Survey of the leisure industry

Survey of the leisure travel industry

To find out

How the industry feels it performed this year

compared with last

The industry’s expectations for next year

Industry perceptions of consumer demand and

trends

Aims of the survey

We conducted a survey of senior individuals

working in the leisure travel industry

We used lists of subscribers to e-tid

Individuals were invited to take part by email

In total, 345 online interviews were completed

Method

Who took part in the survey?

Leisure travel sectors worked in

44%

21%

18%

12%

10%

9%

6%

4%

4%

3%

Tour Operator (Outbound)

Hotels / Accommodation

Agent - Retail

Agent - OTA

Aviation

Cruise / Ferry / Rail

Tour Operator (Domestic)

Car Rental

Agent - Other

Coach

Base size: All respondents (345) Note: those working in none of the above sectors were excluded from the survey

Q: Which sector(s) of leisure travel do you principally work in?

Principal activity / role within organisation

29%

27%

17%

6%

5%

5%

5%

1%

6%

MD/CEO/President

Sales and/or Marketing

Commercial/Product

Purchasing/Contracting

Finance/Accounting

Operations

Systems/ Technology

Reservations/Call Centre

Other

Base size: All respondents (345)

Q: What is your principal activity / role within your organisation?

Size of business

2%

6%

6%

6%

6%

10%

12%

52%

0 (sole trader)

1 - 4

5 - 9

10 - 19

20 - 49

50 - 99

100 - 249

250+


Q: About how many people does your business employ?

Where based for work

31%

25%

6%

6%

5%

4%

3%

2%

1%

1%

0%

12%

5%

Greater London

South East

North West

Midlands

East Anglia

Yorkshire & Humberside

South West

Scotland

Northern Ireland

Wales

North East

Outside UK (Europe)

Outside UK (Rest of the World)


Q: Which area of the UK are you principally based in for your work?

Types of leisure travel operated or sold

53%

48%

48%

37%

29%

26%

20%

15%

13%

1%

Resort/Beach

Short Haul

Long Haul

Short Breaks/City Breaks

Cruise

Activity inc Ski

Domestic

Coach Tours

Other

None


Q: Which type(s) of leisure travel does your business principally operate or sell?

Close of half of respondents were outbound tour operators. Hotels and other accommodation providers and retail agents were the next largest sectors.

A large proportion of respondents were senior within their organisations; almost a third were MD/CEO/President.

Over half of respondents worked for large organisations employing over 250 people.

Over half of respondents operated or sold resort / beach holidays. Around half sold / operated long haul and short haul holidays, whilst on 20% were focussed on domestic travel.

Who took part? - summary

Consumer demand during 2012/13

Change in consumer demand since last year

7%

7%

10%

9%

10%

5%

2%

4%

57%

56%

53%

51%

49%

51%

48%

38%

26%

26%

24%

24%

26%

34%

33%

40%

10%

8%

12%

15%

14%

10%

8%

15%

1%

1%

4%

1%

1%

2%

8%

2%

Short haul (166)

Short/city breaks (129)

Long haul (165)

Domestic (68)

Cruise (101)

Resort / beach (182)

Activity inc ski (90)

Coach tours (52)

Greatly increased Increased No change Decreased Greatly decreased Don’t know

Q: How has consumer demand changed since last year for each of these types of holidays? Base size: () those who operate /sell this type of travel

What affected consumer demand?

41%

30%

21%

21%

18%

30%

29%

51%

48%

48%

27%

41%

26%

26%

33%

2%

1%

2%

4%

1%

Weather in the UK

Consumer spendingconfidence

Destination costs

Destination safety

Holiday travel costs

Greatly increased / increased demand No change

Decreased / greatly decreased demand Don't know

Q: How has consumer demand been affected by each of the following?

Base size: all respondents (345)

Perceived consumer trends

50%

30%

10%

31%

30%

39%

18%

38%

49%

1%

2%

2%

Spend on holiday purchase

Number of holidays taken

Duration of holidays

More/increase/longer No change Less/decrease/shorter Don't know

Q1: Would you say that – compared with the previous year – consumers are spending more, less or the same on the purchase of holidays?

Base size: all respondents (345)

Q3: Over the past 3 years, how would you say that the number of holidays consumers take has changed?

Q2: How would you say that the duration of holidays has changed over the past 3 years?

The industry is reporting increases in demand for all types of holiday included in the survey, slightly lower for activity (including ski) holidays and coach tours.

Very few reported decreases, although it should be noted that no questions were asked about changes in company offer (i.e. could have ceased to offer some types of holiday due to decreasing demand)

The weather in the UK was perceived to be most likely to have had a positive effect on consumer demand of all holiday types.

Opinion on consumer confidence in spending was polarised; it was believed to have had the greatest negative effect on demand but many thought it had had a positive effect.

The industry thinks that there has been an overall increase in the amount consumers spend on holiday purchase but that they tend to take fewer holidays and holidays of a shorter duration. This could indicate increases in luxury or all inclusive holidays for example.

Consumer demand – summary

Industry predictions for 2013/14

Advance bookings for 2013/14

9%

12%

7%

51%

54%

44%

23%

18%

34%

12%

12%

13%

1%

2%

3%

2%

2%

All respondents (345)

Tour operator - outbound (152)

Agent - retail (61)

Much stronger Stronger The same Weaker Much weaker Don't know

Most positive sector

Least positive sector

Base size: ()

Q: How are advance bookings in your business for next year compared with this time last year?

Expectations for 2013/14 compared with 2012/13

9%

3%

73%

73%

13%

19%

4%

2%

1%

3%

Own business

UK leisure travel industryas a whole

Much better Better No change Worse Much worse Don’t know

Q: Overall how well do you expect your own business [/ the UK leisure travel industry as w hole] to perform in 2013/14 compare d with 2012/13?

Base size: 345 all respondents

Predicted change in consumer demand by type of holiday

5%

7%

3%

3%

2%

1%

57%

54%

56%

55%

54%

55%

38%

34%

32%

33%

28%

36%

40%

40%

46%

54%

5%

5%

9%

4%

4%

4%

13%

10%

1%

1%

4%

2%

1%

1%

2%

1%

Cruise (101)

Long haul (165)



Short haul (166)


Coach tours (52)

Domestic (68)

Greatly increase Increase No change Decrease Greatly decrease Don’t know

Q: Please indicate whether you think consumer demand will increase, decrease or stay the same in 2013/14 compared with the current trading year for each of your business areas shown below Base size: () those who operate /sell this type of holiday / travel

Compare next year’s predicted growth with last year

59%

63%

50%

63%

64%

56%

42%

60%

62%

61%

59%

58%

56%

56%

38%

34%

Cruise (101)

Long haul (165)



Short haul (166)


Coach tours (52)

Domestic (68)

% experienced an increase between last year and 2012/13

% expecting an increase between 2012/13 and 2013/14

Base size: () those who operate /sell this type of holiday / travel

Sixty per cent of respondents said that their advance bookings were stronger

than they were at this time last year, compared with only 13% who said they

were weaker.

82% said that they expected their own business to perform better in 2013/14

than it has this year, slightly more than those who thought the industry as a

whole would perform better (76%).

Most holiday types are expected to continue to grow at a rate consistent

with the previous year. Exceptions were:

Activity holidays (including ski) which are expected to grow faster than

the previous year

Short haul, coach tours and domestic holidays are expected to grow less

than they did the previous year, especially domestic holidays

(presumably linked to the good weather in the UK this summer)

Industry predictions - summary

What else does the future hold?

Predicted trends in the industry

18%

6%

1%

7%

4%

1%

67%

63%

66%

57%

50%

48%

37%

16%

17%

10%

19%

27%

27%

30%

41%

45%

61%

31%

1%

9%

6%

5%

12%

10%

12%

21%

50%

3%

3%

1%

3%

4%

1%

5%

1%

3%

Bookings made on mobile…

Online packaged bookings

Overall booking numbers

All inclusive holidays

Dynamic packaging

Consumer holiday spend

Extras purchased at booking

Duration of holidays booked

Bookings through retail agents

Greatly increase Increase No change Decrease / greatly decrease Don’t know

Q: Do you think each of the following will increase, decrease or stay the same in the next 12 months across the whole industry? Base size: all respondents (345)

Predictions by sector Sector What’s hot ? What’s not ?

Tour operators - outbound Bookings made through mobile devices



Dynamic packaging

Hotels / accommodation Online packaged bookings


Extras purchased at time of booking

Agent - retail Dynamic packaging



Bookings made through mobile devices


Overall booking numbers

Extras purchased at time of booking

Aviation/Cruise/Ferry/Rail All inclusive holidays Overall booking numbers

Dynamic packaging



The future of retail agents

Predictions for bookings through retail agents by sector

17%

5%

12%

14%

14%

18%

15%

38%

31%

33%

26%

29%

24%

30%

47%

33%

50%

63%

60%

57%

54%

49%

36%

30%

3%

2%

8%

3%

1%

Total (345)

Aviation/Cruise/Ferry/Rail (64)

Agent - OTA (42)

Agent - Other (14)

Others (37)

Tour Operator - Outbound (152)

Hotels / Accommodation (72)

Agent - Retail (61)

Increase No change Decrease Don't know

Principal sector

Q: Do you think bookings through retail agents will increase, decrease or stay the same over the next 12 months across the whole industry? Base size: () those who work principally in this sector

Overall, more respondents felt that bookings through

retail agents are likely to decline over the next 12

months than they are to increase.

This was felt particularly by aviation/ferry/cruise/rail

companies, of which only 3% felt these bookings are

set to increase.

OTA and ‘other’ agents were also pessimistic about

retail agents.

Retail agents themselves were more positive; fewser

than a third believed their bookings would decline.

Retail agents - summary

Government policy

Attitudes towards APD and financial protection

37%

45%

33%

37%

18%

9%

6%

6%

4%

2%

4%

1%

…abolish APD

...ensure that all holidayssold in the UK are

financially protected

Strongly agree Agree Neither / nor Disagree Strongly disagree Don’t know

Q: Do you agree, disagree or neither that the Government should…

Base size: 345 all respondents

The majority of respondents (70%) agreed that APD should

be abolished, of whom 37% strongly agreed. This was

highest amongst those selling or operating cruises or long

haul travel (48% and 44% respectively) and lowest amongst

hotels / other accommodation (28%).

There was even stronger agreement (82%) that all holidays

sold in the UK should be financially protected. Almost half

(45%) strongly agreed, this ranging from 56% of retail

agents and 52% of tour operators, to 36% of hotels and

33% of aviation/cruise/ferry rail companies.

Government policy - summary

Who’s happy and who’s not?

How happy we are working in the industry (1)

55%

56%

59%

71%

53%

67%

57%

48%

38%

44%

39%

21%

39%

24%

30%

36%

All respondents (345)

Hotels / Accommodation (72)

Aviation/Cruise/Ferry/Rail (64)

Agent - Other (14)

Tour Operator - Outbound (152)

Agent - OTA (42)

Others (37)

Agent - Retail (61)

Very happy Happy

Principal sector

Q: How happy are you working in the travel industry?

Base size: () those who operate /sell this type of travel

How happy we are working in the industry (2)

Q: How happy are you working in the travel industry?

Base size: ()

65%

50%

54%

71%

48%

31%

41%

37%

25%

44%

MD/CEO/President (101)

Others (244)

0-49 employees (90)

50-249 employees (76)

250+ employees (179)

Very happy Happy

Size of company

Principal activity / role

An overwhelming majority (93%) of respondents said

that they were happy or very happy working in the

leisure travel industry.

Those happiest were those in the hotel / other

accommodation sector (100% happy!) and retail agents

the least happy (although still 84% happy!)

The bosses - MDs, CEOs, Presidents - were slightly

happier (96%) than the rest of us (still 91% happy

though!)

Who’s happy? - summary

Katie Bryan-Brown

Head of explore research

T: 0207 871 5550

M: 07743 829 505

E: [email protected]

W: www.exploreresearch.co.uk

Contact us

Survey of the leisure industry

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