Mixed messages from UK tourism policy
As travel and tourism is considered one of the key industries for the UK’s growth strategy, the Government presented what is considered to be one of the most prominent marketing campaigns – the GREAT campaign - with the aim of promoting inbound and domestic tourism. Advertising campaigns were launched worldwide, particularly in China. As the UK is not part of the Schengen agreement, the UK visa system has been criticised for hampering inbound tourism. As such, procedures for Chinese tourists have been reviewed and made simpler and faster. However, the problems remain for other up-and-coming countries, such as Russia and Indonesia. On the other hand, the Government has been criticised for raising Air Passenger Duty (APD), which is expected to produce a negative effect on tourism. The increase in VAT from 17.5% to 20% in 2011 was also heavily criticised as it could deter foreign tourists from travelling to the UK, a country which is already perceived as expensive to visit.
Stable 2012 for tourism despite government efforts and worldwide events
Despite the Government’s efforts to attract more tourists, as well as the Queen’s Diamond Jubilee and London’s hosting of the Olympic Games, domestic inbound and outbound tourism was stable in 2012 compared to the previous year. Overall, tourism remained below the peak level seen in 2007. However, the trend in 2012 cannot be considered as bad news as it came after recovery in 2011. In addition, the economic outlook remains highly uncertain in the UK but mainly in the Eurozone, as well as in the rest of the world as the crisis in the Eurozone is starting to affect international trade. In fact, tourism remains quite resilient to the economic downturn which is now entering its fifth year, even though it drastically reduced consumer confidence as well as wages and purchasing power.
A revival of package holidays
The number of last-minute bookings as well as the use of the internet to search for offers and promotions increased in 2012. Consumers are demanding value for money, which has often translated into choosing the cheapest deal. The revival of package holidays was also notable in 2012, as these holidays offer travellers peace of mind as they know in advance how much their holiday is going to cost. Moreover, package holidays also benefit from ATOL protection. Moreover, the category also grew due to the popularity of dynamic package holidays, which provide the traveller with a bit more flexibility. The extension of ATOL protection to dynamic package holidays in August 2012 also contributed to category growth.
Trend towards greater personalisation
Personalisation could become a major trend in the future as the digital era enables the collection of a massive amounts of data about customers that can then be analysed to provide tailor-made solutions. This strategy appears to have paid off for TUI, which launched package holidays to target specific consumer groups by increasing differentiation, a strategy which achieved strong growth in 2012. Clearly, the challenge for companies remains the establishment of a level of personalisation which can still be profitable. In addition, excessive differentiation could lead to confusion for consumers.
Online sales on the rise
Consumers are using the internet to search for travel information but also a larger number of people are booking holidays online. Although industry sources are reporting that people are returning to the more traditional high street travel agency, which can add a personal touch to the booking experience, online bookings will continue to grow and are expected to account for the largest proportion of sales by 2017. Nevertheless, the trend is expected to slow down compared to the review period as high IT investments will be necessary to improve consumers’ booking and online experience, which will be difficult to put in place given the overall economic outlook.
Samples (FAQs about samples):Sample Travel and Tourism Market Research Report
Sample Travel and Tourism Data
Delivery: Files are delivered directly into your account within a few minutes of purchase.
Discover the latest market trends and uncover sources of future market growth for the Travel and Tourism industry in United Kingdom with research from Euromonitor's team of in-country analysts.
Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.
If you're in the Travel and Tourism industry in United Kingdom, our research will save you time and money while empowering you to make informed, profitable decisions.
When you purchase this report, you also get the data and the content from these category reports in United Kingdom for free:
The Travel and Tourism in United Kingdom market research report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation
- Historic volumes and values, company and brand market shares
- Five year forecasts (of market share, market trends, market growth)
- Robust and transparent market research methodology, conducted in-country
Our market research reports answer questions such as:
- What is the market size of Travel and Tourism in United Kingdom?
- What are the major brands in United Kingdom?
- What are the major brands in United Kingdom?
Why buy this report?
- Gain competitive intelligence about market leaders
- Track key industry trends, opportunities and threats
- Inform your marketing, brand, strategy and market development, sales and supply functions
This industry report originates from Passport, our Travel And Tourism market research database.
Each report is delivered with the following components:
Report: PDF and Word
Market statistics: Excel workbook