmful items hidden on a passenger’s body. In November 2009.

The airliner is also quieter than conventional aircraft. and its lighter weight means it requires less runway distance to take off and land. to provide accurate maps of where the ash is. rather than relying on computer-generated predictions.000 feet and 50. which will carry out tests in areas of the world where there are active volcanoes within 2 months. as a whole. They will initially be used on short. Among the UK travel companies with orders for the Dreamliner are TUI Travel. making it lighter and more fuel-efficient than previous aircraft. has been available since 1993. the airline announced a trial period for the cameras. which allow pilots to see ash up to 100km ahead of the aircraft at altitudes between 5. TUI’s Dreamliners are due to be delivered in early 2012. easyJet Unveils Ash Detector Plan easyJet is aiming to fit 12 of its aircraft with infrared cameras capable of detecting volcanic ash in the atmosphere. The pilots will then have about 5 minutes to change course in order to avoid the ash. easyJet believes that the cameras will also allow the industry. but has never previously been used by commercial airlines as there was no perceived need. The first stage of the trial will be to fit a camera to an Airbus A340. and they will be introduced into Thomson and First Choice’s holiday programmes in the winter of that same year. The accuracy of the predictions that led to the grounding of flights within Europe in April has since been questioned by the aviation industry. If successful. © Key Note Ltd 2010 50 . The system. large overhead bins and lighting that will mimic sunset and sunrise during the journey to reduce jet lag. The aircraft is revolutionary in that it is made of composite materials.000 feet. It also has a series of cabin features designed to make flying a more comfortable experience such as bigger windows. The system should allow individual pilots to take action to avoid ash once it is detected by the cameras. The AVOID system was developed by the Norwegian Institute for Air Research (NILU).and medium-haul routes for the first few months to iron out any operational teething problems before being used for long-haul destinations. easyJet hopes that other carriers will follow suit and that the cameras will be fitted to hundreds of aircraft. In June 2010.Travel & Tourism Market PEST Analysis Dreamliner Visits the UK The aircraft that could revolutionise leisure air travel made its visit to Britain in July 2010 when the Boeing 787 Dreamliner touched down at the Farnborough Air Show. which has been called Airborne Volcanic Object Identifier and Detector (AVOID).

Travel & Tourism Market

Consumer Research

3. Consumer Research
INTRODUCTION
Kantar Media’s annual Target Group Index (TGI) survey examines various aspects of consumer holidays, including the number of holidays taken at home and abroad in the past 12 months, the method and timing of bookings, the sources used to gather information, the type of holiday, the length of stay, the type of accommodation, the mode of travel and the cost of the holiday. Key Note has based this chapter on the TGI findings.

NUMBER OF HOLIDAYS TAKEN
According to the September 2009 TGI survey results, 69.3% of British adults had taken a holiday or short break, either in the British Isles or abroad, in the previous 12 months. In the year ending March 2008, 66.3% of British adults had taken a holiday either in the British Isles or abroad.

Table 3.1: Penetration of Holidays in the Last 12 Months (% of adults), Years Ending March 2005-2008 and September 2009
2005 Taken holiday in last 12 months Taken no holiday in last 12 months Total 2006 2007 2008 2009

64.6 35.4 100.0

64.9 35.1 100.0

66.5 33.5 100.0

66.3 33.7 100.0

†69.3

30.7 100.0

† — includes holidays and short breaks Note: data exclude short visits to relatives.

Source: Target Group Index (TGI) © Kantar Media, Quarter 3 (April-March), 2005, 2006, 2007, 2008 and 2009

© Key Note Ltd 2010

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Travel & Tourism Market

Consumer Research

In the year ending September 2009, 28.8% of British adults took one or more holidays in the British Isles and 43% of British adults took one or more short breaks — defined as 3 nights or less — in the British Isles. The percentage of adults taking holidays abroad was, at 32.8%, higher than the proportion of adults taking holidays in the UK ,whereas the percentage of adults taking short breaks abroad was, at 16.1%, considerably lower than the proportion taking short breaks in Britain.

Table 3.2: Number of Holidays and Short Breaks Taken in the British Isles and Abroad in the Last 12 Months (% of adults), September 2009
Holidays British Isles One Two Three or more 17.7 6.9 4.2 Abroad 19.2 8.3 5.3 Short Breaks British Isles 19.8 13.8 9.4 Abroad 9.2 4.4 2.5

Note: Short breaks are classed as 3 nights or less.

Source: Target Group Index (TGI), © Kantar Media,2009

By Socio-Demographic Group
The penetration of one or more holidays in the British Isles and one or more holidays abroad by socio-demographic group in the last 12 months is analysed in Table 3.3. In the year ending September 2009, the proportion of British females who took one holiday in the British Isles exceeded the proportion of males in the same category, whereas for one or two holidays abroad, the proportion of males exceeded the percentage of females. This trend was reversed for three or more holidays abroad which attracted a higher percentage of females than males. Penetration rates for taking one holiday in the British Isles peaked within the 35 to 44 age group, but were highest in the 65 and over age group in regards to taking two or more holidays. These age trends differ a little for holidays taken abroad, with the peak penetration rate for taking one holiday abroad being within the 45 to 54 age group, and within the 55 to 64 age group when taking two or more holidays.

© Key Note Ltd 2010

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Travel & Tourism Market

Consumer Research

As might be expected, the propensity for taking holidays, and particularly two or more holidays, tends to be associated with social grade. For example, 18.3% of adults in social grade A took two holidays abroad in the year ending September 2009, compared with 4.2% of adults in social grade D and 2.3% of adults in social grade E. Social grade differences are less apparent for adults who took one holiday in the British Isles, although they do become more pronounced as the number of holidays taken in Britain increases. Regionally, the highest penetration rate for taking three or more holidays in the British Isles is in the North West at 7.1%, with the lowest penetration rate being in the North at 1.4%. The highest penetration rate for taking three or more holidays abroad is in Greater London at 8.4% and the lowest is in Wales at 2%.

Table 3.3: Penetration of Holidays in the British Isles or Abroad in the Last 12 Months by Number of Holidays and Socio-Demographic Group (% of adults), September 2009
British Isles One All adults Sex Male Female Age 15-24 25-34 35-44 45-54 55-64 65+ Social Grade A B C1 C2 D E 19.2 19.6 18.0 18.9 15.6 11.5 9.9 8.8 6.6 6.9 4.8 4.5 5.8 6.8 4.2 3.3 2.0 1.9 21.2 25.5 19.5 20.2 13.3 7.5 18.3 13.7 6.6 8.4 4.2 2.3 8.0 9.0 6.0 3.1 2.1 2.4 11.2 17.2 22.0 19.3 17.6 18.4 3.5 5.4 4.4 5.3 9.3 12.5 0.9 1.2 3.7 2.8 6.5 8.9 20.5 18.4 22.2 23.4 18.0 13.5 7.5 7.2 5.6 9.7 13.1 7.9 6.0 3.1 2.8 5.2 9.5 5.6 17.2 18.3 6.5 7.2 3.5 4.8 20.1 18.3 9.7 7.1 4.9 5.6 17.7 Two 6.9 Three or more 4.2 One 19.2 Abroad Two 8.3 Three or more 5.3

Table continues...

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Travel & Tourism Market

Consumer Research

Table 3.3: Penetration of Holidays in the British Isles or Abroad in the Last 12 Months by Number of Holidays and Socio-Demographic Group (% of adults), September 2009
...table continued
British Isles One Region Scotland North West North Yorkshire and Humberside East Midlands East Anglia South East Greater London South West Wales West Midlands 17.7 18.3 12.1 16.5 22.0 18.0 17.6 12.8 23.0 12.3 22.8 4.9 8.9 7.5 6.3 11.4 7.6 7.0 4.3 3.3 4.9 10.4 3.3 7.1 1.4 4.8 3.3 5.3 3.4 4.1 4.3 4.2 4.2 18.7 19.2 15.5 18.0 19.3 19.7 18.9 22.2 17.0 13.9 24.1 7.7 6.6 11.0 4.2 9.5 7.7 8.4 11.9 10.4 2.7 8.8 4.4 8.1 3.6 2.6 5.2 3.0 5.3 8.4 7.1 2.0 2.9 Two Three or more One Abroad Two Three or more

Source: Target Group Index (TGI), © Kantar Media, 2009

PLANNING A HOLIDAY
The Internet remains by far the most popular source of information used when planning a holiday or short break. According to the TGI survey, 25.8% of adults used the Internet when planning their most recent holiday in the 12 months ending September 2009 and 19% used it when planning their most recent short break within the same period. There are some variations between holidays and short breaks in the popularity of other sources of information. For example, travel agents were used by 10.2% of adults who were planning holidays but by just 1.3% of adults who were planning short breaks.

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1 1.3 1.4: Sources Used to Obtain Information for the Most Recent Holiday or Short Break Taken in the Last 12 Months (% of adults).1 3.3 0.3% of adults used a travel agent to book their last package holiday in the year ending September 2009 and 8.6 10. This compares with 2.7% of adults used a tour operator to book their last package holiday. The use of travel agents and tour operators to book short breaks is fairly small. 17.8 0.3 5.9 0.8 10.Travel & Tourism Market Consumer Research Table 3. In 2009.2 1.5% of adults made their own arrangements when booking their last short break. 2009 25.4 1.9 1.2 11.3 1. © Kantar Media.1% of adults made their own arrangements when booking their last holiday and 18.2% of adults who used a travel agent to book their last holiday accommodation.0 Short Breaks 19.2 7.1 0.5% of respondents did use a travel agent to book their last short break accommodation in the year ending September 2009.4 1.3 3.2 10.1 4.3 4.7 1. 12.3 0. © Key Note Ltd 2010 55 . although 3.0 9.9 BOOKING A HOLIDAY The trend for individuals to make their own travel arrangements remains popular among holidaymakers. September 2009 Holidays Internet Been there before Family/friends Travel agent Brochures Tour operator/travel company Guidebooks Accommodation provider Advertisement Teletext Tourist information centre TV travel programme Other Sources Source: Target Group Index (TGI).

7% of adults booked about 1 month before their trip.3 0.7 7.6% of adults booked their most recent short break within 2 weeks of their trip and 10.3%) booked their most recent holiday 3 months in advance and 6.7 3. For example.5 In general. adults taking holidays tend to book their trips earlier in advance than adults taking short breaks. only 3.. the largest percentage of adults (8.6 3.1 Short Break 18.6: How Far in Advance the Booking was Made for the Most Recent Holiday or Short Break Taken in the Last 12 Months (% of adults).2 5.0 Table continues.7 8.5: Method of Booking the Most Recent Holiday or Short Break Taken in the Last 12 Months (% of adults). September 2009 Holiday Under 2 weeks About 1 month 2 months 4.3 2.3 Short Break 9. September 2009 Holiday Made own travel/accommodation arrangements Travel Agent Used travel agent to book package holiday Used travel agent to book accommodation only Used travel agent to book flight only Tour Operator Used tour operator to book package tour Used tour operator to book flight only Source: Target Group Index (TGI) © Kantar Media.Travel & Tourism Market Consumer Research Table 3.9 12. 2009 8.. By comparison.7% booked a month before their trip. Table 3.2 2. By contrast. © Key Note Ltd 2010 56 . 9. For holidays.5% of adults taking their most recent short break booked it more than 6 months in advance.6 10.0 2.5 0. just 4.9 17.9 7. in the year ending September 2009.9% of adults taking their most recent holidays booked it within 2 weeks of the trip and 7.7% of adults booked their holiday 10 or more months in advance.

7 2.6: How Far in Advance the Booking was Made for the Most Recent Holiday or Short Break Taken in the Last 12 Months (% of adults).9 Short Break 5. September 2009 . It may be.Travel & Tourism Market Consumer Research Table 3.g.5 3.1 5. e. people might fly or take the train to cover long distances within Great Britain (for example..7 1. for some methods of travel. coach and rail. the survey found that 27% of respondents holidayed with their own car when taking their most recent short break and 17% used their own car on their most recent holiday. and then hire a car on arrival.2 Source: Target Group Index (TGI) © Kantar Media. is considerably more likely for adults who took holidays rather than short breaks. The survey also covers the main method of travel used. the results do not generally distinguish between holidays in the British Isles and holidays abroad.5 1. for example. © Key Note Ltd 2010 57 . The use of air travel.5 2. Similarly. while the use of rail travel is more likely for adults who took a short break rather than a holiday. from the south of England to Scotland).8 1. but does not take into account the use of multiple types of transport.table continued Holiday 3 months 4 months 5 months 6-7 months 8-9 months 10 months or more No booking required 8.9 7.3 5.6 6.7 0. scheduled and charter. Taking these qualifications into consideration. that some holidaymakers fly to their destination but use a hired self-drive car for the duration of their stay. It should be noted that..1 1. 2009 METHOD OF TRAVEL Respondents to the TGI survey were also asked about the main method of travel used for their most recent holiday taken in the previous 12 months.

8% of respondents stayed in a guest house.4 2. while a caravan was the most popular choice for adults taking a short break. with 9.8 2.0 9.3 3.4% of adults stayed in a guest house.or half-board basis.4 27.4 5.3% on an all-inclusive basis and 4% who booked a room only. A further 1.9 2. renting a villa.2% indicating that they had used a hotel on their most recent holiday.4 TYPE OF ACCOMMODATION Hotels are the most popular type of accommodation for adults taking holidays or short breaks. with bed and breakfast the most popular option. flat.4 3.3 1.6% of adults on a bed-and-breakfast basis.6 1.7% of adults having stayed in a hotel on their most recent vacation. while a further 4.8 0.8 1.1 0. Staying with friends or relatives was the second most popular accommodation option for adults taking a short break in 2009. with 26.3%) stayed on a full.7: Main Mode of Travel Used for the Most Recent Holiday or Short Break Taken in the Last 12 Months (% of adults).Travel & Tourism Market Consumer Research Table 3.5% of respondents opting for this. 2009 22. © Key Note Ltd 2010 58 .2 17. The situation was similar for short breaks with 22. The highest penetration of adults (9.7 0.9 1. cottage or chalet was the most popular choice for adults taking a holiday in 2009. 6. followed by 6.3 0.8 Short Break 5. Of the self-catering options. September 2009 Holiday Air (scheduled) Personal car or motorbike Air (charter) Coach Ferry Sea cruise Hire car or motorbike Other Rail Eurotunnel (with vehicle) Train (Eurostar) Source: Target Group Index (TGI) © Kantar Media.6 0.0 1.2 1.

0 1. September 2009 Holiday Hotel/Guest House Hotel (full or half board) Hotel (bed and breakfast) Hotel (all inclusive) Hotel (room only) Guest house Self Catering Rented villa/flat/cottage/chalet Caravan Own holiday home or timeshare Camping/tent Timeshare Stayed with friends/relatives Others Source: Target Group Index (TGI).7 11. © Kantar Media.4 6.7 5.5 2.1 9. which was chosen by 6.2 3.5 1.2 9. and was undertaken by 12.8 Short Break TYPE OF HOLIDAY A beach or resort holiday remains by far the most popular type of vacation undertaken by respondents to the TGI survey.7 2.8 7.6 6.9 3.Travel & Tourism Market Consumer Research Table 3. with the second most popular choice being a holiday centre vacation.7 4. By contrast. the most recent holiday undertaken by 22. The second most popular short break option was a holiday centre visit followed by a beach/resort short break.5% of adults was a beach or resort holiday.3 4. In the year ending September 2009.4% of respondents in the same year. © Key Note Ltd 2010 59 .8: Type of Accommodation Used for the Most Recent Holiday or Short Break Taken in the Last 12 Months (% of adults).6 5.2% of adults in 2009.0 0.3 2.1 3. 2009 11.3 4.0 1.3 6. a city break holiday was the most popular recent short break option.3 3.

8 4.3 0.4 0. 13.2 0.1 1.2 Short Break 6.0 0. the predominant length of stay for short breaks is 1 to 3 nights.9 0. 2009 LENGTH OF STAY The traditional 7-night holiday remains the most popular length of stay for British adults.Travel & Tourism Market Consumer Research Table 3.3 Source: Target Group Index (TGI). In the year ending September 2009.4 1.6 1. with a further 13.5 0.3 1.7 1.5 2.3 12.1% of adults on their most recent short break.1 0.5% of adults stayed for 7 nights on their most recent holiday.3 0.4 7. As might be expected. Stays beyond 6 days were taken by 10.7% of adults staying for between 4 and 6 nights. In the year ending September 2009.8 0.5 16. September 2009 Holiday Beach/resort Others Holiday centre Lakes and mountains City break Cruise Coach tour Theme park Skiing/winter sports Backpacking Multi-country Boating holiday Safari Golfing Spas/health spas Watersports 22.6 16.6 0. The third most popular length of stay was 21 nights with 9.1 0.4 4.4 2. © Kantar Media. © Key Note Ltd 2010 60 .3 0.6 0.6 0. 19% of adults stayed for this period of time while on their most recent short break.9% of adults staying for 14 nights.6 0.9: Most Recent Holiday or Short Break Taken in the Last 12 Months — Type of Holiday (% of adults).1 6.9% of adults staying for this period of time during their most recent holiday.4 3. with a further 10.

At the very top end of the cost range.5 9..9 5.5% of adults who spent this amount on their most recent holiday.8 1.10: Most Recent Holiday or Short Break Taken in the Last 12 Months — Length of Stay (% of adults). September 2010 Holiday Under £100 £100-£249 £250-£499 £500-£749 2.6 Table continues.6% of adults spent £1.. © Kantar Media.5 9. there were considerable differences between the total cost of holidays and short breaks.5 Short Break 9.7 3.6 4.0 7.6 Source: Target Group Index (TGI).8% of adults who spent £1.3%) spent £2. almost one in 10 adults (9. At the other end of the cost range.1 10.8 9.9 Short Break 19. 2009 COST OF HOLIDAY As might be expected.0 4.4 8.11: Total Cost of Most Recent Holiday or Short Break Taken in the Last 12 Months (% of adults). the total cost of the most recent short break taken by 23.Travel & Tourism Market Consumer Research Table 3.000 or more on their most recent holiday.000 or more on their most recent short break compared to 23.3 7.2% of British adults was £249 or less compared to just 6.3 0. just 2.5 13. Table 3.500 or more on their most recent holiday.1 4.4 13. © Key Note Ltd 2010 61 .4 0.0 13. In the year ending September 2009. September 2009 Holiday 1 to 3 nights 4 to 6 nights 7 nights 8 to 13 nights 14 nights 15 to 20 nights 21 nights or more 2.

750-£2.5 Note: data relates to the total cost of the holiday. for the party. Source: Target Group Index (TGI).table continued Holiday £750-£999 £1.5 0.6 4..000-£1. excluding spending money. © Kantar Media.499 £2.0 1. September 2010 .6 0.500+ 7. 2009 © Key Note Ltd 2010 62 .9 9.5 9..749 £1.11: Total Cost of Most Recent Holiday or Short Break Taken in the Last 12 Months (% of adults).Travel & Tourism Market Consumer Research Table 3.3 Short Break 2.

These include British Airways PLC. Thomson Airways Ltd. and National Express Group PLC. © Key Note Ltd 2010 63 . although only a small number of these companies have a significant presence in the main market sectors. 2010 Company British Airways PLC FirstGroup PLC Market Inbound and outbound Domestic Industry Sector Scheduled airline Bus and train operator Bus. which is principally involved in the inbound and outbound scheduled airline sector. Table 4. which is the UK’s leading charter airline.Travel & Tourism Market Competitive Structure 4. international flights and international destinations. which is the UK’s leading travel agent and tour operator.1: Leaders in the UK Travel and Tourism Industry by Market and Industry Sector. FirstGroup PLC. coach and train National Express Group PLC Domestic and outbound operator P&O Ferries Ltd Thomson Airways Ltd TUI Travel PLC Source: Key Note Inbound and outbound Outbound Outbound Ferry operator Charter airline Travel agent and tour operators MARKET LEADERS British Airways PLC Company Structure British Airways PLC is the largest airline in the UK based on fleet size. British Airways was also the largest UK airline in terms of passenger numbers. which is the UK’s leading ferry operator. and TUI Travel PLC. although the low-cost carrier easyJet has now surpassed British Airways on that measure. which both have leading positions in the UK bus and train sectors. Competitive Structure THE MARKETPLACE The UK travel and tourism market is served by a wide range of companies from a variety of sectors. Until 2008. P&O Ferries Ltd.

Travel & Tourism Market Competitive Structure British Airways offers flights to 150 destinations across the UK. and the Scandinavian company. British Airways PLC reported a fall in turnover of 11. which operates flights from Paris (Orly) to New York and Washington airports. © Key Note Ltd 2010 64 . It has a fleet of nearly 8. Europe. the Americas. British Airways has reached an agreement to merge with the Spanish airline Iberia. the Middle East and Asia/Pacific. running more than one in five of all local bus services. mainland Europe and North America. The merger was confirmed in April 2010. The company transports some 2. and has a fleet of over 230 aircraft. and OpenSkies. the airline has recently discontinued all direct overseas flights from non-London airports and international passengers originating at non-London airports must now connect via London. FirstGroup PLC Company Structure FirstGroup PLC is a leading transport operator in the UK. In the UK. a global alliance that brings together 11 of the world’s largest airlines including American Airlines. Japan Airlines and Qantas. The company has franchise arrangements with the South Africa-based airline Comair. The merger between the two carriers will create the world’s third-largest airline in terms of annual revenue and the second-largest airline group within Europe. Its main base is London Heathrow where it owns around 40% of the takeoff and landing slots. British Airways had two passenger airline subsidiary businesses: BA CityFlyer. and it is expected to be completed by the end of the same year. Other British Airways interests include a 10% stake in Eurostar (UK) Ltd and a cargo subsidiary. Iberia. and also owns stakes in the Spanish airline Iberia and the low-cost UK airline FlyBe. The company also operates domestic flights from a number of non-London airports. However. Sun Air. FirstGroup also operates Greyhound UK which provides regular services between London and Portsmouth and London and Southampton. British Airways World Cargo. British Airways also has a second hub at Gatwick airport and operates overseas flights from London City airport.1% to £7.000 staff.99bn. A pre-tax loss of £531m was announced in 2010 compared to a pre-tax loss of £401m in 2009.5 billion passengers a year and employs more than 130. which operates a network of domestic and European services from London City airport. British Airways is a member of the oneworld alliance. Financial Results In the year ending 31st March 2010. FirstGroup is Britain’s largest bus operator.500 buses and these carry approximately 3 million passengers a day in more than 40 major towns and cities. Africa.

This service has a fleet of approximately 60.19bn. the national coach service airport links and European coach services. FirstGroup announced the disposal of GB Railfreight Ltd. a provider of rail freight services to Europorte. Greyhound provides scheduled passenger services to approximately 3. Financial Results In the year ending 31st March 2010. FirstGroup also operates Greyhound. First Great Western. In North America. The company’s UK bus operation contributed £1. and school bus services in North America. The company operates over 1. In the UK. with its partner DSB. while its pre-tax profit fell by 10. It also operates buses in Dundee and Scotland.1% to £6. National Express runs a high-frequency urban bus service in Birmingham and the West Midlands.800 destinations throughout the US and Canada and carries approximately 20 million passengers annually. © Key Note Ltd 2010 65 . which is the largest provider of student transportation in North America.700 destinations and provides approximately 18.900 buses and carries approximately 320 million passengers a year.32bn. as well as the Travel Midland Metro light-rail service (tram) in Birmingham. In mainland Europe. FirstGroup PLC’s activities include the operation of Yellow School Buses (First Student).5 million passenger journeys each year. Its coach operations cover a large. The service operates to more than 1.17bn to group turnover in the year ending 31st March 2010 and its UK rail operation contributed £2. coach and train service operations in the UK.Travel & Tourism Market Competitive Structure FirstGroup is also a major operator of passenger rail services in the UK and currently holds four passenger franchises which include First Capital Connect. In addition. FirstGroup PLC’s turnover increased by 2. FirstGroup operates around 150 buses in south west Germany and. integrated network of scheduled services covering three segments — shuttle. National Express Group PLC Company Structure National Express Group PLC is a leading international public transport group. operates the Øresund rail franchise which includes routes in and between Denmark and Sweden.6m.000 yellow school buses and carries nearly 4 million students every day across the US and Canada.2% to £179. the company operates the open-access service First Hull Trains and the London Tramlink network on behalf of Transport for London (TfL). In June 2010. The disposal of GB Railfreight was part of the FirstGroup strategy of focusing on its core passenger transport businesses in the UK and North America. First ScotRail and First TransPennine Express. bus and coach operations in Spain. which is the only national provider of scheduled intercity coach services in the US and Canada. with bus.

In North America. the train division contributed £1.000 people and over 12. These two ships operate one overnight sailing in each direction per day. The service operates in 27 states and two Canadian provinces. Pride of Canterbury.9m in 2008. The company reported a pre-tax loss of £83. National Express relinquished its loss-making East Coast franchise although it will continue to operate its remaining two rail franchises to their normal termination dates in 2011. The European Seaway. © Key Note Ltd 2010 66 . These two ships operate one overnight sailing in each direction per day. National Express operates yellow school buses in the US and Canada. c2c. and Teesport to Rotterdam or Zeebrugge.Travel & Tourism Market Competitive Structure National Express UK rail services include the operation of the East Anglia service and the London commuter service.000 vehicles. • Hull to Rotterdam — P&O operates two vessels. According to the company’s annual accounts for 2009. Belgium and Spain.4m and the UK coach division £235. Pride of Burgundy. P&O Ferries Ltd Company Structure P&O Ferries Ltd offers services to mainland Europe from Dover.71bn.19bn to overall turnover in 2009. United Arab Emirates-based Dubai World Corporation is P&O Ferries Ltd’s ultimate holding company. while the UK bus division contributed £293. which is a leading European provider of tailor-made transportation and logistics services. Hull and Portsmouth to destinations in France. The company also operates a mixture of freight and passenger services under the name P&O Irish Sea from Cairnyan or Troon to Larne. Freight-only services are operated by the company from Tilbury to Zeebrugge. also operates on the Dover to Calais route. It also has a sister company.400 vehicles and 6. In November 2009. P&O Ferries operates four ferry routes from the UK to the Continent: • Dover to Calais — P&O operates five vessels and makes up to 46 sailings a day.400 employees. Pride of Calais and the Pride of Dover.5m in 2009 compared to a pre-tax profit of £109. National Express is the leading private operator of coach and bus services with 1.9m. turnover at National Express Group PLC fell by 2% to £2. The ferries operating include the Pride of Kent. Financial Results In the year ending 31st December 2009. the Pride of York and the Pride of Bruges. P&O Ferrymasters. employing 19. • Hull to Zeebrugge — P&O operates two vessels. a freight ferry. the Pride of Hull and the Pride of Rotterdam. In Spain. and from Dublin to Liverpool. Holland.

and is the world’s largest charter airline by this measure.1m in 2008 compared to a pre-tax profit of £25. with its three main UK bases being London Gatwick.000 tonnes. The airline has a fleet of around 64 aircraft.8m. Two new vessels. TUI Travel PLC Company Structure TUI Travel PLC is the world’s leading international leisure travel group with operations in approximately 180 countries worldwide. Pre-tax profit rose to £106m in 2009 from £50m in 2008.81bn from £1. The company reported a pre-tax profit of £21. Financial Results In the year ending 30th September 2009. near Gatwick airport. The airline is part of TUI Travel PLC. the Pride of Bilbao.000 people and operates a pan-European airline consisting of 146 aircraft.Travel & Tourism Market Competitive Structure • Portsmouth to Bilbao — P&O currently operates one vessel. employs around 50. Thomson offers mostly chartered flights from the UK to holiday destinations including the Mediterranean and the Caribbean. It operates flights from over 20 UK airports to more than 80 destinations. © Key Note Ltd 2010 67 . Birmingham and Manchester. will come into service with P&O in 2011.9% to £286. It has its headquarters in Crawley. each with a carrying capacity of 180 articulated lorries plus a further 200 cars and 1. Financial Results In the year ending 31st December 2008. when its charter of the Pride of Bilbao comes to an end. via the merger of First Choice Holidays PLC and the tourism division of TUI AG.750 passengers. the Spirit of Britain and the Spirit of France. the two ferries will be the largest ships ever to operate between Dover and Calais. including 27 source markets. Thomson Airways Ltd Company Structure Thomson Airways is the third-largest airline in the UK by total passengers carried. after easyJet and British Airways. which was itself created in 2007. At 213 metres long and 49. The Spirit of Britain will enter service in January 2011 and the Spirit of France in September 2011. turnover at P&O Ferries Ltd increased by 0. P&O Ferries has announced that it is withdrawing this service at the end of September 2010. They are currently being built in Finland at a cost of more than £330m.6m in 2007. It serves more than 30 million customers each year.11bn in 2008. Thomson Airways commenced operations in November 2008 following the merger and subsequent rebranding of Thomsonfly and First Choice Airways. which sails every 3 days. Thomson Airways Ltd increased its turnover to £1.

conferences and events and cruise handling. which include the sale of differentiated and exclusively available content such as holiday villages.5% to £13. transfers. excursions.Travel & Tourism Market Competitive Structure TUI Travel mainly serves the leisure travel customer and is organised and managed through three business sectors which include: Mainstream.93bn compared to £5. The Adventure division takes customers to adventure destinations. TUI Travel PLC’s interim results for the 6 months ending 31st March 2010 revealed a turnover of £4. which includes sales of flights. incentives. Financial Results In the year ending 30th September 2009. These services include hotel accommodation. Mainstream is the company’s largest business sector in terms of size. The Accommodation & Destinations sector sells and provides a range of services to tour operators. travel agents. car hire. The Student division offers holidays which range from traditional school trips in France to trek holidays for groups of young adults in the Himalayas. Specialist & Emerging Markets. It comprises leading tour operators and ‘power’ brands and operates a fleet of 146 aircraft and around 3. and Component. Central Europe and Western Europe. accommodation. and Accommodation & Destinations. The Mainstream business operates within two key segments of the leisure travel market: Mainstream holidays. The Activity sector has over 40 activity travel businesses that operate under five divisions — Marine. The business operates in the Northern Region. Student and Sport. the operations of a fourth business sector. while the Sport division offers supporter-led cricket and rugby tours in Australia and the UK. financial performance and employee numbers. The sector offers Business to Business (B2B) and Business to Consumer (B2C) services. The company reported a pre-tax loss of £52m in 2009. turnover for TUI Travel PLC fell by 0. A pre-tax loss of £367m was reported in the 6 months ending 31st March 2010 compared to a pre-tax loss of £333m in 2009. hotels and long-haul travel. and the world’s largest ski operator. transfers and excursions. corporate clients and direct to consumers. down from a pre-tax loss of £267m in 2008.500 retail shops.86bn. were transferred to other areas of the group. Following a review. Ski. Activity.38bn in the corresponding period in 2009. Adventure. These segments are sold as separate components or in combination as part of customer-assembled mainstream holidays. round trips. This sector also includes the leading yacht brands in Europe and the US. © Key Note Ltd 2010 68 .

9m) with the largest increase in expenditure being recorded by travel agents (up 16. other accommodation providers.Travel & Tourism Market Competitive Structure Other Companies There is a wide range of companies operating in the travel and tourism market. According to National Statistics’ UK Business: Activity. scheduled and non-scheduled passenger air transport.7%. a 14. security.1% to £18. IT and construction. coaches. declining by 10.4% reduction on the previous year.15 to 1. Size and Location 2009.7% and 4. manufactur of transport equipment (buses. the largest sums are committed by the transport operators who spent a combined £160. The services offered by these companies include catering.9m.1m). as well as hotels. trains and aircraft). The largest percentage fall in main media advertising expenditure in the year ending March 2010 was reported by airlines (down 22. including businesses that provide other scheduled passenger land transport. © Key Note Ltd 2010 69 . Main media advertising expenditure levels by tourist offices and tour operators fell by smaller percentages of 5. Of the sectors which contribute to overall expenditure.4% to £382.8% respectively and expenditure by the accommodation providers was down by 4. energy supply. travel agents and tour operators. sea and coastal water transport and inland water transport.21 in Chapter 1 — Industry Overview). Outside Suppliers The travel and tourism industry is supported by a wide range of companies in a variety of sectors. MARKETING ACTIVITY Main media advertising expenditure by the main sectors in the travel and tourism industry fell for the second successive year in the year ending March 2010.3m on this in the year ending March 2010.6% to £70.200 UK VAT.and/or PAYE-based enterprises were engaged in these various activities in 2008 (Tables 1. some 25. rail transport.

8 Table continues.710 44.751 17.003 53.789 16.861 2009 70.313 52. Years Ending March 2006-2010 % change 2009-2010 2006 Transport Operators Airlines† Cruises Rail Ferries Bus & Coach Total transport operators 89.347 2007 109.Travel & Tourism Market Competitive Structure Table 4.008 206. © Key Note Ltd 2010 70 .942 10.145 61.484 60.346 160.104 39.796 14.625 17.303 6.637 11.961 7.950 2010 -22.598 45.238 24.702 -5.904 14.677 12.874 11...636 30.043 24.374 187.448 60.387 48.971 59.3 -2.389 4.6 -2.732 9.3 -5.4 Tourist Offices Overseas tourist offices UK tourist offices Total tourist offices 44.814 12.891 38.624 10.903 27.5 3.600 56.291 15.875 41.175 55.007 2008 91.859 40.4 -2.4 -14.038 52.271 34.401 57.031 168.6 -9.026 36.754 -7.042 10.098 187.763 6.275 67.923 100.2: Main Media Advertising Expenditure by the Main Sectors in the Travel and Tourism Industry (£000).308 53.940 11.8 -8.208 28.7 Tour Operators Overseas tour operators UK tour operators Total tour operators 55.3 -4.212 4.445 51.864 27.

2 -8.441 50..370 7.4 † — international & domestic Source: Nielsen Media Research © Key Note Ltd 2010 71 .214 28.7 -27.table continued % change 2009-2010 2006 2007 2008 2009 2010 Accommodation UK hotels UK holiday resorts Total accommodation 21.072 16.505 81.684 53.4 -10.861 37.108 35.1 -25.838 32.817 33.438 382.474 18.630 10.217 Total % change year-on-year 403..595 45.151 20.465 18.566 21.092 46.353 9.2: Main Media Advertising Expenditure by the Main Sectors in the Travel and Tourism Industry (£000).753 25.8 -12.0 -10.7 -10.892 7.140 433.611 16.612 36.393 427.641 10.7 Travel agents Online travel agents Others Total travel agents 15.468 23.434 23.478 3.215 90.251 14.375 33.083 56.Travel & Tourism Market Competitive Structure Table 4.9 88.4 7. Years Ending March 2006-2010 .349 108.039 464.9 -4.253 27.447 80.378 10.317 15.

Travel & Tourism Market The Domestic Market 5. guest house.7% and holiday expenditure up by 10. camping. both room occupancy and bedspace occupancy rates fell in 2009. farmhouse. which showed strong growth compared to 2008 with the number of trips made for holiday purposes up by 16. bus/coach or other • type of accommodation — hotel. the number of trips made and bed nights all rose in comparison to 2008 figures. © Key Note Ltd 2010 72 . The room occupancy average fell from 60% in 2008 to 58% in 2009. expenditure on VFR. etc. KEY TRENDS The UK domestic travel and tourism market. The outcome was that consumer expenditure on domestic travel and tourism. while the bedspace occupancy level declined from 44% to 43% over the same period. Wales or Northern Ireland.7%. benefited from the so-called ‘staycation’ trend in 2009 as domestic consumers turned away in large numbers from overseas holidays and travel and holidayed within the UK instead. By comparison. VisitWales and the Northern Ireland Tourist Board and covers trips away from home lasting one night or more (but fewer than 60 days) taken by UK residents for the purpose of holidays. The Domestic Market DEFINITION The United Kingdom Tourism Survey (UKTS) is the main national consumer survey used to measure the volume and value of tourism trips taken by residents of the UK. which has contracted more or less yearly since 2005. rented accommodation. plane. The domestic travel and tourism market can be divided in four main ways: • purpose of trip — holiday. visits to friends and relatives (VFR). Tourism is measured in terms of volume (trips taken. Despite the increase in the domestic travel and tourism market. business trips and other purposes was lower than in 2008. The main factor driving the UK domestic travel and tourism market in 2009 was the holiday sector. friend’s/relative’s home. VisitScotland. VFR or miscellaneous • destination — England. and by region within England • mode of transport — car. business. nights away) and value (expenditure on trips). caravan. business and conferences or any other purpose. train. It is jointly sponsored by VisitBritain. Scotland.

The largest increase was in the number of trips made.700 - 126.4 -1.1: The UK Domestic Travel and Tourism Market by Value and Volume (£m.4% advance in the numbers of bed nights to 398.4 378. Much of the impetus in the early part of the year. MARKET SIZE For the first time since 2005. a 1.5 2007 21.238 1. Early indications of market trends in 2010 suggest that the gains made in the domestic travel and tourism sector in 2009 will be maintained in 2010. which was up by 7.8 5.7 Trips (000) % change year-on-year 138.78 in 2008 to £54.9 123. originated from recoveries in the business trips and the trips to friends and relatives markets.2 117.7 126.6 2009 21.300 -8.1 -9. Trips for holiday purposes in the first quarter of 2010 were slightly down compared to the corresponding period in 2009. the UK domestic travel and tourism market returned to growth in 2009 as the recession and the general economic climate led to an upswing in demand for holidays in the UK. the highest total since 2006.3 2008 21. Table 5.881 3. Source: United Kingdom Tourism Survey/Key Note © Key Note Ltd 2010 73 .500 -2. 000 and million).965 -7.7% rise in domestic travel and tourism expenditure to £21.88bn.Travel & Tourism Market The Domestic Market Average expenditure per trip fell by 3.6% decline. There was also a 5. Average expenditure per bed night fell from £55. however.667 2006 20. which was the highest total in current terms since 2005. 2005-2009 2005 Expenditure (£m) % change year-on-year 22.4 -4.1 Bed nights (million) % change year-on-year 442.1% to 126 million.2 days.2 - 400.4 Note: figures relate to trips of at least 1 night but fewer than 60 days.8 million and a 3.2% to £173.64 between 2008 and 2009 while the average length of stay remained unchanged at 3.1 398.010 7.87 in 2009.107 -0.710 -4.5 394.

© Key Note Ltd 2010 74 .3% and 12.000 132. with expenditure on VFR.Travel & Tourism Market The Domestic Market Figure 5.500 120. with expenditure on this sector of the market rising by 10.500 125.1%. Source: United Kingdom Tourism Survey/Key Note By Purpose of Trip Trips for holidays are the largest sector of the UK domestic travel and tourism market and. the other sectors of the domestic market were less dynamic. on business trips and on trips for miscellaneous purposes down by 5.500 135.000 117.500 130.61bn.000 127.6% of the UK domestic travel and tourism market by value in 2009 up from 50. were also the most buoyant. in 2009.7% in 2005.9%.000 137. Trips for holiday purposes accounted for 57. 3. 2005-2009 140. respectively.500 2005 2006 2007 2008 2009 Note: figures relate to trips of at least 1 night but fewer than 60 days. By contrast.000 122.7% to £12.1: The UK Domestic Travel and Tourism Market by Number of Trips (000).

0 22.612 4.4 million.835 4.0 22. Almost two-fifths of these trips involved holidays of 4 nights or more.451 487 21.251 568 †22. According to VisitEngland.2 2. and a further 24% were made to the countryside.2 2.465 4.336 424 21.6 23. raised the share of the trips total accounted for by holidays from 44.7% increase to 60.7 23.7 million in the numbers of trips made for holiday purposes in 2009.6 20. This.906 4.8 †100. There was a slight increase in the number of trips for VFRs in 2009. which was up 0.0 23.0 22.3 100.388 4.750 4.0 52. there was a 16.3 †100.643 597 20.2% in 2009.0 57.667 54.0 54.Travel & Tourism Market The Domestic Market Table 5.2% in 2008 to 48.238 2008 11.107 2009 12.6 19.1 2.509 4.9 †100.881 11. Source: United Kingdom Tourism Survey/Key Note In volume terms.8 21.0 VFR — visiting friends and relatives † — does not sum due to rounding Note: figures relate to trips of at least 1 night but fewer than 60 days.8 1.2: The UK Domestic Travel and Tourism Market by Purpose of Trip by Value (£m and %).483 487 †21. © Key Note Ltd 2010 75 .355 5.0 2006 10.492 5.5 100. in turn. but the numbers of trips made for business and miscellaneous purposes was down. 2005-2009 2005 Expenditure (£m) Holiday VFR Business Miscellaneous Total % of Total Holiday VFR Business Miscellaneous Total 50. 34% of these trips were made to the seaside.7% to 44.819 4.5 21.0 2.965 2007 11.

1 18.9 126.2 123.8 18.3 53.5 4.8% overall.7 2006 2007 2008 2009 60.2 43.6 19.7 22.0 44.2 4. the domestic holiday market is more seasonal than the UK domestic travel and tourism market as a whole.7 53.8 3.7 44.Travel & Tourism Market The Domestic Market Table 5.8 42.0 VFR — visiting friends and relatives † — does not sum due to rounding Note: figures relate to trips of at least 1 night but fewer than 60 days.7% overall. compared to 27.3 49.5 44.2 138. © Key Note Ltd 2010 76 .0 2.7 47. Source: United Kingdom Tourism Survey/Key Note By Season Seasonality is a feature of the UK domestic travel and tourism market with the third quarter of the year (July to September) being the most popular. 2005-2009 2005 Trips (million) Holiday VFR Business Miscellaneous Total % of Total Holiday 42. and 30% taken in the second quarter.2 3.5 †117. compared to 32.2 126.2 59.3: The UK Domestic Travel and Tourism Market by Purpose of Trip by Volume (million and %).5 52.4 18. According to VisitEngland. with 39% of holiday trips taken in the third quarter of the year.3 52.2 48.

0 Trips Million 21.678 4.7 27.1 20.2 28.378 6.8 32.5% of trips.Travel & Tourism Market The Domestic Market Table 5. the South East of England is the main base for UK domestic tourists. residents of England accounted for 83.8 100.7% of trips in 2009.0 111.471 21.0 Bed Nights Million 55.0 78.4 % of Total 13.4 154. Number of Trips and Number of Bed Nights by Season of Stay (£m.1 41.0 398.0 † — does not sum due to rounding at source Note: figures relate to trips of at least 1 night but fewer than 60 days.4 †100. expenditure and bed nights in 2009.4: The UK Domestic Travel and Tourism Market — Expenditure. Source: United Kingdom Tourism Survey/Key Note By Destination Assessed in terms of region of residence. Overall.6 19. accounting for between 15% and 15. 2009 Expenditure £m Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total 3.6 100. million and %).4 29.0 35. © Key Note Ltd 2010 77 .7% of domestic travel and tourism expenditure and 85.1 % of Total 16.880 % of Total 15.8 126.8 28.353 7.0 38.7 22.0 35.

7 83.5 12.0 Trips Million % of Total Bed Nights Million 61.2 10.6 30.1 1.0 85.0 % of Total † — does not sum due to rounding Note: figures relate to trips of at least 1 night but fewer than 60 days Source: United Kingdom Tourism Survey/Key Note By Mode of Transport Transportation by owned car remains the most popular method of transport used for UK domestic tourism by far.272 2.691 1.3 8.7 7.3 10.2 41.298 2. in the percentage of people travelling by train.0 % of Total 15.259 2.2 108.8 41.2 4.5 10. million and %).1 85.2 15.9 100.1 9.3 42.9 16.0 30.1 2.8 8.7 8.880 15.9 48.Travel & Tourism Market The Domestic Market Table 5.5 125.7 10.1 10.3 13.1 4.3 4. © Key Note Ltd 2010 78 .598 1.0 100.4 13.7 7.1 342. with the percentage of trips made via this mode increasing from 73% in 2008 to 75% in 2009.9 15.2 2.183 1.043 886 650 21.026 18.9 4.5 4. from 11% in 2005 to 13% in 2008.5: The UK Domestic Travel and Tourism Market — Expenditure.8 8.7 5.0 3.0 10. 2009 Expenditure £m England South East South West North West Yorkshire and Humberside East of England East Midlands London West Midlands North East Total England Scotland Wales Northern Ireland Total 3.5 10.3 7.4 399.2 5.3 4.3 12.0 16.5 32.7 9.1 13.7 7.0 10.7 7.3 10.301 2.290 2.0 19.0 7. The only noticeable change in domestic tourism transportation modes during the review period was the increase.6 10. Number of Trips and Number of Bed Nights by Region of Residence (£m.2 7.684 1.4 7.7 10.2 6.4 10.0 †100.6 30.

For bedspace occupancy. At 60% room occupancy was highest in Scotland and lowest in Northern Ireland (49%). © Key Note Ltd 2010 79 . Source: United Kingdom Tourism Survey/Key Note By Type of Accommodation Both room occupancy and bedspace occupancy rates fell across the UK in 2009.. Table 5.. 2005-2009 2005 Room Occupancy England Scotland Wales 60 58 55 62 59 56 63 60 54 60 59 52 58 60 52 2006 2007 2008 2009 Table continues.6: The UK Domestic Travel and Tourism Market by Mode of Transport (% of trips).7: The UK Domestic Travel and Tourism Market — Serviced Accommodation Occupancy by Country (%). and the range of bedspace occupancy rates being highest in Scotland and lowest in Northern Ireland. 2005-2009 2005 Any car (own/friend’s/ firm’s/hire) Train Plane Scheduled bus/coach Organised coach trip Other 2006 2007 2008 2009 74 11 4 3 2 6 74 12 4 3 2 5 74 12 4 3 2 5 73 13 4 3 2 5 75 12 3 3 2 5 Total 100 100 100 100 100 Note: refers to the mode of transport used on the longest part of the journey. a similar pattern occurs with the average for the UK falling by 1 percentage point between 2008 and 2009 to 43%.Travel & Tourism Market The Domestic Market Table 5. figures relate to trips of at least 1 night but fewer than 60 days. The UK occupancy survey estimates that non-UK residents accounted for around 6% of bedspace occupancy in 2009.

2005-2009 .table continued 2005 Room Occupancy (cont.) Northern Ireland UK Bedspace Occupancy England Scotland Wales Northern Ireland UK 45 44 40 36 44 47 45 42 37 47 49 46 40 40 48 44 45 39 38 44 43 46 38 36 43 53 59 54 61 58 62 54 60 49 58 2006 2007 2008 2009 Note: the difference between bedroom and bedspace occupancy is explained by single occupancy of double/twin rooms or.. Bedspace occupancy rates for hotels fell to a 4-year low of 46% in 2009. respectively.Travel & Tourism Market The Domestic Market Table 5. A double room occupied by one person has 100 per cent room occupancy but only 50% bedspace occupancy. empty beds in family rooms..7: The UK Domestic Travel and Tourism Market — Serviced Accommodation Occupancy by Country (%). For guest houses and bed and breakfasts. © Key Note Ltd 2010 80 . Source: United Kingdom Occupancy Survey Occupancy by Type of Establishment UK room and bedspace occupancy levels vary depending on the type of establishments. room occupancy levels at hotels fell to 62% and to 49% and 44% for guest houses and bed-and-breakfast establishments. In 2009. in some cases. respectively. the occupancy rates remained unchanged in 2009 at 38% and 36%.

. © Key Note Ltd 2010 81 .Travel & Tourism Market The Domestic Market Table 5. which accounted for 38% of all trips taken in 2009.. Table 5. the level of popularity of the various types of accommodation remains fairly stable year-on-year with little real movement. 2005-2009 2005 Friends’/relatives’ homes Hotel/motel/guest house Rented house/flat/chalet Farmhouse/bed and breakfast Camping Towed caravan Hostel/university/school Second home/timeshare 40 31 5 5 4 4 2 1 2006 41 31 5 5 4 3 2 1 2007 40 32 5 5 4 4 1 1 2008 39 33 5 5 4 3 2 1 2009 38 33 6 5 4 4 2 1 Table continues. 2005-2009 2005 Room Occupancy Hotels Guest houses Bed and breakfasts Bedspace Occupancy Hotels Guest houses Bed and breakfasts 46 41 36 49 39 38 52 40 35 47 38 36 46 38 36 62 53 47 65 50 50 67 50 44 64 50 45 62 49 44 2006 2007 2008 2009 Source: United Kingdom Occupancy Survey The two most popular types of accommodation for domestic tourism are the homes of friends and relatives. which accounted for a further 33% of trips.9: The UK Domestic Travel and Tourism Market by Type of Accommodation (% of trips). and hotels/motels and guest houses.8: The UK Domestic Travel and Tourism Market — Serviced Accommodation Occupancy by Type of Establishment (%). Generally.

10: The UK Domestic Travel and Tourism Market by Type of Accommodation (% of expenditure).. Table 5. Source: Visit Britain United Kingdom Tourism Survey/Key Note In terms of consumer expenditure on UK domestic travel and tourism accommodation..9: The UK Domestic Travel and Tourism Market by Type of Accommodation (% of trips)..Travel & Tourism Market The Domestic Market Table 5. the main beneficiaries are hotels.. 2005-2009 2005 Hotel/motel/guest house Friends’/relatives’ homes Rented house/flat/chalet Farmhouse/bed and breakfast Towed caravan Camping Hostel/university/school Second home/timeshare Other 45 24 7 7 3 2 2 1 9 2006 46 21 8 6 3 2 2 1 11 2007 46 21 9 6 3 2 1 1 11 2008 48 21 9 6 3 2 2 1 9 2009 46 20 10 6 3 3 2 1 10 Table continues. which accounted for 46% of the total in 2009. © Key Note Ltd 2010 82 . 2005-2009 . motels and guest houses. Relatively inexpensive forms of accommodation such as camping and towing a caravan each accounted for 3% of total expenditure in 2009. Staying in the homes of friends and relatives accounted for a further 20% of expenditure in 2009. which was 1 percentage point lower than in 2008.table continued 2005 Other 8 2006 8 2007 8 2008 8 2009 9 Total 100 100 100 100 †100 † — does not sum due to rounding at source Note: figures relate to trips of at least 1 night but fewer than 60 days.

these five companies are estimated to have operated around 26. Arriva PLC. The Department for Transport (DfT) also has an important role in awarding the franchises that are required by most of the train-operating companies (TOCs). The industry subsequently consolidated and five major bus companies emerged including FirstGroup PLC. 2005-2009 . 2006 100 2007 100 2008 †100 2009 †100 100 Source: United Kingdom Tourism Survey/Key Note SUPPLY STRUCTURE The principal suppliers of services to the domestic travel and tourism market are transport operators and accommodation providers. although bodies such as the Civil Aviation Authority (CAA) oversee safety.table continued 2005 Total † — does not sum due to rounding Note: figures relate to trips of at least 1 night but fewer than 60 days.1% of the total.Travel & Tourism Market The Domestic Market Table 5. bus and coach operators. and domestic airlines. Bus and Coach Operators Local bus services in the UK were deregulated following the Transport Act of 1985.000 vehicles. Stagecoach Group PLC. Transport Operators The main providers of transport in the domestic travel and tourism market are passenger-train operators. Much of the public transport network in the UK is deregulated.. © Key Note Ltd 2010 83 .900 vehicles out of a total UK bus fleet of around 44. The Go-Ahead Group PLC and National Express Group PLC. The structure of these two sectors is analysed in this section of the Key Note Market Review.. consumer protection and the economics of public transport provision.10: The UK Domestic Travel and Tourism Market by Type of Accommodation (% of expenditure). As of July 2010. Combined they accounted for an estimated 61.

stations. The infrastructure (track. Great Western and Great Eastern) which branch out from London to the rest of the country. most of which are franchises awarded by the Government.Travel & Tourism Market The Domestic Market Table 5. Midland. These are in turn augmented by regional rail lines and commuter networks within the major cities. East Coast.100 44.1 38.300 3.0 % of Total Train Operators The rail network in Great Britain consists of five high-speed main lines (the West Coast.500 7. Train maintenance is usually carried out by specialist companies such as Bombardier and Alstom. The Channel Tunnel Rail Link is operationally separate from the rest of the network. depots and signalling) is owned and maintained by Network Rail.500 1.9 14. Passenger services are operated by TOCs.0 3. For 16 of the 19 franchised train operators in Great Britain the DfT is the awarding body.900 17.600 26. Train-Operating Companies There are 24 train companies in the UK comprising 19 franchised train operators and 5 non-franchised/open access operators.11: Leading Bus Operators in the UK by Estimated Size of Fleet (number and %).9 100.000 6.3 15. Most of the train operating companies lease the locomotives and coaches they use from rolling stock operating companies (ROSCOs).6 61. July 2010 Number of Buses in the UK Top Five Operators Firstgroup PLC Stagecoach Holdings PLC Arriva PLC The Go-Ahead Group PLC National Express Group PLC Total top five operators Other operators Total Source: Key Note 8.000 19.3 8. The three exceptions are: • Merseyrail — Merseytravel awards and manages the concession on behalf of Merseyside PTE © Key Note Ltd 2010 84 .

the airport. Heathrow Connect.. National Express relinquished its loss-making East Coast operation and at the same time. which operates three services. thus connecting several locations in west London with each other. though it was originally awarded by the DfT. These operators include: • Eurostar • Heathrow Express • First Hull Trains • Grand Central • Wrexham and Shropshire. to take over the franchise. the Government established a holding company. Welsh Assembly or Merseytravel. which connects Heathrow airport with Paddington station. is a London service jointly owned by Heathrow Express and First Great Western.Travel & Tourism Market The Domestic Market • Scotrail — the Scottish Executive awards and manages the franchise • Arriva Trains Wales — the Welsh Assembly has managed the franchise since July 2006. which operates four services. and central London. which operates two franchises and has a 49% shareholding in Virgin Rail Group. The leading operators of franchised train services in Great Britain include FirstGroup. © Key Note Ltd 2010 85 .12: Passenger Train-Operating Companies in Great Britain. Directly Operated Railways. the Scottish Executive. The service follows the same route as the Heathrow Express service but serves intermediate stations en route. National Express UK rail operations include the East Anglia service and the London commuter service. which operates two franchises. Another train operation. Stagecoach Group. July 2010 Franchise End Date Owner Franchised Services Arriva Trains Wales/Trenau Arriva Cymru Cross Country Trains Merseyrail Northern Rail East Coast Mainline Arriva/Deutsche Bahn Abellio/Serco Rail Directly Operated Railways 31/12/2018 01/04/2015 19/07/2028 11/09/2013 n. The non-franchised/open access operators do not have their services specified by the DfT. c2c. In November 2009.a Table continues. and Arriva. Go-Ahead/Govia. which in turn operates the West Coast rail franchise. Table 5..

Travel & Tourism Market The Domestic Market Table 5. Ltd BAA Firstgroup PLC/Renaissance Trains Non-Franchised Services Eurostar Grand Central Heathrow Express Hull Trains Renaissance Trains/Laing Rail/ Deutsche Bahn Wrexham and Shropshire n..a — not available Source: Association of Train Operating Companies © Key Note Ltd 2010 86 . July 2010 .12: Passenger Train-Operating Companies in Great Britain..table continued Franchise End Date 31/03/2015 31/03/2016 08/11/2014 31/01/2012 19/09/2015 31/03/2014 19/09/2009 Owner FirstGroup PLC Franchised Services First Capital Connect First Great Western First Scotrail FirstGroup PLC/Keolis SA Govia Ltd First TransPennine Express London Midland London and South Eastern Railway Southern Railway DB Regio UK Ltd (Deutsche Bahn AG) MTR/DB Regio UK Ltd (Deutsche Bahn AG) National Express Group PLC Stagecoach Group PLC Virgin Rail Group Ltd The Chiltern Railway Company 31/12/2021 London Overground c2c Rail National Express East Anglia Stagecoach South Western East Midland Trains West Coast Trains 31/03/2014 31/05/2011 31/03/2011 03/02/2017 31/03/2015 31/03/2012 Owners London & Continental Railways Ltd Grand Central Railways Co.

4 † — excludes Air Europe operations Note: data exclude small airlines’ public transport operations.1 23. This fall has been caused in part by rising air travel taxes.7 million passengers who used scheduled domestic flights. The trend in domestic air travel between 2005 and 2009 has generally been one of downturn.5 20.Travel & Tourism Market The Domestic Market Domestic Air Travel The majority of domestic air travel in the UK is undertaken on scheduled flights. 2005-2009 2005 Scheduled Non-scheduled† Total % change year-on-year 23.729.5 185.860.4% reduction on 2005 figures. Table 5.7 million passengers a 15. with the 2009 total of 19.368. In 2009.543. In 2009.2 million passengers.8 21. Other leading hotel chains by number of outlets include Best Western with 270 hotels and the InterContinental Hotel Group with around 250.7 2008 20.8 179.4 -11. © Key Note Ltd 2010 87 . Source: UK Airline Statistics. an improving rail network and cuts in the number of domestic air routes served by the airlines.5 2009 19.9 million. Civil Aviation Authority (CAA) Accommodation Providers The accommodation sector of the domestic travel and tourism market is dominated by the hotel chains.072. easyJet conveyed 5.3 3. Premier Inn Hotels and Travelodge Hotels.9 297.13: Domestic Air Passengers Uplifted on Scheduled and Non-Scheduled Services in the UK (000). British Airways transported 4 million passengers and BMI carried 3.0 23.5 million passengers were booked on domestic scheduled flights compared to the 185.316.137.070. four airlines accounted for 87.0 204. with the two leading hotel groups by outlet numbers including the budget chains.6 19.921. 19. Flybe uplifted 4.2 million.9 2006 22.5 150.9% of the 19.0 -1.1 2007 20.600 who travelled on non-scheduled or charter services.064.1 -6.

Spain and Sweden. Scotland and Wales. National Express Group and Arriva. commuter coaches.14: Selected Hotel Chains by Estimated Number of Outlets. © Key Note Ltd 2010 88 . Arriva PLC Arriva PLC is one of Europe’s largest transport service organisations with operations in the UK.720 buses in Denmark and 1. Poland. North West. the Czech Republic. The Go-Ahead Group. Arriva has bus operations in ten other European countries with a combined fleet of over 8. 2010 Premier Inn Hotels Ltd Travelodge Hotels Ltd Best Western Great Britain InterContinental Hotel Group PLC Accor UK Economy Hotels Ltd Hilton International Hotels (UK) Ltd Jarvis Hotels Ltd Choice Hotels Europe De Vere Hotels & Leisure Ltd Thistle Hotels Source: Key Note 580 452 270 250 143 80 47 45 42 32 MAJOR PLAYERS Bus and Coach Operators The UK bus and coach sector is dominated by five large operators: FirstGroup. Arriva has bus operations in the North East. Denmark. airside transport and water buses. Italy. It is also one of London’s largest bus operators under contract to Transport for London (TfL).760 buses in Italy.000 buses.300 buses.Travel & Tourism Market The Domestic Market Table 5. National Express Group and FirstGroup are profiled in Chapter 4 — Competitive Structure.000 employees and provides more than 1 billion passenger journeys each year through an extensive range of public transport services which covers buses. the Midlands. Stagecoach Group and The Go-Ahead Group are included below. The company operates a fleet of more than 6. Profiles for Arriva. Portugal. trains. the Netherlands. Hungary. Slovakia. This includes around 1. In addition to the UK. the South East of England. Stagecoach Group. Yorkshire. The company has 42. Germany.

The company’s operations are focused on high-density commuter markets. the UK bus division contributed £961. Heathrow. The Go-Ahead Group PLC The Go-Ahead Group PLC is one of the UK’s leading providers of passenger transport services with operations in the bus and rail service sectors.Travel & Tourism Market The Domestic Market The UK rail operations of Arriva PLC comprise the Arriva Trains Wales/Trenau Arriva Cymru franchise. a supplier of air travel services. The bus division contributed £584. is 65% owned by Go-Ahead and 35% owned by Keolis.3% to £42. Oxford. The company is the UK’s busiest rail operator. the Go-Ahead Group PLC reported an increase of 6. a France-based operator of passenger transport services which is majority owned by the French national railway SNCF.000 people across the country and around 960 million passenger journeys are undertaken on its services each year. and the CrossCountry network. In the year ending 31st December 2009. Arriva PLC had a turnover of £3.9m. a 4. which carry.6m.04bn in 2008 and a pre-tax profit of £121.35bn and a decline in pre-tax profit of 59. Other activities include limited ground handling services at Terminal 1.1bn and a pre-tax profit before amortisation of £50m. around 1.500 buses. Go-Ahead operates a fleet of over 3. through north and south Wales and across to Birmingham and Gloucester. © Key Note Ltd 2010 89 . the Go-Ahead Group has formed a new joint venture company with Cook-Illinois Corp. Outside of the UK. Go-Ahead’s half-year report for the 6 months ending 2nd January 2010 showed a turnover of £1. which stretches from Manchester. on average.8% increase compared with 2008. which stretches from Aberdeen to Penzance.7m to group turnover in 2009. The company employs around 27. Southern and London Midland. to pursue potential opportunities for school bus contracts in North America. Through Govia. In December 2009. Arriva PLC recommended a £1. the German state-backed rail company. In April 2010.6 million passengers every day. and most of its ground handling operations outside of Heathrow to Servisair UK Ltd. Go-Ahead also provides car parking services through its Meteor operation. a Chicago-based school bus operator. which includes the ’Meet & Greet’ and ’Pink Elephant’ brands. The rail operation. This includes a strong presence in London where it provides regulated services for TfL and the operation of deregulated services in the North East. According to Arriva’s Annual Report and Accounts 2009.7% in turnover to £2. Deutsche Bahn is already involved in the operation of the Chiltern rail franchise in the UK and also London Overground.59bn cash takeover by Deutsche Bahn. Go-Ahead announced that it had sold the majority of its ground handling and cargo operations at Heathrow to Dnata. In the year ending 27th June 2009.5m to group turnover in 2009 and the UK train division contributed £702.15bn up from £3.7m down from £150m in 2008. carrying almost 30% of rail passengers. the South East and southern England. Govia. Go-Ahead operates three rail franchises — Southeastern.

700 vehicles in North America.500 bedrooms. after exceptional items. Stagecoach’s UK Bus Division connects communities in more than 100 towns and cities across the UK on networks stretching from the Highlands and Islands of Scotland to South West England. sightseeing and school bus operations. the US and Canada. Stagecoach also operates a network of intercity services under the Megabus brand.4m. Mercure. The Group has three main divisions — UK Bus. with extensive operations in the UK. Accommodation Providers — Hotels Accor UK Accor UK Ltd is part of Accor SA. The Stagecoach Group’s UK rail business includes the operation of the South Western and East Midlands rail franchises and the operation. According to the Group’s Annual Report and Accounts 2010. Accor currently has 143 hotels based in the UK. the UK rail business contributed £1. nearly 500. turnover was £2. Stagecoach’s Coach USA and Coach Canada businesses provide transport services in North America.000 buses and coaches and carries an estimated 2 million people each day.000 people.16bn and a pre-tax profit of £125. In 2009. in a joint venture with the Virgin Rail Group. and the Manchester Metrolink tram network under a 10-year contract with Greater Manchester Passenger Transport Executive.8m.000 employees. The organisation currently has over 270 individual hotels in the UK and over 15. The company’s hotel brands range from the luxury to the economy and include the Sofitel.100 hotels in 90 countries. UK Rail and North America. the company has over 4. © Key Note Ltd 2010 90 . Best Western Great Britain Best Western Great Britain is part of Best Western International. Novotel. a large French multinational corporation whose main operation is running chains of hotels and restaurants. inter-city services. a 29-kilometre (km) light rail network based in Sheffield. Outside of the UK. Stagecoach Group PLC achieved a turnover of £2. Worldwide. The company operates a fleet of around 2. All Seasons. Accor SA has more 4. commuter/transit services.Travel & Tourism Market The Domestic Market Stagecoach Group PLC Stagecoach Group PLC is a leading international public transport group. megabus. charter. train and tram services. The Group also runs: Supertram. one of the world’s largest hotel chains. and operates bus. Over 90% of the hotels in the UK are in the mid-market 3-star sector with the remainder being in the 4-star market.1bn with a pre-tax profit of £170.000 hotels in 80 countries. In the year ending 30th April 2010. of the West Coast long-distance rail franchise.com. Ibis.03bn to group turnover in 2010 and the UK bus division £875. Pullman. These businesses include the budget coach brand. Suitehotel. The Group employs around 30. Etap Hotel and Formule 1 brands. The company has a fleet of around 7.000 rooms and some 145. coach.9m. tour.

Village Hotels and Greens Health and Fitness. Holiday Inn Express. The company also offers luxury lodges and apartments at four locations. The company holds a portfolio of hotel brands which include the Waldorf Astoria. Home2 Suites by Hilton and Hilton Grand Vacations. Crowne Plaza. Hilton operates around 80 hotels in the UK. De Vere Hotels & Leisure Ltd reported a turnover of £240. In the year ending 31st December 2008. 622 hotels were managed and 17 hotels were owned or leased. In the year ending 31st December 2008. Staybridge Suites and Candlewood Suites. Hotel Indigo.3m in 2008 and a pre-tax loss of £120. Sleep Inn and Clarion brands.400 hotels across almost 100 countries. © Key Note Ltd 2010 91 .500 hotels in 81 countries. Hilton Garden Inn. In the previous 15-month period ending 31st December 2007. as a manager and on an owned and leased basis. Hilton International Hotels (UK) Ltd reported a turnover of £59. Hilton. De Vere Hotels & Leisure Ltd De Vere Hotels & Leisure Ltd has 42 locations across the UK consisting of 29 De Vere Venues and 13 De Vere Hotels and Resorts.Travel & Tourism Market The Domestic Market Choice Hotels Europe Choice Hotels Europe is the trading name of Quality Hotels Ltd. Hampton Inn & Suites. De Vere Hotels & Leisure Ltd reported a turnover of £159.9m). with more than 3. Doubletree. Hotel Du Vin.8m (includes exceptional income of £403.1m in 2007. Intercontinental Hotels Group PLC The UK-based InterContinental Hotels Group PLC is one of the world’s leading global hotel companies with seven hotel brands. InterContinental Hotels operated 695 hotels at the end of 2009 including around 250 hotels in the UK. InterContinental Hotels operates hotels in three different ways — as a franchisor.799 hotels operated under franchise agreements.6m and a pre-tax profit of £486. Holiday Inn. De Vere Hotels & Leisure Ltd is part of The Alternative Hotels Group Ltd which owns a number of leisure and hotel brands including Malmaison.6m in 2007. which include InterContinental. with 500 locations in Europe and more than 6. The company reported a pre-tax loss of £444. Choice Hotels International is one of the world’s largest lodging franchisors. Middle East and Africa. Conrad.3m and a pre-tax loss of £10. Homewood Suites by Hilton. a leading global hospitality company. In the year ending 31st December 2009. Hilton International Hotels (UK) Ltd Hilton International Hotels (UK) Ltd is part of the Hilton Hotels Corporation. Embassy Suites. a subsidiary of Choice Hotels International.000 hotels. 3. The company has over 4. Choice Europe operates more than 45 hotels under the Comfort. Across Europe.4m up from £58.9m. Quality. Inc. In the UK.

Premier Inn Hotels Ltd reported a turnover of £33. In July 2010. Towards the end of 2009. In the year ending 28th March 2009.1m in 2009.7m in 2008.and 4-star hotels across the UK including 12 hotels in London. Thistle Hotels Thistle Hotels is part of Guoman Hotel Management (UK) Ltd and operates 33 3. The chain is owned by Dubai International Capital.5m in 2008. Ten of the hotels are in the Republic of Ireland. InterContinental Hotels Group PLC reported a turnover of $1. Guoman Hotels also operate four deluxe hotels in central London — The Charing Cross.994 rooms) from restaurant and pub operator Mitchells & Butlers. The company made a pre-tax profit of £66. the company opened its first Premier Inn hotel in Bangalore.000 rooms (approximately 1. In 2007. turnover was £159. an acquisition which boosted its estate to 452 hotels and increased its room stock to 30. The Royal Horseguards and The Tower. Travelodge Hotels Ltd Travelodge was the first budget hotel brand to launch in the UK in 1985 and now operates hotels in the UK. Premier Inn also opened a hotel at Dubai International airport. Travelodge acquired the leases of 52 Innkeeper’s Lodges (1. In the year ending 31st December 2009.000 hotels) by 2020. compared to a profit of £4. Travelodge plans to operate 70. turnover was £129.5m in 2009 compared to £8. three are in Spain and the rest are in the UK.504.1m in 2008. In the year ending 26th February 2009. The company reported a pre-tax loss of £4.8m and a pre-tax loss of £28m. Travelodge Hotels Ltd recorded a turnover of £294.5m and a pre-tax profit was £409. The company’s hotels operate under the Ramada Jarvis brand following an agreement with Marriott International to rebrand the majority of the group’s properties to Ramada Jarvis. The Cumberland. Stratford and Liverpool.6m down from £130. New hotels which opened in the UK in 2010 include establishments based in Falkirk. the Republic of Ireland and Spain. which acquired the organisation from Permira in 2006. Jarvis Hotels Ltd Jarvis Hotels Ltd owns and operates over 47 Ramada Jarvis and associated hotels throughout the UK. A pre-tax loss of $64m was announced for 2009 compared with a pre-tax profit of $316m in 2008.2m. Premier Inn Hotels Ltd Premier Inn is the UK’s largest budget hotel brand with over 580 hotels and more than 40.000 rooms across the UK and the Republic of Ireland.Travel & Tourism Market The Domestic Market In the year ending 31st December 2009. India.54bn down from $1.4m up from £287m in 2008.9bn in 2008. the company’s third property in the Gulf region. © Key Note Ltd 2010 92 .

7m compared with £95.5m in 2008. Owners Exclusive and Butlins.1m in 2008. Haven.4m in 2008. Holidaybreak PLC had a turnover of £473.4m in 2008.2m and a pre-tax loss (statutory) of £20m. Holidaybreak PLC Holidaybreak PLC is an education. The Hoseasons Group Ltd is a subsidiary of the US-based Wyndham Worldwide Corporation. formally Holiday Cottages Group Ltd.9m in 2007.9m in 2008. In the year ending 31st December 2008. turnover for Bourne Leisure Group Ltd was £90. short breaks in the UK and Europe. the Hoseasons Group Ltd had a turnover of £46. Pre-tax profit was £5.Travel & Tourism Market The Domestic Market Other Accommodation Providers Bourne Leisure Group Ltd Bourne Leisure Limited is one of the UK’s leading leisure companies with brands which include Warner. and camping and boating holidays in the UK.6m compared with a pre-tax loss of £6. Skegness and Bognor Regis. The Holiday Cottages Group provides self-catering cottages. In the year ending 30th September 2009. Warner’s inclusive short breaks are available all year round at 13 hotels and resorts and the Haven and Owners Exclusive businesses operate 35 holiday parks spread across the UK.2m and a pre-tax loss of £36.6m. Butlins has camps based in Minehead.6m in 2007. © Key Note Ltd 2010 93 . France. up from £43. the company reported a turnover of £153.4m in 2009. The Hoseasons Group Ltd The Hoseasons Group Ltd. Spain. worldwide adventure holidays and mobile-home and camping holidays on sites throughout Europe.1m. leisure and activity travel group. In the year ending 31st December 2009. down from £23.4 up from £455. down from £17. along with several hotels. while pre-tax profit was £15. The interim results for Holidaybreak PLC for the 6 months ending 31st March 2010 show a turnover of £150. Italy and the Republic of Ireland. The group operates in the UK and other major European markets and its activities cover educational and activity trips for UK schoolchildren. For the corresponding period in 2009. and a pre-tax profit of £6. is an international provider of travel and holiday letting or real estate services.

393 n. with a decline of 8.4% to £9.6m in the year ending March 2007.2m in the previous year and £7.244 213 426 321 180 4.a n. FirstGroup spent £215.4%) of the total.657 Table continues.511 1.a 2.294 5..15: Main Media Advertising Expenditure by UK Bus and Coach Operators (£000). The leading bus and coach operator by main media advertising expenditure was National Express.a 511 n. Table 5.242 134 136 453 463 1. © Key Note Ltd 2010 94 .a n.049 3.568 676 848 145 792 4.Com Glenton David Urquhart Network West Midlands London Transport/TfL FirstGroup Travelsphere Stagecoach WA Shearings Others 2007 2008 2009 2010 1.735 3. which spent £268.000 and Stagecoach £196. which spent £3.671 n.a 656 n.099 2.000. Years Ending March 2006-2010 2006 National Express Group Coach Holidays.a n.886 375 198 781 356 4.726 652 372 282 282 268 215 196 196 102 3.7m in the year ending March 2010 equating to more than a third (37.a 7.Travel & Tourism Market The Domestic Market MARKETING ACTIVITY Bus and Coach Operators Main media advertising expenditure by UK bus and coach operators fell for the third successive year in the year ending March 2010.151 n.a 667 209 916 n..a 525 n. One of the main reasons for this fall was the ongoing reduction in main media advertising by London Transport/TfL. Of the other major bus operators.a 1.9m.000 on this activity in the year ending March 2010 compared to £1.

Network Rail. This decline occurred despite leading advertisers such as Virgin Trains.392 3.400 1.201 n.824 1.694 n.123 842 820 Table continues.717 n.a 1.a n.950 - 46.160 3. Great Rail Journeys and Eurostar all increasing their expenditure in the latest year.589 2.031 2008 12.275 3.8 -8.459 1.654 2.a n.4 Source: Nielsen Media Research Train Operators Main media advertising expenditure by train operators amounted to some £27.756 1.656 5.16: Main Media Advertising Expenditure by Train Operators (£000).272 926 n.a 2007 6.202 4..a — not available TfL — Transport for London † — does not sum due to rounding at source †10.888 1.193 867 1.125 1. Years Ending March 2006-2010 .a 2008 5.. a reduction of 2..607 3.a 365 350 n. Table 5. Years Ending March 2006-2010 2006 Virgin Trains Network Rail Great Rail Journeys Eurostar Cross Country Train Heathrow Express Gatwick Express East Midlands Trains East Coast 8.5 2010 †9.a 2010 5.15: Main Media Advertising Expenditure by UK Bus and Coach Operators (£000).a n.861 -9.237 n.1 2009 10.097 2. A sharp reduction on main media advertising by Heathrow Express contributed to this slide and both East Midlands Trains and South Eastern spent less in the year to March 2010 compared to the previous year.Travel & Tourism Market The Domestic Market Table 5.table continued 2006 Total % change year-on-year n.680 979 5.923 2007 †16.4% on 2009 and the first annual fall since at least 2006.a 486 375 n.007 -25.a 2009 1.404 816 1.9m in the year ending March 2010..606 2. © Key Note Ltd 2010 95 .

637 2. were the heaviest spenders on main media advertising expenditure in the latest year. Premier Inn and Travelodge. © Key Note Ltd 2010 96 .17 reduced their level of main media advertising expenditure in 2009/2010.8 12.7% to £28.940 28.251 2008 n.942 - 0..4m.a n. Together these four chains accounted for half of the hotel sector expenditure on main media advertising.a n.458 Total % change year-on-year n.table continued 2006 Treyn Holidays by Rail South Eastern South West Trains Others n. with the sharpest fall being reported by the Mercure chain.677 †24.4 † — does not sum due to rounding at source Note: includes advertising expenditure by outbound and inbound train operators. Years Ending March 2006-2010 ..5 †27. The two low-cost hotel chains.a 9.16: Main Media Advertising Expenditure by Train Operators (£000).a 94 333 8.000. followed by the Holiday Inn and Warner Leisure Hotels.Travel & Tourism Market The Domestic Market Table 5.201 2007 n.919 2009 421 823 545 10.a 164 213 10. Source: Nielsen Media Research Hotels Main media advertising expenditure by hotels in the UK has increased on a yearly basis since 2006 and in the year ending March 2010 it rose by a further 3.3 -2.a — not available †24.874 †27. which reduced its outlay by almost 80% to £234. All of the other hotels detailed in Table 5.382 2010 762 360 102 5.

995 866 747 1. © Key Note Ltd 2010 97 .7 †28. with the sharpest fall being a 52% reduction to £1.493 1.979 3. main media advertising expenditure by holiday camps and resorts dropped by more than a quarter (27.a 901 474 13. all cut back on their advertising expenditure during the year. Years Ending March 2006-2010 2006 Premier Inn Travelodge Holiday Inn Warner Leisure Hotels Hilton Hotel Ibis Mercure Novotel Macdonald Hotels Best Western Others 1. The fourth-largest advertiser.155 612 865 571 267 304 316 12.Travel & Tourism Market The Domestic Market Table 5.450 2010 5.370 - 8.a 808 167 n.119 648 159 137 10.059 856 473 12.1m.a n.570 2.a 582 157 n. increased its advertising outlay by over 70% to £508.641 27.17: Main Media Advertising Expenditure by UK Hotels (£000).630 †23.a 1.538 2.378 †25.054 2.a 12.903 n.1 9. Haven.353 6.659 1. Pontins.928 2009 6. The three leading advertisers in this sector.058 599 346 234 155 94 n.9%) to £7.486 2008 3.588 n.a — not available †21.3m by Butlins.339 2.003 2.219 2007 616 2.405 2.589 2.7 3.785 Total % change year-on-year n.323 4. Center Parcs and Butlins.7 † — does not sum due to rounding at source Source: Nielsen Media Research Holiday Camps In the year ending March 2010.714 2.000.

224 3.348 508 1.950 2009 3. those aged 35 to 44 accounted for almost a quarter of expenditure.283 795 2. trips and bed nights.732 603 1.9 -4.838 - †10. trips and bed nights tends to increase up to 35 to 44 years and decline thereafter. the share of expenditure.145 2008 2.154 Total % change year-on-year 10. in terms of percentage penetration.7% of expenditure. within these three measures.810 296 1.047 2.Travel & Tourism Market The Domestic Market Table 5. There is a clear association between social grade and domestic travel and tourism with the AB social grade accounting for between 33.303 585 1.861 -7. Years Ending March 2006-2010 2006 Haven Center Parcs Butlins Pontins Others 2.6%.3 9.654 1.147 3.511 2010 2. while social grade C2 had the lowest percentage penetration of bed nights at 16. trips and bed nights.108 -27. Typically.8% and 38. © Key Note Ltd 2010 98 .3 † — does not sum due to rounding at source Source: Nielsen Media Research BUYING BEHAVIOUR Adults aged 35 to 44 years and those in the AB social grades account for the largest shares of the UK domestic travel and tourism market. in 2009.579 2007 1. According to the UKTS. Social grades D and E make the smallest contribution to expenditure and trips. with the 45 to 54 years age group accounting for the next highest shares.18: Main Media Advertising Expenditure by Holiday Resorts (£000).612 2.375 10.477 2.850 2.909 3.197 2.444 1.1 7.242 2.

Travel & Tourism Market The Domestic Market Table 5. with the percentage penetration of females in this category being 59. By contrast. The proportion of holidays taken by adults aged 65 years and over.9 23.7 32.7 12.7 12.0 38.3 †100.5% of the total for one holiday to 42.5 16.4 17.19: The UK Domestic Travel and Tourism Market — Share of Expenditure.5 16.1 16.1%. for example.9% for males.0 100. Trips and Bed Nights by Age Group and Social Grade (%).5 17.7 15.0 33.6 †100. Age appears to affect the numbers of holidays taken in the UK.5% for three or more holidays.4 16.0 35. 2009 Expenditure (%) Age 16-24 25-34 35-44 45-54 55-64 65+ Total Social Grade AB C1 C2 DE Total † — does not sum due to rounding Note: figures relate to trips of at least 1 night but fewer than 60 days.1 20.4 24. Trips (%) 11.7 16. the percentage of females taking holidays in the British Isles in the year ending September 2009 substantially exceeded the percentage of males taking holidays across all levels of frequency.9 †100.1 16.8 32.6 15. the proportion of holidays taken by adults aged up to 54 years tends to decrease as the numbers of holidays taken rises.0 9. compared to 40.1 100.8 31.6 18. particularly as the number of holidays taken increases. The difference was most marked for adults who took three holidays or more.8 15.9 17.0 Nights (%) 10.0 Source: United Kingdom Tourism Survey/Key Note Profile of Domestic Holidays According to the Kantar Media Target Group Index (TGI) survey.6 24.8 100. © Key Note Ltd 2010 99 . increased from 20.6 15.3 13.

Travel & Tourism Market

The Domestic Market

Adults in the B and C1 social grades are the most significant for the domestic holiday market, in that they accounted for more than half (54.9%) of adults who took one holiday in the British Isles in the year ending September 2009 and two-thirds (66.6%) of all adults who took three or more holidays. Those in the A and E social grades accounted for the smallest percentages of adults taking holidays in the British Isles. Regionally, adults residing in the South East accounted for the largest proportion of those taking one or two holidays in Great Britain, while adults in the North West accounted for the largest percentage taking three holidays or more. By contrast, the smallest percentages of adults taking one or two holidays are in Wales, while the smallest percentage penetration taking three holidays or more are those in the North.

Table 5.20: Profile of One, Two and Three or More Holidays† in the British Isles in the Last 12 Months by Sex, Age, Social Grade and Region of Residence (% of adults), September 2009
Three or more 100.0 40.9 59.1 3.6 4.6 16.0 11.0 22.4 42.5 5.5 37.4 29.2 16.8 7.5 3.7

One All adults Sex Male Female Age 15-24 25-34 35-44 45-54 55-64 65+ Social Grade A B C1 C2 D E 4.2 25.2 29.7 22.4 13.3 5.2 10.2 15.3 22.1 17.7 14.2 20.5 47.1 52.9 100.0

Two 100.0 45.9 54.1 8.3 12.4 11.3 12.7 19.4 36.0 5.6 29.3 28.0 21.2 10.7 5.2

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The Domestic Market

Table 5.20: Profile of One, Two and Three or More Holidays† in the British Isles in the Last 12 Months by Sex, Age, Social Grade and Region of Residence (% of adults), September 2009
...table continued
Three or more 6.8 18.3 1.8 10.2 6.0 5.1 16.0 12.5 9.1 5.1 9.1

One Region Scotland North West North Yorkshire and Humberside East Midlands East Anglia South East Greater London South West Wales West Midlands
† — holidays are classed as being for 3 nights or more Note: totals may not sum to 100 due to rounding.

Two 6.8 13.8 5.7 8.0 12.5 4.4 20.2 7.9 4.3 3.6 13.6

8.7 11.0 3.6 8.2 9.3 4.0 19.4 9.2 11.5 3.5 11.6

Source: Target Group Index (TGI) © Kantar Media, 2010

Penetration of Domestic Hotel Stays
According to TGI, a little over a third of adults in Great Britain (37.6%) stayed in a hotel in the British Isles in the year ending September 2009. The percentage penetration of males and females who stayed at a hotel in 2009 was fairly similar at 37.3% and 37.9%, respectively. The highest penetration rate in terms of age was registered within the 45 to 54 years age group at 43.1%. Social grade A is highly influential in terms of hotel stays, with 55.8% of adults in this social group staying in a hotel compared to 16.9% of adults in social grade E. Regionally, adults in Scotland are most likely to stay in a hotel in the British Isles and adults in Greater London, Wales and the West Midlands are the least likely.

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The Domestic Market

Table 5.21: Penetration of Hotel Stays† in Great Britain in the Last 12 Months by Sex, Age, Social Grade and Region of Residence (% of adults), September 2009
All adults Sex Male Female Age 15-19 20-24 25-34 35-44 45-54 55-64 65+ Social Grade A B C1 C2 D E Region Scotland North West North Yorkshire and Humberside East Midlands East Anglia South East 40.3 39.4 37.7 38.9 39.1 38.1 38.4 55.8 53.2 40.0 32.8 22.6 16.9 25.1 27.3 36.7 41.9 43.1 42.7 35.6 37.3 37.9 37.6

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Table 5.21: Penetration of Hotel Stays† in Great Britain in the Last 12 Months by Sex, Age, Social Grade and Region of Residence (% of adults), September 2009
...table continued
Region (cont.) Greater London South West Wales West Midlands
† — whether for business, holiday or pleasure

34.9 36.5 34.9 34.9

Source: Target Group Index (TGI) © Kantar Media, 2010

Penetration of Domestic Air Travel
According to TGI, 10.4% of adults made at least one air trip in the UK for holiday or personal reasons in the year ending September 2009, while 1.6% of adults made between one and four business trips. A higher percentage of females than males made at least one air trip for holiday or personal reasons, with this trend being reversed for business trips. In terms of age, penetration rates for taking four or more air trips for holiday or personal reasons and for between one and four business trips tend to peak among adults aged 25 to 34 years and are lowest among adults aged 15 to 19 and 65 years and over. Social grade is clearly associated with the number of flights taken with, for example, 17% of adults in social grade A having taken at least one flight for holiday or personal reasons compared with 6.5% of adults in social grade E. Regionally, the highest penetration rates for taking air trips are in Scotland, with 18.8% of adults taking at least one flight for holiday or personal reasons and 3% of adults taking between one and four business trips. The lowest penetration rate for adults taking at least one flight was in Yorkshire and Humberside at 7.3% and the lowest penetration rate for taking between one to four business flights was in East Anglia at 0.9%.

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7 0.3 1.0 5.5 0.9 4.5 1.3 0.6 1.4 1.2 0.9 3.1 0.7 4.1 1.Travel & Tourism Market The Domestic Market Table 5.2 1.6 0.3 4.5 3.4 1.8 1.2 2.6 2.8 1.6 5.9 1. Social Grade and Region of Residence (% of adults).9 1.8 0.3 0.6 3.8 2.4 3.2 1.7 7.4 0.3 0.0 1.9 1.5 3.8 4.7 2. © Key Note Ltd 2010 104 .9 1.3 1.7 3.9 5.4 2.2 Business Trips (1-4) 1.3 6.7 5.4 0.1 0..8 0.0 1.6 0.9 1.8 1.2 3.2 1.22: Number of Separate Air Trips Made in the UK in the Last 12 Months by Sex.0 2.3 3.6 0.5 2.0 2.5 5.9 3.7 1.2 1.3 2.8 1..5 1.7 3.0 1.9 0.8 4.4 1. Age.2 1.4 1.1 5.8 2.5 0.0 4.8 0.7 2.1 2.2 Two 2.0 0.3 2.7 Four or Three more 1.7 0. September 2009 Holiday/Personal Reason One All adults Sex Male Female Age 15-19 20-24 25-34 35-44 45-54 44-64 65+ Social Grade A B C1 C2 D E Region Scotland North West North Yorkshire and Humberside East Midlands East Anglia South East 10.5 1.8 1.9 5.6 Table continues.7 5.4 1.9 2.1 1.5 6.5 0.7 1.5 0.3 2.7 0.4 1.4 1.7 0.0 1.0 2.3 2.6 2.5 5.5 6.5 2.2 2.4 1.8 3.

8 1.4% increase from £3.8 million. although the London Olympics is expected to provide a boost to the domestic travel and tourism market in 2012.2 Two Three Four or more Business Trips (1-4) Source: Target Group Index (TGI) © Kantar Media.22: Number of Separate Air Trips Made in the UK in the Last 12 Months by Sex.6 2.8 1.6% increase to 3. By contrast. respectively.4 million. Social Grade and Region of Residence (% of adults). © Key Note Ltd 2010 105 . In light of these early market indicators.5 1.3% to 4.4 1.4 million in the number of bed nights. a 0.3 million in trips to visit friends and relatives. 2010 FORECASTS 2010 TO 2014 Early indications of market trends in 2010 suggest that the gains made in the domestic travel and tourism sector in 2009 are being maintained. which rose by 7. and a 2.7 3.46bn in expenditure compared to the same period in 2009.5 million in the first quarter of 2010. in the first 3 months of 2010 there was a 3.5 0. 2% and 0.1 0.3 1.8%. There was also a 4.1 5. Thereafter and up to 2014.6 1.6 million in the first quarter of 2009 to 7.7 4.Travel & Tourism Market The Domestic Market Table 5.2 1. Age.5 1. trips and bed nights projected to rise by 1%.. The rise in the number of trips taken in the first 3 months of 2010 was mostly due to increases in the number of trips made for business purposes. trips taken for holiday purposes fell from 7. For example.8% increase in the number of trips made from 21 million to 21.9 3. Key Note forecasts that the UK domestic travel and tourism industry will show further modest growth in 2010 with expenditure.) Greater London South West Wales West Midlands 5.1 1.38bn to £3.7% increase from 55 million to 55.2 2.9 1. September 2009 . a downward trend in the market may return.table continued Holiday/Personal Reason One Region (cont.4 1..

200 22.23: The Forecast UK Domestic Travel and Tourism Market by Value and Volume (£m.0 2014 22. 2010-2014 23.2 Bed nights (million) % change year-on-year 402 0.7 395 -1.0 128.100 0.400 22. Source: Key Note Figure 5.0 2011 22.000 2010 2011 2012 2013 2014 Note: figures relate to trips of at least 1 night but fewer than 60 days.500 22.8 398 -1.1 2013 22.4 Trips (000) % change year-on-year 128.700 22.0 127. 000 and million).100 1.100 23.Travel & Tourism Market The Domestic Market Table 5.5 126.0 399 -2.500 -0.100 22.000 -3.530 2. 2010-2014 2010 Expenditure (£m) % change year-on-year 22.300 22.0 410 3.0 2012 23.200 -0.000 22. Source: Key Note © Key Note Ltd 2010 106 .2: The Forecast UK Domestic Travel and Tourism Market by Value (£m).500 -1.8 132.900 22.600 4.800 22.0 Note: figures relate to trips of at least 1 night but fewer than 60 days.600 22.300 -3.000 4.200 23.

Travel & Tourism Market The Outbound Market 6. number of trips and number of bed nights. including day trips. The official source of this information is National Statistics’ International Passenger Survey (IPS). which excludes day trips. pricing and promotion of many travel services. In addition. © Key Note Ltd 2010 107 . may be grouped under the heading ‘rest of world’. This definition differs from that used by the World Tourism Organization (UNWTO). which covers overseas trips by UK residents for periods of less than 1 year. Purpose of Trip Outbound tourism divides broadly between leisure trips and business trips. The Outbound Market DEFINITION The UK outbound travel and tourism market can be measured in terms of expenditure. Country of Destination Destination is defined as the main country visited. Visits to small nation states and trips involving transit through other countries are sometimes understated in the official figures. and leisure travel for other purposes. visiting friends and relatives (VFR). the destinations of cruise passengers. such as watching sport or weddings. who often visit many countries. inclusive or package holidays. The division between travel for leisure and travel for business is fundamental to the branding. Leisure trips subdivide into independent holidays. shopping. The regional categorisations used in this chapter are as follows: North America — Canada (including Greenland and St Pierre et Miguelon) and the US (including Puerto Rico and the US Virgin Islands). The outbound travel and tourism market can be divided in a number of ways for marketing purposes. The four most important are: • purpose of trip • country of destination • mode of transport • type of arrangement. or the country in which the visitor stayed the longest during his or her trip.

Norway. Nicaragua. the People’s Republic of China (PRC). the Balearic Islands and Andorra) and Sweden. Uruguay and Venezuela. Hong Kong. Non-EU Europe — the Faroe Islands. Iran. Costa Rica. inclusive or package holidays. Israel. Belize. Cuba. Portugal (including the Azores and Madeira). the Republic of Ireland. Internet booking services and low-cost air travel have increased the opportunities for independent travel since 2005. the Dominican Republic. bus. Lebanon. • Middle East — Bahrain. Barbados. Colombia. El Salvador.Travel & Tourism Market The Outbound Market EU Europe — Austria. Estonia. Jamaica. Bulgaria. Syria. Lithuania. St Kitts-Nevis-Anguilla. Turkey and states of the former Yugoslavia. Honduras. • Asia/Pacific — Australia. Gibraltar. for example.e. the Bahamas. Cyprus. Sri Lanka and Thailand. New Zealand. Peru. Slovakia. Italy (including San Marino and Vatican City). Panama (including the Canal Zone). Haiti. Romania. Spain (including the Canary Islands. India. Almost all air and Eurostar passengers are travellers on foot. Trinidad and Tobago. the Netherlands. the Czech Republic. Guatemala. Brazil. Oman. United Arab Emirates and Yemen. Paraguay. car. France (including Monaco). Iraq. etc. • North Africa — Algeria. Type of Arrangement The main division by type of arrangement is between holidays that are organised independently and those that are organised by tour operators. sea (ferry). Montserrat. Dominica. Greece. Belgium. Guyana. Bolivia. Ecuador. Chile. Denmark. Rest of world — this covers the following: • Latin America — Argentina. Eurotunnel Shuttle or Eurostar. Iceland. air. Kuwait. the British Virgin Islands. Luxembourg. Hungary. Qatar. i. Pakistan. Finland. Germany. e. Mexico. St Lucia. Morocco. Slovenia. the Cayman Islands. Malta. © Key Note Ltd 2010 108 . Libya. Sudan and Tunisia. Bermuda. Jordan. St Vincent and the Grenadines. Grenada. Spanish North Africa. Mode of Transport Mode of transport is defined as the main method of transport used for the trip. • Commonwealth Caribbean — Antigua. Switzerland (including Liechtenstein). Egypt. motorcycle. Japan. Ferry and Shuttle passengers are often subdivided by type of vehicle. Albania and the former USSR (Union of Soviet Socialist Republics). and the Turks and Caicos Islands.g. Latvia. Saudi Arabia. Poland.

which declined by 19% in 2009. In 2009. It was the first annual decline in outbound visitor expenditure in the last decade and the lowest level of outbound expenditure since 2004. together accounting for more than a third (36.7%) of outbound trips.4%) of all outbound trips made in 2009. Despite the recession. In constant expenditure terms (1995 prices).2%. All sectors of the outbound travel and tourism market were affected by the economic instability in 2009 including holidays. which accounted for almost two-thirds (65. Most affected within the holiday sector were inclusive trips. MARKET SIZE The UK outbound travel and tourism market encountered its most difficult year for many years in 2009. All sectors of the outbound market remain vulnerable to the continuing adverse market conditions. Thomas Cook Group PLC. The eruption of the volcano in Iceland in April 2010 caused the outbound travel and tourism industry to incur considerable costs. and the number of bed nights stayed was at its lowest since 2002. has indicated that the volcanic ash cloud cost the company a total of around £70m. Outbound visitor expenditure fell by 14% in 2009 to £31. © Key Note Ltd 2010 109 . outbound visitor expenditure in 2009 was 20. Expenditure by outbound travellers and tourists fell to its lowest level since 2004. the number of passengers taking cruises from the UK increased in 2009.6% of the cruise passenger total in 2009.9% lower than in 2008 and 16. although the rate of annual expansion was at its lowest since 2005. Spain and France remain the two main destinations for UK outbound travellers and tourists.Travel & Tourism Market The Outbound Market KEY TRENDS The UK outbound travel and tourism market was significantly affected by the economic downturn in 2009. Outbound travel and tourist trends in the first half of 2010 suggest that further declines in trip numbers and expenditure for 2010 as a whole are likely.000 or 38. the numbers of trips made and the numbers of bed nights stayed. for example. the number of outbound trips made fell to its lowest level since 2001. The number of independently arranged holiday trips declined by a smaller 13.9% down on the 2000 equivalent. The Mediterranean remains the most popular destination for both UK port cruises and fly cruises accounting for 592.69bn. as the recession and its effects led to sharp falls in outbound tourism expenditure. the number of outbound trips made to each of the 20 most popular destinations by UK travellers all fell compared to 2008 levels.

3 4.1: The UK Outbound Travel and Tourism Market by Value and Volume (£m. The 2009 total was the lowest since 2002 when 595.411 7.1 Bed nights (million) % change year-on-year † — excluding fares 669. In the second.838 5.80 in 2008 and the average length of stay rose from 10. there was also a 12.72.5 million in the number of bed nights spent.0 614.441 - 69.6% drop to 614.6 -1.3% in 2009 to £540. National Statistics © Crown copyright material is reproduced with the permission of the Controller of HMSO (and the Queen’s Printer for Scotland) © Key Note Ltd 2010 110 .7 69.5 nights.7 2008 36.1% to 58. from £533.7 703.6 Note: figures relate to trips of less than 1 year. Average expenditure per trip did increase by 1. 12% and 15% compared to the corresponding quarters in 2008.2 2009 31. outbound trip numbers were down by 13.694 -14.0 2007 35. In line with the falls in outbound visitor expenditure and trips.0 - 701.154 2006 34. 000 and million).38 in 2008 to £51. falls in outbound trip numbers were witnessed throughout 2009 with the total in the first quarter of 2009 21.1 69. the lowest total since 2001 when 58.536 4.4% lower than in the first quarter of 2008 (on a non-seasonally adjusted basis).3 2.6 million.3 million trips were made. Source: International Passenger Survey.8 689.2 nights to 10.58 in 2009. including day trips.013 1.0 Trips (000) % change year-on-year 66.2 million bed nights were recorded.Travel & Tourism Market The Outbound Market The number of outbound trips made in 2009 contracted by 15.450 -0. 2005-2009 2005 Expenditure (£m)† % change-year-on-year 32.5 -12.614 -15. Table 6. 2009 was also the third year in succession in which the number of outbound trips had fallen. Average expenditure per bed night dipped from £52.011 -0.6 58.9%. third and fourth quarters of 2009. According to National Statistics IPS data.

500 34. In 2009.7% of outbound trips made were for holiday purposes.000 35.500 31. In 2009. National Statistics © Crown copyright material is reproduced with the permission of the Controller of HMSO (and the Queen’s Printer for Scotland) By Purpose of Trip The holiday market is by far the largest segment of the outbound travel and tourism industry. the number of VFR trips fell by 6. which include VFR.500 37.500 33.9 million and the number of trips made for other purposes contracted by 24.1: The UK Outbound Travel and Tourism Market by Value† (£m).500 36.000 36.2% to 1. Source: International Passenger Survey. Within this broad category. fell for the third successive year in 2009 with the total for that year down by 14.000 33.2% to 24 million in the number of independently organised trips. 65.000 32.8% to 6.000 31. which has fallen steadily since 2005.5% to 38.500 35.1 million.1% in the total number of trips made.000 2005 2006 2007 2008 2009 † — excluding fares Note: figures relate to trips of less than 1 year. The numbers of trips made for other purposes. the number of trips made for business purposes fell by 22. 2005-2009 37. The above-average decline in the total holiday market was due to the continuing contraction of the inclusive holiday market.3% to 20.6 million. trips for business purposes and trips made for miscellaneous other reasons. © Key Note Ltd 2010 111 .6 million.000 34. the number of inclusive holiday trips made decreased by a further 19% compared to a fall of 13.500 32. including day trips. Outbound trips made for holiday purposes fell by 15.5 million in 2009 compared to the overall decline of 15. a percentage which has remained fairly stable since 2005.Travel & Tourism Market The Outbound Market Figure 6.5% to 11.

The largest proportion of trips to all four main world regions is made for holiday purposes although there is some variation around this measure.9% were independent holidays.763 18.0 65.0 -15.450 69.249 24.536 69.492 -13.951 45.617 17.614 -15. which shows the number of trips made to the main regional destinations. © Key Note Ltd 2010 112 .266 24.175 2006 2007 2008 2009 26.336 18. 2005-2009 % change 2008-2009 2005 Holidays Independent Inclusive Total holidays 25.3.1 65.507 38.2 -19.674 45. subdivided by purpose of trip.7 Source: International Passenger Survey.Travel & Tourism Market The Outbound Market Table 6.1 66. National Statistics © Crown copyright material is reproduced with the permission of the Controller of HMSO (and the Queen’s Printer for Scotland) A more detailed breakdown of the UK outbound travel and tourism market is displayed in Table 6.441 69. For example. whereas just 22.287 26.993 44.480 20.4 66.437 27. 44.531 23.3 Total Holidays as a % of all outbound trips 66.182 18.2: The UK Outbound Travel and Tourism Market by Purpose of Trip by Volume (000 and %).001 58.013 23.122 -14.5 Other purposes 22.5 65.985 14.8% of holiday trips to EU Europe were inclusive tours.914 45.

239 2.840 560 915 6.654 11.017 †58.8 31.621 582 2.0 †100.557 19.9 19.5 20.9 1.985 Inc VFR Business Other Total 723 9.1 18.102 3.0 16.396 3.1 2.0 Table continues.592 572 4.1 33.4 20.3: The UK Outbound Travel and Tourism Market by Purpose of Trip by Main Regional Destination (000 trips and %)..548 9.643 3.8 100. 2009 Holidays Ind Trips North America EU Europe Non-EU Europe Other countries Total 1.8 10.041 1.5 25.9 34.147 †23.0 100.0 100.887 65 1.7 11.Travel & Tourism Market The Outbound Market Table 6.8 2.8 22.614 % of Total by Purpose North America EU Europe Non-EU Europe Other countries Total 42.9 23.1 11.652 42.4 15.8 40.507 735 7.659 1..235 65 278 1.7 1.023 14. © Key Note Ltd 2010 113 .6 44.0 †100.4 15.8 3.4 29.

In percentage terms.3 65.0 Ind — independent Inc — inclusive VFR — visiting friends and relatives † — does not sum due to rounding Note: figures are provisional and relate to trips of less than 1 year.7 5..9%). including day trips.2 4.8% and 16.0 6.8 100.Travel & Tourism Market The Outbound Market Table 6.0 66.1 15.9 †100.6%). However..3: The UK Outbound Travel and Tourism Market by Purpose of Trip by Main Regional Destination (000 trips and %).5%).5 79. accounting in 2009 for 19.table continued Holidays Ind % of Total by Region North America EU Europe Non-EU Europe Other countries Total 6.2 9.0 16.0 22.0 8.6 20. The smallest falls involved trips to Poland (-1.0 6.3 8.4 5.4 100.0 4.3 100. © Key Note Ltd 2010 114 . Canada (-25.5%) and the Caribbean (-5. the largest falls in outbound trip numbers in 2009 were recorded for Portugal (-28.9 †100.1 13.7%) and Switzerland (-24.7% respectively of all outbound trips made. totals may not sum due to rounding.3 6. 2009 . The numbers of trips made to Spain and France were both at their lowest levels in 2009 compared to the rest of the review period. Source: International Passenger Survey.3 70.6 7. the number of outbound trips made to Spain and France were both lower in 2009 compared to trips made in 2008.0 Inc VFR Business Other Total 5.2 72.0 †100.0 75. National Statistics © Crown copyright material is reproduced with the permission of the Controller of HMSO (and the Queen’s Printer for Scotland)/Key Note By Destination Spain and France remain by far the two main destinations for UK outbound travellers and tourists.

582 9. 2005-2009 % change year-onyear -16.6 -21.436 2.026 1.986 3. including day trips.187 2.552 1.894 66.5 -22.764 3.614 Note: figures relate to trips of less than 1 year. Source: International Passenger Survey.532 1.610 2.1 -9.4: The UK Outbound Travel and Tourism Market by Country of Destination by Volume (000 trips).3 -12.840 1.553 69.194 972 696 664 532 654 11.837 11.698 2.870 1.4 -25.084 69.493 2.536 2007 13.3 -5.4 -22.4 -11.549 3.578 1.854 4.7 -15.881 1.923 3.4 -28.003 3.855 3.367 637 1.6 -24.5 -16.686 2.431 1.096 2.064 58.408 1.236 1.008 2.569 2.622 1.937 1.787 1.733 1.5 -20.1 -24.177 1.380 2.682 3.809 1.3 -8.450 2008 13.011 2009 11.120 958 702 716 593 775 11.372 2.001 796 769 628 649 786 9.205 3.554 1.275 1.1 -23.428 10.531 1.936 1.855 1.819 10.410 1.392 981 894 870 847 709 465 434 433 10.921 4.241 3.Travel & Tourism Market The Outbound Market Table 6.040 1. National Statistics © Crown copyright material is reproduced with the permission of the Controller of HMSO (and the Queen’s Printer for Scotland) © Key Note Ltd 2010 115 .1 2005 Spain France Republic of Ireland US Italy Germany Greece Netherlands Portugal Turkey Poland Belgium Cyprus Caribbean Switzerland India Austria Canada Australia Czech Republic Others Total 13.511 2.279 947 1.174 1.2 -1.374 2.9 -11.051 69.045 1.2 -10.201 4.158 956 800 626 511 572 11.239 2.441 2006 14.311 1.869 11.094 4.815 1.703 2.9 -15.3 -10.127 1.435 2.221 4.

3 12.450 -0. including day trips.2 79. It is possible that some of the outbound trips made by sea and tunnel are to France or other nearby countries such as Belgium.6 58.460 5.441 - 69.121 0.5 2009 46.6 Notes: 2009 figures are provisional and may not sum due to rounding.7 69.076 2.8 66.815 - 13.8% fall to 12 million in the number of outbound trips made by sea and tunnel.2 11.1 80.1 81.7% to 46. 2005-2009 2005 Air % change year-on-year Sea and tunnel % change year-on-year Total % change year-on-year % travelling by air 53. would almost invariably involve air travel and would have contributed to the greater level of decline in the outbound air travel market. such as Spain. as the difficulty of reaching some locations by means other than via air puts this particular mode of travel in a monopoly situation for many destinations.7 12.Travel & Tourism Market The Outbound Market By Mode of Transport The majority of UK outbound travellers and tourists fly to their destinations.614 -15.3 2007 56.0 13.657 -16.5: The UK Outbound Travel and Tourism Market by Mode of Transport (000 trips). Figures relate to trips of less than 1 year.7 81.970 -1.041 -0.957 -7. In 2009. Trips to countries further away.329 -0. compared to a smaller 7.1 69.7 million.011 -0.2 81. Table 6. National Statistics © Crown copyright material is reproduced with the permission of the Controller of HMSO (and the Queen’s Printer for Scotland) © Key Note Ltd 2010 116 .626 2006 56. the number of outbound trips undertaken by air fell by 16. Source: International Passenger Survey.2 2008 56.536 4.

001 21.6 36.2 100.174 4.8% in 2009 from 63. the proportion of outbound sea and tunnel travellers who made their own arrangements jumped to 67.924 30.217 8.560 5.0 20.0 60.888 3.4 100.1 36.877 22.022 15.0 58.7% in 2008 and 57% in 2005.033 55.9 39.0 100.740 18.0 63.557 36.0 57.117 8.0 100. © Key Note Ltd 2010 117 .0 42.4 100.Travel & Tourism Market The Outbound Market By Type of Arrangement The increase in the proportion of outbound travellers and tourists who choose to travel independently rather than go with organised or inclusive tours continues.8 32.8 42.2 100.4% in 2008. while the percentage of air travellers who travelled independently edged up to 60.584 8.4 36. In 2009.014 8.3% compared to 60.0 41.007 21.280 5.449 2.0 5.443 3. the percentage of outbound travellers (all modes of transport) preferring the independent option rose to 62.6 44.044 14.9 100. The number of outbound air travellers who travelled on inclusive tours fell yearly between 2005 and 2009.4% reduction on 2005 figures.0 100. 2005-2009 2005 By Air Trips (000) Independent Inclusive Total % of Total Independent Inclusive Total By Sea and Tunnel Trips (000) Independent Inclusive Total % of Total Independent Inclusive Total 63.6: The UK Outbound Holiday Market by Type of Arrangement and Mode of Transport by Volume (000 trips and %). with the 2009 total of 11.559 37. Around this average figure.9%.534 11..6 100.696 36.574 3.9 million a 25.0 59.160 3.0 60.392 8.. Table 6.320 15.791 5.0 40.1 100.448 15.0 63.458 2006 2007 2008 2009 Table continues.979 36.0 67.

7 100. In 2009. accounting for 402.1 100.table continued 2005 All Modes Trips (000) Independent Inclusive Total % of Total Independent Inclusive Total 57.9% on 2008 levels.336 18..437 †27.0 100.000 passengers in 2009 or 32% of the total. a 2. 2005-2009 .2 41.7 39.3% to 1.6: The UK Outbound Holiday Market by Type of Arrangement and Mode of Transport by Volume (000 trips and %).287 26.3 100. National Statistics © Crown copyright material is reproduced with the permission of the Controller of HMSO (and the Queen’s Printer for Scotland) The Cruises Market Cruising is an increasingly popular holiday choice and is one which.0 25.0 43.951 45. including day trips. © Key Note Ltd 2010 118 . Between 2005 and 2009.000 or 42. the overall number of passengers taking UK open-sea cruises increased by 43.175 26.617 †17.3 37.914 †23.000 passengers embarked on cruises from UK ports.763 18.0 60.985 †14. The most popular destination for UK port cruises was the Mediterranean..000 took fly cruises. The Mediterranean was also the most popular location for fly cruises.492 † — does not sum due to rounding Note: trips of less than 1 year. appears to have defied the recessionary influences which have impacted on the other outbound travel and tourism markets.0 58.0 62.0 58. an increase of 2.5 million.8 100. to some extent.9 41. and a further 939.182 18. which attracted 190.1% rise on the previous year.8% of the total in 2009.993 44.674 45.Travel & Tourism Market The Outbound Market Table 6.531 38.507 2006 2007 2008 2009 45. Source: International Passenger Survey. 594.

a 14 9 401 130 54 59 88 51 26 18 n.a 14 3 557 190 92 89 71 61 34 24 16 13 3 ‡594 2006 2007 2008 2009 Table continues.a 11 5 467 168 70 77 81 70 39 35 n.a 19 15 26 10 n.a 7 14 n.a 29 3 322 195 35 35 40 25 15 29 13 n.. 2005-2009 2005 UK Port Cruises Mediterranean Baltic Norway Western Europe Atlantic Islands Other areas† Line Voyages Round Britain (Pre-2009 UK-West Europe) Caribbean Charter Total UK port cruises Fly Cruises Mediterranean Caribbean/Bahamas/Bermuda Atlantic Islands West Coast US/Mexico/Hawaii/ Panama Canal Indian Ocean/Red Sea/Persian Gulf Transatlantic – repositioning§ Far East/Australia Alaska Round-the-world and sectors± Norway (Pre 2009 in Baltic) South America Scandinavia/Baltic East Coast Other areas Charter 263 202 46 34 n.7: The UK Open-Sea Cruise Market by Type of Cruise and Destination by Volume (000 passengers).a 14 15 n. © Key Note Ltd 2010 119 ..Travel & Tourism Market The Outbound Market Table 6.a 18 2 439 241 38 34 18 42 26 31 13 n.a 12 3 388 217 36 33 40 34 22 32 14 n.a 15 10 451 154 59 65 70 57 23 23 n.a 8 19 8 4 1 402 262 41 37 33 31 29 25 25 18 11 10 8 8 1 107 51 57 67 50 28 18 n.a 12 19 n.

477 12.7: The UK Open-Sea Cruise Market by Type of Cruise and Destination by Volume (000 passengers). 2005-2009 .8 confirms that the main destination for UK cruise passengers in 2009 (including those on port cruises and those on fly cruises) was the Mediterranean.334 10. with 592.8% rise on 2008.204 12.3% reduction on 2008. up 7.Travel & Tourism Market The Outbound Market Table 6.000 cruise passengers. 2005-2009 2005 Mediterranean Northern Europe Caribbean Atlantic Islands Other areas 370 190 216 96 199 2006 452 216 210 86 240 2007 542 213 228 93 258 2008 607 247 255 108 260 2009 592 296 275 102 269 Table continues. When summer returns. the US.2 1. etc. a 19.8% on 2008.4 Source: UK Cruise Census 2009..533 2. IRN Research/Passenger & Shipping Association Table 6. while 275.070 - 1. During the winter months.000 people visited the Caribbean.) Total fly cruises Total % change year-on-year † — Greenland. © Key Note Ltd 2010 120 .8: The UK Open-Sea Cruise Market by Main Destination by Volume (000 passengers). Northern Europe was the next most popular destination in 2009 with 296.. the cruise ships travel back to Europe ± — includes complete round-the-world trips and parts (or sectors) thereof ‡669 2006 753 1.5 2007 867 1. they may offer cruises in North or South America... Table 6.table continued 2005 Fly Cruises (cont.8 2008 ‡920 2009 ‡939 1. ‡ — does not sum due to rounding at source § — transatlantic repositioning occurs when cruise ships return to North America for the winter after spending the summer cruising in Europe.000 passengers — a 2.

which include the two market leaders Thomas Cook Group PLC and TUI Travel PLC. airlines.335 2008 †1. IRN Research/Passenger & Shipping Association SUPPLY STRUCTURE The principal organisations involved in the supply side of the UK outbound travel and tourism market are the tour operators. ferry operators and the Channel Tunnel services — Eurotunnel Shuttle and Eurostar.533 † — does not sum due to rounding at source Source: UK Cruise Census 2009.070 2006 1. 2005-2009 .8: The UK Open-Sea Cruise Market by Main Destination by Volume (000 passengers).477 2009 †1. © Key Note Ltd 2010 121 .119 in 2009.. a 28. In addition to tour operators.9% reduction on 2008.table continued 2005 Total †1.204 2007 1. other leading suppliers to the outbound travel and tourism market comprise retail travel agents. This figure suggests that the number of package holidays sold per operator averaged around 16.Travel & Tourism Market The Outbound Market Table 6.. Tour Operators According to the Travel Association (ABTA) it represented 900 tour operations throughout the British Isles in 2009.

2005-2009 2005 ABTA-registered tour operators Outbound package holidays sold (000) 2006 2007 2008 2009 850 18.993 850 18.914 900 14.351 members with 5.Travel & Tourism Market The Outbound Market Table 6. Key Note estimates that the total number of travel agents in the UK (including non-members of ABTA) stood at around 6.900 in 2010.9: Number of ABTA-Registered Tour Operators in the UK and Average Number of Package Holidays Sold (number and 000). a figure unchanged on 2009. tour operators and support services right across the spectrum from small family-owned businesses to larger tour operators.344 - 22.9 Source: ABTA — the Travel Association/International Passenger Survey.676 9.507 Average number of package holidays sold per operator % change year-on-year 22. Members include travel agents.2 20.119 -28. © Key Note Ltd 2010 122 . National Statistics © Crown copyright material is reproduced with the permission of the Controller of HMSO (and the Queen’s Printer for Scotland)/Key Note Travel Agents According to ABTA it currently has 1.295 -0.9 22.951 900 18.674 790 17.700 outlets.3 16.749 -6.

6 † — Going Places travel agencies mostly rebranded as Thomas Cook with effect from February 2008 ‡ — includes travel shops and holiday superstores.9 1.8 82.500 1.a 600 ‡336 1.9 1.7 75.7 1.3 76.024 6.950 7.900 25.757 5.000 †812 †807 2007 2008 2009 2010 796 n.900 25.3 79.748 3.207 3.700 1.976 4.a 650 ‡336 n.500 1.400 6.743 3.a 600 ‡336 n.800 25.Travel & Tourism Market The Outbound Market Table 6. Year Ending July 2006-2010 2006 ABTA Travel Agents Top Four Thomas Cook Going Places Thomson First Choice Total top four Other ABTA travel agents Total ABTA travel agents Non-ABTA travel agents Total Leading travel agents as a % of total travel agents ABTA travel agents as a % of total travel agents 615 560 730 302 2.650 7.10: The UK’s Leading Travel Agents by Estimated Number of Branches (number and %). excludes in-store branches in supermarkets Source: Key Note © Key Note Ltd 2010 123 .975 27.918 5.782 3.752 5.4 76.5 1.200 6.800 7.150 24.025 548 458 650 320 1.818 6.

800 2006 2007 2008 2009 2010 Source: Key Note Airlines UK airlines had 1.000 6.100 8.800 7. a total which has remained fairly stable since 2005.010 aircraft in service in 2009. the third-largest airline by aircraft numbers. British Airways is the largest UK carrier by aircraft numbers with 233 in service in 2009. continues to increase its aircraft fleet and in 2009. reduced its fleet to a 3-year low of 71 in 2009 and Thomson Airways. by contrast.11: Number of Aircraft in Service with UK Airlines.900 6..000 7.600 7. 2005-2009 2005 British Airways PLC easyJet Airline Company Ltd Flybe Ltd† BMI Group Ltd‡ 232 98 35 59 2006 234 103 41 61 2007 234 125 88 62 2008 235 153 76 70 2009 233 169 71 70 Table continues. Flybe.900 7. easyJet..700 7.2: UK Travel Agents by Number of Branches. © Key Note Ltd 2010 124 . Table 6.300 7.100 7. an increase of 43 over 2008.200 7.Travel & Tourism Market The Outbound Market Figure 6. bringing the total up to 169. the fifth-largest airline by aircraft in service. reduced its total by 12 to 64.200 8.500 7. Year Ending July 2006-2010 8.400 7. a further 16 aircraft were added.

followed by Thomson Airways with 90.9% and 37.8 million km (81.010 † — British Airways’ BA Connect regional business was acquired by Flybe in 2006 ‡ — BMI Group data cover BMI British Midland. BMI Regional and BMI Baby combined § — Thomsonfly Ltd and First Choice Airways Ltd merged to become Thomson Airways Ltd in 2008 n.4%) of the available seats were used compared to 308. accounted for the highest numbers of seat kilometres available and seat kilometres used in 2009 at 38. The lowest seat utilisation rate among the companies featured in Table 6. respectively. British Airways. which operates mostly short-haul flights within the UK and in Europe. which also operates transatlantic flights. Virgin Atlantic Airways.table continued 2005 Thomson Airways Ltd§ Thomas Cook Airlines Ltd± Virgin Atlantic Airways Ltd Monarch Airlines Jet2.7 million kilometres (79. The highest seat utilisation rates are found among the charter airlines with Thomas Cook Airlines top after reporting 92% of available seat capacity used. a total of 297.6%.1%) of available seats used in 2008.Travel & Tourism Market The Outbound Market Table 6.2 million km reported in 2008..a 24 32 28 23 27 394 952 2006 n.12 was recorded by the low-cost scheduled carrier Flybe at 60.1%. 6. accounted for the second and third highest numbers of seat kilometres available and seat kilometres used in 2009. Civil Aviation Authority (CAA) UK airlines had available seat capacity of 366 million kilometres (km) in 2009.a 24 38 31 29 29 297 957 2008 76 42 38 32 30 28 187 967 2009 64 44 38 31 31 29 230 1.a 24 37 28 26 32 377 963 2007 n..4% of each total. In 2009.2% less than the capacity of 390. © Key Note Ltd 2010 125 . 2005-2009 .11: Number of Aircraft in Service with UK Airlines.a — not available ± — Thomas Cook Airlines UK Ltd and MyTravel Airways merged to become Thomas Cook Airlines Ltd in March 2008 Source: UK Airline Statistics. which operate transatlantic flights. and easyJet.Com Ltd Eastern Airways Others Total n.

598 5.2 1.8 100.6 80.327 45.8 13.0 83.756 35.8 1.548 29.9 90.304 3.2 93.742 6.9 14.950 15.8 1.217 54.Travel & Tourism Market The Outbound Market Table 6.1 92.0 5.0 111.341 49.7 8.947 5.299 18.5 100.449 4.8 81.2 3.5 1.8 81.510 9.282 32. © Key Note Ltd 2010 126 .6 60.222 39.0 78.2 10.8 9.795 37.607 366.8 1.6 69.564 5.4 15.3 1. Civil Aviation Authority (CAA) MAJOR PLAYERS This section profiles the leading companies in the outbound travel and tourism market.922 5. Thomson Airways Ltd and TUI Travel PLC.3 83.2 13.359 3.Com Ltd Flybe Ltd Flyglobespan† Others Total 142.2 78.4 † — Flyglobespan went into administration in December 2009 Source: UK Airline Statistics.258 297.1 1.1 3.0 5.12: UK Airlines by Available Seat Capacity and Seat Capacity Used (000 seat kilometres and %).3 1.000 38.6 9.555 13. 2009 % of Available Seat Capacity Used Seat Kilometres Available (000) Seat Kilometres Used (000) % of Total % of Total British Airways PLC easyJet Airline Company Ltd Virgin Atlantic Airways Ltd Thomson Airways Ltd Thomas Cook Airlines Ltd Monarch Airlines Ltd BMI Group Ltd Jet2.038 26. Two of these leading companies. have already been profiled in Chapter 4 — Competitive Structure.

a fall of 5% compared to the corresponding period in 2009. In April 2010. turnover at Thomas Cook Group PLC was £9.31bn.000 employees. Neilson. Sunset.1m in 2009 compared to a pre-tax profit of £48.thomascook. Club 18-30. Panorama. Thomas Cook PLC reported a turnover of £3. © Key Note Ltd 2010 127 . travel and tourism websites (www. The company has a fleet of 95 aircraft. the Thomas Cook Group announced that it had agreed to acquire Öger Tours GmbH. through its subsidiaries. flies from various regional airports to destinations worldwide. The company’s airline. the shares held by Arcandor and its subsidiaries were placed on the stock market and. a 14.Travel & Tourism Market The Outbound Market Tour Operators Thomas Cook Group PLC Thomas Cook Group PLC is a travel company created in June 2007 by the merger of Thomas Cook AG and MyTravel Group PLC. following these developments. Sunworld Holidays. North America and Airlines Germany. airport parking and airport hotels. Thomas Cook Group PLC. a leading UK online provider of travel-related products including travel insurance. the owner of Essential Travel. Thomas Cook Signature. Style Holidays.400 owned and franchised travel stores. flythomascook. the Thomas Cook Group announced that it had acquired Think W3 Ltd. A pre-tax loss of £252.3% increase on 2008. Latitude. and 48% were owned by the shareholders of MyTravel. The Group operates in 21 countries including India and Egypt. Thomas Cook Airlines. Cresta. is principally engaged in the provision of leisure travel services. In the 6 months ending 31st March 2010. It has five geographic operating divisions — UK and the Republic of Ireland. 52% of the shares in the new company were held by the German mail order and department store corporation. It operates a fleet of 45 aircraft. and a network of approximately 3.com) and some of the leading travel brands including Airtours.com and www.27bn. In July 2010. In the year ending 30th September 2009.2m was announced for the 6 months ending 30th March 2010. 100% of the Group’s share capital is now traded freely on the London Stock Exchange. At the time of the flotation in 2007. Flexibletrips. Thomas Cook Sport and Tradewinds. Manos. has a network of around 800 high street stores (Thomas Cook and Going Places). In the second half of 2009.mytravel. Thomas Cook UK and Ireland is the second-largest leisure travel group in the UK with around 19. Thomas Cook. Cruise Thomas Cook. Arcandor (former owners of Thomas Cook AG). Bridge. the group became the second-largest travel company in Europe and the UK (behind TUI Travel).com. Direct Holidays. Northern Europe. The company reported a profit before tax of £56. Continental Europe. Following the merger. compared to a pre-tax loss of £309m in 2009.4m in 2008. a leading German tour operator specialising in package holidays to Turkey.

which is part of the Monarch Travel Group. the Caribbean. a 13. Monarch Airlines Ltd Monarch Airlines is a charter and scheduled airline based in Luton. Liverpool.5m in 2009. Manchester and Newcastle. of which 3. North African and West Asian airports. package tour operator Cosmos Holidays. plus further bases at airports such as Belfast. easyJet Airline Company Ltd announced a turnover of £1. Milan and Lyon. India and Africa. the Canary Islands and Cyprus.69bn in the year ending 30th September 2009. the US.4% increase on the comparable period in 2009.Travel & Tourism Market The Outbound Market Scheduled and Charter Airlines The UK outbound travel and tourism market is served by scheduled and charter airlines.6m in 2009 following a pre-tax loss of £30.7m compared to a pre-tax loss of £116. which is part of TUI Travel PLC. up from £2. in 2009. Luton is Monarch’s main base as well as the location of its headquarters. was the UK’s leading carrier by passenger numbers with a total of 39. the charter sales division of Monarch Airlines Ltd. Monarch Airlines carried 6. the airline has hubs at Berlin. and the accommodation-only website somewhere2stay. easyJet Airline Company Ltd easyJet Airline Company Ltd is based at London Luton airport and.34bn in 2008. First Aviation. Glasgow. Bristol. East Midlands.7 million passengers travelling on scheduled flights. Other Monarch Travel Group subsidiaries include Monarch’s maintenance arm Monarch Aircraft Engineering. Paris. and Monarch Airlines Ltd. In the UK.17bn.4 million on non-scheduled services. Edinburgh.1 million passengers. © Key Note Ltd 2010 128 . and organises scheduled flights to Mediterranean destinations. Turnover for easyJet Airline Company Ltd increased to £2. which is part of the Thomas Cook Group PLC. and a pre-tax loss of £78. while the major charter airlines include Thomson Airways Ltd. easyJet operates around 500 domestic and international flights scheduled between European. easyJet has hubs at London Luton and London Gatwick airports. The airline’s other main operational bases are London Gatwick. Outside the UK. The company reported a pre-tax loss of £156. The company currently has a fleet of 180 aircraft (compared to 169 in service at the end of 2009) and operates in 28 countries. Monarch Airlines is a subsidiary of the Monarch Travel Group.8m in 2008. It is one of the UK’s largest charter airlines. In the 6 months ending 31st March 2010. with operations in Europe. Manchester and Birmingham.com. Thomas Cook Airlines Ltd.7 million travelled on scheduled flights and 2. Geneva. The major scheduled airlines by passenger numbers are easyJet Airline Company Ltd and British Airways PLC. Monarch currently operates a fleet of 31 aircraft and these serve over 100 destinations worldwide. London Stansted. seat-only operator Avro. In 2009. direct-sell operator Archers.

Thomas Cook Airlines Ltd Thomas Cook Airlines Ltd is a charter airline based in Manchester and serves holiday resorts worldwide from its main bases at Manchester and London Gatwick. Monarch Airlines Ltd recorded a turnover of £652.000 in 2008.7% from the corresponding period in 2009 and was 16.Travel & Tourism Market The Outbound Market In the year ending 31st October 2009. North Africa.5% and declined by 25. © Key Note Ltd 2010 129 . A pre-tax loss of £19.3m in the previous 48-week period ending 30th September 2008.1m and a pre-tax profit of £28. Asia.3 million in 2008. down from 8.6m in the year ending March 2010. advertising expenditure for travel agents increased by 16. main media advertising expenditure by overseas tour operators fell by 5. Thomas Cook Airlines Ltd is part of Thomas Cook Group PLC and was formed in March 2008 by the merger of Thomas Cook Airlines UK Ltd and MyTravel Airways. the airline carried 8. This compares to a turnover of £722. MARKETING ACTIVITY Main media advertising expenditure by companies engaged in the outbound travel and tourism market amounted to £82.2m was announced for 2009 compared with a pre-tax profit of £70. although Thomas Cook Tour Operations is the main customer of the airline.1%.8m. Thomas Cook Airlines serves holiday resorts in Europe. Thomas Cook Airlines Ltd reported a turnover of £989. The airline also operates services from nine other UK bases. In the year ending 30th September 2009. This represented a fall of 6.8% for online travel agents. Between the years ending March 2009 and 2010.2 million passengers. In contrast.3% down on the amount spent in 2007. up from £643m in 2008.1m and a pre-tax loss of £29. North America and the Caribbean. In 2009. Thomas Cook operates worldwide charter flights to and from the UK for a number of tour operators.6m. It has a fleet of around 45 aircraft and flies to some 95 destinations.

553 -6.072 16.566 21.961 18.4m.049 - 98.14.763 14.7 Source: Nielsen Media Research Tour Operators Main media advertising expenditure by overseas tour operators amounted to £48.9% increase on 2009.595 2007 60.083 2009 51. © Key Note Ltd 2010 130 .4m in the year ending March 2010.092 91.6m.3 104. First Choice. had the third-highest level of main media advertising expenditure at £3. which spent £7. a 20.5% reduction on 2009.3% increase on the previous year.389 18.13: Main Media Advertising Expenditure By Companies Engaged in the Outbound Travel and Tourism Market (£000).462 -15.817 33. Years Ending March 2006-2010 2006 Overseas tour operators Travel agents Online travel agents Total % change year-on-year 55.212 15.303 15. Of the other companies included in Table 6.6 82.638 8.5m. a 44. Virgin Holidays had the second-highest level of main media advertising in the year ending March 2010 with £5. and the TUI PLC-owned company.151 20.441 2008 52.3 88.434 23. a 10.684 2010 48.Travel & Tourism Market The Outbound Market Table 6. The leading tour operator by main media advertising in 2009/2010 was the TUI PLC-owned Thomson.861 6. the majority increased their expenditure on main media advertising in the year ending March 2010.

762 1. Thomas Cook advertising campaigns during this period included those which featured Jamie and Louise Redknapp.182 881 1.321 1.037 378 761 834 946 344 216 24.013 643 3.094 28.186 696 1.a 24.811 2.988 2.389 606 2.518 1.824 6.341 1.668 625 36.333 4.620 5.14: Main Media Advertising Expenditure by Overseas Tour Operators (£000).6m.096 1.379 60.483 3.Travel & Tourism Market The Outbound Market Table 6. owns websites such as Flightsdirect.961 1.297 1.352 3.473 612 32. which increased its outlay by a third (33.297 152 451 1.341 48.246 1.107 1.307 1.212 2010 7.389 404 2.951 4.4%) to 7. Teletext and Co-op Travel — spent more than £1m on main media advertising in 2010.927 55. Years Ending March 2006-2010 2006 Thomson Virgin Holidays First Choice Voyages Jules Verne British Airways Kuoni Direct Holidays Page & Moy James Villa Holidays Titan HiTours Journeys of Distinction Club Med Others Total† n.829 2. which spent £1.491 51.434 1. © Key Note Ltd 2010 131 .763 2008 3.961 2009 6.955 4.303 976 708 361 358 n.a — not available † — totals do not sum due to rounding at source 2007 7.com.722 1.052 6. Three other travel agents — Barrhead Travel.389 Source: Nielsen Media Research Travel Agents Main media advertising expenditure by travel agents in the year ending March 2010 was boosted by higher levels of spending by Thomas Cook.2m.520 3.390 684 939 1.914 52.856 658 536 1. Barrhead Travel.

190 †15.072 451 n. The US-owned firm.a 298 333 n. The second-highest level of expenditure in the year ending March 2010 was reported by LateRooms.a 1.434 n. a member of the TUI Travel PLC group. Ebookers and Travelsupermarket.894 18. Years Ending March 2006-2010 2006 Thomas Cook Barrhead Travel Teletext Co-op Travel Dial A Flight.a 474 279 10.370 14.com.566 2010 7.a 298 278 2009 5.a 190 332 9.365 1. © Key Note Ltd 2010 132 .155 1.695 905 457 n.a — not available † — does not sum due to rounding at source 2007 1.318 516 n.863 601 n. Expedia.15: Main Media Advertising Expenditure by Travel Agents (£000).Travel & Tourism Market The Outbound Market Table 6.a 1.a n. have cut back on their spending.3m.278 1.817 Source: Nielsen Media Research Online Travel Agents Main media advertising expenditure by online travel agents has fallen sharply since 2008 as some of the major companies in the sector. although other online agents.341 †15.602 1.a 174 6.com Hays Travel Dawson and Sanderson Ocean World Travel Going Places Bath Travel Others Total n.151 n.a 170 145 n. has more than halved its spending on advertising since 2007. including Hotels.116 245 2.com.a 926 544 n. increased their expenditure in 2009/2010.a 215 275 2008 4.155 204 11.351 n. including Lastminute and Trainline. which had the highest level of expenditure in the year ending March 2010 at £5.484 †18.080 347 297 269 232 200 130 5.

Travel & Tourism Market The Outbound Market Table 6.a 338 4. For one or two holidays.a 3. the number of holidays taken abroad tended to increase with age.4% to 45.a 269 n.722 †21.847 n.441 2008 10.714 4.a 3. that whereas the 55 years and over age groups accounted for 27.a — not available † — does not sum due to rounding at source 2007 13. © Key Note Ltd 2010 133 .714 167 3.a n.6%.16: Main Media Advertising Expenditure by Online Travel Agents (£000).224 2.520 2.a 3.845 †20.249 n.a n.2% took two holidays abroad and 72% took three or more holidays abroad.041 1.218 1.4% of adults who took one holiday abroad.873 1.a 884 n.978 112 n.a n. for example. 60% of adults in these social grades took one holiday abroad.com Ebookers Best at Cruises James Villas Travelsupermarket Others Total n.292 3.114 121 1.1% of adults who took two holidays abroad and 47% of adults who took three or more holidays abroad.440 438 438 335 283 193 84 788 †16.834 7.083 2009 6. the proportion of men taking holidays exceeded the proportion of women.a 6.a n. In general. 60.595 Source: Nielsen Media Research BUYING BEHAVIOUR According to the Kantar Media’s Target Group Index (TGI) survey for the year ending September 2009.280 2.176 1.871 n. groups B and C1 were the two most important to the outbound travel and tourism market. The TGI survey found.684 2010 5. the proportion of women who took three or more holidays abroad substantially exceeded the proportion of men who took this number of holidays abroad at 54. they accounted for 41.868 n.a n. In the year ending September 2009.729 33.a n.329 249 1.a 3. In terms of social grade.681 1.273 n.a n.357 †23.092 11. Years Ending March 2006-2010 2006 Expedia Laterooms Lastminute Trainline Just You Hotels.a n.

8 33.5 6.2 8.2 7.6 7.7 22.0 100.6 19.8 13.5 2.0 21.8 One All adults Sex Men Women Age 15-24 25-34 35-44 45-54 55-64 65+ Social Grade A B C1 C2 D E Region Scotland North West North Yorkshire and Humberside East Midlands East Anglia South East 8. September 2009 Three or more 100.0 56.8 19.17: Profile of One. Two and Three or More Holidays† Abroad in the Last 12 Months by Sex.2 12. Table 6.7 19.1 17.2 15.3 4. Social Grade and Region (% of adults)..3 29.2 23.2 9.6 11.4 16.9 4.3 19.6 37.6 13. the South East and Greater London had the greatest percentage penetration in the outbound travel and tourism market.8 Table continues.1 25.5 14.4 10.6 2.9 21.3 30.5 4..5 3.1 5.0 8.4 3.9 38.7 4.6 54.1 19.9 51.0 22.2 7.4 18.6 3.7 8.1 3.4 8.5 43.5 4.1 10.4 9.4 18. The third-largest market for outbound travellers was the North West.2 16.0 49.4 7.2 8.0 20.Travel & Tourism Market The Outbound Market Regionally.0 Two 100. Age. © Key Note Ltd 2010 134 .3 6.5 13.0 45.

17: Profile of One.1% to 10.) Greater London South West Wales West Midlands 14.. the number of visits abroad by UK residents fell by 10.Travel & Tourism Market The Outbound Market Table 6.7 7.6% to £6bn. This downward trend in the outbound travel and tourism market continued into the second quarter of 2010 as the number of visits taken abroad by UK residents fell by 13% to 56. September 2009 . the seasonally adjusted number of visits taken abroad by UK residents in April 2010 fell by 16%.. compared with the equivalent 12-month period in 2009.1 million compared with the corresponding period in 2009 and expenditure by overseas residents on visits abroad was down by 10. strikes by British Airways staff. Two and Three or More Holidays† Abroad in the Last 12 Months by Sex. as well as an increase of 6% in spending to £7. which brought the industry to a standstill for a week in April 2010. in comparison to the previous 3-month period from December 2009 to February 2010. 2010 FORECASTS 2010 TO 2014 The UK outbound travel and tourism market has been affected by a range of adverse factors in 2010 including heavy snow falls that grounded planes and stalled the traditional early booking period.table continued Three or more 20. the election and the football world cup also impacted negatively on bookings.4 † — holidays are classed as being for 3 nights or more Note: totals may not sum to 100 due to rounding at source Source: Target Group Index (TGI) © Kantar Media. overseas visits taken between March and May 2010 were down by 10% compared with the 3 months from March to May 2009 due in part to the drop in air traffic caused by the ash cloud. Age.9 5.8bn.2 12.6 9. Compared with April 2009. © Key Note Ltd 2010 135 .1 million in the 12-month period ending May 2010.7 11. According to the IPS. in the first 3 months of 2010.0 1. However. There was a slight increase (seasonally adjusted) of 2% to 13.1 11. and the volcanic eruptions in Iceland.5 million in the number of visits taken abroad by UK residents between March and May 2010.3 Two 18.0 One Region (cont. Social Grade and Region (% of adults).1 1. The continued effects of the recession.9 3.

with expenditure projected to fall to around £29bn in 2010.7 570 2.3 Source: Key Note © Key Note Ltd 2010 136 .4 625 3. 2010-2014 2010 Expenditure (£m)† % change year-on-year Trips (000) % change year-on-year Bed nights (million) % change year-on-year † — excluding fares Note: figures relate to trips of less than 1 year.7 585 2. trips and bed nights are likely to feature. Table 6.900 4.9 58.5 2013 32. although much will depend on the buoyancy of the UK economy.350 4.000 -8.1 53. Key Note forecasts that further sharp falls in outbound expenditure.18: The Forecast UK Outbound Travel and Tourism Market by Value and Volume (£m. 000 and million).7% lower at 555 million.0 555 -9.700 2.6 605 3.500 4.700 -10.4 2012 31.9 2014 34.1 55.1% to 52.700. including day trips.5% decline on 2009 figures. Thereafter and up to 2014.100 2.800 2.4 56. as well as a wide range of other factors and influences which impact consumer demand for outbound travel and tourism.5 52.400 3. and visits down by some 10.9 29.000 3. while bed nights are forecast to be 9. 2011 30. the market is expected to recover. an 8.Travel & Tourism Market The Outbound Market If these early year trends in the outbound travel and tourism market are maintained for the whole of 2010.

Latvia. Estonia. Slovakia. Spain (including the Canary Islands. Portugal (including the Azores and Madeira). Turkey and the states of the former Yugoslavia. and leisure travel for other purposes. Germany. Iceland. which excludes day trips. the Netherlands. Hungary. Non-EU Europe — the Faroe Islands. shopping. Slovenia. Poland. including day trips. Gibraltar. is measured in terms of expenditure. The four most important are: • purpose of trip • country of origin • mode of transport • type of arrangement. visiting friends and relatives (VFR). Leisure trips subdivide into: holidays. the inbound travel and tourism market can be divided in a number of ways. The regional categorisations used by the official statistics are the same as those for the outbound market. but they are reproduced here for convenience: North America — Canada (including Greenland and St Pierre et Miguelon) and the US (including Puerto Rico and the US Virgin Islands). France (including Monaco). The Inbound Market DEFINITION The inbound market. which covers trips to the UK by overseas residents for periods of less than 1 year. The official source of this information is National Statistics’ International Passenger Survey (IPS). such as watching sport or weddings.Travel & Tourism Market The Inbound Market 7. Belgium. Country of Origin Origin is defined as the visitor’s main country of residence. By Purpose of Visit Inbound tourism divides broadly between leisure trips and business trips. This definition differs from that used by the World Tourism Organization (UNWTO). the Czech Republic. Bulgaria. Cyprus. Lithuania. Finland. number of trips and number of bed nights. Like the outbound market. Malta. Denmark. © Key Note Ltd 2010 137 . Norway. Switzerland (including Liechtenstein). Greece. Spanish North Africa. Albania and the former USSR (Union of Soviet Socialist Republics). Italy (including San Marino and Vatican City). EU Europe — Austria. the Balearic Islands and Andorra) and Sweden. Luxembourg. in common with other tourism markets. the Republic of Ireland. Romania.

Barbados. By Type of Arrangement The main division by type of arrangement is between holidays that are organised independently and those that are organised by tour operators. Ferry and Shuttle passengers are often subdivided by type of vehicle.g. motorcycle. © Key Note Ltd 2010 138 . Syria. Trips for holiday purposes remained strong in 2009 with a 4. KEY TRENDS The UK inbound travel and tourism market was affected by the recession in 2009. Peru. • Asia/Pacific — Australia. By Mode of Transport Mode of transport is defined as the main method of transport used for the trip. Iraq. Costa Rica. Pakistan. car. Belize. Of the 14 leading source markets for the UK inbound market.Travel & Tourism Market The Inbound Market Rest of world — this covers the following: • Latin America — Argentina. St Vincent and the Grenadines. the British Virgin Islands. Kuwait. United Arab Emirates and Yemen.6% increase from 2008 levels being recorded. St Lucia. Morocco. Trinidad and Tobago. Dominica. • North Africa — Algeria. the Cayman Islands. and the Turks and Caicos Islands. accounting for 12. the Dominican Republic. Hong Kong.7% of all trips made in 2009. Colombia. however. Brazil. Grenada. Saudi Arabia. Jordan.e. St Kitts-Nevis-Anguilla. Cuba. Oman. however. Haiti. Honduras. Eurotunnel Shuttle or Eurostar. continue to rise. Egypt. with falls recorded in the number of trips made and bed nights stayed. Bolivia. the People’s Republic of China (PRC). Sri Lanka and Thailand. Iran. Mexico.6 million trips in 2009. Guatemala. Inbound trips for business purposes. France and Spain were the only countries from which higher numbers of visitors arrived in 2009. e. Panama (including the Canal Zone). Guyana. Almost all air and Eurostar passengers are foot passengers. the Bahamas. which was the lowest total for more than a decade. • Commonwealth Caribbean — Antigua. Uruguay and Venezuela. Sudan and Tunisia. such as air. Nicaragua. Qatar. Montserrat. inclusive or package holidays. Paraguay. Lebanon. Japan. Israel. bus. i. • Middle East — Bahrain. Ecuador. Jamaica. Chile. etc. fell by a 19% to 6. Bermuda. Expenditure by inbound visitors did. El Salvador. France continues to be the main source for inbound trips to the UK. Internet booking services and low-cost air travel have increased the opportunities for independent travel since 2005. sea (ferry). New Zealand. Libya. India.

. The number of inbound trips made by air fell by 8.7% to 229.6% increase to £16. The trend for overseas visitors to the UK to travel independently. Expenditure by inbound tourists in 2009 went against the downward trend observed for trips and bed nights after reporting a 1. Statistics issued by the IPS show that there was a decline of 6..7% in the number of visits made by sea and a 0. This increase in expenditure was aided by a favourable exchange rate with the euro and an increase in the average amount that visitors spent. up from 79.4 million in the number of bed nights stayed. compared to the 1st.960 -0.3% to 29.59bn. rather than on inclusive or package holidays. 2005-2009 2005 Expenditure (£m)† % change year-on-year Trips (000) 14.5% and 6.7%.592 1. 2nd and 3rd quarters of 2008. 5. © Key Note Ltd 2010 139 .3 2009 16.9 million in the number of inbound trips undertaken and a drop of 6.3% in 2007.323 2.5% of all inbound visits being independently arranged.970 32. The sharpest percentage falls in inbound visitor numbers occurred in the first three quarters of 2009 when the numbers arriving fell by 13. although in 2009.1% in 2009 compared to a decline of 0.713 32.3% higher than for the comparable period in 2008. 000 and million).248 2006 16.778 31.889 Table continues.2%. Table 7. MARKET SIZE 2009 was a difficult year for the UK travel and tourism inbound market.3 2008 16.002 12.3 2007 15.888 29.7% fall in the numbers made via the Channel tunnel.1: The UK Inbound Travel and Tourism Market by Value and Volume (£m. with 83. respectively.Travel & Tourism Market The Inbound Market Air transportation remains the most popular mode of transport for inbound visitors to the UK. visits by air were the most affected by the recession. continued in 2009. Arrival numbers started to recover in the fourth quarter of 2009 and the total received between October and December was 0.6 29.

National Statistics © Crown copyright material is reproduced with the permission of the Controller of HMSO (and the Queen’s Printer for Scotland)/Key Note © Key Note Ltd 2010 140 .6 2009 -6.1: The UK Inbound Travel and Tourism Market by Value and Volume (£m. 2006 9.7 251. including day trips..2 - 273.5 -8.3 - 249.table continued 2005 % change year-on-year Bed nights (million) % change year-on-year † — excluding fares Note: figures relate to trips of less than 1 year.3 229.7 Source: International Passenger Survey. 000 and million).1 2008 -2.4 9.2 2007 0.Travel & Tourism Market The Inbound Market Table 7. 2005-2009 .0 245.8 -2..4 -6.

8 million. to 3.250 15. and VFRs. including day trips.500 14.750 16.1 million. The sectors most affected by the economic downturn were visits for business purposes. attending sporting events.000 2005 2006 2007 2008 2009 † — excluding fares Note: figures relate to trips of less than 1 year.750 15. © Key Note Ltd 2010 141 .6% to 11. 2005-2009 17.000 14.3% in 2009.750 14.250 16.500 15. shopping and visits for health or religious purposes) fell by 0.7% lower than in 2008 at 8.6 million trips. Visits for miscellaneous purposes (which includes study. National Statistics © Crown copyright material is reproduced with the permission of the Controller of HMSO (and the Queen’s Printer for Scotland)/Key Note By Purpose of Trip Inbound visits for holiday purposes was the largest sector of the inbound market and the only segment to record an increase in visitor numbers in 2009. which suffered a 19% fall to 6. Source: International Passenger Survey.000 16.250 14.Travel & Tourism Market The Inbound Market Figure 7.000 15. which were 9. rising by 4.1: The UK Inbound Travel and Tourism Market by Value† (£m).4 million.500 16.

0 VFR — visiting friends and relatives † — does not sum due to rounding at source Note: figures relate to trips of less than 1 year.6 11.4 29. these accounted for almost three-quarters (73.6 -9.4 †100.0 34.0 -0.6%).7 27.5%). with 20. including day trips.019 3.7 -19. Trips for holiday purposes was the main sector of the North American market (37.3 28.168 3.2 29. National Statistics © Crown copyright material is reproduced with the permission of the Controller of HMSO (and the Queen’s Printer for Scotland)/Key Note Inbound visitors from the EU were by far the largest sector of the market.4% of the total number of trips taken from the EU and 68. Source: International Passenger Survey. followed by trips for business purposes (26.3 30.713 2007 10. In 2009.687 8.0 10.401 †29.424 8.113 †31.103 29.888 2009 11.Travel & Tourism Market The Inbound Market Table 7. at 7.970 2006 10.4% of all inbound trips made for holiday purposes.713 8. this figure has reduced by 6% from 21.566 9.722 32. The majority of trips from other countries were for holiday purposes or to visit friends and relatives.4 22.783 6.124 3.727 8.8 million in 2009.845 3.889 32.6%).0 32.1%) of the total.3 2005 Trips (000) Holiday VFR Business Miscellaneous Total % of Total Holiday VFR Business Miscellaneous Total 32.3 11.8 †100.3 -6. accounted for 38. For non-EU Europeans. representing 68% of the total.6 million in 2009.4% of the total).0 10. Inbound trips from North America fell to 3. However. trips for holiday purposes were also the main reason for visits (36.778 2008 10.2: The UK Inbound Travel and Tourism Market by Purpose of Trip by Volume (000 and %). followed by trips to VFR (31. The largest sector of the EU inbound market was trips for holiday purposes.0 38.8 27. © Key Note Ltd 2010 142 .923 9.406 9.4 100.3 million trips taken in 2009.456 †32. which.8 29.5 25.6 million visitors in 2008.3 100.5 100.0 9.0 27.579 3.720 8.758 9. 2005-2009 % change 2008-2009 4.5 9.

including day trips.4 31.8 16.0 65.772 1.103 Total 20.3: The UK Inbound Travel and Tourism Market by Purpose of Trip by Region of Origin by Volume (000 trips and %).8 4.6 29.579 VFR 5. plane and train prices.4 100.5 15.1 10.0 11.7% of the total).015 391 231 466 3.0 10.7 million visits (5.242 29.2 100.6 7.Travel & Tourism Market The Inbound Market Table 7.2 11.6 36.467 8. Source: International Passenger Survey.4 11. 2009 Holidays Trips (000) EU Europe North America Non-EU Europe Other Countries Total 7.9 22.4 9. © Key Note Ltd 2010 143 .811 1.733 707 464 674 †6.4 38.7 100.424 Business 4.9 5.9 14.8 26.4 15.0 28.125 419 1.9 12.6 23.9 10. with the total in 2009 at a 5-year low of 1.4 37.783 Other 2.7 12.564 1.0 64.0 100.0 38.9 34. Their importance to the overall inbound travel and tourism sector continued to fall. such as France.3 100.0 13.7 5.7 7.0 100. Increases in travel costs.2 †100.752 4.6 14. however.3 19.0 VFR — visiting friends and relatives † — does not sum due to rounding at source Note: figures are provisional and relate to trips of less than 1 year.0 100. National Statistics © Crown copyright material is reproduced with the permission of the Controller of HMSO (and the Queen’s Printer for Scotland)/Key Note Inbound day visits to the UK are popular among those who live in countries that are relatively close to the UK.9 11. such as higher ferry.341 638 1. were likely to have contributed to the falling popularity of these visits in 2009.2 23.635 †11.0 68.889 % of Total by Purpose EU Europe North America Non-EU Europe Other Countries All regions % of Total by Region EU Europe North America Non-EU Europe Other Countries Total 68.5 38.0 71.0 †100.331 3.0 100.

Travel & Tourism Market The Inbound Market Table 7. decreased by 30.3 100.0 28. while trip numbers from Italy were 25.7 6. only Spain and France recorded a higher number of trips in 2009 compared to 2008 figures.746 31. National Statistics © Crown copyright material is reproduced with the permission of the Controller of HMSO (and the Queen’s Printer for Scotland)/Key Note By Country of Origin France continued to be the leading source market for inbound tourist visits to the UK.5 100.142 1.7 100. including day trips. In 2009.199 1.1% increase on 2008 and the highest total over the 5-year review period.2 million.3 5.2% to 1 million.889 † — does not sum due to rounding at source Note: figures relate to trips of less than 1 year. Source: International Passenger Survey. In many of the other leading source markets falls were recorded in visitor numbers between 2008 and 2009. The number of visits from Poland.907 †32.4 100.0 94.8 million visits from France.059 32.5 5. © Key Note Ltd 2010 144 .778 2006 2007 2008 30.8 100.713 30.0 94.2 5. for example. there were 3.6 6.5. 2005-2009 2005 Trips (000) Tourist visits Day visits Total % of Total Tourist visits Day visits Total 93.0 94.0 93. a 4.4: The UK Inbound Travel and Tourism Market by Type of Trip by Volume (000 trips and %).5% lower at 1.931 29.888 2009 28.654 2. Among the 14 leading countries listed in Table 7.869 1.690 29.039 1.970 30.

888 2009 3.294 941 995 748 852 738 609 7. including day trips.909 3.492 955 970 702 857 743 688 7.5 -4.970 2006 3.715 1.186 1.970 3.720 1.5 -6.227 1.639 1.041 912 903 701 687 604 573 6.326 956 997 714 868 745 638 7.693 2.9 -6.615 1.221 1.780 2.889 Note: figures relate to trips of less than 1 year.713 2007 3.1 -4.981 1.5 -30.Travel & Tourism Market The Inbound Market Table 7.1 -19.950 2.7 -16.404 2.8 -18.111 699 796 728 627 6.6 -5.164 1. 2005-2009 % change 2008-2009 4.376 2.5: The UK Inbound Travel and Tourism Market by Country of Origin by Volume (000 trips and %).823 1.324 2.511 32.477 1.784 2.411 1.070 2. Source: International Passenger Survey.786 1. National Statistics © Crown copyright material is reproduced with the permission of the Controller of HMSO (and the Queen’s Printer for Scotland)/Key Note © Key Note Ltd 2010 145 .806 3.778 2008 3.818 1.900 1.494 31.438 3.2 -4.551 3.877 2.7 -25.7 -6.635 32.636 3.9 -0.3 2005 France Republic of Ireland US Germany Spain Netherlands Italy Poland Australia Belgium Switzerland Canada Sweden Norway Other countries Total 3.495 29.0 -2.979 29.041 919 1.791 1.948 2.294 1.696 3.974 1.1 9.

1% to 22.9 4.888 -2.3 3.970 - 32. higher numbers of arrivals from France may have bolstered demand for the more accessible sea and tunnel transport options.459 -8.024 -4.1 million compared to a 0.7% to stand at 3. Table 7. By contrast.2 4.7 3.3 million in 2009.588 11.7% drop in inbound visits by sea to 4.267 0.347 -0. Visits made via the Channel Tunnel also fell by 0.6: The UK Inbound Travel and Tourism Market by Mode of Transport by Volume (000 trips). 2005-2009 2005 Air % change year-on-year Sea % change year-on-year Tunnel % change year-on-year Total % change year-on-year 22.043 2006 24. including day trips.675 - 4.Travel & Tourism Market The Inbound Market By Mode of Transport Although air transportation remained by far the most popular mode of transport for inbound visitors to the UK.5 2007 25.3 Note: figures relate to trips of less than 1 year. In 2009.889 -6.089 2. Source: International Passenger Survey.080 -8.7 29.713 9.2 32.8 4. the economic downturn in 2009 had more of an impact on this form of travel than on sea or tunnel inbound transportation.369 4.1 4. the number of inbound trips made by air fell by 8.7 29.5 3.495 0.2 31.230 -1. National Statistics © Crown copyright material is reproduced with the permission of the Controller of HMSO (and the Queen’s Printer for Scotland)/Key Note © Key Note Ltd 2010 146 . Poland for example.1 3.858 3.2 2009 22.252 - 3.0 2008 24.462 -0.5 million visits.778 0. The sharper fall in arrivals via air could be due to lower numbers of travellers arriving from countries where sea or tunnel travel may be less of an option.

Travel & Tourism Market

The Inbound Market

By Type of Arrangement
The upward trend for overseas visitors to the UK who travel independently, rather than on inclusive or package holidays, continued. In 2009, 83.5% of all inbound visits were independently arranged, up from 82.7%% in 2008 and 79.3% in 2007. The popularity of this form of arrangement was especially prevalent among air travellers, with over 90% of all inbound air trips booked in this way. For sea and tunnel travel, two-thirds (67.2%) of inbound trips in 2009 were independently organised.

Table 7.7: The UK Inbound Holiday Market by Type of Arrangement and Mode of Transport by Volume (000 trips and %), 2005-2009
2005 By Air Trips (000) Independent Inclusive Total % of Total Independent Inclusive Total By Sea and Tunnel Trips (000) Independent Inclusive Total % of Total Independent Inclusive Total All Modes 64.6 35.4 100.0 66.5 33.5 100.0 60.7 39.3 100.0 66.8 33.2 100.0 67.2 32.8 100.0 2,078 1,139 3,217 2,199 1,109 3,308 1,910 1,235 3,145 2,365 1,178 3,543 2,514 1,225 3,739 88.7 11.3 100.0 89.2 10.8 100.0 87.0 13.0 100.0 90.4 9.6 100.0 91.4 8.6 100.0 5,761 735 6,496 6,478 781 7,259 6,623 990 7,613 6,672 708 7,380 7,026 659 7,685 2006 2007 2008 2009

Table continues...

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Travel & Tourism Market

The Inbound Market

Table 7.7: The UK Inbound Holiday Market by Type of Arrangement and Mode of Transport by Volume (000 trips and %), 2005-2009
...table continued
2005 Trips (000) Independent Inclusive Total % of Total Independent Inclusive Total 80.7 19.3 100.0 82.1 17.9 100.0 79.3 20.7 100.0 82.7 17.3 100.0 83.5 16.5 100.0 7,839 1,874 9,713 8,677 1,890
†10,566

2006

2007 8,533 2,225 10,758

2008 9,037 1,886 10,923

2009 9,540 1,884 11,424

† — does not sum due to rounding Note: figures relate to trips of less than 1 year, including day trips

Source: International Passenger Survey, National Statistics © Crown copyright material is reproduced with the permission of the Controller of HMSO (and the Queen’s Printer for Scotland)/Key Note

The popularity of independently arranged holiday travel is a global trend and in 2009, between 81.8% and 89.7% of all inbound visits made to the UK were arranged in this way. It is also a pattern that continues to gather pace. In 2009, 83.5% of inbound holidays were independently arranged, up from 82.7% in 2008 and 79.3% in 2007.

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Travel & Tourism Market

The Inbound Market

Table 7.8: The UK Inbound Holiday Market by Type of Arrangement and Region of Origin by Volume (000 trips and %), 2009
Ind Inc Total Ind as a % of Total 81.8 85.9 89.7 87.3 83.5

EU Europe North America Non- EU Europe Other Countries Total
Ind — independent Inc — inclusive

6,390 1,152 572 1,427
†9,540

1,421 189 66 208 1,884

7,811 1,341 638 1,635
†11,424

† — does not sum due to rounding Note: figures are provisional and relate to trips of less than 1 year, including day trips.

Source: International Passenger Survey, National Statistics © Crown copyright material is reproduced with the permission of the Controller of HMSO (and the Queen’s Printer for Scotland)/Key Note

SUPPLY STRUCTURE
The UK inbound travel and tourism market is supplied and serviced by a wide range of organisations including transport providers (road, rail and air), accommodation providers, companies which offer tourist attractions, restaurants and catering services. Organisations involved in this sector include VisitBritain, which works in partnership with the Government, the industry and its partners in London, England, Scotland and Wales to promote Britain in 35 key overseas markets. VisitBritain has a network of international offices which are supported by its London-based marketing, commercial, research and policy teams. Also involved in the inbound travel and tourism market is the trade organisation, UKinbound, which represents over 250 major member companies and organisations in all sectors of the industry.

MARKETING ACTIVITY
Main media advertising expenditure by UK tourist offices fell by 2.3% to £17m in the year ending March 2010. Despite this reduction, the 2010 total was still the second-highest over the 5-year review period and 13.6% ahead of the £15m spent in the year ending March 2006.

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Travel & Tourism Market

The Inbound Market

The tourist board with the highest levels of main media advertising in the year ending March 2010 was VisitScotland, which spent £4.6m, and Enjoy England (VisitEngland’s consumer-facing brand) which spent £2.3m. Both of these tourist boards increased their level of main media advertising in 2010 as did the Yorkshire Tourist Board, which upped its main media advertising expenditure almost fivefold to £1.8m. In 2010, the Yorkshire Tourism Agency reported a sharp increase in traffic to its website from the US following a high-profile marketing campaign in New York.

Table 7.9: Main Media Advertising Expenditure by UK Tourist Offices (£000), Years Ending March 2006-2010
2006 VisitScotland Enjoy England Wales Tourist Board/ Wales Cymru Yorkshire Tourist Board Jersey Tourist Board North East England Tourism West Midlands Tourist Board UK Tourist Office – Visit London London Tourist Board Northern Ireland Tourist Board North West England South West England Tourist Board Others Total UK Tourist Offices % change year-on-year
n.a — not available † — does not sum due to rounding at source

2007 3,986 321 2,192 330 774 1,160 n.a 346 300 336 n.a 411 5,448
†15,600

2008 3,092 2,079 1,775 226 1,100 1,432 87 220 288 n.a 234 428 3,347 14,308 -8.3

2009 2,781 887 3,132 360 1,536 419 124 261 313 272 246 147 6,922
†17,401

2010 4,613 2,327 1,327 1,752 1,458 849 406 344 274 243 n.a n.a 3,409
†17,003

4,095 91 2,532 133 1,148 1,423 n.a 238 210 826 n.a 396 3,878
†14,971

-

4.2

21.6

-2.3

Source: Nielsen Media Research

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© Key Note Ltd 2010 151 . The average expenditure per trip of visitors from the ‘Rest of the World’ region.53 63.6 bed nights for North American visitors and 6 bed nights for visitors from Europe.41 2006 489. The average length of stay for incoming visitors remained at 7. amounted to £1. 2005-2009 2005 Average expenditure per trip (£) Average length of stay (bed nights) Average expenditure per bed night (£) 475. a 17.12 8. Source: International Passenger Survey.Travel & Tourism Market The Inbound Market BUYING BEHAVIOUR Average expenditure per trip by incoming visitors to the UK reached a 5-year high of £555. North Africa.7% increase on 2008.24 66.12 in 2009. A favourable exchange rate for the euro against the pound contributed to an increase in average expenditure per day and visit. Table 7.83 in 2009. figures relate to trips of less than 1 year.16 2007 486. to remain in the UK longer than visitors from Europe and North America.48 72.7 7.89 2009 555.10: Average Expenditure per Trip. the highest figure in this category over the review period.91 2008 511.8% to £72. while average expenditure per bed night increased by 8. National Statistics © Crown copyright material is reproduced with the permission of the Controller of HMSO (and the Queen’s Printer for Scotland)/Key Note In terms of regional trends.7 7.3 8. incoming visitors from Asia/Pacific. Average Length of Stay and Average Expenditure per Bed Night by Overseas Visitors to the UK (£ and number of bed nights). In 2009. tend. the Middle East and the Caribbean.126. including day trips.33 Note: expenditure excludes fares.17 58. the average stay of these visitors was 15.4 7. Latin America.7 57. on average.7 bed nights in 2009.8 bed nights compared with 8.33.

including day trips.35 69.4 7.22 395.65 511. Visits for business reasons fell by 9% over the period while visits to friends or relatives fell by 8%. Holiday visits remained broadly the same.6 6.1 15.39 369.33 8.48 84.4 6.45 72. Source: International Passenger Survey.19 66.6 6. In the 12-month period ending April 2010.72 58. 2007-2009 2007 Average Expenditure Per Trip (£) North America Europe Rest of the World All visitors Average Length of Stay (bed nights) North America Europe Rest of World All visitors Average Expenditure per Bed Night (£) North America Europe Rest of World All visitors 83. figures relate to trips of less than 1 year.4 7.98 71.19 418. Average Length of Stay and Average Expenditure per Bed Night by Overseas Visitors to the UK by Region of Origin (£ and number of bed nights).8 7. © Key Note Ltd 2010 152 .1 15.4 million — a drop of 1.19 60.68 63.89 724.0 15.12 2008 2009 Note: expenditure excludes fares.86 64.7 8. the number of visits by overseas residents to the UK decreased by 5% from 30.8 million to 29.126.11: Average Expenditure per Trip.7 8.83 555. National Statistics © Crown copyright material is reproduced with the permission of the Controller of HMSO (and the Queen’s Printer for Scotland)/Key Note FORECASTS 2010 TO 2014 2010 is expected to be another challenging year for the inbound travel and tourism market.7 698.4 million — compared with the 12 months to April 2009.24 83.75 486.91 721.76 62.04 957.Travel & Tourism Market The Inbound Market Table 7.01 1.29 905.

900 11. which should benefit the inbound market across all three measures.Travel & Tourism Market The Inbound Market It should be noted that inbound tourist numbers in April 2010 were severely affected by the ash cloud from the volcanic eruption in Iceland and as a consequence.700 3.7 29.3 225 -4. 000 and million).3 2014 18. Between January and March 2010.700 0. Total expenditure by visitors is expected to rise.7bn.000 1. inbound visitor numbers were just 1% lower than in the first quarter of 2009.2 2012 18. visits to the UK by overseas residents were down 10% compared to April 2009. 2010-2014 2010 Expenditure (£m)† % change year-on-year Trips (000) % change year-on-year Bed nights (million) % change year-on-year † — excluding fares Note: figures relate to trips of less than 1 year. Key Note expects the inbound market to demonstrate some recovery in visitor numbers in 2011 before being significantly boosted in 2012 by the London Olympics.2 32. while inbound visitor expenditure will increase by 0.4 230 2.2 30. early indications are that this differential may be smaller than at first anticipated.8 30.12: The Forecast UK Inbound Travel and Tourism Market by Value and Volume (£m. However. Based on data for the first 3 months of 2010 from the IPS.7 218 -2.3 223 -2.3 235 7. 2011 17. VisitBritain expects receipts to outperform volume as a weak sterling encourages growth in average spend per visit. Key Note forecasts that the number of inbound trips made to the UK in 2010 and the number of bed nights stayed will both fall. In line with the projections of VisitBritain. In the longer term.500 -1.5 million in comparison to 2009 figures. Table 7.8 Source: Key Note © Key Note Ltd 2010 153 .7% to £16.200 7.000 1.3% to 29.3 31.100 -4.2 16.8 2013 18. including day trips. although only by a marginal amount due to the relatively strong rise in the value of sterling against the euro. VisitBritain is forecasting that full-year 2010 visitor numbers will decline by 1.550 2.800 -4.

000 17.250 18.000 18.750 16. 2010-2014 19.500 17.2: The Forecast UK Inbound Travel and Tourism Market by Value† (£m). Source: Key Note © Key Note Ltd 2010 154 .Travel & Tourism Market The Inbound Market Figure 7.000 2010 2011 2012 2013 2014 † — excluding fares Note: figures relate to trips of less than 1 year.250 16.750 17.500 16.500 19.250 17.000 16.750 18. including day trips.500 18.250 19.

Table 8. Despite the contractions in 2009. International tourist arrival numbers were particularly affected in the first three quarters of 2009 with falls of 10%.6 2007 900 6. second and third quarters of 2008. local transports and shopping.6% to $852bn.1: International Tourist Arrivals and Receipts (million and $bn).4 859 15.6 744 9.Travel & Tourism Market A Global Perspective 8. Tourist arrivals in the fourth quarter of 2009 increased by 2% compared to the corresponding quarter in 2008. Source: UNWTO World Tourism Barometer.2% to 880 million and international tourism receipts are projected to have declined by 9. international tourist arrivals within the year were still 9. respectively. as the global economy recovered. 7% and 2% being recorded. A Global Perspective MARKET VOLUME 2009 was a difficult year for the world tourism industry. April 2010. 2005-2009 2005 Arrivals (millions) % change year-on-year Receipts ($bn) % change year-on-year 801 679 2006 846 5.1 942 9. entertainment. World Tourism Organization © Key Note Ltd 2010 155 . thus contributing to a better than initially expected full-year total. Earnings from international passenger transport are not included.5%) up on 2005.6 Note: International tourist receipts refer to the earnings in destination countries from expenditure by international visitors on accommodation.2 852 -9. International tourist arrivals are estimated to have fallen by 4. food and drink. compared to the first. etc.7 2009 880 -4.9% higher than in 2005 and international tourist receipts were more than a quarter (25.5 2008 919 2.

1: International Tourist Arrivals (millions). April 2010. Africa was the only region which saw visitor arrivals increase in 2009 compared to 2008. falls in international tourist arrivals were recorded within four of the five regional markets with the largest decline being registered in Europe where visitor numbers fell by 5. respectively.6bn.6% to 460 million. It was only in the Middle East that international tourist receipts were higher in 2009 than 2008.8% to $165. © Key Note Ltd 2010 156 . with falls of 12.8% to $412.4bn and 11. World Tourism Organization By Region In 2009. 2005-2009 950 925 900 875 850 825 800 775 750 2005 2006 2007 2008 2009 Source: UNWTO World Tourism Barometer. Europe and the Americas experienced the largest declines in international tourist receipts in 2009.Travel & Tourism Market A Global Perspective Figure 8.

but a figure that still equated to 8.6 43.2% of the global visitor total in 2009.8% advance to 23.2 2009 412.9 140. Visitor numbers fell in seven of these countries in 2009. The US. © Key Note Ltd 2010 157 . with the UK registering a decline of 7%.8 29. World Tourism Organization By Country Arrivals France was the leading country in terms of international tourist arrivals in 2009 with a total of 74.8 165.1 †852 % change 2008-2009 -12.5 †919 Receipts 2008 472. The ten leading countries by international tourist arrivals accounted for 45.0 -11.3% decline on 2008.9 56.0 -9.0 180. entertainment. Source: UNWTO World Tourism Barometer. which fell by 8.0 146.6 million.6 -1.7 -4. which saw a 6.4% of the global total.8 209.0 44.1 -4.2 -6. The highest increase in international visitor arrivals among the ten countries included in Table 8. $bn and %).8 1.4 202.3 was reported for Malaysia. Earnings from international passenger transport are not included.3 184.0 52.9 †942 2009 460.6 † — totals do not sum due to rounding at source Note: International tourist receipts refer to the earnings in destination countries from expenditure by international visitors on accommodation.9 45.5 3.3 28. etc. food and drink. local transports and shopping.9 †880 % change 2008-2009 -5.0 187.7 42.7%. 2008 and 2009 Arrivals 2008 Europe Asia/Pacific Americas Middle East Africa Total 487.Travel & Tourism Market A Global Perspective Table 8. Spain and the People’s Republic of China (PRC) all recorded lower numbers of visitors in 2009 than in 2008.7 -5. the second-largest drop behind visits to Spain. a 6.2 million visitors. April 2010.2: International Tourist Arrivals and Receipts by Region (million.8 -3.

8 6.8 100.9 -4.9 52. this figure fell by 14. April 2010.3 919. In 2009.6 21.5 481.2 28.2 5.2bn or 11.1) Source: UNWTO World Tourism Barometer.5 -4.5 24.4 6.Travel & Tourism Market A Global Perspective Table 8.4% decline to $30.0 France US Spain PRC Italy UK† Turkey Germany Malaysia Mexico Others Total 79.2 23.4 54.1 22.4% in 2009.0 PRC — People’s Republic of China † — The UNWTO’s international arrival numbers for the UK differ from those given by the International Passenger Survey (see Table 7. US receipts from international tourism amounted to $94.0 1.9 57.2 -7.9 22.1m in international tourist receipts in the UK.2 -8.9 43. The nine leading countries by international tourist receipts accounted for 45.3: International Tourist Arrivals by Country (million and %). World Tourism Organization Receipts The US is the primary beneficiary of international tourist receipts.0 74.1% of the global total.2 53.7 30.7 -4.2 50.8 880.1 25. However.9 2.0 42.8 2.0 -2.2 2.0 24.2 % of 2009 Total 8.6 504. a contraction which was only surpassed by a 16.3 -5.0 2.5% of the global total in 2009. © Key Note Ltd 2010 158 .8 4.0 25. 2008 and 2009 2008 2009 % change 2008-2009 -6. Only in Australia did the value of receipts increase in 2009 compared to 2008.8 -4.9 3.9 5.2 54.7 2.2 57.

7 30.1 61.3% due to the impact of Influenza A (H1N1) fears during the second and third quarters of 2009.0 21. April 2010.1 3.7 40. with passenger demand for the year down by 3. Full-year traffic growth in Latin America was constrained to 0.1 942.6% and lowest in Africa at 69. while Middle Eastern carriers generated the fastest growth in passenger traffic in 2009 with an increase of 11. 2009 was the worst year that the international scheduled air traffic market had yet experienced.4 3. World Tourism Organization AIR PASSENGERS According to the International Air Transport Association (IATA).2 5.5 n.9 -12.6 % of 2009 Total 11.0 94. Europe and North America recorded year-on-year declines in passenger demand in the years up to 2009.1 55.7 4.0 -2.3 -16.3 n.2 -3.4 -12.7 40.5 100.2%.6 45. North America (-5.4: International Tourist Receipts by Country ($bn and %).1 6.4 -12.0 2.2 n.8 40.8 484.3 852. The passenger load factor was highest in North America at 79.0 PRC — People’s Republic of China n. © Key Note Ltd 2010 159 .a.2 39.5 3.a.4%).2 48. the largest falls were recorded in Asia/Pacific (-6. 54.0 36.4%) and Europe (-4.0 24. -4.8% in 2009 primarily due to an exceptionally weak performance in the first half of the year.7 34.5%.8 22. 2008 and 2009 2008 2009 % change 2008-2009 -14.2 53. 464. Carriers in Asia/Pacific.3%).0 US Spain France Italy PRC Germany UK Australia Turkey Austria Others Total 110.1 25.6 21.1 -9.Travel & Tourism Market A Global Perspective Table 8.9%. Assessed in terms of available seat kilometres.a.7 4. Africa’s carriers experienced a sharp decline of 6.7 4.a — not available Source: UNWTO World Tourism Barometer.7 -13.

5 4.3 -5.3 -4.5 1. Africa was the smallest market with a market share of 1.4 73.6 73.8% of the total.3 75. © Key Note Ltd 2010 160 .8 -5.6 -3.7 13. Available Seat Kilometres Growth and Passenger Load Factor (%).8 11.9 79.4 -6. Table 8.8 17. 2009 Market Share (%) Europe Asia/Pacific North America Middle East Latin America Africa 34.7 29..7% of the total in 2009.5 -3.6 -5.8 Table continues.Travel & Tourism Market A Global Perspective Table 8.6 RPK — revenue passenger kilometres (measures actual passenger traffic) ASK — available seat kilometres (measures available passenger capacity) PLF — passenger load factor Source: International Air Transport Association (IATA) The largest regional international passenger traffic by revenue passenger kilometres (RPK) market share was Europe. 2008-2009 RPK Growth (%) ASK Growth (%) Africa North America Asia/Pacific Europe Latin America Middle East Total -6.6: Revenue Passenger Kilometres Market Shares by Region (%). which accounted for 34.0 73.9 76.0 PLF 69.0 0.2 -3.3 11.6 -5..5: Revenue Passenger Kilometres.4 1.

6% in March 2009 to 1..0 699. these airlines carried 326 million passengers on scheduled flights.8 326. an 8.table continued Market Share (%) Total † — does not sum due to rounding †100.6 361.9 345.4 355. Passenger numbers in 2009 declined on a monthly basis compared to the corresponding periods in 2008. In 2009.8 747. At 76% the load factor in 2009 was unchanged on 2008 figures. Table 8.2 791.6: Revenue Passenger Kilometres Market Shares by Region (%).5% to 747.4% reduction on 2008 levels.0 Source: International Air Transport Association (IATA) EUROPEAN AIRLINE MARKET The Association of European Airlines (AEA) compiles air passenger statistics based on the returns of 36 leading airlines across Europe including British Airways.Travel & Tourism Market A Global Perspective Table 8. These monthly falls ranged from 10.9 -5.1% in November 2009. dropping by 5.5 741.6 781. 2009 . with the exception of December 2009 when numbers increased by 1. BMI and Virgin Atlantic.5 Source: Association of European Airlines (AEA) © Key Note Ltd 2010 161 .7: Number of Air Transport Passengers and Passenger Kilometres Travelled by Association of European Airlines’ Members on Scheduled Services (million and billion kilometres). 2005-2009 2005 2006 2007 2008 2009 % change 2008-2009 -8.4%.4 Passengers on scheduled services (million) Passenger kilometres travelled (billion kilometres) 329. The number of passenger kilometres travelled also fell in 2009.9 billion..

0 % of Total 16.5 6.5 million passengers.3 4.6 6.9 32. British Airways was the third-largest AEA member airline by passengers in 2009 with 32.7 9.Travel & Tourism Market A Global Perspective In 2009.0 © Key Note Ltd 2010 162 . was the eighth-largest with 20.3 21.9 100.3 14.3 18. the Spanish airline. Combined.9 7.2 20.6 7.2 2. 2009 Million Lufthansa Air France British Airways Turkish Airlines KLM SAS Alitalia Iberia Swiss International Airline BMI Others Total Source: Association of European Airlines (AEA) 53. the leading AEA member airline in terms of passengers carried was Lufthansa with 53.3 24.7 326.2 47. indicating that the merger of these two airlines would put them almost equal to Lufthansa.5 13.8 6. Table 8.5 6. British Airways and Iberia would have carried 52.8: Number of Air Transport Passengers of Association of European Airlines’ Members by Airline (million and %).4 21.4 61.3 million and Iberia.5 22.2 million passengers.8 million passengers in 2009.

Passenger numbers in Africa slipped back by 0. a 16.466.2% to 1.4% to 1. driven primarily by domestic traffic in the PRC and India. while in Asia/Pacific.4 million passengers.7% rise.573 368. respectively.732 183. % change 2008-2009 -5. © Key Note Ltd 2010 163 . 2009 Passengers (000) North America Europe† Asia/Pacific Latin America/ Caribbean Middle East Africa Total † — includes Intra-European (Schengen) traffic Note: these preliminary statistics are compiled from data reported by those airports that participate regularly in Airports Council International monthly traffic statistics collection.6 -2. a strong performance during the second half of 2009.7 1. which fell by 5.467 Source: Airports Council International By Airport The world’s largest airport by passenger numbers is Atlanta which handled 88 million passengers in 2009.4 4.22 billion.4 billion.5% in 2009 boosted by an improving Brazilian market. while a more stable Middle Eastern market produced a 7.487 150. passenger numbers showed a small increase of 1.2% decrease on 2008. In Latin America/Caribbean.9% to 1.9% increase on 2008 figures.2 -5.7 -0. a 2. Table 8.589 1.6% to 150.593 4. The recessionary influences of 2009 affected airport passenger numbers in North America and Europe. helped to push passenger numbers up by 4.493 1.9 1.47 billion and 5.Travel & Tourism Market A Global Perspective AIRPORT PASSENGER NUMBERS By Region North America. Europe and Asia/Pacific are the world’s three leading regional markets for air travel.408.9: Worldwide Airport Passengers by Region (000 and %).218.5 7.6 million.796. Heathrow replaced Chicago as the world’s second-busiest airport in 2009 with 66 million terminal and transit passengers and Beijing became the world’s third-busiest airport with nearly 65.

907 56.372 64.007 37.251 45.9 -8.158 61.5 16.5 -1.339 3. Dubai.570 45.Travel & Tourism Market A Global Perspective Among the world’s 20 busiest airports. © Key Note Ltd 2010 164 .2 4. Louis.9 -4. Manchester. only 26 airports showed positive growth.8 9.2 -1. Beijing.030 50. 2009 †Passengers (000) % change 2008-2009 -2.1 -5.2 0. Table 8. Dublin and Osaka airports all reported double-digit declines in passenger numbers in 2009.167 48.2 -4.3 -4. At the other end of the scale.037 65.9 -6.559 40.500 40.1 -3..933 50. Detroit.521 56.048 Table continues.9 -6.904 57.10: Worldwide Airport Passengers by Airport (000).469 40.9 -5. Vancouver.1 -5. while in the top 100 listing..341.1 -4. St. Bangkok and San Francisco were the only ones to record increases in passenger numbers in 2009.3 n.902 40.032 66.1 -7. Stockholm Arlanda.825 37.a Atlanta (ATL) London (LHR)‡ Beijing (PEK) Chicago (ORD) Tokyo (HND) Paris (CDG) Los Angeles (LAX) Dallas/Ft Worth (DFW) Frankfurt (FRA) Denver (DEN) Madrid (MAD) New York (JFK) Amsterdam (AMS) Hong Kong (HKG) Dubai (DXB) Bangkok (BKK) Las Vegas (LAS) Houston (IAH) Phoenix (PHX) San Francisco (SFO) Others 88. London Stansted.915 45.7 -2.

7 Total 4.. Germany continues to show strong growth in second place with just over 1 million passengers and 20. the third-largest cruise market in Europe. Italy.8% increase on the previous year. which exceeded the 1 million passenger threshold for the first time in 2009.000 passengers in 2009. The UK market has doubled in the past 9 years.table continued †Passengers (000) % change 2008-2009 -2.10: Worldwide Airport Passengers by Airport (000).1% increase to 587. while Spain reported an 18.380. The European cruise industry has positioned cruising as a mainstream holiday choice and this is believed to have contributed to the growth reported during the major downturn in the world economy. saw a 17. 4. an 11. with 1. followed by Germany.5 million British passengers taking a cruise in 2009. with record numbers of Europeans taking cruise holidays in 2009.000 passengers.2% increase to 799.Travel & Tourism Market A Global Perspective Table 8. the European cruise market continued to exhibit steady growth.9 million passengers took a cruise holiday in 2009.446 † — arriving and departing passengers and direct transit counted once ‡ — Heathrow’s total includes both terminal and transit passenger numbers n.8% of the market.a — not available Note: these preliminary figures were compiled from data reported by those airports that participate in Airports Council International’s monthly traffic statistics collection. According to the European Cruise Council (ECC). representing 31% of the market. The UK continues to be the leading European cruise market in terms of passenger numbers. Source: Airports Council International THE CRUISE MARKET In contrast to the weaker market conditions in many other sectors of the travel and tourism industry in 2009. 2009 . © Key Note Ltd 2010 165 ..

8 million cruise passengers visiting the region in 2009.2 million passengers.004 17. 2005-2009 2005 2006 2007 2008 2009 % change 2008-2009 3.477 907 682 497 310 123 1.1 11.8 19.7 42 39 51 15 102 3.409 9. © Key Note Ltd 2010 166 .126 64 44 56 18 105 3.422 10.Travel & Tourism Market A Global Perspective Table 8. while the Caribbean and the rest of the world accounted for 1.000.2 17. Finland) Benelux Austria Switzerland Portugal Other Total† % change year-on-year n.5 92 59 65 28 183 4. an increase of 19% over the previous year.335 763 640 518 280 94 1.8 13.8 UK Germany Italy Spain France Scandinavia (incl.6 16.11: Number of European Cruise Passengers by Country (000).204 705 517 391 242 62 1.533 1. Northern Europe showed impressive growth with a 20% increase in the number of cruise visitors to 884.1 82 52 64 20 155 4. resulting in a market share of 57%.a 16.4 110 80 76 n.9 n.4 11.a — not available 1.a 213 4.9 40.944 11.2 18.071 639 514 379 233 42 1.027 799 587 347 173 † — totals do not sum due to rounding at source Source: European Cruise Council/IRN Research The Mediterranean and Atlantic Islands continue to be the most popular destinations with 2.6 35.

still 2.Travel & Tourism Market A Global Perspective GLOBAL TOURIST FORECASTS The World Tourism Organization (UNWTO) is forecasting that international tourist arrivals will increase between 3% and 4% in 2010. growth in international tourist arrivals is still uneven and trading conditions remain challenging. In the first 4 months of 2010. the FIFA Football World Cup in South Africa. a 6. trends such as late booking. Southern California. particularly for advanced economies and this could affect leading outbound markets.3% due to the closure of European airspace in April 2010. as well as severe flooding in a number of destinations including Pakistan. On the consumer side. The travel and tourism industry may also be confronted with increased taxes such as the expected rise in UK departure tax. On the downside. Globally. Visitor volume in the first 4 months of 2010 was. including earthquakes in Haiti. travelling closer to home and for shorter periods of time and demanding value for money seem to have been accentuated during the post-crisis period and are likely to continue in the future. Lower growth rates were recorded in Africa (6%) and the Americas (6%). however. According to the June 2010 issue of the UNWTO World Tourism Barometer.6% increase on the number of international tourist arrivals recorded for the corresponding period in 2009 which was the worst period of the crisis. while visitor numbers in Asia and the Pacific were 12% higher. while in Europe growth was limited to just 0. Chile. as well as from a number of high-profile events including the Winter Olympics in Vancouver. increasing use of the Internet to look and book. These and other challenges mean that the world tourism industry still has some way to go to make up lost ground. the pace of recovery is faster than initially expected and is largely being driven by emerging markets.3% short of the record figures reported in 2008. international tourist arrivals in the Middle East increased by 33% compared to the same period in 2009. when there were 264 million arrivals in the same 4-month period. the World Exposition in Shanghai and the Commonwealth Games in India. International tourist arrivals in 2010 should benefit from the gradually improving economic situation. Peru and parts of Europe. and this may be even higher if the summer high season in Europe is strong. Increasing unemployment continues to be a major cause of concern. © Key Note Ltd 2010 167 . which is due to come into force in November 2010. international tourist arrivals totalled over 258 million. Guatemala and New Zealand. tourism has suffered the effects of a series of natural disasters. and Germany’s intention to introduce a new air tax as part of its budget-cutting plans. In the first 4 months of 2010.

is currently forecast to rise by 3.5 Source: Forecasts for the UK Economy.4 2.Travel & Tourism Market The Future 9.2 2011 2012 2013 2014 1. in June 2010. The forecast improvement in the economic outlook in 2010 should help to bolster demand for travel and tourism services.1% in 2010 and then steadily strengthen up to 2014.7 2. The economic downturn in late 2008 and 2009 affected all parts of UK business including the travel and tourism industry.3 -0. 2010-2014 2010 Gross domestic product growth (%) Percentage point change year-on-year 1. © Key Note Ltd 2010 168 .1% higher.1 2.1 2. the RPI for UK holidays was 4.0 0. The Future INTRODUCTION The Economy Gross Domestic Product Gross domestic product (GDP) in the UK is forecast to rise by 1. as measured by the retail price index (RPI).6% in 2010 and remain above 3% between 2012 and 2014.3 0. May 2010. Table 9. Inflation at these levels will increase the operating costs of companies involved in travel and tourism and may lead to price rises above the overall RPI.1: Forecast UK Growth in Gross Domestic Product in Real Terms (%). For example. although the speed and rate of the recovery is likely to remain fairly modest and it may be 2011 before the overall market starts to improve. Treasury Independent Average © Crown copyright Inflation Inflation in the UK.1% higher than in June 2009 and the RPI for foreign holidays was 6.

These relatively high rates of unemployment could affect both consumer confidence and consumer expenditure and. the economic constraints affecting the UK might mitigate such benefits.62 -3.9 2012 3.37 -7.4 Source: Forecasts for the UK Economy.2: Forecast UK Rate of Inflation (%).2% to nearly 1. May 2010.3: Forecast Actual Number of Unemployed Persons in the UK (millions). In the long term.7 million people over the forecast period.1 -0.67 0.3 2014 3. the demand for travel and tourism services. a rise of 1. Treasury Independent Average © Crown copyright Population The UK population is forecast to increase by 0. before remaining above 1.3 0. However.48 -8. 2010-2014 2010 Actual number of claimants (million) % change year-on-year 2011 2012 2013 2014 1. in turn.7 million claimants in 2010.4 Note: inflation is at retail price index (RPI). Source: Forecasts for the UK Economy.0 1.67 9.6 million until 2013.0 1.7 0. 2010-2014 2010 Inflation (%) Percentage point change year-on-year 4.1 3. Treasury Independent Average © Crown copyright Unemployment Unemployment in the UK is forecast to rise by 9.1 0.6 2011 2.6 1.0 2013 3. Table 9.2 million in 2010 and reach 63. May 2010. a growing population should boost demand for travel and tourism.2 1.7% to 62.9 million by 2014. in the short term. © Key Note Ltd 2010 169 .Travel & Tourism Market The Future Table 9.

Mid-Years 2010-2014 2010 Female Male 31.498 0.842 2012 32.4% to £67. trips and bed nights all lower than in 2009.074 0. an 11.4: Forecast UK Resident Population by Sex (000).649 0.196 31.9% on 2010.614 30.921 0.18 billion. The market is expected to show some improvement in 2011 before experiencing further growth in 2012 when the inbound and domestic sectors should receive a boost from the London Olympics.609 2011 31. the number of trips made is expected to decline by 1.8bn.8% to 210. a 2.7 0.2% advance on 2010.073 2013 32.7 million and the number of bed nights is forecast to fall by 5% to 1.5 million by 2014.4bn at the end of the forecast period.391 31.25 billion by 2014.7 63. The number of trips made is projected to approach 216. travel and tourism expenditure is currently projected to rise and reach £75.7 † — does not sum due to rounding by source Source: Population Projections Database (2008-based projections).807 30.001 31.Travel & Tourism Market The Future Table 9. The value of the market is projected to fall by 3.7 63.530 Total % change year-on-year †62.7 63.222 62.7% improvement on 2010 and bed night numbers are forecast to increase to 1. © Key Note Ltd 2010 170 . a rise of 5. Thereafter and up to 2014. National Statistics website © Crown copyright material is reproduced with the permission of the Controller of HMSO (and the Queen’s Printer for Scotland) FORECASTS 2010 TO 2014 Key Note forecasts that the UK travel and tourism market will once again contract in 2010 with expenditure.302 2014 32.

900 4.500 18.186 0.100 29.200 219.500 53.400 2.100 32.1 2014 22.500 58.5: The Forecast UK Travel and Tourism Market by Value and Volume (£m.300 0.000 16.800 215.7 Source: Key Note © Key Note Ltd 2010 171 .250 1.7 399 605 225 1.250 6.550 216.100 1.900 18.230 3.1 395 625 230 1.200 34.700 75.530 52.4 128. 2010-2014 2010 Expenditure (£m) Domestic Outbound† Inbound† Total % change year-on-year Trips (000) Domestic Outbound Inbound Total % change year-on-year Bed nights (million) Domestic Outbound Inbound Total % change year-on-year † — excluding fares Note: domestic trips relate to trips of less than 60 days but at least 1 night.9 2012 23.000 31.0 398 570 218 1.Travel & Tourism Market The Future Table 9.500 210.600 55.0 2013 22.730 -1.000 211.500 -2.450 0.000 69.5 410 585 235 1.900 73.800 30.180 -5.000 17.800 -3.300 0.700 67.9 22.8 127.229 -0.000 56.300 32. 2011 22.3 132.400 31.350 18.700 30.100 73. 000 and million).0 126.100 30. outbound and inbound trips relate to trips of fewer than 1 year.4 402 555 223 1.1 128.700 29.

These included co-ordinating marketing to help small and medium-sized tourist businesses who cannot afford to do it themselves.000 70. The report. that government intervention would be the key to success.000 68.000 67. however.000 71.Travel & Tourism Market The Future Figure 9.000 2010 2011 2012 2013 2014 † — excluding fares Source: Key Note FUTURE TRENDS Value of Tourism to the UK Economy Set to Rise According to a study commissioned by VisitBritain.000 69.000 75.000 72.1: The Forecast UK Travel and Tourism Market by Value† (£m). The report does warn. 2010-2014 76.000 73. suggested that favourable exchange rates. the value of tourism to the UK economy is set to rise significantly by 2020. as a range of market failures need to be tackled. ‘grey pound’. by professional services company Deloitte and forecasting organisation Oxford Economics.000 74. the lure of the London 2012 Olympics and the appeal of British attractions should ensure continued growth. © Key Note Ltd 2010 172 . and supporting the many districts across the UK that rely on tourism as an important source of jobs for low-skilled and part-time workers. enabling rural firms. who face higher costs of operating. The report also suggests that the tourism industry needed help to improve its ability to predict what facilities would be needed for the tourists that are likely to turn up and to ensure the modernisation of hotels and venues is done in a way that retains their original appeal and authenticity. to adopt technology. tourists. It also needs to be able to adapt more swiftly to new trends such as the growth in older.

there may be some potential for recovery within this sector of the market in the future. In 2009. the number of such trips made in the domestic market fell to 18 million after recording a figure of 18. The desire of ABTA members to increase the scope of protection will be a major step forward for consumers. The Travel Association (ABTA) is advocating a radical overhaul of consumer protection in the travel industry and members of the association believe that consumer protection should be extended and clarified. Structural changes in the industry linked to the rise of the no-frills carriers and the growth of the Internet have meant that current legislation is becoming increasingly outdated and irrelevant to the majority of international travellers in the EU. Business Travel Travel and tourism trips for business purposes have been badly affected by the recession. Although the market for business travel and tourism may remain difficult in 2011.1 million to 6.9 million and the number of inbound trips for business purposes dropped from 8.2 million in 2008. © Key Note Ltd 2010 173 .6 million.9 million to 6. the number of outbound trips for business purposes slipped from 8. The growth in travel arrangements that fall outside the legal definition of a package holiday has resulted in many customers travelling without the benefit of financial protection.Travel & Tourism Market The Future Package Travel Directive The European Union review of the Package Travel Directive (PTD) forms part of Europe’s biggest regulatory overhaul in travel for 20 years. and should remove market distortions. for example.

uk Air Travel Insolvency Protection Advisory Committee E-mail: atipac@caa. Further Sources Associations Airlines Reporting Corporation 4100 North Fairfax Drive.uk http://www.aoa.uk http://www.atoc.com Airports Council International CP 16 Aéroport 15 1215.arccorp.co.auc.org. Suite 600 Arlington.com Association of European Airlines Avenue Louise 350 B-1050 Brussels Belgium Telephone: 00322-639 8989 Fax: 00322-639 8999 http://www.aero http://www. VA 22203-1629 US Telephone: 0017-038 168 000 Fax: 0017-038 168 104 http://www.uk Air Transport Users Council CAA House 45-59 Kingsway London.com http://www.be Association of Independent Tour Operators 133A St Margaret’s Road Twickenham Middlesex.org © Key Note Ltd 2010 174 .abta.airports. WC1N 1BY Telephone: 020-7841 8020 Fax: 020-7841 8263 http://www. SW1H 9JJ Telephone: 020-7799 3171 Fax: 020-7340 0999 E-mail: info@aoa. WC2B 6TE Telephone: 020-7240 6061 Fax: 020-7240 7071 E-mail: admin@auc.org.uk Association of Train Operating Companies 3rd Floor 40 Bernard Street London.org.uk http://www.org. Geneva 15 Switzerland Telephone: 0041-227 178 585 Fax: 0041-227 178 888 E-mail: aci@aci.uk Association of British Travel Agents 30 Park Street London.aea.aito. SE1 9EQ http://www.org Airport Operators Association 3 Birdcage Walk London. TW1 1RG Telephone 020-8744 9280 Fax: 020-8744 3187 E-mail info@aito.atipac.co.Travel & Tourism Market Further Sources 10.org.

WC2B 6TE http://www.bata.caa.uk Competition Commission Victoria House Southampton Row London.europeancruisecouncil.gebta.gsi.uk http://www.com European Low Fares Airline Association 14A.uk Guild of European Business Travel Agents Rue Dautzenberg 36 B-1050 Brussels Belgium Telephone: 00322-644 2187 Fax: 00322-644 2421 E-mail: gebta@gebta.eu European Cruise Council C/o European Community Shipowners’ Associations Rue Ducale 67. SE1 9EQ Telephone: 020-3117 0590 Fax: 020-3117 0581 E-mail: info@fto.com Federation of Tour Operators 30 Park Street London.org.co.gov.europa.uk. SW1P 1RT Telephone: 020-7222 9494 Fax: 020-7222 9595 Telephone: info@bata.com The British Tourist Authority 1 Palace Street London.uk Competition Appeal Tribunal Victoria House Bloomsbury Place London.com Civil Aviation Authority CAA House 45-59 Kingsway London.co. SW1P 3AT Telephone: 020-7973 1992 Fax: 020-7973 1900 http://ec. Rue du Luxembourg B-1000 Brussels Belgium Telephone: 00322-504 9005 http://www.catribunal.competition-commission. WC1A 2EB Telephone: 020-7979 7979 Fax: 020-7979 7978 http://www. bte 2 1000 Brussels Belgium Telephone: 00322-510 6127 http:// www.co.com http://www.org.org © Key Note Ltd 2010 175 . SW1E 5HE Telephone: 020-7578 1400 Fax: 020-7578 1401 http://www.fto.uk European Commission 8 Storey’s Gate London.elfaa.uk http:// www.uk.Travel & Tourism Market Further Sources The British Air Transport Association Artillery House 11-19 Artillery Row London.visitbritain.org http://www. WC1B 4AD Telephone: 020-7271 0100 E-mail: info@cc.

unwto.org http://www.iata.wttc.int http://www.int The Travel Foundation The CREATE Centre Smeaton Road Bristol.org © Key Note Ltd 2010 176 .thetravelfoundation. W1T 4TQ Telephone: 020-7268 3540 Fax: 020-7268 3105 E-mail: info@gtmc.org World Travel & Tourism Council 1-2 Queen Victoria Terrace Sovereign Court London.org International Civil Aviation Organization 999 University Street Montréal Quebec.org.org.icao.Travel & Tourism Market Further Sources Guild of Travel Management Companies Euston Fitzrovia 85 Tottenham Court Road London.org Institution of Civil Engineers One Great George Street Westminster London.gtmc.ice.uk http:// www.org http://www. H3C 5H7 Canada Telephone: 00151-4954 8219 Fax: 00151-4954 6077 E-mail: icaohq@icao. E1W 3HA Telephone: 0870-727 9882 Fax: 0870-728 9882 E-mail: enquiries@wttc.ukinbound.org. BS1 6XN Telephone: 01179-273 049 Fax: 01179-300 076 E-mail: admin@thetravelfoundation.uk UKinbound 3rd Floor 388 The Strand London WC2R 0LT Telephone: 020-7395 7500 Fax: 020-7240 6618 E-mail: info@ukinbound.org http://www.uk International Air Transport Association Spencer House 23 Sheen Road Richmond upon Thames. SW1P 3AA Telephone: 020-7222 7722 http://www. TW9 1BN Telephone: 020-7660 0068 Fax: 00349-114 12624 http://www.org http://www.org World Tourism Organization Capitán Haya 42 28020 Madrid Spain Telephone: 00349-1567 8100 Fax: 00349-1571 3733 E-mail: omt@unwto.

co.telegraph.com http://www.co.irn-research.caa. SW1E 5HE Telephone: 020-7578 1400 Fax: 020-7578 1401 http://www.org http://www.com • UK Airline Statistics Civil Aviation Authority CAA House 45-59 Kingsway London. E1W 3HA Telephone: 0870-727 9882 Fax: 0870-728 9882 E-mail: enquiries@wttc.org http://www.uk • Tourism Satellite Accounting Forecasts World Travel & Tourism Council 1-2 Queen Victoria Terrace Sovereign Court London.org • United Kingdom Tourism Survey • United Kingdom Occupancy Survey VisitBritain 1 Palace Street London. W8 5TT Telephone: 020-3367 7000 http://www. B37 7UQ Telephone: 0121-635 5210 Fax: 0121-635 5211 E-mail: info@irn-research.org © Key Note Ltd 2010 177 .uk • UK Cruise Census 2009 IRN Research Concorde House Trinity Park Solihull Birmingham.the-psa.visitbritain. WC2B 6TE http://www.com Passenger Shipping Association 1st Floor 41-42 Eastcastle Street London.co.Travel & Tourism Market Further Sources Publications Daily Telegraph 111 Buckingham Palace Road London.co.thisislondon. SW1W 0DT http://www.unwto.uk • UNWTO World Tourism Barometer. April 2010 World Tourism Organization Capitán Haya 42 28020 Madrid Spain Telephone: 00349-1567 8100 Fax: 00349-1571 3733 E-mail: omt@unwto. W1W 8DU Telephone: 020-7436 2449 http://www.uk London Evening Standard 2 Derry Street London.wttc.

uk •Forecasts for the UK Economy-Treasury Independent Average.dft. W5 2BP Telephone: 020-8433 4000 Fax: 020-8433 4001 http://www.co.Travel & Tourism Market Further Sources General Sources Dun & Bradstreet Marlow International Parkway Marlow Buckinghamshire.kantarmedia. Innovation and Skills 1 Victoria Street London. SL7 1AJ http://www. May 2010 © Key Note Ltd 2010 178 .hm-treasury.co.dnb.dnb.bis. SW1P 4DR Telephone: 0300-330 3000 Fax: 020-7944 9643 http://www.uk Department for Transport Great Minster House 76 Marsham Street London.co.com Nielsen Media Research Atrium Court The Ring Bracknell Berkshire. SW1H 0ET Telephone: 020-7215 5000 http://www.gov.gov.com http://www.uk Kantar Media Ealing Gateway 26-30 Uxbridge Road Ealing London. SL7 1AJ http://www.uk HM Treasury 1 Horse Guards Road London.uk Dun & Bradstreet Marlow International Parkway Marlow Buckinghamshire.nielsenmedia.uk Government Sources Department of Business. RG12 1BZ Telephone: 01344-469 100 Fax: 01344-469 102 E-mail: mediacommunicationuk@ nielsen.gov. SW1A 2HQ Telephone: 020-7270 4558 Fax: 020-7270 4861 http://www.

SR3 3XP Telephone: 0191-520 4000 Fax: 0191-520 4001 E-mail: enquiries@arriva.statistics.com easyJet Hangar 89 London Luton Airport Bedfordshire.lda.uk Arriva Admiral Way Doxford International Business Park Sunderland. WC2B 5HA Telephone: 020-7257 2520 Fax: 020-7240 6565 E-mail: contact@greener-journeys.com Greener Journeys 3rd Floor Drury House 34-43 Russell Street London.com http://www. LU2 9PF Telephone: 0871-244 2366 http://www.gov. EC1R 1UW Telephone: 0845-601 3034 Fax: 01633-652 747 E-mail: info@statistics. EC4A 3BZ Telephone: 020-7936 3000 Fax: 020-7583 1198 http://www.com London Development Agency Palestra 197 Blackfriars Road London.arriva.easyjet.uk © Key Note Ltd 2010 179 .co. WC2B 6TE Telephone: 020-7453 6700 http://www.gov.deloitte. 2009 •Economic & Labour Market Review.greener-journeys.co.uk •Annual Abstract of Statistics.caa.uk Deloitte 2 New Street Square London.uk http://www.co.gov. May 2010 •International Passenger Survey •Monthly Digest of Statistics.Travel & Tourism Market Further Sources National Statistics 1 Myddelton Street London.uk http://www. Size and Location Other Sources Air Travel Organisers’ Licensing Civil Aviation Authority ATOL Section K3 45-59 Kingsway London. May 2010 •Population Projections Database (2008-based projections) •UK Business: Activity. SE1 8AA Telephone: 020-7593 8000 http://www.

com Transport for London Windsor House 50 Victoria Street London.com http://www.Travel & Tourism Market Further Sources Northern Ireland Tourist Board 59 North Street Belfast.gov. OX1 1HB Telephone: 01865-268 900 Fax: 01865-268 906 E-mail: mailbox@oxfordeconomics.discovernorthernireland.com VisitEngland 1 Palace Street London.ttglive. BT1 1NB Telephone: 02890-231 221 Fax: 02890-240 960 E-mail: info@nitb.uk TTG Live Third Floor Ludgate House 245 Blackfriars Road London.visitengland.com P&O Ferries Channel House Channel View Road Dover.org © Key Note Ltd 2010 180 . EH6 6JH Telephone: 0131-472 2222 Fax: 0131-472 2250 http://www.poferries. SW1E 5HE Telephone: 020-7578 1400 Fax: 020-7578 1401 http://www.visitlondon.tfl.com Oxford Economics Abbey House 121 St Aldates Oxford.oef.oneworld.no http://www.visitbritain. SW1H 0TL Telephone: 020-7222 5600 http://www. BC V6C 2G8 Canada http://www. CT17 9TJ http://www.com/home VisitBritain 1 Palace Street London.visitscotland. SE1 2RR Telephone: 020-7234 5800 Fax: 020-7378 6525 http://www.com Norwegian Institute for Air Research Instituttveien 18 NO-2007 Kjeller Norway Telephone: 0047-6389 8000 Fax: 0047-6389 8050 E-mail: nilu@nilu.com VisitScotland Ocean Point One 94 Ocean Drive Edinburgh. SW1E 5HE Telephone: 020-7578 1400 Fax: 020-7578 1401 http://www.com http:// www.com Visit London 2 More London Riverside London.nilu. SE1 9UY http://www.no Oneworld Alliance Burrard Street Vancouver.

these offer the same incisive market intelligence as Market Reports. Key Note Market Reviews are designed to inform you of developments and opportunities across entire industry sectors. but include additional chapters and primary research data.co.keynote.uk Key Note Market Reports Plus • Hotels £605 each Concentrating on more dynamic consumer markets. LS11 5WH Telephone: 01133-223 500 E-mail: info@yorkshire.co. © Key Note Ltd 2010 181 . CF24 0UY Telephone: 0870-8300 306 Fax: 0870-1211 259 E-mail: info@visitwales.uk http://www.Travel & Tourism Market Further Sources Visit Wales Welsh Assembly Government Brunel House 2 Fitzalan Road Cardiff.uk Yorkshire Tourist Board Dry Sand Foundry Foundry Square Holbeck Leeds.co. Key Note Market Reports • Airlines • Airports • Rail Travel • Travel Agents & Overseas Tour Operators £460 each Invaluable aids to anyone needing to gain a highly detailed understanding of a specific market for more informed decision-making. Key Note Market Reviews • The Cruise Market £750 each Focusing on the bigger picture.yorkshire.co.visitwales.com Key Note Sources Key Note Ltd 5th Floor Harlequin House 7 High Street Teddington Richmond Upon Thames.com http://www. TW11 8EE Telephone: 0845-504 0452 Fax: 0845-504 0453 E-mail: sales@keynote.uk http://www.

co. Top Markets and Market Forecasts are an indispensable and authoritative mini business library. Key Note Market Focus Reports £699 each/£999 set of 10 volumes Please contact sales@keynote. Key Note UKplc Report UKplc is an indispensable guide for managers and for those interested in gaining a greater insight into the financial performance of an average company operating in each of the main industries in the UK. there is a detailed Financial Survey report. Compiled using Key Note Market Reports. Other Market Focus reports are created in conjunction with specialist authors. these premium reports examine the scope. strategic and global view of key industries. You can choose from approximately 90 industry sectors where thousands of companies are profiled in each report. providing a one-stop shop for all your research needs. Key Note Business Ratio Reports • The Caravan Industry • The Hotel Industry • Travel Agents & Tour Operators £365 each Over 148 titles evaluating each UK industry sector. the publication will allow the reader to gain a greater level of market intelligence as well as a good knowledge of the current state of the UK industry. • Travel Agents & Tour Operators £420 each For each key industry sector. Top Markets and Market Forecasts add a further dimension to the Key Note range. Market Report Plus’ and Market Assessments published in the previous year. consumer and lifestyle sectors.Travel & Tourism Market Further Sources Key Note Market Assessments Key Note Financial Survey Reports • Activity Holidays • Business Travel Market • European Tourist Attractions • Holiday Purchasing Patterns • Short Breaks £899 each Providing in-depth strategic analysis and including primary research.uk for sector-specific individual volume prices. analyse and comment on the financial performance of the leading companies in each marketplace. with a particular focus on financial services. consultancies and industry experts whose wealth of knowledge is vital in publishing this type of report. contrast. © Key Note Ltd 2010 182 . bringing you invaluable financial information and contact details. Providing up-to-date information and analysis. They compare. providing an in-depth. dynamics and shape of key UK and European markets.

sectors. which are profiled in each report. Even historical figures can be provided. you can also choose exactly what performance information you need on them — with our Bespoke Data Service.uk Key Note Research Consultancy We can offer a full-service bespoke solution for any research requirements not covered by the published report range.Travel & Tourism Market Further Sources Key Note Regional Leads Reports £420 For each region of Great Britain. there is a detailed Regional Leads Report. ratios and other data items specific to your individual requirements alone.uk Key Note Bespoke Data Service As well as choosing the companies you want to analyse.co. We will be able to provide you with information covering the companies.co.co. You can also choose from these further services: Key Note Carnet A service that offers a discount on multiple report purchases. Contact us for more information: sales@keynote. Contact us for further details: sales@keynote. performance figures. Contact us for more information: bespoke@keynote. bringing you invaluable financial information and contact details for thousands of companies.uk © Key Note Ltd 2010 183 . Our comprehensive market research and information consultancy service is managed in house.

Profile. produced by Kantar Media. Number. usually. are generally based on one of the following groups: • Households — a private household consists of either one person living alone or a group of people. • Housewives — a member of a private household who is solely or mainly responsible for the household duties. © Key Note Ltd 2010 184 . and/or Penetration. These terms are explained in the following table. members of one family. Profile. but not always. who live together and whose food and other household expenses are managed as one unit.Travel & Tourism Market Understanding TGI Data Understanding TGI Data TGI tables. • Adults — any person aged 15 or over. Penetration Tables used in Key Note reports may give figures for the Number.

presence of domestic help. administrative or professional Supervisory or clerical and junior managerial. If this information is not available. therefore. social grade is based on environmental factors such as type of dwelling. Social Grade This is normally based on the occupation of the Head of the Household. Social grade is checked by Kantar Media’s coding and editing office. administrative or professional Intermediate managerial. Social grade is assessed by the interviewer when collecting the information and is. social grade and standard region. amenities in the home. etc. based on information given personally and verbally by the respondent. administrative or professional Skilled manual workers Semi and unskilled workers State pensioners or widows C2 D E Skilled working class Working class Those at lowest levels of subsistence (no other earner) Standard Region This is as defined by the Registrar-General. The following table broadly defines the six social grades used. © Key Note Ltd 2010 185 .Travel & Tourism Market Understanding TGI Data TGI data used in Key Note reports are broken down by age. or if the Head of the Household is retired. Social Grade A B C1 Social Status Upper middle class Middle class Lower middle class Head of Household’s Occupation Higher managerial. their former occupation. The relationship between social grade and net income of the Head of the Household is a complex one and readers should note that income is not determinant of social grade.

are invaluable to the Key Note research process. Trade sources. either face-to-face or by telephone. Key Note represents clear. and covers the period from the last edition of the report to the current day. Field research is commissioned for various consumer reports and market reviews. and is carried out by NEMS Market Research. industrial. Key Note undertakes various types of research: Online searching is carried out by product code or free search method. although there will be some instances where a realistic estimate cannot be made or external sources request that we do not update their figures. etc. are used for essential background data and market trends. 2010 © Key Note Ltd 2010 186 . questionnaires may also be used. various official publications published by National Statistics. Key Note Editorial. Key Note estimates are derived from statistical analysis and trade research carried out by experienced research analysts.Travel & Tourism Market Key Note Research Key Note Research Key Note is a leading supplier of market information. respectively. such as trade associations. This provides qualitative data (‘industry comment’) to enhance the statistics in reports. concise. Up-to-date figures are inserted where possible. With over 25 years’ experience. business-to-business and services titles. Interviews are undertaken by Key Note for various reports. quality market information. In addition. trade journals and specific company contacts. publishing an extensive range of consumer. Secondary data are provided by Kantar Media (TGI) and Nielsen Media Research for consumer/ demographic information and advertising expenditure. For all reports.

Travel & Tourism Market

The Key Note Range of Reports

The Key Note Range of Reports
Key Note publishes over 180 titles each year, across both the Key Note and Market Assessment product ranges. The total range covers consumer, lifestyle, financial services and industrial sectors.
Title Edition Published Title Edition Published

Market Reports and Reports Plus
A

Cigarettes & Tobacco Cinemas & Theatres 2010 2010 2003 2002 2005 2010 2010 2001 2008 2010 2010 2009 2009 2007 2010 2009 2007 2010 2009 2009 2008 2010 2010 2010 2009 2008 2008 2009 2004 2002 2009 2009 2010 2010 2009 2009 2010 Closed-Circuit Television Clothing Manufacturing Clothing Retailing Commercial Radio Commercial Vehicles Computer Hardware Computer Services Computer Software Confectionery Consumer Internet Usage Consumer Magazines Contraception Contract Catering & Foodservice Management Contract Cleaning Cooking Sauces & Food Seasonings Corporate & Promotional Giftware Corporate Hospitality Cosmetics & Fragrances Cosmetic Surgery Courier & Express Services
D

24 9 12 15 7 8 15 8 9 7 28 4 17 4 21 21 3 3 6 22 8 16 3 5 11 3 4 1 2 19 7 13 1 14 5

2010 2001 2010 2008 2009 2004 2009 2010 2010 2008 2010 2000 2010 2009 2010 2010 2008 2008 2007 2009 2010 2010 2004 2008 2010 2000 2009 2009 2003 2009 2009 2009 2007 2009 2005

Access Control Accountancy Aerospace Agrochemicals & Fertilisers Air Freight Airlines Airports Animal Feedstuffs Arts & Media Sponsorship Automatic Vending Automotive Services Autoparts
B

11 14 12 3 2 21 14 11 3 24 7 19 14 2 23 16 19 17 24 14 27 16 5 17 10 13 9 14 10 13 17 16 13 13 8 15 27

Baths & Sanitaryware Bearings Betting & Gaming Biscuits & Cakes Book Publishing Bookselling Bread & Bakery Products Breakfast Cereals Breweries & the Beer Market Bricks & Tiles Bridalwear Builders’ Merchants Building Contracting Building Materials Bus & Coach Operators Business Press
C

Dark Spirits & Liqueurs Debt Management (Commercial & Consumer) Defence Equipment Design Consultancies Digital Broadcasting Digital Communications Digital TV Direct Marketing Discount Retailing Disposable Paper Products Document Imaging Systems Domestic Heating Dry Cleaning & Laundry Services

Cable & Satellite TV Camping & Caravanning Canned Foods Carpets & Floorcoverings Catering Equipment Chemical Industry Childrenswear Chilled Foods China & Earthenware

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Travel & Tourism Market

The Key Note Range of Reports

Title E

Edition

Published

Title

Edition

Published

Electrical Contracting Electrical Wholesale Electricity Industry Electronic Component Distribution Electronic Component Manufacturing Electronic Games Equipment for the Disabled Equipment Leasing Estate Agents Ethnic Foods Exhibitions & Conferences
F

9 5 6 12 11 4 5 12 17 15 11 2 24 4 11 8 14 7 4 16 12 8 17 24 13 21 6 13 5 19 15 26 15 10 22 9 19 13 17 24 19

2009 2009 2009 2002 2002 2003 2009 2003 2008 2009 2009 2003 2010 2002 2000 2006 2010 2007 2009 2009 2010 2004 2009 2009 2010 2009 2009 2009 2009 2010 2009 2010 2010 2010 2003 2002 2009 2009 2008 2009 2009

Household Appliances (Brown Goods) Household Appliances (White Goods) Household Detergents & Cleaners Household Furniture
I

11 16 16 18 14 8 5 8 12 8 9 13 25 7 9 14 9 10 1 21 17 5 24 7 2 2 3 18 3 21 5 17 14 12

2008 2008 2009 2008 2010 2001 2000 2001 2009 2005 2009 2010 2009 2009 2008 2002 2010 2003 2005 2010 2009 2009 2010 2010 2007 2007 2002 2010 2010 2008 2009 2010 2010 2007

Ice Creams & Frozen Desserts Industrial Fasteners Industrial Pumps Industrial Valves Insurance Companies Internet Usage in Business IT Security IT Training
J

Factoring & Invoice Discounting Fast Food & Home Delivery Outlets The Film Industry Finance Houses Fire Protection Equipment Fish & Fish Products Fitted Kitchens Football Clubs & Finance Footwear Franchising Free-To-Air TV Freight Forwarding Frozen Foods Fruit Juices & Health Drinks Fruit & Vegetables Further & Higher Education
G

Jewellery & Watches
K

Kitchenware
L

Laboratory Equipment Lighting Equipment Lingerie
M

Management Consultants Market Forecasts Meat & Meat Products Medical Equipment Metal Recycling Milk & Dairy Products Mobile Phones Mobile Telecommunications
N

Garden Equipment Gas Industry Giftware Glassware Greetings Cards Plus
H

Natural Products New Media Marketing Newspapers Non-Metal Recycling
O

Hand Luggage & Leather Goods Health Clubs & Leisure Centres Health Foods Heating, Ventilating & Air Conditioning Home Furnishings Home Shopping Horticultural Retailing Hotels Housebuilding

Office Furniture Offshore Oil & Gas Industry Ophthalmic Goods & Services OTC Pharmaceuticals Own Brands

© Key Note Ltd 2010

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Travel & Tourism Market

The Key Note Range of Reports

Title P

Edition

Published

Title T

Edition

Published

Packaging (Food & Drink) Packaging (Glass) Packaging (Metals & Aerosols) Packaging (Paper & Board) Packaging (Plastics) Paper & Board Manufacturing Personal Banking Photocopiers & Fax Machines Plant Hire Plastics Processing Poultry Power Tools Premium Lagers, Beers & Ciders Printing Private Healthcare Protective Clothing & Equipment Public Houses
R

6 13 12 14 15 14 11 14 13 10 4 5 8 15 20 7 26 7 11 10 10 3 24 16 22 11 14 4 8 12 20 17 3 12 15 7 25

2010 2008 2003 2008 2010 2002 2000 2005 2007 2003 2010 2007 2009 2010 2009 2009 2010 2008 2009 2010 2010 2009 2009 2010 2009 2008 2009 2001 2000 2010 2010 2008 2009 2009 2009 2009 2010

Take Home Trade Telecommunications Timber & Joinery Toiletries Tourist Attractions Toys & Games Training Travel Agents & Overseas Tour Operators Tyre Industry
V

17 21 19 23 5 24 18 22 4 9 4 8 18 10 5 20 20 1 21 13 11 11 3 7 10 11 18 8 2 19 10 10 1 15 2 2 3 1 12 2 9 1

2008 2007 2008 2010 2001 2010 2009 2009 2008 2010 2007 2005 2010 2010 2010 2010 2009 2005 2009 2010 2004 2009 2007 2003 2009 2009 2008 2010 2009 2009 2005 2009 2005 2005 2008 2008 2010 2001 2008 2010 2010 2003

Vehicle Security Videoconferencing Video & DVD Retail & Hire
W

Wallcoverings & Ceramic Tiles Waste Management Water Industry Windows & Doors Wine White Spirits

Rail Travel Ready Meals Recruitment Agencies (Permanent) Recruitment Agencies (Temporary & Contract) Renewable Energy Restaurants Retail Chemists & Drugstores Road Haulage
S

Market Reviews
Catering Market Clothing & Footwear Industry UK Computer Market Construction Industry Contracted-Out Services Defence Industry Distribution Industry DIY & Home Improvements Industry Drinks Market Energy Industry Film Market Food Industry Healthcare Market Insurance Industry The Legal Services Market Leisure & Recreation Market Leisure in the Home Leisure Outside the Home Local Government Services Mechanical Handling Motor Industry Music Industry Office Equipment Industry Packaging (Food & Drink) Industry

Sauces & Spreads Shopfitting Short Break Holidays Slimming Market Small Domestic Electrical Appliances Snack Foods Soft Drinks (Carbonated & Concentrated) Soup Market Sports Clothing & Footwear Sports Equipment Sports Sponsorship Stationery (Personal & Office)

© Key Note Ltd 2010

189

Travel & Tourism Market

The Key Note Range of Reports

Title

Edition

Published

Title

Edition

Published

Passenger Travel in the UK Pharmaceuticals Industry Process Plant Industry Publishing Industry Railway Industry Security Industry Sports Market Travel & Tourism Market UK Internet Market

5 6 1 13 2 13 13 17 1

2007 2008 2000 2010 2006 2010 2010 2010 2009

Customer Loyalty in Financial Services Customer Magazines & Contract Publishing Customer Relationship Management Customer Services in Financial Organisations C2DE Consumer
D

2000 2009 2008 2010 2010 2009 2007 2010 2008 2000 2006

Market Assessment Reports
A

Diet Foods DINKY Market 2010 2009 2007 2000 2010 2000 2006 2010 2000 2000 2002 2007 2003 2002 2008 2008 2008 2002 2005 2008 2010 2000 2009 2005 2009 2008 2010 2010 2002 2009 2000 2008 Direct Insurance Direct Mortgages Domestic Lighting and Electrical Products Domestic Telecommunications
E

ABC1 Consumer Activity Holidays Advertising Agencies All-Inclusive Holidays Alternative Healthcare Audio-Visual Retailing
B

Baby Foods Baby Products Baths and Showers Beds, Bedrooms and Upholstered Furniture Betting and Gaming Book Retailing on the Internet Bottled Water Bridalwear Business Postal Services B2B Marketing Business Travel Market
C

E-Commerce: The Internet Grocery Market E-Commerce: The Internet Leisure & Entertainment Market Electronic Banking EMU — The Impact on the UK Financial Services Industry E-Recruitment E-Shopping Estate Agents and Services Ethnic Foods European Electricity Industry European Gas Industry European Long-Term Insurance European Oil & Gas Industry European Renewable Energy Industry European Short Breaks European Telecommunications European Tourist Attractions European Trends in Food Shopping European Water Industry Extended Financial Families

2009 2008 2008 2003 2006 2002 2010 2002 2007 2007 2008 2007 2008 2008 2008 2010 2009 2009 2007 2005

Cable and Satellite Services Charity Funding Childcare Children’s Publishing Clothing Retailers Coffee & Sandwich Shops Commercial Dynamics in Financial Services Commercial Insurance for Small Businesses Condiments and Sauces Consumer Credit & Debt Contact Centres Contraception Cooking & Eating Cross-Border Shopping Cruise Market

© Key Note Ltd 2010

190

Travel & Tourism Market The Key Note Range of Reports Title F Edition Published Title L Edition Published Financial Services Marketing to ABs Financial Services Marketing to ABC1s Financial Services Marketing to BCs Financial Services Marketing to C1C2DEs Financial Services Marketing to DEs Financial Services Marketing to Over 60s Financial Services Marketing to the Affluent Financial Services Marketing to the Retired and Elderly Financial Services Marketing to Start-Up Businesses and the SelfEmployed Financial Services Organisations on the Internet The Fish Industry Forecourt Retailing Functional Foods Funding in Higher Education G Lifestyle Magazines 2006 2000 2009 2006 2009 2004 2009 2007 Low-Fat & Reduced-Sugar Foods The Luggage Market M 2008 2008 2000 2003 2009 2010 2007 2008 2008 2002 2009 2008 2005 2008 2008 2004 2010 2007 2010 2000 2005 2009 2004 2002 2009 2003 2010 2008 2009 2008 2005 2009 2001 2007 2001 2004 2001 2000 2000 2001 2009 Marketing to Children 4-11 Marketing in the Digital Age Media Marketing Medical & Health Insurance Men and Women’s Buying Habits Men’s Toiletries & Fragrances Millennium Youth Mobile Marketing Motor Finance N The Newspaper Industry 2010 2009 2001 2010 2010 2002 2010 2007 2007 2008 2009 2008 2009 2008 2009 2000 2008 2005 2008 2009 2005 2002 2006 2010 Non-Food Sales in Supermarkets Nutraceuticals O Off-Trade Spirits Opticians & Optical Goods Organic Baby & Toddler Care Organic Food & Drink OTC Pharmaceuticals Over-40s Consumer Over-50s Consumer P General Insurance Generation Y Global Waste Management Green and Ethical Consumer Grey Consumer H Pay TV Pension Extenders Pensions Personal Banking Personal Lines Insurance Personal Loans Pet Market Planning for Retirement Plastic Cards in Europe Plus-Size Fashion Private Sector Opportunities in Education Public Relations Industry Public Transport R Healthy Eating Holiday Purchasing Patterns Home Entertainment Hot Beverages I In-Car Entertainment Independent Financial Advisers Individual Savings Accounts Insurance Prospects Internet Advertising Internet Service Providers Issues and Challenges in the UK Life Assurance Market Issues in Higher Education Funding IT Recruitment The Railway Industry Ready Meals Recycling and the Environment Retail Credit Retail Development Rural Economy © Key Note Ltd 2010 191 .

due principally to the fact that data cannot always be verified. Under the new Privacy and Electronic Communications Regulations 2004. Richmond Upon Thames. It is the responsibility of the caller to ensure that these data are up to date. Key Note Ltd holds and regularly updates (every 28 days) its data in accordance with the regulations and ensures that its data are compliant. TW11 8EE.gov. Published by Key Note Ltd. However. If you have any queries regarding the CTPS legislation you may find the following website useful: www. to assist the making of business decisions. it is unlawful for a business to make an unsolicited sales & marketing call to a corporate subscriber if it is either registered with CTPS or has requested NOT to receive such calls. 5th Floor. stored in an electronic retrieval system or transmitted save with written permission or in accordance with the provisions of the Copyright.uk © Key Note Ltd 2010 192 . Designs and Patents Act 1988. Harlequin House. as of the date created.Travel & Tourism Market The Key Note Range of Reports Title S Edition Published Title U Edition Published Savings & Investments Saving Trends in the Eurozone Singles Market Shopping Centres Short Breaks Slimming Market Small Businesses & Banks Small Office Home Office Consumer Small Office Home Office Products The Soup Market Sponsorship Supermarket Own Label Supermarket Services Sweet & Salty Snacks T 2010 2002 2009 2008 2004 2009 2010 2001 2001 2001 2000 2009 2007 2010 2008 2009 2003 2008 2007 2005 Utilities V 2007 2009 2010 2009 2000 2007 2009 Vegetarian Foods Vehicle Breakdown Services Vitamins. it is possible that some errors or omissions may occur. Key Note cannot accept responsibility for such errors or omissions. copied. 7 High Street. Teddington.ico. No part of this publication may be reproduced. Key Note Ltd does not hold itself liable for any subsequent legalities. not as the sole basis for taking such decisions. Minerals & Supplements W White Goods Women Over 45 Working Women Teenage Fashionwear Teenage & Pre-Teen Magazines Teleworking Trends in Food Shopping Trends in Leisure Activities Tweenagers © Key Note Ltd 2010 All rights reserved. Telephone: 0845-504 0452 Stringent efforts have been made by Key Note to ensure accuracy. Details supplied by Key Note should only be used as an aid.

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